Document:

Exhibit 10.3

  

SECURITY AGREEMENT

 

THIS SECURITY AGREEMENT (this “Agreement”)
is entered into as of January 18, 2022, by and between METUCHEN PHARMACEUTICALS LLC, a Delaware limited liability company (“Grantor”),
and VIVUS LLC, a Delaware limited liability company (“Secured Party”).

 

WHEREAS, reference is made
to that certain Settlement Agreement dated the date hereof by and among Grantor and Secured Party (as the same may be amended, restated,
supplemented, or otherwise modified from time to time, the “Settlement Agreement”), pursuant to which, among other
things, Grantor has acknowledged that it is indebted to Secured Party in the amount set forth therein.

 

WHEREAS, reference is made
to the Settlement Documents (as defined in the Settlement Agreement).

 

WHEREAS, as part of the Settlement
Agreement, Grantor agreed to execute and deliver this Agreement to secure its obligations under the Settlement Documents.

 

WHEREAS, Secured Party would
not have entered into the Settlement Agreement without, among other things, Grantor’s execution and delivery of this Agreement.

 

NOW, THEREFORE, the parties
hereto agree as follows:

 

1.             DEFINITIONS.

 

		(a)	All capitalized terms used, but not otherwise defined, herein shall have the meanings given to such terms
in the Settlement Agreement.

 

		(b)	Unless otherwise defined herein, terms used herein which are defined in the Code shall have the meanings
given such terms in the Code.

 

		(c)	All terms defined in the recitals to this Agreement have the meanings given such terms in the recitals.
The recitals to this Agreement are incorporated herein by this reference.

 

		(d)	As used herein, the following terms have the following meanings:

 

“Approved Location” means,
with respect to any Collateral, (a) any location owned or leased by Grantor; (b) any Person providing third-party warehousing or logistics
services to Grantor so long as such Person has executed and delivered to Secured Party a written agreement in form and substance satisfactory
to Secured Party with respect to the Collateral in such Person’s possession or control; (c) any location of a customer to which
any of such Collateral has been consigned by Grantor, so long as such consignment has been approved in writing by Secured Party; (d) any
location of any Person acting in the ordinary course of business as an inventory processor with respect to the Collateral pursuant to
a written agreement between Grantor and such Person, so long as such Person has executed and delivered to Secured Party an inventory processor
agreement or similar instrument in form and substance satisfactory to Secured Party; and (e) any location at which any of such Collateral
is located while in transit from one of the foregoing locations to another of the foregoing locations.

 

    

     

    

 

“Change of Control” means the
occurrence of (a) a third party who owns or has a license or other right, either directly or through its Affiliates, to any product that
operates as a phosphodiesterase type-5 inhibitor other than the Product (i.e., a “Competing Product” as defined in the License
Agreement) either (i) becoming an Affiliate of Grantor or (ii) becoming Grantor’s successor under this Agreement; (b) for whatever
reason, Petros ceases to own and control (with full power to vote), directly or indirectly, all classes of equity interests issued from
time to time by Grantor; or (c) any person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act
(as amended from time to time), other than JCP III SM AIV, L.P., METP Holdings, LLC and their
existing subsidiaries (collectively, “Juggernaut”), shall have acquired beneficial ownership of 35% or more on a fully
diluted basis of the voting equity interests issued by Petros.

 

“Code” means the Uniform Commercial
Code as in effect in the State of New York.

 

“Lien” means any mortgage,
pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other
security interest or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention
agreement, any easement, right of way or other encumbrance on title to real property.

 

“Obligations” means all of
Grantor’s obligations and liabilities of every kind and character to Secured Party under, pursuant to, or in connection with the
Settlement Documents, whether now existing or hereafter arising, including, without limitation, all amounts now owed or hereafter from
time to time owed under the terms of this Agreement or the other Settlement Documents, or arising out of the transactions described herein
or therein, including, without limitation, principal, interest, fees (including, without limitation, reasonable attorneys’ fees),
charges, costs, the costs of preparing Collateral for sale (including, without limitation, the costs of storing and warehousing, transporting,
producing, manufacturing, and selling STENDRA Product), expenses, and all amounts due or from time to time becoming due under the indemnification
and reimbursement provisions of this Agreement and the other Settlement Documents, together, in each of the foregoing cases in this definition,
with all interest accruing thereon, including any interest on pre-petition Obligations accruing after bankruptcy (whether or not allowable
in such bankruptcy), and whether any of the foregoing amounts are now due or from time to time hereafter become due, are direct or indirect,
or are certain or contingent, and whether such amounts due are from time to time reduced or entirely extinguished and thereafter re-incurred.

 

“Permitted Liens” means (a)
the Liens granted by Grantor to Secured Party pursuant to this Agreement or any other Settlement Document; (b) any Liens of warehousemen,
inventory processors, and other third-parties arising in the ordinary course of business by operation of law (and not by contract) and
the obligations or liabilities secured thereby are not past due (unless the subject of a bona fide dispute); and (c) Liens arising as
a matter of law which secure the payment of taxes which are not yet due and payable (or are the subject of a bona fide dispute with the
applicable taxing authority which is being diligently pursued).

 

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“Person” means any natural
person, corporation, limited liability company, trust, joint venture, association, company, partnership, governmental authority, or other
entity or authority.

 

“Specified License Agreement”
means that certain License and Commercialization Agreement dated as of September 30, 2016, by and between Grantor and Secured Party, as
amended by that certain Amendment No. 1 to License and Commercialization Agreement dated as of the date hereof and as the same may be
further amended, restated, supplemented, or otherwise modified from time to time, and all of Grantor’s rights therein.

 

“STENDRA API” means the active
pharmaceutical ingredient in STENDRA based products, in whatever form it exists, whether solid, liquid, or otherwise, and however packaged.

 

“STENDRA Associated Components”
means any and all materials (including, without limitation, inert ingredients, mixtures, or compounds) which have been combined, mixed,
or commingled in any way with any STENDRA API.

 

“STENDRA Packaging” means any
bottles, cases, boxes, sleeves, drums, blister wrap, or other containers in which any other STENDRA Product is, or is intended to be,
stored or packaged (whether for manufacturing, transportation, storage, or sale purposes), and all labeling, marketing materials, and
supplies of any kind or character bearing the name or mark STENDRA.

