Document:

Exhibit 10.20

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS
EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL TO THE REGISTRANT AND (II) WOULD BE COMPETITIVELY HARMFUL TO THE REGISTRANT IF PUBLICLY
DISCLOSED. REDACTED PORTIONS OF THIS EXHIBIT ARE MARKED BY [***].

 

 

 

 

EXCLUSIVE SUB-LICENSE AGREEMENT

 

dated September 12, 2013

 

between

 

JADE THERAPEUTICS, INC.

 

and

 

BIOTIME, INC.

 

     

     

    

 

CONFIDENTIAL DOCUMENT

 

	 	TABLE OF CONTENTS	 	 	 
		 	Page	 
	ARTICLE I	DEFINITIONS	 	 	1	 
	ARTICLE 2	 LICENSE GRANT AND LICENSEE'S RESTRICTIVE COVENANT	 	 	5	 
	ARTICLE 3	TERM OF AGREEMENT	 	 	8	 
	ARTICLE 4	FEES & ROYALTIES	 	 	8	 
	ARTICLE 5	COMMERCIAL DILIGENCE & MILESTONES	 	 	10	 
	ARTICLE 6	TECHNOLOGY TRANSFER AND ASSISTANCE	 	 	10	 
	ARTICLE 7	MANUFACTURE AND SUPPLY OF TECHNOLOGY	 	 	11	 
	ARTICLE 8	INVENTIONS	 	 	11	 
	ARTICLE 9	CONFIDENTIALITY	 	 	13	 
	ARTICLE 10	QUARTERLY & ANNUAL REPORTS	 	 	14	 
	ARTICLE 11	PAYMENTS, RECORDS and AUDITS	 	 	15	 
	ARTICLE 12	PATENT MARKING	 	 	16	 
	ARTICLE 13	TERMINATION BY LICENSOR	 	 	16	 
	ARTICLE 14	TERMINATION BY LICENSEE	 	 	17	 
	ARTICLE 15	DISPOSITION OF LICENSED PRODUCTS ON HAND	 	 	17	 
	ARTICLE 16	REPRESENTATIONS AND WARRANTIES	 	 	17	 
	ARTICLE 17	INFRINGEMENT	 	 	19	 
	ARTICLE 18	INSURANCE	 	 	20	 
	ARTICLE 19	WAIVER	 	 	20	 
	ARTICLE 20	ASSIGNABILITY	 	 	20	 
	ARTICLE 21	 INDEMNIFICATION BY LICENSEE	 	 	20	 
	ARTICLE 22	NOTICES	 	 	21	 
	ARTICLE 23	GOVERNING LAW	 	 	21	 
	ARTICLE 24	 RELATIONSHIP OF PARTIES	 	 	22	 
	ARTICLE 25	DISPUTE RESOLUTION	 	 	22	 
	ARTICLE 26	GENERAL PROVISIONS	 	 	22	 
	 	 	 	 	 

     

     

    

 

CONFIDENTIAL DOCUMENT

 

EXCLUSIVE SUB-LICENSE AGREEMENT

 

THIS EXCLUSIVE SUB-LICENSE Agreement ("Agreement")
is entered into this 12th day of September, 2013 by and between BIOTIME, INC., a California corporation having a place of business
at 1301 Harbor Bay Parkway, Alameda, CA 94502, hereinafter referred to as "Licensor," and JADE THERAPEUTICS, INC., having
its principal place of business at 675 Arapeen Drive, Suite 302, Salt Lake City, UT 84108-1228, hereinafter referred to as "Licensee."

 

WITNESSETH

 

WHEREAS, Licensor has certain
exclusive rights under a License Agreement from the UNIVERSITY OF UTAH RESEARCH FOUNDATION, a Utah non-profit corporation, having
its principal place of business at 615 Arapeen Drive, Suite 310, Salt Lake City, UT 84108 ("UURF"), and relating to hydrogels
suitable for human use and more particularly relating to Licensor's HyStem®
hydrogels (the "UURF License"); and

 

WHEREAS, Licensor and Licensee
have previously entered into an exclusive sublicense agreement dated June 25, 2012 and the parties wish to supersede and replace
the previous agreement with this Exclusive Sublicense Agreement; and

 

WHEREAS, Licensor desires that the
Licensee should be enabled to pursue human use of the Technology (as defined herein) within a specified field as more particularly
described herein; and

 

WHEREAS, Licensee wishes to obtain
from Licensor a worldwide, exclusive license in the Field of Use to make, have made, manufacture, import, use and sell Licensed
Products and/or use Licensed Methods for (i) pre-clinical and clinical studies; and (ii) commercial sale and use upon regulatory
approval; and Licensor is willing to grant such a license upon the terms and conditions hereinafter set forth; and

 

WHEREAS, Licensor's rights
to the Technology were developed in the course of research sponsored in part by the U.S. Government, and as a consequence are subject
to overriding obligations of UURF to the U.S. Government as more particularly provided in the UURF License, the relevant parts
of which are stated in full this Agreement;

 

NOW THEREFORE, for and in
consideration of the covenants, conditions and undertakings hereinafter set forth, the parties hereby agree as follows:

 

ARTICLE 1 DEFINITIONS

 

	1.1	"Affiliate" means any company or other business entity that, directly or indirectly,
controls, or is controlled by, or is under common control by Licensee. Solely for purposes of this definition, the term "control"
means the possession of the power to direct or cause the direction of the management and policies of the entity, whether through
ownership of voting securities or by contract. Control will be presumed if an entity owns either of record or beneficially, at
least fifty percent (50%) of the voting stock of the other entity. An entity will be deemed an Affiliate during the period such
ownership or control relationship is in effect.

 

    	 	1	 

     

    

 

CONFIDENTIAL DOCUMENT

 

	1.2	"Collaboration Agreement" means an agreement which is: (a) negotiated and entered
into between Licensee or an Affiliate of Licensee and a Development Partner; (b) to develop, sell, use or commercialize a Licensed
Product and/or a Licensed Method in collaboration with Licensee; and (c) which requires Licensor to grant to the Development Partner
a sublicense to Patent Rights and/or Technology.

 

	1.3	"Covered By" means a claim or claims within any pending or issued patent included
in the Patent Rights claiming all, a portion, or a component or step of a Licensed Product or Licensed Method.

 

	1.4	"Development Partner" means any third party non-affiliate of Licensee with whom
Licensee, or an Affiliate of Licensee, decides to negotiate and enter into a Collaboration Agreement.

 

	1.5	"Effective Date" means September 12,
2013.

 

	1.6	"Entity" means a corporation, an association, a joint venture, a partnership,
a trust, a business, an institution, an individual, a government or political subdivision thereof, including an agency, or any
other organization that can exercise independent legal standing.

 

	1.7	"Equity Financing Transaction" means any event subsequent to the Effective Date
of this agreement, whereby the Licensee receives value of any kind in exchange for an ownership or equity position in Licensee.
Excluded from Equity Financing Transactions are: (a) any funds provided to Jade by Original Licensee Investors; and/or (b) the
value of any services performed by a third party for Licensee in consideration for an ownership or equity position in Licensee;
for example, consulting services.

 

	1.8	"Fair Market Value" means the cash consideration which Licensee would actually
receive from an unaffiliated, unrelated buyer in an arm's length sale of an identical item sold in the same quantity, under the
same terms, and at the same time and place.

 

	1.9	"First Commercial Sale" means, with respect to a given Licensed Product or Licensed
Method, the first sale for use or consumption by the public of such Licensed Product or Licensed Method in a country after all
required approvals, including marketing and pricing approvals, have been granted by the applicable governmental drug regulatory
agency.

 

	1.10	"Field of Use" means use of the Technology
for pre-clinical and clinical, and/or commercial purposes in humans to deliver a Licensed Product or Licensed Method, alone or
in conjunction with any Therapeutic Molecule(s), to, on, or in the eyeball, eye lid, or conjunctiva. Specifically excluded from
Field of Use is the use of the Licensed Product or Licensed Method (i) to deliver cells, (ii) and/or in conjunction with any molecule(s)
necessary for the successful therapeutic benefit of said cells, provided that use of such molecule(s) separately and not in conjunction
with cells shall be included in the "Field of Use" , (iii) to create and/or insert a punctal plug in the eye, (iv) for
diagnostic and research reagents, and (v) for any applications or uses in animal health or veterinary medicine.

