Document:

Exhibit 10.10

 

scopus
biopharma INC.

2018
EQUITY INCENTIVE PLAN

 

1.            Purpose.
The purpose of this 2018 EQUITY INCENTIVE PLAN (the “Plan”) is to assist Scopus BioPharma Inc., a Delaware corporation
(the “Company”), in attracting, motivating, retaining and rewarding high-quality executives and other employees, officers,
directors, consultants and other persons who provide services to the Company by enabling such persons to acquire or increase a
proprietary interest in the Company in order to strengthen the mutuality of interests between such persons and the Company's shareholders,
and providing such persons with performance incentives to expend their maximum efforts in the creation of shareholder value.

 

2.            Definitions.
For purposes of the Plan, the following terms shall be defined as set forth below, in addition to such terms defined in Section
1 hereof and elsewhere herein.

 

(a)           “Award”
means any Option, Stock Appreciation Right, Restricted Stock Award, Deferred Stock Award, Share granted as a bonus or in lieu of
another Award, Dividend Equivalent or Other Stock-Based Award, together with any other right or interest, granted to a Participant
under the Plan.

 

(b)           “Award
Agreement” means any written agreement, contract or other instrument or document evidencing any Award granted by
the Committee hereunder.

 

(c)           “Beneficiary”
and “Beneficial Ownership” means the person, persons, trust or trusts that have been designated by a
Participant in his or her most recent written beneficiary designation filed with the Committee to receive the benefits specified
under the Plan upon such Participant's death or to which Awards or other rights are transferred if and to the extent permitted
under Section 9(b) hereof. If, upon a Participant's death, there is no designated Beneficiary or surviving designated Beneficiary,
then the term Beneficiary means the person, persons, trust or trusts entitled by will or the laws of descent and distribution to
receive such benefits.

 

(d)           “Beneficial
Owner” shall have the meaning ascribed to such term in Rule 13d-3 under the Exchange Act and any successor to such
Rule.

 

(e)           “Board”
means the Company's Board of Directors.

 

(f)           “Cause”
shall, with respect to any Participant, have the meaning specified in the Award Agreement. In the absence of any definition in
the Award Agreement, “Cause” shall have the equivalent meaning or the same meaning as “cause” or “for
cause” set forth in any employment, consulting, or other agreement for the performance of services between the Participant
and the Company or, in the absence of any such agreement or any such definition in such agreement, such term shall mean (i) the
failure by the Participant to perform, in a reasonable manner, his or her duties as assigned by the Company, (ii) any violation
or breach by the Participant of his or her employment, consulting or other similar agreement with the Company, if any, (iii) any
violation or breach by the Participant of any non-competition, non-solicitation, non-disclosure and/or other similar agreement
with the Company, (iv) any act by the Participant of dishonesty or bad faith with respect to the Company, (v) use of alcohol, drugs
or other similar substances in a manner that adversely affects the Participant’s work performance, or (vi) the commission
by the Participant of any act, misdemeanor, or crime reflecting unfavorably upon the Participant or the Company. The good faith
determination by the Committee of whether the Participant’s Continuous Service was terminated by the Company for “Cause”
shall be final and binding for all purposes hereunder.

 

(g)           “Code”
means the Internal Revenue Code of 1986, as amended from time to time, including regulations thereunder and successor provisions
and regulations thereto.

 

     

     

    

 

(h)           “Committee”
means a committee designated by the Board to administer the Plan; provided, however, that if the Board fails to designate a committee
or if there are no longer any members on the committee so designated by the Board, then the Board shall serve as the Committee.

 

(i)            “Consultant”
means any person (other than an Employee or a Director, solely with respect to rendering services in such person’s capacity
as a director) who is engaged by the Company to render consulting or advisory services to the Company, including members of the
Company’s scientific advisory board.

 

(j)            “Continuous
Service” means the uninterrupted provision of services to the Company in any capacity of Employee, Director, Consultant
or other service provider. Continuous Service shall not be considered to be interrupted in the case of (i) any approved leave of
absence, (ii) transfers between the Company and any successor entities, in any capacity of Employee, Director, Consultant or other
service provider, or (iii) any change in status as long as the individual remains in the service of the Company in any capacity
of Employee, Director, Consultant or other service provider (except as otherwise provided in the Award Agreement). An approved
leave of absence shall include sick leave, military leave, or any other authorized personal leave.

 

(k)         
“Deferred Stock” means a right to receive Shares, including Restricted Stock, or cash or a combination
thereof at the end of a specified deferral period.

 

(l)            “Deferred
Stock Award” means an Award of Deferred Stock granted to a Participant under Section 6(e) hereof.

 

(m)          “Director”
means a member of the Board.

 

(n)           “Disability”
means a permanent and total disability (within the meaning of Section 22(e) of the Code), as determined by a medical doctor satisfactory
to the Committee.

 

(o)           “Dividend
Equivalent” means a right, granted to a Participant under Section 6(g) hereof, to receive cash, Shares, other Awards
or other property equal in value to dividends paid with respect to a specified number of Shares, or other periodic payments.

 

(p)           “Effective
Date” means the effective date of the Plan, which shall be the Shareholder Approval Date.

 

(q)           “Eligible
Person” means each officer, Director, Employee, Consultant and other person who provides services to the Company.
The foregoing notwithstanding, only employees of the Company shall be Eligible Persons for purposes of receiving any Incentive
Stock Options. An Employee on leave of absence may be considered as still in the employ of the Company for purposes of eligibility
for participation in the Plan.

 

(r)            “Employee”
means any person, including an officer or Director, who is an employee of the Company. The payment of a director’s fee by
the Company shall not be sufficient to constitute “employment” by the Company.

 

(s)           “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(t)            “Fair
Market Value” means the fair market value of Shares, Awards or other property as determined by the Committee, or
under procedures established by the Committee.

 

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(u)           “Good
Reason” shall, with respect to any Participant, have the meaning specified in the Award Agreement. In the absence
of any definition in the Award Agreement, “Good Reason” shall have the equivalent meaning or the same meaning as “good
reason” or “for good reason” set forth in any employment, consulting or other agreement for the performance of
services between the Participant and the Company or, in the absence of any such agreement or any such definition in such agreement,
such term shall mean (i) the assignment to the Participant of any duties inconsistent in any material respect with the Participant's
duties or responsibilities as assigned by the Company, or any other action by the Company which results in a material diminution
in such duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad
faith and which is remedied by the Company promptly after receipt of notice thereof given by the Participant or (ii) any material
failure by the Company to comply with its obligations to the Participant as agreed upon, other than an isolated, insubstantial
and inadvertent failure not occurring in bad faith and which is remedied by the Company promptly after receipt of notice thereof
given by the Participant.

 

(v)           “Incentive
Stock Option” means any Option intended to be designated as an incentive stock option within the meaning of Section
422 of the Code or any successor provision thereto.

 

(w)           “Independent”,
when referring to either the Board or members of the Committee, shall have the same meaning as used in the rules of the national
securities exchange on which any securities of the Company are listed for trading, and if not listed for trading, by the rules
of the Nasdaq Stock Market.

 

(x)            “Incumbent
Board” means the Incumbent Board as defined in Section 8(b)(ii) of the Plan.

 

(y)            “Option”
means a right granted to a Participant under Section 6(b) hereof, to purchase Shares or other Awards at a specified price during
specified time periods.

 

(z)            “Optionee”
means a person to whom an Option is granted under this Plan or any person who succeeds to the rights of such person under this
Plan.

 

(aa)        “Option
Proceeds” means the cash actually received by the Company for the exercise price in connection with the exercise
of Options which tax benefit shall be determined by multiplying (i) the amount that is deductible for Federal income tax purposes
as a result of any such option exercise (currently, equal to the amount upon which the Participant's withholding tax obligation
is calculated), times (ii) the maximum Federal corporate income tax rate for the year of exercise. With respect to Options to the
extent that a Participant pays the exercise price and/or withholding taxes with Shares, Option Proceeds shall not be calculated
with respect to the amounts so paid in Shares.

 

(bb)        “Other
Stock-Based Awards” means Awards granted to a Participant under Section 6(i) hereof.

 

(cc)         “Participant”
means a person who has been granted an Award under the Plan which remains outstanding, including a person who is no longer an Eligible
Person.

 

(dd)        “Restricted
Stock” means any Share issued with the restriction that the holder may not sell, transfer, pledge or assign such
Share and with such risks of forfeiture and other restrictions as the Committee, in its sole discretion, may impose (including
any restriction on the right to vote such Share and the right to receive any dividends), which restrictions may lapse separately
or in combination at such time or times, in installments or otherwise, as the Committee may deem appropriate.

 

(ee)        “Restricted
Stock Award” means an Award of Restricted Stock granted to a Participant under Section 6(d) hereof.

 

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(ff)          “Shareholder
Approval Date” means the date on which this Plan is approved by stockholders of the Company eligible to vote in the
election of directors, by a vote sufficient to meet the requirements of Code Sections 162(m) (if applicable) and 422, and other
laws, regulations and obligations of the Company applicable to the Plan.

 

(gg)         “Shares”
means the shares of common stock of the Company, par value $0.001 per share, and such other securities as may be substituted (or
resubstituted) for Shares pursuant to Section 9(c) hereof.

 

(hh)        “Stock
Appreciation Right” means a right granted to a Participant under Section 6(c) hereof.

 

(ii)            “Subsidiary”
means any corporation or other entity in which the Company has a direct or indirect ownership interest of 50% or more of the total
combined voting power of the then outstanding securities or interests of such corporation or other entity entitled to vote generally
in the election of directors or in which the Company has the right to receive 50% or more of the distribution of profits or 50%
or more of the assets on liquidation or dissolution.

 

(jj)       “Substitute
Awards” means Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for,
Awards previously granted, or the right or obligation to make future Awards, by a company acquired by the Company or with which
the Company combines.

 

3.            Administration.

 

(a)           Authority
of the Committee. The Plan shall be administered by the Committee, except to the extent the Board elects to administer
the Plan in which case references herein to the “Committee” shall be deemed to include references to the members of
the Board. The Committee shall have full and final authority, subject to and consistent with the provisions of the Plan, to select
Eligible Persons to become Participants, grant Awards, determine the type, number and other terms and conditions of, and all other
matters relating to, Awards, prescribe Award Agreements (which need not be identical for each Participant) and rules and regulations
for the administration of the Plan, construe and interpret the Plan and Award Agreements and correct defects, supply omissions
or reconcile inconsistencies therein, and to make all other decisions and determinations as the Committee may deem necessary or
advisable for the administration of the Plan. In exercising any discretion granted to the Committee under the Plan or pursuant
to any Award, the Committee shall not be required to follow past practices, act in a manner consistent with past practices, or
treat any Eligible Person or Participant in a manner consistent with the treatment of other Eligible Persons or Participants.

 

(b)           Manner
of Exercise of Committee Authority. Any action of the Committee shall be final, conclusive and binding on all persons,
including the Company, Eligible Persons, Participants, Beneficiaries, transferees under Section 9(b) hereof or other persons claiming
rights from or through a Participant, and shareholders. The express grant of any specific power to the Committee, and the taking
of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. The Committee may
delegate to officers or managers of the Company, or committees thereof, the authority, subject to such terms as the Committee
shall determine, to perform such functions, including administrative functions as the Committee may determine. The Committee may
appoint agents to assist it in administering the Plan.

 

(c)           Limitation
of Liability. The Committee and the Board, and each member thereof, shall be entitled to, in good faith, rely or act upon
any report or other information furnished to him or her by any officer or Employee, the Company's independent auditors, Consultants
or any other agents assisting in the administration of the Plan. Members of the Committee and the Board, and any officer or Employee
acting at the direction or on behalf of the Committee or the Board, shall not be personally liable for any action or determination
taken or made in good faith with respect to the Plan, and shall, to the extent permitted by law, be fully indemnified and protected
by the Company with respect to any such action or determination.

 

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4.            Shares
Subject to Plan.

 

(a)           Limitation
on Overall Number of Shares Available for Delivery Under Plan. Subject to adjustment as provided in Section 9(c) hereof,
the total number of Shares reserved and available for delivery under the Plan shall be 1,000,000. Any Shares that are subject
to Awards shall be counted against this limit as one (1) Share for every one (1) Share granted. Any Shares delivered under the
Plan may consist, in whole or in part, of authorized and unissued shares or treasury shares.

 

(b)           Application
of Limitation to Grants of Award. No Award may be granted if the number of Shares to be delivered in connection with
such an Award or, in the case of an Award relating to Shares but settled only in cash (such as cash-only Stock Appreciation
Rights), the number of Shares to which such Award relates, exceeds the number of Shares remaining available for delivery
under the Plan, minus the number of Shares deliverable in settlement of or relating to then outstanding Awards. The Committee
may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case
of tandem or substitute awards) and make adjustments if the number of Shares actually delivered differs from the number of
Shares previously counted in connection with an Award.

 

(c)           Availability
of Shares Not Delivered under Awards and Adjustments to Limits.

 

(i)       If
any Shares subject to an Award are forfeited, expire or otherwise terminate without issuance of such Shares, or any Award is settled
for cash or otherwise does not result in the issuance of all or a portion of the Shares subject to such Award, the Shares shall,
to the extent of such forfeiture, expiration, termination, cash settlement or non-issuance, again be available for Awards under
the Plan, subject to Section 4(c)(iv) below.

 

(ii)       In
the event that any Option or other Award granted hereunder is exercised through the tendering of Shares (either actually or by
attestation) or by the withholding of Shares by the Company, or withholding tax liabilities arising from such option or other award
are satisfied by the tendering of Shares (either actually or by attestation) or by the withholding of Shares by the Company, then
only the number of Shares issued net of the Shares tendered or withheld shall be counted for purposes of determining the maximum
number of Shares available for grant under the Plan.

 

(iii)       Substitute
Awards shall not reduce the Shares authorized for grant under the Plan or authorized for grant to a Participant in any period.
Additionally, in the event that a company acquired by the Company or with which the Company combines has shares available under
a pre-existing plan approved by shareholders and not adopted in contemplation of such acquisition or combination, the shares available
for delivery pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio
or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable
to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under the Plan
and shall not reduce the Shares authorized for delivery under the Plan; provided that Awards using such available shares shall
not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition
or combination, and shall only be made to individuals who were not Employees or Directors prior to such acquisition or combination.

 

(iv)       Any
Share that again becomes available for delivery pursuant to this Section 4(c) shall be added back as one (1) Share.

 

5.            Eligibility.
Awards may be granted under the Plan only to Eligible Persons.

  

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6.            Specific
Terms of Awards.

 

(a)           General.
Awards may be granted on the terms and conditions set forth in this Section 6. In addition, the Committee may impose on any Award
or the exercise thereof, at the date of grant or thereafter (subject to Section 9(e)), such additional terms and conditions, not
inconsistent with the provisions of the Plan, as the Committee shall determine, including terms requiring forfeiture of Awards
in the event of termination of the Participant’s Continuous Service and terms permitting a Participant to make elections
relating to his or her Award. The Committee shall retain full power and discretion to accelerate, waive or modify, at any time,
any term or condition of an Award that is not mandatory under the Plan. Except in cases in which the Committee is authorized to
require other forms of consideration under the Plan, or to the extent other forms of consideration must be paid to satisfy the
requirements of Delaware law, no consideration other than services may be required for the grant (as opposed to the exercise)
of any Award.

 

(b)           Options.
The Committee is authorized to grant Options to any Eligible Person on the following terms and conditions:

 

(i)       Exercise
Price. Other than in connection with Substitute Awards, the exercise price per Share purchasable under an Option shall
be determined by the Committee, provided that such exercise price shall not be less than 100% of the Fair Market Value of a Share
on the date of grant of the Option and shall not, in any event, be less than the par value of a Share on the date of grant of the
Option. If an Employee owns or is deemed to own (by reason of the attribution rules applicable under Section 424(d) of the Code)
more than 10% of the combined voting power of all classes of stock of the Company (or any parent corporation or subsidiary corporation
of the Company, as those terms are defined in Sections 424(e) and (f) of the Code, respectively) and an Incentive Stock Option
is granted to such employee, the exercise price of such Incentive Stock Option (to the extent required by the Code at the time
of grant) shall be no less than 110% of the Fair Market Value of a Share on the date such Incentive Stock Option is granted.

 

(ii)       Time
and Method of Exercise. The Committee shall determine the time or times at which or the circumstances under which an Option
may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements),
the time or times at which Options shall cease to be or become exercisable following termination of Continuous Service or upon
other conditions, the methods by which the exercise price may be paid or deemed to be paid (including in the discretion of the
Committee a cashless exercise procedure), the form of such payment, including, without limitation, cash, Shares (including without
limitation the withholding of Shares otherwise deliverable pursuant to the Award), other Awards or awards granted under other plans
of the Company or other property (including notes or other contractual obligations of Participants to make payment on a deferred
basis and the methods by or forms in which Shares will be delivered or deemed to be delivered to Participants).