 

“STENDRA Product” means any
and all of the following, whether now existing or hereafter arising or existing: (a) all STENDRA API; (b) all STENDRA Tablets; (c) all
STENDRA Associated Components; and (d) all STENDRA Packaging.

 

“STENDRA Tablets” means all
pills, tablets, and other dose configurations which contain any amount of STENDRA API, as such items exist in their completely manufactured
state or as work in process.

 

2.             GRANT OF SECURITY INTEREST. Grantor grants to Secured Party a continuing security interest (the “Security Interest”)
in all of the following property of Grantor or in which Grantor has rights, whether presently existing or acquired after the date of this
Agreement (collectively, together with all Proceeds, the “Collateral”):

 

(a)            all
STENDRA Product;

 

(b)           the
Specified License Agreement; and

 

all books and records relating to the foregoing
and all proceeds (as such term is defined in the Code) and products, whether tangible or intangible of any of the above property, all
proceeds of insurance covering or relating to any or all of the above property, and all rebates and returns relating to any of the above
property (all such proceeds, collectively, “Proceeds”).

 

3.             OBLIGATIONS SECURED. The obligations secured by the Security Interest are the full and final payment in cash and performance of
all of the Obligations.

 

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4.             AUTHORIZATION TO FILE FINANCING STATEMENTS. Grantor authorizes Secured Party to file financing statements describing the Collateral
to perfect Secured Party’s Security Interest in the Collateral. All financing statements filed before the date of this Agreement
to perfect the Security Interest were authorized by Grantor and are ratified.

 

5.             REPRESENTATIONS AND WARRANTIES OF GRANTOR. Grantor represents and warrants to Secured Party that:

 

(a)            Grantor
(i) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) has all requisite
power and authority to (A) own or lease its assets and carry on its business and (B) execute, deliver and perform its obligations under
the Settlement Documents, (iii) is duly qualified and in good standing under the laws of each jurisdiction where its ownership, lease,
or operation of properties or the conduct of its business requires such qualification, (iv) is in material compliance with all laws, orders,
writs, injunctions, and orders, and (v) has all requisite governmental licenses, authorizations, consents, and approvals to operate its
business as currently conducted.

 

(b)           Grantor’s
execution, delivery, and performance of the Settlement Documents, and the consummation of the transactions contemplated therein, are within
Grantor’s limited liability company powers, have been duly authorized by all necessary organizational action, and do not and will
not (i) contravene the terms of any of Grantor’s organizational or charter documents, (ii) conflict with or result in any breach
or contravention of, or the creation of any Lien under (other than Permitted Liens), or require any payment to be made under (A) any document,
instrument, or agreement to which Grantor is a party or affecting Grantor’s properties or any of its subsidiaries or (B) any material
order, injunction, writ, or decree of any governmental authority or any arbitral award to which Grantor or its property is subject; or
(iii) violate any law in any material respect.

 

(c)            No
material approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any governmental authority or
any other Person is necessary or required in connection with (i) the execution, delivery or performance by, or enforcement against, Grantor
of this Agreement or any other Settlement Document, or for the consummation of the transactions contemplated herein or therein, (ii) the
grant by Grantor of the security interests granted by it pursuant to this Agreement and the other Settlement Documents, (iii) the perfection
or maintenance of the Lien created under this Agreement or any of the other Settlement Documents (including the priority thereof), or
(iv) the exercise by Secured Party of its rights under the Settlement Documents or the remedies in respect of the Collateral pursuant
to this Agreement and the other Settlement Documents, except for (A) filings necessary to perfect the security interest in the Collateral
granted by Grantor in favor of Secured Party and (B) the approvals, consents, exemptions, authorizations, actions, notices, and filings
which have been duly obtained, taken, given or made and are in full force and effect.

 

(d)           This
Agreement and each other Settlement Document has been duly executed and delivered by Grantor. This Agreement and each other Settlement
Document constitutes a legal, valid, and binding obligation of Grantor, enforceable against Grantor in accordance with its terms, except
as such enforceability may be limited by bankruptcy and insolvency laws and general principles of equity.

 

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(e)            Grantor’s
legal name is exactly as set forth on the first page of this Agreement. Grantor’s chief executive office and principal place of
business are accurately set forth on Schedule A, attached hereto and made a part hereof. All of Grantor’s organizational
documents or agreements delivered to Secured Party are complete and accurate in every respect.

 

(f)            Grantor has legal title to and
has possession or control of the Collateral. None of Grantor’s Affiliates owns, or has any rights in and to, or is in possession
of any STENDRA Product.

 

(g)           Grantor
has the exclusive right to grant a security interest in the Collateral.

 

(h)           All Collateral is genuine, free from Liens, adverse
claims, setoffs, default, prepayment, defenses and conditions precedent of any kind or character, except for Permitted Liens.

 

(i)             No
financing statement covering any of the Collateral, and naming any secured party other than Secured Party and holders of Permitted Liens,
is on file in any public office.

 

(j)             None
of the Collateral is stored at any location other than an Approved Location.

 

6.             COVENANTS OF GRANTOR.

 

(a)            Grantor
covenants and agrees:

 

(i)            to permit Secured Party to exercise its rights, remedies, and powers under this Agreement and the other Settlement Documents and
under law;

 

(ii)           not to change its name, or, as applicable, its chief executive office, its principal residence or the jurisdiction in which it
is organized without giving Secured Party 30 days’ prior written notice;

 

(iii)          to keep the
Collateral only at an Approved Location;

 

(iv)          to provide information
concerning the Collateral (including, without limitation, its location, quantities, its position in the manufacturing process, the name
and address of each Person in possession of any Collateral and the nature of such possession, and otherwise) and sales of the Collateral
to Secured Party promptly upon Secured Party’s request from time to time and in such form and of such substance as Secured Party
may request from time to time; and

 

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(iv)          to
cooperate with Secured Party in perfecting all security interests granted by this Agreement and in obtaining such agreements from third
parties as Secured Party deems necessary, proper or convenient in connection with the preservation, perfection or enforcement of any of
its rights with regard to Collateral or access to Collateral.