 

    	 	2	 

     

    

 

CONFIDENTIAL DOCUMENT

 

	1.11	"HyStem®" means the "HyStem®"
hydrogel developed by Licensor and its derivatives. For clarity, the parties agree that "HyStem®" and
its derivatives are each a Licensed Product hereunder.

 

	1.12	"Insolvent" means being unable to meet one's debt obligations to another Entity
as such debt obligations become due and not being able to provide reasonable financial assurances of becoming able to meet such
obligations, consistent with the applicable Chapter of Title 11 of the United States Code.

 

	1.13	"License Issue Fee" means the fee paid
by Licensee to Licensor as set forth in Section 4.1 of this Agreement.

 

	1.14	"Licensed Product" means any product,
apparatus, kit or component part thereof, or any other subject matter, the manufacture, design, creation, use, importation, distribution,
or sale of which is Covered By any claim or claims included within the Patent Rights.

 

	1.15	"Licensed Method" means any method,
procedure, process or other subject matter, the practice, manufacture, use, or sale of which is Covered By any claim or claims
included within the Patent Rights.

 

	1.16	"Licensee Original Investors" means
and includes Mark Halan, Arthur Klausner, MaryJane Rafii, and Barbara Wirostko.

 

	I.17	"Net Sales" means the gross invoiced
sales price for commercial sale of Licensed Products and/or commercial use of Licensed Method arising after regulatory approval
by Licensee or any of its Affiliates; however, sales or other transfers of Licensed Products and/or practice of Licensed Methods
between Licensee and its Affiliates shall be excluded from the computation of Net Sales, and no payments will be payable to Licensor
on such sales or transfers except where such Affiliates are end users; less the following deductions, directly attributable to
the sale of such Licensed Product and/or Licensed Method and specifically identified on the invoice, and borne by the seller to
the extent they are included in such gross revenue or other consideration:

 

		a.	[***]:

 

		b.	[***];

 

		c.	[***]; and

 

		d.	[***].

 

			A Licensed Product and/or Licensed Method shall be considered
sold when it is shipped, delivered, or invoiced for purposes of commercial sale or commercial use, whichever is earlier. No deductions
shall be made from Net Sales for commission paid to individuals whether they are with independent sales agencies or are regularly
employed by Licensee or its Affiliates and are on its or their payroll, or for the cost of collections. In the event

 

    	 	3	 

     

    

 

CONFIDENTIAL DOCUMENT

 

		Licensee transfers a Licensed Product to and/or transfers
or performs a Licensed Method for a third party in a bona fide arm's length transaction, for consideration, in whole or in part,
other than cash, then the Net Sales price for such Licensed Product and/or Licensed Method shall be deemed to be the standard
invoice price then being invoiced by Licensee in an arm's length transaction with similar companies and in the absence of such
standard invoice price, then the reasonable Fair Market Value of the Licensed Product and/or Licensed Method. Components of Net
Sales shall be determined in the ordinary course of business using the accrual method of accounting in accordance with generally
accepted accounting practices.

 

		If Licensee or any Affiliate sells, leases or otherwise
commercializes any Licensed Product and/or Licensed Method at a reduced fee or price for the purpose of promoting other products,
goods or services or for the purpose of facilitating the sale, license or lease of other products, goods or services, then Licensee
shall pay to Licensor and each such Affiliate shall be obligated to pay to Licensor, a Royalty under Article 4 based upon the
Fair Market Value of the License Product and/or Licensed Method.

 

	1.18	"Patent Right(s)" means and include
all of the following Licensor intellectual property: The patents and/or patent applications listed in Exhibit "A"; patents
issued from the applications listed in Exhibit "A" and from divisionals and continuations (other than continuations
in part) of these applications and/or patents and any reissues or re-exams of such patents; claims of continuation-in-part applications
and patents directed to subject matter specifically described in the patent(s) and/or patent application(s) listed in Exhibit
 "A"; and claims of all foreign applications and patents which are directed to subject matter specifically described
in the United States patents and/or patent applications listed in Exhibit "A"; and any other Licensor intellectual property
during the Term that the parties mutually agree will facilitate the development and commercialization of Licensed Method or Licensed
Product.

 

	1.19	"Technology" means any technology in
the control of Licensor that relates to Licensed Products or Licensed Methods, including and relating to Licensor's HyStem®
hydrogels.

 

	1.20	"Territory" means worldwide.

 

	1.21	"Therapeutic Molecule(s)" means a molecule(s)
being tested or administered because the mechanism of action thereof is believed to be substantially responsible for the desired
therapeutic benefit, where said therapeutic molecule(s) is not a cell.

 

	1.22	"University" means University of Utah
Research Foundation.

 

	1.23	"Valid Claim" means a patent claim included
in the Patent Rights that has not lapsed or become abandoned or been declared invalid or unenforceable by a court or agency of
competent jurisdiction from which no appeal can be or has been taken.

 

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CONFIDENTIAL DOCUMENT

 

ARTICLE 2 LICENSE
GRANT AND LICENSEE'S RESTRICTIVE COVENANT

 

	2.1	Exclusive Grant. Subject to the terms and conditions
and Licensee's Restrictive

 

		Covenant set forth in Section 2.6 of this Agreement,
Licensor hereby grants to Licensee a worldwide, royalty-bearing, exclusive (even as to Licensor) license in the Territory to make,
have made, manufacture, import, use and sell the Licensed Product and to practice the Licensed Method in the Field of Use under
Licensor's UURF License (the "License") and the Patent Rights. This grant is subject to the terms and conditions of
this Agreement, and to any rights of the Government of the United States as set forth in the UURF License by UURF and the University
to:

 

 a.           publish the general scientific findings from research conducted in whole or in part at the University related to the Patent Rights;

 

 b.           manufacture, have manufactured, use, and/or practice, or transfer the Patent Rights for research, teaching and other educationally-related non-commercial purposes.

 

	2.2	Affiliates. Licensee may extend the license
granted herein to any Affiliate if the Affiliate consents in writing to be bound by this Agreement
to the same extent as Licensee.

 

	2.3	Development Partners. Should Licensee determine
that a Development Partner is necessary to develop, market, and/or sell Licensed
Product or Licensed Method, Licensee shall submit to Licensor written justification for such Development Partner. Should Licensor
approve of such Development Partner, such approval to not be unreasonably withheld, Licensor will grant a sub-license for the Patent
Rights to said Development Partner (Development Partner Sublicense): (i) the terms of which shall be materially consistent with
the UURF License; and (ii) the scope of sublicense granted shall be consistent with the Collaboration Agreement between Licensee
and the Development Partner ("Development Partner Sublicense") including field of use. Such Development Partner Sublicense
shall provide for a royalty payment of [***]% (or such lower amount as Licensor may in its sole and absolute discretion approve)
on the Net Sales of Licensed Products or Licensed Methods by the Development Partner, payable directly to Licensor ("Development
Partner Sublicense Royalty"); and no other or additional financial payments or consideration from the Development Partner
to Licensor will be due under the Development Partner Sublicense. For clarity, all consideration related to the Collaboration Agreement
other than the Development Partner Licensor Royalty shall be paid by the Development Partner solely to Licensee or a Licensee Affiliate.
Notwithstanding the foregoing, each Development Partner must be approved by Licensor in writing, such approval not to be unreasonably
withheld. Each Development Partner Sublicense must be approved in writing by Licensee prior to execution by Licensor, such approval
not to be unreasonably withheld.

 

	2.4	Collaboration Agreement Payments Other Than Royalty.

 

 a. If Licensee receives consideration of any kind for a Collaboration Agreement other than a royalty on Net Sales to be paid by the Development Partner, Licensee shall pay to Licensor a percentage, as given below, of any fee or payment received by Licensee regardless of how the Licensee and the Development Partner characterizes such payments, including but not limited to license fees, minimum annual royalties, milestone payments, etc. ("Collaboration Agreement Payments"). Licensee shall not receive from a Development Partner anything of value in lieu of cash payments in consideration for any Collaboration Agreement, without the express prior written consent of Licensor.