 

(iii)       Incentive
Stock Options. The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the provisions
of Section 422 of the Code. Anything in the Plan to the contrary notwithstanding, no term of the Plan relating to Incentive Stock
Options (including any Stock Appreciation Right issued in tandem therewith) shall be interpreted, amended or altered, nor shall
any discretion or authority granted under the Plan be exercised, so as to disqualify either the Plan or any Incentive Stock Option
under Section 422 of the Code, unless the Participant has first requested, or consents to, the change that will result in such
disqualification. Thus, if and to the extent required to comply with Section 422 of the Code, Options granted as Incentive Stock
Options shall be subject to the following special terms and conditions:

 

(A)       the
Option shall not be exercisable for more than ten years after the date such Incentive Stock Option is granted; provided, however,
that if a Participant owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10%
of the combined voting power of all classes of stock of the Company (or any parent corporation or subsidiary corporation of the
Company, as those terms are defined in Sections 424(e) and (f) of the Code, respectively) and the Incentive Stock Option is granted
to such Participant, the term of the Incentive Stock Option shall be (to the extent required by the Code at the time of the grant)
for no more than five years from the date of grant; and

  

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(B)       The
aggregate Fair Market Value (determined as of the date the Incentive Stock Option is granted) of the Shares with respect to which
Incentive Stock Options granted under the Plan and all other option plans of the Company (and any parent corporation or subsidiary
corporation of the Company, as those terms are defined in Sections 424(e) and (f) of the Code, respectively) that become exercisable
for the first time by the Participant during any calendar year shall not (to the extent required by the Code at the time of the
grant) exceed $100,000.

 

(c)           Stock
Appreciation Rights. The Committee may grant Stock Appreciation Rights to any Eligible Person in conjunction with all
or part of any Option granted under the Plan or at any subsequent time during the term of such Option (a “Tandem Stock Appreciation
Right”), or without regard to any Option (a “Freestanding Stock Appreciation Right”), in each case upon such
terms and conditions as the Committee may establish in its sole discretion, not inconsistent with the provisions of the Plan,
including the following:

 

(i)       Right
to Payment. A Stock Appreciation Right shall confer on the Participant to whom it is granted a right to receive, upon exercise
thereof, the excess of (A) the Fair Market Value of one Share on the date of exercise over (B) the grant price of the Stock Appreciation
Right as determined by the Committee. The grant price of a Stock Appreciation Right shall not be less than the Fair Market Value
of a Share on the date of grant, in the case of a Freestanding Stock Appreciation Right, or less than the associated Option exercise
price, in the case of a Tandem Stock Appreciation Right.

 

(ii)       Other
Terms. The Committee shall determine at the date of grant or thereafter, the time or times at which and the circumstances
under which a Stock Appreciation Right may be exercised in whole or in part (including based on achievement of performance goals
and/or future service requirements), the time or times at which Stock Appreciation Rights shall cease to be or become exercisable
following termination of Continuous Service or upon other conditions, the method of exercise, method of settlement, form of consideration
payable in settlement, method by or forms in which Shares will be delivered or deemed to be delivered to Participants, whether
or not a Stock Appreciation Right shall be in tandem or in combination with any other Award, and any other terms and conditions
of any Stock Appreciation Right.

 

(iii)       Tandem
Stock Appreciation Rights. Any Tandem Stock Appreciation Right may be granted at the same time as the related Option is
granted or, for Options that are not Incentive Stock Options, at any time thereafter before exercise or expiration of such Option.
Any Tandem Stock Appreciation Right related to an Option may be exercised only when the related Option would be exercisable and
the Fair Market Value of the Shares subject to the related Option exceeds the exercise price at which Shares can be acquired pursuant
to the Option. In addition, if a Tandem Stock Appreciation Right exists with respect to less than the full number of Shares covered
by a related Option, then an exercise or termination of such Option shall not reduce the number of Shares to which the Tandem Stock
Appreciation Right applies until the number of Shares then exercisable under such Option equals the number of Shares to which the
Tandem Stock Appreciation Right applies. Any Option related to a Tandem Stock Appreciation Right shall no longer be exercisable
to the extent the Tandem Stock Appreciation Right has been exercised, and any Tandem Stock Appreciation Right shall no longer be
exercisable to the extent the related Option has been exercised.

 

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(d)           Restricted
Stock Awards. The Committee is authorized to grant Restricted Stock Awards to any Eligible Person on the following terms
and conditions:

 

(i)       Grant
and Restrictions. Restricted Stock Awards shall be subject to such restrictions on transferability, risk of forfeiture
and other restrictions, if any, as the Committee may impose, or as otherwise provided in this Plan, covering a period of time specified
by the Committee (the “Restriction Period”). The terms of any Restricted Stock Award granted under the Plan shall be
set forth in a written Award Agreement which shall contain provisions determined by the Committee and not inconsistent with the
Plan. The restrictions may lapse separately or in combination at such times, under such circumstances (including based on achievement
of performance goals and/or future service requirements), in such installments or otherwise, as the Committee may determine at
the date of grant or thereafter. Except to the extent restricted under the terms of the Plan and any Award Agreement relating to
a Restricted Stock Award, a Participant granted Restricted Stock shall have all of the rights of a shareholder, including the right
to vote the Restricted Stock and the right to receive dividends thereon (subject to any mandatory reinvestment or other requirement
imposed by the Committee). During the Restriction Period, subject to Section 9(b) below, the Restricted Stock may not be sold,
transferred, pledged, hypothecated, margined or otherwise encumbered by the Participant.

 

(ii)       Forfeiture.
Except as otherwise determined by the Committee, upon termination of a Participant's Continuous Service during the applicable Restriction
Period, the Participant's Restricted Stock that is at that time subject to a risk of forfeiture that has not lapsed or otherwise
been satisfied shall be forfeited and reacquired by the Company; provided that the Committee may provide, by rule or regulation
or in any Award Agreement, or may determine in any individual case, that forfeiture conditions relating to Restricted Stock Awards
shall be waived in whole or in part in the event of terminations resulting from specified causes.

 

(iii)       Certificates
for Stock. Restricted Stock granted under the Plan may be evidenced in such manner as the Committee shall determine. If
certificates representing Restricted Stock are registered in the name of the Participant, the Committee may require that such certificates
bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Stock, that the Company
retain physical possession of the certificates, and that the Participant deliver a stock power to the Company, endorsed in blank,
relating to the Restricted Stock.

 

(iv)       Dividends
and Splits. As a condition to the grant of a Restricted Stock Award, the Committee may require or permit a Participant
to elect that any cash dividends paid on a Share of Restricted Stock be automatically reinvested in additional Shares of Restricted
Stock or applied to the purchase of additional Awards under the Plan. Unless otherwise determined by the Committee, Shares distributed
in connection with a stock split or stock dividend, and other property distributed as a dividend, shall be subject to restrictions
and a risk of forfeiture to the same extent as the Restricted Stock with respect to which such Shares or other property have been
distributed.

 

(e)           Deferred
Stock Award. The Committee is authorized to grant Deferred Stock Awards to any Eligible Person on the following terms
and conditions:

 

(i)       Award
and Restrictions. Satisfaction of a Deferred Stock Award shall occur upon expiration of the deferral period specified for
such Deferred Stock Award by the Committee (or, if permitted by the Committee, as elected by the Participant). In addition, a Deferred
Stock Award shall be subject to such restrictions (which may include a risk of forfeiture) as the Committee may impose, if any,
which restrictions may lapse at the expiration of the deferral period or at earlier specified times (including based on achievement
of performance goals and/or future service requirements), separately or in combination, in installments or otherwise, as the Committee
may determine. A Deferred Stock Award may be satisfied by delivery of Shares, cash equal to the Fair Market Value of the specified
number of Shares covered by the Deferred Stock, or a combination thereof, as determined by the Committee at the date of grant or
thereafter. Prior to satisfaction of a Deferred Stock Award, a Deferred Stock Award carries no voting or dividend or other rights
associated with Share ownership.

 

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(ii)       Forfeiture.
Except as otherwise determined by the Committee, upon termination of a Participant's Continuous Service during the applicable deferral
period or portion thereof to which forfeiture conditions apply (as provided in the Award Agreement evidencing the Deferred Stock
Award), the Participant's Deferred Stock Award that is at that time subject to a risk of forfeiture that has not lapsed or otherwise
been satisfied shall be forfeited; provided that the Committee may provide, by rule or regulation or in any Award Agreement, or
may determine in any individual case, that forfeiture conditions relating to a Deferred Stock Award shall be waived in whole or
in part in the event of terminations resulting from specified causes, and the Committee may in other cases waive in whole or in
part the forfeiture of any Deferred Stock Award.

 

(iii)       Dividend
Equivalents. Unless otherwise determined by the Committee at date of grant, any Dividend Equivalents that are granted with
respect to any Deferred Stock Award shall be either (A) paid with respect to such Deferred Stock Award at the dividend payment
date in cash or in Shares of unrestricted stock having a Fair Market Value equal to the amount of such dividends, or (B) deferred
with respect to such Deferred Stock Award and the amount or value thereof automatically deemed reinvested in additional Deferred
Stock, other Awards or other investment vehicles, as the Committee shall determine or permit the Participant to elect.

 

(f)           Bonus
Stock and Awards in Lieu of Obligations. The Committee is authorized to grant Shares to any Eligible Persons as a bonus,
or to grant Shares or other Awards in lieu of obligations to pay cash or deliver other property under the Plan or under other
plans or compensatory arrangements. Shares or Awards granted hereunder shall be subject to such other terms as shall be determined
by the Committee.

 

(g)           Dividend
Equivalents. The Committee is authorized to grant Dividend Equivalents to any Eligible Person entitling the Eligible Person
to receive cash, Shares, other Awards, or other property equal in value to the dividends paid with respect to a specified number
of Shares, or other periodic payments. Dividend Equivalents may be awarded on a free-standing basis or in connection with another
Award. The Committee may provide that Dividend Equivalents shall be paid or distributed when accrued or shall be deemed to have
been reinvested in additional Shares, Awards, or other investment vehicles, and subject to such restrictions on transferability
and risks of forfeiture, as the Committee may specify.

 

(h)         
Other Stock-Based Awards. The Committee is authorized, subject to limitations under applicable law, to grant
to any Eligible Person such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or
otherwise based on, or related to, Shares, as deemed by the Committee to be consistent with the purposes of the Plan. Other Stock-Based
Awards may be granted to Participants either alone or in addition to other Awards granted under the Plan, and such Other Stock-Based
Awards shall also be available as a form of payment in the settlement of other Awards granted under the Plan. The Committee shall
determine the terms and conditions of such Awards. Shares delivered pursuant to an Award in the nature of a purchase right granted
under this Section 6(i) shall be purchased for such consideration, (including without limitation loans from the Company provided
that such loans are not in violation of any applicable law) paid for at such times, by such methods, and in such forms, including,
without limitation, cash, Shares, other Awards or other property, as the Committee shall determine.

 

    9 

     

    

 

7.            Certain
Provisions Applicable to Awards.

 

(a)           Stand-Alone,
Additional, Tandem, and Substitute Awards. Awards granted under the Plan may, in the discretion of the Committee, be granted
either alone or in addition to, in tandem with, or in substitution or exchange for, any other Award or any award granted under
another plan of the Company or any business entity to be acquired by the Company, or any other right of a Participant to receive
payment from the Company. Such additional, tandem, and substitute or exchange Awards may be granted at any time. If an Award is
granted in substitution or exchange for another Award or award, the Committee shall require the surrender of such other Award
or award in consideration for the grant of the new Award. In addition, Awards may be granted in lieu of cash compensation, including
in lieu of cash amounts payable under other plans of the Company, in which the value of Stock subject to the Award is equivalent
in value to the cash compensation (for example, Deferred Stock or Restricted Stock), or in which the exercise price, grant price
or purchase price of the Award in the nature of a right that may be exercised is equal to the Fair Market Value of the underlying
Stock minus the value of the cash compensation surrendered (for example, Options or Stock Appreciation Right granted with an exercise
price or grant price “discounted” by the amount of the cash compensation surrendered).

 

(b)           Term
of Awards. The term of each Award shall be for such period as may be determined by the Committee; provided that in no
event shall the term of any Option or Stock Appreciation Right exceed a period of ten years (or in the case of an Incentive Stock
Option such shorter term as may be required under Section 422 of the Code).

 

(c)           Form
and Timing of Payment Under Awards; Deferrals. Subject to the terms of the Plan and any applicable Award Agreement, payments
to be made by the Company upon the exercise of an Option or other Award or settlement of an Award may be made in such forms as
the Committee shall determine, including, without limitation, cash, Shares, other Awards or other property, and may be made in
a single payment or transfer, in installments, or on a deferred basis. The settlement of any Award may be accelerated, and cash
paid in lieu of Shares in connection with such settlement, in the discretion of the Committee or upon occurrence of one or more
specified events (in addition to a Change in Control). Installment or deferred payments may be required by the Committee (subject
to Section 9(e) of the Plan, including the consent provisions thereof in the case of any deferral of an outstanding Award not
provided for in the original Award Agreement) or permitted at the election of the Participant on terms and conditions established
by the Committee. The Committee may, without limitation, make provision for the payment or crediting of a reasonable interest
rate on installment or deferred payments or the grant or crediting of Dividend Equivalents or other amounts in respect of installment
or deferred payments denominated in Shares.

 

(d)          Code
Section 409A.

 

(i)            If
any Award constitutes a “nonqualified deferred compensation plan” under Section 409A of the Code (a “Section
409A Plan”), then the Award shall be subject to the following additional requirements, if and to the extent required to comply
with Section 409A of the Code:

 

(A)       Payments
under the Section 409A Plan may not be made earlier than (u) the Participant’s separation from service, (v) the date the
Participant becomes disabled, (w) the Participant’s death, (x) a specified time (or pursuant to a fixed schedule) specified
in the Award Agreement at the date of the deferral of such compensation, (y) a change in the ownership or effective control of
the corporation, or in the ownership of a substantial portion of the assets of the corporation, or (z) the occurrence of an unforeseeable
emergency;

 

(B)       The
time or schedule for any payment of the deferred compensation may not be accelerated, except to the extent provided in applicable
Treasury Regulations or other applicable guidance issued by the Internal Revenue Service;

 

(C)        Any
elections with respect to the deferral of such compensation or the time and form of distribution of such deferred compensation
shall comply with the requirements of Section 409A(a)(4) of the Code; and

  

    10 

     

    

 

(D)
       In the case of any Participant who is specified employee, a distribution on account
of a separation from service may not be made before the date which is six months after the date of the Participant’s
separation from service (or, if earlier, the date of the Participant’s death). For purposes of the foregoing, the terms
“separation from service”, “disabled”, and “specified employee”, all shall be defined in
the same manner as those terms are defined for purposes of Section 409A of the Code, and the limitations set forth herein
shall be applied in such manner (and only to the extent) as shall be necessary to comply with any requirements of Section
409A of the Code that are applicable to the Award.

 

(ii)         The Award
Agreement for any Award that the Committee reasonably determines to constitute a Section 409A Plan, and the provisions of the Plan
applicable to that Award, shall be construed in a manner consistent with the applicable requirements of Section 409A, and the Committee,
in its sole discretion and without the consent of any Participant, may amend any Award Agreement (and the provisions of the Plan
applicable thereto) if and to the extent that the Committee determines that such amendment is necessary or appropriate to comply
with the requirements of Section 409A of the Code. No Section 409A Plan shall be adjusted, modified or substituted for, pursuant
to any provision of this Plan, without the consent of the Participant if any such adjustment, modification or substitution would
cause the Section 409A Plan to violate the requirements of Section 409A of the Code.

 

8.            Change
in Control.

 

(a)           Effect
of “Change in Control.”

 

Subject to Section 8(a)(iv),
and if and only to the extent provided in the Award Agreement, or to the extent otherwise determined by the Committee, upon the
occurrence of a “Change in Control,” as defined in Section 8(b):

 

(i)       Any
Option or Stock Appreciation Right that was not previously vested and exercisable as of the time of the Change in Control, shall
become immediately vested and exercisable, subject to applicable restrictions set forth in Section 8(a) hereof.

 

(ii)       Any
restrictions, deferral of settlement, and forfeiture conditions applicable to a Restricted Stock Award, Deferred Stock Award or
an Other Stock-Based Award subject only to future service requirements granted under the Plan shall lapse and such Awards shall
be deemed fully vested as of the time of the Change in Control, except to the extent of any waiver by the Participant and subject
to applicable restrictions set forth in Section 9(a) hereof.

 

(iii)       With
respect to any outstanding Award subject to achievement of performance goals and conditions under the Plan, the Committee may,
in its discretion, deem such performance goals and conditions as having been met as of the date of the Change in Control.

 

(iv)       Notwithstanding
the foregoing or any provision in any Award Agreement to the contrary, if in the event of a Change in Control the successor company
assumes or substitutes for an Option, Stock Appreciation Right, Restricted Stock Award, Deferred Stock Award or Other Stock-Based
Award, then each such outstanding Option, Stock Appreciation Right, Restricted Stock Award, Deferred Stock Award or Other Stock-Based
Award shall not be accelerated as described in Sections 8(a)(i), (ii) and (iii). For the purposes of this Section 8(a)(iv), an
Option, Stock Appreciation Right, Restricted Stock Award, Deferred Stock Award or Other Stock-Based Award shall be considered assumed
or substituted for if following the Change in Control the Award confers the right to purchase or receive, for each Share subject
to the Option, Stock Appreciation Right, Restricted Stock Award, Deferred Stock Award or Other Stock-Based Award immediately prior
to the Change in Control, the consideration (whether stock, cash or other securities or property) received in the transaction constituting
a Change in Control by holders of Shares for each Share held on the effective date of such transaction (and if holders were offered
a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); provided,
however, that if such consideration received in the transaction constituting a Change in Control is not solely common stock of
the successor company or its parent or subsidiary, the Committee may, with the consent of the successor company or its parent or
subsidiary, provide that the consideration to be received upon the exercise or vesting of an Option, Stock Appreciation Right,
Restricted Stock Award, Deferred Stock Award or Other Stock-Based Award, for each Share subject thereto, will be solely common
stock of the successor company or its parent or subsidiary substantially equal in fair market value to the per share consideration
received by holders of Shares in the transaction constituting a Change in Control. The determination of such substantial equality
of value of consideration shall be made by the Committee in its sole discretion and its determination shall be conclusive and binding.