 

(b)           Grantor
agrees with regard to the Collateral, unless Secured Party agrees otherwise in writing:

 

(i)            not to use
any Collateral for any unlawful purpose or in any way that would void any insurance required to be carried on such Collateral;

 

(ii)           to
insure the Collateral, with Secured Party named as lender’s loss payee and additional insured, in form, substance and amounts, under
agreements, against risks and liabilities, and with insurance companies satisfactory to Secured Party and to provide to Secured Party,
promptly upon Secured Party’s request therefor from time to time, certificates of insurance and copies of applicable policies and
related endorsements demonstrating Grantor’s compliance with this section;

 

(iii)          to keep, in accordance with GAAP, complete and accurate records regarding all Collateral, and to permit Secured Party to inspect
the same and make copies thereof at any reasonable time;

 

(iv)          not to sell, pledge or dispose of, nor permit the transfer by operation of law of, any of the Collateral or any interest in the
Collateral, except sales of Inventory to buyers in the ordinary course of Grantor’s business at fair market value;

 

(v)           not to permit any Lien on the Collateral, including without limitation, Liens arising from the storage of Inventory, except for
Permitted Liens;

 

(xii)          if
and to the extent any of the Collateral is subject to a Document, to provide all originals of such Document to Secured Party promptly
upon Secured Party’s request, together with any indorsement thereof requested by Secured Party;

 

(xiii)         to provide any service and
do any other acts which may be necessary to maintain, preserve and protect all Collateral and, as appropriate and applicable, to keep
all Collateral in good and saleable condition, to deal with the Collateral in accordance with the standards and practices adhered to generally
by users and manufacturers of like property, and to keep all Collateral free and clear of all defenses, rights of offset and counterclaims;
and

 

(xiv)         not
to consign any of Grantor’s Inventory unless such consignment has been approved in writing by Secured Party or sell any of its Inventory
on bill and hold, sale or return, sale on approval, or other conditional terms of sale, unless such arrangements have been approved in
writing by Secured Party.

 

7.             POWERS OF SECURED PARTY. Grantor appoints Secured Party its attorney in fact to perform any of the following powers, which are
coupled with an interest, are irrevocable until termination of this Agreement and may be exercised from time to time by Secured Party’s
officers and employees, or any of them, whether or not an Event of Default has occurred:

 

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(a)           to perform any
obligation of Grantor to Secured Party hereunder in Grantor’s name or otherwise;

 

(b)           to give notice
to others of Secured Party’s rights in the Collateral, to enforce or forebear from enforcing the same and to make extension or modification
agreements;

 

(c)           to release Persons
liable on Collateral and to give receipts and compromise disputes;

 

(d)           to release or
substitute security;

 

(e)           to resort to
security in any order;

 

(f)            to prepare, execute,
file, record or deliver notes, assignments, schedules, designation statements, initial financing statements and amendments, continuation
statements, termination statements, statements of assignment, applications for registration or like papers to perfect, preserve or release
Secured Party’s interest in the Collateral;

 

(g)           to
verify facts concerning the Collateral by inquiry of obligors thereon, or otherwise, in its own name or a fictitious name;

 

(h)           to
endorse, collect, deliver and receive payment under instruments for the payment of money constituting or relating to Collateral;

 

(i)            to
prepare, adjust, execute, deliver and receive payment under insurance claims, and to collect and receive payment of and endorse any instrument
in payment of loss or returned premiums or any other insurance refund or return, and to apply such amounts received by Secured Party,
at Secured Party’s sole option, toward repayment of the Obligations or replacement of the Collateral;

 

(j)            to
exercise all rights, powers and remedies which Grantor would have, but for this Agreement, with respect to all Collateral;

 

(k)           to
enter onto Grantor’s premises to inspect the Collateral; and

 

(l)            to do all acts
and things and execute all documents in the name of Grantor or otherwise, deemed by Secured Party as necessary, proper and convenient
in connection with the preservation, perfection, priority or enforcement of Secured Party’s rights.

 

8.             PAYMENT OF PREMIUMS, TAXES, CHARGES, LIENS AND ASSESSMENTS. Grantor agrees to pay, prior to delinquency, all insurance premiums,
taxes, charges, liens and assessments against the Collateral, and upon the failure of Grantor to do so, Secured Party at its option may
pay any of them and shall be the sole judge of the legality or validity and the amount necessary to discharge the same. Any such payments
made by Secured Party shall be a part of the Obligations and secured by the Collateral and shall be due and payable immediately upon demand,
together with interest at a rate equivalent to the then applicable rate per annum of interest in the Note.

 

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 9.             EVENTS OF DEFAULT. Each of the following shall constitute an “Event of Default”:

 

(a)           Grantor shall fail to pay when due any principal of or interest on the Note, any fee or other amounts due to Secured Party hereunder
or any other Settlement Document, or any other Obligations; or

 

(b)           Grantor shall default on the performance of any agreement, covenant, or obligation contained in this Agreement or any other Settlement
Document;

 

(c)           Any representation or warranty made by Grantor in this Agreement or any other Settlement Document, or in any certificate or report
furnished in connection with this Agreement or any other Settlement Document, shall prove to have been untrue or incorrect in any material
respect when made; or

 

(d)           Grantor or any other Group Member shall fail to make any payment in respect of outstanding indebtedness (other than the Obligations)
having an aggregate outstanding principal amount in excess of $25,000 or more when due after the expiration of any applicable grace period,
or any event or condition shall occur which results in the acceleration of the maturity of such indebtedness (including, without limitation,
any required mandatory prepayment or “put” of such indebtedness to any such Person) or enables (or, with the giving of notice
or passing of time or both, would enable) the holders of such indebtedness or a commitment related to such indebtedness (or any Person
acting on such holders’ behalf) to accelerate the maturity thereof or terminate any such commitment before its normal expiration
(including, without limitation, any required mandatory prepayment or “put” of such indebtedness to such Person); or

 

