Document:

Exhibit
10.2

 

THIS
5% UNSECURED PROMISSORY NOTE (THE “NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“ACT”),
OR THE SECURITIES LAWS OF ANY STATE. THIS NOTE MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT REGISTRATION UNDER THE ACT AND
ANY APPLICABLE STATE SECURITIES LAWS OR DELIVERY TO NEXT BRIDGE HYDROCARBONS, INC. OF AN OPINION OF LEGAL COUNSEL SATISFACTORY TO NEXT
BRIDGE HYDROCARBONS, INC. THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR ANY APPLICABLE STATE SECURITIES LAWS.

 

5%
UNSECURED PROMISSORY NOTE

OF

NEXT
BRIDGE HYDROCARBONS, INC. 

 

	US$20,000,000.00	December
    21, 2022

 

FOR
VALUE RECEIVED, NEXT BRIDGE HYDROCARBONS, INC., a Nevada corporation with its principal office located at 6300 Ridgelea Place, Suite
950 Fort Worth, Texas 76116 (the “Company”), unconditionally promises to pay to Gregory McCabe, an individual
with an address at 500 West Texas Ave., Suite 890, Midland, Texas 79701, or his registered assignee, upon presentation of this 5% Senior
Unsecured Promissory Note (the “Note”) by the registered holder hereof (the “Holder”)
at the office of the Company, the aggregate of such amounts the Holder has disbursed to the Company pursuant to Section 2, together
with the accrued and unpaid interest thereon and other sums as hereinafter provided, subject to the terms and conditions as set forth
below.

 

1.       Capitalized
terms used herein have the meanings set forth in this Section 1.

 

“Advance”
means each disbursement made by the Holder to the Company hereunder pursuant to Section 2.

 

“Applicable
Rate” means the rate equal to 5.00% per annum.

 

“Borrowing
Notice” has the meaning set forth in Section 2(b).

 

“Business
Day” means a day other than a Saturday, Sunday, or other day on which commercial banks in Midland, Texas are authorized
or required by law to close.

 

“Company”
has the meaning set forth in the introductory paragraph of this Note.

 

“Closing
Date” means December 21, 2022.

 

“Commitment
Period” means the period from the Closing Date to the Maturity Date.

    
5% Senior Unsecured Promissory Note
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“Default”
means any of the events specified in Section 6 which constitute an Event of Default or which, upon the giving of notice, the lapse
of time, or both, pursuant to Section 6, would, unless cured or waived, become an Event of Default.

 

“Default
Rate” means the Applicable Rate plus 2.00% per annum.

 

“Event
of Default” has the meaning set forth in Section 6.

 

“Governmental
Authority” means the government of any nation or any political subdivision thereof, whether at the national, state, territorial,
provincial, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government.

 

“Holder”
has the meaning set forth in the introductory paragraph of this Note.

 

“Loan”
means the aggregate of all Advances (if any) made to the Company under the terms of this Note in an aggregate principal amount not to
exceed $20,000,000.00 at any time.

 

“Material
Indebtedness” means any debt or indebtedness of the Company (other than the Loan) in an aggregate principal amount exceeding
$1,000,000.

 

“Maturity
Date” means the earlier of (a)(i) if a Qualified Financing has been consummated on or before March 31, 2023, October 3,
2023, (ii) if a Qualified Financing has not been consummated on or before March 31, 2023, June 21, 2023 and (b) the date on which all
amounts under this Note shall become due and payable pursuant to Section 7.

 

“Meta”
means Meta Materials Inc., a Nevada corporation or its permitted successors, assigns and transferees pursuant to the terms set forth
in the Meta Loan Agreement.

 

“Meta
Loan Agreement” means the Loan Agreement dated as of September 2, 2022, as amended from time to time, among the Company,
the subsidiaries of the Company party thereto, and Meta.

 

“Meta
Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, the Company and its subsidiaries
arising under the Meta Loan Agreement, any other loan document referred to therein or otherwise with respect to any loans made by Meta
under the Meta Loan Agreement, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to
become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against the Company,
any of its subsidiaries or any affiliate of the Company of any proceeding under any bankruptcy, insolvency or other debtor relief laws
naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed or allowable claims in
such proceeding. Without limiting the foregoing, the Meta Obligations include (a) the obligation to pay principal, interest, charges,
expenses, fees, indemnities and all other amounts payable by the Company and its subsidiaries under the Meta Loan Agreement or any other
loan document referred to therein and (b) the obligation of the Company and its subsidiaries to reimburse any amount in respect of any
of the foregoing that Meta, in each case in Meta’s sole discretion, may elect to pay or advance on behalf of the Company or its
subsidiaries.

    
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“Note”
has the meaning set forth in the introductory paragraph of this Note.

 

“Note
Register” has the meaning set forth in Section 3(a).

 

“Orogrande
Wells” means the five wells that the Company is obligated to drill to maintain its leases representing approximately 134,066
net acres in the Orogrande Basin in West Texas.

 

“Person”
means any individual, corporation, limited liability company, trust, joint venture, association, company, limited or general partnership,
unincorporated organization, Governmental Authority, or other entity.

 

“Qualified
Financing” has the meaning set forth in the Meta Loan Agreement.

 

2.       Loan
Disbursement.

 

  (a)       Commitment.
Subject to Section 2(b), the Holder may make available to the Company one or more Advances in its sole discretion during the Commitment
Period in an aggregate principal amount not to exceed the Loan.

 

  (b)       Advances.
As a condition to the disbursement of any Advance, the Company shall, at least two (2) Business Days prior to the requested disbursement
date, deliver to the Holder a written notice (a “Borrowing Notice”) in the form of Exhibit A setting
out (a) that no Default or Event of Default has occurred and is continuing; (b) the amount of the Advance, which amount must be in a
minimum principal amount of $100,000; (c) the date on which the Advance is to be disbursed, which shall be a Business Day; and (d) the
representations and warranties of the Company set forth in this Note shall be true and correct in all material respects (except to the
extent any such representation and warranty is qualified by materiality, in which case, such representation and warranty shall be true
and correct in all respects) on and as of the date of such Advance, except to the extent any such representations and warranties are
expressly limited to an earlier date, in which case, on and as of the date of such Advance, such representations and warranties shall
continue to be true and correct in all material respects (except to the extent any such representation and warranty is qualified by materiality,
in which case, such representation and warranty shall be true and correct in all respects) as of such specified earlier date. Upon receipt
of the Borrowing Notice, the Holder may make such Advance in its sole discretion to the Company on the applicable disbursement date the
amount set out in the notice in immediately available funds.

 

3.       Payment
Dates; Prepayments.

 

  (a)       Payment
Dates. If all of the outstanding Meta Obligations have been repaid in full in cash to Meta (other than inchoate indemnification obligations
for which no claim has been asserted), the Company shall repay the Loan outstanding under this Note, along with all accrued and unpaid
interest on the outstanding principal of this Note, to the Holder on the Maturity Date. Except as otherwise provided herein, the outstanding
principal amount of any Advance made hereunder shall bear interest at the Applicable Rate from the date such Advance was made until such
Advance is paid in full, whether at the Maturity Date, upon acceleration, by prepayment or otherwise. If all of the outstanding Meta
Obligations have been repaid in full in cash to Meta (other than inchoate indemnification obligations for which no claim has been asserted),
the principal of, and interest on, this Note so payable will be paid to the Person whose name is registered on the records of the Company
regarding registration and transfers of this Note (the “Note Register”). By its acceptance of this Note, the
Holder hereby acknowledges and agrees that until the date on which all of the outstanding Meta Obligations have been paid in full in
cash to Meta, the Company shall not make any payments under this Note to the Holder, and the Holder shall not accept any payments under
this Note from the Company.

