Document:

Exhibit 4.6

 

EXECUTION VERSION

CONFIDENTIAL

 

LICENSE AGREEMENT

 

by and between

 

NLS PHARMACEUTICS LTD. 

 

And

 

NOVARTIS PHARMA AG

 

dated

 

11 March 2021

 

     

    

    

 

LICENSE AGREEMENT

 

This LICENSE AGREEMENT
(this “Agreement”) is made as of 11 March 2021 (the “Effective Date”), by and between Novartis Pharma
AG, a company organized under the laws of Switzerland and located at Lichtstrasse 35, CH-4056 Basel, Switzerland (“Novartis”)
and NLS Pharmaceutics Ltd., a company organized under the laws of Switzerland and located at Alter
Postplatz 2, CH-6370 Stans, Switzerland (“NLS”). Novartis and NLS are each referred to
individually as a “Party” and together as the “Parties.” 

 

RECITALS

 

WHEREAS, Novartis and/or its
Affiliates own or Control the data relevant to mazindol and

 

WHEREAS, NLS wishes to obtain
from Novartis, and Novartis wishes to grant to NLS, certain licenses of data relevant to mazindol in the Field with which NLS desires
to research, develop, market, sell, offer for sale, distribute, manufacture and have manufactured Licensed Products in the Field, as set
forth herein.

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements herein contained, the Parties hereby agree as follows:

 

		1.	DEFINITIONS AND INTERPRETATION

 

1.1 Definitions.
The capitalized terms used in this Agreement shall have the following meanings:

 

“Accounting Standards”
means, with respect to NLS, IFRS (International Financial Reporting Standards), as consistently applied by NLS and its Affiliates. NLS
shall promptly notify Novartis in the event that it changes the Accounting Standards pursuant to which its records are maintained, it
being understood that NLS may only use internationally recognized accounting principles (i.e., IFRS or US GAAP).

 

“Affiliate”
means, with respect to a Party, any Person that directly or indirectly controls, is controlled by, or is under common control with that
Party. For the purpose of this definition, “control” means: (a) direct or indirect ownership of more than fifty percent (50%)
of the shares of stock entitled to vote for the election of directors, in the case of a corporation; (b) more than fifty percent (50%)
of the equity interest in the case of any other type of legal entity or status as a general partner in any partnership; (c) any other
arrangement whereby the entity or Person controls or has the right to control the board of directors or equivalent governing body of a
corporation or other entity; (d) if a Party has rights to variable returns from its involvement with an entity or Person and has the ability
to affect its returns and cause the direction of the management or policies of such entity or Person through its power over such entity
or Person; or (e) the ability to cause the direction of the management or policies of a corporation or other entity. In the case of entities
organized under the Laws of certain countries, the maximum percentage ownership permitted by Law for a foreign investor may be less than
fifty percent (50%), and in such case such lower percentage shall be substituted in the preceding sentence, provided that such foreign
investor has the power to direct the management and policies of such entity.

 

“Agreement”
is defined in the Preamble.

 

     

    

    

 

“Auditor”
is defined in Section 7.5(b).

 

“Business Day”
means a day other than (a) a Saturday or a Sunday; (b) a bank or other public holiday in Basel and Stans, Switzerland.

 

“Calendar Quarter”
means the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September 30 and December 31.

 

“Calendar Year”
means a period of twelve (12) consecutive calendar months ending on December 31.

 

“cGCP”
means current Good Clinical Practices as defined in 21 C.F.R. § 50, 54, 56, 312 and 314, and applicable ICH standards as each may
be amended from time to time, and further including any analogous set of regulations, guidelines or standards as defined, from time to
time, by any relevant Regulatory Authority having jurisdiction over the Development, use, Manufacture, and/or Commercialization of the
Licensed Products.

 

“cGLP”
means current Good Laboratory Practices as defined in 21 C.F.R. § 58 and applicable FDA then-current laboratory review and inspection
requirements, as each may be amended from time to time, and further including any analogous set of regulations, guidelines or standards
as defined, from time to time, by any relevant Regulatory Authority having jurisdiction over the Development, use, Manufacture, and/or
Commercialization of the Licensed Products.

 

“cGMP”
means current Good Manufacturing Practices pursuant to 21 C.F.R. § 211, et seq., and applicable ICH standards, as each may be amended
from time to time, and further including any analogous set of regulations, guidelines or standards as defined, from time to time, by any
relevant Regulatory Authority having jurisdiction over the Development, use, Manufacture, and/or Commercialization of the Licensed Products.

 

“Change of Control”
is defined in Section 15.2(c)(ii).

 

“Combination Product”
is defined in the definition of “Net Sales”.

 

“Commercialize”
means any and all activities directed toward commercialization of the Licensed Products, including pre-launch, launch and post-launch
marketing, promoting, detailing, distributing, importing, exporting, selling or offering to sell a Licensed Product, including Manufacturing
activities in support of the foregoing. “Commercialization” and “Commercializing” shall have a corresponding
meaning.

 

“Compliance Standards”
is defined in Section 8.4(a).

 

“Compound”
means mazindol.

 

“Control”
or “Controlled” means, with respect to any proprietary, trade secret or other data or information, the legal authority
or right (whether by ownership, license or otherwise) of a Party or its Affiliates to grant a license or a sublicense of data to the other
Party or its Affiliates or provide such data or other information to such other Party or its Affiliates without breaching the terms of
any agreement with a Third Party, or misappropriating the proprietary or trade secret information of a Third Party or without giving rise
to any financial or other obligation to any Third Party.

 

    2

    

    

 

“Develop”
or “Development” means, with respect to the Compound or any Licensed Products, drug research and development activities,
including, without limitation, process development, test method development and stability testing, assay development and audit development,
toxicology, formulation, pharmaceutical development, quality assurance/quality control development, statistical analysis, clinical studies,
process development, packaging development, product validation activities, regulatory affairs, and the preparation, filing and prosecution
of Regulatory Filings with Regulatory Authorities, including, without limitation, the EMA and the FDA, in order to obtain the Regulatory
Approval for any such Licensed Products in a particular country.

 

“Effective Date”
is defined in the Preamble.

 

“EMA” means
the European Medicines Agency or any successor entity thereto.

 

“FDA” means
the United States Food and Drug Administration or any successor entity thereto.

 

“Field”
means autism, attention deficit hyperactivity disorder, narcolepsy type 1 and type 2, idiopathic hypersomnia, Klein-Levine syndrome and
substance abuse disorder.

 

“First Commercial
Sale” means, with respect to a Licensed Product, the first arm’s length sale to a Third Party (other than an Affiliate
or sublicensee) in a particular country after the Regulatory Approval of such Licensed Product has been obtained in such country, for
use of such Licensed Product in the Field in the Territory.

 

“Force Majeure”
means any unavoidable and unforeseeable event which is beyond the reasonable control of the Party affected, including but not limited
to the following events: earthquake, storm, flood, fire or other acts of nature, epidemic, war (whether or not declared), riot, public
disturbance, strike or lockouts, government actions, terrorist attack or the like.

 

“Governmental Entity”
means any court, agency, authority, department, legislative or regulatory body or other instrumentality of any government, country, or
national, federal, state, provincial, regional, county, city or other political subdivision of any such government or country, a supranational
organization of which any such government or country is a member, or quasi-governmental authority or self-regulatory organization of competent
authority.

 

“ICH” means
The International Conference on Harmonisation of Technical Requirements for Registration of Pharmaceuticals for Human Use.

 

“Improvements”
is defined in Section 5.1(b).

 

“Improvement Patents”
is defined in Section 5.3.

 

“IND” means
an Investigational New Drug application in the United States filed with the FDA or the corresponding application for the investigation
of Licensed Products in any other country or group of countries, as defined in the applicable Law and filed with the Regulatory Authority
of a given country or group of countries.

 

“Information”
means all proprietary information and data of a financial, commercial, clinical or technical nature, including Know-How, owned or Controlled
by a Party, which has been supplied or otherwise made available to the other Party or its Affiliates, under this Agreement or under the
CDA executed between the Parties on July 22, 2017 and whether made available orally (if and to the extent a written summary of such oral
information is made available within thirty (30) days after the oral information is made available), in writing or in electronic form,
including information comprising or relating to concepts, discoveries, inventions, data, designs or formulae.

 

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“Insolvency Event”
means, in relation to a Party, any one of the following: (a) such Party is the subject of voluntary or involuntary bankruptcy proceedings
instituted on behalf of or against such Party (except for involuntary bankruptcy proceedings which are dismissed within one-hundred and
twenty (120) days); (b) an administrative receiver, receiver and manager, interim receiver, custodian, sequestrator or similar officer
is appointed for substantially all of the assets of such Party; (c) a resolution to wind up such Party shall have been passed, other than
a resolution for the solvent reconstruction or reorganization of such Party; or (d) a resolution shall have been passed by such Party’s
board of directors to make an application for an administration order or to appoint an administrator for substantially all of the assets
of such Party.

 

“Intellectual Property
Rights” means all rights in Patents, rights to inventions, copyright and related rights, rights in trademarks, trade names and
domain names, rights in designs, rights in computer software, database rights, rights in Information, Know-How and any other intellectual
property rights, in each case whether registered or unregistered and including all applications (or rights to apply) for, and renewals
or extensions (for their full term) of, such rights and all similar or equivalent rights or forms of protection which subsist or will
subsist now or in the future in any part of the world.

 

“Intermediaries”
is defined in Section 8.4(b).

 

“Know-How”
means all existing and available technical information, know-how and data, including inventions (whether patentable or not), discoveries,
trade secrets, package specifications, chemical specifications, analytical test methods, stability data, testing data, product specifications,
instructions, processes, formulation information, validation documents, materials (including all biological and chemical materials), drawings,
formulae, reports, and other technology and techniques including all biological, chemical, pharmacological, toxicological, pharmaceutical,
physical and analytical, clinical safety, safety data, preclinical and clinical data, and expertise and other technology applicable to
compounds, molecules, cell lines, formulations, compositions, products or to their manufacture, development, registration, use or Commercialization
or methods of assaying or testing them or process for their manufacture, formulations containing them, compositions incorporating or comprising
them, expertise and information, regulatory filings and copies thereof, relevant to the development, manufacture, use or Commercialization
of and/or which may be useful in studying, testing, development, production or formulation of products, or intermediates for the synthesis
thereof.

 

“Knowledge”
means to the knowledge of the employees of Novartis listed on Schedule C.

 

“Law” means
any statute, law, regulation, rule, code, order, ordinance, judgment or requirement of a Governmental Entity.

 

“Legal Proceeding”
means any action, suit, litigation, arbitration, proceeding (including any civil, criminal, administrative, investigative or appellate
proceeding), hearing, inquiry, audit, examination or investigation commenced, brought, conducted or heard by or before, or otherwise involving,
any court or other Governmental Entity or any arbitrator or arbitration panel.

 

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“Licensed Data”
means data that is listed on Schedule B and, provided, however, that notwithstanding anything else in this Agreement or
on Schedule B, the documentation listed in Schedule B shall be provided in two stages: (i) within 30 days of the Effective Date for documents
on Schedule B which are in electronic format and readily available/accessible, and (ii) for all other documents on Schedule B, when conditions
related to the COVID-19 pandemic have subsided sufficiently so that Novartis staff has the capability to physically extract documents
from archives which are in paper format and have not yet been digitized.

 

“Licensed Know-How”
means the Know-How relevant to Compound or Licensed Product, but only to the extent that such Know-How is (a) owned and/or Controlled
by Novartis and/or its Affiliates as of the Effective Date, (b) is necessary to Develop, Manufacture or have Manufactured, and/or Commercialize
any Licensed Products in the Field in the Territory, including to Manufacture or have Manufactured the Compound in the Field in the Territory,
and (c) is provided to NLS pursuant to Article 3.