(e)           Grantor or any other Group Member shall (i) voluntarily dissolve, liquidate, or terminate operations or apply for or consent to
the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator or of all or of a substantial part of
its assets, (ii) admit in writing its inability, or be generally unable, to pay its debts as the debts become due, (iii) make a general
assignment for the benefit of its creditors, (iv) commence a voluntary case under the any insolvency or bankruptcy law (as now or hereafter
in effect), (v) file a petition seeking to take advantage of any other law relating to bankruptcy, insolvency, reorganization, winding-up,
or composition, or adjustment of debts, (vi) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition
filed against it in an involuntary case under any insolvency or bankruptcy law, or (vii) take any limited liability action for the purpose
of effecting any of the foregoing; or

 

(f)            An involuntary petition or complaint shall be filed against Grantor or any other Group Member seeking bankruptcy relief or reorganization
or the appointment of a receiver, custodian, trustee, intervenor, or liquidator of Grantor or any other Group Member, or all or substantially
all of its assets, and such petition or complaint shall not have been dismissed within 30 days after the filing thereof; or an order,
order for relief, judgment, or decree shall be entered by any competent governmental entity approving or ordering any of the foregoing
actions; or

 

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(g)           A judgment of more than $25,000 in excess of insurance coverage therefor (as provided by an underwriter acceptable to Secured Party,
where such underwriter has agreed in writing to pay such judgment, and for which the deductible does not exceed $10,000) shall be rendered
against Grantor or any other Group Member and shall remain undischarged, undismissed, and unstayed for more than 10 days or there shall
occur any levy upon, or attachment, garnishment, or other seizure of, any portion of the Collateral or other assets of Grantor or any
other Group Member in excess of $25,000 by reason of the issuance of any tax levy, judicial attachment, garnishment, or levy of execution;
or

 

(h)           There occurs a loss, theft, damage, or destruction of any material portion of the Collateral for which there is either no insurance
coverage or for which, in Secured Party’s reasonable opinion, there is insufficient insurance coverage; or

 

(i)            There shall occur any change in the condition (financial or otherwise) of Grantor or any other Group Member which, in Secured Party’s
reasonable opinion, could have a Material Adverse Effect; or

 

(j)            A Change of Control occurs; or

 

(k)           Grantor or any other Person shall repudiate or revoke, or attempt to repudiate or revoke, its obligations (whether monetary or
otherwise) under this Agreement or any other Settlement Document, whether in whole or in part.

 

 

10.           REMEDIES. Upon the occurrence and during the continuation of any Event of Default, Secured Party shall have the right to declare
immediately due and payable all or any Obligations secured by this Agreement; provided, however, that all Obligations shall immediately
become due and payable, automatically and without notice, upon the occurrence of an Event of Default under Section 9(e) or Section 9(f).
Secured Party shall have all other rights, powers, privileges and remedies granted to a secured party upon default under the Code or otherwise
provided by law, including without limitation, the right to:

 

(a)            contact
all Persons obligated to Grantor on any Collateral and to instruct such Persons to deliver all Collateral directly to Secured Party;

 

(b)           contact
any Person in possession of any Collateral and provide instructions to such Persons with respect to the disposition of such Collateral;

 

(c)           manufacture or
complete the manufacture of STENDRA Product, and to hire or engage third parties to do the same for and on behalf of Secured Party, and
to sell, lease, license or otherwise dispose of any or all Collateral;

 

(d)           without notice
to or consent by Grantor, and without the obligation to pay rent or other compensation, to take exclusive possession of all locations
where Grantor conducts its business or has any rights of possession and use the locations to store, process, manufacture, sell, use and
liquidate or otherwise dispose of Collateral;

 

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(e)           without regard
to the occurrence of waste or the adequacy of security, apply for the appointment of a receiver for Grantor or for the assets of Grantor
and Grantor waives any objection to such appointment or to the right to have a bond or security posted by Secured Party. Grantor hereby
waives any objection or defense to the appointment of any such receiver and any right that Grantor has or may have to seek the posting
of a bond or other security by Secured Party.

 

Grantor acknowledges and agrees that the nature
of Collateral is such that only a limited market may exist for the disposition of some or all of the Collateral, that Secured Party may
be unable to dispose of the Collateral to a third party in a commercially reasonable manner; and that, in such cases, it is not commercially
unreasonable for the Secured Party to commence the manufacture and sale of STENDRA Product over an extended period (even a period of years).

 

While an Event of Default exists:

 

(1)           Grantor will
not dispose of any Collateral except on terms approved by Secured Party;

 

(2)           At Secured
Party’s request, Grantor will, at its sole cost and expense and subject to applicable law, assemble and deliver all Collateral,
and books and records pertaining thereto, to Secured Party at a place designated by Secured Party; and

 

(3)           Secured Party
may, without notice to Grantor, enter onto Grantor’s premises and take possession of the Collateral.

 