    
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  (b)       Optional
Prepayments. If all of the outstanding Meta Obligations have been paid in full in cash to Meta (other than inchoate indemnification
obligations for which no claim has been asserted), the Company may prepay the Loan in whole or in part at any time or from time to time,
without penalty or premium, by paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment.

 

  (c)       Payment
Mechanics. Payment of any sums due to the Holder under the terms of this Note shall be made in United States Dollars by check or
wire transfer, at the option of the Holder, no later than 3:00 p.m. prevailing central time on the date on which such payment is due
or such payment is made. Payment shall be made at the address last appearing on the Note Register of the Company as designated in writing
by the Holder hereof from time to time. If any payment hereunder would otherwise become due and payable on a day that is not a Business
Day and, with respect to payments of the Loan, interest thereon shall be payable at the Applicable Rate during such extension, if any.
The forwarding of such funds shall constitute a payment of outstanding principal and interest hereunder and shall satisfy and discharge
the liability for principal and interest on this Note to the extent of the sum represented by such payment.

 

  (d)       Application
of Proceeds. All payments made under this Note shall be applied first to the payment of any fees or charges outstanding hereunder;
second to accrued interest; and third to the payment of the principal amount outstanding under the Note.

 

  (e)       Evidence
of Debt. The Holder is authorized to record on the grid attached hereto as Exhibit B, each Advance made to the Company and
each payment or prepayment thereof. The entries made by the Holder shall, to the extent permitted by applicable law, be prima facie evidence
of the existence and amounts of the obligations of the Company therein recorded; provided, however, that the failure of
the Holder to record such payments or prepayments, or any inaccuracy therein, shall not in any manner affect the obligation of the Company
to repay (with applicable interest) the Loan in accordance with the terms of this Note.

 

4.       Interest.

 

  (a)       Interest
Rate. Except as otherwise provided herein, the outstanding principal amount of any Advance made hereunder shall bear interest at
the Applicable Rate from the date such Advance was made until such Advance is paid in full, whether at maturity, upon acceleration, by
prepayment, or otherwise.

    
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  (b)       Interest
Payment Dates. If all of the outstanding Meta Obligations have been repaid in full in cash to Meta (other than inchoate indemnification
obligations for which no claim has been asserted), interest shall be payable in arrears on the Maturity Date.

 

  (c)       Computation
of Interest. All computations of interest shall be made on the basis of 365 or 366 days, as the case may be, and the actual number
of days elapsed. Interest shall accrue on each Advance on the day on which such Advance is made, and shall not accrue on such Advance
for the day on which it is paid.

 

5.       Representations
and Warranties of the Company. The Company represents and warrants to the Holder that:

 

  (a)       Organization.
The Company is validly existing and in good standing under the laws of the state of Nevada and has the requisite power to own, lease
and operate its properties and to carry on its business as now being conducted. The Company is duly qualified to do business and is in
good standing in each jurisdiction in which the character or location of the properties owned or leased by the Company or the nature
of the business conducted by the Company makes such qualification necessary or advisable, except where the failure to do so would not
have a material adverse effect on the Company.

 

  (b)       Power
and Authority. The Company has the requisite power to execute, deliver and perform this Note, and to consummate the transactions
contemplated hereby. The execution and delivery of this Note by the Company and the consummation of the transactions contemplated hereby
have been duly authorized by all necessary corporate action on the part of the Company. This Note has been duly executed and delivered
by the Company and constitutes a legal, valid and binding obligation of the Company and is enforceable against the Company in accordance
with its terms except (i) that such enforcement may be subject to bankruptcy, insolvency, moratorium or similar laws affecting creditors’
rights and (ii) that the remedy of specific performance and injunctive and other forms of equitable relief are subject to certain equitable
defenses and to the discretion of the court before which any proceedings therefor may be brought.

 

  (c)       Approvals.
No authorization, approval or consent of any Governmental Authority is required to be obtained by the Company for the issuance and sale
of the Note, except such authorizations, approvals and consents that have been obtained.

    
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6.       Events
of Defaults. The following are deemed to be an event of default (“Event of Default”) hereunder: (a)
the failure by the Company to pay any installment of interest on this Note as and when due and payable and the continuance of any such
failure for ten (10) days; (b) the failure by the Company to pay all or any part of the principal on this Note when and as the same become
due and payable as set forth above, at maturity, by acceleration or otherwise; (c) any representation or warranty made or deemed made
by or on behalf of the Company in this Note or any amendment or modification hereof or thereof or waiver hereunder or thereunder, or
in any report or notice furnished pursuant to or in connection with this Note or any amendment or modification hereof or thereof or waiver
hereunder or thereunder, shall prove to have been incorrect in any material respect (or, in the case of any such representation or warranty
under this Note already qualified by materiality, such representation or warranty shall prove to have been incorrect) when made or deemed
made; (d) the failure by the Company to observe or perform any covenant or agreement contained in this Note and the continuance of such
failure for a period of thirty (30) days after the written notice is given to the Company; (e) the assignment by the Company for the
benefit of creditors, or an application by the Company to any tribunal for the appointment of a trustee or receiver of a substantial
part of the assets of the Company, or the commencement of any proceedings relating to the Company under any bankruptcy, reorganization,
arrangement, insolvency, readjustment of debts, dissolution or other liquidation law of any jurisdiction; or the filing of such application,
or the commencement of any such proceedings against the Company and an indication of consent by the Company to such proceedings, or the
appointment of such trustee or receiver, or an adjudication of the Company bankrupt or insolvent, or approval of the petition in any
such proceedings, and such order remains in effect for sixty (60) days; (f) the declaration of an event of default or default, occurring
after the Closing Date, under any Material Indebtedness, the effect of which is to cause, or to permit the lender or creditor (or a trustee
or agent on behalf of such holder or beneficiary) to cause, with the giving of notice, if required, such Material Indebtedness to become
due prior to its stated maturity; or (g) the entry of one or more judgments in excess of $2,500,000 (to the extent not covered by independent
third-party insurance as to which the insurer does not dispute coverage and is not subject to any insolvency proceeding and, for the
avoidance of doubt, net of any such coverage) against the Company, which remains undischarged, unsatisfied, unvacated or unbonded for
a period of sixty (60) consecutive days during which execution shall not be effectively stayed (pursuant to applicable law, rules, court
orders, settlement agreements or agreements with the judgment creditor). For avoidance of doubt, the failure of the Company to pay any
principal of or interest on this Note on the Maturity Date due solely to any Meta Obligations being outstanding shall not constitute
an Event of Default under this Note.