 

    	 	5	 

     

    

 

CONFIDENTIAL DOCUMENT

 

 

 

 b. Licensor's percentage of Collaboration Agreement Payments, other than or in addition to (x) a royalty on the Net Sales of Licensed Products or Licensed Methods or (y) paid in consideration for the purchase of the stock of Licensee, shall be:

 

		(i)	[***]% if prior to FDA Clearance to proceed with clinical
trials of the most advanced product covered in the Development Partner Sublicense. "Clearance" or "Cleared"
shall mean that Licensee has submitted an Investigational New Drug Application ("IND") for the most advanced Licensed
Product covered in the Development Partner Sublicense; and the FDA has not placed a clinical hold on such IND on or before [***]
following the date of submission.

 

		(ii)	[***] if an Investigational New Drug Application has
been Cleared by the FDA but Phase II or equivalent clinical investigation has not begun of the most advanced product covered in
the Development Partner Sublicense.

 

		(iii)	[***]% if the first dose in a Phase II or equivalent
clinical investigation has taken place for the most advanced product covered in the Development Partner Sublicense.

 

		(iv)	[***]% if a New Drug Application or equivalent has
been approved for the most advanced product covered in the Development Partner Sublicense.

 

c.       Payments
due Licensor from Licensee as a result of any Collaboration Agreement entered into between a Development Partner and Licensee (or
its Affiliate) shall be paid by Licensee (or its Affiliate) within [***] of Licensee's (or its Affiliate's) receipt of the Collaboration
Agreement Payment. Payments to Licensor for its share Collaboration Agreement Payments received by Licensee shall be fully creditable
against any minimum annual royalties or royalties otherwise due to Licensor by Licensee in the calendar year in which the Collaboration
Agreement is executed or, in the case of milestone or other payments received by Licensee subsequent to the year in which the Collaboration
Agreement is executed, in the calendar year the payment is received.

 

 

    	 	6	 

     

    

 

CONFIDENTIAL DOCUMENT

 

	2.5	Development Partner Royalties.  For clarity, Licensor agrees that the only royalty payments
that it shall be entitled to receive as the result of a Collaboration Agreement

 

		shall be the royalty referenced in Section 2.3. No
other royalty payments, or percentage of royalty payments, shall be due or owing from Licensee or a Licensee Affiliate, including
the Royalty set forth in Section 4.2, as a result of a Collaboration Agreement entered into between the Development Partner and
the Licensee. Notwithstanding the foregoing the Licensor and Licensee acknowledge that paragraph 2.5 does not negate any payments
due Licensor from Licensee specified in paragraph 2.4 a-c or Sections 4.1 or 4.3.

 

	2.6	Restrictive Covenant - License to Prospective Licensee for Proposed Product. From and after the first anniversary of the Effective Date, Licensor shall provide written notice to Licensee of any request Licensor receives for an exclusive or non-exclusive license relating to any method or process, composition, product or component part thereof for which rights granted to Licensee by Licensor in the License are necessary for manufacture, sale, use, distribution, or as applicable the reproduction, preparation of derivatives of, or other practice of a proposed product or service (a "Proposed Product") from any third party that desires to make, use, and sell such Proposed Product (a "Prospective Licensee") within [***] of receiving such request. In the event neither Licensee, any Affiliate, or Development Partner is then developing or commercializing or has plans to develop or commercialize a Licensed Product or Licensed Method for use or sale in the same general industry as proposed by the Prospective Licensee for the Proposed Product, as identified in a report provided to Licensor pursuant to Section 10.1 of this Agreement, then within [***] of receipt of the notice by Licensee from Licensor that Licensor desires to negotiate with the Prospective Licensee for the purpose of granting a sublicense under the License to develop and commercialize the Proposed Product within the relevant portion of the Field of Use, Licensee shall elect one of the following options:

 

		Provide Licensor with documentation demonstrating
to Licensor's reasonable satisfaction that Licensee, an Affiliate, or Development Partner has initiated commercially reasonable
efforts to develop, make, use, sell, distribute, and as applicable reproduce, prepare derivatives of, publicly perform, or publicly
display a Licensed Product for use or sale that would commercially compete with the Proposed Product in the same general industry.
For purposes of this Section 2.6, commercially reasonable efforts shall include but are not limited to (i) [***],
(ii) [***], (iii) [***], (iv) [***],
and (v) [***].

 

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CON Fl DENTI A DOCUMENT

 

		(ii)	Grant back to Licensor limited rights in the License
for the sole purpose of allowing Licensor to grant the License to the extent necessary for such Prospective Licensee to develop,
make, use, sell, distribute, and as applicable reproduce, prepare derivatives of, publicly perform, or publicly display such Proposed
Product in the relevant portion of the Field of Use.

 

		(iii)	Provide Licensor with written notice demonstrating
to Licensor's reasonable satisfaction that the development or commercialization of such Proposed Product would have a reasonable
likelihood of materially and adversely affecting the development or commercialization of any Licensed Product or Licensed Service
then being developed or commercialized by Licensee, an Affiliate, or Development Partner.

 

ARTICLE 3 TERM
OF AGREEMENT

 

		This Agreement shall be in full force and effect from
the Effective Date until the end of the term of the last-to-expire of Licensor's Patent Rights licensed under this Agreement,
unless otherwise terminated by operation of law or by acts of the parties pursuant to the terms of this Agreement ("Term").

 

ARTICLE 4 FEES & ROYALTIES

 

	4.1	License Issue Fee. Licensee shall pay to Licensor
a non-refundable "License Issue Fee" of fifty thousand dollars ($50,000). Once the Licensee has raised five hundred
thousand dollars ($500,000) from sources other than the Licensee Original Investors, Licensee shall begin paying the License Issue
Fee incrementally by paying to Licensor [***] percent ([***]%)
of any subsequent proceeds received by Licensee from investors other than investment made by Licensee Original Investors, in Equity
Financing Transactions that are consummated following the Effective Date, until an aggregate of fifty thousand dollars ($50,000)
has been paid to Licensor. Licensee will notify Licensor in writing within [***] of the consummation
of any Equity Financing Transaction. The applicable increment of the License Fee shall be paid to Licensor within [***]
of the closing of each such Equity Financing Transaction.

 

	4.2	Royalty. Licensee shall pay to Licensor, on
a country by country basis, an earned running royalty on Net Sales in the amount of [***] percent
([***]%) ("Royalty"). No Royalty shall be due for (a) any use or sale of Licensed
Product or Licensed Method required in or for the purpose of any pre-clinical or clinical trial conducted in advance of a government
regulatory body approval to market a Licensed Product or Licensed Method, or (b) any Licensed Product or Licensed Method provided
without consideration for use in a post marketing clinical study, or other research or development purpose conducted by Licensee,
an Affiliate of Licensee, or a Development Partner.

 

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CONFIDENTIAL DOCUMENT

 

	4.3	Annual Minimum Royalty. Licensee will pay an
annual minimum royalty of thirty thousand dollars ($30,000) ("Annual Minimum Royalty") starting with a first payment
due on January 1, 2017 and annually each January 1st of each calendar year during the

 

			Term. Licensor shall filly credit each payment of Annual
Minimum Royalty against any earned Royalty payable by Licensee with respect to the calendar year in which the minimum annual royalty
is due. Only one Annual Minimum Royalty payment shall be due and owing regardless of the number of Licensed Products or Licensed
Methods.

 

	4.4	Royalty Period. The Royalty shall be payable
for each Licensed Product or Licensed Method on a product by product and country-by-country basis from the time of the First Commercial
Sale of Licensed Product or Licensed Method in such country until the expiration of the last to expire patent containing a Valid
Claim with respect to such Licensed Product or Licensed Method.

 

	4.5	Royalty Conditions. The Royalty shall be subject
to the following conditions:

 

		a.          only one Royalty shall be due with respect to: (i)
same unit of Licensed Product; (ii) same use of Licensed Method; or (iii) the use of the Licensed Method for the purpose of making,
manufacturing, having manufactured, using and selling Licensed Product.

 

		b.          for clarity, no Royalty shall be due upon the sale or other transfer amount between
                                                 Licensee and its Affiliates, but in such cases the Royalty shall be due and calculated upon Licensee's or its Affiliate's Net
                                                 Sales to the first Non-Affiliate third party;

 

		c.          no Royalty shall accrue on the disposition of any Licensed Product or Licensed Method in
                                                                               reasonable quantities by Licensee or its Affiliates as part of an expanded access program or as bona fide samples or as
                                                                               donations to non-profit institutions or government agencies for non-commercial purposes; and

 

		d.          notwithstanding the above Royalty rates, upon Licensee's request, the parties
                                             agree to discuss in good faith a reduction of such Royalty rate in any given country in the event the available patent
                                             protection materially decreases the commercial viability of the Licensed Product or Licensed Method under such Royalty
                                             rate.