 

“Licensed Product(s)”
means one (1) or more pharmaceutical, therapeutic or diagnostic products containing the Compound as an active ingredient alone or in combination
with other active ingredients.

 

“Licensed Product
Activities” is defined in Section 4.1.

 

“Losses”
is defined in Section 9.1.

 

“Manufacture”
or “Manufacturing” means any and all activities directed to the manufacture, receipt, incoming inspections, storage
and handling of the Compound and/or any Licensed Products, and the manufacture, processing, formulation, fill, finish, packaging, labeling,
warehousing, quality control testing (including in-process, release and stability testing), supplying, shipping, and release thereof,
including manufacturing process development, scale-up, yield and other improvements, and validation and other testing, as well as recordkeeping,
data and database development, management, storage and retention activities relating to any of the foregoing in this definition.

 

“mazindol”
means the active pharmaceutical ingredient mazindol.

 

“Milestone”
is defined in Section 6.2.

 

“Milestone Payments”
is defined in Section 6.2.

 

“Net Sales”
means the net sales recorded by NLS or any of its Affiliates or sublicensees (sublicensees excludes distributors and wholesalers) for
any Licensed Products sold to Third Parties other than sublicensees, as determined in accordance with NLS’ Accounting Standards
as consistently applied. The deductions booked on an accrual basis by NLS and its Affiliates under its Accounting Standards to calculate
the recorded net sales from gross sales include, without limitation, the following:

 

		(a)	normal trade and cash discounts;

     

		(b)	amounts repaid or credited by reasons of defects, rejections,
recalls or returns;
	 	 	 

		(c)	rebates and chargebacks to customers and Third Parties (including,
without limitation, Medicare, Medicaid, managed healthcare and similar types of rebates);

 

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		(d)	amounts provided or credited to customers through coupons and other discount programs;
	 	 	 

		(e)	delayed ship order credits, discounts or payments related to the impact of price increases between purchase
and shipping dates or retroactive price reductions;
	 	 	 

		(f)	fee for service payments to customers for any non-separable services (including compensation for maintaining
agreed inventory levels and providing information); and
	 	 	 

		(g)	other reductions or specifically identifiable amounts deducted for reasons similar to these listed above
in accordance with the Accounting Standards.
	 	 	 

With respect to the calculation
of Net Sales:

 

		(w)	Net Sales only include the value charged or invoiced on the first arm’s length sale to a Third Party.
Sales between or among NLS and its Affiliates and between NLS and its sublicensees shall be disregarded for purposes of calculating Net
Sales;
	 	 	 

		(x)	if a Licensed Product is delivered to the Third Party before being invoiced (or is not invoiced), Net
Sales will be calculated at the time all the revenue recognition criteria under the Accounting Standards are met; and
	 	 	 

		(y)	wholesalers and distributors shall not be considered as sublicensees.
	 	 	 

In the event that a Licensed
Product is sold in a finished dosage form containing the Compound in combination with one (1) or more other active ingredients (a “Combination
Product”), Net Sales will be calculated by multiplying the Net Sales of the Combination Product by a fraction, A/(A+B), where
“A” is the weighted (by sales volume) average sale price in the relevant country of such Licensed Product containing the Compound
as the sole active ingredient in finished dosage form, and “B” is the weighted average sale price (by sales volume) in that
country of the product(s) containing the other component(s) as the sole active ingredient(s) in finished dosage form. Regarding prices
comprised in the weighting average price when sold separately referred to above, if these are available for different dosages from the
dosages of Compound and other active ingredient components that are included in the Combination Product, then Novartis shall be entitled
to make a proportional adjustment to such prices in calculating the Net Sales of the Combination Product. If the weighted average sale
price cannot be determined for the Product or other product(s) containing the single Compound or component(s), the calculation of Net
Sales for Combination Products will be agreed by the Parties based on the relative value contributed by each component (each Party’s
agreement not to be unreasonably withheld or delayed).

 

“Net Sales Milestone
Payment Amount” is defined in Section 6.4.

 

“NLS” is
defined in the Preamble.

 

“Novartis”
is defined in the Preamble.

 

“Novartis Indemnitees”
is defined in Section 11.1.

 

“Party”
and “Parties” are defined in the Preamble.

 

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“Patents”
means any and all (a) granted patents; (b) pending patent applications, including all provisional applications, divisionals, continuations,
substitutions, continuations-in-part and renewals, and all patents granted thereon; (c) patents-of-addition, re-examinations, reissues
and extensions or restorations by existing or future extension or restoration mechanisms, including patent term adjustments, patent term
extensions, supplementary protection certificates or the equivalent thereof; (d) inventor’s certificates; and (e) other forms of
government-issued rights substantially similar to any of the foregoing.

 

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

 

“Phase 3 Clinical
Trial” means a pivotal clinical study with a defined dose or a set of defined does of a pharmaceutical product in patients designed
to ascertain the efficacy and safety of such product for the purpose of enabling the preparation and submission of applications for Regulatory
Approval.

 

“Regulatory Approval”
means, with respect to a Licensed Product, any approval (notwithstanding the indication), registration, license or authorization from
a Regulatory Authority to market and sell such Licensed Product in the Field in one or more countries in the Territory. For clarity, Regulatory
Approval does not include any approvals related to pricing and/or reimbursement of a Licensed Product.

 

“Regulatory Authority”
means, in a particular country or regulatory jurisdiction, any applicable Governmental Entity involved in granting Regulatory Approval
in such country or regulatory jurisdiction, such as the FDA or the EMA.

 

“Regulatory Filings”
means, with respect to a Licensed Product, any submission to a Regulatory Authority for any appropriate Regulatory Approval.

 

“Sales Report”
is defined in Section 7.4.

 

“Term”
is defined in Section 12.1(a).

 

“Territory”
means worldwide with the exception of Japan, subject to Section 2.1.

 

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

 

“Upfront Payment”
is defined in Section 6.1.

 

“US Dollars”
or “US$” or “United States Dollars” means the lawful currency of the United States of America.

 

1.2 Interpretation.
In this Agreement unless otherwise specified:

 

		(a)	“includes” and “including” shall mean respectively includes and including without
limitation;
	 	 	 

		(b)	words denoting the singular shall include the plural and vice versa and words denoting any gender shall
include all genders;

 

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		(c)	the Schedules and other attachments form part of the operative provision of this Agreement and references
to this Agreement shall, unless the context otherwise requires, include references to the Schedules and attachments;
	 	 	 

		(d)	references to Articles and Sections are to articles and sections of this Agreement unless otherwise specified;
	 	 	 

		(e)	a reference to an enactment or statutory provision is a reference to it as it may from time to time be
amended, modified, consolidated, repealed or reenacted and shall include any orders, regulations, instruments or other subordinate legislation
made under the relevant statute;
	 	 	 

		(f)	the headings in this Agreement are for information only and shall not be considered in the interpretation
of this Agreement;
	 	 	 

		(g)	any reference to “writing” or “written” includes faxes and any legible reproduction
of words delivered in permanent and tangible form (but does not include email);
	 	 	 

		(h)	the words “hereof”, “herein” and “hereunder” and words of like import
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; and
	 	 	 

		(i)	the Parties agree that the terms and conditions of this Agreement are the result of negotiations between
the Parties and that this Agreement shall not be construed in favor of or against any Party by reason of the extent to which any Party
participated in its preparation.

 

		2.	LICENSE

 

2.1 License
Grant from Novartis to NLS.

 

Subject to the terms and conditions
of this Agreement, Novartis grants to NLS a non-exclusive (except for the USA), sublicenseable (subject to Section 2.2), assignable
(subject to Section 15.2) license under the Licensed Data to use the Licensed Data solely to Develop, Manufacture or have Manufactured
and/or Commercialize Licensed Products including the right to Manufacture or have Manufactured the Compound in the Field in the Territory.
For the avoidance of doubt, for the USA, such license shall be exclusive; provided, however, that Novartis agrees not to grant such a
license in the future for any other country in the Territory and Novartis acknowledges that with respect to Canada, it may have granted
such license to a company in the past, and it believes such company is now dissolved, and in addition, with respect to France, it may
have granted such license as well. Notwithstanding the foregoing, to the Knowledge of Novartis, other than with respect to the now dissolved
company in Canada and with respect to France, Novartis has not previously licensed the use of such data for the Field in any country in
the Territory, but if such license does exist, NLS shall have no right to make any legal claim of any kind against Novartis based on this
Agreement or otherwise.

 

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		2.2	Sublicensing.

 

Any sublicense by NLS will
be subject to a written agreement that (i) requires the sublicensee to comply with all applicable obligations of this Agreement and (ii)
is not in conflict with any term of this Agreement. NLS shall provide Novartis with a copy of such sublicense. NLS shall undertake to
enforce the provisions of any such sublicense and shall remain responsible and jointly and severally liable with the sublicensee to Novartis
for any breach of this Agreement which is caused by any acts or omissions of its sublicensees as if they were the acts or omissions of
NLS under this Agreement.

 

 

		2.3	Reservation of Rights by Novartis.

 

Without prejudice to any other
rights that Novartis and/or its Affiliates may have, NLS agrees that Novartis and/or its Affiliates retains or shares full and unencumbered
rights to exploit or have exploited the Compound in the Territory outside the Field. Novartis also retains the right to use and reference
the Licensed Data and the Licensed Know-How to the extent it is necessary or useful for the defense, correspondence or prosecution of
any legal or regulatory proceeding or investigation in which Novartis or any of its Affiliates is involved. NLS acknowledges and agrees
that as between the Parties, Novartis and/or its Affiliates are the sole owner(s) of all right, title and interest in and to Compound
as well as all Licensed Data, and NLS has not acquired, and shall not acquire, any right, title or interest in or to the Compound and
Licensed Data pursuant to this Agreement other than the rights expressly set forth in this Agreement. For the avoidance of doubt, NLS
hereby acknowledges and agrees that it or any of its Affiliates or any Third Party acting on behalf of, or under the authority of or license
from, NLS, shall have no right to practice, and shall not practice, during the Term and at any time thereafter, any Licensed Data for
any purpose other than to Develop, Manufacture or have Manufactured, and/or Commercialize Licensed Products in the Field in the Territory,
including the right to Manufacture or have Manufactured the Compound in the Field in the Territory, in each case as provided for in this
Agreement

 

		3.	TRANSFER OF LICENSED DATA AND LICENSED KNOW-HOW

 

3.1 Licensed
Data and Licensed Know-How. The Parties agree and acknowledge that within the time period specified in the definition of “Licensed
Data”, Novartis shall have provided NLS with the necessary Information, comprising Licensed Data and Licensed Know-How, which NLS
would need to proceed with its Development, Manufacturing and Commercialization of Licensed Product in the Field. For additional information,
at NLS’s request, Novartis will try to provide such information where such information is available and it is feasible to do so,
however, only if Novartis has the appropriate resource available to support NLS in collecting such required additional information and
at an agreed upon cost in advance between NLS and Novartis, in Novartis’ sole discretion.

 

3.2 Adverse
Event Reporting and Safety Data Exchange.  NLS shall be solely responsible for the reporting and handling of safety information
involving or relating to the Compound and/or Licensed Products that are subject to this Agreement to the extent required by applicable
Law.

 

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		4.	DEVELOPMENT, COMMERCIALIZATION AND MANUFACTURING

 

4.1 NLS
Responsibilities. NLS will Develop or have Developed, Manufacture or have Manufactured, and Commercialize or have Commercialized Licensed
Products in the Field in the Territory (individually and together, the “Licensed Product Activities”) at its own cost
and expense and to conduct the Development activities as outlined in the Development Plan, NLS shall provide Novartis with an updated
version of such Development Plan in accordance with its reporting obligations as defined in Section 4.2.

