Document:

Exhibit 10.5

 

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

 

PUBLIC
HEALTH SERVICE

 

PATENT
LICENSE AGREEMENT – EXCLUSIVE

 

This
Agreement is based on the model Patent License Exclusive Agreement adopted by the U.S. Public Health Service (“PHS”)
Technology Transfer Policy Board for use by components of the National Institutes of Health (“NIH”), the Centers
for Disease Control and Prevention (“CDC”), and the Food and Drug Administration (“FDA”),
which are agencies of the PHS within the Department of Health and Human Services (“HHS”).

 

This
Cover Page identifies the Parties to this Agreement:

 

The
U.S. Department of Health and Human Services, as represented by

 

The
National Institute on Alcohol Abuse and Alcoholism (hereinafter referred to as the “NIAAA”) and

 

The National Institute
on Drug Abuse (hereinafter referred to as the “NIDA”)

 

(hereinafter
referred to as the “IC”) of the

 

National
Institutes of Health (hereinafter referred to as the “NIH”)

 

and

 

Vital
Spark, Inc.,

 

hereinafter
referred to as the “Licensee”,

 

having
offices at 11 Reuven Shari, Jerusalem, Israel

 

created and operating under the laws of Delaware, USA

 

Tax ID No.: 32-0462348

 

    	 

     

    

 

For
the IC internal use only:

 

License
Number:

 

License
Application Number:A-034-2016

 

Serial
Number(s) of Licensed Patent(s) or Patent Application(s):

 

E-140-2014/0
Patent Family

Entitled,
 “Cannabinoid Receptor Mediating Compounds”

Inventors:
George Kunos (NIAAA), Malliga R. Iyer (NIAAA), Resat Cinar (NIAAA), and Kenner C. Rice (NIDA), including PCT Application No.
PCT/US2015/029946, filed on May 08, 2015, claiming priority to US Provisional Application No. 61/991,333 filed on May
09, 2014, and corresponding US, AU, CA, EP, CN, IN and JP filings

 

E-282-2012/0
Patent Family

Entitled,
 “Cannabinoid Receptor Mediating Compounds”

Inventors:
George Kunos (NIAAA), Malliga R. Iyer (NIAAA), Resat Cinar (NIAAA), and Kenner C. Rice (NIDA) including PCT Application No.
PCT/US2013/069686, filed on November 12, 2013, claiming priority to U.S. Provisional Patent Application No.
61/725,949 filed on November 13, 2012, and corresponding US, CA, EP, CN, IN and JP filing

 

E-282-2012/1
Patent Family

Entitled,
 “Cannabinoid Receptor Mediating Compounds”

Inventors:
George Kunos (NIAAA), Malliga R. Iyer (NIAAA), Resat Cinar (NIAAA),
and Kenner C. Rice (NIDA) including PCT Application No. PCT/US2016/035291, filed on June 01, 2016, claiming priority
to US Provisional Application No. 62/171, 179 filed on June 04, 2015

 

Cooperative
Research and Development Agreement (CRADA) Number (if a subject invention):N/A

 

Additional
Remarks: CRADA01638 is pending negotiation between the NIAAA
and Licensee.

 

Public
Benefit(s):Commercial development of the CB1/iNOS series of compounds will benefit public health by providing a new therapeutic
to treat systemic sclerosis and scleroderma
and other skin fibrotic diseases in humans.

 

This
Patent License Agreement, hereinafter referred to as the “Agreement”, consists
of this Cover Page, an attached Agreement, a
Signature Page, Appendix A (List of Patent(s) or Patent Application(s)), Appendix B (Fields of Use and Territory), Appendix C
(Royalties), Appendix D (Benchmarks and Performance), Appendix E (Commercial Development Plan), Appendix F (Example Royalty
Report), and Appendix G (Royalty Payment Options).

 

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The
IC and the Licensee agree
as follows:

 

		1.	BACKGROUND

 

		1.1	In the course of conducting biomedical and behavioral
research, the IC investigators
made inventions that may have commercial applicability.

 

		1.2	By assignment
                                         of rights from IC employees
                                         and other inventors, HHS,
                                         on behalf of the Government,
                                         owns intellectual property rights claimed in any United States or foreign patent
                                         applications or patents corresponding to the assigned inventions. HHS
                                         also owns any tangible embodiments of these inventions actually reduced to
                                         practice by the IC.

 

		1.3	The Secretary of HHS
has delegated to the IC
the authority to enter into this Agreement
for the licensing of rights to these inventions.

 

		1.4	The IC
desires to transfer these inventions to the private sector through commercialization licenses to facilitate the commercial
development of products and processes for public use and benefit.

 

		1.5	The Licensee
desires to acquire commercialization rights to certain of these inventions in order to develop processes, methods,
or marketable products for public use and benefit.

 

		2.	DEFINITIONS

 

		2.1	“Affiliate(s)”
                                         means a corporation or other business entity, which directly or indirectly is
                                         controlled by or controls, or is under common control with the Licensee.
                                         For this purpose, the term “control” shall mean ownership of more
                                         than fifty percent (50%) of the voting stock or other ownership interest of the corporation
                                         or other business entity, or the power to elect or appoint more than fifty percent (50%)
                                         of the members of the governing body of the corporation or other business entity.

 

		2.2	“Benchmarks”
mean the performance milestones that are set forth in Appendix D.

 

		2.3	“Commercial
Development Plan” means the written commercialization plan attached as Appendix E.

 

		2.4	“CRADA”
means a Cooperative Research and Development Agreement.

 

		2.5	“FDA”
                                                                                                                      means the Food and Drug Administration.

 

		2.6	“First
Commercial Sale” means the initial transfer by or on behalf of the Licensee
or its sublicensees of the Licensed
Products or the initial practice of a Licensed
Process by or on behalf of the Licensee
or its sublicensees in exchange for cash or some equivalent to which value can be assigned for the purpose of determining
Net Sales.

 

		2.7	“Government”
means the Government of the United States of America.

 

		2.8	“Licensed
Fields of Use” means the fields of use identified in Appendix B.

 

		2.9	“Licensed Patent Rights” shall
mean:

 

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		(a)	Patent applications (including provisional patent applications
and PCT patent applications) or patents listed in Appendix A, all divisions and continuations of these applications, all patents
issuing from these applications, divisions, and continuations, and any reissues, reexaminations, and extensions of these patents;

 

		(b)	to the extent that the following contain one or more
claims directed to the invention or inventions disclosed in 2.9(a):

 

		(i)	continuations-in-part of 2.9(a);

 

		(ii)	all divisions and continuations of these continuations-in-part;

 

		(iii)	all patents issuing from these continuations-in-part,
divisions, and continuations;

 

		(iv)	priority patent application(s) of 2.9(a); and

 

		(v)	any reissues, reexaminations, and extensions of these
patents;

 

		(c)	to the extent that the following contain one or more
claims directed to the invention or inventions disclosed in 2.9(a): all counterpart foreign and U.S. patent applications and patents
to 2.9(a) and 2.9(b), including those listed in Appendix A; and

 

		(d)	Licensed
Patent Rights shall not
include 2.9(b) or 2.9(c) to the extent that they contain one or more claims directed to new matter which is not the subject matter
disclosed in 2.9(a).

 

		2.10	“Licensed
Processes” means processes which, in the course of being practiced, would be within the scope of one or more claims
of the Licensed Patent Rights
that have not been held unpatentable, invalid or unenforceable by an unappealed or unappealable judgment of a court of competent
jurisdiction.

 

		2.11	“Licensed
Products” means tangible materials which, in the course of manufacture, use, sale, or importation, would be within
the scope of one or more claims of the Licensed
Patent Rights that have not been held unpatentable, invalid or unenforceable by an unappealed or unappealable judgment
of a court of competent jurisdiction.

 

		2.12	“Licensed
Territory” means the geographical area identified in Appendix B.

 

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		2.13	“Net
Sales” means the total gross receipts for sales of Licensed
Products or practice of Licensed
Processes by or on behalf of the Licensee
or its sublicensees, and from leasing, renting, or otherwise making the Licensed
Products available to others without sale or other dispositions, whether invoiced or not, less returns and allowances,
distribution cost, packing costs, insurance costs, freight out, taxes or excise duties imposed on the transaction (if separately
invoiced), and wholesaler and cash discounts in amounts customary in the trade to the extent actually granted. No deductions shall
be made for commissions paid to individuals, whether they are with independent sales agencies or regularly employed by the Licensee,
or sublicensees, and on its payroll, or for the cost of collections. Net
Sales shall specifically exclude consideration received from the transfer of Licensed
Products if the transfer is: (a) as promotional samples, and (b) as donations (for example, to non-profit institutions,
international donor agencies, non-governmental organizations (NGOs), charitable organizations or government agencies for non-commercial
purposes).

 

		2.14	“Practical
Application” means to manufacture in the case of a composition or product, to practice in the case of a process
or method, or to operate in the case of a machine or system; and in each case, under these conditions as to establish that the
invention is being utilized and that its benefits are to the extent permitted by law or Government
regulations available to the public on reasonable terms.

 

		2.15	“Research
License” means a nontransferable, nonexclusive license to make and to use the Licensed
Products or the Licensed Processes
as defined by the Licensed Patent
Rights for purposes of research and not for purposes of commercial manufacture or distribution or in lieu of purchase.

 

		2.16	“Third
                                         Party Applicant” means
                                         any non-Licensee applicant
                                         from whom IC
                                         receives
                                         a license application for Licensed Patent Rights in
                                         the Licensed Fields of Use.

 

		3.	GRANT
OF RIGHTS

 

		3.1	The IC hereby grants and the Licensee
accepts, subject to the terms and conditions of this Agreement,
an exclusive license under the Licensed
Patent Rights in the Licensed
Territory to make and have made, to use and have used, to sell and have sold, to offer to sell, and to import and export
any Licensed Products in the Licensed
Fields of Use and to practice and have practiced any Licensed
Process(es) in the Licensed Fields
of Use.

 

		3.2	This Agreement
confers no license or rights by implication, estoppel, or otherwise under any patent applications or patents of the
IC other than the Licensed Patent
Rights regardless of whether these patents are dominant or subordinate to the Licensed
Patent Rights.

 

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		3.3	If IC
receives an acceptable written license application from a Third
Party Applicant for commercial development of Licensed
Products or Licensed Processes,
as they pertain to Licensed Patent
Rights which is included in the scope of the Licensed
Field of Use under this Agreement
and for which the proposed commercial development is not specifically addressed in Licensee's
then-current Commercial Development
Plan, IC shall notify
Licensee, in writing, of the existence
of the Third Party Applicant's license
application, identifying the scientific, clinical or technical basis for its belief that such commercial development should occur.
Upon receipt of such written notice, Licensee
shall have the right within ninety (90) days to amend its Commercial
Development Plan in a manner acceptable to IC
including revised Benchmarks
to be incorporated into Appendix D. Acceptance of said amendment to said Commercial
Development Plan by IC
shall take into account Licensee's ongoing
efforts and normal drug development standards for obtaining FDA
approval for multiple indication prophylactic and therapeutic products. If Licensee
does not amend its Commercial
Development Plan in a manner acceptable to IC
to include a clinical research and development program for the proposed commercial development of said Licensed
Products or Licensed Processes
of such third party including revised Benchmarks
to be incorporated into Appendix D; IC
shall remove said Licensed Products
or Licensed Processes
from Licensed Fields of Use, and
IC shall be free to license said
Licensed Products or Licensed
Processes to said third party.