 

7.       The
Holder’s Rights and Remedies upon the Occurrence of an Event of Default. Upon the occurrence of any Event of Default and
at any time thereafter during the continuance of such Event of Default, the Holder may, at its option, by written notice to the Company
(a) terminate its commitment to make any Advances hereunder; (b) declare the entire principal amount of the Loan, together with all accrued
interest thereon and all other amounts payable under this Note, immediately due and payable and/or (c) require any outstanding principal
to bear interest from the date of the Event of Default at the Default Rate (subject to Section 14). Failure to exercise this option
shall not constitute a waiver of the right to exercise the same in the event of a subsequent Event of Default. If the Note for which
the then outstanding principal amount, together with interest owing in respect thereof, shall have been paid in accordance herewith,
the Note shall promptly be surrendered to or as directed by the Company.

 

8.       Limitation
on Merger, Sale or Consolidation. The Company may not, directly or indirectly, consolidate with or merge into another person
or sell, lease, convey or transfer all or substantially all of its assets (computed on a consolidated basis), whether in a single transaction
or a series of related transactions, to another person or group of affiliated persons, unless either (a) in the case of a merger or consolidation,
the Company is the surviving entity or (b) the resulting, surviving or transferee entity expressly assumes by supplemental agreement
all of the obligations of the Company in connection with the Note. Upon any consolidation or merger or any transfer of all or substantially
all of the assets of the Company in accordance with the foregoing, the successor entity formed by such consolidation or into which the
Company is merged or to which such transfer is made, shall succeed to, and be substituted for, and may exercise every right and power
of the Company under the Note with the same effect as if such successor entity had been named therein as the Company, and the Company
will be released from its obligations under the Note, except as to any obligations that arise from or as a result of such transaction.

    
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9.       Listing
of Holder of Note. This Note will be registered in the Holder’s name on the books of the Company at its principal office
in Midland, Texas, after which no transfer hereof shall be valid unless made on the Company’s books at the office of the Company,
by the Holder hereof, in person, or by attorney duly authorized in writing, and similarly noted hereon.

 

10.       Holder
Not Deemed a Stockholder. No Holder, as such, of this Note shall be entitled to vote or receive dividends or be deemed the holder
of shares of the Company for any purpose, nor shall anything contained in this Note be construed to confer upon the Holder hereof, as
such, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether
any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings,
receive dividends or subscription rights, or otherwise.

 

11.       Waiver
of Demand, Presentment, Etc. The Company hereby expressly waives demand and presentment for payment, notice of nonpayment, protest,
notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, bringing of suit and diligence in taking any action
to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing
hereunder, regardless of and without any notice, diligence, act or omission as or with respect to the collection of any amount called
for hereunder.

 

12.       Attorney’s
Fees. The Company agrees to pay all reasonable and documented out-of-pocket costs and expenses, including, without limitation,
reasonable attorney’s fees, which may be incurred by the Holder in collecting any amount due under this Note.

 

13.       Enforceability.
In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity
and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.

 

14.       Intent
to Comply with Usury Laws. In no event will the interest to be paid on this Note exceed the maximum rate provided by law. It
is the intent of the parties to comply fully with the usury laws of the State of Texas; accordingly, it is agreed that notwithstanding
any provisions to the contrary in this Note, in no event shall such Note require the payment or permit the collection of interest (which
term, for purposes hereof, shall include any amount which, under Texas law, is deemed to be interest, whether or not such amount is characterized
by the parties as interest) in excess of the maximum amount permitted by the laws of the State of Texas. If any excess of interest is
unintentionally contracted for, charged or received under this Note, or in the event the maturity of the indebtedness evidenced by the
Note is accelerated in whole or in part, or in the event that all of part of the Loans or interest of this Note shall be prepaid, so
that the amount of interest contracted for, charged or received under this Note, on the amount of the Loans actually outstanding from
time to time under this Note shall exceed the maximum amount of interest permitted by the applicable usury laws, then in any such event
(a) the provisions of this paragraph shall govern and control, (b) neither the Company nor any other person or entity now or hereafter
liable for the payment thereof, shall be obligated to pay the amount of such interest to the extent that it is in excess of the maximum
amount of interest permitted by such applicable usury laws, (c) any such excess which may have been collected shall be either applied
as a credit against the then unpaid principal amount thereof or refunded to the Company at the Holder’s option, and (d) the effective
rate of interest shall be automatically reduced to the maximum lawful rate of interest allowed under the applicable usury laws as now
or hereafter construed by the courts having jurisdiction thereof. It is further agreed that, without limitation of the foregoing, all
calculations of the rate of interest contracted for, charged or received under the Note which are made for the purpose of determining
whether such rate exceeds the maximum lawful rate of interest, shall be made, to the extent permitted by applicable laws, by amortizing,
prorating, allocating and spreading in equal parts during the period of the full stated term of the Note evidenced thereby, all interest
at any time contracted for, charged or received from the Company or otherwise by the Holders in connection with this Note.

    
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15.       Governing
Law; Consent to Jurisdiction. This Note shall be governed by and construed in accordance with the laws of the State of Texas
without regard to the conflict-of-law provisions thereof. In any action between or among any of the parties, whether rising out of this
Note or otherwise, each of the parties irrevocably consents to the exclusive jurisdiction and venue of the federal and/or state courts
located in Collin County, Texas.

 

16.       Amendment
and Waiver. Any waiver or amendment hereto shall be in writing signed by the Holder. No failure on the part of the Holder to
exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
by the Holder of any right hereunder preclude any other or further exercise thereof or the exercise of any other rights. The remedies
herein provided are cumulative and not exclusive of any other remedies provided by law.

 

17.       Restrictions
Against Transfer or Assignment. This Note may not be sold, transferred, assigned, pledged, hypothecated or otherwise disposed
of by the Holder hereof, in whole or in part, unless and until either (a) the Note has been duly and effectively registered for resale
under the Securities Act of 1933, as amended, and under any then applicable state securities laws; or (b) the Holder delivers to the
Company a written opinion acceptable to the Company’s counsel that an exemption from such registration requirements is then available
with respect to any such proposed sale or disposition. Any transfer of this Note otherwise permissible hereunder shall be made only at
the principle office of the Company upon surrender of this Note for cancellation and upon the payment of any transfer tax or other government
charge connected therewith, and upon any such transfer a new Note will be issued to the transferee in exchange therefor.

 

18.       Entire
Agreement; Headings. This Note constitutes the entire agreement between the Holder and the Company pertaining to the subject
matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings, written or oral, of such parties.
The headings are for reference purposes only and shall not be used in construing or interpreting this Note.

    
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19.       Notices.
Any notices or other communications required or permitted hereunder shall be sufficiently given if in writing and delivered in person,
or sent by registered or certified mail (return receipt requested) or recognized overnight delivery service, postage pre-paid, or sent
by email addressed as follows, or to such other address as such party may notify to the other parties in writing:

 

(a)       If
to the Company, to it at the following address:

 

Next
Bridge Hydrocarbons, Inc.