 

4.2 Reporting
Obligations. NLS shall provide Novartis with a written summary report on or before the first (1st) of March of each Calendar
Year, summarizing NLS’: (a) Licensed Product Activities for the Compound and/or the Licensed Product(s) in the Field in the Territory
performed in the prior twelve (12)-month period, and (b) anticipated plans for the Licensed Product Activities for the Compound and/or
the Licensed Product(s) in the Field in the Territory for the subsequent twelve (12)-month period. The reporting obligation of NLS to
produce and communicate a written summary report under this article shall immediately cease upon the payment of the Net Sales Milestone
due under as clause 6.4.(a); provided, however, that if at such time or thereafter NLS has any sublicensees or promotion partners in the
United States, such obligation will continue or resume.

 

		5.	INTELLECTUAL PROPERTY

 

5.1 Ownership.
Subject only to the license rights expressly granted to the other Party under this Agreement:

 

		(a)	Each Party shall retain all right, title and interest in and to any Intellectual Property Rights that
are owned, licensed or sublicensed by such Party prior to or independent of this Agreement
	 	 	 

		(b)	NLS shall retain all rights, title and interest to the Orphan Drug Designation of mazindol granted to
NLS by the European Commission and by the FDA respectively in 2016 for the treatment of narcolepsy, type 1 and type 2.
	 	 	 

		(c)	NLS shall be the sole owner of any Patents and Know-How discovered, developed, invented, conceived or
reduced to practice in connection with this Agreement, including in respect of any invention (patentable or not patentable) made using
the Licensed Data and arising from such activities (“Improvements”).
	 	 	 

		(d)	To the extent of any Improvements hereunder, NLS shall have no right to exploit and/or practice, and shall
not exploit and/or practice, any such Improvements outside the Field in the Territory.
	 	 	 

5.2 No
Diminution of Rights. NLS shall not do or omit to do anything that would substantially diminish or impair the rights of Novartis and/or
its Affiliates in the Licensed Data and Licensed Know-How, provided however, that the foregoing shall not restrict NLS’ discretion
as to the Development, use, Manufacture and Commercialization of the Compound and/or Licensed Products.

 

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5.3 Prosecution
and Defense of Patents. As of the Effective Date, NLS shall be solely responsible for the filing, prosecution and maintenance of any
Patents claiming Improvements. (“Improvement Patents”). NLS shall be responsible for all costs and expenses incurred
by it relating to such filing, maintenance and prosecution, including attorneys’ fees and internal costs incurred in connection
therewith.

 

		6.	FINANCIAL PROVISIONS

 

6.1 Upfront
Payment. As partial consideration for the licenses and rights granted to NLS hereunder, NLS shall pay to Novartis a one-time, non-refundable,
non-creditable upfront payment (the “Upfront Payment”) of Two Hundred Sixty-Nine Thousand Two Hundred Fifty United
States Dollars (US$269,250.00) due on the Effective Date, without any deduction for any bank charges which shall be paid separately by
NLS, and which is inclusive of Swiss VAT of $19,250.

 

6.2 Digitalization
Fees. In addition to the payment in 6.1, NLS shall separately pay Novartis for the costs and expenses of digitalization of NDA volumes
selected by NLS from the NDA Table of Contents in Schedule B, as well as any other documents selected by NLS for digitalization from Schedule
B.  Novartis shall bill such amount in one or more invoices and charge 60 USD per volume.  NLS will pay such invoices to Novartis
within thirty (30) days from the date of its receipt of the invoice.

 

6.3 Milestone
Payments. As partial consideration for the licenses and rights granted to NLS hereunder, NLS shall pay to Novartis upon achievement
of the milestones set forth below (each, a “Milestone”) by NLS itself or through any of its Affiliates or sublicensees,
the corresponding one-time, non-refundable, non-creditable payments (“Milestone Payments”):

 

	Milestone	 	Milestone Payment
	End of Phase 2 meeting with the FDA, subject to the FDA accepting the validity
    of the Novartis’ data submitted for a Licensed Product. The Milestone Payment associated with this Milestone may be reduced,
    in the event that FDA requires any toxicology study(ies) to be repeated, but such reduction shall not apply if NLS does additional
    complementary toxicology studies.  The reduction shall be for the actual documented third party costs of the study(ies); provided, however,
    that in no event shall this Milestone be reduced below US$375,000, even if the cost of such toxicology studies exceeds
    US$375,000.	 	Seven Hundred Fifty Thousand United States Dollars (US$750,000.00) (subject to reduction as per Milestone definition in column to the left)
	 	 	 
	Approval, received by NLS, its Affiliates or any sublicensee of regulatory dossier by the FDA for any Licensed Product 	 	Two Million United States Dollars (US$2,000,000.00)
	 	 	 
	Receipt of any up-front and/or milestones payments, received by NLS or its Affiliates, from its sublicensees and/or promotion partners in the United States	 	1% of amount received 

 

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6.4 Each
Milestone Payment shall be deemed earned as of the first achievement of the respective Milestone event, and is payable one time only

 

6.5 Net
Sales Milestone.

 

		(a)	Net Sales Milestone. As partial consideration for the licenses and
rights granted to NLS hereunder, NLS will make a one-time, non-refundable, non-creditable milestone
payment to Novartis on cumulative Net Sales of all Licensed Products as set forth below:

 

	Cumulative Net Sales of Licensed Products in the Territory	 	Net Sales Milestone Payment Amount
	
    Milestone upon NLS, its Affiliates
    or sublicensees cumulative Net Sales of Two Hundred Fifty Million US Dollars ($250,000,000) in the Territory

    
	 	Three Million US Dollars ($3,000,000)

 

The Net Sales Milestone
Payment Amount shall be deemed earned as of the first achievement of the Net Sales Milestone event. NLS shall pay the Net Sales Milestone
Payment Amount only one-time.

 

		(i)	Example for Calculation of Net Sales
Milestone: The example below describes a situation where the milestone is paid during year 3:

 

Year
1: Total Net Sales reported in all markets equals to 50 mio USD

 

Year
2: Total Net Sales reported in all markets equals to 120 mio USD corresponding to a cumulative Net Sales of 170 mio USD at the end of
year 2.

 

Year
3: Total Net sales reported in all markets equals to 150 mio USD corresponding to a cumulative Net Sales of 320 mio USD; milestone payment
triggered in the course of year 3.

 

		7.	REPORTS AND PAYMENT TERMS

 

7.1 Payment
Terms.

 

		(a)	NLS shall notify Novartis in writing within ten (10) days after achievement of the applicable Milestone
and Novartis shall thereafter issue to NLS an invoice substantially in the form provided by Novartis in respect of the applicable Milestone
Payment. NLS will pay such invoice to Novartis within thirty (30) days from the date of its receipt of the invoice, provided, however,
that the payment terms for the Upfront Payment shall be paid as per the timing specified in Section 6.1(a).
	 	 	 

		(b)	All payments from NLS to Novartis shall be made by wire transfer of immediately available funds in US
Dollars to the credit of such bank account or accounts as may be designated by Novartis in writing to NLS from time to time. Any payment
which falls due on a date which is not a Business Day may be made on the next succeeding Business Day.

 

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7.2 Currency
Exchange Rate. All payments under this Agreement shall be payable in US Dollars.

 

7.3 Taxes.
In the event any payments to be made by NLS to Novartis hereunder are subject to deduction or withholding of any tax under applicable
Law, NLS shall deduct in full the respective amount from the payment due and pay the full amount withheld or deducted to the relevant
taxing authority. Within sixty (60) days of making such payment to the relevant taxing authority, NLS shall deliver to Novartis proof
of such payment. Each Party agrees to reasonably assist the other Party in lawfully claiming exemptions from and/or minimizing such deductions
or withholdings under double taxation Laws, treaties or similar circumstances. Except for Article 6, Section 6.1 of the Agreement, all
amounts in this Agreement are exclusive of sales taxes and VAT. Novartis (CHE 116.268.023 MWST) and NLS (CHE-447.067.367 MWST) are VAT
registered in Switzerland. Both parties agree that for the supply of services by Novartis, Swiss VAT, charged at the current applicable
ordinary tax rate (2020, currently 7.7%) will be added to the agreed sales price (Art. 3 e and Art. 8 para 1 of the Swiss VAT Law). Novartis
has to issue its invoices according to Art. 26 of the Swiss VAT law.

 

7.4 Sales
Report. After the First Commercial Sale in the Territory and within thirty (30) days after the end of each Calendar Quarter, NLS will
prepare and provide to Novartis a quarterly written report or reports substantially in the form set forth in Schedule A showing each of:
(a) gross sales for Licensed Products in the Field in the Territory in both USD and local currencies during the reporting period and cumulatively;
(b) Net Sales for Licensed Products in the Field in the Territory both in USD and local currencies during the reporting period and cumulatively;
(c) units sold for the reporting period and cumulatively; (d) date of First Commercial Sale for each Licensed Product in each country.
For the avoidance of doubt, such written report shall also show details on the aforementioned (a) to (c) items for: (i) NLS, its Affiliates
and authorized sublicensees; (ii) last Calendar Quarter and year to date data, for example, up to the last month of the last Calendar
Quarter; and (iii) for each Licensed Product (“Sales Report”) Sales Reports shall be considered Information of NLS.
The obligation of NLS to produce and communicate the Sales Report under this article shall immediately cease and shall become null and
void once the Net Sales Milestone payment has occurred as per clause 6.4(a).

 

7.5 Records
and Audit Rights.

 

		(a)	NLS shall keep complete, true and accurate books and records in accordance with the Accounting Standards
in relation to its obligations under this Agreement, including regarding Net Sales and the Sales Report. NLS will keep such books and
records for at least three (3) years following the Calendar Quarter to which they pertain.
	 	 	 

		(b)	Novartis shall have the right for a period of three (3) years after receiving each Sales Report to appoint
an internationally-recognized independent accounting firm (hereinafter referred to as the “Auditor”) to inspect the
relevant records of NLS and its Affiliates or its sublicensees to verify such reports, statements, records or books of accounts, as applicable.
NLS’ agreements with its Affiliates or sublicensees shall permit such audit by Novartis. The Auditor shall have the right to disclose
to Novartis and/or other Affiliates of Novartis its conclusions regarding any payments owed under this Agreement. Novartis shall have
the right to do one audit per calendar year, and can only audit the same period once.

 

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		(c)	NLS and its Affiliates and sublicensees shall make their records available for inspection by the Auditor
during regular business hours at such place or places where such records are customarily kept, upon receipt of reasonable advance notice
from Novartis, its Affiliate or designated independent accounting firm, to verify the accuracy of the Sales Reports and compliance with
this Agreement. Novartis agrees to, and to cause the Auditor to, hold in confidence all information received and all information learned
in the course of any audit or inspection, except to the extent that such information is not confidential and/or it is necessary to disclose
it to enforce its rights under this Agreement or if disclosure is required by Law.
	 	 	 

		(d)	Novartis shall pay for such audits, as well as its own expenses associated with enforcing its rights with
respect to any payments hereunder, except that, if an underpayment exists such that the interest amount calculated under section 7.4(e)
below is more than five percent (5%) of a particular milestone amount that was audited, the reasonable fees and expenses charged by or
incurred by the Auditor shall be paid by NLS.
	 	 	 