 

		4.	SUBLICENSING

 

		4.1	Upon written approval, which shall include prior review
of any sublicense agreement by the IC
and which shall not be unreasonably withheld, the Licensee
may enter into sublicensing agreements under the Licensed
Patent Rights. IC shall provide its response within thirty (30) days as of the written request made by the Licensee.
A lack of response from the IC
within thirty (30) days of receipt of said written request by the IC
shall be deemed an approval by the IC.

 

		4.2	The Licensee
agrees that any sublicenses granted by it shall provide that the obligations to the IC of Paragraphs 5.1-5.4,
8.1, 10.1, 10.2, 12.5, and 13.8-13.10 of this Agreement
shall be binding upon the sublicensee as if it were a party to this Agreement.
The Licensee further agrees
to attach copies of these Paragraphs to all sublicense agreements.

 

		4.3	Any sublicenses
granted by the Licensee shall provide for the termination
of the sublicense, or the conversion to a license directly between the sublicensees and the IC, at the option of the sublicensee,
upon termination of this Agreement under Article 13. This
conversion is subject to the IC approval and contingent upon acceptance by the sublicensee of the remaining provisions
of this Agreement.

 

		4.4	The Licensee
agrees to forward to the IC
a complete copy of each fully executed sublicense agreement postmarked within thirty (30) days of the execution of the agreement.
To the extent permitted by law, the IC
agrees to maintain each sublicense agreement in confidence.

 

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		5.	STATUTORY
AND NIH REQUIREMENTS AND RESERVED GOVERNMENT RIGHTS

 

		5.1	(a)          The IC
reserves on behalf of the Government
an irrevocable, nonexclusive, nontransferable, royalty-free license for the practice of all inventions licensed           under
the Licensed Patent Rights throughout
the world by or on behalf of the            Government
and on behalf of any foreign government or international organization pursuant to any existing or future treaty or
agreement to which the Government is
a signatory. Prior to the First Commercial
Sale, the Licensee
agrees to provide the IC with
commercially reasonable quantities of the Licensed Products or materials made through the Licensed
           Processes for IC research
use; and

 

			(b)          in the event that the Licensed
Patent Rights are Subject Inventions made under CRADA
the Licensee grants
to the Government, pursuant to
15 U.S.C. §3710a(b)(1)(A), a nonexclusive, nontransferable, irrevocable, paid-up license to practice the Licensed
Patent Rights or have the Licensed
Patent Rights practiced throughout the world by or on behalf of the Government.
In the exercise of this license, the Government
shall not publicly disclose trade secrets or commercial or financial information that is privileged or confidential
within the meaning of 5 U.S.C. §552(b)(4) or which would be considered as such if it had been obtained from a non-Federal
party. Prior to the First Commercial Sale,
the Licensee agrees to
provide the IC with commercially
reasonable quantities of the Licensed Products
or materials made through the Licensed
Processes for IC research
use.

 

		5.2	The Licensee
agrees that products used or sold in the United States embodying the Licensed
Products or produced through use of the Licensed
Processes shall be manufactured substantially in the United States, unless a written waiver is obtained in advance
from the IC.

 

		5.3	The Licensee
acknowledges that the IC may enter into future
CRADAs under the Federal Technology Transfer Act of 1986
that relate to the subject matter of this Agreement. The
Licensee agrees not to unreasonably deny requests for a
Research License from future collaborators with the IC
when acquiring these rights is necessary in order to make a CRADA
project feasible, provided that, with respect to such Research
License, Licensee shall not be required to disclosed any of its confidential information and trade secrets.
The Licensee may request an opportunity to join as a party
to the proposed CRADA.

 

		5.4	

 

		(a)	In addition to the
                                         reserved license of Paragraph 5.1, the IC reserves the right to grant Research
                                         Licenses directly or to require the Licensee
                                         to grant Research
                                         Licenses on reasonable terms, provided however that Licensee
                                         shall not be required to disclose any confidential information and trade secrets.

 

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		(b)	The purpose of these
                                         Research Licenses
                                         is to encourage basic research, whether conducted at an academic or corporate facility.
                                         In order to safeguard the Licensed
                                         Patent Rights, however, the IC shall consult with the Licensee
                                         before granting to commercial entities a Research
                                         License or providing to them research samples of materials made through the
                                         Licensed Processes;
                                         and

 

		(c)	in exceptional circumstances, and in the event that the
Licensed Patent Rights are Subject
Inventions made under a CRADA, the
Government, pursuant to 15 U.S.C.
 §3710a(b)(1)(B), retains the right to require the Licensee
to grant to a responsible applicant a nonexclusive, partially exclusive, or exclusive sublicense to usethe Licensed
Patent Rights in the Licensed
Field of Use on terms that are reasonable under the circumstances, or if the Licensee
fails to grant this license, the Government
retains the right to grant the license itself. The exercise of these rights by the Government
shall only be in exceptional circumstances and only if the Government
determines:

 

		(i)	the action is necessary to meet health or safety needs
that are not reasonably satisfied by the Licensee;

 

		(ii)	the action is necessary to meet requirements for public
use specified by Federal regulations, and these requirements are not reasonably satisfied by the Licensee;
or

 

		(iii)	the Licensee
has failed to comply with an agreement containing provisions described in 15 U.S.C. §3710a(c)(4)(B); and

 

		(d)	the determination made by the Government
under this Paragraph 5.4 is subject to administrative appeal and judicial review under 35 U.S.C. §203(b).

 

		6.	ROYALTIES
AND REIMBURSEMENT

 

		6.1	The Licensee
agrees to pay the IC
a noncreditable, nonrefundable license issue royalty as set forth in Appendix C.

 

		6.2	The Licensee
agrees to pay the IC
a nonrefundable minimum annual royalty as set forth in Appendix C.

 

		6.3	The Licensee
agrees to pay the IC
earned royalties as set forth in Appendix C.

 

		6.4	The Licensee
agrees to pay the IC
benchmark royalties as set forth in Appendix C.

 

		6.5	The Licensee
agrees to pay the IC
sublicensing royalties as set forth in Appendix C.

 

		6.6	A patent or patent application licensed under this Agreement
shall cease to fall within the Licensed
Patent Rights for the purpose of computing earned royalty payments in any given country on the earliest of the dates
that:

 

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		(a)	the application has been abandoned and not continued;

 

		(b)	the patent expires or irrevocably lapses, or

 

		(c)	the patent has been held to be invalid or unenforceable by an unappealed or unappealable
                                                                               decision of a court of competent jurisdiction or administrative agency.

 

		6.7	No multiple royalties shall be payable because any Licensed
Products or Licensed Processes
are covered by more than one of the Licensed
Patent Rights.

 

		6.8	On sales of the Licensed
Products by the Licensee
to sublicensees or on sales made in other than an arms-length transaction, the value of the Net
Sales attributed under this Article 6 to this transaction shall be that which would have been received in an arms-length
transaction, based on sales of like quantity and quality products on or about the time of this transaction.

 

		6.9	With regard to unreimbursed expenses associated with
the preparation, filing, prosecution, and maintenance of all patent applications and patents included within the Licensed
Patent Rights and paid by the IC
prior to the effective date of this Agreement,
the Licensee shall pay
the IC, as an additional royalty,
within sixty (60) days of the IC’s
submission of a statement and request for payment to the Licensee,
an amount equivalent to these unreimbursed expenses previously paid by the IC.
When other-exclusive-licenses are granted to the Licensed
Patent Rights, the Licensee
will only be liable to pay its respective share resulting from such unreimbursed expenses being equally divided.

 

		6.10	With regard to unreimbursed expenses associated with
the preparation, filing, prosecution, and maintenance of all patent applications and patents included within the Licensed
Patent Rights and paid by the IC on or after the effective date of this Agreement,
the IC, at its sole option, may require the Licensee to pay the IC on an annual basis, within sixty (60) days of
the IC’s submission of a statement and request for payment, a royalty amount equivalent to these unreimbursed expenses paid during
the previous calendar year(s). IC shall have the right to require Licensee

 

		(a)	to pay these unreimbursed expenses directly to the law
firm employed by the IC to handle these functions, however, in this event, the IC and not the Licensee
shall be the client of the law firm; or

 

		(b)	in limited circumstances, the Licensee
may be given the right to assume responsibility for the preparation, filing, prosecution, or maintenance of any patent
application or patent included with the Licensed
Patent Rights. In that event, the Licensee
shall directly pay the attorneys or agents engaged to prepare, file, prosecute, or maintain these patent applications
or patents and shall provide the IC with copies of each invoice associated with these services as well as documentation
that these invoices have been paid.

 

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		6.11	The IC
agrees, upon written request, to provide the Licensee
with summaries of patent prosecution invoices for which the IC
has requested payment from the Licensee
under Paragraphs 6.9 and 6.10. The Licensee
agrees that all information provided by the IC
related to patent prosecution costs shall be treated as confidential commercial information and shall not be released
to a third party except as required by law or a court of competent jurisdiction.

 

		6.12	The Licensee
may elect to surrender its rights in any country of the Licensed
Territory under any of the Licensed
Patent Rights upon ninety (90) days written notice to the IC and owe no payment obligation under Paragraph 6.10 for
patent-related expenses paid in that country after ninety (90) days of the effective date of the written notice.

 

		7.	PATENT
FILING, PROSECUTION, AND MAINTENANCE

 

		7.1	Except as otherwise provided in this Article 7, the IC
agrees to take responsibility for, but to consult with, the Licensee
in the preparation, filing, prosecution, and maintenance of any and all patent applications or patents included in
the Licensed Patent Rights and
shall furnish copies of relevant patent-related documents to the Licensee.

 

		7.2	Upon the IC’s
written request, the Licensee
shall assume the responsibility for the preparation, filing, prosecution, and maintenance of any and all patent applications
or patents included in the Licensed Patent
Rights and shall, on an ongoing basis, promptly furnish copies of all patent-related documents to the IC.
In this event, the Licensee shall,
subject to the prior approval of the IC,
select registered patent attorneys or patent agents to provide these services on behalf of the Licensee
and the IC. The IC
shall provide appropriate powers of attorney and other documents necessary to undertake this action to the patent attorneys
or patent agents providing these services. The Licensee
and its attorneys or agents shall consult with the IC
in all aspects of the preparation, filing, prosecution and maintenance of patent applications and patents included
within the Licensed Patent Rights
and shall provide the IC sufficient
opportunity to comment on any document that the Licensee
intends to file or to cause to be filed with the relevant intellectual property or patent office.

 

		7.3	At any time, the IC
may provide the Licensee
with written notice that the IC
wishes to assume control of the preparation, filing, prosecution, and maintenance of any and all patent applications or patents
included in the Licensed Patent Rights.
If the IC elects to reassume these
responsibilities, the Licensee
agrees to cooperate fully with the IC,
its attorneys, and agents in the preparation, filing, prosecution, and maintenance of any and all
patent applications or patents included in the Licensed
Patent Rights and to provide the IC
with complete copies of any and all documents or other materials that the IC
deems necessary to undertake such responsibilities. The Licensee
shall be responsible for all costs associated with transferring patent prosecution responsibilities to an attorney
or agent of the IC’s choice.