 

	4.6	Reduction Because of Third Party Payments. In
the event Licensee makes a payment to one or more third parties for patent rights or know-how which Licensor reasonably agrees
(i) is necessary or proper to develop or commercialize a Licensed Product or Licensed Method; and (ii) arises as a result of the
use of the Technology, the Royalty due hereunder shall be reduced by the amount of the payment made to said third parties, provided
however, the Royalty from Licensee to Licensor shall not be reduced to less than [***] percent ([***]%) of the Royalty due in
any period but for such payments to third parties, however, said reduction shall not apply to Royalties due from a Development
Partner in Section 2.3.

 

	4.7	Patent Expenses. Licensee will be required to
pay no part of Licensor's or the University of Utah's patent costs.

 

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CONFIDENTIAL DOCUMENT

 

ARTICLE 5 COMMERCIAL
DILIGENCE & MILESTONES

 

	5.1	Licensee agrees to use good faith reasonable commercial
efforts to accomplish the following milestones by the dates shown:

 

		a.          Raise [***] dollars ($[***]) in operating capital from Equity Financing
                                             Transactions within two years of the Effective Date, excluding any and all monies provided to or on behalf of Licensee by the
                                             Original Investors;

 

		b.          Submit first Investigational New Drug Application in a major market by December 31,
                                                 2015.

 

		c.          Complete first dosing in man of a Phase II or equivalent clinical trial by December 31,
                                                                               2016.

 

		d.          Have First Commercial Sale in a country of a Licensed Product or Licensed Method by
                                                                               January 1, 2023.

 

ARTICLE 6 TECHNOLOGY
TRANSFER AND ASSISTANCE

 

	6.1	Information and Know-How. Licensor agrees to
use good faith and reasonable efforts to answer technical questions, from time to time, that Licensee might have regarding the
Technology. The Licensor will not, however, be required to divulge any information or know how that the Licensee considers a trade
secret or otherwise proprietary. Any Licensor information disclosed under this paragraph shall be considered the Confidential
Information of Licensor and subject to the limitations and exceptions of Article 9 of this Agreement.

 

	6.2	Regulatory Assistance. Licensor shall, upon
the request of Licensee, provide a letter of authorization allowing regulatory bodies and governmental agencies access, and a
right of reference, to any and all of Licensor's Device Manufacturing Master Files for the Technology in the Territory ("Licensor
Regulatory Filings") for use with regard to, and on behalf of, Licensee's regulator), filings relating to Licensed Product
and Licensed Method. In addition, Licensor shall reasonably assist, to the extent that it is able to without undue burden, in
answering any questions regarding Licensor Regulatory Filings by providing information concerning Licensor's Regulatory Filings,
provided, that such information is in Licensor's possession and can be disclosed without violating any confidentiality agreement
with any third party; provided, further that Licensor shall not be obligated to obtain, derive, or generate any new or additional
data or information.

 

	6.3	Safety Information. Each Party agrees to notify
the other Party of any reports of serious adverse events concerning the Licensed Product or Licensed Method sold, within the Territory
or regarding the Technology within [***] of the date that such Party becomes aware of the complaint. Each such report shall be
directed to the party pursuant to the notice provisions of Article 22.

 

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CONFIDENTIAL DOCUMENT

ARTICLE 7 MANUFACTURE
AND SUPPLY OF TECHNOLOGY 

 

	7.1	For the purpose of clarity, Licensor hereby grants
to Licensee a non-royalty bearing,exclusive license in the Territory to use the Technology to make, have made and manufacture
Licensed Products and/or Licensed Methods in the Field of Use tinder Licensor's UURF License and Patent Rights.

 

	7.2	Licensee hereby grants to Licensor a right of first negotiation with respect to the
                                                manufacturing of Licensed Products (ROFN) during the Term. If during the Term, Licensee desires to pursue clinical and/or
                                                commercial manufacturing of a Licensed Product, then Licensee shall notify Licensor. Licensor shall, within [***]
                                                after receipt of such notice, indicate to Licensee in writing whether or not it wishes to enter into a manufacturing
                                                agreement with Licensee for the Licensed Product, it being understood and agreed that entering into negotiations for a
                                                manufacturing agreement does not require either Party to propose or accept any offer. If either (a) Licensor indicates it
                                                does not wish to manufacture Licensed Products, (b) Licensor fails to indicate its interest within [***],
                                                or (c) Licensor indicates it wishes to manufacture Licensed Products but the Parties fail to reach agreement on the terms of
                                                said manufacturing of a Licensed Product within [***] after the date of Licensor's
                                                indication of interest, then the ROFN right shall expire and Licensee shall be free, without any further obligation to
                                                Licensor, to enter into negotiations with a Third Party, and the provisions in Section 7.3 shall be in effect.

 

	7.3	Upon request from Licensee, Licensor shall authorize
its subcontract manufacturers of[***] to supply those components directly to Licensee using Licensor's production methods. Licensee
will be responsible for entering into supply agreements with Licensor's subcontractors, and for paying all cost of such production
and supply. Such agreements may provide for, among other things, the right for Licensee to reasonably audit and inspect the facilities
in which the [***] components are manufactured and packaged at no expense to Licensor. Licensee
acknowledges, however, that Licensor's [***], [***],
and [***], including [***] and [***]
from [***], may only be inspected and reviewed at the subcontractor's facility. No
copies or photographs of these documents may be made or the documents otherwise removed from the manufacturer's facilities.

 

ARTICLE 8 INVENTIONS

 

	8.1	Ownership of any art, method, process, machine, manufacture,
design, or composition of matter, or any new and useful improvement thereof, whether patented or unpatented under the Patent Laws
of the United States of the America or any foreign country which relates to the Technology and is conceived and/or reduced to
practice by Licensee or Licensee's employees, alone or jointly with Licensor and/or Licensor's employees during the term of this
Agreement (the "Inventions") shall be determined in accordance with the Patent Laws of the United States of America,
Title 35 of the United States Code.

 

    	 	11	 

     

    

 

CONFIDENTIAL DOCUMENT

 

		Licensor shall own all right, title and interest in
all developments, inventions and know-

 

		how (whether or not protectable under state, federal,
or foreign intellectual property laws) to the Technology conceived and/or reduced to practice by solely by Licensor or by Licensor's
employees during the term of this Agreement ("Licensor's Inventions"). Licensee shall own all right, title and interest
in all developments, inventions and know-how (whether or not protectable under state, federal, or foreign intellectual property
laws) to the Technology conceived and/or reduced to practice solely by Licensee or by Licensees' employees during the term of
this Agreement ("Licensee's Inventions"). Licensee and Licensor shall jointly own all right, title and interest in all
developments, inventions and know-how (whether or not protectable under state, federal, or foreign intellectual property laws)
to the Technology conceived and/or reduced to practice jointly by Licensee (or Licensee's employees) and Licensor (or Licensor's
employees) during the term of this agreement ("Joint Inventions").

 

	8.2	Licensee hereby grants to Licensor, a worldwide, non-exclusive
license in all of Licensee's right, title and interest in and to all Licensee's Inventions for use other than and outside of the
Field of Use.

 

	8.3	Licensor hereby grants to Licensee, for no additional
consideration, a worldwide, non-exclusive license in the Field to any and all rights and ownership interest Licensor may have
in Joint Inventions ("Licensor Joint Invention Rights"). The Parties hereby agree that Licensor Joint Invention Rights
are, upon conception and/or reduction to practice, deemed included in Patent Rights and included in the License granted to Licensee
in Article 2 of this Agreement. The Parties hereby agree that Licensee's obligation to pay to Licensor a Royalty, if any, based
on Licensor Joint Invention Rights shall terminate upon expiration of the last to expire patent or patent application listed in
Exhibit "A", regardless of any new patents or patent applications that may be included in Patent Rights as the result
of Joint Inventions. Licensor shall retain exclusive rights to all Joint Inventions outside of the Field of Use.