11.           INDEMNIFICATION. In addition to all other Obligations, the obligations and liabilities described in this section shall constitute
Obligations and shall be in addition to, and cumulative of, any other indemnification provisions set forth in any other Settlement Document.
Grantor agrees to defend, protect, indemnify, and hold harmless Secured Party and its Affiliates and their respective officers, directors,
members, managers, employees, attorneys, consultants, and agents from and against any and all losses, damages, liabilities, obligations,
penalties, fines, fees, costs, and expenses (including, without limitation, attorneys’ and paralegals’ fees, costs and expenses,
and fees, costs and expenses for investigations and experts) incurred by such indemnitees, whether before or from and after the date hereof,
as a result of or arising from or relating to (a) any suit, investigation, action, or proceeding by any Person, whether threatened or
initiated, asserting a claim for any legal or equitable remedy against any Person under any statute, regulation, or common law principle,
arising from or in connection with Secured Party’s execution and delivery of this Agreement or any other Settlement Document; (b)
Secured Party’s preservation, administration, and enforcement of its rights under the Settlement Documents and applicable law, including,
without limitation, (i) all fees, costs of collection, attorneys’ fees and expenses of, or advances by, Secured Party which Secured
Party pays or incurs (A) in discharge of obligations of Grantor, (B) to inspect, repossess, remove, transport, deliver, protect, store,
preserve, complete, collect, store, sell or otherwise dispose of any Collateral, or (C) in connection with the appointment and administration
of any receiver and (ii) the administration of and actions relating to any Collateral, this Agreement or the other Settlement Documents
and the transactions contemplated hereby and thereby, including any actions taken to perfect or maintain priority of Secured Party’s
Liens on any Collateral, to maintain any insurance required hereunder or to verify Collateral; and (c) the reasonable fees and disbursements
of counsel for Secured Party in connection therewith, whether any suit is brought or not and whether incurred at trial or on appeal; (d)
any civil penalty or fine assessed by and governmental authority against Secured Party and all reasonable costs and expense (including,
without limitation, reasonable attorneys’ fees) incurred in connection with defense thereof by Secured Party, as a result of Secured
Party’s entering into this Agreement or the other Settlement Documents, the acceptance of payments due under the Note or any other
Settlement Documents, or the acceptance of any Collateral; (e) any matter relating to the transactions contemplated by this Agreement
or the other Settlement Documents or by any other document executed in connection with the transactions contemplated hereby or thereby,
other than for such loss, damage, liability, obligation, penalty, fee, cost or expense arising from such indemnitee’s gross negligence
or willful misconduct; (f) any liability for payment of any state documentary stamp taxes, intangible taxes, or similar taxes (including
interest or penalties, if any) which may now or hereafter be determined to be payable in respect to the execution, delivery, or recording
of any Settlement Document, whether originally thought to be due or not, and regardless of any mistake of fact or law on the part of Secured
Party (or its counsel) or Grantor with respect to the applicability of such tax; and (g) any payment made by Secured Party with respect
to any taxes or other amount payable by Grantor required to be paid by the terms of this Agreement or any other Settlement Document and
which may be reasonably necessary to protect or preserve any Collateral or Grantor’s or Secured Party’s interests therein.
Grantor’s obligation for indemnification and reimbursement for all of the foregoing losses, damages, liabilities, obligations, penalties,
fees, costs, and expenses of Secured Party shall be part of the Obligations, shall be secured by the Collateral, shall be due and payable
by Grantor ON DEMAND, and shall survive termination of this Agreement.

 

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12.           CUMULATIVE RIGHTS. All rights, powers, privileges and remedies of Secured Party shall be cumulative. No delay, failure or discontinuance
of Secured Party in exercising any right, power, privilege or remedy hereunder shall affect or operate as a waiver of such right, power,
privilege or remedy; nor shall any single or partial exercise of any such right, power, privilege or remedy preclude, waive or otherwise
affect any other or further exercise or the exercise of any other right, power, privilege or remedy.

 

13.           WAIVERS AND CONSENTS OF SECURED PARTY. Any waiver, permit, consent or approval of any kind by Secured Party of any default, or
any such waiver of any provisions or conditions, must be in writing and shall be effective only to the extent set forth in writing.

 

14.           DISPOSITION OF COLLATERAL AND PROCEEDS; TRANSFER OF INDEBTEDNESS. In disposing of Collateral, Secured Party may disclaim all warranties
of title, possession, quiet enjoyment and the like. Any proceeds of any disposition of any Collateral, may be applied by Secured Party
to the payment of expenses incurred by Secured Party, including reasonable attorneys’ fees, and the balance of such proceeds may
be applied by Secured Party toward the payment of the Obligations in such order of application as Secured Party may from time to time
elect. Upon the transfer of all or any part of the Obligations, Secured Party may transfer all or any part of the Collateral and shall
be fully discharged from all liability and responsibility with respect to such transferred Collateral, and the transferee shall be vested
with all rights and powers of Secured Party hereunder; but with respect to any Collateral not so transferred, Secured Party shall retain
all rights, powers, privileges and remedies. It is agreed that public or private sales or other dispositions, for cash or on credit, to
a wholesaler or retailer or investor, or user of property of the types subject to this Agreement, or public auctions, are all commercially
reasonable since differences in the prices generally realized in the different kinds of dispositions are ordinarily offset by the differences
in the costs and credit risks of such dispositions. Grantor agrees that, to the extent notice of sale shall be required by law, at least
10 days’ notice to Grantor of the time and place of any public sale or the time after which any private sale is to be made shall
constitute reasonable notification and such notice shall constitute a reasonable “authenticated notification of disposition”
within the meaning of Section 9-611 of the Code. Secured Party shall not be obligated to make any sale of Collateral regardless of notice
of sale having been given. Secured Party may adjourn any public or private sale from time to time, and such sale may be made at the time
and place to which it was so adjourned. Grantor agrees that the internet shall constitute a “place” for purposes of Section
9-610(b) of the Code. Grantor agrees that any sale of Collateral to a licensor pursuant to the terms of a license agreement between such
licensor and Grantor is sufficient to constitute a commercially reasonable sale (including as to method, terms, manner, and time) within
the meaning of Section 9-610 of the Code. Grantor grants to Secured Party a non-exclusive, worldwide and royalty-free license to use or
otherwise exploit all intellectual property rights of Grantor for the purpose of: (a) completing the manufacture of any in-process materials
following any Event of Default so that such materials become saleable Inventory, all in accordance with the same quality standards previously
adopted by Grantor for its own manufacturing; and (b) selling, leasing or otherwise disposing of any or all Collateral following
any Event of Default.

 

    11

     

    

 

15.           STATUTE OF LIMITATIONS. Until all Obligations shall have been fully and finally paid in cash and performed, the power of sale or
other disposition and all other rights, powers, privileges, and remedies granted to Secured Party shall continue to exist and may be exercised
by Secured Party at any time and from time to time irrespective of the fact that the Obligations or any part thereof may have become barred
by any statute of limitations or that the personal liability of Grantor may have ceased, unless such liability shall have ceased due to
the payment in full in cash of all of the Obligations.

 

16.           WAIVERS OF GRANTOR. Grantor waives any right to require Secured Party to (a) proceed against Grantor or any other Person, (b) marshal
assets or proceed against or exhaust any security from Grantor or any other Person, (c) perform any obligation of Grantor with respect
to any Collateral; and (d) make any presentment or demand, or give any notice of nonpayment or nonperformance, protest, notice of protest
or notice of dishonor hereunder or in connection with any Collateral or Proceeds.