		(e)	In the event that the final result of the inspection reveals an undisputed underpayment by NLS, the underpaid
amount shall be settled promptly to Novartis with interest at the rate per annum equal to the lesser of: (i) two (2) times the three (3)-month
USD-LIBOR rate (or if the three (3)-month USD-LIBOR rate is no longer available, its official successor or such other comparable
interbank three-month borrowing rate) as quoted on Bloomberg (or if it no longer exists, a similarly authoritative source); or (ii) the
highest rate permitted by Law, calculated on the number of days such payment is paid after the date such payment is due, and compounded
monthly from the date such underpayment was due until the date that NLS makes the underpayment.
	 	 	 

		(f)	For the avoidance of doubt, the information provided by NLS pursuant to this Section 7.5 shall
be deemed to be Information of NLS for purposes of this Agreement.

 

		8.	REPRESENTATIONS, WARRANTIES AND COVENANTS

 

8.1 Representations
and Warranties by Each Party. Each Party represents and warrants to the other as of the Effective Date that:

 

		(a)	It is a company duly organized, validly existing, and in good
standing under the Laws of its jurisdiction of formation.

 

		(b)	It has full corporate power and authority to execute, deliver,
and perform this Agreement, and has taken all corporate action required by Law and its organizational documents to authorize the execution
and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement.

 

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		(c)	This Agreement constitutes a valid and binding agreement enforceable
against it in accordance with its terms.

 

		(d)	The execution and delivery of this Agreement and all other instruments
and documents required to be executed pursuant to this Agreement, and the consummation of the transactions contemplated hereby do not
and shall not: (i) conflict with or result in a breach of any provision of its organizational documents; (ii) result in a breach of any
agreement to which it is a party that would impair the performance of its obligations hereunder; or (iii) violate any applicable Law.

 

8.2 Novartis
Representations and Warranties. Novartis represents and warrants to NLS that as of the Effective Date:

 

		(a)	To its knowledge, Novartis and/or its Affiliates is the sole owner of the Licensed Data, free and clear
of all liens, and has the right to grant to NLS the licenses as purported to be granted hereunder.

 

		(b)	There is no pending or, to its knowledge, threatened, litigation or other action that alleges, or any
written communication alleging, that Novartis’s activities with respect to the Compound or the Licensed Data have infringed or misappropriated
any of the Intellectual Property Rights of any Third Party.

 

8.3 NLS
Representations, Warranties and Covenants. NLS represents, warrants, and covenants to Novartis that, as of the Effective Date:

 

		(a)	NLS shall comply with all applicable Law with respect to the performance
of its obligations hereunder, including complying with cGMP, cGCP and cGLP, where applicable.

 

		(b)	(i) Neither NLS, nor, to its knowledge, any employee, agent or
subcontractor of NLS, involved in or who will be involved in the Development, Manufacture and/or Commercialization of the Compound and/or
Licensed Products has been debarred under Subsection (a) or (b) of Section 306 of the Federal Food, Drug and Cosmetic Act (21 U.S.C.
§ 335a); (ii) no Person who is known by NLS to have been debarred under Subsection (a) or (b) of Section 306 of said Act will be
employed by NLS in the performance of any activities hereunder; and (iii) to its knowledge, no Person on any of the FDA clinical investigator
enforcement lists (including, but not limited to, the (1) Disqualified/Totally Restricted List, (2) Restricted List, and (3) Adequate
Assurances List will participate in the performance of any activities hereunder.

 

		(c)	NLS, together with its Affiliates, contractors, sublicensees and
distributors, has or will have the necessary resources and expertise, including relevant approvals and licenses (or the resources to
acquire the expertise) to carry out its obligations hereunder.

 

		(d)	NLS acknowledges that (i) it has been furnished the materials
relating to the Licensed Data and Licensed Know-How that it has requested, ; (ii) it has completed to its satisfaction an independent
investigation of the Licensed Data, Licensed Know-How that it has requested; and (iii) in making its decision to enter into this Agreement,
and to consummate the transactions contemplated hereby, it has relied solely on the results of its own independent investigation and
analysis and the representations and warranties set forth in Sections 8.1 and 8.2. NLS has no knowledge that any representations
or warranty of Novartis made in this Agreement are not true and correct.

 

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		(e)	Execution of Data Transfer Agreements.  
Upon the request of Novartis, NLS shall enter into appropriate data transfer agreements with Novartis and its Affiliates as needed to
satisfy cross-border transfer obligations relating to personal data, such as the European Commission Standard Contractual Clauses or
other similar agreements.

 

		(f)	Prohibited Cross-Border Transfers. 
NLS shall not, and shall not permit any of its subcontractors to, process personal data in a manner that involves (i) the transfer of
such personal data from one country to any other country (the EU and Switzerland constituting a single country for this purpose), or
(ii) accessing personal data from another country; in each case without the prior written consent of Novartis or as explicitly permitted
in the Agreement.

 

8.4 NLS
Anti-Corruption Covenants.

 

		(a)	NLS agrees that none of its actions with respect to this Agreement
will violate any anti-corruption Laws, including but not limited to the U.S. Foreign Corrupt Practices Act or any other Law applicable
to bribery, or any applicable standard implementing compliance with such Laws that are adopted by Novartis and/or its Affiliates from
time to time during the Term (the “Compliance Standards”), or cause Novartis and/or its Affiliates to suffer reputational
harm.

 

		(b)	Specifically, with regard to anti-bribery, in addition to the
above, NLS undertakes not to bribe anyone either directly or through intermediaries, such as agents, consultants, advisers, or any other
business partners (“Intermediaries”). NLS understands that Novartis and its Affiliates do not distinguish between
public officials and private persons so far as bribery is concerned; bribery is not tolerated, regardless of the status of the recipient.
NLS also agrees and undertakes not to make any facilitation payment, directly or through Intermediaries. This applies irrespective of
whether or not local Law permits facilitation payments. For clarity, facilitation payments are payments to public officials to expedite
the performance of duties of a non-discretionary nature. These payments are intended to influence only the timing of the public officials’
actions (e.g. payments to expedite visa issue or clearing goods through customs), but not their outcome.

 

		(c)	NLS shall be solely responsible for training its personnel and
sales force and any other employee who is involved with the activities set forth in this Agreement on anti-bribery at its own expense.

 

8.5 No Other Warranties.
EXCEPT AS EXPRESSLY STATED IN THIS ARTICLE 8, NEITHER PARTY MAKES ANY REPRESENTATIONS OR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER
EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, INCLUDING BUT NOT LIMITED TO WARRANTIES OF TITLE, NON-INFRINGEMENT, VALIDITY, ENFORCEABILITY,
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE COMPOUND, LICENSED PRODUCT(S), LICENSED IP, LICENSED PLATFORM PATENTS, AND MANUFACTURING
PLATFORM TECHNOLOGY PROVIDED BY NOVARTIS OR ITS AFFILIATES HEREUNDER ARE MADE AVAILABLE TO NLS ON AN “AS IS” BASIS WITHOUT
WARRANTY WITH RESPECT TO COMPLETENESS, COMPLIANCE WITH REGULATORY STANDARDS OR OTHER APPLICABLE LAW OR FITNESS FOR A PARTICULAR PURPOSE
OR ANY OTHER KIND OF WARRANTY WHETHER EXPRESS OR IMPLIED.

 

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		9.	INDEMNIFICATION

 

9.1 NLS
Indemnification Obligations. NLS shall indemnify and hold Novartis, its Affiliates and their respective officers, directors, agents
and employees (“Novartis Indemnitees”) harmless from and against any and all costs, charges, claims, damages or expenses
(including attorneys’ fees and expenses) (“Losses”) against or incurred by them to the extent arising or resulting
from:

 

		(a)	any activity by NLS that is outside of the Field;

 

		(b)	the negligence, reckless or wanton intentional acts or omissions
of NLS, its Affiliates, subcontractors or sublicensees;

 

		(c)	NLS’ breach of any representation, warranty or covenant
as set forth in this Agreement;

 

		(d)	NLS’ breach of the scope of the licenses set forth in Section
2.1;

 

		(e)	any inquiry and/or investigation conducted by a Governmental Entity
in connection with this Agreement;

 

		(f)	any claim that asserted by a third party arising out of the sale
or use of a product developed by NLS and/or drug substance used in such product that NLS develops as a result of this Agreement, including
but not limited to claims that arise from, relate to or are in connection with injury or death to a human being, whether premised on
allegations of design or manufacturing defect, negligence, failure to warn, breach of warranty, or any other legal theory, or any claims
premised on regulatory action or voluntary action involving such a product or drug substance, such as product recalls; and

 

		(g)	any claim that is asserted by a third party for infringement of
any Intellectual Property Rights as a result of this Agreement, or arising out of the development, Commercialization and Manufacture
of Licensed Product in the Field.

 

9.2 Indemnification
Procedure. Novartis shall:

 

		(a)	promptly notify NLS of a Loss;

 

		(b)	permit NLS to participate in or lead the conduct, defense and/or
settlement of such claim, proceeding, inquiry or investigation, provided however, that NLS shall not compromise or otherwise settle the
same without Novartis’s prior written consent, which shall not be unreasonably withheld or delayed; and

 

		(c)	reasonably assist, at NLS’ expense, in the investigation
and defense of such claim, proceeding, inquiry or investigation.

 

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		10.	Insurance Requirements

 

NLS warrants that it has sufficient
insurance to provide for the financial protection related to its liabilities and responsibilities under this Agreement. Further, prior
to the initiation of any clinical trials for the Compound and/or any Licensed Products in any country in the Territory, NLS warrants that
it will secure appropriate clinical trials insurance providing coverage in accordance with the respective rules and regulations in place
by the appropriate Regulatory Authority in such country in the Territory. NLS shall provide to Novartis a written summary of such insurance
policy within sixty (60) days of Novartis’s written request. NLS agrees that it shall give Novartis at least thirty (30) days’
written notice prior to the cancellation or termination of any such insurance policy, or any material change that restricts the coverage
or reduces the limits afforded by any such insurance policy.

 

		11.	LIMITATION ON LIABILITY

 

IN NO EVENT SHALL NOVARTIS
OR ANY OF ITS AFFILIATES BE LIABLE FOR ANY DAMAGES IN CONNECTION WITH THIS AGREEMENT OR ANY PRODUCT THAT IS DEVELOPED OR COMMERCIALIZED
BY NLS HEREUNDER. IN ADDITION, NEITHER NOVARTIS NOR ANY OF ITS AFFILIATES SHALL BE LIABLE IN CONTRACT, TORT, NEGLIENCE, BREACH OF STATUTORY
DUTY OR OTHERWISE FOR ANY SPECIAL, INDIRECT, INCIDENTIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES OR FOR ANY ECONOMIC LOSS OR LOSS OF PROFITS
SUFFERED BY NLS.

 

		12.	TERM AND TERMINATION

 

12.1 Term.

 

		(a)	This Agreement shall come into force on the Effective Date and,
subject only to earlier termination pursuant to this Article 12, shall terminate upon NLS’s termination of the Commercialization
of the Licensed Products in the Field in the last country of the Territory in which Commercialization had actually begun (the “Term”).

 

		(b)	Upon the expiration of this Agreement, the license grants to NLS
in Section 2.1 shall continue on a non-exclusive, perpetual, royalty-free, fully paid-up basis for the Territory.

 

12.2 NLS
Termination. Upon written notice to Novartis, NLS may terminate this Agreement for cause due to the following events:

 

		(a)	an Insolvency Event of Novartis occurs; or

 

		(b)	Novartis materially breaches its obligations hereunder and fails
to cure such breach within a period of sixty (60) days after the occurrence of such material breach; or

 

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12.3 Novartis
Termination. Upon written notice to NLS, Novartis may terminate this Agreement for cause due to the following events:

 

		(a)	NLS fails to pay any undisputed amount due under Article 6
and NLS fails to remedy such failure within thirty (30) days of receipt of a written notice from Novartis specifying such failure;

 

		(b)	an Insolvency Event occurs; or

 

		(c)	NLS materially breaches its obligations hereunder and fails to
cure such breach within a period of sixty (60) days after the occurrence of such material breach.