 

	8.4	Licensee shall have the sole right to prepare, file
and prosecute patent applications on, and otherwise protect, all Licensee's Inventions. Licensor shall have the sole right to
prepare, file and prosecute patent applications on, and otherwise protect, all Licensor's Inventions. The Parties jointly will
share the right to prepare, file and prosecute patent applications on, and otherwise protect, all Joint Inventions. If one party
declines to participate in the filing and prosecution of patent applications relating to Joint Inventions, the other party will
have the sole right to file and prosecute said patent application and will retain all ownership rights in the patent application
and any patent issuing from said patent application.

 

	8.5	The Parties shall execute any such documents and perform
such acts as may reasonably be necessary for the Parties to prepare, file and prosecute such patent applications and otherwise
to protect the Joint Inventions. In the event that one Party (the First Party) is unable or unwilling for any reason to supply
its signature to any document the other Party (the Second Party) is required to execute for the Assignment or filing or prosecution
of patent applications relating to Joint Inventions, the First Party hereby irrevocably designates and appoints the Second Party
and its duly authorized officers and agents as the First Party's agents and attorneys-in-fact to act for and on the First Party's
behalf and

		instead of the First Party, to execute such document
with the same legal force and effect as if executed by the First Party.

 

 

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CONFIDENTIAL DOCUMENT

 

ARTICLE 9 CONFIDENTIALITY

 

	9.1	Licensee and Licensor acknowledge that either party
may provide certain information to the other with regard to the Technology and/or Licensed Products/Licensed Methods that is considered
to be and is identified as confidential. Licensee and Licensor shall take all reasonable precautions to protect such confidential
information. Such precautions shall involve at least the same degree of care and precaution that the receiving party customarily
uses to protect its own confidential information, but in no circumstance less than reasonable care. Information shall not be deemed
confidential if it:

 

		a.          was already known to the receiving party, other than
under an obligation of confidentiality to the disclosing party;

 

		b.          was generally available to the public or otherwise part of the public domain at the time
                                                 of its disclosure to the receiving party;

 

		c.          becomes generally available to the public or otherwise part of the public domain after its
                                                                               disclosure and other than through any act or omission of the receiving party in breach of this Agreement;

 

		d.          was subsequently lawfully disclosed to the receiving party by a third party;

 

		e.          can be shown by written records to have been independently
developed by the receiving party without reference to the confidential information received from the disclosing party and without
breach of any of the provisions of this Agreement; or

 

		f.          may be disclosed by the receiving party pursuant to
a specific written agreement of the disclosing party.

 

	9.2	A receiving party may disclose a disclosing party's
confidential information to the extent it is required by applicable law or court order to be disclosed; provided, however, that
the receiving party provides the disclosing party with prior written notice of such disclosure in order to permit the disclosing
party to seek confidential treatment of such confidential information.

 

	9.3	Each patty agrees that the breach of this Article 9
may cause the disclosing party irreparable harm and that monetary damages may be an inadequate remedy for such harm. Therefore,
in the event of any such breach, the disclosing party shall be entitled to equitable relief (including injunctions and specific
performance remedies) in addition to other remedies that may be available to the disclosing party.

 

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CONFIDENTIAL
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	9.4	a.          Each party agrees that the financial terms of this Agreement shall be kept confidential, except that a party may disclose financial terms of this Agreement: (i) in connection with any lawsuit or other proceeding relating to the enforcement of the rights of either party under this Agreement; (ii) to the extent the party determines, in good faith, that such disclosure is required by law; provided, that before filing a copy of this Agreement as an exhibit to any registration statement or report under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, or under any state securities law, the party will file an application for confidential treatment of those financial terms that the party has determined are not required to be disclosed by law; (iii) to the party's accountants and attorneys, (iv) to the party's consultants and advisors other than accountants and attorneys pursuant to a written agreement of confidentiality, and (v) to potential underwriters and investors pursuant to a written agreement of confidentiality. Licensee acknowledges that this sublicense agreement must be reviewed and approved by the University of Utah's Technology Commercialization Office pursuant to a written agreement of confidentiality between the Licensee and the University of Utah Technology Commercialization Office prior to execution by the Parties.

 

		b.          Either party may issue a press release in connection
with the execution of this Agreement, provided that the other party is provided an opportunity to review and comment upon the
content of the press release at least two business days prior to publication. The press release shall not disclose financial terms
of this Agreement unless both parties consent to the disclosure.

 

ARTICLE 10 QUARTERLY & ANNUAL
REPORTS 

 

	10.1	Progress Report and Commercialization Plan.
Commencing on December 1, 2013, and on each June 1st and December 1st thereafter, until the First Commercial Sale in the first
country, and annually thereafter on each December 1st, Licensee shall submit to Licensor a written report covering Licensee's
progress in (a) development and testing of all Licensed Products and Licensed Methods; (b) achieving the commercial diligence
milestones specified in Article 5; (c) preparing and filing applications, and obtaining any approvals necessary for marketing
the Licensed Products and Licensed Methods, and (d) plans for the upcoming year in commercializing the Licensed Product(s). Each
report shall be in substantially similar form and contain at least the information required by Exhibit "B" attached
hereto and incorporated herein.

 

	10.2	Quarterly Royalty Report. Within [***]
after the calendar year in which the First Commercial Sale in the first country occurs, and within [***]
after each calendar quarter thereafter, Licensee shall provide Licensor with a written report detailing all sales and commercial
uses, if any, made of Licensed Products and Licensed Methods during such calendar quarter, and detailing the amount of Net Sales
made during such quarter and calculating the royalties due pursuant to Article 4 hereof. Each report shall include at least the
following:

 

		a.          number of Licensed Products manufactured, leased and sold by and/or for Licensee and its
                                                                               Affiliates;

 

		b.          accounting for all Licensed Methods commercially used or sold by and/or for Licensee, its
                                                                               Affiliates and Development Partners;

 

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CONFIDENTIAL
DOCUMENT

 

		c.          accounting for Net Sales, noting the deductions applicable
as provided in Section 1.17;

 

		d.          royalties due under Article 4;

 

		e.          total royalties due;

 

		f.           the amount spent on product development; and

 

		g.          the number of full-time equivalent employees working
on the Licensed Products and/or Licensed Methods.

 

		Each report shall be in substantially similar form
as Exhibit "C" attached hereto. Each such report shall be signed by an officer of Licensee (or the officer's designee).
With each such report submitted, Licensee shall pay to Licensor the Royalties due and payable under this Agreement. If no Royalties
shall be due, Licensee shall so report. Licensee's failure to submit a Royalty report in the required form will constitute a breach
of this Agreement. Licensee will continue to deliver Royalty reports to Licensor after the termination or expiration of this Agreement
until such time as all Licensed Product(s) permitted to be sold after termination have been sold or destroyed.

 

	10.3	Reporting First Foreign Sales. In addition to
the regular reports required by Section 10.1 and 10.2, Licensee shall provide a written report to Licensor of the date of first
occurrence of Net Sales in each country within [***] of its occurrence.

 

	10.4	Publication of Scientific Findings.

 

Licensee will provide Licensor with a copy of any manuscript reporting scientific
finding involving the Licensed Method or Licensed Product [***] prior to publication.

ARTICLE 11
PAYMENTS, RECORDS AND AUDITS

 

	11.1	Payments. All Royalty payments shall be made
in United States of America Dollars. Royalties shall be payable from the country in which they are earned and subject to foreign
exchange rates then prevailing in such country. The exchange rate for purposes of this Agreement will be the rate of exchange
to United States Dollars from the currency of the country of sale, as listed in the Wall Street Journal on the Royalty payment
date or, if not listed in such publication, an equivalent fair market rate. Royalty payments shall be made within [***] following
the calendar quarter in which Net Sales occur. Each payment will reference the Agreement. Payments shall be made to such address
and using such arrangements as Licensor may reasonably specify from time to time. In the event that any royalty payment or other
fee or payment is not received by Licensor when due, Licensee shall pay to Licensor .interest charges at the rate of [***] percent
([***]%) per annum on the total royalties due for the reporting period.

 

	11.2	Records. Licensee shall keep, and cause its Affiliates to keep, complete,
                                                 true and accurate records and books containing all commercially reasonable particulars that may be needed for the purpose of showing the amounts payable
to Licensor hereunder.