6300
Ridgelea Place, Suite 950

Fort
Worth, Texas 76116

Attn: Chief Executive Officer

Email: cdubose@nextbridgehydrocarbons.com

 

(b)       If
to Holder, to it at the following address:

 

Gregory
McCabe

500
West Texas Ave., Suite 890

Midland,
Texas 79701

Email:
gregmccabe@aol.com

 

A
notice or communication will be effective (i) if delivered in person or by overnight courier, on the Business Day it is delivered, (ii)
if sent by registered or certified mail, the earlier of the date of actual receipt by the party to whom such notice is required to be
given or three (3) days after deposit in the United States mail and (iii) if sent by email, on the date sent. If any notice or other
communication is sent by email, the party providing such notice shall, no later than the next business day after such emailed notice
is sent, send a written notice by registered or certified mail (return receipt requested) or recognized overnight delivery service, postage
prepaid.

 

20.       Use
of Proceeds. The proceeds of the Advances made hereunder shall be used (a) to pay any expenditures incurred by the Company or
its consolidated subsidiaries, (b) to finance the development of the Orogrande Wells and (c) for general corporate purposes.

 

21.       Survival.
The representations, warranties, obligations and covenants of the Company shall survive execution of this Note.

 

[Signature
Page Follows.]

    
5% Senior Unsecured Promissory Note
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IN
WITNESS WHEREOF, the Company has executed this Senior Unsecured Promissory Note as of the date first written above.

 

	 	NEXT
    BRIDGE HYDROCARBONS, INC.
	 	 	 
	 	By:	/s/
    Clifton DuBose
	 	Name:
    Clifton DuBose
	 	Title:
      Chief Executive Officer

 

By
its acceptance of this Note, the Noteholder acknowledges and agrees to be bound by the provisions of Sections 2, 3 and 6.

 

	 	By:	/s/
    Gregory McCabe
	 	Name:
    Gregory McCabe

 

[Signature
Page to 5% Senior Unsecured Promissory Note] 

     

     

    

Exhibit
A

 

Form
of Borrowing Notice

 

_____________
__, 202__

 

Gregory
McCabe

500 West Texas Ave., Suite 890

Midland,
Texas 79701

E-mail:
gregmccabe@aol.com

Mr. McCabe:

 

NEXT
BRIDGE HYDROCARBONS, INC., a Nevada corporation (the “Company”), refers to that certain 5% Senior Unsecured
Promissory Note, dated as of December 21, 2022 (as it may be amended, restated, modified or supplemented from time to time, the “Note”),
between the Company and Gregory McCabe. Terms defined in the Note and not otherwise defined herein have the same respective meanings
when used herein. Pursuant to the Note, the undersigned hereby requests an Advance and in that connection sets forth below the information
relating to such Advance, as required by the Credit Agreement.

 

1.       The
date of the Advance is ___________, 202__.1

 

2.       The
aggregate principal amount of the Advance is $______________.2

 

3.       The
undersigned hereby certifies that the following statements are true on the date hereof and will be true and correct on the date of the
Advance:

 

a.       
no Default or Event of Default has occurred or is continuing; and

 

        b.       all
representations and warranties made by the Company in the Note are true and correct in all material respects (except to the extent any
such representation and warranty is qualified by materiality, in which case, such representation and warranty shall be true and correct
in all respects) on and as of the date of such Advance, except to the extent any such representations and warranties are expressly limited
to an earlier date, in which case, on and as of the date of such Advance, such representations and warranties shall continue to be true
and correct in all material respects (except to the extent any such representation and warranty is qualified by materiality, in which
case, such representation and warranty shall be true and correct in all respects) as of such specified earlier date.

 

[Signature
Page Follows] 

 

 

	1	The funding date must be a Business Day and
  must be 2 Business Days in advance of the date of the Borrowing Notice.
	 	 
	2	The amount of all outstanding Advances cannot
  exceed $20MM and each advance cannot be less than $100K.

     

     

    

Very
truly yours,

 

	 	NEXT
    BRIDGE HYDROCARBONS, INC.,
	 	a
    Nevada corporation
	 	 	 

	 	By:	
	 	Name: 	 
	 	Title:Document

Exhibit 10.1

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH “[***]”. SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF DISCLOSED.
ASSET PURCHASE AND LICENSE AMENDMENT AGREEMENT
This Asset Purchase and License Amendment Agreement (this “Agreement”), dated as of December 27, 2022 (the “Agreement Date”), is entered into by and between Jounce Therapeutics, Inc., a Delaware corporation (“Seller”), and Gilead Sciences, Inc., a Delaware corporation (“Buyer,” and with Seller, individually, each a “Party” and, collectively, the “Parties”). Any capitalized term not defined herein that is defined in the License Agreement (as defined below) shall have the meaning set forth in the License Agreement. 
RECITALS
WHEREAS, Seller owns the Patents and Know-How related to the Licensed Products set forth on Schedule 1 attached hereto (the “Assets”); 
WHEREAS, Seller has previously licensed the Jounce IP, including Assets, to Buyer pursuant to the License Agreement (the “License Agreement”), dated as of August 31, 2020, by and between the Parties; and
WHEREAS, Seller wishes to sell and assign to Buyer, and Buyer wishes to purchase and assume from Seller, all the Assets, and the Parties wish to modify the License Agreement as set forth in ARTICLE VII (the “License Amendment”), in each case, subject to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
ARTICLE I
PURCHASE AND SALE
Section 1.01    Purchase and Sale of Assets. Subject to the terms and conditions set forth herein, at the Closing, Seller shall sell, convey, assign, transfer, and deliver to Buyer, and Buyer shall purchase from Seller, all of Seller’s right, title, and interest in, to, and under all of the Assets, whether tangible or intangible, including all rights therein of every kind and nature and wherever located (collectively, the “Purchased Assets”). 
Section 1.02    Purchase Price. The aggregate purchase price for the Purchased Assets and consideration for the License Amendment shall be sixty-seven million dollars ($67,000,000) (the “Purchase Price”). On the Closing Date, Buyer shall pay the Purchase Price by wire transfer to Seller of immediately available funds in accordance with the wire transfer instructions provided by Seller prior to the Closing Date.  
Section 1.03    Allocation of Purchase Price. The Parties (i) agree that the Purchased Assets are exclusively Class VI or Class VII assets for purposes of Section 1060 of the Internal Revenue Code of 1986, as amended, the regulations thereunder, and IRS Form 8594 and (ii) shall allocate the entire amount of the Purchase Price to Class VI or Class VII assets. Buyer and Seller shall file all returns, declarations, reports, information returns and statements, and other 