 

		(d)	NLS is not able to initiate a Phase 3 Clinical Trial in any indications
in the Field in the Territory by December 31, 2021.

 

12.4
Effect of Termination. Except as otherwise specifically provided in this Section 12.5, in the case of termination in accordance
with Section 12.2 (NLS Termination), Section 12.3 (Novartis Termination):

 

		(a)	All the licenses and rights granted to NLS hereunder will cease
and revert to Novartis as of the date of such termination and NLS shall cease all use thereof.

 

		(b)	NLS shall promptly return to Novartis and/or its Affiliates, or,
at Novartis’s request, destroy, all material, and documents provided to NLS related to the Compound, or any Licensed Products hereunder.

 

		(c)	To the extent permitted by applicable Law, and at Novartis’s
request and expense, NLS will promptly assign to Novartis and/or its Affiliates all clinical data, Regulatory Approvals, Regulatory Filings,
regulatory dossiers, and other regulatory materials submitted and controlled by NLS related to the Licensed Data. If NLS is restricted
under applicable Law from transferring ownership of any of the foregoing items to Novartis, NLS shall grant Novartis and/or its Affiliates
(or its or their designee(s)) a right of reference or use to such item (it being understood that NLS shall transfer the same to Novartis
when possible). NLS shall, at Novartis’s request and expense, take actions reasonably necessary to effect such transfer or grant
of right of reference or use to Novartis and/or its Affiliates, including by making such filings as may be required with Regulatory Authorities
in the Territory that may be necessary to record such assignment or effect such transfer.

 

		(d)	Solely in the event of termination by NLS pursuant to Section
12.2(b), NLS shall be permitted to sell any remaining inventory of Licensed Product(s) in the ordinary course of business until such
inventory of Licensed Product(s) is depleted or for a period of thirty (30) days from the date of such termination by NLS, whichever
period of time is shorter. For the avoidance of doubt, in no event shall NLS be permitted to sell any inventory (including any work in
process).

 

12.5 Accrued
Rights. The early termination or expiration of this Agreement for any reason will be without prejudice to any rights that have accrued
to the benefit of either Party prior to the early termination or expiration of this Agreement, and any and all damages arising from any
breach or default hereunder, including any payments due to Novartis from NLS hereunder. Upon the early termination or expiration of this
Agreement for any reason, the Parties shall have no further obligation to perform any activities under this Agreement other than as provided
for or referenced in this Article 14.

 

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12.6 Termination
Not Sole Remedy. Termination is not the sole remedy under this Agreement, and whether or not termination is effected and notwithstanding
anything contained in this Agreement to the contrary, all other remedies under applicable Law will remain available except as otherwise
agreed to herein.

 

12.7 Survival.
Notwithstanding any other provision of this Agreement, the following provisions shall survive the termination or expiration of this Agreement
for any reason, in accordance with their respective terms and conditions, and for the duration stated, and where no duration is stated,
shall survive for so long as required to give effect to the subject matter of the provision: Article 1 (Definitions and Interpretation),
Section 2.2 (Sublicensing) Section 2.3 (Reservation of Rights by Novartis), Section 5.1 (Ownership; Grant-Back to Novartis), Article 6
(Financial Provisions), Article 9 (Indemnification), Article 10 (Insurance), Article 11 (Limitation on Liability), Article 12 (Term and
Termination), Article 13 (Confidentiality), Article 14 (Press Releases and Publications), Article 15 (Miscellaneous).

 

		13.	CONFIDENTIALITY

 

13.1 Duty
of Confidence. Subject to the other provisions of this Article 13, all Information will be maintained by the Parties in confidence
and otherwise safeguarded by the Parties. Each Party may only use the Information strictly for the purposes of this Agreement and pursuant
to the rights and obligations of such Party under this Agreement. Subject to the other provisions of this Article 13, each Party
shall hold as confidential such Information of the other Party or such Party’s Affiliates (in the case of Novartis, where Affiliates
of Novartis disclose Information) in the same manner and with the same protection as such recipient Party maintains its own confidential
information, but in no event less than a reasonable degree of care. Subject to the other provisions of this Article 13, a Party
may only disclose Information to employees, agents, contractors, consultants and advisers of such Party and in the case of Novartis, Novartis
may also disclose to its Affiliates and their employees, agents and contractors, and in the case of NLS, NLS may also disclose to its
sublicensees to the extent reasonably necessary for the purposes of, and for those matters undertaken pursuant to, this Agreement, provided
that such Persons are bound to maintain the confidentiality of the Information in a manner consistent with the confidentiality provisions
of this Agreement.

 

13.2 Exceptions.
The obligations under this Article 13 shall not apply to any Information to the extent the recipient Party can demonstrate by competent
evidence that such Information:

 

		(a)	is (at the time of disclosure) or becomes (after the time of disclosure)
known to the public or part of the public domain through no breach of this Agreement by the recipient Party or its Affiliates;

 

		(b)	was known to, or was otherwise in the possession of, the recipient
Party or its Affiliates prior to the time of disclosure by the disclosing Party or any of its Affiliates;

 

		(c)	is disclosed to the recipient Party or an Affiliate on a non-confidential
basis by a Third Party who is entitled to disclose it without breaching any confidentiality obligation to the disclosing Party or any
of its Affiliates; or

 

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		(d)	is independently developed by or on behalf of the recipient Party
or its Affiliates, as evidenced by its written records, without reference to the Information disclosed by the disclosing Party or its
Affiliates under this Agreement.

 

13.3 Authorized
Disclosures.

 

		(a)	In addition to disclosures allowed under Section 13.2,
NLS may disclose Information belonging to Novartis or its Affiliates to the extent such disclosure is necessary in connection with the
Regulatory Filings for a Licensed Product.

 

		(b)	In addition to disclosures allowed under Section 13.2,
either Party may disclose Information belonging to the other Party (and/or its Affiliates) to the extent such disclosure is necessary
to: (i) prosecute or defend litigation as permitted by this Agreement, and/or (ii) comply with applicable court orders or governmental
regulations or any securities regulatory organization’s disclosure requirements.

 

		(c)	In the event the recipient Party is required to disclose Information
of the disclosing Party by Law or in connection with bona fide legal process, such disclosure shall not be a breach of this Agreement,
provided that the recipient Party (i) informs the disclosing Party as soon as reasonably practicable of the required disclosure; (ii)
limits the disclosure to the required purpose; and (iii) at the disclosing Party’s request and expense, assists in an attempt to
object to or limit the required disclosure.

 

13.4 Ongoing
Obligation for Confidentiality. Upon early termination of this Agreement for any reason, each Party and its Affiliates shall immediately
(a) return to the other Party or destroy any Information supplied or disclosed by the other Party together with all hard copies thereof,
except for (i) such copies as must be retained pursuant to applicable Law, and (ii) one copy which may be retained in its confidential
files for archive purposes; (b) destroy all notes and all summaries or extracts in any medium prepared by or on behalf of recipient derived
from this Information; and (c) use all best efforts to procure that all third parties, to which this Information was disclosed, destroy
or erase any Information contained in any materials and documentation recorded in any memory device.

 

13.5 Termination
of Prior Confidentiality Agreement. This Agreement supersedes and replaces the Confidentiality Agreement between the Parties dated
February 1, 2016 and amended on February 18, 2016. All information exchanged between the Parties under such Confidentiality Agreement
shall be deemed Information hereunder and shall be subject to the terms of this Article 13.

 

		14.	PRESS RELEASES AND PUBLICATIONS

 

Neither Party shall issue
any press release, trade announcement or make any other public announcement or statement with regard to the transactions contemplated
by this Agreement without the other Party’s prior written consent, which shall not be unreasonably withheld. Where consent is forthcoming,
the Parties agree to consult with each other regarding the content of any such press release or other announcement. The aforementioned
restriction shall not apply to announcements required by any Regulatory Authority, security exchanges or Governmental Entity under applicable
Law, provided, that in such event the Parties shall coordinate the wording and NLS shall take into consideration any requests of Novartis.
Each Party hereto acknowledges that NLS and Novartis shall have the right to disclose a brief summary of the transaction, including the
amounts payable by NLS under this Agreement, in its official financial reports.

 

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		15.	MISCELLANEOUS

 

15.1 Governing
Law; Jurisdiction and Venue. This Agreement shall be governed by and construed under the Laws of Switzerland, without giving effect
to the conflicts of Laws provisions thereof, and with the exclusion of the Vienna Convention on the International Sale of Goods. The parties
irrevocably agree that the courts of Basel City, Switzerland shall have exclusive jurisdiction to hear and decide any suit, action or
proceedings, and/or to settle any disputes, which may arise out of or in any way relate to this Agreement or its formation and, for these
purposes, each party irrevocably submits to the jurisdiction of the courts of Basel City, Switzerland. Each Party further irrevocably
and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any
such court has been brought in an inconvenient forum.

 

15.2 Assignment.

 

		(a)	Neither Party may assign its rights and obligations under this
Agreement without the other Party’s prior written consent, which consent shall not be unreasonably conditioned, withheld or delayed.

 

		(b)	Notwithstanding Section 15.2(a), Novartis may, without
the consent of NLS, assign and/or novate this Agreement or any of its rights or obligations (i) to an Affiliate; (ii) to a successor
to all or substantially all of its business or assets to which this Agreement relates; or (iii) to Novartis Pharma AG or any of its affiliates
at any time, regardless of whether Novartis is, at the time of such assignment and/or novation, an affiliate of Novartis Pharma AG, or
(iv) to an unaffiliated third party.

 

		(c)	Notwithstanding Section 15.2(a), NLS may, without the consent
of Novartis, assign and/or novate this Agreement or any of its rights or obligations to an Affiliate, provided however, that such assignment
to an Affiliate shall be subject to a written agreement that (i) requires the assignee to comply with all applicable obligations of this
Agreement, and (ii) is not in conflict with any term of this Agreement. In the event of a Change of Control of NLS:

 

		(i)	Novartis shall have the right to require that NLS, the Third Party
with whom such Change of Control is effected and each of their respective Affiliates, (1) adopt procedures reasonably calculated, as
approved by Novartis which shall not be unreasonably withheld to limit the dissemination of Sensitive Information to only those Persons
employed by or under contract with NLS, in each case having a need to know such Sensitive Information in order for NLS to perform its
obligations and exercise its rights under this Agreement; (2) prohibit and limit the use and disclosure of Sensitive Information for
competitive reasons against Novartis and its Affiliates, including the use of Sensitive Information for the Development, use, Manufacture,
and/or Commercialization of the Compound and/or Licensed Products in the Field; and (3) comply with the restrictions on use of Permitted
sublicensees for purposes of Manufacturing as set forth in Section 2.2(a) and such other related provisions. Without limiting
the foregoing or being limited thereby, at a minimum in such circumstance, no Sensitive Information shall be disclosed to or used by
any Person who is also working on or making decisions regarding any product that is competitive with any Licensed Product at the time
of receipt or use of any Sensitive Information, or within two (2) years following receipt or use of any Sensitive Information. For the
avoidance of doubt, the foregoing applies equally to technical staff as well as senior management.

 

    22

    

    

 

		(ii)	For the purpose of this Section 15.2(c), “Change
of Control” means, with respect to NLS: (1) the sale, conveyance, transfer, or lease of all or substantially all of NLS’
assets or business relating to this Agreement to any Third Party; (2) a merger, reorganization or consolidation involving NLS in which
the total voting power of the stock of NLS outstanding immediately prior thereto ceases to represent at least fifty percent (50%) of
the combined voting power of the stock outstanding of the surviving entity normally entitled to vote in elections of directors immediately
after such merger, reorganization or consolidation; or (3) a Person or group of Persons acting in concert becoming the beneficial owner,
directly or indirectly, of more than fifty percent (50%) of the total voting power of the stock then outstanding of NLS normally entitled
to vote in elections of directors.