 

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CONFIDENTIAL DOCUMENT

 

		Records and books shall be kept at Licensee's principal
place of business or the principal place of business of the appropriate division of Licensee to which this Agreement relates.

 

	11.3	Audit Related to Royalty Payments. Such books
and the supporting data shall be open to inspection by Licensor or an independent certified public accountant selected by Licensor
and reasonably acceptable to Licensee, at all reasonable times for a term of [***] following
the end of the calendar year to which they pertain, upon reasonable prior notice to Licensee, for the purpose of verifying Licensee's
royalty statement or compliance in other respects with this Agreement. Such access will be available to Licensor upon not less
than [***] written notice to Licensee, not more than [***]
each [***] of the Term, during normal business hours, and [***]
for [***] after the expiration or termination of this Agreement. Should such inspection
lead to the discovery of a greater than [***] percent ([***]%)
or [***] dollar ($[***]) US, discrepancy in reporting
to Licensor's detriment, Licensee agrees to pay the full cost of such inspection, and once during the next [***]
Licensor shall have the right to audit Licensee's books and records under this Section 11.3. Whenever Licensee has its
books and records audited by an independent certified public accountant, Licensee will, within [***]
of the conclusion of such audit, provide Licensor with a written statement, certified by said auditor, setting forth the
calculation of royalties, fees, and other payments due to Licensor over the time period audited as determined from the books and
records of Licensee. All information obtained by Licensor as the result of this Section 11.3 shall be deemed the confidential
information of Licensee and subject to the protections of Article 9 of this Agreement. Any independent certified public accountant
retained by Licensor pursuant to this Section 11.3 shall enter in a written confidentiality agreement with Licensee that is acceptable
to Licensee.

 

ARTICLE 12 PATENT MARKING

 

Licensee shall permanently and legibly
mark all Licensed Products used or sold tinder the terms of this Agreement, or their containers, in accordance with all applicable
patent-marking and notice provisions under Title 35, United States Code.

 

ARTICLE 13 TERMINATION BY LICENSOR

 

	13.1	If
Licensee should: (a) fail to deliver to Licensor any statement or report required hereunder when due; (b) fail to make any payment
at the time that the same should be due; (c) violate or fail to perform any covenant, condition, milestone, or undertaking to
be performed by it under this Agreement; (d) cease active commercially reasonable effort to commercialize Licensed Product(s);
(e) fail to meet the milestones stated in Sections 5.2 (a), (b), (c) and (d); (f) file a petition for relief under the United
States Bankruptcy Code, or have a petition under the United States Bankruptcy Code filed against it, or become Insolvent; or (g)
enter into a composition with creditors, or have a receiver appointed for it, then Licensee shall be in default. If Licensee should
fail to cure such default within (i) [***] after Licensor delivers a notice of default in
making any payment, or (ii) [***] after Licensor delivers a notice of default other than
a default in making a payment, the rights, privileges, and license granted hereunder shall automatically terminate.

 

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CONFIDENTIAL DOCUMENT

 

	13.2	If Licensee shall cease to carry on its business with
respect to the rights granted in this Agreement, this Agreement shall terminate upon [***] written notice by Licensor.

 

	13.3	No termination of this Agreement by Licensor shall
relieve Licensee of its obligation to pay any monetary obligation due or owing at the time of such termination and shall not impair
any accrued right of Licensor. Licensee shall pay all attorneys' fees and costs incurred by Licensor in enforcing any obligation
of Licensee or accrued right of Licensor. Articles 8, 9, 10, 11.3, 15, 16, 18, 19 and 21 hereof shall survive any termination
of this Agreement.

 

ARTICLE 14 TERMINATION
BY LICENSEE

 

	14.1	Licensee may terminate this Agreement at any time
and from time to time without cause, by giving written notice thereof to Licensor. Such termination shall be effective [***] after
such notice and all Licensee's rights associated therewith shall cease as of that date.

 

	14.2	Licensee may terminate this Agreement immediately
upon notice to Licensor in the event that Licensee reasonably believes that safety or regulatory issues require termination of
the development or commercialization of Licensed Product or Licensed Method.

 

	14.3	Any termination pursuant to Section 14.1 or 14.2 shall
not relieve Licensee of any obligation or liability accrued hereunder prior to such termination, or rescind or give rise to any
right to rescind any payments made or other consideration given to Licensor hereunder prior to the time such termination becomes
effective. Such termination shall not affect in any manner any rights of Licensor arising under this Agreement prior to the date
of such termination.

 

	14.4	No termination of this Agreement by Licensee shall
relieve Licensee of its obligation to pay any monetary obligation due or owing at the time of such termination and shall not impair
any accrued right of Licensor. Articles 8, 9, 10, 11.3, 15, 16, 18, 19 and 21 hereof shall survive any termination of this Agreement
by Licensee.

 

ARTICLE 15 DISPOSITION
OF LICENSED PRODUCTS ON HAND

 

Upon expiration or termination of
this Agreement by either party, Licensee shall provide Licensor with a written inventory of all Licensed Products in process of
manufacture, in use or in stock. Licensee may dispose of any such Licensed Products within the [***] period following such expiration
or termination, provided, however, that Licensee shall pay Royalties and render reports to Licensor thereon in the manner specified
herein.

 

ARTICLE 16 REPRESENTATIONS
AND WARRANTIES

 

	16.1	Licensor represents and warrants that it has the lawful right to grant the license set forth in
this Agreement.

 

	16.2	Licensor further represents and warrants as of the
Effective Date:

 

    	 	17	 

     

    

 

CONFIDENTIAL DOCUMENT

 

		a.          Licensor has not granted, and during the term of this
Agreement will not grant, any security interest, option, lien, license, or encumbrance of any nature with respect to any Patent
Rights which would conflict with the License granted to Licensee tinder this Agreement;

 

		b.          As of the Effective Date, all applicable maintenance
fees, annuity payments, and similar payments relating to the Patent Rights have been made, and during the term of this Agreement
will be made, in a timely manner;

 

		c.          As of the Effective Date, Licensor has not received
written notice of a pending or threatened proceeding, nor has Licensor received written notice of any claim, which challenges
or challenged the validity or enforceability of any Patent Right;

 

		d.          As of the Effective Date, Licensor is unaware of any infringement or possible infringement
                                                                                of any Patent Right by any third party and has not asserted any claim against, or sent any notice of infringement to, any
                                                                                third party;

 

		e.          Exhibit A includes all pending patent applications
and issued patents licensed by Licensor from UURF or developed by Licensor using patents licensed from UURF that relate to the
Field of Use; and

 

		             This Agreement sets forth in full each and every obligation
owed by Licensee as a result of the UURF License; and Licensee has no other duty or obligation to Licensor, UURF or any Third
Party as a result of the UURF License except as stated herein.

 

	16.3	Each Party offers no warranty that the grant of any
rights or licenses under this Agreement will result in the discovery or successful commercialization of any Licensed Product or
Licensed Method in the Field of Use.

 

	16.4	EXCEPT AS EXPRESSLY PROVIDED IN THIS ARTICLE 16, THE
PARTIES ACKNOWLEDGE AND AGREE THAT LICENSOR HAS MADE NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED
TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

	16.5	IN NO EVENT SHALL EITHER PARTY BE HELD RESPONSIBLE
FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OF PATENT RIGHTS, EVEN IF IT IS ADVISED IN ADVANCE OF
THE POSSIBILITY OF SUCH DAMAGES.

 

	16.6	Nothing in this Agreement shall be construed as:

 

		a.          a warranty or representation by Licensor as to the
validity or scope of any Patent Rights.

 

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CONFIDENTIAL DOCUMENT

 

		b.          a warranty or representation by Licensor that anything made, used, sold or otherwise
                                                                                disposed of pursuant to any license granted under this Agreement is or will be free from infringement of intellectual
                                                                                property rights of third parties.

 

		c.          an obligation by Licensor to bring or prosecute actions or suits against third parties for
                                                                                patent infringement.

 

		d.          conferring by implication, estoppel or otherwise any
license or rights under any patents of Licensor other than Patent Rights.

 

	16.7	Any breach of the representations or warranties made
by Licensor in this Article 16 which results in a loss of rights to develop, manufacture, have manufactured, sell, have sold,
or use Licensed Products or Licensed Methods in the Field of Use shall entitle Licensee to a refund of all payments made to Licensor
as consideration for the rights granted under this Agreement, and said refund shall be deemed liquidated damages and the sole
remedy available to Licensee for breach or violation of any provisions contained in this Article 16.