 

		7.4	Each party shall promptly inform the other as to all
matters that come to its attention that may affect the preparation, filing, prosecution, or maintenance of the Licensed
Patent Rights and permit each other to provide comments and suggestions with respect to the preparation, filing, prosecution,
and maintenance of the Licensed Patent Rights,
which comments and suggestions shall be considered by the other party in good faith.

 

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		8.	RECORD
KEEPING

 

		8.1	The Licensee
                                         agrees to keep accurate and correct records of the Licensed
                                         Products made, used, sold, or imported and the Licensed
                                         Processes practiced under this Agreement
                                         appropriate to determine the amount of royalties due the IC.
                                         These records shall be retained for at least five (5) years following a
                                         given reporting period and shall be available, subject to a reasonable prior notice to
                                         the Licensee, during
                                         normal business hours for inspection, at the expense of the IC,
                                         by an accountant or other designated auditor selected by the IC
                                         for the sole purpose of verifying reports and royalty payments hereunder.
                                         The accountant or auditor shall only disclose to the IC
                                         information relating to the accuracy of reports and royalty payments made
                                         under this Agreement.
                                         If an inspection shows an underreporting or underpayment in excess of five percent
                                         (5%) for any twelve (12) month period, then the Licensee
                                         shall reimburse the IC
                                         for the cost of the inspection at the time the Licensee
                                         pays the unreported royalties, including any additional royalties as required
                                         by Paragraph 9.8. All royalty payments required under this Paragraph shall be due within
                                         sixty (60) days of the date the IC
                                         provides to the Licensee
                                         notice of the payment due.

 

		9.	REPORTS
ON PROGRESS, BENCHMARKS, SALES, AND PAYMENTS

 

		9.1	Prior to signing this Agreement,
the Licensee has provided
the IC with the Commercial
Development Plan in Appendix E, under which the Licensee
intends to bring the subject matter of the Licensed
Patent Rights to the point of Practical
Application. This Commercial Development
Plan is hereby incorporated by reference into this Agreement.
Based on this plan, performance Benchmarks
are determined as specified in Appendix D.

 

		9.2	The Licensee
                                         shall provide written annual reports on its product development progress or
                                         efforts to commercialize under the Commercial
                                         Development Plan for each of the Licensed
                                         Fields of Use within sixty (60) days after December 31
                                         of each calendar year. These progress reports shall include, but not be limited
                                         to: progress on research and development, status of applications for regulatory approvals,
                                         manufacture and status of sublicensing, marketing, importing, and sales during the preceding
                                         calendar year, as well as, plans for the present calendar year. The IC
                                         also encourages these reports to include information on any of the Licensee's
                                         public service activities that relate to the Licensed
                                         Patent Rights. If reported progress differs from that projected in the Commercial
                                         Development Plan and Benchmarks,
                                         the Licensee
                                         shall explain the reasons for these differences. In the annual report, the Licensee
                                         may propose amendments to the Commercial
                                         Development Plan, acceptance of which by the IC
                                         may not be denied unreasonably. The Licensee
                                         agrees to provide any additional information reasonably required by the IC
                                         to evaluate the Licensee's
                                         performance under this Agreement.
                                         The Licensee
                                         may amend the Benchmarks
                                         at any time upon written approval by the IC.
                                         The IC
                                         shall not unreasonably withhold approval of any request of the Licensee
                                         to extend the time periods of this schedule if the request is supported by
                                         a reasonable showing by the Licensee
                                         of diligence in its performance under the Commercial
                                         Development Plan and toward bringing the Licensed
                                         Products to the point of Practical
                                         Application as defined in 37 C.F.R. §404.3(d). The Licensee
                                         shall amend the Commercial
                                         Development Plan and Benchmarks
                                         at the request of the IC
                                         to address any Licensed
                                         Fields of Use not specifically addressed in the plan originally submitted.

 

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		9.3	The Licensee
shall report to the IC
the dates for achieving Benchmarks
specified in Appendix D and the First
Commercial Sale in each country in the Licensed
Territory within thirty (30) days of such occurrences.

 

		9.4	The Licensee
shall submit to the IC, within sixty (60) days after each calendar half-year ending June 30 and December 31,
a royalty report, as described in the example in Appendix F, setting forth for the preceding half-year period the amount of the
Licensed Products sold or Licensed
Processes practiced by or on behalf of the Licensee in
each country within the Licensed Territory, the Net
Sales, and the amount of royalty accordingly due. With each royalty report, the Licensee
shall submit payment of earned royalties due. If no earned royalties are due to the IC for any reporting period,
the written report shall so state. The royalty report shall be certified as correct by an authorized officer of the Licensee
and shall include a detailed listing of all deductions made under Paragraph 2.13 to determine Net
Sales made under Article 6 to determine royalties due. The royalty report shall also identify the site of manufacture
for the Licensed Product(s) sold in the United States.

 

		9.5	The Licensee
agrees to forward semi-annually to the IC a copy of these reports received by the Licensee
from its sublicensees during the preceding half-year period as shall be pertinent to a royalty accounting to the IC
by the Licensee for activities
under the sublicense.

 

		9.6	Royalties due under
                                         Article 6 shall be paid in U.S. dollars and payment options are listed in Appendix G.
                                         For conversion of foreign currency to U.S. dollars, the conversion rate shall be the
                                         New York foreign exchange rate quoted in The
                                         Wall Street Journal on the day that
                                         the payment is due. Any loss of exchange, value, taxes, or other expenses incurred in
                                         the transfer or conversion to U.S. dollars shall be paid entirely by the Licensee.
                                         The royalty report required by Paragraph 9.4 shall be mailed to the IC
                                         at its address for Agreement
                                         Notices indicated on the Signature Page.

 

		9.7	The Licensee
shall be solely responsible for determining if any tax on royalty income is owed outside the United States and shall
pay the tax and be responsible for all filings with appropriate agencies of foreign governments.

 

		9.8	Additional royalties may be assessed by the IC
on any payment that is more than ninety (90) days overdue at the rate of one percent (1%) per month. This one percent (1%) per
month rate may be applied retroactively from the original due date until the date of receipt by the IC of the overdue payment
and additional royalties. The payment of any additional
royalties shall not prevent the IC from exercising any other rights it may have as a consequence of the lateness of any
payment.

 

		9.9	All plans and reports required by this Article 9 and
marked “confidential” by the Licensee
shall, to the extent permitted by law, be treated by the IC as commercial and financial information obtained
from a person and as privileged and confidential, and any proposed disclosure of these records by the IC under the Freedom
of Information Act (FOIA), 5 U.S.C. §552 shall be subject to the predisclosure notification requirements of 45 C.F.R. §5.65(d).

 

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		10.	PERFORMANCE

 

		10.1	The Licensee
shall use its reasonable commercial efforts to bring the Licensed
Products and the Licensed Processes
to Practical Application.
“Reasonable commercial efforts” for the purposes of this provision shall include adherence to the Commercial
Development Plan in Appendix E and performance of the Benchmarks
in Appendix D. The efforts of a sublicensee shall be considered the efforts of the Licensee.

 

		10.2	Upon the First
Commercial Sale, until the expiration or termination of this Agreement,
the Licensee shall use
its reasonable commercial efforts to make the Licensed
Products and the Licensed Processes
reasonably accessible to the United States public.

 

		10.3	The Licensee
agrees, after its First Commercial
Sale and to the extent commercially reasonable, to make reasonable quantities of the Licensed
Products or materials produced through the use of the Licensed
Processes available to patient assistance programs. The IC
agrees that such a commitment by Licensee
shall not create an undue commercial burden upon Licensee,
i.e., delay and/or materially affect the commercial development of the Licensed
Product(s) or Licensed Process(es).
Licensee will not be required to pay any earned royalty under Paragraph 6.3 of this Agreement
with respect to any Licensed Products
or materials used in Licensed
Processes that are made available pursuant to this Paragraph 10.3.

 

		10.4	The Licensee
agrees, after its First Commercial
Sale and as part of its marketing and product promotion, to develop educational materials (e.g., brochures, website,
etc.) directed to patients and physicians detailing the Licensed
Products or medical aspects of the prophylactic and therapeutic uses of the Licensed
Products.

 

		10.5	The Licensee
                                         agrees to supply, to the Mailing Address for Agreement
                                         Notices indicated on the Signature Page, the Office of Technology Transfer,
                                         NIH with inert
                                         samples of the Licensed Products
                                         or the Licensed
                                         Processes or their packaging for educational and display purposes only.

 

		11.	INFRINGEMENT
AND PATENT ENFORCEMENT

 

		11.1	The IC
and the Licensee agree
to notify each other promptly of each infringement or possible infringement of the Licensed
Patent Rights, as well as, any facts which may affect the validity, scope, or enforceability of the Licensed
Patent Rights of which either party becomes aware.

 

		11.2	Pursuant to this Agreement
and the provisions of 35 U.S.C. Chapter 29, the Licensee
may:

 

		(a)	bring suit in its own name, at its own expense, and on
its own behalf for infringement of presumably valid claims in the Licensed
Patent Rights;

 

		(b)	in any suit, enjoin infringement and collect for its
use, damages, profits, and awards of whatever nature recoverable for the infringement; or

 

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		(c)	settle any claim or suit for infringement made by Licensee
of the Licensed Patent Rights
provided, however,
that the IC and appropriate Government
authorities shall have the first right to take such actions at their own expense; and

 

		(d)	if the Licensee
desires to initiate a suit for patent infringement, the Licensee
shall notify the IC in writing. If the IC does not notify the Licensee
of its intent to pursue legal action within ninety (90) days, the Licensee
shall be free to initiate suit. The IC shall have a continuing right to intervene in the suit. The Licensee
shall take no action to compel the Government
either to initiate or to join in any suit for patent infringement. The Licensee
may request the Government
to initiate or join in any suit if necessary to avoid dismissal of the suit. Should the Government
be made a party to any suit in case the Licensee
requested Government
to join, the Licensee shall reimburse
the Government for any costs,
expenses, or fees which the Government
incurs as a result of the motion or other action, including all costs incurred by the Government
in opposing the motion or other action. In all cases, the Licensee
agrees to keep the IC reasonably apprised of the status and progress of any litigation. Before the Licensee
commences an infringement action, the Licensee
shall notify the IC and give careful consideration to the views of the IC and to any potential effects
of the litigation on the public health in deciding whether to bring suit.