 

    11 

     

    

 

(b)           Definition
of “Change in Control”. Unless otherwise specified in an Award Agreement, a “Change in Control”
shall mean the occurrence of any of the following:

 

(i)       The
acquisition by any Person of Beneficial Ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more
than fifty percent (50%) of either (A) the value of then outstanding equity securities of the Company (the “Outstanding Company
Stock”) or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally
in the election of directors (the “Outstanding Company Voting Securities) (the foregoing Beneficial Ownership hereinafter
being referred to as a "Controlling Interest"); provided, however, that for purposes of this Section 8(b), the following
acquisitions shall not constitute or result in a Change in Control: (v) any acquisition directly from the Company; (w) any acquisition
by the Company; (x) any acquisition by any Person that as of the Effective Date owns Beneficial Ownership of a Controlling Interest;
(y) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company; or (z) any acquisition
by any entity pursuant to a transaction which complies with clauses (A), (B) and (C) of subsection (iii) below; or

 

(ii)       During
any period of two (2) consecutive years (not including any period prior to the Effective Date) individuals who constitute the Board
on the Effective Date (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election
by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent
Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any
such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect
to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board; or

 

(iii)       Consummation
of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the Company, a sale or
other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or equity of another entity
by the Company (each a “Business Combination”), in each case, unless, following such Business Combination, (A) all
or substantially all of the individuals and entities who were the Beneficial Owners, respectively, of the Outstanding Company Stock
and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly,
more than fifty percent (50%) of the value of the then outstanding equity securities and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of members of the board of directors (or comparable governing
body of an entity that does not have such a board), as the case may be, of the entity resulting from such Business Combination
(including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of
the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Business Combination of the Outstanding Company Stock and Outstanding Company Voting Securities,
as the case may be, (B) no Person (excluding any employee benefit plan (or related trust) of the Company or such entity resulting
from such Business Combination or any Person that as of the Effective Date owns Beneficial Ownership of a Controlling Interest)
beneficially owns, directly or indirectly, fifty percent (50%) or more of the value of the then outstanding equity securities of
the entity resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such
entity except to the extent that such ownership existed prior to the Business Combination and (C) at least a majority of the members
of the Board of Directors or other governing body of the entity resulting from such Business Combination were members of the Incumbent
Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination;
or

 

    12 

     

    

 

(iv)       Approval
by the shareholders of the Company of a complete liquidation or dissolution of the Company.

 

9.            General
Provisions.

 

(a)           Compliance
With Legal and Other Requirements. The Company may, to the extent deemed necessary or advisable by the Committee, postpone
the issuance or delivery of Shares or payment of other benefits under any Award until completion of such registration or qualification
of such Shares or other required action under any federal or state law, rule or regulation, listing or other required action with
respect to any stock exchange or automated quotation system upon which the Shares or other Company securities are listed or quoted,
or compliance with any other obligation of the Company, as the Committee, may consider appropriate, and may require any Participant
to make such representations, furnish such information and comply with or be subject to such other conditions as it may consider
appropriate in connection with the issuance or delivery of Shares or payment of other benefits in compliance with applicable laws,
rules, and regulations, listing requirements, or other obligations.

 

(b)           Limits
on Transferability; Beneficiaries. No Award or other right or interest granted under the Plan shall be pledged, hypothecated
or otherwise encumbered or subject to any lien, obligation or liability of such Participant to any party, or assigned or transferred
by such Participant otherwise than by will or the laws of descent and distribution or to a Beneficiary upon the death of a Participant,
and such Awards or rights that may be exercisable shall be exercised during the lifetime of the Participant only by the Participant
or his or her guardian or legal representative, except that Awards and other rights (other than Incentive Stock Options and Stock
Appreciation Rights in tandem therewith) may be transferred to one or more Beneficiaries or other transferees during the lifetime
of the Participant, and may be exercised by such transferees in accordance with the terms of such Award, but only if and to the
extent such transfers are permitted by the Committee pursuant to the express terms of an Award Agreement (subject to any terms
and conditions which the Committee may impose thereon). A Beneficiary, transferee, or other person claiming any rights under the
Plan from or through any Participant shall be subject to all terms and conditions of the Plan and any Award Agreement applicable
to such Participant, except as otherwise determined by the Committee, and to any additional terms and conditions deemed necessary
or appropriate by the Committee.

 

(c)           Adjustments.

 

(i)       Adjustments
to Awards. In the event that any extraordinary dividend or other distribution (whether in the form of cash, Shares, or
other property), recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase,
share exchange, liquidation, dissolution or other similar corporate transaction or event affects the Shares and/or such other securities
of the Company or any other issuer such that a substitution, exchange, or adjustment is determined by the Committee to be appropriate,
then the Committee shall, in such manner as it may deem equitable, substitute, exchange or adjust any or all of (A) the number
and kind of Shares which may be delivered in connection with Awards granted thereafter, (B) the number and kind of Shares
by which annual per-person Award limitations are measured under Section 5 hereof, (C) the number and kind of Shares subject
to or deliverable in respect of outstanding Awards, (D) the exercise price, grant price or purchase price relating to any
Award and/or make provision for payment of cash or other property in respect of any outstanding Award, and (E) any other aspect
of any Award that the Committee determines to be appropriate.

 

    13 

     

    

 

(ii)       Adjustments
in Case of Certain Transactions. In the event of any merger, consolidation or other reorganization in which the Company
does not survive, or in the event of any Change in Control, any outstanding Awards may be dealt with in accordance with any of
the following approaches, as determined by the agreement effectuating the transaction or, if and to the extent not so determined,
as determined by the Committee: (a) the continuation of the outstanding Awards by the Company, if the Company is a surviving entity,
(b) the assumption or substitution for the outstanding Awards by the surviving entity or its parent or subsidiary, (c) full exercisability
or vesting and accelerated expiration of the outstanding Awards, or (d) settlement of the value of the outstanding Awards in cash
or cash equivalents or other property followed by cancellation of such Awards (which value, in the case of Options or Stock Appreciation
Rights, shall be measured by the amount, if any, by which the Fair Market Value of a Share exceeds the exercise or grant price
of the Option or Stock Appreciation Right as of the effective date of the transaction). The Committee shall give written notice
of any proposed transaction referred to in this Section 9(c)(ii) a reasonable period of time prior to the closing date for such
transaction (which notice may be given either before or after the approval of such transaction), in order that Participants may
have a reasonable period of time prior to the closing date of such transaction within which to exercise any Awards that are then
exercisable (including any Awards that may become exercisable upon the closing date of such transaction). A Participant may condition
his exercise of any Awards upon the consummation of the transaction.

 

(iii)       Other
Adjustments. The Committee is authorized to make adjustments in the terms and conditions of, and the criteria included
in, Awards (including performance goals relating thereto) in recognition of unusual or nonrecurring events (including, without
limitation, acquisitions and dispositions of businesses and assets) affecting the Company or any business unit, or the financial
statements of the Company or in response to changes in applicable laws, regulations, accounting principles, tax rates and regulations
or business conditions or in view of the Committee's assessment of the business strategy of the Company or business unit thereof,
performance of comparable organizations, economic and business conditions, personal performance of a Participant, and any other
circumstances deemed relevant; provided that no such adjustment shall be authorized or made if and to the extent that such authority
or the making of such adjustment would cause Options and Stock Appreciation Rights.

 

(d)           Taxes.
The Company is authorized to withhold from any Award granted, any payment relating to an Award under the Plan, including from
a distribution of Shares, or any payroll or other payment to a Participant, amounts of withholding and other taxes due or potentially
payable in connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable
to enable the Company and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating
to any Award. This authority shall include authority to withhold or receive Shares or other property and to make cash payments
in respect thereof in satisfaction of a Participant's tax obligations, either on a mandatory or elective basis in the discretion
of the Committee.

 

(e)           Changes
to the Plan and Awards. The Board may amend, alter, suspend, discontinue or terminate the Plan, or the Committee's authority
to grant Awards under the Plan, without the consent of shareholders or Participants, except that any amendment or alteration to
the Plan shall be subject to the approval of the Company's shareholders not later than the annual meeting next following such
Board action if such shareholder approval is required by any federal or state law or regulation , and the Board may otherwise,
in its discretion, determine to submit other such changes to the Plan to shareholders for approval; provided that, without the
consent of an affected Participant, no such Board action may materially and adversely affect the rights of such Participant under
any previously granted and outstanding Award. The Committee may waive any conditions or rights under, or amend, alter, suspend,
discontinue or terminate any Award theretofore granted and any Award Agreement relating thereto, except as otherwise provided
in the Plan; provided that, without the consent of an affected Participant, no such Committee or the Board action may materially
and adversely affect the rights of such Participant under such Award. Notwithstanding anything to the contrary, the Committee
shall be authorized to amend any outstanding Option and/or Stock Appreciation Right to reduce the exercise price or grant price
without the prior approval of the shareholders of the Company. In addition, the Committee shall be authorized to cancel outstanding
Options and/or Stock Appreciation Rights replaced with Awards having a lower exercise price without the prior approval of the
shareholders of the Company.

 

    14 

     

    

 

(f)           Limitation
on Rights Conferred Under Plan. Neither the Plan nor any action taken hereunder or under any Award shall be construed
as (i) giving any Eligible Person or Participant the right to continue as an Eligible Person or Participant or in the employ
or service of the Company; (ii) interfering in any way with the right of the Company to terminate any Eligible Person's or
Participant's Continuous Service at any time, (iii) giving an Eligible Person or Participant any claim to be granted any
Award under the Plan or to be treated uniformly with other Participants and Employees, or (iv) conferring on a Participant
any of the rights of a shareholder of the Company including, without limitation, any right to receive dividends or distributions,
any right to vote or act by written consent, any right to attend meetings of shareholders or any right to receive any information
concerning the Company’s business, financial condition, results of operation or prospects, unless and until such time as
the Participant is duly issued Shares on the stock books of the Company in accordance with the terms of an Award. None of the
Company, its officers or its directors shall have any fiduciary obligation to the Participant with respect to any Awards unless
and until the Participant is duly issued Shares pursuant to the Award on the stock books of the Company in accordance with the
terms of an Award. Neither the Company nor any of the Company’s officers, directors, representatives or agents are granting
any rights under the Plan to the Participant whatsoever, oral or written, express or implied, other than those rights expressly
set forth in this Plan or the Award Agreement.

 

(g)           Unfunded
Status of Awards; Creation of Trusts. The Plan is intended to constitute an “unfunded” plan for incentive
and deferred compensation. With respect to any payments not yet made to a Participant or obligation to deliver Shares pursuant
to an Award, nothing contained in the Plan or any Award shall give any such Participant any rights that are greater than those
of a general creditor of the Company; provided that the Committee may authorize the creation of trusts and deposit therein cash,
Shares, other Awards or other property, or make other arrangements to meet the Company's obligations under the Plan. Such trusts
or other arrangements shall be consistent with the “unfunded” status of the Plan unless the Committee otherwise determines
with the consent of each affected Participant. The trustee of such trusts may be authorized to dispose of trust assets and reinvest
the proceeds in alternative investments, subject to such terms and conditions as the Committee may specify and in accordance with
applicable law.

 

(h)           Nonexclusivity
of the Plan. Neither the adoption of the Plan by the Board nor its submission to the shareholders of the Company for approval
shall be construed as creating any limitations on the power of the Board or a committee thereof to adopt such other incentive
arrangements as it may deem desirable including incentive arrangements and awards which do not qualify under Section 162(m) of
the Code.

 

(i)           Payments
in the Event of Forfeitures; Fractional Shares. Unless otherwise determined by the Committee, in the event of a forfeiture
of an Award with respect to which a Participant paid cash or other consideration, the Participant shall be repaid the amount of
such cash or other consideration. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award. The Committee
shall determine whether cash, other Awards or other property shall be issued or paid in lieu of such fractional shares or whether
such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

  

(j)           Governing
Law. The validity, construction and effect of the Plan, any rules and regulations under the Plan, and any Award Agreement
shall be determined in accordance with the laws of the State of Delaware without giving effect to principles of conflict of laws,
and applicable federal law.

 

(k)           Plan
Effective Date and Shareholder Approval; Termination of Plan. The Plan shall become effective on the Effective Date, subject
to subsequent approval, within 12 months of its adoption by the Board, by shareholders of the Company eligible to vote in the
election of directors, by a vote sufficient to meet the requirements of Code Sections 162(m) (if applicable) and 422. Awards may
be granted subject to shareholder approval, but may not be exercised or otherwise settled in the event the shareholder approval
is not obtained. The Plan shall terminate at the earliest of (a) such time as no Shares remain available for issuance under the
Plan, (b) termination of this Plan by the Board, or (c) the tenth anniversary of the Effective Date. Awards outstanding upon
expiration of the Plan shall remain in effect until they have been exercised or terminated, or have expired.

 

    15Exhibit 10.11

 

REDACTED

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

 

RESEARCH
AND LICENSE AGREEMENT

 

This Research
and License Agreement (“Agreement”) is made in Jerusalem this 8 day of August 2019 (the “Effective
Date”), by and between:

 

YISSUM RESEARCH
DEVELOPMENT COMPANY OF THE HEBREW UNIVERSITY OF JERUSALEM, LTD., of Hi Tech Park, Edmond J. Safra Campus, Givat Ram, Jerusalem
91390, Israel (“Yissum”) of the first part; and

 

SCOPUS BIOPHARMA
INC., 420 Lexington Avenue, Suite 300, New York NY, 10170 (the “Company”), of the second part; (each of
Yissum and the Company, a “Party”, and collectively the “Parties”)

 

	
        WHEREAS:

         
	in accordance with the terms of a Memorandum of Understanding between the Company’s Israeli subsidiary, Scopus BioPharma of Israel, Ltd., and Yissum dated July 28, 2018 (“MOU”), the Company is funding research which the Researcher has performed and is performing for the benefit of the Company;  
	 	 
	
        WHEREAS:

         
	
        research has been
        and is being conducted by Dr. Dimitri Tsvelikhovsky (the “Researcher”) at the University (as defined in
        Section 1 below), in accordance with research plans set forth in the MOU;

	 	 
	
        WHEREAS:

         
	in conducting the research under the MOU, the Researcher developed (i) new chemical derivatives of CBG and THCV;(ii) new chemical conjugates of CBD and known drugs and (iii) a basis for a new synthesis protocol for known cannabinoid molecules, including CBD, THC, CBG and THCV;  
	 	 
	
        WHEREAS:

         
	pursuant to the regulations of the University, the rights and title to all inventions, know-how and the results of research created by scientists of the University vest solely with Yissum, including the technology developed by the Researcher as aforesaid; and
	 	 
	
        WHEREAS: 

         
	the Company has represented to Yissum that (i) the Company is experienced in the development of Products based on inventions and the results of research of the type that are the subject of the MOU and this Agreement; and (ii) either by itself or through third parties, it has the financial capacity and the strategic commitment to facilitate the development, production, marketing, sale and distribution of such products; and
	 	 
	
        WHEREAS: 

         
	the Company wishes to obtain a license from Yissum for the development and commercialization of all the inventions and results derived from the Research and any Licensed Patents that may hereafter issue based upon the Research; and   

 

     

     

    

 

	WHEREAS:	Yissum agrees to grant the Company such a license, all in accordance with the terms and conditions of this Agreement.

 

NOW THEREFORE
THE PARTIES DO HEREBY AGREE AS FOLLOWS: 

 

		1.	Interpretation and Definitions

 

		1.1.	The preamble and appendices to this Agreement constitute an integral part hereof and shall be read
jointly with its terms and conditions but shall be afforded no legal effect.

 

		1.2.	In this Agreement, unless otherwise required or indicated by the context, the singular shall include
the plural and vice-versa, the masculine gender shall include the female gender, “including” or “includes”
shall mean including, without limiting the generality of any description preceding such terms and the use of the term “or”
shall mean “and/or” and any reference to the term “sale” shall include the sale, lease, rental, or other
disposal of any Product.

 

		1.3.	The headings of the Sections in this Agreement are for the sake of convenience only and shall not
serve in the interpretation of the Agreement.

 

		1.4.	In this Agreement, the following capitalized terms shall have the meanings appearing alongside
them, unless provided otherwise:

 

		1.4.1.	“Additional Ingredient” shall mean any
compound or substance which (i) is contained in a product and (ii) when administered to a patient has a therapeutic or prophylactic
clinical effect independent of a Product, either directly or by acting synergistically with or otherwise enhancing the effect
of other compounds or substances (including the Product) contained in such product.

 

		1.4.2.	“Affiliate”
                                         shall mean any person, organization or other legal entity which controls, or is controlled
                                         by, or is under common control with, the Company. “Control” shall
                                         mean the holding of more than                                                    of (i) the equity, or (ii) the voting rights, or (iii) the right to elect or appoint
                                         a majority of directors; provided, however, a Subsidiary of the Company shall
                                         not be deemed an Affiliate in connection with any Sublicense but instead shall be deemed
                                         the Company hereunder.