 

ARTICLE 17 INFRINGEMENT

 

	17.1	If either party learns of a claim of infringement
of any of Licensor's Patent Rights licensed under this Agreement, that party shall give written notice of such claim to the other
party. In the event Licensor fails to abate the infringing activity within [***] after such
written notice or to bring legal action against the third party within such [***] period,
Licensee may bring suit for patent infringement. No settlement, consent judgment or other voluntary final disposition of the suit
may be entered into without the consent of Licensor, which consent shall not be unreasonably withheld. Nothing in this Section
17.1 shall obligate either party to commence any lawsuit or other proceeding against any third party.

 

	17.2	Any legal action brought under Section 17.1 shall
be at the expense of the party to this Agreement that commenced the legal action or filed the first cross-claim in an action brought
by a third party, hereinafter referred to as the "Litigating Party". Any damages or costs recovered by Licensee in connection
with a legal action filed by it hereunder, provided that the Litigating Party is reimbursed for its costs and expenses reasonably
incurred in the lawsuit, shall be paid to Licensee and deemed Net Sales, and Licensee shall pay a Royalty to Licensor thereon
in the manner provided by Article 4 of this Agreement. Any damages or costs recovered by Licensor in the Field of Use in connection
with a legal action filed by it hereunder, provided that the Litigating Party is reimbursed for its costs and expenses reasonably
incurred in the lawsuit, shall be paid to Licensee and deemed Net Sales, and Licensee shall pay a Royalty to Licensor thereon
in the manner provided by Article 4 of this Agreement.

 

	17.3	Licensee and Licensor shall cooperate with each other
in litigation proceedings instituted hereunder, provided that such cooperation shall be at the expense of the litigating Party,
and such litigation shall be controlled by the litigating Party.

 

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CONFIDENTIAL DOCUMENT

 

ARTICLE 18 INSURANCE 

 

	18.1	Insurance Requirements. Beginning at the time
any Licensed Product and/or Licensed Method is to be used in human clinical trials and/or is being distributed or sold (including
for the purpose of obtaining any required regulatory approvals) by Licensee or Affiliate, Licensee will, at its sole cost and
expense, procure and maintain commercial general liability insurance issued by an insurance carrier with an A.M. Best rating of
 "A" or better in amounts not less than $[***] per incident and $[***]
annual aggregate. Licensee will use reasonable efforts to have Licensor, the University of Utah, UURF, and their respective
officers, employees and agents, named as additional insureds. All rights of subrogation will be waived against Licensor and its
insurers. Such commercial general liability insurance will provide (i) product liability coverage; (ii) broad form contractual
liability coverage for Licensee's indemnification under this Agreement; and (iii) coverage for litigation costs. The specified
minimum insurance amounts will not constitute a limitation on Licensee's obligation to indemnify Licensor, the University of Utah,
and their respective officers, employees and agents, under this Agreement.

 

	18.2	Evidence of Insurance and Notice of Changes.
Licensee will provide Licensor with written evidence of such insurance upon request by Licensor. Licensee will provide Licensor
with written notice of at least [***] prior to the cancellation, non-renewal, or material
change in such insurance.

 

	18.3	Continuing Insurance Obligations. Licensee
will maintain such commercial general liability insurance beyond the expiration or termination of this Agreement during (i) the
period that any Licensed Product(s) and/or Licensed Method(s) developed pursuant to this Agreement is being commercially distributed
or sold by Licensee, Affiliate, or agent of Licensee; and (ii) for five (5) years after such period.

 

ARTICLE 19 WAIVER

 

No waiver by either party
hereto of any breach or default of any of the covenants or agreements herein set forth shall be deemed a waiver as to any subsequent
and/or similar breach or default.

 

ARTICLE 20 ASSIGNABILITY

 

This Agreement is not assignable
or otherwise transferable (including by operation of law, merger, or other business combination) by Licensee without the prior
written consent of the Licensor, not to be unreasonably withheld.

 

ARTICLE 21
INDEMNIFICATION BY LICENSEE

 

	21.1	Licensee shall indemnify, hold harmless and defend Licensor, UURF, the University of
                                                 Utah, and their respective officers, employees and agents, against any and all third party claims, suits, losses, damages,
                                                 costs, liabilities, fees and expenses (including reasonable fees of attorneys) resulting from or arising out of exercise of:
                                                 (a) any license granted under this Agreement; or (b) any act, error, or omission of Licensee, its agents, employees or Affiliates except where such claims,
suits, losses, damages, costs, fees, or expenses result solely from the negligent acts or omissions, or misconduct of the Licensor,
UURF, the University of Utah and their respective affiliates, officers,employees or agents. Licensee shall give Licensor timely
notice of any claim or suit instituted of which Licensee has knowledge that in any way, directly or indirectly, affects or might
affect Licensor and the University of Utah Research Foundation and Licensor shall have the right at its own expense to participate
in the defense of the same.

 

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	21.2	Licensor shall indemnify, hold harmless and defend
Licensee, its Affiliates and their respective officers, employees and agents, against any and all third party claims, suits, losses,
damages, costs, liabilities, fees and expenses (including reasonable fees of attorneys) resulting from or arising out of any act,
error, or omission of Licensor, its agents, employees or Affiliates, except where such claims, suits, losses, damages, costs,
fees, or expenses result solely from the negligent acts or omissions, or misconduct of the Licensee, its Affiliates, officers,
employees or agents. Licensor shall give Licensee timely notice of any claim or suit instituted of which Licensor has knowledge
that in any way, directly or indirectly, affects or might affect Licensee or its Affiliates and Licensee shall have the right
at its own expense to participate in the defense of the same.

 

ARTICLE 22 NOTICES

 

The parties will give the other party timely
and current information about the person and location/address to which notices and payments are to be given and made hereunder.
Any payment, notice or other communication required or permitted to be given to either party hereto shall be in writing and shall
be deemed to have been properly given and effective: (a) on the date of delivery if delivered in person during recipient's normal
business hours; or (b) on the date of attempted delivery if delivered by courier, express mail service or first-class mail, registered
or certified. Such notice shall be sent or delivered to the respective addresses given below or to such other address as either
party shall designate by written notice given to the other party as follows:

 

	 	BioTime, Inc.
	 	1301 Harbor Bay Parkway
	 	Alameda, CA 94502
	 	Attn: Chief Commercial Officer.

 

	 	Jade Therapeutics, Inc.
	 	675 Arapeen Drive
	 	Suite 302
	 	Salt Lake City, Utah 84108
	 	Attn: Chief Executive Officer

 

ARTICLE 23 GOVERNING LAW

 

This Agreement shall be interpreted
and construed in accordance with the laws of the State of California, without application of any principles of choice of laws.

 

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CONFIDENTIAL
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ARTICLE 24 RELATIONSHIP OF PARTIES

 

In assuming and performing the respective
obligations under this Agreement, Licensee and Licensor are each acting as independent parties and neither shall be considered
or represent itself as a joint venture, partner, agent or employee of the other.

 

ARTICLE 25 DISPUTE RESOLUTION

 

Any and all claims, disputes
or controversies arising under, out of, or in connection with this Agreement, including any dispute relating to patent validity
or infringement, shall be resolved through arbitration if the parties mutually consent in writing, or through any judicial proceeding
either in the courts of the State of California or in the United States District Court for the District of Northern California,
to whose jurisdiction for such purposes Licensee and Licensor each hereby irrevocably consents and submits. All costs and expenses,
including reasonable attorneys' fees, of the prevailing party in connection with resolution of a dispute by arbitration or litigation
of such controversy or claim shall be borne by the other party.

 

ARTICLE 26 GENERAL PROVISIONS

 

	26.1	The headings of the several sections are inserted
for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

 

	26.2	This Agreement shall not be binding upon the parties
until it has been signed below by or on behalf of each party.

 

	26.3	No amendment or modification of this Agreement shall
be valid or binding upon the parties unless made in writing and signed by both parties hereto.