 

		(iii)	For the purpose of this Section 15.2(c), “Sensitive
Information” means all Information of Novartis disclosed to or otherwise available to NLS or Persons employed by or under contract
with NLS and Information arising from the Parties’ performance of this Agreement in relation to the Development, use Manufacture,
and/or Commercialization of the Compound and/or Licensed Products in the Field.

 

		(d)	Any permitted assignee shall assume all obligations of the assigning
Party under this Agreement (or the assigned portion in the case of any partial assignment), and no permitted assignment shall relieve
the assignor of liability hereunder. Any attempted assignment in contravention of this Section 15.2 will be null and void. Subject
to the terms of this Agreement, this Agreement will be binding upon and inure to the benefit of the Parties and their respective successors
and assigns.

 

15.3 Injunctive
Relief. The Parties understand and agree that monetary damages may not be a sufficient remedy for breach of this Agreement and that
each Party will be entitled to seek equitable relief, including injunction and specific performance for any such breach. Nothing contained
in this Agreement shall be construed as limiting a Party’s right to any other remedies it may have under this Agreement or in Law,
including, without limitation, the recovery of damages for breach of this Agreement.

 

15.4 Force
Majeure. If and to the extent that either Party is prevented or delayed by Force Majeure from performing any of its obligations under
this Agreement and promptly so notifies the other Party in writing, specifying the matters constituting Force Majeure together with such
evidence in verification thereof as it can reasonably give and specifying the period for which it is estimated that the prevention or
delay will continue, then the Party so affected shall be relieved of liability to the other for failure to perform or for delay in performing
such obligations (as the case may be), but shall nevertheless use its commercially reasonable efforts to resume full performance thereof.

 

    23

    

    

 

15.5 No
Trial By Jury. THE PARTIES EXPRESSLY WAIVE AND FOREGO ANY RIGHT TO TRIAL BY JURY.

 

15.6 Notices.
All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been duly
given when: (a) delivered by hand or by express courier service (in both instances with written confirmation of receipt), or (b) when
received by the addressee, if sent by an internationally recognized overnight delivery service (receipt requested), in each case to the
appropriate addresses set forth below (or to such other addresses as a Party may designate by written notice):

 

If to NLS:

 

NLS Pharmaceutics Ltd.

Alter Postplatz 2

6370 Stans

Switzerland

 

Attn: Chief Executive Officer

 

If to Novartis:

 

Novartis Pharma AG

Lichtstrasse 35, CH-4056 Basel

Attn: Head, Alliance Management

 

With a copy at the same address to:

General Counsel, Novartis Pharma AG

 

Each Party may change its address for purposes of this Agreement by written notice to the other Party.

 

15.7 Waiver
and Amendments. The failure of a Party to assert a right hereunder or to insist upon compliance with any term or condition of this
Agreement shall not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition by
the other Party. No waiver shall be effective unless it has been given in writing and signed by the Party giving such waiver. No provision
of this Agreement may be amended or modified other than by a written document signed by authorized representatives of each Party.

 

15.8 Severability.
Without prejudice to any other rights that a Party may have pursuant to this Agreement, every provision of this Agreement is intended
to be severable. If any provision of this Agreement shall be invalid or unenforceable, such invalidity or unenforceability shall not affect
the other provisions of this Agreement, which shall remain in full force and effect. The Parties hereto agree to consult each other and
to agree upon a new stipulation which is permissible under the Law and which comes as close as possible to the original purpose and intent
of the invalid, void or unenforceable provision.

 

15.9 Entire
Agreement. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and
oral, between the Parties with respect to the subject matter hereof.

 

    24

    

    

 

15.10 Relationship
of the Parties. Nothing contained in this Agreement shall be deemed to constitute a partnership, joint venture, or legal entity of
any type between Novartis and NLS, or to constitute one as the agent of the other. Moreover, each Party agrees not to construe this Agreement,
or any of the transactions contemplated hereby, as a partnership for any tax purposes. Each Party shall act solely as an independent contractor,
and nothing in this Agreement shall be construed to give any Party the power or authority to act for, bind, or commit the other.

 

15.11 Expenses.
Except as otherwise expressly provided in this Agreement, each Party shall pay the fees and expenses of its respective lawyers and other
experts and all other expenses and costs incurred by such Party incidental to the negotiation, preparation, execution and delivery of
this Agreement.

 

15.12 Further
Assurances. Novartis and NLS hereby covenant and agree without the necessity of any further consideration, to execute, acknowledge
and deliver any and all such other documents and take any such other action as may be reasonably necessary to carry out the intent and
purposes of this Agreement.

 

15.13 Headings.
Titles or captions of articles and sections contained in this Agreement are inserted only as a matter of convenience and for reference,
and in no way define, limit, extend, or describe the scope of this Agreement or the intent of any provision hereof.

 

15.14 Compliance
with Law. Each Party shall perform its obligations under this Agreement in accordance with all applicable laws. No Party shall, or
shall be required to, undertake any activity under or in connection with this Agreement which violates or which it believes, in good faith,
may violate any applicable law.

 

15.15 No
Third Party Beneficiary Rights. The provisions of this Agreement are for the sole benefit of the Parties and their successors and
permitted assigns, and they shall not be construed as conferring any rights to any third Party (including any third party beneficiary
rights).

 

15.16 English
Language. This Agreement is written and executed in the English language. Any translation into any other language shall not be an
official version of this Agreement and in the event of any conflict in interpretation between the English version and such translation,
the English version shall prevail.

 

15.17 Cumulative
Remedies. No remedy referred to in this Agreement is intended to be exclusive, but each shall be cumulative and in addition to any
other remedy referred to in this Agreement or otherwise available under law.

 

15.18 Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one (1) and the same instrument.

 

(Signature Page Follows)

 

    25

    

    

 

IN WITNESS WHEREOF, the Parties intending to be
bound have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

 

	NOVARTIS PHARMA AG	 	NLS PHARMACEUTICS LTD.
	 	 	 	 	 
	By:	/s/ Jean-Marc
Sequter               	 	By: 	/s/ Ronald
    Hafner                   
	Name: 	Jean-Marc Sequter              	 	Name: 	Ronald Hafner
	Title: 	Global BDL Head Divestment/Out-Licensing	 	Title: 	Chairman of the Board

	 	 	 	 	 
	By: 	/s/ Shusaku
    Iwasaki               	 	By: 	/s/ Alex
    Zwyer                    
	Name: 	Shusaku Iwasaki	 	Name: 	Alex Zwyer
	Title: 	Senior Legal Counsel	 	Title: 	CEO

 

     

    

    

 

SCHEDULE
A

SALES REPORT FORM

 

 

 

 

 

     

    

    

 

Schedule
B

licensed
data

 

Licensed Data to be provided subject to the time periods
specified in the definition of “Licensed Data” in this Agreement. Embedded NDA Table of Contents pdf at end of this Schedule
B is provided for reference only.

 

All available mazindol data referred to and included in
the 1972-02-25 Original NDA 17247.

 

		o	Available as scanned documents: volumes 1 to 52
	 	 	 

		o	To be scanned upon request of Licensee: volumes 53 to 418

 

All available mazindol data used for the formulation, manufacturing,
including stability and other data, pre-clinical and development of the Licensed Product as stored in the Novartis electronic document
management systems.

 

All post-marketing periodic safety reports/updates from
1973-1999 and at any later date

 

		o	PSURs available as scanned documents: PSURs for period 1995-2010.  
	 	 	 

		o	To be checked for availability and scanned if available: PSUR version 1, covering the period from launch till end of 1994
	 	 	 

		o	Other safety related scanned documents available, as follows:

 

 

 

 

 

     

    

    

 

SCHEDULE
C

KNOWLEDGE

 

Jean Marc
Sequier

Head, Divestments
& OutlicensingDocument

EXHIBIT 4.7

STEADFAST APARTMENT REIT, INC. 
RESTRICTED STOCK AWARD AGREEMENT 
									
			
	Name of Recipient:	 	
	Number of Award Shares:	 	
			
	Award Date:	 	March   , 2021

 
 
 
THIS AGREEMENT (the “Agreement”) is made and entered into as of the Award Date set forth above (the “Award Date”), by and between Steadfast Apartment REIT, Inc. (the “Company”), a Maryland corporation, and the individual Recipient noted above (the “Recipient”). Unless otherwise indicated, all capitalized terms used in this Agreement are defined in the Plan as of the Award Date or in the “Definitions” section of EXHIBIT A. EXHIBIT A is incorporated by reference and is included in the definition of “Agreement.”
W I T N E S S E T H: 
WHEREAS, the Company has adopted the Steadfast Apartment REIT, Inc. Amended and Restated 2013 Incentive Plan (the “Plan”); and 
WHEREAS, the Board of Directors of the Company (the “Board”) or a committee thereof has authorized the grant under the Plan to Recipient of a restricted stock award of the common stock of the Company (“Common Stock”), and the Company and Recipient wish to confirm herein the terms, conditions, and restrictions of the restricted stock award; 
NOW, THEREFORE, in consideration of the premises, the mutual covenants contained herein, and other good and valuable consideration, the parties hereto agree as follows: 
 
						
	1	AWARD OF SHARES 

1.1 Award of Shares. Subject to the terms, restrictions, limitations, and conditions stated herein and in the Plan, the Company hereby awards to Recipient the number of shares of Common Stock (the “Award Shares”) noted above. By the execution of this Agreement, the Recipient hereby accepts the Award Shares subject to all terms and provisions of this Agreement. 
1.2 Vesting of Award Shares. Recipient shall become vested in a percentage of the Award Shares shown below, subject (except as provided otherwise in this Section 1.2) to the Continuous Service of the Recipient from the Award Date of the Award Shares through the specified vesting date: 
 

									
			
	Vesting Schedule:
	Percentage Vested:	 	Vesting Date:
	33.33%		First anniversary of the Award Date
	33.33%		Second anniversary of the Award Date
	33.33%		Third anniversary of the Award Date

If the above calculation of vested Award Shares would result in a fraction, any fraction will be rounded to zero. Upon the cessation of the Recipient’s Continuous Service prior to the Vesting Date, the Award Shares shall automatically be forfeited; provided, that if (i) a Change in Control occurs while the Recipient is performing Continuous Service and the Award Shares are not assumed, (ii) the Recipient ceases Continuous Service by reason of death or the Company terminates the Recipient’s Continuous Service due to the Recipient’s Disability (as that term is defined in a then current employment agreement or offer letter), or (iii) the Recipient’s employment agreement or offer letter provides for accelerated vesting upon such cessation of Continuous Service, then the Recipient shall nonetheless immediately, as of the date of such Change in Control or cessation of Continuous Service, as applicable, become fully (100%) vested in the Award Shares. Notwithstanding the foregoing, the Board may, in its sole discretion, accelerate the vesting of the Award Shares in whole or in part. The Award Shares which have become vested pursuant to the vesting schedule or by virtue of such acceleration are herein referred to as the “Vested Award Shares” and all Award Shares which are not Vested Award Shares are sometimes herein referred to as the “Unvested Award Shares.” 
1.3 Rights as Stockholder; Dividend & Voting Rights. Recipient shall be entitled to ordinary dividends paid or declared on Vested and Unvested Award Shares for which the record date is on or after the date such Award Shares have been issued in the Recipient’s name; provided, however, any dividends paid in the form of common stock of the Company shall be considered Award Shares and shall be subject to all terms and provisions of this Agreement as the underlying Award Shares. Recipient shall have all voting rights applicable for all Vested and Unvested Award Shares for which the record date is on or after the date such Award Shares have been issued in the Recipient’s name. Recipient shall have no rights whatsoever (dividend, voting or otherwise) with respect to Award Shares which have been forfeited under Section 1.2. 
1.4 Withholding on Award Shares. Recipient hereby agrees that, in consideration for the grant of the Award Shares, the following federal and state income tax withholding provisions shall apply: 
(a) Code §83(b) Election Made by Recipient. If the Recipient makes a Code §83(b) Election (see EXHIBIT B attached for an example) with respect to the Award Shares, then, in order not to forfeit Award Shares, the Recipient must deliver to the Company a check payable to the Company in the amount of all withholding or other tax obligations (whether federal, state or local) imposed on the Company by reason of such Code §83(b) Election simultaneously with the Recipient’s delivery to the Company of a copy of his Code §83(b) Election (which must occur no later than thirty (30) days after the Award 