 

		11.3	In the event that a declaratory judgment action alleging
invalidity or non-infringement of any of the Licensed
Patent Rights shall be brought against the Licensee
or raised by way of counterclaim or affirmative defense in an infringement suit brought by the Licensee
under Paragraph 11.2, pursuant to this Agreement
and the provisions of 35 U.S.C. Chapter 29 or other statutes, the Licensee
may:

 

		(a)	defend the suit in
                                         its own name, at its own expense, and on its own behalf for presumably valid claims in
                                         the Licensed Patent Rights;

 

		(b)	in any suit, ultimately to enjoin infringement and to
collect for its use, damages, profits, and awards of whatever nature recoverable for the infringement; and

 

		(c)	settle any claim or suit for declaratory judgment involving
the Licensed Patent Rights-provided,
however, that the IC and appropriate Government
authorities shall have the first right to take these actions and shall have a continuing right to intervene in the
suit at their own expense; and

 

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		(d)	if the IC
does not notify the Licensee
of its intent to respond to the legal action within a reasonable time, the Licensee
shall be free to do so. The Licensee
shall take no action to compel the Government
either to initiate or to join in any declaratory judgment action. The Licensee
may request the Government
to initiate or to join any suit if necessary to avoid dismissal of the suit. Should the Government
be made a party to any suit by motion or any other action of the Licensee,
the Licensee shall reimburse
the Government for any costs,
expenses, or fees, which the Government
incurs as a result of the motion or other action. If the Licensee
elects not to defend against the declaratory judgment action, the IC,
at its option, may do so at its own expense. In all cases, the Licensee
agrees to keep the IC
reasonably apprised of the status and progress of any litigation. Before the Licensee
commences an infringement action, the Licensee
shall notify the IC
and give careful consideration to the views of the IC
and to any potential effects of the litigation on the public health in deciding whether to bring suit.

 

		11.4	In any action under
                                         Paragraphs 11.2 or 11.3 the expenses including costs, fees, attorney fees, and disbursements,
                                         shall be paid by the Licensee.
                                         The value of any recovery actually received by the Licensee
                                         through court judgment or settlement (less attorney’s fees, expenses,
                                         taxes and other deductions) shall be treated as Net
                                         Sales and subject to earned royalties.

 

		11.5	The IC shall cooperate fully with the Licensee
in connection with any action under Paragraphs 11.2 or 11.3. The IC agrees promptly to provide access to all
necessary documents and to render reasonable assistance in response to a request by the Licensee.

 

		12.	NEGATION
OF WARRANTIES AND INDEMNIFICATION

 

		12.1	The IC
offers no warranties other than those specified in Article 1.

 

		12.2	The IC
does not warrant the validity of the Licensed
Patent Rights and makes no representations whatsoever with regard to the scope of the Licensed
Patent Rights, or that the Licensed
Patent Rights may be exploited without infringing other patents or other intellectual property rights of third parties.

 

		12.3	THE IC
MAKES NO WARRANTIES, EXPRESS OR IMPLIED, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY SUBJECT MATTER
DEFINED BY THE CLAIMS OF THE LICENSED PATENT
RIGHTS OR TANGIBLE MATERIALS RELATED THERETO.

 

		12.4	The IC
does not represent that it shall commence legal actions against third parties infringing the Licensed
Patent Rights.

 

		12.5	The Licensee
shall indemnify and hold the IC,
its employees, students, fellows, agents, and consultants harmless from and against all liability, demands, damages, expenses,
and losses, including but not limited to death, personal injury, illness, or property damage in connection with or arising out
of a third party claim brought against the IC
arising from:

 

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		(a)	the use by or on behalf of the Licensee,
its sublicensees, directors, employees, or third parties of any Licensed
Patent Rights; or

 

		(b)	the design, manufacture, distribution, or use of any
Licensed Products, Licensed Processes
or materials by the Licensee, or
other products or processes developed by Licensee
in connection with or arising out of the Licensed
Patent Rights.

 

		12.6	The Licensee
agrees to maintain a liability insurance program consistent with sound business practice.

 

		13.	TERM,
TERMINATION, AND MODIFICATION OF RIGHTS

 

		13.1	This Agreement
is effective when signed by all parties, unless the provisions of Paragraph 14.16 are not fulfilled, and shall extend
to the expiration of the last to expire of the Licensed
Patent Rights unless sooner terminated as provided in this Article 13.

 

		13.2	In the event that the Licensee
is in default in the performance of any material obligations under this Agreement,
including but not limited to the obligations listed in Paragraph 13.5, IC
shall give written notice to the Licensee
and a ninety (90) day period to remedy the default. If the Licensee
fails to take substantive steps to remedy the default to the IC’s
satisfaction within such ninety (90) day period, the IC
may terminate this Agreement
by written notice and pursue outstanding royalties owed through procedures provided by the Federal Debt Collection Act.

 

		13.3	In the event that the Licensee
becomes insolvent, files a petition in bankruptcy, has such a petition filed against it, determines to file a petition
in bankruptcy, or receives notice of a third party's intention to file an involuntary petition in bankruptcy, the Licensee
shall immediately notify the IC in writing.

 

		13.4	The Licensee
shall have a unilateral right to terminate this Agreement
or any licenses in any country or territory by giving the IC sixty (60) days written notice to that effect.

 

		13.5	The IC shall specifically have the right to terminate
or modify, at its option, this Agreement,
if the IC determines that the Licensee:

 

		(a)	is not executing the Commercial
Development Plan submitted with its request for a license and the Licensee
cannot otherwise demonstrate to
the IC’s satisfaction
that the Licensee has taken, or can be expected to take within a reasonable
time, effective steps to achieve the Practical
Application of the Licensed Products
or the Licensed Processes;

 

		(b)	has not achieved the Benchmarks
as may be modified under Paragraph 9.2;

 

		(c)	has willfully made a false statement of, or willfully
omitted a material fact in the license application or in any report required by this Agreement;

 

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		(d)	has committed a material breach of a covenant or agreement
contained in this Agreement;

 

		(e)	is
not keeping the Licensed Products or
the Licensed Processes reasonably available to the public after commercial use commences;

 

		(f)	cannot reasonably satisfy unmet health and safety needs;
or

 

		(g)	cannot reasonably justify a failure to comply with the
domestic production requirement of Paragraph 5.2 unless waived.

 

		13.6	In making the determination referenced in Paragraph 13.5,
the IC shall take into account
the normal course of such commercial development programs conducted with sound and reasonable business practices and judgment
and the annual reports submitted by the Licensee
under Paragraph 9.2. Prior to invoking termination or modification of this Agreement
under Paragraph 13.5, the IC
shall give written notice to the Licensee
providing the Licensee
specific notice of, and a ninety (90) day opportunity to respond to, the IC’s
concerns as to the items referenced in 13.5(a)-13.5(g). If the Licensee
fails to alleviate the IC’s
concerns as to the items referenced in 13.5(a)-13.5(g) or fails to initiate corrective action to the IC’s
satisfaction, the IC may terminate this Agreement.

 

		13.7	When the public health and safety so require and after
written notice to the Licensee
providing the Licensee a sixty
(60) day opportunity to respond, the IC shall have the right to require the Licensee
to grant sublicenses to responsible applicants, on commercially reasonable terms, in any Licensed
Fields of Use under the Licensed
Patent Rights, unless the Licensee
can reasonably demonstrate that the granting of the sublicense would not materially increase the availability to the
public of the subject matter of the Licensed
Patent Rights. The IC shall not require the granting of a sublicense unless the responsible applicant has first
negotiated in good faith with the Licensee.

 

		13.8	The IC reserves the right according to 35 U.S.C.
§209(d)(3) to terminate or modify this Agreement
if it is determined that this action is necessary to meet the requirements for public use specified by federal regulations
issued after the date of the license and these requirements are not reasonably satisfied by the Licensee.

 

		13.9	Within thirty (30) days of receipt of written notice
of the IC’s unilateral decision
to modify or terminate this Agreement,
the Licensee may,
consistent with the provisions of 37 C.F.R. §404.11, appeal the decision by written submission to the designated
IC official or designee. The decision
of the designated IC official
or designee shall be the final agency decision. The Licensee
may thereafter exercise any and all administrative or judicial remedies that may be accessible.

 

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		13.10	Within ninety (90) days of expiration or termination
of this Agreement under this Article
13, a final report shall be submitted by the Licensee.
Any royalty payments, including those incurred but not yet paid (such as the full minimum annual royalty), and those related
to patent expenses, due to the IC shall become immediately due and payable upon termination or expiration. If terminated
under this Article 13, sublicensees may elect to convert their sublicenses to direct licenses with the IC pursuant to Paragraph
4.3. Unless
otherwise specifically provided for under this Agreement,
upon termination or expiration of this Agreement,
the Licensee shall return
all Licensed Products or other
materials included within the Licensed Patent
Rights to the IC or provide the IC with certification of the destruction thereof. The Licensee
may not be granted additional IC licenses if the final reporting requirement is not fulfilled.

 

		14.	GENERAL
PROVISIONS

 

		14.1	Neither party may waive or release any of its rights
or interests in this Agreement
except in writing. The failure of the Government
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 by the Government
or excuse a similar subsequent failure to perform any of these terms or conditions by the Licensee.

 

		14.2	This Agreement
constitutes the entire agreement between the parties relating to the subject matter of the Licensed
Patent Rights, the Licensed Products
and the Licensed Processes,
and all prior negotiations, representations, agreements, and understandings are merged into, extinguished by, and completely
expressed by this Agreement.

 

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

 

		14.4	If either party desires a modification to this Agreement,
the parties shall, upon reasonable notice of the proposed modification by the party desiring the change, confer in good
faith to determine the desirability of the modification. No modification shall be effective until a written amendment is signed
by the signatories to this Agreement
or their designees.

 

		14.5	The construction, validity, performance, and effect of
this Agreement shall be governed
by Federal law as applied by the Federal courts in the District of Columbia.

 

		14.6	All Agreement
notices required or permitted by this Agreement
shall be given by prepaid, first class, registered or certified mail or by an express/overnight delivery service provided
by a commercial carrier, properly addressed to the other party at the address designated on the following Signature Page, or to
another address as may be designated in writing by the other party. Agreement
notices shall be considered timely if the notices are received on or before the established deadline date or sent on
or before the deadline date as verifiable by U.S. Postal Service postmark or dated receipt from a commercial carrier. Parties
should request a legibly dated U.S. Postal Service postmark or obtain a dated receipt from a commercial carrier or the U.S. Postal
Service. Private metered postmarks shall not be acceptable as proof of timely mailing.

 

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		14.7	This Agreement
shall not be assigned or otherwise transferred (including any transfer by legal process or by operation of law, and
any transfer in bankruptcy or insolvency, or in any other compulsory procedure or order of court) except to the Licensee’s
Affiliate(s) without the prior written consent of the IC. The parties agree that the identity of the parties
is material to the formation of this Agreement
and that the obligations under this Agreement
are nondelegable.

 

		14.8	The Licensee
agrees in its use of any IC-supplied materials to comply with all applicable statutes, regulations, and guidelines,
including NIH and HHS
regulations and guidelines. The Licensee
agrees not to use the materials for research involving human subjects or clinical trials in the United States without
complying with 21 C.F.R. Part 50 and 45 C.F.R. Part 46. The Licensee
agrees not to use the materials for research involving human subjects or clinical trials outside of the United States
without notifying the IC, in writing, of the research or trials and complying with the applicable regulations of the appropriate
national control authorities. Written notification to the IC of research involving human subjects or clinical trials outside
of the United States shall be given no later than sixty (60) days prior to commencement of the research or trials.

 

		14.9	The Licensee
acknowledges that it is subject to and agrees to abide by the United States laws and regulations (including the Export
Administration Act of 1979 and Arms Export
Control Act) controlling the export of technical data, computer software, laboratory prototypes, biological material, and other
commodities. The transfer of these items may require a license from the appropriate agency of the U.S. Government
or written assurances by the Licensee
that it shall not export these items to certain foreign countries without prior approval of this agency. The IC
neither represents that a license is or is not required or that, if required, it shall be issued.