 

	26.4	This Agreement embodies the entire understanding of
the parties and supersedes all previous communications, representations or understandings, either oral or written, between the
parties relating to the subject matter thereof. For clarity, the parties agree that (i) the Exclusive Sub-license Agreement between
Jade Therapeutics, Inc. and BioTime, Inc. dated June 25, 2012, as amended, was in full force and effect from June 25, 2012 up
to the Effective Date; and (ii) is terminated and superseded by this Agreement as of the Effective Date.

 

	26.5	The provisions of this Agreement are severable, and
in the event that any provision of this Agreement shall be determined to be invalid or unenforceable under any controlling body
of the law, such invalidity or unenforceability shall not in any way affect the validity or enforceability of the remaining provisions
hereof.

 

	26.6	The parties acknowledge and agree that this Agreement is a contract under which
                                                 Licensor is a licensor of intellectual property as provided in Section 365(n) of Title 11, United States Code (the
                                                 "Bankruptcy Code"). Licensor acknowledges that if Licensor, as a debtor in possession, or a trustee in bankruptcy
                                                 in a case under the Bankruptcy Code (the "Bankruptcy Trustee") rejects this Agreement, Licensee may elect to retain
                                                 its rights under this Agreement as provided in Section 365(n) of the Bankruptcy Code. Upon the written request of Licensee to
                                                 Licensor, Licensor will not interfere with the rights of Licensee as provided in this Agreement.

 

    	 	22	 

     

    

 

CONFIDENTIAL DOCUMENT

 

	26.7	This Agreement may be signed in counterparts, each
of which When taken together shall constitute one fully executed document. Each individual executing this Agreement on behalf
of a legal Entity does hereby represent and warrant to e411 other person so signing that he or she has been duly authorized to
execute this Agreement on behalf of such Entity.

 

		IN WITNESS WHEREOF, Licensor and Licensee have executed this Agreement by their respective
                                                                                officers hereunto duly authorized, on the day and year hereinafter written.

 

	“Licensee”	 	“Licensor”
	 	 	 
	JADE THERAPEUTICS, INC.	 	BIOTIME, INC.
	 	 	 
	By:	/s/ Arthur Klausner	 	By:	/s/ William P. Tew, PhD
	 	(Signature)	 	 	(Signature)
	 	 	 
	Name:	Arthur Klausner	 	Name:	 William P. Tew, PhD
	 	 	 
	Title:	Chief Executive Officer	 	Title:	Chief Commercial Officer
	Date:	Sept. 12, 2013	 	Date:	12 Sept. ‘13

 

    	 	23	 

     

    

 

CONFIDENTIAL
DOCUMENT

 

Exhibit A

Patent Rights

 

	University No.	Country/ 

Territory	Application/ 

Patent No.	Title	Inventor(s)
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]
	[***]	[***]	[***]	[***]	[***]

 

    	 	24	 

     

    

 

CONFIDENTIAL DOCUMENT

 

EXHIBIT "B"

 

Due Diligence

Jade Therapeutics

 

	Date:	 	 
	 	 
	Period Covering:    	 	 
	 

 

	Progress Regarding Specific Due Diligence Milestones:
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

 

	Projected Date of First Sale:	 	 

 

Please provide the commercial name of
any FDA-approved products, utilizing this invention, that have first reached the market during the designated reporting period.
This information is necessary for federal funding reporting requirements.

 

	Product Name(s):	 	 
	 	 	 
	 	 	 
	 	 	 

 

	 	  Yes	 	No	In the designated reporting period, did your
    company have 500 or more employees? This information is required to determine and report large or small entity status in the United States.
	 	 	 	 	
	 	  Yes	 	No	In the designated reporting period, did your
    company have more than 50 employees? This information is required to determine
and report large or small entity status in Canada

 

    	 	25	 

     

    

 

CONFIDENTIAL DOCUMENT

 

EXHIBIT "C"

 

Quarterly Royalty Report

Jade Therapeutics Sublicense

 

	Date:	 	 	 

 

	Period Covered:	 	 

 

Royalties

 

	
	A.   Number of units sold:	 	 
	B.   Price per unit:	 	 
	C.   Gross sales amount (AxB):	 	 
	D.   Deductions:	 	 

 

	 	[***]) [***] [***] [***]	 	 
	 	Total Deductions	 	 

	E.    Net Sales (C-D):	 	 
	F.    Total royalty due (___% of E):	 	 
	G.   Total royalty payment made:Exhibit 10.21

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL
TO THE REGISTRANT AND (II) WOULD BE COMPETITIVELY HARMFUL TO THE REGISTRANT IF PUBLICLY DISCLOSED. REDACTED PORTIONS OF THIS EXHIBIT
ARE MARKED BY [***].

 

	 	Jade Therapeutics Inc.
	 	 
	 	Innovations in Ophthalmic Drug Delivery

 

September 18, 2015

 

BioTime, Inc.

1301 Harbor Bay Parkway

Alameda, CA 94502

Attn: Adi Mohanty, Chief Operating Officer

 

Dear Adi:

 

This letter shall serve as "Amendment
Number One" to the Exclusive Sub-License Agreement dated September 12, 2013 ("Agreement") between BioTime, Inc.
("Licensor") and Jade Therapeutics, Inc. ("Licensee").

 

Licensor and Licensee hereby agree as follows:

 

		1.	All defined terms in this Amendment Number One shall
have the same meaning(s) set forth in the Agreement.

 

		2.	This Amendment Number One is effective as of September
1, 2015.

 

		3.	Article 5.1(a) of the Agreement is hereby amended to
read as follows

 

		a.	By [***], raise [***] dollars ($[***]) in operating capital
through equity financing; debt that is convertible into equity; provided that such debt is not secured by a security interest
or other lien on any of Licensee's assets; or funding for research and development or clinical trials from third parties through
joint development agreements or similar arrangements, excluding any and all monies provided to or on behalf of Licensee by the
Original Investors;

 

		4.

                                                       
	Article 5.1(b) of the Agreement is hereby amended to read as follows: "By December 31, 2015

 

		(i)	submit to the United States Food and Drug Administration (FDA) an Investigational New Drug Application
to commence a Phase I or Phase IIa clinical trial of a Licensed Product within the Field of Use;

 

		(ii)	provide Licensor with market research data as reasonably requested by Licensor regarding the
projected commercial sales in the United States for the Licensed Product in the indication for use in the aforesaid clinical trial;
and

 

     

     

    

 

		(iii)	by February 28, 2016 provide to Licensor in writing a remediation plan for achieving Notified
Body ISO 13484 certification ("Remediation Plan"). The 675 Arapeen Drive, Suite 302, Salt Lake
City, UT 84108 Parties will then discuss in good
faith the reasonableness of the timing of the Remediation Plan, and whether it is commercially acceptable. To the extent that
the Parties agree that the timetable set forth in Remediation Plan is commercially acceptable, such agreement not to be unreasonable
withheld, this milestone will be deemed to have been achieved. If the Remediation Plan, if any, is not acceptable, then Licensee
may instead achieve this milestone by providing to Licensor, on or before April 1, 2016, written confirmation of receipt of "Positive
Results" of a Notified Body ISO 13485 audit for the design, development, and manufacture of the Licensed Product. For purposes
of this Amendment Number One, "Positive Results" shall mean that there are no material observations that prevent 13485
certification for Licensed Product."

 

All other terms and conditions of the Agreement shall remain
in full force and effect.

 

This Amendment Number One may be signed in counterparts,
each of which when taken together shall constitute one fully executed document. Each individual executing this Agreement on behalf
of a legal Entity does hereby represent and warrant to each other person so signing that he or she has been duly authorized to
execute this Agreement on behalf of such Entity.

 

Please indicate your agreement to the terms set forth in this
letter by signing two copies of this letter, returning one signed to copy to me by email to following address: arthunklausnergadetherapeutics.com;
and by overnight courier to Jade Therapeutics, Inc., 675 Arapeen Drive, Suite 302, Salt Lake City, UT 84108-1228, Attn: Chief Executive
Officer, and retaining one copy for your records.

 

Many thanks.

 

     

     

    

 

Very truly yours,

 

		/s/ Arthur Klausner
	 	 
		Arthur Klausner
		Chief Executive Officer
		Jade Therapeutics, Inc.

 

Acknowledged and agreed by Licensor:

 

BioTime, Inc.

 

	Name:	Adi Mohanty	 
	Signature:	 /s/ Adi Mohanty	 
	Title:	 COO	 
	Date:	Sept. 22, 2015

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