 

17.           FURTHER ASSURANCES. At any time upon the request of Secured Party, Grantor will execute or deliver to Secured Party any and all
financing statements, fixture filings, security agreements, assignments, endorsements, and all other documents (the “Additional
Documents”) that Secured Party may request and in form and substance satisfactory to Secured Party, to create, perfect, and
continue perfection or to better perfect Secured Party’s Liens in the Collateral (whether now owned or subsequently arising of acquired,
tangible or intangible, real or personal), and in order to fully consummate all of the transactions contemplated under this Agreement
and under the other Settlement Documents. If Grantor refuses or fails to execute or deliver any requested Additional Documents, Grantor
authorizes Secured Party to execute such Additional Documents in Grantor’s name and authorizes Secured Party to file such executed
Additional Documents in any appropriate filing office.

 

    12

     

    

 

18.           NOTICES. Any notice or other communication hereunder to any party hereto or thereto shall be given in accordance with Section 18
of the Settlement Agreement, the provisions of which (as the same may be amended, restated, supplemented, or otherwise modified from time
to time) are incorporated herein, mutatis mutandis.

 

19.           COSTS, EXPENSES AND ATTORNEYS’ FEES. Grantor shall pay to Secured Party immediately upon demand the full amount of all payments,
advances, charges, costs and expenses, including reasonable attorneys’ fees, expended or incurred by Secured Party in connection
with or related to this Agreement. Further, Grantor indemnifies Secured Party against all losses,
claims, demands, liabilities, and expenses of every kind caused by property subject to this Agreement.

 

20.           SUCCESSORS; ASSIGNS; AMENDMENT. This Agreement will be binding upon and inure to the benefit of the heirs, executors, administrators,
legal representatives, successors and assigns of the parties; provided that Grantor may not assign or transfer its interests, rights,
or obligations under this Agreement without Secured Party’s prior written consent. Secured Party may sell, assign, transfer, negotiate,
or grant participations in all or any part of, or any interest in, Secured Party’s rights and benefits under this Agreement and
the other Settlement Documents. This Agreement may be amended or modified only in writing signed by Secured Party and Grantor.

 

21.           SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall be held to be prohibited by or invalid under applicable law,
such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision
or any remaining provisions of this Agreement (and, in any such case, this Agreement shall be deemed amended to provide the parties hereto
the benefit of their bargain as expressed herein to the maximum extent possible).

 

22.           GOVERNING LAW. Resolution of all disputes arising out of or related to this Agreement or the validity, construction, interpretation,
enforcement, breach, performance, application or termination of this Agreement and any remedies relating thereto, shall be governed by
and construed under the substantive laws of the State of New York, excluding any conflicts or choice of law rule or principle that might
otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.

 

23.           JURISDICTION; VENUE; CONSENT TO SERVICE OF PROCESS; AND WAIVER OF JURY TRIAL. THE PROVISIONS OF SECTIONS 14(b), 14(c), 14(d), AND
14(e) OF THE SETTLEMENT AGREEMENT ARE INCORPORATED INTO THIS AGREEMENT, MUTATIS MUTANDIS.

 

[Continued on following page.]

 

    13

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed as of the day and year first above written.

 

	 	GRANTOR:
	 	 
	 	METUCHEN PHARMACEUTICALS LLC
	 	 
	 	 
	 	By:	 /s/ Fady Boctor            
	 	Name: Fady Boctor
	 	Title: Authorized Person

 

    

     

    

 

	 	SECURED PARTY:
	 	 
	 	VIVUS LLC
	 	 
	 	 
	 	By:	 /s/ John Amos            
	 	Name: John Amos
	 	Title: Chief Executive Officer

 

    

     

    

 

SCHEDULE A

 

CHIEF EXECUTIVE OFFICE AND PRINCIPAL PLACE OF BUSINESS

 

200 Route 9 North

Suite 500

Manalapan, NJ 07726Exhibit 10.4

 

PLEASE NOTE: CERTAIN IDENTIFIED INFORMATION
HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

  

AMENDMENT No. 1 TO

LICENSE AND COMMERCIALIZATION AGREEMENT

 

This Amendment No. 1
(this “Amendment”) to the License and Commercialization Agreement dated as of September 30, 2016, is hereby entered
into and effective as of January 18, 2022 (the “Amendment Effective Date”) by and between VIVUS LLC, a Delaware
limited liability company, (“VIVUS”), and Metuchen Pharmaceuticals LLC, a Delaware limited liability company (“Metuchen”).
VIVUS and Metuchen are sometimes referred to in this Amendment collectively as the “Parties” and individually as a
 “Party”.

 

WHEREAS,
VIVUS and Metuchen entered into the License and Commercialization Agreement dated September 30, 2016 (as amended, restated,
amended and restated, supplemental or otherwise modified, the “License Agreement”), pursuant to which, among other
things, in Section 2.1 of the License Agreement VIVUS granted to Metuchen an exclusive, royalty-bearing license to “(i) to
use, distribute, import, Promote, market, sell, offer for sale, and otherwise Commercialize Products in the Field in the Licensee Territory;
(ii) make and have made Products in the Manufacturing Territory, where such Product is solely for use or sale in the Field in the
Licensee Territory (subject to Section 2.2), and (iii) to conduct certain Development activities on the Product in the Field
pursuant to ARTICLE 4 solely in support of Regulatory Approval in the Licensee Territory”;

 

WHEREAS, in connection
with the settlement of certain amounts that Metuchen has agreed are due and payable by Metuchen to VIVUS under that certain Commercial
Supply Agreement dated September 30, 2016 (as amended, restated, amended and restated, supplemental or otherwise modified, the “Supply
Agreement”), by and between Metuchen and VIVUS and in connection with amounts [***] deducted by CVS Pharmacy (“CVS”)
of amounts owed to VIVUS from sale of VIVUS’s product QSYMIA, (i) Metuchen and VIVUS have entered into a Settlement Agreement
dated as of even date herewith (“Settlement Agreement”), (ii) Metuchen has executed a promissory note payable
to the order of VIVUS, dated as of even date herewith (the “Promissory Note”) and (iii) Metuchen has executed
a security agreement to secure the obligations under the Promissory Note, dated as of even date herewith (“Security Agreement”);

 

WHEREAS
the Supply Agreement was terminated on September 30, 2021;