documents relating to taxes (including amended returns and claims for refund) in a manner consistent with this Section 1.03.   
Section 1.04    Withholding Tax. Unless required under Applicable Law, Buyer shall not be entitled to deduct and withhold from the Purchase Price any amount in respect of taxes. 
Section 1.05    Third-Party Consents. To the extent that Seller’s rights in, to or under any Purchased Asset may not be assigned to Buyer without the consent of another Person which has not been obtained, this Agreement shall not constitute an agreement to assign the same if an attempted assignment would constitute a breach thereof or be unlawful, and Seller, at its expense, shall use commercially reasonable efforts to obtain any such required consent(s) as promptly as possible. If any such consent shall not be obtained or if any attempted assignment would be ineffective or would impair Buyer’s rights under the Purchased Asset in question so that Buyer would not in effect acquire the benefit of all such rights, Seller, to the maximum extent permitted by applicable Law, shall act after the Closing as Buyer’s agent in order to obtain for Buyer the benefits thereunder and shall cooperate, to the maximum extent permitted by Applicable Law, with Buyer in any other reasonable arrangement designed to provide such benefits to Buyer.
Section 1.06    Excluded Assets and Excluded Liabilities. Notwithstanding any other provision contained in this Agreement or in the other Transaction Documents, Seller and Buyer expressly acknowledge and agree that Buyer is not acquiring any right, title or interest in or to any of the assets of Seller or any of its Affiliates that are not specifically identified as Purchased Assets in Section 1.01 (such remaining Jounce IP, including any Jounce-Owned IP created after the Closing Date, the “Retained Jounce IP”). Notwithstanding any other provision contained in this Agreement or in the other Transaction Documents, Seller and Buyer expressly acknowledge and agree that Buyer is not assuming any liability of Seller or any of its Affiliates hereunder, including any liability arising out of or related to the Purchased Assets that exists on or prior to the Closing Date (the “Excluded Liabilities”).
ARTICLE II
CLOSING
Section 2.01    Closing. Subject to the terms and conditions of this Agreement, the consummation of the transactions contemplated by this Agreement (the “Closing”) shall take place remotely by exchange of documents and signatures (or their electronic counterparts), simultaneously with the execution of this Agreement on the Agreement Date, or at such other time or place or in such other manner as Seller and Buyer may mutually agree upon in writing. The date on which the Closing occurs is herein referred to as the “Closing Date.”
Section 2.02    Closing Deliverables.
(a)    At the Closing, Seller shall deliver to Buyer the following:
(i)    an intellectual property assignment agreement in the form of Exhibit A attached hereto (the “IP Assignment Agreement”) and duly executed by Seller; and
(ii)    a certificate of the Secretary of Seller certifying as to (A) the resolutions of the board of directors of Seller, which authorize the execution, delivery, and performance of this Agreement and the IP Assignment Agreement (collectively, the “Transaction Documents”) and the consummation of the transactions contemplated hereby and thereby, and (B) the names and titles of the 
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officers of Seller authorized to sign this Agreement and the other Transaction Documents.  
(b)    At the Closing, Buyer shall deliver to Seller the IP Assignment Agreement duly executed by Buyer. 
Section 2.03    Delivery of Purchased Assets. Reasonably promptly following a written request by Buyer delivered within [***] of the Agreement Date, to the extent any Purchased Know-How (as defined in Schedule 1) has not been disclosed to Buyer in writing prior to the Closing, Seller shall promptly disclose such Purchased Know-How to Buyer and cooperate with Buyer to facilitate the efficient and timely disclosure of such Purchased Know-How to Buyer. In addition, from and after the Closing, Seller will cooperate with and provide Buyer with all available files and information relating to the Purchased Patents (as defined in Schedule 1) and access to all inventors identified on such Purchased Patents as reasonably requested by Buyer and its legal representatives to permit Buyer to obtain the full benefit of its ownership of the Purchased Patents, including without limitation, copies of invention disclosures and associated lab notebooks, ownership records, including inventor assignments and patent recordation records, among others.  
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF SELLER
Seller represents and warrants to Buyer that the statements contained in this ARTICLE III are true and correct as of the Agreement Date.
Section 3.01    Organization and Authority of Seller. Seller is a corporation duly organized, validly existing, and in good standing under the Laws of the State of Delaware. Seller has full corporate power and authority to enter into this Agreement and the other Transaction Documents to which Seller is a party, to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Seller of this Agreement and any other Transaction Document to which Seller is a party, the performance by Seller of its obligations hereunder and thereunder, and the consummation by Seller of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate, board, and shareholder action on the part of Seller. This Agreement and the Transaction Documents constitute legal, valid, and binding obligations of Seller enforceable against Seller in accordance with their respective terms.
Section 3.02    No Conflicts or Consents. The execution, delivery, and performance by Seller of this Agreement and the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) violate or conflict with any provision of the certificate of incorporation, by-laws, or other governing documents of Seller; (b) violate or conflict with any provision of any statute, law, ordinance, regulation, rule, code, constitution, treaty, common law, other requirement, or rule of law of any Governmental Authority (collectively, “Law”) or any order, writ, judgment, injunction, decree, stipulation, determination, penalty, or award entered by or with any Governmental Authority (“Governmental Order”) applicable to Seller or the Purchased Assets; (c) except to register the assignment of the Purchased Patents with the USPTO and all applicable foreign and international patent authorities, require the consent, notice, declaration, or filing with or other action by any individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association, or other entity (“Person”) or require any permit, license, or Governmental Order; (d) violate or conflict with, result in the acceleration of, or create in any party the right to accelerate, terminate, modify, or cancel any contract to which Seller is a party or by which Seller or the Purchased Assets is 
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bound or to which any of the Purchased Assets are subject (other than the License Agreement); or (e) result in the creation or imposition of any charge, claim, pledge, equitable interest, lien, or security interest, restriction of any kind, or other encumbrance (“Encumbrance”) on the Purchased Assets other than Permitted Encumbrances. “Permitted Encumbrances” means (i) any Encumbrance (as defined above) on the Purchased Assets permitted under the terms of the License Agreement ([***]) and (ii) any liens for taxes, assessments or other governmental charges not yet due and payable as of the Closing Date. 
Section 3.03    Legal Proceedings; Governmental Orders.
(a)    There are no claims, actions, causes of action, demands, lawsuits, arbitrations, inquiries, audits, notices of violation, proceedings, litigation, citations, summons, subpoenas, or investigations of any nature, whether at law or in equity (collectively, “Actions”) pending or, to Seller’s knowledge, threatened against or by Seller relating to or affecting the Purchased Assets and no event has occurred or circumstances exist that would reasonably be expected to give rise to, or serve as a basis for, any such Action. 
(b)    There are no outstanding Governmental Orders against, relating to, or affecting the Purchased Assets. 
Section 3.04    Compliance with Laws. Seller is in compliance in all material respects with all Laws applicable to the ownership and use of the Purchased Assets.
Section 3.05    Purchased Assets.   
(a)    Schedule 1 sets forth the only Patents that constitutes a Jounce Patent owned by Seller.
(b)    Seller (i) is the sole and exclusive owner of, and has good and valid title to, all of the Purchased Assets, free from Encumbrances; (ii) has not granted to any Third Parties any rights under the Purchased Assets (except for non-exclusive licenses granted to Third Parties solely for purposes of performing services on behalf of, and for the benefit of, Seller), and (iii) is listed in the records of the appropriate Governmental Authority as the sole and exclusive owner of record for each registration, grant, and application with respect to the Purchased Patents.
(c)    Seller has not granted any Third Party any rights under any Purchased Assets that would conflict with or limit the scope of the assets or rights purported to be transferred to Buyer hereunder or Buyer’s use of such assets or rights after Closing. Seller has the full and legal rights and authority to disclose the Purchased Know-How to Buyer free from Encumbrances.  
(d)    [***], Seller has not received [***] or [***] that any [***] by Seller or Buyer [***] or otherwise [***], or is [***], or otherwise [***], the [***] of such [***].
(e)    All inventors of the inventions claimed in the Purchased Patents are accurately identified in the relevant Purchased Patents, applications and related filings and submissions in accordance with Applicable Law, and all inventors identified in such records are former or current employees or contractors of Seller who have, in each case, assigned all of their respective right, title, and interest in the applicable Purchased Patents to Seller prior to the Agreement Date. As of [***], Seller has Prosecuted and Maintained all Purchased Patents in good faith and has complied with the USPTO duty of disclosure respecting the Prosecution and Maintenance thereof, and, to Seller’s knowledge, all 
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issued patents included in the Purchased Patents are valid and enforceable without any claims, challenges, oppositions, interference, or other similar proceedings pending or threatened. 