 

		1.4.3.	“Combination Product” shall mean a product, substance or device which comprises
a Product and at least one Additional Ingredient.

 

		1.4.4.	“Commercial Product” shall mean a Product which is not a Regulated Product.

 

    	 	2	 

     

    

 

		1.4.5.	“Development Plans” shall mean the written plans and timetables, for Regulated
Products and Commercial Products, copies of which are attached to this Agreement as Appendix B, for the development and
the commercialization of any Products that may result from the Research including specific development milestones, prepared by
the Company and approved by Yissum pursuant to Section 5.1 below.

 

		1.4.6.	“Development Results” shall mean the results of activities carried out by the
Company or by third parties (other than the Researcher and his/her team or any other University employee) at the direction of the
Company pursuant to the Development Plans or otherwise in fulfillment of the Company’s obligations hereunder (including its
development obligations under Section 5 below), including any invention, patent or patent application, product, material, method,
discovery, composition, process, technique, know-how, data, information or other result which do not form part of the Licensed
Technology, and further including any governmental or regulatory filing submitted, or approval, license, registration, or authorization
obtained, by the Company, an Affiliate or Sublicensee in respect of the Products, as well as any other information, data, material,
results, devices and know-how arising from the performance of the Development Plans.

 

		1.4.7.	“First Commercial Sale” shall mean the
first sale of a Regulated Product by the Company, an Affiliate or a Sublicensee after the receipt of any required regulatory approval
to market and sell such Regulated Product. Notwithstanding the foregoing and for the avoidance of doubt, sales of Regulated Products
for the purposes of clinical trials or other testing prior to a First Commercial Sale shall entitle Yissum to payment of consideration
in accordance with Section 7 below, but shall not be considered a First Commercial Sale.

 

		1.4.8.	“Joint Patents” shall have the meaning
set forth in Section 9.2 below.

 

		1.4.9.	“Initial Research Budget” means the
budget for the Initial Research Program as set forth in the MOU.

 

		1.4.10.	“Initial Research Period” means the
period for the Initial Research Program set forth in the MOU.

 

		1.4.11.	“Initial Research Program” means the
initial program under which the Research is being funded by the Company and carried out and being conducted by the Researcher,
as set forth in the MOU.

 

    	 	3	 

     

    

 

		1.4.12.	“Know-How” shall mean any non-public,
proprietary, tangible or intangible information, techniques, technology, practices, trade secrets, inventions, methods, processes,
knowledge, ancillary materials, results or devices (whether patentable or not) developed by the Researcher prior to the execution
of this Agreement solely and directly related to the subject matter claimed in any Licensed Patents and Research, including under
the Initial Research Program, and belonging to Yissum and described generally in Appendix A.

 

		1.4.13.	“License” shall have the meaning set
forth in Section 3.1 below.

 

		1.4.14.	“Licensed
                                         Patents” shall mean (i) any future patents resulting from Research Results
                                                                                                                                                                                                     , and any patent application that claims priority therefrom; as well as (ii) all divisions,
                                         continuations, continuations-in-part, re-examinations, reissues, renewals, registrations,
                                         confirmations, substitutions, or extensions, including European Supplementary Protection
                                         Certificates (“SPCs”) (within the meaning of such term under Council Regulation
                                         (EU) No. 1768/92), and/or any other similar statutory protection, and any provisional
                                         applications, national, regional, PCT or similar applications and any and all patents
                                         issuing from, and patentable inventions, methods, processes, and other subject matter
                                         disclosed or claimed in, any or all of the foregoing. The Licensed Patents at the date
                                         of this Agreement are set forth in Appendix A, which shall be updated from time
                                         to time to include new Licensed Patents.

 

		1.4.15.	“Licensed Technology” shall mean the
Know-How, the Research Results and any Licensed Patents, as well as Yissum’s interest in the Joint Patents.

 

		1.4.16.	“Net Sales” shall mean:

 

		(a)	the gross sales price invoiced for sales of Products by
the Company, an Affiliate or Sublicensee to a third party; or

 

		(b)	the fair market value of non-monetary consideration received
in connection with such sales; after deduction of: (i) commercially reasonable discounts and return credits to the extent actually
taken by third parties; (ii) outbound transportation, packing and delivery charges, as well as prepaid freight (including shipping
insurance) actually incurred; and (iii) sales taxes, including VAT paid by customers for transfer in full to applicable tax authorities;
provided that such deductions shall be directly related to the sale of Products that were awarded within the regular running of
the business of the Company, Affiliate or Sublicensee.

 

    	 	4	 

     

    

 

In the event
of sales of Products made through a distributor, or marketing agent where the transfer to the distributor or marketing agent was
made for a price certain without the Company, Affiliate or Sublicensee being entitled to any further compensation for such transfer
based upon the price at which the distributor or marketing agent sells Products to a third party, the sales made by such distributor
or marketing agent to a third party shall not be deemed gross sales for the purposes of this Agreement. Rather, the gross sales
shall be the amounts invoiced for Products transferred to such distributor or marketing agent by the Company, an Affiliate or Sublicensee.

 

In the event
of sales or deductions not made at “arms-length”, then for the purpose of calculation of Royalties (as defined below)
to Yissum, Net Sales shall be calculated in accordance with armslength prices for sale of Products to an independent third party
purchaser and arms-length deductions, to be determined by the current market conditions, or in the absence of such conditions,
according to the assessment of an independent appraiser to be selected by the Parties.

 

		1.4.17.	“Product” shall mean any product, system,
device, material, method, process or service, the development, manufacture, provision or sale of which, in whole or in part (i)
uses, exploits, comprises, contains, improves upon or incorporates the Licensed Technology or any part thereof, or is otherwise
covered thereby, or falls within the scope thereof, in whole or in part, or uses the Licensed Technology as a basis for subsequent
modifications; or (ii) but for the License (as defined below) would infringe any claim of a Licensed Patent.

 

		1.4.18.	“Representatives” shall mean employees,
researchers, officers, agents, subcontractors, consultants, and/or any other person or entity acting on a Party’s behalf.

 

		1.4.19.	“Regulated Product” shall mean a Product
of a pharmaceutical nature that requires regulatory approval to sell and market after having undergone human clinical trials

 

		1.4.20.	“Research” shall mean the research conducted
by the Researcher prior to the Effective Date, solely and directly related to the subject matter in the preamble under the Initial
Research Program, and to be conducted from time to time hereafter under the Initial Research Program and any Subsequent Research
Program.

 

		1.4.21.	“Research Results” shall mean any inventions,
products, materials, compounds, compositions, substances, methods, processes, techniques, know-how, data, information, discoveries
and other results of whatsoever nature, discovered or occurring in the course of, or arising from, the performance of any Research,
including any patent applications and patents (which shall be added to Exhibit A hereunder), information, material, results, devices
or know-how arising therefrom.

 

    	 	5	 

     

    

 

		1.4.22.	“Researcher” shall mean Dr. Dmitry Tsvelikhovsky,
or such other person as determined and appointed from time to time by Yissum to supervise and to perform the Research, if applicable.

 

		1.4.23.	“Royalties” shall have the meaning set
forth in Section 7.1 below

 

		1.4.24.	“Subsequent Research Budget” shall mean
the budget set forth for any Subsequent Research Program.

 

		1.4.25.	“Subsequent Research Period” shall mean
the expected length of any Subsequent Research Program.

 

		1.4.26.	“Subsequent Research Program” shall
mean a program under which future Research shall be funded by the Company and shall be carried out and conducted by the Researcher
in accordance with any Subsequent Research Program.

 

		1.4.27.	“Subcontracting Agreement” shall mean
(i) a bona fide subcontracting agreement with a subcontractor in which the Company must grant the subcontractor the right to make
use of the Licensed Technology on behalf of the Company, and for which use the Company is required to pay or otherwise compensate
the subcontractor, including, but not limited to, manufacturing or developing any of the Products (or part thereof); or (ii) a
bona fide arms-length research agreement, pursuant to which an academic or research institution is engaged for the purpose of
performing research, on the Company’s behalf, for the development of any of the Products (or part thereof); provided that
in no event shall the consideration (if any) therefor comprise any Products; and further provided that such subcontracting agreement
in (i) and (ii) above shall contain terms substantially as protective in relation to the Licensed Technology, as the terms of
this Agreement; and the term “Subcontractor” shall be construed accordingly.

 

		1.4.28.	“Sublicense” shall mean any grant by
the Company or its Affiliates of any of the rights granted under this Agreement or any part thereof; including the right to develop,
manufacture, market, sell or distribute the Licensed Technology or any Product, for which grant the recipient of the Sublicense
is required to pay the grantor of the Sublicense (or the grantor’s related entity), excluding
a Subcontracting Agreement.

 

    	 	6	 

     

    

 

		1.4.29.	“Sublicense Consideration” shall mean
any proceeds or consideration or benefit of any kind whatsoever, whether monetary or otherwise, that the Company or an Affiliate
may receive from a Sublicensee as a result of the grant of a Sublicense or an option for a Sublicense and/or pursuant thereto,
except amounts received by the Company which constitute royalties based on sales by Sublicensees in respect of which the
Company is required to pay Royalties to Yissum and amounts received for research and development of Products as can be shown by
documented research or development program and budget.

 

		1.4.30.	“Sublicense Fees” shall have the meaning
set forth in Section 7.3 below.

 

		1.4.31.	“Sublicensee” shall mean any third party
to whom the Company or an Affiliate shall grant a Sublicense or an option for a Sublicense. For the sake of clarity, Sublicensee
shall include any other third party (other than a Subcontractor) to whom such rights shall be transferred or assigned, or who
may assume control thereof by operation of law or otherwise.

 

		1.4.32.	“Subsidiary” shall mean a direct or
indirect wholly-owned business entity of the Company.

 

		1.4.33.	“Territory” shall mean worldwide.

 

		1.4.34.	“Third Party License” shall mean a license
from an unaffiliated third party to one or more valid and enforceable patents issued in the United States or any other jurisdiction,
the claims of which cover one or more active ingredients of the Product and without which the Company, its Affiliates and/or its
or their Sublicensees would not be reasonably able to develop, manufacture and commercialize such Product in a particular country.

 

		1.4.35.	“University” shall mean the Hebrew University
of Jerusalem and each of its branches.

 

		2.	The Research

 

		2.1.	In addition to the Initial Research Program, the Company
may finance performance of a Subsequent Research Program in accordance with a Subsequent Research Budget during a Subsequent Research
Period or any amendments thereof as may be agreed upon by the Company and Yissum following completion of the Initial Research
Program.

 

    	 	7	 

     

    

 

		2.2.	Any Research to be conducted pursuant to the Initial Research
Program shall be governed by the MOU. Any Subsequent Research Program shall be under the supervision of the Researcher. Should
the Researcher be unable to complete the Research under a Subsequent Research Program for any reason, Yissum shall notify the
Company of the identity of a suitable replacement researcher. If the Company does not object in writing to the replacement researcher
on reasonable grounds within 20 days of this notification, the substitute researcher shall be deemed acceptable to the Company.
Alternatively, the Company shall have the right to terminate any Subsequent Research Program, in which case monies paid to Yissum
for the Research pursuant to the Subsequent Research Budget which have not been expended at the time of termination will be refunded
to the Company; provided that the Company shall be responsible for the payment of any accrued fees and expenses due to Yissum
based on work duly performed up to the date of termination and those irrevocable commitments that were part of the Subsequent
Research Budget and entered into by Yissum prior to having received the Company’s written notice of termination.

 

		2.3.	For the avoidance of doubt, should the Company wish to
place its employees in the laboratories of the Researcher on any campus of the University in connection with the Research or any
other aspect of this Agreement it may do so after executing a separate agreement with Yissum setting out the terms of such placement;
provided, however, that the Company shall have the right to have its representative visit the Researcher’s laboratories
on an ad hoc, periodic basis with advanced coordination with the Researcher without the need for the execution of an agreement.

 

		2.4.	The compensation to Yissum for the performance of the Subsequent
Research Program, subject to any earlier termination of the Subsequent Research Program, shall be set forth in a Subsequent Research
Budget as agreed upon by Yissum and the Company.

 

		2.5.	For the avoidance of doubt, nothing herein shall prevent
Yissum or the University or the Researcher from obtaining, subject to the Company’s approval, any finance or grants from
other entities for research outside the Field regarding the Licensed Technology, provided that such entities shall not be granted
rights in the Research or Research Results prejudicial to or inconsistent with the rights granted to the Company in this Agreement
or which limit in any manner the scope or terms of the license and rights granted to the Company hereunder. The results of any
such research financed by other entities shall not form part of the Licensed Technology and shall not be subject to the License
hereunder.

 

		2.6.	Within 60 days of the end of each 12 months of a Research
Program, Yissum shall present the Company with a written report from the Researcher summarizing the results of the Research under
the Research Program during the preceding year. In addition, Yissum shall cause the Researcher to provide progress reports to
the Company no less than quarterly throughout a Research Program and shall respond to the Company’s reasonable requests
for progress information from time to time.

 

    	 	8	 

     

    

 

		2.7.	Nothing contained in this Agreement shall be construed
as a warranty on the part of Yissum that any results or inventions will be achieved by the Research, or that the Research Results,
if any, are or will be commercially exploitable. Yissum makes no warranties whatsoever as to the commercial or scientific value
of the Research Results.

 

		2.8.	Should the Company choose to (a) retain the services of
the Researcher or any other employee of the University in connection with the Research or the License; or (b) grant any benefit,
including cash payments or securities of any kind, to the Researcher or any other employee of the University, it shall do so only
through a written agreement executed between the Company and Yissum. Any such agreement will require, among other things, that
any intellectual property rights generated under such agreement will be governed by the terms of this Agreement. Notwithstanding
the foregoing, the Researcher may become a member of the Company’s Scientific Advisory Board and may be compensated for
such involvement, including by way of monetary compensation and option grants, all subject to a separate agreement to be entered
to between Yissum, the Researcher and the Company.

 

		3.	The License

 

		3.1.	Yissum hereby grants the Company an exclusive, worldwide
license to make commercial use of the Licensed Technology, in order to develop, have developed, manufacture, have manufactured,
use, market, distribute, sell, have sold, export and import Products, subject to and in accordance with the terms and conditions
of this Agreement (the “License”).

 

		3.2.	Notwithstanding the provisions of Section 3.1, above, Yissum,
on behalf of the University, shall retain the right, subject to any limitations otherwise set forth in this Agreement, (i) to
make, use and practice the Licensed Technology for the University’s own internal non-commercial research and educational
purposes; and (ii) to license or otherwise convey to other academic and not-for-profit research organizations, the Licensed Technology
for use in non-commercial research.

 

		4.	Term of the License

 

		4.1.	The License shall expire, if not earlier terminated pursuant
to the provisions of this Agreement, on a country-by-country, Product-by-Product basis, upon the later of: (i) the date of expiration
in such country of the last to expire Licensed Patent included in the Licensed Technology; (ii) the date of expiration of any
exclusivity on the Product granted by a regulatory or government body in such country; or (iii) the end of a period of 15 years
from the date of the First Commercial Sale in such country; provided, however, the foregoing shall not apply to any Commercial
Product. Should the periods referred to in Subsections (i) or (ii) expire in a particular country prior to the period referred
to in Subsection (iii), above, the license in that country or those countries shall be deemed a license to the Know-How during
such postexpiration period. The term of this License for Commercial Products shall be through the date that the last issued Licensed
Patent relating to such Commercial Product in any country expires and, in the absence of any such Licensed Patent, 20 years from
the date hereof.

 

    	 	9	 

     

    

 

Upon the expiration of the later
of the periods set forth in Subsections (i) through (iii) above and for the period relating to Commercial Products (and provided
that the License has not been terminated prior thereto), the Company shall have a fully-paid non-exclusive license to the Know-How,
and the Company shall have an irrevocable option to obtain an exclusive license to the Know-How by agreeing to pay Yissum          
of the consideration set forth in Section 7.3 and 7.6 below, in respect of Net Sales and Sublicense Consideration received
during the period of such license which shall continue for a period of two (2) years after termination of the later of the periods
as referred to above and shall be renewed automatically for additional successive two (2) year periods, unless the Company or
Yissum notifies the other Party in writing prior to the end of the then current two (2) year period that it does not wish the
license to be renewed as aforesaid.

 

		5.	Development and Commercialization

 

		5.1.	The Company undertakes, at its own expense, to use its
commercially reasonable efforts to carry out the development, regulatory, manufacturing and marketing work necessary to develop
and commercialize Products in accordance with the Development Plans, a copy of which is attached to this Agreement as Appendix
B. The Development Plans may be modified from time to time by the Company as reasonably required in order to achieve the commercialization
goals set forth in the Development Plans; provided, however, that changes to the specified dates for the achievement of
the Milestones set forth in the Development Plans (the “Development Milestones”) shall be subject to Yissum’s
prior written approval, not to be unreasonably conditioned, withheld or delayed. All terms and conditions of the License and this
Agreement shall apply to the modified Development Plans and subsequent Development Results. Notwithstanding anything to the contrary
contained herein, the Company undertakes to use commercially reasonable efforts to meet the Development Milestones.

 

		5.2.	The Parties shall establish a steering committee (the “Committee”)
to be a forum for the exchange of information between the Parties with respect to the exercise of the License. Each Party shall
be entitled to designate two (2) representatives to the Committee (the “Committee Representatives”). The Committee
shall meet at least once per calendar year. The Committee Representatives shall be bound by the confidentiality arrangements set
out in this Agreement. For the avoidance of doubt, the Committee shall act only in an advisory capacity and shall not have decision-making
powers.