 

WHEREAS,
under the Settlement Agreement, Metuchen has expressly agreed (among other things) that (i) VIVUS will retain co-exclusive
rights to exercise the VIVUS Exploitation Rights (as defined in the Settlement Agreement) in the Licensee Territory, (ii) upon an
Event of Default (as defined in the Security Agreement), the License Agreement will terminate, (iii)  VIVUS will have and maintain
such rights to use all Metuchen regulatory documentation, rights of reference to all regulatory submissions to Regulatory Authorities
and other rights as may be necessary or appropriate in VIVUS’ discretion in order to enable VIVUS to immediately commence the exercise
of the VIVUS Exploitation Rights; and (iv) Metuchen will agree and stipulate (A) that VIVUS is the sole and exclusive owner
of all of the API unless or until such time that certain quantities of API are shipped to Metuchen against payments made under the Promissory
Note in accordance with Section 7 of the Settlement Agreement, and (B) VIVUS’ exercise of the VIVUS Exploitation Rights
will not be subject to the automatic stay, any need for a court order (including that of a bankruptcy court) or in any way impact property
of a Metuchen bankruptcy estate upon the occurrence of an Event of Default;

 

    

     

    

 

WHEREAS,
as a condition to acceptance of the Settlement Agreement, the Promissory Note and Security Agreement by VIVUS, the Parties have agreed
to amend the License Agreement as set forth herein.

 

NOW,
THEREFORE, in consideration of the foregoing and the agreements contained herein, Metuchen and VIVUS hereby agree as follows:

 

1.            Capitalized
terms used but not defined in this Amendment shall have the meanings ascribed to them in the License Agreement.

 

2.            The
Article 1 of the License Agreement is hereby amended to add the following definition:

 

“VIVUS Exploitation Rights”
means VIVUS’ right to Develop, Commercialize (as such terms are defined in the License Agreement), make and have made and otherwise
exploit the Product in the Licensee Territory (as such terms are defined in the License Agreement), as to each, without limitation.

 

The Article 1 of the
License Agreement is hereby amended as follows:

 

The
last sentence of the defined term “Financing Entity” shall be amended to insert (x) the underlined text that follows
 “(i) ... are not Financing Entities” and “(ii) ... are not Financing Documents”
as the Hercules Loan Agreements and the “Agent” and “Lenders” have been irrevocably satisfied in full and the
Hercules Loan Agreements (including the letter agreement dated September 30, 2016 between VIVUS and Hercules Capital, Inc.)
have been terminated without further obligation or liability, and (y) just prior to the last sentence, the following: “The
Parties acknowledge that the note, security agreement and ancillary or related documents entered into on January 18, 2022 by Metuchen
and VIVUS (and as amended from time to time) constitute Financing Documents and that VIVUS is a Financing Entity in its capacity as countersignatory
to those documents.

 

3.            The
License Agreement is hereby amended to delete Section 2.1 and replace it with a new Section 2.1 as follows:

 

2.1            License
to Licensee. Subject to the terms and conditions of this Agreement (including VIVUS’ retained rights as set forth in Section 2.4),
VIVUS hereby grants to Licensee a co-exclusive, royalty-bearing (subject in all respects to Section 7.2), sublicensable (subject
to ARTICLE 6) license under the VIVUS Technology, (i) to use, distribute, import, Promote, market, sell, offer for sale, and
otherwise Commercialize Products in the Field in the Licensee Territory; (ii) make and have made Products in the Manufacturing Territory,
where such Product is solely for use or sale in the Field in the Licensee Territory (subject to Section 2.2), and (iii) to conduct
certain Development activities on the Product in the Field pursuant to ARTICLE 4 solely in support of Regulatory Approval in the
Licensee Territory and solely in accordance with the terms of this Agreement (collectively, the “License”).

 

    

     

    

 

4.            The
License Agreement is hereby amended to delete Section 2.3 and replace it with a new Section 2.3 as follows:

  

2.3            License
to VIVUS. Subject to the terms and conditions of this Agreement, Licensee hereby grants to VIVUS
(a) a non-exclusive, royalty-free, sublicensable (subject to ARTICLE 6) license under the Licensee Technology, Regulatory Materials
(including rights of reference to all of Licensee’s submissions to Regulatory Authorities) and Promotional Materials (i) to
the extent necessary or desirable to fulfill obligations under this Agreement, including manufacturing and supply obligations under ARTICLE 6
and (ii) to conduct research, Development, Commercialization and manufacturing activities in the Licensee Territory; (b) an
exclusive, royalty-free, sublicensable (subject to ARTICLE 6) license under the Licensee Technology, Regulatory Materials (including
rights of reference to all of Licensee’s submissions to Regulatory Authorities) and Promotional Materials to conduct research, Development,
Commercialization and manufacturing activities of Products in the VIVUS Territory; and (c) a non-exclusive, royalty-free, sublicensable
(subject to ARTICLE 6) license under the Licensee Technology, Regulatory Materials (including rights of reference to all of Licensee’s
submissions to Regulatory Authorities) and Promotional Materials to otherwise exercise the VIVUS Exploitation Rights (collectively, the
 “VIVUS License”).

 

5.            The
License Agreement is hereby amended to delete Section 2.4 and replace it with a new Section 2.4 as follows:

 

2.4            VIVUS
Retained Rights.

 

(a)            Notwithstanding
the rights granted to Licensee under the License, VIVUS retains its rights under the VIVUS Technology within the Field in the Licensee
Territory, and retains all rights to conduct Development, Commercialization, manufacturing and all other activities associated with exercise
of the VIVUS Exploitation Rights within the Licensee Territory, including all rights as may be necessary or desirable to exercise in connection
with the Regulatory Approval, Pricing Approval, or Commercialization of the Product in the Licensee Territory and in the VIVUS Territory
(including the right to grant licenses to Affiliates or Third Parties with respect to such activities). VIVUS retains all rights to the
VIVUS Technology outside the Field.