(f)    All Jounce employees, officers, and consultants who have been or are presently involved in the development of the Purchased Assets have executed agreements effectively assigning to Jounce, or have existing obligations under Applicable Law requiring assignment to Jounce of, all inventions made during the course of and as the result of their association with Jounce, free from Encumbrances, and obligating each such individual to maintain as confidential the Purchased Assets.
(g)    Neither Seller nor any of its Affiliates has made a claim against a Third Party alleging that a Third Party is violating or has violated, is infringing or has infringed, or is misappropriating or has misappropriated any Purchased Assets, and, to Seller’s knowledge, no Purchased Asset is being violated, infringed, or misappropriated by any Third Party.
(h)    Seller has maintained intellectual property protection guidelines within its organization and, to Seller’s knowledge, there has not been any unauthorized disclosure of intellectual property rights, including any Purchased Know-How, to any Third Party nor any disclosure of Purchased Know-How to any Third Party except under written obligations of confidentiality.
(i)    Seller has no liabilities with respect to the Purchased Assets.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF BUYER
Buyer represents and warrants to Seller that, as of the date hereof, the statements contained in this ARTICLE IV are true and correct as of the Agreement Date.
Section 4.01    Organization and Authority of Buyer. Buyer is a corporation duly organized, validly existing, and in good standing under the Laws of the State of Delaware. Buyer has full corporate power and authority to enter into this Agreement and the other Transaction Documents to which Buyer is a party, to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Buyer of this Agreement and any other Transaction Document to which Buyer is a party, the performance by Buyer of its obligations hereunder and thereunder, and the consummation by Buyer of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Buyer. This Agreement and the Transaction Documents to which Buyer is party constitute legal, valid, and binding obligations of Buyer enforceable against Buyer in accordance with their respective terms.
Section 4.02    No Conflicts or Consents. The execution, delivery, and performance by Buyer of this Agreement and the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) violate or conflict with any provision of the certificate of incorporation, by-laws, or other governing documents of Buyer; (b) violate or conflict with any provision of any Law or Governmental Order applicable to Buyer; (c) require the consent, notice, declaration, or filing with or other action by any Person or require any permit, license, or Governmental Order; or (d) violate or conflict with, result in the acceleration of, or create in any party the right to accelerate, terminate, modify, or cancel any contract to which Buyer is a party or by which Buyer is bound. 
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Section 4.03    Legal Proceedings; Governmental Orders.
(a)    There are no Actions pending or, to Buyer’s knowledge, threatened against or by Buyer relating to or affecting the Purchased Assets. No event has occurred or circumstances exist that would reasonably be expected to give rise to, or serve as a basis for, any such Action.
(b)    There are no outstanding Governmental Orders against, relating to, or affecting the Purchased Assets. 
ARTICLE V
COVENANTS
Section 5.01    Confidentiality; Public Announcements. 
(a)    Agreement. The Parties agree that this Agreement and the terms hereof will be deemed to be the Confidential Information of both Parties, and each Party agrees not to disclose this Agreement or any terms hereof without first obtaining the prior written consent of the other Party; provided, that each Party may disclose this Agreement or any terms hereof in accordance with the provisions of Section 12.3 of the License Agreement.
(b)    Press Releases and Use of Name. Section 12.5.1 and Section 12.6 of the License Agreement are each hereby incorporated by reference mutatis mutandi.  The Parties have agreed that Seller and Buyer will issue the joint press release attached hereto as Exhibit B.
Section 5.02    Bulk Sales Laws. The parties hereby waive compliance with the provisions of any bulk sales, bulk transfer, or similar Laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to Buyer. Any liabilities arising out of the failure of Seller to comply with the requirements and provisions of any bulk sales, bulk transfer, or similar Laws of any jurisdiction shall be the responsibility of Seller.
Section 5.03    Transfer Taxes. All sales, use, registration, and other such taxes and fees (including any penalties and interest) incurred in connection with this Agreement and the other Transaction Documents, if any, shall be borne and paid by [***] when due. Seller or Buyer, as applicable, shall timely file any tax return or other document with respect to such taxes or fees (and the other Party shall cooperate with respect thereto as necessary). 
ARTICLE VI
INDEMNIFICATION
Section 6.01    Survival. All representations and warranties contained herein and all related rights to indemnification shall survive the Closing for [***] years, except for Seller’s representations and warranties set forth in Section 3.05, which shall survive the Closing for [***] year. All covenants and other agreements contained herein that contemplate performance after Closing shall survive until fully performed or fulfilled, unless waived in writing by both Parties.
Section 6.02    Indemnification by Seller. Subject to the other terms and conditions of this ARTICLE VI, during the Indemnification Period (as defined below) Seller shall indemnify and defend each of Buyer and its Affiliates and their respective representatives (collectively, the “Buyer Indemnitees”) against, and shall hold each of them harmless from and against, any and 
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all losses, damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable attorneys’ fees (collectively, “Losses”), incurred or sustained by, or imposed upon, the Buyer Indemnitees based upon, to the extent arising out of:
(a)    any inaccuracy in or breach of any of the representations or warranties of Seller contained in this Agreement, any other Transaction Document, or any schedule, certificate, or exhibit related thereto, as of the date such representation or warranty was made;
(b)    any breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Seller pursuant to this Agreement, any other Transaction Document, or any schedule, certificate, or exhibit related thereto; and
(c)    any Excluded Liabilities.
Section 6.03    Indemnification by Buyer. Subject to the other terms and conditions of this ARTICLE VI, during the Indemnification Period Buyer shall indemnify and defend each of Seller and its Affiliates and their respective representatives (collectively, the “Seller Indemnitees”) against, and shall hold each of them harmless from and against any and all Losses incurred or sustained by, or imposed upon, the Seller Indemnitees based upon, to the extent arising out of:
(a)    any inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement, any other Transaction Document, or any schedule, certificate, or exhibit related thereto, as of the date such representation or warranty was made;
(b)    any breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Buyer pursuant to this Agreement or any other Transaction Document to which Buyer is a party; or
(c)    any liability based upon or relating to the Purchased Assets existing or arising after the Closing Date.
Section 6.04    Limitations on Liability. To the fullest extent allowable under Law, each Party’s aggregate liability to the other Party pursuant to the indemnification provisions set forth in this ARTICLE VI, shall be limited to [***] (except for Seller’s indemnification for breaches of representations and warranties in Section 3.05, which shall be limited to [***]), and shall terminate on the third anniversary of the Closing Date (except for Seller’s indemnification for breaches of representations and warranties in Section 3.05, which shall terminate on the [***] anniversary of the Closing Date) (the “Indemnification Period”); provided that such limitations shall not apply to indemnification claims based on fraud or intentional misconduct. 
Section 6.05    Indemnification Procedures. Whenever any claim shall arise for indemnification hereunder, the party entitled to indemnification (the “Indemnified Party”) shall promptly provide written notice of such claim to the other party (the “Indemnifying Party”). In connection with any claim giving rise to indemnity hereunder resulting from or arising out of any Action by a Person who is not a party to this Agreement, the Indemnifying Party, at its sole cost and expense and upon written notice to the Indemnified Party, may assume the defense of any such Action with counsel reasonably satisfactory to the Indemnified Party. The Indemnified Party shall be entitled to participate in the defense of any such Action, with its counsel and at its own cost and expense. If the Indemnifying Party does not assume the defense of any such Action, the Indemnified Party may, but shall not be obligated to, defend against such Action in 
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such manner as it may deem appropriate, including settling such Action, after giving notice of it to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate and no action taken by the Indemnified Party in accordance with such defense and settlement shall relieve the Indemnifying Party of its indemnification obligations herein provided with respect to any damages resulting therefrom. The Indemnifying Party shall not settle any Action without the Indemnified Party’s prior written consent and vice versa (which consent shall not be unreasonably withheld or delayed).
Section 6.06    Exclusive Remedy. Except for ARTICLE VII and ARTICLE VIII, the remedies expressly stated in this ARTICLE VI shall be the sole and exclusive remedies of the Parties for liabilities arising out of or in connection with this Agreement.
ARTICLE VII
LICENSE AGREEMENT
Section 7.01    Amendments to License Agreement. Without limiting Seller’s obligations for or Buyer’s rights to the Purchased Assets, the Parties acknowledge and agree that (a) this Agreement will operate as an amendment to the terms and conditions of the License Agreement pursuant to Section 16.5 of the License Agreement and (b) the License Agreement will continue in accordance with its terms with the respect to the Retained Jounce IP, as modified by this Article VII.  