 

		14.10	The Licensee
agrees to mark the Licensed Products
or their packaging sold in the United States with all applicable U.S. patent numbers and similarly to indicate “Patent
Pending” status. All the Licensed Products
manufactured in, shipped to, or sold in other countries shall be marked in a manner to preserve the IC’s
patent rights in those countries.

 

		14.11	By entering into
this Agreement, the IC does not directly or indirectly
endorse any product or service provided, or to be provided, by the Licensee
whether directly or indirectly related to this Agreement.
The Licensee shall not state or imply that this
Agreement is an endorsement by the Government,
the IC, any other Government organizational
unit, or any Government employee. Additionally, the Licensee
shall not use the names of the IC, the FDA or
the HHS or the Government or their employees in
any advertising, promotional, or sales literature without the prior written approval of the IC.

 

		14.12	The parties agree to attempt to settle amicably any controversy
or claim arising under this Agreement
or a breach of this Agreement, except
for appeals of modifications or termination decisions provided for in Article 13. The Licensee
agrees first to appeal any unsettled claims or controversies to the designated IC official, or designee, whose
decision shall be considered the final IC decision. Thereafter, the Licensee
may exercise any administrative or judicial remedies that may be available.

 

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		14.13	Nothing relating to the grant of a license, nor the grant
itself, shall be construed to confer upon any person any immunity from or defenses under the antitrust laws or from a charge of
patent misuse, and the acquisition and use of rights pursuant to 37 C.F.R. Part 404 shall not be immunized from the operation
of state or Federal law by reason of the source of the grant.

 

		14.14	Any formal recordation of this Agreement
required by the laws of any Licensed
Territory as a prerequisite to enforceability of the Agreement
in the courts of any foreign jurisdiction or for other reasons shall be carried out by the Licensee
at its expense, and appropriately verified proof of recordation shall be promptly furnished to the IC.

 

		14.15	Paragraphs 4.3, 8.1, 9.5-9.8, 12.1-12.5, 13.9, 13.10,
14.12 and 14.15 of this Agreement
shall survive termination of this Agreement.

 

		14.16	The terms and conditions of this Agreement
shall, at the IC’s
sole option, be considered by the IC
to be withdrawn from the Licensee’s
consideration and the terms and conditions of this Agreement,
and the Agreement itself
to be null and void, unless this Agreement
is executed by the Licensee
and a fully executed original is received by the IC
within sixty (60) days from the date of the IC’s
signature found at the Signature Page.

 

SIGNATURES
BEGIN ON NEXT PAGE

 

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NIH PATENT LICENSE
AGREEMENT – EXCLUSIVE

 

SIGNATURE
PAGE

 

	For the NIAAA:	 	 
	 	 	 
	/s/ George F. Koob	7-13-17	 
	Name: George F. Koob, Ph.D.	Date	 
	Title: Director	 	 
	The National Institute on Alcohol Abuse and Alcoholism	 	 
	National Institutes of Health	 	 

 

	For the NIDA:	 	 
	 	 	 
	/s/ Michelle K. Leff-S	 	 
	Name: Michelle K. Leff, MD, MBA	Date	 
	Title: Technology Development Coordinator	 	 
	The National Institute on Drug Abuse	 	 
	National Institutes of Health	 	 

 

Mailing
Address or E-mail Address for Agreement
notices and reports:

 

License
Compliance and Administration

Monitoring
 & Enforcement

Office
of Technology Transfer

National
Institutes of Health

6011
Executive Boulevard, Suite 325

Rockville,
Maryland 20852-3804 U.S.A.

 

E-mail:
LicenseNotices_Reports@mail.nih.gov

 

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For
the Licensee (Upon, information
and belief, the undersigned expressly certifies or affirms that the contents of any statements of the Licensee
made or referred to in this document are truthful and accurate.):

 

	by:	 		 
	 	 	 	 
	/s/ Morris
    Laster	 	7/19/17	 
	Signature
    of Authorized Official	 	Date	 
	 	 	 	 
	Morris
    Laster, MD	 	 	 
	Printed
    Name	 	 	 
	 	 	 	 
	CEO	 	 	 
	Title	 	 	 

 

	 	I.	Official
    and Mailing Address for Agreement notices:	 
	 	 	 	 
	 	 	Morris Laster, MD	 
	 	 	Name	 
	 	 	 	 
	 	 	CEO	 
	 	 	Title	 
	 	 	 	 
	 	 	Mailing Address	 
	 	 	 	 
	 	 	11 Reuven Shari St	 
	 	 	 	 
	 	 	Jerusalem, Israel 9724611	 

 

	 	 	Email Address:	morris.laster@gmail.com	 
	 	 	 	 	 
	 	 	Phone:	+972-2-5866740	 
	 	 	 	 	 
	 	 	Fax:	+972-2-5879529	 

 

	 	II.	Official
    and Mailing Address for Financial notices (the Licensee’s contact person for royalty payments)
	 	 	 	 
	 	 	Morris Laster, MD	 
	 	 	Name	 
	 	 	 	 
	 	 	CEO	 
	 	 	Title	 

 

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	 	 	Mailing Address:	 
	 	 	 	 
	 	 	11 Reuven Shari St	 
	 	 	 	 
	 	 	Jerusalem, Israel 9724611	 

 

	 	 	Email Address:	morris.laster@gmail.com	 
	 	 	 	 	 
	 	 	Phone:	+972-2-5866740	 
	 	 	 	 	 
	 	 	Fax:	+972-2-5879529	 

 

Any
false or misleading statements made, presented, or submitted to the Government,
including any relevant omissions, under this Agreement
and during the course of negotiation of this Agreement
are subject to all applicable civil and criminal statutes including Federal statutes 31 U.S.C. §§3801-3812
(civil liability) and 18 U.S.C. §1001 (criminal liability including fine(s) or imprisonment).

 

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APPENDIX
A – PATENT(S) OR PATENT APPLICATION(S)

 

Patent(s) or Patent Application(s):

 

E-140-2014/0
Patent Family

Entitled,
 “Cannabinoid Receptor Mediating Compounds”

Inventors:
George Kunos (NIAAA), Malliga R. Iyer (NIAAA), Resat Cinar (NIAAA), and Kenner C. Rice (NIDA), including PCT Application No. PCT/US2015/029946,
filed on May 08, 2015, claiming priority to US Provisional Application No. 61/991,333 filed on May 09, 2014, and corresponding
US, AU, CA, EP, CN, IN and JP filings

 

E-282-2012/0
Patent Family

Entitled,
 “Cannabinoid Receptor Mediating Compounds”

Inventors:
George Kunos (NIAAA), Malliga R. Iyer (NIAAA), Resat Cinar (NIAAA), and Kenner C. Rice (NIDA) including PCT Application No.
PCT/US2013/069686, filed on November 12, 2013, claiming priority to U.S. Provisional Patent Application No. 61/725,949 filed on
November 13, 2012, and corresponding US, CA, EP, CN, IN and JP filing

 

E-282-2012/1
Patent Family

Entitled,
 “Cannabinoid Receptor Mediating Compounds”

Inventors:
George Kunos (NIAAA), Malliga R. Iyer (NIAAA), Resat Cinar (NIAAA), and Kenner C. Rice (NIDA) including PCT Application No. PCT/US2016/035291,
filed on June 01, 2016, claiming priority to US Provisional Application No. 62/171, 179 filed on June 04, 2015

 

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APPENDIX
B – LICENSED FIELDS OF USE AND TERRITORY

 

		I.	Licensed Fields of Use:

 

Commercial
development of the CB1/iNOS series of compounds as a therapeutic to treat systemic sclerosis and scleroderma and other skin fibrotic
diseases in humans, as claimed in the Licensed
Patent Rights. Hermansky-Pudlak syndrome (HPS) is expressly excluded.

 

		II.	Licensed Territory:
                                         Worldwide.

 

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APPENDIX
C – ROYALTIES

 

Royalties:

 

		I.	The
                                                                                                                    Licensee agrees to pay to the IC a noncreditable, nonrefundable license
                                                                                                                    issue royalty in the amount of [                                            ]
                                                                                                                    within sixty (60) days from the effective date of this Agreement.

 

		II.	The Licensee agrees to pay to the IC a nonrefundable minimum annual royalty
                                                                                             in the amount of [                                                          ]
                                                                                             as follows:

 

The
first minimum annual royalty is due and payable on January 1, 2019; and subsequent minimum annual royalty payments are due and
payable on January 1 of each calendar year and shall be credited against any earned royalties due for sales made in that year.

 

		III.	The
                                         Licensee agrees to pay the IC earned royalties of [                         ]
                                         on Net Sales by the Licensee and its sublicensees.

 

		IV.	The Licensee
agrees to pay the IC Benchmark royalties within sixty (60) days of achieving each Benchmark:

 

		(a)	[                                            ]
                                         Initiation of
                                         first Phase I clinical trial or foreign equivalent.

 

		(b)	[                                                       ]
                                         Initiation of
                                         first Phase II clinical trial or foreign
                                         equivalent.

 

		(c)	[                                                                   ]
                                         Initiation of
                                         first Phase III clinical trial or foreign equivalent.

 

		(d)	[                                                                              ]
                                         Upon initial filing of the first New Drug Application
                                         or foreign equivalent for each Licensed Products.

 

		(e)	Upon
receipt of first Market Approval or foreign equivalent for each Licensed Products in the following jurisdictions/countries:

 

		(i)	[                                                           ]
                                         in Europe;

 

		(ii)	[                                                   ]
in the United States;

 

		(iii)	[                                                           ]
in Canada;

 

		(iv)	[                                                           ]
in China;

 

		(v)	[                                                   ]
                                         in India; and

 

		(vi)	[                                                   ]
                                         in Japan.

 

		V.	The Licensee agrees to pay the IC additional
sublicensing royalties of [                                      ]
on the fair market value of any consideration actually received for granting each sublicense, which is payable to Licensee
under any such sublicense within sixty (60) days of the execution of each sublicense.

 

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APPENDIX
D – BENCHMARKS AND PERFORMANCE

 

The
Licensee agrees to the following Benchmarks for its performance under this Agreement and, within thirty (30)
days of achieving a Benchmark, shall notify the IC that the Benchmark has been achieved.

 

		I.	Establish
                                         two (2) murine models for systemic sclerosis within [                      ]
                                         of the effective date
                                         of this Agreement.

 

		II.	Complete
                                         in vivo systemic sclerosis efficacy tests within [                                 ]
                                         of the effective date of this Agreement.

 

		III.	Hold
                                         Pre-IND
                                         meeting
                                         with
                                         the FDA
                                         within [                       ]
                                         of the effective date of this Agreement.

 

		IV.	Complete
                                         GMP manufacturing within [                                 ]
                                         of the effective date of this Agreement.
                                         Complete IND enabling preclinical studies, and file an IND within three and one- half
                                         (3.5) years of the effective date of this Agreement.

 

		V.	Enroll
                                         first patient in Phase 1 clinical trial within [                ]
                                         of the effective date of this
                                         Agreement.

 

		VI.	Enroll
                                         first patient in Phase 2 clinical trial within [                ]
                                         of the effective date of this
                                         Agreement.

 

		VII.	Enroll
                                         first patient in Phase 3 clinical trial within [                  ]
                                         of the effective date of this
                                         Agreement.