 

    	 	10	 

     

    

 

The Company
shall (i) provide Yissum with periodic written reports (“Development Reports”) not less than once per year concerning
all material activities undertaken in respect of the exercise of the License, (ii) keep Yissum informed on a timely basis via the
Committee concerning all material activities and changes to a Development Plan undertaken in respect of the exercise of the License,
and (iii) at Yissum’s request, from time to time, provide Yissum via the Committee with further information relating to the
Company’s activities in exercise of the License. The Development Reports shall include descriptions of the progress and results,
if any, of: (a) the tests and trials conducted and all other actions taken by the Company pursuant to the Development Plans, and
a summary of the Development Results and any other related work effected by the Company or by any Affiliate or Sublicensee during
the 12 month period prior to the report, (b) manufacturing, sublicensing, marketing and sales during the 12 month period prior
to the report; (c) the Company’s plans in respect of the testing, undertaking of trials or commercialization of Products
for the following 12 months; and (d) projections of sales and marketing efforts following the First Commercial Sale. Development
Reports shall also set forth a general assessment regarding the achievement of any milestones; the projected – or actual
– completion date of the development of a Product and the marketing thereof; as well as a description of any corporate transaction
involving the Products or the Licensed Technology. If progress in respect of a Product differs from that anticipated in its Development
Plan or a preceding Development Report, the Company shall explain, in its Development Report. The Company shall also make reasonable
efforts to provide Yissum with any reasonable additional data that Yissum requires to evaluate the performance of the Company hereunder.

 

		5.3.	[RESERVED]

 

		5.4.	[RESERVED]

 

		5.5.	If the Company shall not meet the milestones set forth
in a Development Plan, unless such delay is caused by (i) the requirements of a regulatory or other governmental authority; (ii)
force majeure in accordance with Section 17.9, below; or (iii) unless the Company and Yissum have agreed in writing to amend the
Development Plan, Yissum shall notify the Company in writing of the Company’s failure to meet its obligations of diligence
and shall allow the Company 120 days to cure such failure. If, to Yissum’s reasonable satisfaction, the Company is diligently
taking measures to cure such failure, Yissum may, at its sole discretion, notify the Company in writing that it is extending the
period given to cure such failure by an additional period of up to sixty (60) days. The Company’s failure to cure within
the aforementioned cure period (or extended cure period) to Yissum’s reasonable satisfaction shall be a material breach
of this Agreement, entitling Yissum to immediate termination under Section 15.2 below.

 

    	 	11	 

     

    

 

		5.6.	The Company shall perform all its activities hereunder
in accordance with all applicable laws and regulations, and shall procure the receipt of all approvals and consents necessary
for the performance of its obligations hereunder.

 

		5.7.	Where legally permissible, the Company agrees to provide
Yissum and/or the University (for no consideration) a reasonable number of units of any Product developed and/or manufactured
under this Agreement, at the Company’s discretion, for internal academic research purposes only.

 

		6.	Sublicenses

 

		6.1.	The Company shall be entitled to grant Sublicenses under
the License granted pursuant to Section 2.1 on terms and conditions in compliance and not inconsistent with the terms of this
Agreement (except that the royalty rates may be different than those set forth in this Agreement). Such Sublicenses shall be made
(i) for consideration and in arm’s length transactions; and (ii) to entities that the Company reasonably believes have the
commercial and scientific capabilities and resources to continue the development and commercialization of Products as required
pursuant to this Agreement.

 

		6.2.	The Company shall notify Yissum in writing whether a proposed
Sublicensee is an Affiliate or is otherwise related to the Company. In addition, the Company shall provide Yissum with an executed
copy of the Sublicense agreement within 10 days of its execution. The Company will provide Yissum with an executed copy of any
material amendments to the Sublicense agreement within 10 days of the execution of such amendment provided, however, that
the Sublicense agreement may be redacted to the extent that it contains terms unrelated to the Licensed Technology.

 

		6.3.	A Sublicensee shall be entitled to further Sublicense its
rights under the Sublicense agreement, provided that any such further Sublicensee meets the criteria set forth in Section 6.1,
and such further Sublicensee is a pharmaceutical company with annual revenues of at least US $100 million.

 

		6.4.	Any Sublicense shall be dependent on the validity of the
License and shall terminate upon termination of the License, subject to the terms of Section 15.4.

 

		6.5.	The Company shall ensure that any Sublicense shall include
material terms that require the Sublicensee to comply with the terms of this Agreement, including, Section 14 below, the breach
of which terms shall be a material breach resulting in termination of the Sublicense. In such an event, the Company undertakes
to take all reasonable steps to enforce such terms upon the Sublicensee, including the termination of the Sublicense. In all cases,
the Company shall immediately notify Yissum of any breach of the material terms of a Sublicense, and shall copy Yissum on all
correspondence with regard to such breach.

 

    	 	12	 

     

    

 

Furthermore,
in the context of any Sublicense, the Company will obtain an agreement from the relevant Sublicensee that such Sublicensee may
only use the Licensed Technology and any related information received from the Company in connection with the further development
and/or commercialization of a Product pursuant to the terms of the Sublicense agreement, and will keep same confidential; and (ii)
naming Yissum as a third party beneficiary with the right to directly enforce the use and confidentiality provisions described
in Subsection (i) above and the reporting provisions set out in Sections 6.6 and 8.2 below.

 

		6.6.	Without derogating from the generality of Section 6.5 above,
the Company shall require each Sublicensee to provide it with regular written royalty reports that include at least the detail
that the Company is required to provide pursuant to Section 8.2 below. Upon reasonable request, the Company shall provide such
reports to Yissum.

 

		6.7.	Any act or omission of the Sublicensee which is not promptly
remedied by the Company or the Sublicensee and which would have constituted a breach of this Agreement by the Company had it been
an act or omission of the Company, and which the Company has not made best efforts to promptly cure, including termination of
the Sublicense, shall constitute a breach of this Agreement by the Company provided, however, that any such breach shall
be subject to a cure period consistent with the terms of this Agreement.

 

		6.8.	The Company shall not be entitled to grant any rights whatsoever
in respect of the Licensed Technology or the Product to any third party, including rights of distribution/distributorship, except
by means of a Sublicense or Subcontracting Agreement.

 

		7.	License Consideration

 

In consideration
for the grant of the License, the Company shall pay Yissum the following consideration during the term of the License as set forth
in Section 4 above:

 

		7.1.	Royalties:

 

		7.1.1.	Royalties
                                         at a rate of       
                                         of Net Sales of Regulated Products by the Company or its Affiliates and        
                                         for Commercial Products (the “Company Royalties”), subject to the
                                         Reductions.

 

    	 	13	 

     

    

 

		7.1.2.	Notwithstanding the foregoing the following provisions
shall apply as to Regulated Products with respect to reductions in the Royalties payments (the “Reductions”):

 

Generic Competition:
In the event that during the Term of the License (as defined in Section 4 above), there is any Generic Competition (as defined
below) with respect to a particular Regulated Product in a particular country in which such Regulated Product is being sold, and
for so long as such Generic Competition persists, the royalty amount payable to Yissum for sales of such Regulated Product (only)
in such country shall be reduced by                     
..

 

For the
purpose of this Section 7.1.2 only “Generic Competition” shall mean, with respect to a particular Regulated
Product in a particular country, when (a) one or more Generic Product(s) are being marketed in such country; and (b) there are
no Valid Claims covering such Regulated Product provided, however, that for defining a Generic Product in the United States the
criteria will be either having no Valid Claim covering the United States or having Paragraph IV certification or regulatory exclusivity
in respect of such Product, in such country.

 

“Generic Product”
shall mean a product (a) containing an active pharmaceutical ingredient or component that is equivalent to the active ingredient
or component in a particular Product being sold in a particular country; and (b) that has obtained regulatory approval by means
of establishing equivalence to such Product; and (c) that is legally marketed in such country by an entity other than the Company,
its Affiliates and/or Sublicensees; and (d) that at the end of the applicable calendar year, due to the marketing and sales of
the Generic Product, there is a reduction in the volume of sales of such Product in such country by the Company, its Affiliates
and/or Sublicensees, in comparison to the previous calendar year, by at least                      .

 

		7.1.3.	Royalties of
                                         Net Sales of Products by Sublicensees at a rate equal to the lesser of (i)       
                                         of Net Sales of Regulated Products and       
                                         of Net sales of Commercial Products by the particular Sublicensee (or its Affiliates)
                                         or (ii)       
                                         of any proceeds, or consideration or benefit of any kind whatsoever, that the Company
                                         or its Affiliates receive from such Sublicensee as a result of any sales of Regulated
                                         Products and Commercial Products by the Sublicensee (or its Affiliates subject to the
                                         deductions set out below), payable as to Regulated Products on a Product by Product and
                                         country by country basis,(the “Sublicense Royalties”) subject to the
                                         Reductions. The determination whether to pay pursuant to (i) or (ii) shall be made on
                                         a payment-by-payment basis.

 

(The “Company
Royalties” and the “Sublicense Royalties” shall collectively be referred to as the “Royalties”)

 

    	 	14	 

     

    

 

		7.1.4.	For purposes of determining royalty payments on sales of
Combination Products, “Net Sales” shall be adjusted by multiplying the actual Net Sales of such Combination
Product during the applicable royalty reporting period, by the fraction A/(A+B) where: “A” is the average sale price
of the Product contained in the Combination Product when sold separately by the Company or its Affiliate; and “B”
is the average sale price of the other Additional Ingredients included in the Combination Product when sold separately by its
supplier, in each case during the applicable royalty reporting period or if sales of both the Product and/or other Additional
Ingredients did not occur in such period, then in the most recent royalty reporting period in which sales of both occurred. In
the event that such average sale price cannot be determined for both the Product and all other Additional Ingredients included
in the Combination Product, Net Sales for the purpose of determining royalty payments shall be calculated by multiplying the Net
Sales of the Combination Products by the fraction of C/(C+D) where “C” is the fair market value of the Product and
“D” is the fair market value of all other Additional

 

Ingredients
included in the Combination Product. In such event, the Parties shall negotiate in good faith to arrive at a determination of the
respective fair market values of the Product and all other Additional Ingredients included in the Combination Product.

 

		7.1.5.	In the event
                                         that the Company or an Affiliate of the Company is legally required to make royalty payments,
                                         and actually make such payments, at fair market terms after arms’ length negotiations,
                                         to one or more third parties to obtain a Third Party License from such third party(ies)
                                         in a particular country, the Company may offset such third-party payments against the
                                         royalty payments that are due to Yissum pursuant to Sections 7.1.1, 7.1.2 or 7.1.3 with
                                         respect to sales in such country; provided however, that in no event, shall the
                                         royalty payments to Yissum on Net Sales of such Product be reduced, on an annual basis,
                                         by more than       
                                         as a result of the foregoing Third Party License deduction.

 

Notwithstanding
Section 7.1.5, in the event the royalties the Company or its Affiliate are legally required to pay for a Third Party License as
described in Section 7.1.5 relate to an Additional Ingredient included in a Combination Product, the Company shall not be entitled
to reduce the royalty payments under Section 7.1.5.

 

    	 	15	 

     

    

 

		7.2.	Milestone Payments:

 

		7.2.1.	The Company shall pay Yissum the following amounts in connection
with the achievement of the following milestones for (whether by the Company, an Affiliate or a Sublicensee):

  

For Regulated Products

 

	Milestone 	Payment 
	
        Upon
dosing of the first patient in the first in-human trial
	                         
	Upon the dosing of the first patient in a pivotal Phase IIb/Phase III trial	                         
	Upon Approval of an NDA in the US	                         
	Upon approval of an equivalent marketing application in any EU country	                         
	
        Upon
the first approval of an equivalent marketing application in either China or Canada
	                         

 

For Commercial Products

 

	Milestone 	Payment 
	Optimization	                         
	Small scale pilot plant	                         

 

		7.3.	Sublicense fees:

 

		7.3.1.	Sublicense fees
                                         at a rate of       
                                         of Sublicense Consideration.

 

		8.	Reports and Accounting

 

		8.1.	The Company shall give Yissum written notice of any (i)
Sublicense Consideration received; (ii) First Commercial Sale made; or (iii) Milestone achieved; within 30 days of the particular
event.

 

		8.2.	Within 60 days after the end of each calendar quarter commencing
from the earliest of (i) the First Commercial Sale; (ii) the grant of a Sublicense or receipt of Sublicense Consideration; or
(iii) the occurrence of a Milestone, the Company shall furnish Yissum with a quarterly report (“Periodic Report”),
certified as being correct by an executive officer of the Company, detailing the total sales and Net Sales effected during the
preceding quarter, the total Sublicense Consideration received during the preceding quarter and the total Royalties, Sublicense
Fees and, if relevant, any payments on account of the achievement of Milestone due to Yissum in respect of that period. Once the
events set forth in Subsection (i), (ii) or (iii) above, have occurred, Periodic Reports shall be provided to Yissum whether or
not Royalties, Sublicense Fees or payments on account of the achievement of Milestone are payable for a particular calendar quarter.
The Periodic Reports shall contain full particulars of all sales made by the Company, Affiliates or Sublicensees and of all Sublicense
Consideration received, including a breakdown of the number and type of Products sold, discounts, returns, the country and currency
in which the sales were made, invoice dates and all other data enabling the Royalties and Sublicense Fees payable to be calculated
accurately.

 

    	 	16	 

     

    

 

		8.3.	The Company shall pay the amounts due to Yissum for the
reported period within 60 days of the presentation of the Periodic Report against an invoice issued by Yissum for such amounts.
All payments under this Agreement shall be computed and paid in US dollars, using the appropriate foreign exchange rate reported
by the Bank of Israel on the last working day of the calendar quarter. Payment of value added tax or any other tax, charge or
levy applicable to the payment to Yissum of the consideration as detailed in Section 7 above, shall be borne by the Company and
added to each payment in accordance with the statutory rate in force at such time. All payments made to Yissum by an Israeli entity
shall be made without the withholding of any taxes, provided that Yissum shall supply such Israeli entity, at its request, with
a tax certificate indicating an official exemption from tax withholding, for so long as Yissum has such a certificate. For the
avoidance of doubt, if Yissum does not supply such certificate, the Israeli entity shall withhold taxes according to applicable
law. All other payments to Yissum by non-Israeli entities shall be made without the withholding of any taxes where permitted by
applicable law. Payments may be made by check or by wire transfer to the following account:

 

Name of
Bank: Hapoalim

Bank Key:
12

Bank’s
address: 1 Hamarpe Street, Jerusalem, Israel

Branch:
Jerusalem Business Branch - 436

Bank account
Number: 12-436-142-155001

Swift Code:
POALILIT

 

		8.4.	The Company shall keep, and shall require its Affiliates
and Sublicensees to keep, full and correct books of account in accordance with applicable Generally Accepted Accounting Principles
as required by international accounting standards enabling the Royalties and Sublicense Fees to be calculated accurately. Starting
from the first calendar year after the First Commercial Sale, or the first grant of a Sublicense, whichever occurs first, an annual
report, certified as being correct by an executive officer of the Company, shall be submitted to Yissum within 90 days of the
end of each calendar year, detailing Net Sales and Sublicense Consideration, Royalties and Sublicense Fees, both due and paid
(the “Annual Reports”). The Annual Reports shall also include the Company’s sales and royalty forecasts
for the following calendar year, if available.

 

    	 	17	 

     

    

 

The Company
shall, and shall require and cause its Affiliates and Sublicensees to, retain such books of account for five (5) years after the
end of each calendar year during the period of this Agreement, and, if this Agreement is terminated for any reason whatsoever,
for five (5) years after the end of the calendar year in which such termination becomes effective.

 

		8.5.	Yissum will allow the Company a credit against future Royalties
to be paid for Royalties previously paid on account of Net Sales the account receivable of which was subsequently written off
by the Company; provided, if payment of any account for Net Sales which was deducted is subsequently paid, such account shall
be deemed a part of Net Sales hereunder.

 

		8.6.	Yissum shall be entitled to appoint not more than two (2)
representatives who must be independent certified public accountants or such other professionals as appropriate (the “Auditors”)
to inspect during normal business hours the Company’s and its Affiliates’ books of account, records and other relevant
documentation to the extent relevant or necessary for the sole purpose of verifying the performance of the Company’s payment
obligations under this Agreement, the calculation of amounts due to Yissum under this Agreement and of all financial information
provided in the Periodic Reports, provided that Yissum shall coordinate such inspection with the Company or Affiliate (as the
case may be) in advance. In addition, Yissum may require that the Company, through the Auditors, inspect during normal business
hours the books of account, records and other relevant documentation of any Sublicensees, to the extent relevant or necessary
for the sole purpose of verifying the performance of the Company’s payment obligations under this Agreement, the calculation
of amounts due to Yissum under this Agreement and of all financial information provided in the Periodic Reports, and the Company
shall cause such inspection to be performed. The Parties shall reconcile any underpayment or overpayment within 30 days after
the Auditors deliver the results of the audit. Any underpayment shall be subject to interest in accordance with the terms of Section
8.7 below. If the Parties cannot reach a reconciliation, either Party shall have the right to submit any dispute to an independent
international accounting firm for final resolution. In the event that any final resolution confirms any underpayment by the Company
to Yissum in respect of any year of the Agreement in an amount exceeding 5% of the amount actually paid by the Company to Yissum
in respect of such year, then the Company shall, in addition, pay the cost of such inspection. The expenses associated with the
engagement of the aforesaid international accounting firm shall be paid by the non-prevailing Party in such dispute.