Date). If the Recipient does not timely make such payment, the Award Shares shall be immediately forfeited by the Recipient, and any amounts which must be paid by the Company for any required withholding or other tax obligations imposed on the Company by reason of such Code §83(b) Election shall be paid by the Recipient by directly withholding all such amounts as quickly as possible consistent with applicable law from any other compensation payable to the Recipient on or after the date of such Code §83(b) Election. The Recipient hereby agrees to the withholding by the Company outlined in the preceding sentence, and authorizes and directs that such withholding from the Recipient’s compensation be made if such sentence is applicable. 
(b) Code §83(b) Election Not Made by Recipient. If the Recipient does not make a Code §83(b) Election with respect to the Award Shares, then the Recipient shall be entitled to elect one (or a combination) of the following methods of satisfying the Company’s withholding obligations (see EXHIBIT C attached): 
(1) Direct Payment on or prior to Substantial Vesting Event. The Recipient may, on or before the date of occurrence of an event pursuant to which such Award Shares become “substantially vested” within the meaning of Code §83, deliver to the Company cash and/or a check payable to the Company in the amount of all withholding obligations (whether federal, state or local) imposed on the Company by reason of the substantial vesting of such Award Shares. 
(2) Return of Vested Award Shares upon Substantial Vesting Event. The Recipient may, as of the close of business on the business day which is coincident with or which immediately follows the occurrence of an event pursuant to which such Award Shares become “substantially vested” within the meaning of Code §83, direct the Company to repurchase from the Recipient the smallest whole number of Vested Award Shares which, when multiplied by the Fair Market Value of the Common Stock on such business date, is sufficient to satisfy the amount of the withholding tax obligations imposed on the Company by reason of the vesting of the Award Shares. If the Recipient elects this method of satisfying withholding obligations, the Recipient acknowledges and understands that any Vested Award Shares repurchased from the Recipient may result in tax consequences to the Recipient.
The Recipient’s election of a method of withholding under this Section 1.4 must be made prior to the date of occurrence of an event pursuant to which such Award Shares become “substantially vested” within the meaning of Code §83. The Recipient’s election of a method of withholding under this Section 1.4 shall, once made, be irrevocable. If the Recipient fails to timely make an election with respect to the vesting of any Award Shares, then the method specified in Section 1.4(b)(2) shall automatically apply. 
1.5 Investment Representations. Recipient hereby represents, warrants, covenants, and agrees with the Company as follows: 
(a) The Award Shares being acquired by Recipient will be acquired for Recipient’s own account without the participation of any other person, with the intent of holding the Award Shares for investment and without the intent of participating, directly or indirectly, 

in a distribution of the Award Shares and not with a view to, or for resale in connection with, any distribution of the Award Shares, nor is Recipient aware of the existence of any distribution of the Award Shares; 
 
(b) Recipient is not acquiring the Award Shares based upon any representation, oral or written, by any person with respect to the future value of, or income from, the Award Shares but rather upon an independent examination and judgment as to the prospects of the Company; 
(c) The Award Shares were not offered to Recipient by means of publicly disseminated advertisements or sales literature, nor is the Recipient aware of any offers made to other persons by such means; 
(d) Recipient is able to bear the economic risks of the investment in the Award Shares, including the risk of a complete loss of Recipient’s investment therein; 
(e) Recipient understands and agrees that the Award Shares will be issued and sold to Recipient without registration under any state law relating to the registration of securities for sale, and will be issued and sold in reliance on the exemptions from registration under the Securities Act of 1933 (the “1933 Act”), provided by Sections 3(b) and/or 4(2) thereof and the rules and regulations promulgated thereunder; 
(f) The Award Shares cannot be offered for sale, sold or transferred by Recipient other than pursuant to: (A) an effective registration under the 1933 Act or in a transaction otherwise in compliance with the 1933 Act; and (B) evidence satisfactory to the Company of compliance with the applicable securities laws of other jurisdictions. The Company shall be entitled to rely upon an opinion of counsel satisfactory to it with respect to compliance with the above laws; 
(g) The Company will be under no obligation to register the Award Shares or to comply with any exemption available for sale of the Award Shares without registration or filing, and the information or conditions necessary to permit routine sales of securities of the Company under Rule 144 of the 1933 Act are not now available and no assurance has been given that it or they will become available. The Company is under no obligation to act in any manner so as to make Rule 144 available with respect to the Award Shares; 
(h) Recipient has and has had complete access to and the opportunity to review and make copies of all material documents related to the business of the Company, including, but not limited to, contracts, financial statements, tax returns, leases, deeds, and other books and records. Recipient has examined such of these documents as Recipient has wished and is familiar with the business and affairs of the Company. Recipient realizes that the purchase of the Award Shares is a speculative investment and that any possible profit therefrom is uncertain; 
(i) Recipient has had the opportunity to ask questions of and receive answers from the Company and any person acting on its behalf and to obtain all material information reasonably available with respect to the Company and its affairs. Recipient has received all information and data with respect to the Company which Recipient has requested and 

which Recipient has deemed relevant in connection with the evaluation of the merits and risks of Recipient’s investment in the Company; 
(j) Recipient has such knowledge and experience in financial and business matters that Recipient is capable of evaluating the merits and risks of the purchase of the Award Shares hereunder and Recipient is able to bear the economic risk of such purchase; and 
(k) The agreements, representations, warranties, and covenants made by Recipient herein extend to and apply to all of the Award Shares of the Company issued to Recipient pursuant to this restricted stock award. Acceptance by Recipient of such Award Shares shall constitute a confirmation by Recipient that all such agreements, representations, warranties, and covenants made herein shall be true and correct at that time. 

						
	2	RESTRICTIONS OF AWARD SHARES

2.1 Restrictions on Unvested Award Shares. None of the Unvested Award Shares may be conveyed, pledged, assigned, transferred, hypothecated, encumbered, or otherwise disposed of by Recipient, and any attempt to do so with respect to Unvested Award Shares shall be null and void ab initio, unless the Committee expressly authorizes such in writing, in which case the transferee shall be subject to all provisions of this Restricted Stock Agreement. If Unvested Award Shares are transferred pursuant to the preceding sentence, the Recipient agrees to notify the Committee at least thirty (30) days prior to such transfer, and the Committee may require that the transferee thereof execute and deliver to the Company such documents and agreements as the Company shall reasonably require to evidence the fact that the Award Shares to be owned, either directly or beneficially, by such transferee shall continue to be subject to all the restrictions set forth in this Agreement and all applicable rights in favor of the Company set forth elsewhere herein, and that such transferee is subject to and bound by such restrictions and provisions. The restrictions of this Section 2.1 shall not apply to Vested Award Shares. 
2.2 Market-Stand-Off Agreement. Recipient agrees that, if requested by the Company and its underwriters, Recipient will enter into a lock-up or similar agreement not to sell or offer to sell any securities of the Company during the 180-day period following the effective date of a registration statement of the Company filed under the 1933 Act provided that such agreement only applies to the first such registration statement of the Company which includes securities to be sold on the Company’s behalf to the public in an underwritten offering. 
 
						
	3	GENERAL PROVISIONS 

3.1 Legends. Each certificate (if any) representing the Award Shares shall, subject to Section 3.2 below, be endorsed with the following legend and Recipient shall not make any transfer of the Award Shares without first complying with the restrictions on transfer described in such legend: 
TRANSFER IS RESTRICTED 
THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN A RESTRICTED STOCK AWARD AGREEMENT, A COPY OF WHICH IS AVAILABLE FROM THE COMPANY. 

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, OR HYPOTHECATED UNLESS (1) THERE IS AN EFFECTIVE REGISTRATION UNDER SUCH ACT COVERING SUCH SECURITIES, (2) THE TRANSFER IS MADE IN COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT, OR (3) THE ISSUER RECEIVES AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT. 
Recipient agrees that the Company may also endorse any other legends required by applicable federal or state securities laws. The Company need not register a transfer of the Award Shares, and may also instruct its transfer agent, if any, not to register the transfer of the Award Shares unless the conditions specified in the foregoing legends are satisfied. 
3.2 Removal of Legend and Transfer Restrictions. 
(a) Any legend endorsed on a certificate pursuant to Section 3.1 and the stop transfer instructions with respect to the Award Shares shall be removed and the Company shall issue a certificate without such legend to the holder thereof if such Award Shares are registered under the Securities Act and a prospectus meeting the requirements of Section 10 of the Securities Act is available. 
(b) The restrictions described in the second sentence of the legend set forth in Section 3.1 may be removed at such time as permitted by Rule 144(k) promulgated under the Securities Act. 
3.3 Governing Laws. This Agreement shall be construed, administered and enforced according to the laws of the State of Maryland; provided, however, no Award Shares shall be issued except, in the reasonable judgment of the Board, in compliance with exemptions under applicable state securities laws of the state in which Recipient resides, and/or any other applicable securities laws. 
3.4 Successors. This Agreement shall be binding upon and inure to the benefit of the heirs, legal representatives, successors, and permitted assigns of the parties. 
3.5 Notice. Except as otherwise specified herein, all notices and other communications under this Agreement shall be in writing and shall be deemed to have been given if personally delivered or if sent by registered or certified United States mail, return receipt requested, postage prepaid, addressed to the proposed recipient at the last known address of the recipient. Any party may designate any other address to which notices shall be sent by giving notice of the address to the other parties in the same manner as provided herein. 
3.6 Severability. In the event that any one or more of the provisions or portion thereof contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions of this 

Agreement, and this Agreement shall be construed as if the invalid, illegal or unenforceable provision or portion thereof had never been contained herein. 
3.7 Entire Agreement. Subject to the terms and conditions of the Plan, this Agreement, together with any terms applicable to the Award Shares in the Recipient’s employment agreement or offer letter or any severance plan in which the Recipient is a participant at the time of termination (such terms being incorporated herein by reference) expresses the entire understanding and agreement of the parties with respect to the subject matter. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. 
3.8 Violation. Any transfer, pledge, sale, assignment, or hypothecation of the Award Shares or any portion thereof shall be a violation of the terms of this Agreement and shall be null, void and without effect ab initio. 
 