Section 7.02    Consideration. The Parties agree that the Purchase Price includes consideration for the net present value of Buyer’s remaining financial obligations to Seller under the License Agreement (except, for the avoidance of doubt, any payments required pursuant to Sections 7.3.3 or 8.8 of the License Agreement), including without limitation, any potential milestone payments and royalties, which amount has been independently calculated by each Party in good faith, taking into account the risks and likelihood of successfully developing and commercializing Licensed Products, and on an arm’s length basis.
Section 7.03    Additional Amendments. In partial consideration for the Purchase Price, from and after the Closing Date, and notwithstanding anything to the contrary under the License Agreement, (a) the Purchased Assets (i) will constitute the Patents and Know-How of Buyer or its Affiliates, (ii) will no longer be deemed part of Jounce IP or be subject to the terms of the License Agreement, including without limitation, Sections 9.1-9.3 and Article 10, (iii) unless otherwise in the public domain as of the Closing Date, will be deemed solely the Confidential Information of Buyer, and Seller shall not use or disclose any such Confidential Information for any purpose or to anyone without Buyer’s prior written consent, except as required by Applicable Law, with any such disclosure made in accordance with Sections 12.3.1(a) and 12.3.2 of the License Agreement, (b) Buyer will not be responsible for paying any other payments to Seller under the License Agreement, including without limitation, additional milestone payments or royalty payments to Seller (but excluding any payments required pursuant to Sections 7.3.3 or 8.8 of the License Agreement), (c) Seller fully, finally, and completely releases Buyer from, and expressly waives, any and all past, present, or future obligations with respect to the Development, Manufacturing, or Commercialization of Licensed Products under the License Agreement, whether financial (including without limitation record-keeping and reporting obligations and audit rights), diligence (including, for example, Section 3.5 of the License Agreement), or otherwise, and the Seller will no longer have any rights to enforce any of such obligations or its rights with respect thereto under the License Agreement, (d) Buyer fully, finally, and completely releases Seller from, and expressly waives, any and all past, present, or future obligations with respect to the Development, Manufacturing, or Commercialization of Licensed Products under Articles 3, 5, and 6 the License Agreement, and Buyer will no longer have any rights to enforce any of such obligations or its rights with respect thereto under the 
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License Agreement, (e) Article 2 and Section 7.2, Section 9.2, the final sentence of Section 9.3, Section 10.1 and Section 14.4 of the License Agreement are all deleted, and for clarity the Alliance Managers have no further role under the License Agreement, the JSC is disbanded and there will be no Transition Leads, (f) the definition of Change of Control is amended and restated as follows: ““Change of Control” means, with respect to a Party, the occurrence of any of the following events from and after the Execution Date: (a) any Person or group of Persons becomes the beneficial owner (as defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), directly or indirectly, of securities representing more than fifty percent (50%) of the combined voting power of such Party; (b) such Party  consolidates with, or merges with or into another Person pursuant to a cash transaction in which the shareholders of such Party, immediately prior to the transaction, would not, immediately after the transaction, beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, securities representing in the aggregate 50% or more of the combined voting power of the acquiring or resulting entity, (c) such Party combines with, consolidates with or merges with or into another Person pursuant to a “merger of equals” stock transaction in which the shareholders of such Party, immediately prior to the transaction, would, immediately after the transaction, beneficially own (as such terms is defined in Rule 13d-3 under the Exchange Act) [***] of voting securities of the combined or resulting entity as the shareholders of such other Person; or (d) such Party sells or transfers to another Person all or substantially all of its assets.”, (g) Section 9.6.1 of the License Agreement is revised to (i) replace “During the Term” with “During the period commencing on Effective Date of the License Agreement and ending on [***]”, (ii) replace the language “if Jounce is [***]” to “if Jounce [***]”, and (iii) replace the language “of [***]” with “of [***]”, and (h) Seller will no longer have the right to terminate the License Agreement for any reason and will instead only have the right to sue Buyer for damages in the event of any claim that would otherwise give rise to termination.
Section 7.04    Continuation. Without limiting Buyer’s rights to the Purchased Assets or the release and waiver of obligations and rights under the License Agreement pursuant to Section 7.03, the Parties’ rights and obligations with respect to intellectual property and confidentiality matters solely as it relates to Jounce Retained IP under License Agreement Sections 9.1, 9.3 (as revised in Section 7.03), 9.4-9.5 , 10.2-10.9 and Article 12 of the License Agreement will continue in accordance with the terms of the License Agreement, except that Buyer’s exclusive license grants under Article 9 of the License Agreement will be deemed fully paid up and non-royalty bearing from and after the Closing Date. For clarity, (i) the provisions of Section 9.6 (as revised in Section 7.03) will continue, (ii) the License Agreement will otherwise remain in effect and will expire in accordance with Section 15.1 of the License Agreement upon expiration of what would have been the expiration of the Royalty Term for a Licensed Product in a country and (iii) references to “Royalty Term” in the License Agreement are intended to retain the meaning ascribed to that term in the License Agreement notwithstanding that no royalties are payable pursuant to Section 7.02. 
Section 7.05    Release. In partial consideration of the Purchase Price, from and after the Closing Date, Seller, on behalf of itself and its present, former and future Affiliates (whether parents, subsidiaries, or affiliates), and each of its and their respective present, former, and future officers, directors, shareholders, managers, members, employees, agents and successors and assigns and any other person or entity which could now or hereafter assert a claim on their behalf (collectively, “Releasors”), hereby fully, and completely, and finally releases, waives, and forever discharges Buyer, each of its past, former and future Affiliates (whether parents, subsidiaries, or affiliates) and each of their respective former, present, former and future officers, directors, shareholders, managers, members, employees, agents and successors and assigns (collectively, “Releasees”) from and against any and all present, former or future actions, causes of action, suits, losses, liabilities, rights, debts, dues, sums of money, accounts, reckonings, obligations, costs, expenses, liens, bonds, bills, specialties, covenants, controversies, agreements, promises, variances, trespasses, damages, judgments, extents, executions, claims, and demands, 
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of every kind and nature whatsoever, whether now known or unknown, foreseen or unforeseen, matured or unmatured, suspected or unsuspected, in law, admiralty, or equity (collectively, “Claims”), which any of such Releasors ever had, may have had, now have, or could in the future have against any of such Releasees for, upon, or by reason of any matter, cause, or thing whatsoever from the Execution Date of the License Agreement through the Closing Date arising out of or relating to the License Agreement or arising out of or relating to the decision to enter into or this Agreement and the Transaction Documents (collectively, the “Released Claims”) (except, for the avoidance of doubt, with respect to provisions of the License Agreement that remain in effect from and after the Closing Date).
Each Releasor understands that it may later discover Claims or facts that may be different from, or in addition to, those that it or any other Releasor now knows or believes to exist regarding the subject matter of this release, and which, if known at the time of signing this Agreement, may have materially affected this Agreement and Seller’s decision to enter into it and grant the release contained in this Agreement. Nevertheless, the Releasors intend to fully, finally, and forever settle and release all Claims that now exist, may exist, or previously existed, as set out in this release, whether known or unknown, foreseen or unforeseen, or suspected or unsuspected, and the release given herein is and will remain in effect as a complete and final release, notwithstanding the discovery or existence of such additional or different facts. The Releasors expressly, knowingly, and intentionally waive (a) any right or Claim that might arise as a result of such different or additional Claims or facts and (b) any and all rights, benefits, and protections of any state or federal statute or common law principle limiting the scope of a general release. 
The Releasors further agree and hereby covenant that they will not, directly or indirectly, on their own behalf or acting on behalf of or through any other person or entity, initiate or maintain any lawsuit, arbitration, or other proceeding, whether legal or equitable, against any of the Releasees, or any businesses, ventures, corporations, partnerships, limited partnerships, predecessors, successors, assigns, or other entities or organizations in which the Releasees have or will have any involvement as an owner, member, shareholder, manager, officer, director, investor or otherwise, or any managers, principals, directors, officers, employees, governing boards, shareholders, members, affiliates, partners, investors, subsidiaries, predecessors, successors, heirs, assigns, representatives, and agents of the Releasees, arising from or related to the Released Claims.
ARTICLE VIII
MISCELLANEOUS
Section 8.01    Expenses. Except as otherwise specified in this Agreement, all costs and expenses (including investment banking and legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the Party incurring such costs and expenses.
Section 8.02    Notices. All notices, instructions and other communications hereunder or in connection herewith shall be in writing and in English, and shall be: (a) delivered by hand or by overnight courier with tracking capabilities; or (b) mailed postage prepaid by first class, registered, or certified mail, in each case, addressed as set forth below unless changed by notice so given.
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	If to Seller:	Jounce Therapeutics, Inc.
780 Memorial Drive
Cambridge, MA 02139
Attention: Chief Executive Officer