 

		8.7.	Any sum of money due Yissum which is not duly paid on time
shall bear interest from the due date of payment until the actual date of payment at the rate of annual LIBOR plus 5% per annum
accumulated on a monthly basis.

 

    	 	18	 

     

    

 

		9.	Ownership

 

		9.1.	All right, title and interest in and to the Licensed Technology
vest and shall vest solely in Yissum, and the Company shall hold and make use of the rights granted pursuant to the License solely
in accordance with the terms of this Agreement.

 

		9.2.	All rights in the Development Results shall be solely owned
by the Company, except to the extent that an employee of the University, including, the Researcher, is considered an inventor
of a patentable invention arising from the Development Results, in which case such invention and all patent applications and/or
patents claiming such invention (“Joint Patents”) shall be owned jointly by the Company and Yissum, as appropriate.

 

		9.3.	[RESERVED]    

 

		10.	Patents

 

		10.1.	Yissum, in consultation with the Company, shall be responsible
for the filing, prosecution and maintenance of the Licensed Patents in the Territory, at the Company’s expense (the “Ongoing
Patent Expenses”). Each application and every patent registration shall be made and registered in the name of Yissum
or, should the law of the relevant jurisdiction so require, in the name of the relevant inventors and then assigned to Yissum.
The Company agrees to have Yissum’s patent counsel directly bill the Company for such expenses and shall directly pay such
bills in accordance with patent counsel’s directions. Notwithstanding the foregoing, Yissum agrees that in the event the
Company grants a Sublicense or upon the Company executing a merger, acquisition or similar transaction, whichever first occurs,
the Company shall have the right to notify Yissum that it desires to assume responsibility and decision-making for the filing,
prosecution and maintenance of the Licensed Patents in the Territory, subject to the Company complying with the remainder of the
provisions of this Article regarding consultation and payment (the “Patent Control Election”).

 

		10.2.	The Company undertakes and warrants that no amounts utilized
by the Company for such payment of Ongoing Patent Expenses or for the reimbursement of Yissum’s past documented expenses
and costs relating to the registration and maintenance of the Licensed Patents listed in Appendix A will be (i) funding
provided by the Israel Innovation Authority (the “IIA”); (ii) funding that is earmarked as supplementary funding
(“mimun mashlim”) for an IIA approved project; or funding provided to the Company from any other governmental
or regulatory institution of the State of Israel.

 

    	 	19	 

     

    

 

		10.3.	Subject to the above, the Parties shall consult and make
every effort to reach agreement in all respects relating to the manner of making applications for and registering the patents,
including the time of making the applications, the countries where applications will be made and all other particulars relating
to the registration and maintenance of the Licensed Patents. Notwithstanding the foregoing but subject to the Patent Control Election
set out in Section 10.2, Yissum reserves the sole right, acting in good faith, to make all final decisions with respect to the
preparation, filing, prosecution and maintenance of such patent applications and patents.

 

		10.4.	The Parties shall assist each other in all respects relating
to the preparation of documents for the registration of any patent or any patent-related right upon the request of the other Party.
Both Parties shall take all appropriate action in order to assist the other to extend the duration of a Licensed Patent or obtain
any other extension obtainable under law, to maximize the scope of the protection afforded by the Licensed Patents.

 

		10.5.	In the event that the Company is approached by a patent
examiner or attorney in connection with any matter that is the subject matter of this Agreement, it shall give Yissum immediate
notice of such approach. The Company shall only reply to such approaches after consultation with Yissum and subject to its consent,
unless otherwise advised by counsel that a response is mandatory.

 

		10.6.	The Company, shall mark, and shall cause its Affiliates
and Sublicensees to mark, all Products covered by one or more of the Licensed Patents with patent numbers (or the legend “patent
pending”) applicable to such Product. The Company shall ensure that its Sublicensee complies with the provisions of this
Section.

 

		10.7.	If at any time during the term of this Agreement the Company
decides that it is undesirable, as to one or more countries, to file, prosecute or maintain any patents or patent applications
within the Licensed Patents, it shall give at least 90 days written notice thereof to Yissum, and upon the expiration of the 90
day notice period (or such longer period specified in the Company’s notice) the Company shall be released from its obligations
to bear the expenses to be incurred thereafter as to such patent(s) or patent application(s). As of such time, such patent(s)
or application(s) shall be removed from the Licensed Technology and Yissum shall be free to grant rights in and to such patent(s)
or patent application(s) in such countries to third parties, without further notice or obligation to the Company, and the Company
shall have no rights whatsoever to exploit such patent(s) or patent application(s) or the KnowHow related thereto in such territories.
Notwithstanding the foregoing, the Company shall be required to bear the costs and expenses for filing, prosecuting and maintaining
the Licensed Patents in at least the following jurisdictions: United States, Canada, Japan, China, India, the United Kingdom,
Germany and France. (the “Required Jurisdictions”) and Yissum agrees to file and prosecute the Licensed Patents
in all such Required Jurisdictions and all additional jurisdictions which the Company requires, at the Company’s expense.
Should the Company fail to do bear the costs and expenses or take in action in respect of the filing, prosecution and maintenance
of the Licensed Patents in any one of the Required Jurisdictions, Yissum shall be entitled to terminate this Agreement subject
to providing the Company with advance notice of 60 days and provided further that the Company failed to remedy such failure during
such times, and without any need to compensate the Company in any manner.

 

    	 	20	 

     

    

 

		10.8.	The foregoing does not constitute an obligation, representation
or warranty, express or implied, on the part of Yissum that any patent or patent registration application will indeed be made
or registered or be registerable in respect of the Licensed Technology or any part thereof, nor shall it constitute an obligation,
representation, or warranty, express or implied, on the part of Yissum that a registered patent will be valid or afford any protection.
For the avoidance of doubt, nothing in this Agreement constitutes an obligation, representation or warranty, express or implied,
on the part of Yissum regarding the validity of or the protection afforded by any of the patents or patent registration applications
detailed in Appendix A or regarding the commercial exploitability or any other value of the Licensed Technology or that
the Licensed Technology will not infringe the rights of any third party.

 

		11.	Patent Rights Protection

 

		11.1.	The Company and Yissum shall each inform the other promptly
in writing of any alleged infringements by a third party of the Licensed Patents in the Territory, together with any available
written evidence of such alleged infringement.

 

		11.2.	To the extent permitted by applicable law, if the Company,
its Affiliate or any Sublicensee makes (directly or indirectly), any assertion, application or claim, or initiates or supports
(directly or indirectly) any action or proceeding, that challenges the validity, enforceability or scope of any of the Licensed
Patents (“Challenge Proceeding”), Yissum will have the right, at any time following the commencement of the Challenge
Proceeding, to terminate this Agreement and the Royalty rates specified in this Agreement will be tripled with respect to Net
Sales of Products that are sold, leased or otherwise transferred during the course of such Challenge Proceeding, and the percentage
due to Yissum in respect of Sublicense Consideration will be tripled with respect to Sublicense Consideration during such period;
provided, however, if a Sublicensee initiates a Challenge Proceeding, the Company shall have a 90-day period to enjoin the Sublicensee
from undertaking the proceeding. If the outcome of such Challenge Proceeding is a determination in favor of Yissum, (a) the Royalty
rate with respect to Net Sales of Products and the percentage due to Yissum with respect to Sublicense Consideration will remain
at such triple rate as aforesaid; and (b) Company will reimburse Yissum for all expenses incurred by Yissum (including reasonable
attorneys’ fees and court costs) in connection with such Challenge Proceeding. If the outcome of such Challenge Proceeding
is a determination in favor of Company, Company will have no right to recoup any Royalties or Sublicense Fees paid before or during
the course of such Challenge Proceeding.

 

    	 	21	 

     

    

 

		11.3.	The Company shall have the first right in its own name
and at its own expense to initiate any legal action and enforce the Licensed Patents against any infringement of such Licensed
Patents. Before the Company commences an action with respect to any infringement, the Company shall give careful consideration
to the views of Yissum in making its decision whether or not to initiate any legal action. The Company shall continuously keep
Yissum apprised of all developments in the action and shall continuously provide Yissum with full information and copies of all
material documents relevant to the proceedings, including, all documents filed with the courts by the parties to the legal action(s)
and all correspondence with the other parties to the proceedings, and shall seek Yissum’s input and approval on any substantive
submissions or positions taken in the litigation regarding the scope, validity or enforceability of the Licensed Patents.

 

If Yissum
shall determine that the legal actions taken by the Company may adversely affect Yissum’s rights hereunder, Yissum shall
be entitled to appoint its own counsel to represent it in such litigation at its expense. If the Company elects to commence an
action as described above and Yissum is a legally indispensable party to such action (being the registered owner of the infringed
patent rights), Yissum, at the Company’s expense, may be joined as a co-plaintiff, provided that all the following conditions
shall be fulfilled:

 

		(a)	the Company shall continuously provide Yissum with
full information and copies of all material documents relevant to the proceedings, including, all documents filed with the courts
by the parties to the legal action(s) and all correspondence with the other parties to the proceedings, as well as all drafts
of written submissions relating to such legal action that are sent to the Company for review, and all Yissum’s comments
in respect thereof will be taken into account;

 

		(b)	any out of pocket expenses incurred by the Company or Yissum in connection with such action(s),
including all legal and litigation related fees and expenses, all out of pocket expenses for external assistance required to comply
with any discovery or other motions and any costs or amounts awarded to the counterparties in such action(s) shall be borne by
the Company;

 

		(c)	if Yissum shall determine that a conflict of interest exists between the Company and Yissum, Yissum
shall be entitled, at its own expense, to appoint its own counsel to represent it in such litigation and the Company shall make
best efforts to ensure that such counsel chosen by Yissum is fully informed and receives all material necessary to adequately participate
in such action; and

 

		(d)	the Company shall bear all costs, expenses and awards incurred by or awarded against Yissum, with
respect to any action filed against Yissum alleging that an action initiated by the Company pursuant to the terms of this Section
11 was anticompetitive, malicious, or otherwise brought for an improper purpose, whether by a counterparty to such aforementioned
action or by any third party.

 

    	 	22	 

     

    

 

If
Yissum is not required by law to be joined as a co-plaintiff, Yissum, to the extent permitted by law, and at its own cost,
may elect to join the action as a co-plaintiff at its own initiative and shall jointly control the action with the Company.
Irrespective of whether Yissum joins any such action as described above it shall provide reasonable cooperation to the
Company.

 

The Company shall reimburse Yissum for any reasonable costs it incurs as part of an action brought pursuant to this
Section where Yissum has not elected to join the action as a co-plaintiff at its own initiative.

 

		11.4.	If the Company does not bring an action against an
alleged infringer pursuant to Section 11.3, above, or has not commenced negotiations with said infringer for discontinuance of
said infringement within 180 days after learning of said infringement, Yissum shall have the right, but not the obligation, to
bring an action for such infringement at its own expense, and retain all proceeds from such action. If the Company has commenced
negotiations with said infringer for the discontinuance of said infringement within such 180- day period, the Company shall have
an additional period of 90 days from the end of the first 180-day period to conclude its negotiations before Yissum may bring
an action for said infringement.

 

		11.5.	No settlement, consent judgment or other voluntary disposition of an infringement suit may be entered
without the consent of Yissum, which consent shall not be unreasonably withheld, conditioned or delayed, provided, however,
that where the aforementioned settlement, judgment or disposition does not have any bearing on Yissum or the Licensed Technology
such consent shall not be required. For the avoidance of doubt and notwithstanding anything to the contrary herein, should Yissum
bring an action as set forth in Section 11.4 above, it shall have the right to settle such action by licensing the Licensed Technology,
or part of it, to the alleged infringer unless the grant of such license would affect, limit or restrict the License granted pursuant
to this Agreement in which case the Company’s consent shall be required, which consent shall not be unreasonably withheld,
conditioned or delayed.

 

		11.6.	Any award or settlement payment resulting from an action initiated by the Company pursuant to this
Section 11 shall be utilized, first to effect reimbursement of documented out-of-pocket expenses incurred by both Parties in relation
to such legal action, and thereafter shall be paid to the Company and shall be deemed Sublicense Consideration received under this
Agreement, in respect of which Sublicense Fees shall be due to Yissum.

 

		11.7.	If either Party commences an action and then decides to abandon it, such Party will give timely
notice to the other Party. The other Party may continue the prosecution of the suit after both Parties agree on the sharing of
expenses.

 

    	 	23	 

     

    

 

		11.8.	The Company shall use its best efforts at its own expense to defend any action, claim or demand
made by any entity against the Company or Yissum in connection with rights in the Licensed Technology, and shall indemnify and
hold harmless Yissum and the other Indemnitees (defined in Section 14.4 below) from and against all losses, damages and expenses
arising in such regard. Each Party shall notify the other immediately upon learning of any such action, claim or demand as aforesaid.

 

		12.	Confidentiality

 

		12.1.	For the purposes of this Agreement (i) “Yissum
Confidential Information” means this Agreement and the terms hereof and any and all reports, details, data, formulations,
solutions, designs, and inventions and other information disclosed to the Company or any of its Representatives by Yissum or any
of Yissum’s Representatives in connection with the Licensed Technology, Yissum, the University, the Researcher and other
Representatives of Yissum and/or the University, whether in written, oral, electronic or any other form, except and to
the extent that that any such information: (a) was known to the Company at the time it was disclosed, other than by previous disclosure
by or on behalf of Yissum, as evidenced by the Company’s written records at the time of disclosure; (b) is in the public
domain at the time of disclosure or becomes part of the public domain thereafter other than as a result of a violation by the
Company or any of its Representatives of the confidentiality obligations herein; (c) is lawfully and in good faith made available
to the Company by a third party who is not subject to obligations of confidentiality with respect to such information; or (d)
is independently developed by the Company without the use of Yissum Confidential Information, as demonstrated by documentary evidence;
and (ii) “Company Confidential Information” means this Agreement and the terms hereof and any and all reports,
details, data, formulations, solutions, designs, and inventions and other information disclosed by or on behalf of the Company
under this Agreement, whether in written, oral, electronic or any other form, except and to the extent that any such information:
(a) was known to Yissum or the University at the time it was disclosed, other than by previous disclosure by or on behalf of the
Company, as evidenced by Yissum’s or the University’s written records at the time of disclosure; (b) is in the public
domain at the time of disclosure or becomes part of the public domain thereafter other than as a result of a violation by Yissum
or its Representatives of the confidentiality obligations herein; (c) is lawfully and in good faith made available to Yissum or
the University by a third party who is not subject to obligations of confidentiality with respect to such information; or (d)
is independently developed by Yissum or the University without the use of the Company Confidential Information, as demonstrated
by documentary evidence.

 

    	 	24	 

     

    

 

		12.2.	The Company undertakes that during the term of this Agreement
and for a period of five (5) years subsequent thereto, it shall maintain full and absolute confidentiality of and shall not use
the Yissum Confidential Information other than for the purposes of this Agreement. The Company undertakes not to convey or disclose
any of the Yissum Confidential Information to any third party without the prior written permission of Yissum. The Company shall
be liable for its officers or employees or other Representatives maintaining absolute confidentiality of and not using or disclosing
the Yissum Confidential Information except as expressly provided herein. The Company shall treat such Yissum Confidential Information
with the same degree of care and confidentiality that it maintains or protect its own confidential information, but in any event,
no less than a reasonable degree of care and confidentiality.

 

		12.3.	Notwithstanding the foregoing, the Company may only disclose
the Yissum Confidential Information:

 

		(a)	to those of its Representatives who have a “need
to know” such information as necessary for the exercise of its rights and/or performance of its obligations hereunder, provided
that such Representatives are legally bound by agreements which impose similar confidentiality and non-use obligations to those
set out in this Agreement. The Company shall be responsible for ensuring that its Representatives abide by such undertakings of
confidentiality; and

 

		(b)	to any potential third party investor, including, any government, public foundation and/or private
foundation, in connection with seeking potential funding for the Company, provided that such potential third party investor has
executed a confidentiality and non-use agreement which imposes similar obligations to those set out in this Agreement or is otherwise
subject to comparable binders of confidentiality and non-use; and

 

		(c)	to any competent authority for the purposes of obtaining any approvals or permissions required
for the exercise of the License and/or the implementation of this Agreement, or in the fulfillment of a legal duty owed to such
competent authority (including a duty to make regulatory filings or to comply with any other reporting requirements); and

 

to the extent
required to be disclosed under any law, rule, regulation, court, or order of any competent authority, provided that the Company
promptly notifies Yissum thereof in order to enable Yissum to seek an appropriate protective order or other reliable assurance
that confidential treatment will be accorded to such information (with the Company’s assistance, if necessary), and such
disclosure shall be made to the minimum extent required.

 

    	 	25	 

     

    

 

		12.4.	Yissum undertakes that during the term of this Agreement
and for a period of five (5) years subsequent thereto, it shall maintain in confidence, and shall not use the Company Confidential
Information other than for the purposes of this Agreement. Yissum undertakes not to convey or disclose any of the Company Confidential
Information to any third party without the prior written permission of the Company. Yissum shall treat such Company Confidential
Information with the same degree of care and confidentiality that each of them maintains and protects its own confidential information,
but in any event, no less than a reasonable degree of care and confidentiality.