 

		VIII.	File
                                         a NDA or foreign equivalent within [                 ]
                                         of the effective date of this Agreement.

 

		IX.	Launch
                                         of first commercial product within[                      ]
                                         of
                                         the effective date of this Agreement.

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APPENDIX
E – COMMERCIAL DEVELOPMENT PLAN

 

Systemic sclerosis (SSc) is defined
as an autoimmune rheumatic disease affecting the skin and other organs of the body. The main finding in systemic sclerosis is thickening
and tightening of the skin and inflammation and scarring of many body parts, leading to problems in the lungs, kidneys, heart,
intestinal system and other areas. It is an extremely debilitating disease with the highest mortality rate of any autoimmune rheumatic
disease that affects about 100,000 patients in the US alone. To date, there are no drugs approved to treat SSc. Current treatment
is based on attempting to manage the disease with a variety of treatments such as anti-inflammatories, immunosuppressants or drugs
that address the vascular components of the disease. The unmet medical need has been exemplified by FDA's Breakthrough Therapy
Designation in 2015 for Actemra based on a Phase 2 study that only showed an improving trend in skin fibrosis! There currently
are no options for treating the underlying fibrotic changes which represents the core pathophysiology.

 

In fibrotic diseases,
including SSc, there is published evidence for the pathogenic role of increased activity of inducible nitric oxide synthase (iNOS),
an enzyme responsible for the generation of reactive nitrogen species. There is also evidence for the pro-fibrotic function of
the endocannabinoid/CB1 receptor (CB1R) system. However, iNOS inhibitors used in preclinical studies lack oral bioavailability,
whereas more recently developed, orally bioavailable iNOS inhibitors had disappointingly low therapeutic efficacy in clinical
trials involving inflammatory diseases. While CB1R inhibitors have also demonstrated antifibrotic efficacy, the therapeutic
potential of globally acting CB1R inhibitors such as Rimonabant has been thwarted by CNS side effects. Prof. George
Kunos and NIAAA Laboratory of Physiologic Studies researchers have recently developed and patented a series of peripherally restricted
hybrid inhibitors of CB1R and iNOS. These compounds have several features for optimal therapeutic efficacy and safety.
The hybrid compound serves as a pro-drug and a carrier for the iNOS inhibitory moiety, facilitating its delivery to target organs
such as skin, kidney, lung, and liver, resulting in high target exposure. Additionally, the compound demonstrated peripheral selectivity
suggesting that it will not cause the neuropsychiatric side effects observed for Rimonabant. In preclinical in
vitro and in
vivo models,
a lead compound known as MRI-1867 demonstrated inhibition of CB1R and iNOS pathways in receptor binding and cell assays
as well as efficacy in animal models of liver and lung fibrosis.

 

Based on the scientific evidence implicating both the
CB1R and iNOS pathways in the pathogenesis of SSc, Licensee has decided to develop MRI-1867 as a first in class
treatment for SSc specifically targeting the fibrotic pathology of the disease. Were such a treatment to be found to be safe and
efficacious for SSc it would be life changing for those suffering from the disease and the orphan indication status can help provide
for commercial viability.

 

Product Development Plan

 

The
development plan will begin with a CRADA (CRADA01638) to be performed with Prof George Kunos at the NIAAA. Licensee will
build upon the hypothesis that the EC/CB1R system and iNOS are both pro-fibrogenic, and combined inhibition of these
targets by a single compound would improve therapeutic outcome in scleroderma.
Licensee plan to test the novel dual-target
compound MRI-1867 in two different murine models of scleroderma [                                                                                                                                    ]
Using these two experimental
models will allow Licensee to establish the
therapeutic potential of Licensee’s dual-target compounds.

 

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Specific
Aim 1: Test the target-specificity of hybrid peripheral CB1R/iNOS inhibitors by
analyzing their anti-fibrotic efficacy in mice with genetic deletion of CB1R or iNOS, using the subcutaneous bleomycin-induced
skin fibrosis model. This approach would help Licensee to
evaluate the relative contribution of the two targets to the therapeutic efficacy of the hybrid inhibitor.

 

Approaches
for Aim 1:

 

		1.1	Licensee
                                         will quantitatively analyze skin fibrosis in [                                                                                                        ]
                                         mice treated with vehicle, rimonabant, the iNOS inhibitor 1400W or Licensee’s
                                         lead dual CB1R/iNOS inhibitor MRI-1867.
                                         Licensee will
                                         also assess the presence of fibrosis and its modulation by treatment or genotype in organs
                                         potentially affected by SSc, including lung, kidneys and heart.

		1.2.	Expression
                                         and activity of CB1R and iNOS will be assessed in the affected tissues by
                                         measuring transcript, protein and functional levels weekly from week 1 to 6, in view
                                         of the progressive nature of the disease.

		1.3.	Two
                                         different treatment paradigms will be used to assess prevention or regression of fibrosis.
                                         For prevention, treatment will start immediately after implanting the [                  ]
                                         minipump and continue for 4 weeks. For the regression paradigm, treatments will start
                                         2 weeks after bleomycin induction and continued for an additional 2-4 weeks.

		1.4.	Skin
abnormalities and fibrosis will be assessed histologically (H&E and Masson’s trichrome), biochemically (hydroxyproline
content) and by measuring profibrotic gene expression (TGFβ, αSMA, fibronectin, collagen, TIMP1).

		1.5.	As
lung fibrosis is also manifested in this model, it will be assessed by the above techniques.

 

Specific
Aim 2: To investigate the pathogenic role of CB1R and iNOS in [                  ]
and test the therapeutic efficacy of dual CB1R/iNOS inhibition.

 

Approaches
for Aim 2: technical tools and experimental design will be the same as for Aim
1.

 

Specific
Aim 3: Screen and optimize additional CB1R/iNOS dual-target inhibitors as back-up
compounds and lead optimization in animal models of scleroderma.

 

Approaches
for Aim 3: Scleroderma results in the failure of multiple organs including the liver and
kidney. In view of the essential role of these organs in pharmacokinetics and drug metabolism, their pathological changes may alter
the PK properties of therapeutic compounds. In order to optimize the druggable properties of dual-target compounds, their PK properties
and metabolism need to be established for lead optimization.

 

3.1.
Measuring tissue distribution of candidate compounds (plasma, skin, lung, kidney, heart, brain, liver) by LC-MS/MS in two animal
models and in healthy control mice.

 
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These aims will help to
define the mechanism of action and establish the CNS safety profile of novel, dual-target peripheral CB1R/iNOS inhibitors.

 

Specific
Aim 4: To assess long-term efficacy and potential toxicity of the lead compound by conducting a chronic (6 months) treatment
study in the two models selected. Brain levels of drug as well as organ toxicity will be assessed by histology and functional assays.

 

The CRADA agreement time period
is expected to last 24 months. Assuming the successful completion of the research aims, Licensee
then intends to enter a full pre clinical and clinical development program.

 

A project manager will then be hired and expert consultants
in the main disciplines of drug development chemistry, manufacturing, and controls (CMC), nonclinical, clinical, and regulatory
will be retained by Licensee
for the development of MRI-1867.

 

Licensee
will contract with a current Good Manufacturing Practice (cGMP) capable contract
manufacturing organizations (CMOs) to manufacture the MRI-1867 drug substance (DS) and drug product (DP). Following process development
and scale up, DS analytical method development and qualification, and reference standard characterization, an engineering run of
DS will be manufactured. This will be followed by the initial cGMP manufacture of DS. Both the engineering run and cGMP batches
will be release tested and put on stability. The engineering run batch will be sufficiently comparable to the cGMP batch so as
to allow the former to be used for the investigational new drug application- (IND) enabling nonclinical studies. It is anticipated
that this process will take approximately 8 months (i.e., to the release of the 1-month stability data for cGMP DS) and cost about
$1M.

 

The DP to be used in clinical trials will be an oral
dosage form. A CMO will be contracted to perform formulation development and DP analytical method development and qualification.
Following selection of the oral formulation that will be used for clinical trials and a trial run of manufacturing (i.e., engineering
run), cGMP batches (varying strengths) will be manufactured. Both the engineering and cGMP batches will be release tested and put
on stability. This process will begin shortly after the start of the DS work (essentially concurrently) and will take approximately
9 months (to the release of the 1-month stability data for cGMP DP) and cost approximately $250K.

 

In parallel with the above activities, an intravenous
(IV) formulation will be developed and manufactured to allow for the determination of the absolute bioavailability of MRI-1867
during the initial Phase 1 trial. Additionally, metabolites will be synthesized to serve as analytical reference standards and
if warranted by the data for toxicological qualification. Radiolabeled MRI-1867 will be synthesized for use in nonclinical mass
balance and tissue distribution studies, as well as clinical CB1R binding and mass balance studies.

 

C.
Pre-clinical Development

 

Assay
Development: Licensee will contract with a Contract Research Organization (CRO) to develop and validate bioanalytical
methods for rat, dog, and human plasma. Assay development will be concurrent with DS and DP development and manufacture
and cost will be approximately [        ].

 

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Pharmacology:
In addition to the nonclinical primary pharmacodynamic (PD) studies in scleroderma models that will be conducted under the CRADA,
VS will contract with qualified CRO(s) to perform standard Good Laboratory Practice (GLP) safety pharmacology studies. The studies
will include in vitro hERG, oral rat central nervous system, oral rat respiratory system, and oral dog cardiovascular system,
as well as additional studies if warranted by the data. All of the GLP safety pharmacology studies will utilize DS from either
the engineering or cGMP batches.

 

Pharmacokinetics:
Licensee will contract with qualified CRO(s) to perform various in vitro pharmacokinetic
(PK) studies, including metabolic stability studies, drug-drug interaction studies, protein binding studies, and permeation studies.
These studies will be initiated early on and will use DS from the scale up efforts. The data package for MRI-1867 includes results
that fit into these categories of studies. Depending on the availability of the corresponding study reports (i.e., for Licensee
to use in an IND submission), the study designs, and the comparability of the test material used,
Licensee may be able to use some of the NIH results in lieu of conducting such
studies. Once the engineering batch DS is available, Licensee will contract with
qualified CRO(s) to perform oral rat single dose PK, oral dog single dose PK, and absolute bioavailability. Radiolabeled MRI-1867
will be used for mass balance and tissue distribution studies. Additional nonclinical absorption, distribution, metabolism, and
excretion (ADME) studies will be contracted as warranted by the data.

 

Toxicology:
In preparation for the initial IND filing, Licensee will
contract with qualified CRO(s) to perform oral rat and dog rising single dose + 7-day repeated-dose range-finding toxicity studies
with toxicokinetics and oral rat and dog 28-day repeated-dose toxicity studies with toxicokinetics. Additionally, Licensee
will contract out the performance of a standard battery of GLP genotoxicity studies, including
in vitro bacterial reverse mutation test, in vitro mouse lymphoma thymidine kinase assay, and in vivo rat micronucleus test. Also,
to support the single IV dose of MRI-1867 in the initial Phase I trial to determine absolute bioavailability, Licensee
will contract out the performance of an in vitro hemolysis assay and an IV single species single
dose local tolerance study. To support subsequent clinical trials and eventual marketing, Licensee will
contract out the performance of oral rat 3-month and 6-month repeated-dose toxicity studies, oral dog 3-month and 9-month repeated-dose
toxicity studies, carcinogenicity studies, and reproductive and developmental toxicity studies.