	

with a copy to:
	

Jounce Therapeutics, Inc.
780 Memorial Drive
Cambridge, MA 02139
Attention: Chief Legal Officer

	

If to Buyer:
	

Gilead Sciences, Inc.
333 Lakeside Drive
Foster City, CA 94404
Attention: Alliance Management

	

with a copy to:
	 
Gilead Sciences, Inc.
333 Lakeside Drive
Foster City, CA 94404
Attention: General Counsel

Any such notice will be deemed given on the date received, except any notice received after 5:00 pm (in the time zone of the receiving Party) on a Business Day or received on a non-Busines Day will be deemed to have been received on the next Business Day. A Party may add, delete, or change the person to which notices should be sent at any time upon written notice delivered to the other Party in accordance with this Section 8.02. 
Section 8.03    Interpretation; Headings. Section 16.15 of the License Agreement is hereby incorporated by reference mutatus mutandi.
Section 8.04    Severability. Section 16.1 of the License Agreement is hereby incorporated by reference mutatus mutandi. 
Section 8.05    Entire Agreement. This Agreement, the License Agreement (including its attached schedules), and the other Transaction Documents constitute the sole and entire agreement of the Parties to this Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body of this Agreement and those in the other Transaction Documents, the statements in the body of this Agreement will control.
Section 8.06    Successors and Assigns; Beneficiaries. Section 16.4 of the License Agreement is hereby incorporated by reference mutatus mutandi. Except with respect to the Releasees, each of whom are third party beneficiaries of the release set forth in Section 7.05, the provisions of this Agreement are for the sole benefit of the Parties and their successors and assigns, and they shall not be construed as conferring any rights or benefits to any other third party (including any third party beneficiary rights). 
Section 8.07    Amendment and Modification; Waiver. This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in 
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writing and signed by the party so waiving. No failure to exercise, or delay in exercising, any right or remedy arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy.
Section 8.08    Further Assurances. Following the Closing, each Party shall, and shall cause their respective affiliates to, execute and deliver such additional documents, instruments, conveyances, and assurances and take such further actions as may be reasonably requested to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement and the other Transaction Documents.
Section 8.09    Dispute Resolution. Section 16.8 of the License Agreement is hereby incorporated by reference mutatis mutandi.
Section 8.10    Governing Law; Waiver of Jury Trial. 
(a)    This Agreement shall be governed by, enforced, and construed in accordance with the laws of the State of New York without reference to any choice or conflict of laws and excluding the United Nations Conventions on Contracts for the International Sales of Goods. 
(b)    WAIVER OF JURY TRIAL. EXCEPT AS LIMITED BY APPLICABLE LAW, EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED IN CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF ANY PARTY HERETO IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE, AND ENFORCEMENT HEREOF. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY, AND BARGAINED-FOR AGREEMENT BETWEEN THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY. 
Section 8.11    Relationship of the Parties. Section 16.9 of the License Agreement is hereby incorporated by reference mutatis mutandi.
Section 8.12    Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. Section 16.13 of the License Agreement is hereby incorporated by reference mutatis mutandi.
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Agreement Date by their duly authorized officers.
						
		

Jounce Therapeutics, Inc.

By: /s/ Richard Murray, Ph.D.
Name:  Richard Murray, Ph.D.
Title:  Chief Executive Officer

		
		Gilead Sciences, Inc.

By: /s/ Andrew Dickinson
Name:  Andrew Dickinson
Title:  Chief Financial Officer

 

EXHIBIT A
INTELLECTUAL PROPERTY ASSIGNMENT AGREEMENT

[***]  

 

EXHIBIT B
PRESS RELEASE
[***]

 

SCHEDULE 1
PURCHASED ASSETS
[***]

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