 

		12.5.	Notwithstanding the foregoing, Yissum may only disclose the Company Confidential Information:

 

		(a)	to the University and to those of the Representatives of
Yissum and/or the University who have a “need to know” such information as necessary for the exercise of Yissum’s
rights and/or performance of Yissum’s obligations hereunder, provided that such Representatives are legally bound by agreements
which impose similar confidentiality and non-use obligations to those set out in this Agreement; and

 

		(b)	to any competent authority in connection with the filing and prosecution of patent applications
relating to the Licensed Technology, or in the fulfillment of a legal duty owed to any competent authority; and

 

		(c)	to the extent required to be disclosed under any law, rule, regulation, court, or order of any
competent authority, provided that Yissum promptly notifies the Company thereof in order to enable the Company to seek an appropriate
protective order or other reliable assurance that confidential treatment will be accorded to such information (with Yissum’s
assistance, if necessary), and such disclosure shall be made to the minimum extent required.

 

		12.6.	The Company shall be responsible and liable to Yissum for
any breach by its Representatives, Affiliates, Subcontractors, Sublicensees and investors of the undertakings of confidentiality
set forth in this Section 12 as if such breach were a breach by the Company itself.

 

		12.7.	Yissum shall be responsible and liable to the Company for
any breach by it, the University, the Researcher or their employees of the undertakings of confidentiality set forth in this Section
12.

 

		12.8.	Without prejudice to the foregoing, the Company shall not
mention the name of the University, Yissum or the Researcher, unless required by law, in any manner or for any purpose in connection
with this Agreement, the subject of the Research or any matter relating to the Licensed Technology, without obtaining the prior
written consent of Yissum; provided, however, the limitation set forth herein shall not apply as provided in Section 12.10.
below.

 

    	 	26	 

     

    

 

		12.9.	Neither Party shall issue any press release or other media
statement regarding the terms of this Agreement or any developments of the Licensed Technology without the prior written approval
of the other Party, except as provided in Section 12.10 hereof.

 

		12.10.	Notwithstanding any provision herein to the contrary, the
Company shall have the right to mention the name of the University, Yissum and the Researcher and disclose information regarding
the Licensed Technology, including without limitation, the existence of this Agreement, the subject matter of this Agreement,
any published Licensed Patents, the subject of any Research or any general, non-confidential information relating to the Licensed
Technology, without obtaining Yissum’s prior consent, in connection with any securities filings, any capital raising efforts
and for public information purposes including press releases, industry conferences and media interviews.

 

		12.11.	The provisions of this Section shall be subject to permitted publications pursuant to Section 13
below.

 

		13.	Publications

 

		13.1.	Yissum shall ensure that no publications in writing, in
scientific journals or orally at scientific conventions relating to the Licensed Technology, the Development Plan, or the Product,
which are subject to the terms and conditions of this Agreement, are published by it or the Researcher, without first seeking
the consent of the Company.

 

		13.2.	The Company undertakes to reply to any such request for
publication by Yissum within 30 days of its receipt of a request in connection with the publication of articles in scientific
journals, and within 15 days of its receipt of a request in connection with article abstracts. The Company may only decline such
a request upon reasonable grounds, which shall be fully detailed in writing, requiring the postponement of such publication because
it contains patentable subject matter for which patent protection should be sought, the removal of any Company Confidential Information
other than the publication of Research Results.

 

		13.3.	Should the Company decide to object to publication as provided
in subSection 13.2, the publication shall be postponed for a period of not more than three (3) months from the date the publication
was sent to the Company, provided the Company’s objections to publication are adequately addressed.

 

		13.4.	The provisions of this Section 13 shall not prejudice any
other right, which Yissum has pursuant to this Agreement or at law.

 

    	 	27	 

     

    

 

		14.	Liability and Indemnity

 

		14.1.	TO THE EXTENT PERMITTED BY THE APPLICABLE LAW, YISSUM MAKES
NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, WITH RESPECT TO THE LICENSED TECHNOLOGY. IN PARTICULAR, YISSUM
MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE USE OF THE LICENSED
TECHNOLOGY WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK OR OTHER RIGHTS OF ANY THIRD PARTY. IN ADDITION, NOTHING IN THIS
AGREEMENT MAY BE DEEMED A REPRESENTATION OR WARRANTY BY YISSUM AS TO THE VALIDITY OF ANY OF THE LICENSED PATENTS OR THEIR REGISTRABILITY
OR OF THE ACCURACY, SAFETY, EFFICACY, OR USEFULNESS, FOR ANY PURPOSE, OF THE LICENSED TECHNOLOGY. YISSUM HAS NO OBLIGATION, EXPRESS
OR IMPLIED, TO SUPERVISE, MONITOR, REVIEW OR OTHERWISE ASSUME RESPONSIBILITY FOR THE PRODUCTION, MANUFACTURE, TESTING, MARKETING
OR SALE OF ANY PRODUCT. TO THE EXTENT PERMITTED BY APPLICABLE LAW, NEITHER YISSUM NOR THE RESEARCHER, NOR THE UNIVERSITY, NOR
THE REPRESENTATIVES OF YISSUM AND/OR OF THE UNIVERSITY SHALL HAVE ANY LIABILITY WHATSOEVER TO THE COMPANY OR TO ANY THIRD PARTY
FOR OR ON ACCOUNT OF ANY INJURY, LOSS, OR DAMAGE, OF ANY KIND OR NATURE WHETHER DIRECT OR INDIRECT, SUSTAINED BY THE COMPANY OR
BY ANY THIRD PARTY, FOR ANY DAMAGE ASSESSED OR ASSERTED AGAINST THE COMPANY, OR FOR ANY OTHER LIABILITY INCURRED BY OR IMPOSED
UPON THE COMPANY OR ANY OTHER PERSON OR ENTITY, DIRECTLY OR INDIRECTLY ARISING OUT OF OR IN CONNECTION WITH OR RESULTING FROM
THIS AGREEMENT AND/OR THE EXERCISE OF THE LICENSE, INCLUDING, (i) THE PRODUCTION, MANUFACTURE, USE, PRACTICE, LEASE, OR SALE OF
ANY PRODUCT; (ii) THE USE OF THE LICENSED TECHNOLOGY; OR (iii) ANY ADVERTISING OR OTHER PROMOTIONAL ACTIVITIES WITH RESPECT TO
ANY OF THE FOREGOING.

 

		14.2.	IN NO EVENT
SHALL YISSUM, THE RESEARCHER, THE UNIVERSITY, OR THE REPRESENTATIVES OF YISSUM AND/OR OF THE UNIVERSITY BE LIABLE TO THE COMPANY
OR ANY OF ITS AFFILIATES OR TO ANY THIRD PARTY FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES
(INCLUDING, LOST PROFITS, BUSINESS OR GOODWILL) SUFFERED OR INCURRED BY THE COMPANY OR ITS AFFILIATES OR ANY THIRD PARTY, WHETHER
BASED UPON A CLAIM OR ACTION OF CONTRACT, WARRANTY, NEGLIGENCE OR TORT, OR OTHERWISE, ARISING OUT OF THIS AGREEMENT.

 

    	 	28	 

     

    

 

		14.3.	The Company shall be liable for any loss, injury or damage
whatsoever caused directly or indirectly to or suffered by its employees or any Representatives of Yissum or the University (including
the Researcher and his/her team), or to any third party by reason of the Company’s acts or omissions pursuant to this Agreement
or by reason of any use made by the Company, its Representatives, Affiliates, Subcontractors, and the Sublicensees and their respective
business associates and customers of the Licensed Technology, the Development Results or any Product or exercise of the License.

 

		14.4.	The Company undertakes to indemnify, defend and hold harmless
Yissum, the University, and any of their respective Representatives (including the Researcher and his/her team) (herein referred
to jointly and severally as “Indemnitees”) from and against any third party claim, investigation or liability
including, product liability, damage, loss, costs and expenses, including legal costs, attorneys’ fees and litigation expenses,
incurred by or imposed upon the Indemnitees by reason of any acts or omissions of the Company, its Representatives, Affiliates,
Subcontractors, and the Sublicensees, or which derive from the development, manufacture, marketing, sale, use or other exploitation,
or sublicensing (as applicable) of any Product, or Licensed Technology, or the exercise of the License (a “Claim”).

 

If any Indemnitee
receives notice of any Claim, the Indemnitee shall, as promptly as is reasonably possible, give the Company notice thereof. Yissum
and the Company shall consult and cooperate with each other regarding the response to and the defense of any such Claim and the
Company shall, upon its acknowledgment in writing of its obligation to indemnify the Indemnitee, be entitled to and shall assume
the defense or represent the interests of the Indemnitee in respect of such Claim, that shall include the right to select and direct
legal counsel and other consultants to appear in proceedings and to propose, accept or reject offers of settlement, all at its
sole cost; provided, however, that no such settlement shall be made without the written consent of the Indemnitee, such
consent not to be unreasonably withheld, conditioned or delayed. Nothing herein shall prevent the Indemnitee from retaining its
own counsel and participating in its own defense at its own cost and expense.

 

The Company
shall ensure that its Sublicensees shall provide undertakings of indemnification which shall also be given also in favor of, and
shall be actionable by Yissum, the University and any director, officer or employee of Yissum or of the University, and by the
Researcher.

 

    	 	29	 

     

    

 

		14.5.	Within thirty days of the Effective Date, the Company shall
procure and maintain, at its sole cost and expense, policies of commercial general liability insurance reasonable commensurate
with the nature of its business, stage of development, and in amounts that are customary in the industry for similar circumstances.
Such policy shall name Yissum and the University as additional insureds. The policy or policies so issued shall include a “crossliability”
provision pursuant to which the insurance is deemed to be separate insurance for each named insured (without right of subrogation
as against any of the insured under the policy, or any of their representatives, employees, officers, directors or anyone in their
name). If the Company elects to self-insure all or part of the limits described above (including deductibles or retentions which
are in excess of a $250,000 annual aggregate), such self-insurance program shall include assets or reserves which have been actuarially
determined for the liabilities associated with this Agreement and must be reasonably acceptable to Yissum.

 

The minimum
amounts of insurance coverage required above shall not be construed to create a limit of the Company’s liability with respect
to its indemnification obligations under this Section 14.

 

		14.6.	The Company shall provide Yissum with written evidence
of such insurance upon request. The Company shall provide Yissum with written notice at least 15 days prior to the cancellation,
non-renewal or material change in such insurance. If the Company does not obtain replacement insurance providing comparable coverage
within such 15-day period, Yissum shall have the right to terminate this Agreement effective at the end of such 15 day period
without notice or any additional waiting periods.

 

		14.7.	The Company shall maintain, at its own expense, liability
insurance as set forth in Section 14 above, beyond the expiration or termination of this Agreement as long as a Product relating
to or developed pursuant to this Agreement is being commercially distributed or sold by the Company, an Affiliate or a Sublicensee,
and thereafter as required by applicable laws.

 

		15.	Termination of the Agreement

 

		15.1.	Unless otherwise agreed by the Parties in writing, this
Agreement shall terminate upon the occurrence of the later of the following: (i) the date of expiry of the last of the Licensed
Patents anywhere in the Territory; (ii) the date of expiration of the last exclusivity on a Product granted by a regulatory or
government body within the Territory; (iii) the expiry of a continuous period of 20 years during which there shall not have been
a First Commercial Sale of any Product in any country in the Territory; and (iv) if the Company elects to obtain an exclusive
license to the Know-How pursuant to Section 4 above - the date of expiry of the period of such exclusive license.

 

		15.2.	Without prejudice to the Parties’ rights pursuant
to this Agreement or at law, either Party may terminate this Agreement by written notice to the other in any of the following
cases:

 

		15.2.1	immediately upon such written notice, if: (i) the other
Party passes a resolution for voluntary winding up or a winding up application is made against it and not set aside within 60
days; or (ii) a receiver or liquidator is appointed for the other Party; or (iii) the other Party enters into winding up or insolvency
or bankruptcy proceedings. Each of the Parties undertakes to notify the other within seven (7) days if any of the abovementioned
events occur; or

 

    	 	30	 

     

    

 

		15.2.2	upon breach of this Agreement, where such breach has not
been remedied within 30 days from the breaching Party’s receipt of written notice from the non-breaching Party requiring
such remedy. Notwithstanding the foregoing, in the event that any breach is not susceptible of cure within the stated period and
the breaching party uses diligent good faith efforts to cure such breach, the stated period will be extended by a reasonable additional
period of time to effect a cure, to be mutually agreed by the Parties.

 

		15.3.	In addition to the above, and without prejudice to Yissum’s
rights pursuant to this Agreement or at law, Yissum shall be entitled to terminate this Agreement immediately upon written notice
to the Company in the following circumstances:

 

		15.3.1	failure to meet a Development Milestone in accordance with
Section 5.5;

 

		15.3.2	if an attachment is made over the Company’s assets
or if execution proceedings are taken against the Company and the same are not set aside within 30 days of the date the attachment
is made or the execution proceedings are taken or the Company seeks protection under any laws or regulations, the effect of which
is to suspend or impair the rights of any or all of its creditors, or to impose a moratorium on such creditors and such act is
not cancelled within 30 days of the performance thereof;

 

		15.3.3	uncured lapse of insurance coverage under Section 14 above;

 

		15.3.4	failure to defend against third party claims as required
under Section 11 above;

 

		15.3.5	if the Company, its Affiliate or a Sublicensee initiates,
supports or makes a Challenge Proceeding as detailed in Section 11.2 above subject to the Company’s rights to enjoin any
such proceeding initiated by a Sublicensee as set forth in Section 11.2.

 

		15.4.	The Company may terminate this Agreement upon 60 days’
prior written notice to Yissum.

 

    	 	31	 

     

    

 

		15.5.	Upon termination of this Agreement for any reason other
than the expiration of its term, the License shall terminate, the Licensed Technology and all rights included therein shall revert
to Yissum, and Yissum shall be free to enter into agreements with any other third parties for the granting of a license or to
deal in any other manner with such right as it shall see fit at its sole discretion. Notwithstanding the foregoing, any existing
agreements that contain a Sublicense of the Licensed Technology shall terminate to the extent of such sublicense; provided,
however, that, for each Sublicensee, upon termination of the sublicense agreement with such Sublicensee, and provided that
the Sublicensee is not then in breach of its Sublicense agreement Yissum shall be obligated, at the request of such Sublicensee,
to enter into a new license agreement with such Sublicensee on substantially the same terms as those contained in such Sublicense
agreement, provided that such terms shall be amended, if necessary, to the extent required to ensure that such sublicense
agreement does not impose any obligations or liabilities on Yissum which are not included in this Agreement.

 

The Company
shall return or transfer to Yissum, within 30 days of termination of the License, all material, in soft or hard copy, relating
to the Licensed Technology or Products connected with the License, and it may not make any further use thereof. In case of termination
as set out herein, the Company will not be entitled to any reimbursement of any amount paid to Yissum under this Agreement. Yissum
shall be entitled to conduct an audit in order to ascertain compliance with this provision and the Company agrees to allow access
to Yissum or its representatives for this purpose.

 

		15.6.	The Company will prepare and present all regulatory filings
necessary or appropriate in any country and will obtain and maintain any regulatory approval required to market Products in any
such country, at all its own expense. Company will solely own all right, title and interest in and to all such regulatory approvals
and filings; provided, however, that (1) Company will provide copies thereof to Yissum on an on-going basis; and (2) without
derogating from Company’s assignment undertaking in this Section 15.6 below, upon termination of the License (in whole or
in part), Company agrees that Yissum shall have the right, on its own or via third parties, to reference, cross-reference, review,
have access to, incorporate and use all documents and other materials filed by or on behalf of Company and its Affiliates with
any regulatory authority in furtherance of applications for regulatory approval in the relevant country with respect to Products.

 

Upon the termination
of the Agreement for any reason other than the expiration of its term or due to an uncontested, uncured breach by Yissum (as set
forth in Section 15.2.2 above), the Company shall transfer and assign to Yissum all of the Development Results and any information
and documents, in whatever form, relating thereto, including any data, results, regulatory information (including applications,
registrations, licenses, authorizations, approvals and all clinical studies, tests, and manufacturing batch records relating to
a Product, and all data contained in any of the foregoing) and files that relate to the Licensed Technology or the Product(s) (collectively,
the “Assigned Development Results”). The Company shall fully cooperate with Yissum to effect such transfer and
assignment and shall execute any document and perform any acts required to do so.

 

    	 	32	 

     

    

 

In the event
that the Development Results transferred and assigned to Yisum shall be licensed to a third party and shall generate license fees
and/or royalties and/or sublicense fees to Yissum or Yissum’s designate or any assignee, then Yissum shall pay to the Company
25% of the Net Proceeds (as defined below) actually received by Yissum or Yissum’s designate or any assignee in respect of
such license to such third party, until such time as the Company shall have received, in aggregate, the full amount of the documented
out-of-pocket expenses actually incurred by the Company pertaining to the Development Results, less any amounts received or receivable
by the Company from third parties in connection with the Licensed Technology or Development Results prior to the transfer and assignment
of the Development Results to Yissum, as certified by external independent auditors agreed upon by the Parties (the “Development
Reimbursement”). Yissum shall pay to the Company amounts, if any, payable under this provisions within 30 days of receipt
of the relevant Net Proceeds. For the purpose of this section, “Net Proceeds” means royalties or license fees
actually received by Yissum or Yissum’s designate or any assignee in respect of such license with a third party (excluding
funds for research and/or development at the University, or payments for the supply of services) after deduction of unreimbursed
costs and expenses resulting from the termination of this Agreement, including without limitation unreimbursed patent costs.