 

Overall,
the timeline and cost to complete the IND-enabling nonclinical studies is estimated at approximately[            ] and [        ].

 

Clinical
Development

 

Licensee
will contract out clinical trial related tasks to qualified CRO(s). The initial trial (i.e.,
the protocol to be included in the original IND filing) is anticipated to be a Phase 1 safety, tolerability, and PK study in healthy
volunteers. The study will include a single IV and oral dose to determine absolute bioavailability, followed by 28-days of oral
dosing. During the latter part of the conduct of this trial, Licensee plans to
contract out a Phase 1 clinical mass balance study (single oral dose of radiolabeled drug). This will allow for an early determination
of relevant PK metabolites and parameters to follow in subsequent trials. Additionally, Licensee plans
to collaborate with NIH to perform a Phase 1 study of MRI-1867 binding to CB1R in the brain (via positron emission tomography
scanning).

 
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Following
the completion of the Phase 1 safety, tolerability, and PK study in healthy volunteers, Licenseeplans to
move to a Phase 1 safety, tolerance, PK, and PD study in patients with systemic sclerosis. This trial will include
[            ]
of oral dosing. Pending no safety concerns, Licensee plans
to move to a Phase 2 safety, PK, and proof of concept trial in systemic sclerosis patients that is anticipated to include
[              ]
of oral dosing. This would be followed by a Phase 3 pivotal trial of safety, PK, and efficacy in systemic sclerosis
patients, which is tentatively expected to include [         ] of
oral dosing under double blinded conditions, followed by [         ]
of dosing under open label
conditions. Additional trials will be conducted as warranted by the data. The timeline and cost of the clinical program is
estimated at [               ]
and at a total cost of [        ] [        ]

 

Regulatory
Submission

 

As
soon as Licensee completes
the CRADA period of examination, Licensee plans to file a pre-IND meeting request
with FDA to confirm that the planned CMC and nonclinical tasks will support the initiation of the proposed Phase 1 clinical trial.
In this way, course corrections in the development plan can be made early on, expediting development and avoiding waste of resources.

 

Upon
completion of the nonclinical primary PD studies in scleroderma models that will be conducted under the CRADA, Licensee
plans to submit an orphan drug designation request for MRI-1867 for the treatment of systemic
sclerosis.

 

Licensee anticipates
to file the original IND for MRI-1867 for the treatment of systemic sclerosis [                ]
following the licensing event. This timeline will be adjusted as necessary based on FDA’s feedback on the development plan
during the pre-IND meeting, as well as based on the CMO and CRO availability and proposed timelines. Licensee plans
to file for Fast Track Designation shortly after the IND filing (as an IND amendment).

 

Once
the Phase 2 proof of concept trial is completed, and assuming that proof of concept is demonstrated, Licensee
plans to file a request for breakthrough therapy designation. Shortly thereafter, Licensee
plans to file for an end of Phase 2 (EOP2) meeting to confirm the pivotal trial(s) and other
tasks needed to support NDA filing. Licensee plans to file for a pre-NDA meeting
while the pivotal Phase 3 trial is ongoing. A priority review is anticipated. Licensee anticipates
that following positive pivotal clinical studies, MRI-1867 will be out-licensed to a global pharmaceutical partner for marketing
and sales of the drug in return for upfront payments, milestones and royalties.

 

Licensee
anticipates that following positive pivotal clinical studies, MRI-1867 will be out-licensed
to a global pharmaceutical partner for marketing and sales of the drug in return for upfront payments, milestones and royalties.
It is Licensee’s belief that such a strategic partner will be capable of
marketing the compound in the licensed territories. If a strategic partner is not able to market in the patented territories,
Licensee will
seek additional partners to maximize sales in the licensed territories.

 

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Marketing Plan

 

During the process of developing
MRI-1867 Licensee
will contract with a US based CMO who will manufacture the clinical and subsequent commercial batches. It is anticipated that a
future strategic partner will continue with Licensee’s
selection of CMO or incorporate the manufacture of MRI-1867 in one of its US based manufacturing plants as required in the license
agreement.

 

Licensee
will work with its global pharmaceutical partner to ensure the promotion, marketing and sales of MRI-1867. Licensee
will make all reasonable efforts to ensure that its strategic partner is maximizing the potential inherent in the product.

 

Licensee
anticipates that a future out-license of the MRI-1867 technology to a global pharmaceutical partner will comprise upfront payments,
milestones and royalties as is standard in the industry.

 

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APPENDIX
F – EXAMPLE ROYALTY REPORT

 

Required
royalty report information includes:

 

		•	License reference number (L-XXX-200X/0)

		•	Reporting period

		•	Catalog number and units sold of each Licensed Product
(domestic and foreign)

		•	Gross Sales per catalog number per country

		•	Total Gross Sales

		•	Itemized deductions from Gross Sales

		•	Total Net Sales

		•	Earned Royalty Rate and associated calculations

		•	Gross Earned Royalty

		•	Adjustments for Minimum Annual Royalty (MAR) and other
creditable payments made

		•	Net Earned Royalty due

 

Example

	Catalog Number	 	Product Name	 	Country	 	Units Sold	 	 	Gross Sales 

(US$)	 
	1	 	A	 	US	 	250	 	 	 	62,500	 
	1	 	A	 	UK	 	32	 	 	 	16,500	 
	1	 	A	 	France	 	25	 	 	 	15,625	 
	2	 	B	 	US	 	0	 	 	 	0	 
	3	 	C	 	US	 	57	 	 	 	57,125	 
	4	 	D	 	US	 	12	 	 	 	1,500	 

	 	Total Gross Sales	 	 	153,250	 
	 	Less Deductions:	 	 	 	 
	 	Freight	 	 	3,000	 
	 	Returns	 	 	7,000	 
	 	Total Net Sales	 	 	143,250	 
	 	 	 	 	 	 
	 	Royalty Rate	 	 	8	%
	 	Royalty Due	 	 	11,460	 
	 	Less Creditable Payments	 	 	10,000	 
	 	Net Royalty Due	 	 	1,460	 

 

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APPENDIX
G – ROYALTY PAYMENT OPTIONS

 

The License Number MUST appear on payments, reports
and correspondence.

 

Credit and Debit Card Payments

 

Credit and debit card payments can be submitted for
amounts up to $29,999. Submit your payment through the U.S. Treasury web site located at: https://www.pay.gov/public/form/start/28680443.

 

Automated Clearing House (ACH) for payments through
U.S. banks only

 

The
IC encourages its licensees to
submit electronic funds transfer payments through the Automated Clearing House (ACH). Submit your ACH payment through the U.S.
Treasury web site located at: https://www.pay.gov/public/form/start/28680443. Please note that the IC “only” accepts
ACH payments through this U.S. Treasury web site.

 

Electronic
Funds Wire Transfers

 

The
following account information is provided for wire payments. In order to process payment via Electronic Funds Wire Transfer sender
MUST supply the following information within the transmission:

 

Drawn
on a U.S. bank account via FEDWIRE
should be sent directly to the following account:

 

	Beneficiary Account:	Federal Reserve Bank of New York or TREAS NYC
	Bank:	Federal Reserve Bank of New York
	ABA#	021030004
	Account Number:	75080031
	Bank Address:	33 Liberty Street, New York, NY 10045
	Payment Details:	License Number (L-XXX-XXXX)
	 	Name of the Licensee

 

Drawn
on a foreign bank account should
be sent directly to the following account. Payment must be sent in U.S.
Dollars (USD) using the following instructions:

 

	Beneficiary Account:	Federal Reserve Bank of New York/ITS or FRBNY/ITS
	Bank:	Citibank N.A. (New York)
	SWIFT Code:	CITIUS33
	Account Number:	36838868
	Bank Address:	388 Greenwich Street, New York, NY 10013
	Payment Details (Line 70):	NIH 75080031
	 	License Number (L-XXX-XXXX)
	 	Name of the Licensee
	Detail of Charges (line 71a):	Charge Our

 

Checks

 

All
checks should be made payable to “NIH Patent Licensing” 

 

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Checks
drawn on a U.S. bank account
and sent by US Postal Service should be sent directly to the following address:

 

National
Institutes of Health

P.O.
Box 979071

St.
Louis, MO 63197-9000

 

Checks
drawn on a U.S. bank account and sent by overnight
or courier should be sent to the following address:

 

US
Bank

Government
Lockbox SL-MO-C2GL

1005
Convention Plaza

St.
Louis, MO 63101

Phone:
314-418-4087

 

Checks
drawn on a foreign bank account
should be sent directly to the following address:

 

National
Institutes of Health

Office
of Technology Transfer

License
Compliance and Administration

Royalty
Administration

6011
Executive Boulevard

Suite
325, MSC 7660

Rockville,
Maryland 20852

 

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

 

RESEARCH
AND LICENSE AGREEMENT

 

This
Research and License Agreement (“Agreement”) is made in Jerusalem this 5 day of March 2019 (the “Effective
Date”), by and between:

 

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

 

SCOPUS
BIOPHARMA INC., 420 Lexington Avenue, Suite 300, New York NY,10170 (the “Company”), of the second part;

 

(each
of Yissum and the Company, a “Party”, and collectively the “Parties”)

 

		WHEREAS:	in the course of research conducted by Dr. Alexander
                                                                                                                                          Binshtok (the “Researcher”), at the University (as defined in Section 1 below), the Researcher developed
                                                                                                                                          CBD-mediated activation of nociceptive TRPV1 and TRPV2 channels for painless pain-selective anesthesia technology, as more
                                                                                                                                          fully described in the patent application listed in Appendix A (collectively, the “Existing
                                                                                                                                          Patents”); and

 

		WHEREAS:	in accordance with
the terms of a Memorandum of Understanding between the Company and Yissum dated July 28, 2018 (“MOU”), the
Company is funding research which the Researcher is performing for the benefit of the Company;

 

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

 

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

 

		WHEREAS:	the Company wishes
to obtain a license from Yissum for the development and commercialization, in the Field, of the inventions covered by the Existing
Patents, as well as the results of any Research; and

 

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

 

     

     

    

 

NOW
THEREFORE THE PARTIES DO HEREBY AGREE AS FOLLOWS:

 

		1.	Interpretation
and Definitions

 

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

 

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

 

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

 

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

 

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

 

		1.4.2.	“Affiliate” shall
                                                                                  mean any person, organization or other legal entity which controls, or is controlled by, or is under common control with, the
                                                                                  Company. “Control” shall mean the holding of more than 50% of (i) the equity, or (ii) the voting
                                                                                  rights, or (iii) the right to elect or appoint a majority of directors; provided,
                                                                                  however, a Subsidiary of the Company shall not be deemed an Affiliate in connection with any Sublicense but instead shall
                                                                                  be deemed the Company hereunder.

 

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

 

		1.4.4.	“Development
Plan” shall mean the written plan and timetable, a copy of which is attached to this Agreement as Appendix B,
for the development and the commercialization of Products, including specific development milestones, prepared by the Company
and approved by Yissum pursuant to Section 5.1 below.