3.9 Headings. Paragraph headings used herein are for convenience of reference only and shall not be considered in construing this Agreement. 
3.10 Specific Performance. In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the party or parties who are thereby aggrieved shall have the right to specific performance and injunction in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. 
3.11 No Employment Rights Created. Neither the establishment of the Plan nor the award of Award Shares hereunder shall be construed as giving Recipient the right to continued employment with the Company. 
3.12 Capitalized Terms. All capitalized terms used in this Agreement shall have the meanings given to them herein or in the Plan. 
3.13 No Disclosure Duty. The Recipient and the Company acknowledge and agree that the Company and its directors, officers or employees shall have no duty or obligation to disclose to the Recipient any material information regarding the business of the Company or affecting the value of the Award Shares. 
3.14 Tax Consequences. RECIPIENT REPRESENTS THAT RECIPIENT HAS BEEN ADVISED BY THE COMPANY TO CONSULT WITH, AND HAS FULLY CONSULTED WITH, RECIPIENT’S OWN TAX CONSULTANTS REGARDING HIS MAKING A CODE §83(B) ELECTION WITH RESPECT TO THE AWARD SHARES AND THE RESULTING IMPACT ON RECIPIENT’S PERSONAL TAX SITUATION, PRIOR TO ENTERING INTO THIS AGREEMENT AND THAT RECIPIENT IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE. RECIPIENT UNDERSTANDS THAT RECIPIENT MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF RECIPIENT’S RECEIPT AND DISPOSITION OF THE SHARES. RECIPIENT UNDERSTANDS THAT RECIPIENT MAY OR MAY NOT MAKE A CODE §83(B) ELECTION WITH RESPECT TO THE AWARD 

SHARES, BUT THAT RECIPIENT SHALL BE SUBJECT TO THE WITHHOLDING PROVISIONS OF SECTION 1.4 HEREIN BASED UPON THE CHOICE OF RECIPIENT REGARDING SUCH CODE §83(B) ELECTION AND THE CHOICE OF RECIPIENT REGARDING THE TIME AND MANNER THAT WITHHOLDING OBLIGATIONS SHALL BE SATISFIED. 
[Signature Page Follows]

IN WITNESS WHEREOF, the parties have executed and sealed this Agreement as of the Award Date set forth above. 
 
																							
									
	COMPANY:			 	RECIPIENT:	 	
	STEADFAST APARTMENT REIT, INC.:			 		 	
				 	 
	By:					 		 	
	Its:					 		 	
					
	Attest:			 		 	
					
	By:					 		 	
	Its:					 		 	

 

EXHIBIT A 
DEFINITIONS 
A.Agreement shall mean this Restricted Stock Agreement. 
B.Award Shares shall mean the shares of common stock of the Company which are awarded to the Recipient subject to the terms and conditions of this Agreement. 
C.Change in Control shall mean the occurrence of any of the following after the Closing: 
1.the direct or indirect sale, transfer, conveyance or other disposition, in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its Subsidiaries, taken as a whole, to any Exchange Act Person; 
2.the following individuals cease for any reason to constitute a majority of the number of directors then serving on the Board: individuals who, as of the Closing, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including, but not limited to, a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s shareholders was approved or recommended by a vote of at least a majority of the directors then still in office who either were directors on the Closing or whose appointment, election or nomination for election was previously so approved or recommended;
3.an Exchange Act Person becomes the “beneficial owner” (as used in Rule 13d-3 under the Exchange Act) of 50% or more of the total voting power of the stock of the Company; 
4.the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company if, immediately after the consummation of such transaction, the shareholders of the Company immediately prior thereto do not own, directly or indirectly, either outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving entity in such transaction or more than 50% of the combined outstanding voting power of the parent of the surviving entity in such transaction; or
5.the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company if, immediately after the consummation of such transaction, (A) the shareholders of the Company immediately prior thereto own, directly or indirectly, either outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving entity in such transaction or more than 50% of the combined outstanding voting power of the parent of the surviving 

entity in such transaction, (B) the Company is not the surviving entity, other than a reorganization or other transaction with an affiliate or (C) at the direction of the counter-party to such transaction, the individuals who were serving as the Chief Executive Officer and Chief Financial Officer of the Company as of the consummation of such transaction will not continue to serve as the Chief Executive Officer and Chief Financial Officer, respectively, of the Company or the surviving entity in such transaction (or, if the Company or the surviving entity is not the parent entity, of the parent entity).  
Notwithstanding the foregoing, a Change in Control shall not be deemed to have occurred by virtue of a Qualified Event or any transaction or series of integrated transactions primarily intended to change the state of incorporation of the Company or immediately following which the shareholders of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in a Person that owns all or substantially all of the voting securities or assets of the Company immediately following such transaction or series of transactions.
D.Closing shall mean the Closing as defined in that certain Contribution and Purchase Agreement by and among the Company, Steadfast Apartment REIT Operating Partnership, L.P. and Steadfast REIT Investments, LLC, dated as of August 31, 2020.
E.Code shall mean the Internal Revenue Code of 1986, as amended from time to time. 
F.Code §83(b) Election shall mean the election available to the recipient of property transferred in connection with the performance of services to include in gross income under Code §83(b) the excess of the fair market value of the property transferred determined as of the time of transfer over the amount (if any) paid for such property as compensation for services. 
G.Common Stock shall mean the common stock of the Company. 
H.Company shall mean Steadfast Apartment REIT, Inc., and any successor thereto. 
I.Committee shall mean the Compensation Committee of the Board of Directors. 
J.Exchange Act shall mean the Securities Exchange Act of 1934, as amended from time to time.
K.Exchange Act Person shall mean any Person or group (as defined in Section 13(d)(3) of the Exchange Act), except that “Exchange Act Person” will not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding securities pursuant to a registered public offering of such securities, (iv) an entity owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of shares of the 

Company or (v) any Person that, as of immediately prior to the transaction or series of transactions, is the owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities.
L.Plan shall mean the Steadfast Apartment REIT, Inc. Amended and Restated 2013 Incentive Plan. 
M.Qualified Event shall mean either of the following: (a) an initial listing of the Company’s (or a successor’s or parent entity’s) stock on the New York Stock Exchange, NASDAQ (for clarity, other than a listing pursuant to a transaction described in Section 6(b)(v) above) or on any other nationally recognized stock exchange; or (b) an underwritten public offering of the Company’s (or a successor’s or parent entity’s) stock pursuant to an effective registration statement under the Securities Act of 1933, as amended from time to time, which shares are approved for listing or quotation on the New York Stock Exchange, NASDAQ or on any other nationally recognized stock exchange.
N.Recipient shall mean the individual shown on this Agreement as the Recipient. 
O.Unvested Award Shares shall mean the Award Shares which have not become vested pursuant to the Vesting Schedule or otherwise. 
P.Vested Award Shares shall mean the Award Shares which have become vested pursuant to the Vesting Schedule or otherwise. 
 

EXHIBIT B 
ELECTION UNDER SECTION 83(b) 
OF THE INTERNAL REVENUE CODE 
The undersigned taxpayer (the “Taxpayer”) hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include in his gross income for the current taxable year, the amount of any compensation taxable to him in connection with his receipt of the property described below: 
1. The name, address and taxpayer identification number of the undersigned Taxpayer are as follows: 
 
									
			
	Name:	 	 
		
	Address:	 	 
		
	Social Security Number (TIN):	 	 

2. The property with respect to which the election is made is: 
shares of common stock of Steadfast Apartment REIT, Inc.  
3. The date on which the property was transferred and the taxable year for which this election is made are: 
 
									
			
	Date on Which Property Was Transferred:	 	 
		
	Taxable Year for Which Election is Made:	 	 

4. The property is subject to transferability, forfeiture and other restrictions, all as set forth in a Restricted Stock Agreement between the Taxpayer and Steadfast Apartment REIT, Inc.  
5. The fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms will never lapse, of such property is: 
 
			
	
	$________ /Share X  ________Shares = $ ________

6. No amount was paid for such property. 

The undersigned Taxpayer has submitted copies of this statement to Steadfast Apartment REIT, Inc., the person for whom the services were performed in connection with the Taxpayer’s receipt of the above-described property. The Taxpayer is the person performing the services in connection with the transfer of said property. The undersigned Taxpayer understands that the foregoing election may NOT be revoked except with the consent of the Commissioner. 
THE UNDERSIGNED TAXPAYER UNDERSTANDS AND ACKNOWLEDGES THAT, FOR THIS ELECTION TO BE EFFECTIVE, COPIES OF THIS COMPLETED ELECTION FORM MUST BE FILED WITH THE INTERNAL REVENUE SERVICE (AT THE LOCATION WHERE THE TAXPAYER’S INCOME TAX RETURN WOULD BE FILED) NOT LATER THAN 30 DAYS AFTER THE DATE THE ABOVE-DESCRIBED PROPERTY WAS TRANSFERRED TO THE TAXPAYER. A COPY OF THIS COMPLETED ELECTION MUST ALSO BE SUBMITTED TO STEADFAST APARTMENT REIT, INC., ALONG WITH FULL PAYMENT OF AMOUNTS REQUIRED TO BE WITHHELD UNDER APPLICABLE LAW, WITHIN 30 DAYS AFTER THE DATE THE ABOVE-DESCRIBED PROPERTY WAS TRANSFERRED TO THE TAXPAYER. 
 
															
					
		 	Dated this day of       , 2021
			
		 	Signature:	 	 
			
		 	Name of Taxpayer:	 	 

 
Code §83(b) Election Form 

EXHIBIT C 
WITHHOLDING ELECTION 
									
			
	TO:	 	Steadfast Apartment REIT, Inc.
		
	RE:	 	Withholding Election
	
	This election relates to the number of shares of common stock of the Company which will vest on the date noted below (the “Vesting Shares”):

	
	Number of Vesting Shares:
	
	Date of Vesting:

 
			
	
	Restricted Stock Agreement:
 

	Restricted Stock Agreement between the Recipient (designated below) and Steadfast Apartment REIT, Inc. (the “Company”).

	
	Award Date: March   , 2021

	
	Total Number of Restricted Shares subject to Restricted Stock Agreement:  

	

 
 
 
I, the undersigned Recipient, hereby certify that: 
-My correct name and social security number and my current address are set forth at the end of this document. 
-I have read and understand the Restricted Stock Agreement and the various methods by which withholding obligations regarding the Vesting Shares subject to the Restricted Stock Agreement may be satisfied. 
-I do hereby elect the following method of withholding pursuant to Section 1.4 of the Restricted Stock Agreement with respect to any withholding or other tax obligations (whether federal, state or local) imposed on the Company by reason of the substantial vesting of the Vesting Shares (the “Withholding Obligations”), assuming that I have met all requirements under the Plan relative to such election and such election is approved by the Company: 
 

						
	 ̈	In accordance with Section 1.4(b)(1), I hereby elect to pay to the Company the entire amount of all Withholding Obligations with respect to the Vesting Shares in cash or by check on or before the Date of Vesting.

						
	 ̈	In accordance with Section 1.4(b)(2), I hereby elect that the entire amount of all Withholding Obligations with respect to the Vesting Shares should be paid by having the Company repurchase the smallest whole number of the Vested Shares which, when multiplied by the fair market value per share of the common stock of the Company as of the close of business on the business day which is coincident with or immediately follows the Date of Vesting, will be sufficient to satisfy the amount of such Withholding Obligations, and applying all the proceeds from such repurchase to such Withholding Obligations. I further acknowledge and understand that the repurchase by the Company of any Vested Shares may result in tax consequences to me.

-I understand that capitalized terms used in this Withholding Election without definition herein shall have the meanings given to them in the Restricted Stock Agreement and in the Plan. 
-I also understand that if I do not timely (in accordance with the Restricted Stock Agreement and the Plan) submit this form properly completed, I shall be responsible for timely paying all Withholding Obligations and that the Company may withhold an amount sufficient to pay all the Withholding Obligations from any other amounts due or owing to me (including salary) if I do not do so. 
 
																					
							
		 		 	RECIPIENT:	 	
	Dated this day of      , 202_	 		 		 	
			
	Recipient’s Address:
	 		 	 
				
	 	 		 	Printed Name:	 	 
			
	 	 		 	
				
	 	 		 		 	

 
Withholding Election Form

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