 

Without derogating
from the force and effect of the foregoing assignment undertaking, the Parties acknowledge and agree that if under applicable law
the aforesaid assignment undertaking will not be fully enforceable, then the part (if any) of such undertaking which is enforceable
shall remain in full force and effect, and the part (or whole) which is not enforceable shall be automatically replaced with an
irrevocable grant by the Company to Yissum, binding upon all of the Company’s acquirers, successors and assignees, of an
unrestricted, perpetual, irrevocable, worldwide, royalty-free, license to use, exploit, transfer and sublicense (on a multi-tier
basis) the Assigned Development Results, for any and all purposes and uses. To the extent permitted by applicable law, such license
will be exclusive.

 

Notwithstanding
anything to the contrary in Section 11 (Confidentiality) or elsewhere in this Agreement, Yissum (on its own or via third parties)
shall be entitled to freely exploit the Assigned Development Results without any obligation of confidentiality to the Company.

 

Notwithstanding the foregoing,
neither the termination of this Agreement for any reason nor the expiration of the License shall release the Company from its
obligation to carry out any financial or other obligation which it was liable to perform prior to the Agreement’s termination
or the License’s expiration. In the event that the Company terminates this Agreement, it shall be required to continue paying
all Ongoing Patent Expenses for those Licensed Patents in existence on the date of notice of such termination, including expenses
incurred by reason of examinations and extensions, for six (6) months following the effective date of such termination; provided
such expenses are included as part of the Development Reimbursement. In addition, Sections 7, 8, 9, 12, 14, 15, 16 and 18 shall
survive the termination of this Agreement to the extent required to effectuate the intent of the Parties as reflected in this
Agreement.

 

    	 	33	 

     

    

 

		16.	Law

 

		16.1.	The provisions of this Agreement and everything concerning
the relationship between the Parties in accordance with this Agreement shall be governed exclusively by Israeli law without application
of any conflict of law principles that direct that the laws of another jurisdiction apply and jurisdiction shall be granted to
the competent court in Jerusalem exclusively, except that Yissum may bring suit against the Company in any other jurisdiction
outside the State of Israel in which the Company has assets or a place of business. The Company undertakes not to object to the
enforcement against it of writs and decisions issued by any other jurisdiction outside the State of Israel under such circumstances.
The Company hereby waives any immunity it may have against enforcement of any judgment so obtained against it by Yissum and waives
any rights or claims that it may have with respect to forum non-conveniens.

 

		16.2.	Each Party agrees that any breach or threatened breach
of the terms and conditions of this Agreement governing confidentiality or the exploitation and use of the Licensed Technology
may cause irreparable harm, that may be difficult to ascertain and that monetary damages may not afford an adequate remedy. Accordingly,
in addition to all other rights and remedies that may be available to the non-breaching Party under this Agreement or by law,
such Party shall be entitled to seek, in the courts and under the law mutually agreed to in Section 16.1 above, injunctive relief
without proof of damages.

 

		17.	Miscellaneous

 

		17.1.	Relationship of the Parties. It is hereby agreed
and declared between the Parties that they shall act in all respects relating to this Agreement as independent contractors and
there neither is nor shall there be any employeremployee or principal-agent relationship or partnership relationship between the
Company (or any of its employees) and Yissum. Each Party will be responsible for payment of all salaries and taxes and social
welfare benefits and any other payments of any kind in respect of its employees and officers, regardless of the location of the
performance of their duties, or the source of the directions for the performance thereof.

 

		17.2.	Assignment. No Party may transfer or assign or endorse
its rights, duties or obligations pursuant to this Agreement to another, without the prior written consent of the other Parties,
which consent shall not be unreasonably denied, conditioned or delayed, except that each Party may, without such consent, assign
this Agreement and the rights, obligations and interests of such Party, in whole or in part, to any of its Affiliates, to any
purchaser of all or substantially all of its assets, or to any successor corporation resulting from any merger or consolidation
of such Party with or into such corporation provided in each case that such assignee agrees to be bound in writing by the terms
and conditions of this Agreement .

 

    	 	34	 

     

    

 

		17.3.	No waiver. No waiver by any Party, whether express
or implied, of its rights under any provision of this Agreement shall constitute a waiver of such Party’s rights under such
provisions at any other time or a waiver of such Party’s rights under any other provision of this Agreement. The failure
or delay of a Party to claim the performance of an obligation of another Party shall not be deemed a waiver of the performance
of such obligation or of any future obligations of a similar nature.

 

		17.4.	Representation by Legal Counsel. Each Party represents
that it has been represented by legal counsel in connection with this Agreement and acknowledges that it has participated in drafting
this Agreement. In interpreting and applying the terms and provisions of this Agreement, the Parties agree that no presumption
shall exist or be implied against the Party which drafted such terms and provisions.

 

		17.5.	Legal Costs. Each Party shall bear its own legal
expenses involved in the negotiation and drafting of this Agreement.

 

		17.6.	Disclosure of Agreements with Researcher. The Company
shall disclose to Yissum any existing agreement or arrangement of any kind with the Researcher and or any representative of the
Researcher, and shall not enter into any such agreement or arrangement without the prior written consent of Yissum.

 

		17.7.	Taxes. Monetary amounts mentioned in this agreement
do not include value added tax (“VAT”), or any duties or other taxes.

 

		17.8.	Severability. The provisions of this Agreement are
severable and, in the event that any one or more of the provisions or part of a provision contained in this Agreement shall, for
any reason, be held by any court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement; but such provision
shall be modified as set out below and the balance of this Agreement shall be interpreted as if such provision were so modified.
The Parties shall negotiate in good faith in order to agree on the terms of an alternative provision which complies with applicable
law and achieves, to the greatest extent possible, the same effect as would have been achieved by the invalid, illegal or unenforceable
provision. In the event that the Parties fail to agree within 30 days, the head of the Israeli Bar Association (on his/her own
or via a representative that he/she appoints) (“Deciding Expert”) will determine the text of the alternative
provision, and each Party shall bear its own costs and the Parties shall equally bear the fees and expenses of the Deciding Expert.
Each Party agrees that the determination of the Deciding Expert will be non-appealable, final and binding.

 

    	 	35	 

     

    

 

		17.9.	Force Majeure. Neither Party shall be held liable
or responsible to the other Party nor be deemed to have defaulted under or breached the Agreement for failure or delay in fulfilling
or performing any term of this Agreement to the extent, and for so long as, such failure or delay is caused by or results from
causes beyond the reasonable control of the affected Party and without fault of such Party, including fires, earthquakes, floods,
embargoes, wars, acts of war (whether war is declared or not), insurrections, riots, civil commotions, strikes, lockouts or other
labor disturbances (except of such Party’s personnel), acts of God or acts, omissions or delays in acting by any governmental
authority provided that the non-performing Party uses commercially reasonable efforts to avoid or remove such causes of nonperformance
and continues performance under this Agreement with reasonable dispatch whenever such causes are removed. The Party affected by
such circumstances shall promptly notify the other Party in writing when such circumstances cause a delay or failure in performance
and when they cease to do so.

 

		17.10.	Counterparts. This Agreement may be executed in
any number of counterparts (including counterparts transmitted by facsimile and by electronic mail), each of which shall be deemed
an original, but all of which taken together shall be deemed to constitute one and the same instrument.

 

		17.11.	Binding Effect. This Agreement shall be binding
upon the Parties once executed by both Parties and shall enter into force and become effective as of the Effective Date.

 

		17.12.	Entire Agreement. This Agreement constitutes the
full and complete agreement between the Parties and supersedes any and all agreements or understandings, whether written or oral,
concerning the subject matter of this Agreement, and may only be amended by a document signed by both Parties.

 

		18.	Notices

 

All notices
and communications pursuant to this Agreement shall be made in writing and sent by facsimile, electronic mail or by registered
mail or served personally at the following addresses:

 

To Yissum
at:

 

Yissum Research
Development Company of the Hebrew University of Jerusalem Ltd.

P.O. Box
39135,

Jerusalem
91390

Israel

Facsimile:
972-2-6586689

Email: bob.trachtenberg@yissum.co.il

 

    	 	36	 

     

    

  

To the Company
at:

 

Scopus BioPharma
Inc.

420 Lexington
Avenue, Suite 300

New York,
New York 10170 Email:

 

or such other
address furnished in writing by one Party to the other. Any notice served personally shall be deemed to have been received on the
day of service, any notice sent by registered mail as aforesaid shall be deemed to have been received seven (7) days after being
posted by prepaid registered mail. Any notice sent by facsimile or electronic mail shall be deemed to have been received by the
next business day after receipt of confirmation of transmission (provided that any notice terminating this Agreement which is sent
by electronic mail shall be followed by a notice sent in any other manner provided herein).

 

IN WITNESS
WHEREOF THE PARTIES HAVE SET THEIR HANDS

 

	YISSUM	 	THE COMPANY
	 	 	 
	By:	/s/ Shani Bullock	 	By:	/s/ Morris Laster, MD
	 	 	 	 	 
	Name:     	Shani Bullock	 	Name:     	Morris Laster, MD
	 	 	 	 	 
	Title:	VP Business Developement
    Healthcare Yissum	 	Title:	CEO
	 	 	 	 	 
	Date:	August 14, 2019	 	Date:	August 8, 2019

 

I the
undersigned, Dr. Dmitry Tsvelikhovsky, have reviewed, am familiar with and agree to all of the above terms and conditions. I hereby
undertake to cooperate fully with Yissum in order to ensure its ability to fulfill its obligations hereunder, as set forth herein.

 

	/s/ Dmitry Tsvelikhovsky	 	August 14, 2019
	Dr. Dmitry Tsvelikhovsky,	 	Date signed

 

    	 	37	 

     

    

 

APPENDIX
A

 

KNOW-HOW

 

Synthesis
of CBD:                                                                               

 

	
         

         

         

         

         

         

         

         

         

 

To
a solution of                       
(       ml) was added        (      
g,        equiv.) in small portions at       
oC under stirring, followed by slowly additon of                            
 (       ml). The above mixture of
oxidant was added           to a
mixture of                    (      
g,               )
in                          (                               .
The solution was stirred at                                                                  
        . The mixture was quenched with water and solution of                    (                                
           . Further extracted with                           times
and washed with                    to
remove residual of                   .
The combined organic extracts were dried over             ,
filtered, and concentrated under vacuum. Purification of the crude product by                                                        (                         in             )
yielded pure                    (      
g,       ) as a                    oil.

 

Synthesis
of THCV:                                                                   

 

	
         

         

         

         

         

         

         

         

         

 

                  ,                  
(      ;       
g,        equiv.),                               
(             
g,        equiv.),                   
 (       g,       
equiv.),                   
(       mg,       
mol%) and             
(       mg,       
equiv.) were mixed together in        (      
mL) at        oC. After       
h the solution was filtered on             
with             ,
and evaporated to             
volume. The mixture was extracted with saturated solution of                   
(to remove                         
) and the aqueous layer was washed with             
                times. The combined organic
extracts were dried over             ,
filtered, and concentrated under high vacuum. Purification of the crude product by                                                       
(                   
in             )
yielded                                     
with traces of             
(       g,             
yield,             
oil), which was used as is for the next step.

 

    	 	38	 

     

    

 

LICENSED
PATENTS

 

		6639	Optimizations for synthesis of dimethoxypropylbenzene in preparation process of THCV- Under filling

		6640	Optimizations for synthesis of isopiperitinol in preparation process of CBD- Under filling

 

	YISSUM	 	THE COMPANY
	 	 	 
	By:	/s/ Shani Bullock	 	By:	/s/ Morris Laster, MD
	 	 	 	 	 
	Name:     	Shani Bullock	 	Name:     	Morris Laster, MD
	 	 	 	 	 
	Title:	VP Business Development
    Healthcare Yissum	 	Title:	CEO
	 	 	 	 	 
	Date:	August 14, 2019	 	Date:	August 8, 2019

 

    	 	39	 

     

    

 

Appendix
B THE DEVELOPMENT PLAN (For Regulated Products) 

 

CBG +THCV
Derivatives and CBD Hybrid Molecules

 

Scopus Biopharma will
take the CBG+THCV derivatives along with the CBD hybrid molecules (Novel Dima Molecules- NDM) generated as part of the research
plan and perform in vitro receptor binding assays to be performed by an external contract laboratory. Following the in
vitro screening process, phenotypic in vivo assays may be performed as well. Iterative chemical modifications might
also be required. We expect this process to take up to 3 years from effective date of the license.

 

Based on the toxicity
and efficacy profile of the in vitro receptor binding and in vivo phenotypic assays, a decision will be made as to
which of the compounds would be selected for further development.

 

Next stage would involve
indication selection, the testing of the specific NDM(S) in appropriate animal models. This stage may also take up to an additional
2 years. Following, ultimate lead selection, the molecule would be subject to a classical drug development pathway.

 

Scopus Biopharma will
contract with a current Good Manufacturing Practice (cGMP) capable contract manufacturing organizations (CMOs) to procure the NDM
drug substance. A CMO will be contracted to perform formulation development and DP analytical method development and qualification.
Following selection of the injectable formulation that will be used for clinical trials and a trial run of manufacturing (i.e.,
engineering run), cGMP batches will be manufactured. Both the engineering and cGMP batches will be release tested and put on stability.
This process will begin shortly after the start of the DS work (essentially concurrently). Additionally, metabolites of selected
NDM will be procured/synthesized to serve as analytical reference standards and if warranted by the data for toxicological qualification.

 

Pre-clinical Development

 

Assay Development:
Scopus Biopharma will contract with a Contract Research Organization (CRO) to develop and validate bioanalytical methods for rat,
dog, and human plasma. Pharmacology: Scopus Biopharma will contract with qualified CRO(s) to perform standard Good Laboratory
Practice (GLP) safety pharmacology studies. The studies will include in vitro hERG, subcutaneous (sc) rat central nervous system,
sc rat respiratory system, and sc dog cardiovascular system, as well as additional studies if warranted by the data. All of the
GLP safety pharmacology studies will utilize DS from either the engineering or cGMP batches.

 

Toxicology: In
preparation for the initial IND filing, Scopus Biopharma will contract with qualified CRO(s) to perform sc rat and dog rising single
dose +7-day repeated-dose rangefinding toxicity studies with toxicokinetics and sc rat and dog 28-day repeated-dose toxicity studies
with toxicokinetics. Scopus Biopharma will contract out the performance of an in vitro hemolysis assay and an IV two species single
dose local tolerance study.

 

    	 	40	 

     

    

 

Clinical Development

 

Scopus Biopharma will
contract out clinical trial related tasks to qualified CRO(s). The initial trial (i.e., the protocol to be included in the original
IND filing) is anticipated to be a Phase 1 open label does escalation study of safety tolerance PK including bioavailability in
healthy volunteers.

 

Following the completion
of two Phase 1 safety, tolerability, and PK study in healthy volunteers, Scopus Biopharma plans to move to a Phase 2 randomized
double blind study of tolerance including dose response, safety and PK in patients. Following the successful completion of the
preliminary Phase 2 study, Scopus Biopharma will enter into a Phase 2b dose response study. Following the successful completion
of the Phase 2b study, 2 pivotal Phase 3 trials randomized double blind study of efficacy, safety and population PK in patients.
tolerance including dose response, safety and PK in patients.

 

Regulatory Submission

 

At the appropriate time,
Scopus Biopharma plans to file a pre-IND meeting request with FDA to confirm that the planned CMC and nonclinical tasks will support
the initiation of the proposed Phase 1 clinical trial. In this way, course corrections in the development plan can be made early
on, expediting development and avoiding waste of resources. Following the completion of the Phase 1 clinical studies Scopus Biopharma
will for and end of phase 1 (EOP) meeting. At the completion of the Phase 2 study we will file for an EOP2 meeting. Following the
completion of the Phase 3 pivotal trials a pre-NDA meeting will be requested and an NDA will be filed.

 

	Development Stage	Anticipated Timeline
	Lead and indication selection	                  
	In vivo efficacy and preliminary toxicity	                  
	Complete IND enabling Pre-clinical studies	                  
	Phase 1 clinical studies start	Clinical
    studies may take between                     years
    depending on indication
	Phase 2 start	 
	Phase 3 start	 
	NDA	 

 

NB: This development
plan is subject to change based on circumstance and regulatory requirements.

 

DEVELOPMENT PLAN

(For Commercial
Products)

(Cannabinoid Synthetic
Pathway)

 

Following the filing
of the two synthetic pathway patents, Scopus Biopharma will retain an appropriate consultant to perform a scientific and economic
feasibility program for the synthetic production of CBD,THC and their precursors and derivatives. We anticipate this

process to take approximately
3 months.

 

Following the scientific
and economic feasibility plan, Scopus Biopharma will cause the initial feasibility study to be performed either in Prof Tsvelikhovsky’s
laboratory or via a contract manufacturing service. This process is estimated at one year.

 

    	 	41	 

     

    

 

A
                  
year optimization phase will then need
to be performed. Following optimization, a small scale          
pilot plant will need to be setup. This will take another 12 months.

 

	Development Stage	Anticipated Timeline
	Scientific and economic feasibility	                  
	Synthetic feasibility	                  
	Optimization	                  
	Small scale pilot plant	                  

 

NB: This development plan
is subject to change based on circumstance and regulatory requirements.

 

    	 	42

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