 

(b)            Licensee
acknowledges and agrees that VIVUS’ co-exclusive rights as stated in Section 2.1 and its retained rights as set forth in Section 2.4(a) above
enable VIVUS, at any time, to exercise the VIVUS Exploitation Rights, without restriction within the Licensee Territory; provided however,
that unless or until an Event of Default occurs, VIVUS agrees to forbear from exercising the VIVUS Exploitation Rights in the Licensee
Territory; provided further however, that upon the occurrence of an Event of Default, Metuchen shall not have, and waives, any and all
rights and defenses under the License Agreement, the Settlement Agreement, the Promissory Note, the Security Agreement or otherwise at
law or in equity to challenge, delay, restrict, impede, or otherwise interfere with VIVUS’ immediate and automatic right to exercise
any or all of the VIVUS Exploitation Rights and any other rights retained by VIVUS. Neither Licensee nor any of its sublicensees shall
(or seek to) challenge, delay, restrict, impede, or otherwise interfere with VIVUS’s retained rights and any such action by Licensee
or any of its sublicensees shall constitute a material breach of this Agreement and VIVUS may immediately terminate this Agreement.

 

    

     

    

 

6.            The
License Agreement is hereby amended to delete Section 12.2(a) and replace it with a new Section 12.2(a) as follows:

 

(a)            Material
Breach. Metuchen shall have the right to terminate this Agreement, upon written notice to VIVUS if VIVUS, after receiving written
notice from Metuchen identifying a material breach by VIVUS of its obligations under this Agreement, fails to cure (or if not curable
within such time period, adopt a plan for cure during such time period) such material breach within [***] from the date of such notice
(or, in the case of payment obligations, [***] from the date of such notice); provided, however, that in the event the VIVUS contests
any such asserted breach in good faith and diligently pursues the dispute resolution procedures set forth in ARTICLE 13, such [***]
cure period shall be tolled or suspended until the final resolution of such dispute pursuant to the terms of, and in accordance with,
the terms and provisions of ARTICLE 13, subject to any exercise by MTPC of its right of termination of the MTPC Agreement due to
any material breach of the provisions or conditions of the MTPC Agreement by VIVUS arising from the facts or circumstances that resulted
in the material breach by VIVUS hereunder. For the avoidance of doubt (and without limiting VIVUS’ remedies for any other breaches
by Licensee), Licensee’s failure to pay the amounts set forth in Section 7.1 by the deadlines set forth therein shall each
be deemed to be a material breach of this Agreement.

 

7.            The
License Agreement is hereby amended to add a new Section 12.2(e) as follows:

 

(e)            VIVUS
Termination of License Upon Event of Default. Licensee is the maker of that certain Promissory Note dated as of January 18, 2022,
payable to the order of VIVUS (the “Promissory Note”), which Promissory Note is secured under the terms of that certain
Security Agreement by and between Licensee and VIVUS dated January 18, 2022 (the “Security Agreement”). VIVUS
and Licensee agree that, in the event of (i) any Event of Default (as defined in the Security Agreement) or (ii) material breach
of this Agreement by Metuchen, this Agreement shall terminate.

 

8.            Section 14.5
of the License Agreement is amended to insert the following underlined text in the second line thereof: “... except that,
subject in each instance to the terms of the Financing Documents entered into with VIVUS as Financing Party and compliance therewith,
(a) ...”

 

9.            Section 14.8
of the License agreement is amended to replace the words “Hercules Capital, Inc.” with “VIVUS as Financing Party.”

 

10.            Further
Assurances and Inconsistencies. Licensee acknowledges and agrees that this Amendment is intended to fully vest in VIVUS all of the
necessary rights and privileges to practice and exploit the VIVUS Technology and to Develop, manufacture, have manufactured and otherwise
Commercialize the Product in the Licensee Territory at such time and in such manner as VIVUS may determine. To the extent that VIVUS deems
the execution of any agreement, further amendment to the License Agreement or such other document or any action (including with respect
to FDA or any other Regulatory Authority), omission or otherwise as VIVUS may determine as necessary or appropriate in its sole discretion,
Metuchen will and will cause any sublicensee or subcontractor to execute such document or perform such action, omission or otherwise in
a prompt and timely manner. Any failure of Metuchen or any sublicensee or subcontractor to execute such documents or perform such further
action, omission or otherwise in a prompt and timely manner as requested by VIVUS shall constitute a material breach of the License Agreement
and VIVUS may immediately terminate the License Agreement.

 

    

     

    

 

11.            The
License Agreement is amended as set forth in this Amendment as of the Amendment Effective Date. To the extent that the License Agreement
is in any way inconsistent with the terms of this Amendment, this Amendment shall control and such inconsistent provisions shall be revised
to fulfill the agreements set forth in this Amendment. To the extent that the License Agreement, as amended by this Amendment, is in any
way inconsistent with the terms of the Financing Documents entered into with VIVUS as Financing Party, such Financing Documents shall
control and such inconsistent provisions shall be revised to fulfill the agreements set forth in the Financing Documents entered into
with VIVUS as Financing Party.

 

12.            The
defined terms “VIVUS” and “Party” or “Parties” in the License Agreement or this Amendment shall not
include VIVUS in its capacity as Financing Party unless expressly provided for therein absent notice from VIVUS provided after the Amendment
Effective Date.

 

13.            Except
as specifically provided for in this Amendment (including the resolution of any conflicts between this Amendment and the terms of the
License Agreement in favor of the terms of this Amendment), all of the terms and conditions of the License Agreement shall remain in full
force and effect as legally binding obligations of the Parties enforceable in accordance with their terms. Metuchen and VIVUS hereby ratify
and confirm their respective obligations under the Agreement, as modified pursuant to this Amendment.

 

14.            This
Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same
instrument. All signatures need not be on the same counterpart.

 

[signature page follows]

 

    

     

    

 

IN WITNESS WHEREOF, the Parties have executed or
caused this Amendment to be executed as of the Amendment Effective Date.

 

 

	VIVUS, LLC  	 	METUCHEN PHARMACEUTICALS LLC
	 	 	 
	 	 	 
	BY:	/s/ John Amos 	 	BY:	/s/ Fady Boctor
	 	 	 	 	 
	NAME: John Amos  	 	NAME: Fady Boctor  
	 	 	 
	TITLE: Chief Executive Officer  	 	TITLE: Authorized Person  

 

[Amendment
to License and Commercialization Agreement]

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