 

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

 

    	 	2	 

     

    

 

		1.4.6.	“Field”
shall mean Pain Treatment in Humans.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	3	 

     

    

 

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

 

		1.4.16.	“Net
Sales” shall mean:

 

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

 

		(b)	the
fair market value of non-monetary consideration received in connection with such sales;

 

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

 

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

 

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

 

    	 	4	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	5	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

		1.4.32.	“Territory”
shall mean worldwide.

 

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

 

    	 	6	 

     

    

 

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

 

		2.	The Research

 

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

 

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

 

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

 

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

 

    	 	7	 

     

    

 

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

 

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

 

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

 

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

 

    	 	8	 

     

    

 

		3.	The
License

 

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

 

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

 

		4.	Term
of the License

 

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

 

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

 

    	 	9	 

     

    

 

		5.	Development
and Commercialization

 

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

 

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

 

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

 

    	 	10	 

     

    

 

		5.3.	[RESERVED]

 

		5.4.	[RESERVED]

 

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

 

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

 

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

 

		6.	Sublicenses

 

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

 

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

 

    	 	11	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	12	 

     

    

 

		7.	License Consideration

 

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

 

		7.1.	Royalties:

 

		7.1.1.	Royalties
                                         at a rate of [            ]
                                         of Net Sales of Products by the Company or its Affiliates (the “Company Royalties”),
                                         subject to the Reductions. ;.

 

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

 

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

 

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

 

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

 

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

 

    	 	13	 

     

    

 

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

 

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

 

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

 

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

 

		7.2.	Milestone Payments:

 

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

 

    	 	14	 

     

    

 

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

  

		7.3.	Sublicense fees:

 

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

 

		8.	Reports and
Accounting

 

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

 

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

 

    	 	15	 

     

    

 

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

 

Name
of Bank: Hapoalim 

Bank
Key: 12

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

Branch:
Jerusalem Business Branch - 436 

Bank
account Number: 12-436-142-155001 

Swift
Code: POALILIT

 

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

 

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

 

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

 

    	 	16	 

     

    

 

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

 

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

 

		9.	Ownership

 

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

 

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

 

		9.3.	[RESERVED]

 

		10.	Patents

 

		10.1.	Within 30 days
of the Effective Date, the Company shall reimburse Yissum for all previous documented expenses and costs actually incurred by
Yissum and relating to the registration and maintenance of the Licensed Patents listed in Appendix A.

 

    	 	17	 

     

    

 

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

 

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

 

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

 

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

 

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

 

    	 	18	 

     

    

 

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

 

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

 

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

 

    	 	19	 

     

    

 

		11.	Patent Rights
Protection

 

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

 

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

 

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

 

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

 

    	 	20	 

     

    

 

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

 

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

 

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

 

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

 

If
Yissum is not required by law to be joined as a co-plaintiff, Yissum, to the extent permitted by law, and at its own cost, may
elect to join the action as a co-plaintiff at its own initiative and shall jointly control the action with the Company. Irrespective
of whether Yissum joins any such action as described above it shall provide reasonable cooperation to the Company. The Company
shall reimburse Yissum for any reasonable costs it incurs as part of an action brought pursuant to this Section where Yissum has
not elected to join the action as a co-plaintiff at its own initiative.

 

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

 

    	 	21	 

     

    

 

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

 

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

 

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

 

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

 

		12.	Confidentiality

 

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

 

    	 	22	 

     

    

 

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

 

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

 

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

 

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

 

    	 	23	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	24	 

     

    

 

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

 

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

 

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

 

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

 

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

 

		13.	Publications

 

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

 

		13.2.	The
Company undertakes to reply to any such request for publication by Yissum within 30 days of its receipt of a request in connection
with the publication of articles in scientific journals, and within 15 days of its receipt of a request in connection with article
abstracts. The Company may only decline such a request upon reasonable grounds, which shall be fully detailed in writing, requiring
the postponement of such publication because it contains patentable subject matter for which patent protection should be sought,
the removal of any Company Confidential Information other than the publication of Research Results. [YISSUM NOTE: THS DOES MAKE
SENSE. IF ANY UNDERLYING INFRMATION IS CONFIDENTIAL, THE COMPANY MAY REMOVE IT. BUT WE CANNOT LIMIT THE RESEARCER’S RIGHT
TO PUBLISH EXCEPT AS SET FORTH IN THIS SECTION].

 

    	 	25	 

     

    

 

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

 

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

 

		14.	Liability and
Indemnity

 

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

 

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

 

    	 	26	 

     

    

 

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

 

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

 

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

 

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

 

    	 	27	 

     

    

 

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

 

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

 

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

 

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

 

		15.	Termination
of the Agreement

 

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

 

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

 

    	 	28	 

     

    

 

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

 

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

 

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

 

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

 

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

 

		15.3.3	uncured
lapse of insurance coverage under Section 14 above;

 

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

 

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

 

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

 

    	 	29	 

     

    

 

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

 

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

 

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

 

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

 

    	 	30	 

     

    

 

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

 

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

 

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

 

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

 

    	 	31	 

     

    

 

		16.	Law

 

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

 

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

 

		17.	Miscellaneous

 

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

 

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

 

    	 	32	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	33	 

     

    

 

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

 

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

 

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

 

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

 

		18.	Notices

 

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

 

To
Yissum at:

 

Yissum
Research Development Company

of the Hebrew University of Jerusalem Ltd.

P.O.
Box 39135,

Jerusalem
91390

Israel

Facsimile:
972-2-6586689

Email:
bob.trachtenberg@yissum.co.il

 

To
the Company at:

Scopus
BioPharma Inc.

420
Lexington Avenue, Suite 300

New York, New York 10170

Email:

 

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

 

    	 	34	 

     

    

 

IN WITNESS WHEREOF THE
PARTIES HAVE SET THEIR HANDS

 

	YISSUM	 	THE COMPANY
	 	 	 	 	 

	By:	/s/ Ariela Markel	 	By:	/s/ Morris Laster
	 	 	 	 	 
	Name:	Ariela Markel, M.Sc., MBA	 	Name:	Morris Laster
	 	 	 	 	 
	Title:	VP Licensing, Biotechnology	 	Title:	CEO
	 	 	 	 	 
	Date:	6.3.19	 	Date:	March 11, 2019

 

	/s/ Yaron Daniely	 	 	 
	Dr. Yaron Daniely	 	 	 
	CEO of Yissum	 	 	 

 

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

 

	/s/  Alexander Binshtok	 	March 11, 2019
	 	 	 
	Prof. Alexander Binshtok	 	Date signed

 

    	 	35	 

     

    

 

Appendix
A

 

LICENSED
PATENTS

 

Family: 6495 Title: METHOD
COMPOSITIONS AND KITS FOR TREATING PAIN AND ITCH

 

	Inventor	 	University	 	Faculty	 	Department
	Binshtok Alexander	 	HUJI	 	School of Medicine
    - IMRIC	 	Medical
        Neurobiology

 

	 	 	 	 	 	 	Application	 	Publication	 	Patent
	Patent
    ID	 	Status	 	Country	 	Date	 	Number	 	Date	 	Number	 	Date	 	Number
	6495-00	 	Filed	 	US	 	05/07/2018	 	62/694,159	 		 	 	 	 	 	 

 

KNOW-HOW

 

[Researcher
to Provide]

 

	YISSUM	 	THE COMPANY
	 	 	 	 	 
	By:	/s/ Ariela Markel	 	By:	/s/ Morris Laster
	 	 	 	 	 
	Name:	Ariela Markel, M.Sc., MBA	 	Name:	Morris Laster
	 	 	 	 	 
	Title:	VP Licensing, Biotechnology	 	Title:	CEO
	 	 	 	 	 
	Date:	5.3.19	 	Date:	March 11, 2019

 

	/s/ Yaron Daniely	 	 	 
	Dr. Yaron Daniely	 	 	 
	CEO of Yissum	 	 	 

 

 

    	 	36	 

     

    

 

Appendix
B

 

THE
DEVELOPMENT PLAN

 

Scopus
Biopharma will contract with a current Good Manufacturing Practice (cGMP) capable contract manufacturing organization (CMO) to
procure the SB-001 drug substance (DS) comprising of cannabidiol and chloroprocaine.

 

The
drug product (DP) to be used in clinical trials is intended to be an injection fixed combination drug product (FCDP) solution form.
A CMO will be contracted to perform formulation development and DP analytical method development and qualification. Following selection
of the injectable formulation that will be used for clinical trials and a trial run of manufacturing (i.e., engineering run), cGMP
batches will be manufactured. Both the engineering and cGMP batches will be release tested and put on stability. This process should
begin shortly after the start of the DS work.

 

Additionally,
metabolites of cannabidiol and chloroprocaine will be procured/synthesized to serve as analytical reference standards and, if warranted
by the data, for toxicological qualification.

 

Pre-clinical
Development

 

Assay
Development: Scopus Biopharma will contract with a Contract Research Organization
(CRO) to develop and validate bioanalytical methods for rat, dog, and human plasma.

 

Pharmacology:
Scopus Biopharma will contract with qualified CRO(s) to perform standard Good Laboratory
Practice (GLP) safety pharmacology studies primarily on the cannabidiol component of SB-001. The studies are anticipated to include
in vitro hERG, subcutaneous (sc) rat central nervous system, sc rat respiratory system, and sc dog cardiovascular system, as well
as additional studies if warranted by the data. All of the GLP safety pharmacology studies will utilize DS from either the engineering
or cGMP batches.

 

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

 

Clinical
Development

 

Scopus
Biopharma will contract out clinical trial related tasks to qualified CRO(s). The initial trial (i.e., the protocol to be included
in the original IND filing) is anticipated to be a Phase 1 open label dose escalation study of safety tolerance PK including bioavailability
in healthy volunteers, (non-visceral injection SB-001FCDP vs comparator) to be followed by an IV version of the same study.

 

Following
the completion of two Phase 1 safety, tolerability, and PK studies in healthy volunteers, Scopus Biopharma plans to move to a Phase
2 randomized double-blind study of tolerance including dose response, safety and PK in patients (non-visceral injection SB-001FCDP vs comparator). Following the successful completion of the Phase 2 study, Scopus Biopharma intends to enter into two pivotal
Phase 3 trials randomized double-blind study of efficacy, safety and population PK in patients (non-visceral injection SB-001FCDP
vs comparator).

 

    	 	37	 

     

    

 

Regulatory
Submission

 

At
the appropriate time, Scopus Biopharma plans to file a pre-IND meeting request with FDA to confirm that the planned CMC and non-clinical
tasks will support the initiation of the proposed Phase 1 clinical trials. In this way, course corrections in the development plan
can be made early on, expediting development and avoiding waste of resources.

 

Following the completion
of the Phase 1 clinical studies, Scopus Biopharma intends to request an end of phase 1 (EOP) meeting. At the completion of the
Phase 2 study, we expect to file for an EOP2 meeting. Following the completion of the Phase 3 pivotal trials, a pre-NDA meeting
will be requested and a NDA 505(b)2 will be filed.

 

	Development Event	 	Anticipated Timeline
	Complete IND enabling pre-clinical studies	 	[                     ]
	Phase 1 clinical studies start	 	[                     ]
	Phase 2 clinical study start	 	[                     ]
	Phase 3 clinical studies start	 	[                     ]
	NDA	 	[                     ]

  

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

 

    	 	38

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