Note 11 - Commitments and Contingencies

Real Property Leases and Equipment Leases

The Company leases office space for corporate functions in Carmel, IN under a lease agreement that expires in June 2021. The leased locations in Carmel, IN support both the HBV-cure and microbiome programs.

The Company leases office and laboratory space in San Francisco, California under a sublease that expires in December 2017. Research activities for the HBV-cure program are also being conducted at laboratory space leased from Indiana University at Bloomington, IN that expires in December 2017. Research activities for the microbiome program are also conducted at office and laboratory space leased from the University of Florida Research Foundation in Alachua, FL that expires in May 2017.

The total leasing expenses for the years ended December 31, 2016 and 2015 were approximately $1.2 million and $0.7 million, respectively.

Pursuant to a Master Lease agreement dated November 25, 2014, the Company is leasing certain laboratory equipment. The equipment lease expense for the year ended December 31, 2016 and 2015 amounted to approximately $705,000 and $107,000, respectively. These equipment leases begin to expire in 2017, with the final lease expiring in 2020. The sum of all future payments through termination is approximately $1.7 million.

Future minimum rental payments for real estate and equipment required as of December 31, 2016 are as follows:

Year Ended December 31, 2017	$	1,900,556
Year Ended December 31, 2018		786,419
Year Ended December 31, 2019		376,686
Year Ended December 31, 2020		111,013
Year Ended December 31, 2021		55,353
	$	3,230,027

Employment Agreements

The Company has employment agreements with its Chief Executive Officer and Chief Financial Officer/Chief Operating Officer, which agreements set forth the terms of their employment, including severance arrangements. The Chief Executive Officer and Chief Financial Officer/Chief Operating Officer were paid an aggregate annual base salary of approximately $780,500 in 2015 and approximately $823,000 in 2016.

Effective January 5, 2016, the Company entered into an employment agreement with its new Chief Scientific Officer. The agreement has a term of five years and will be automatically extended for additional one-year periods unless the Company notifies the officer at least 180 days prior to the then current expiration date that it intends to not extend the employment agreement. The employment agreement initially provides for a base salary of $380,000 per year. The Chief Scientific Officer is also eligible for an annual discretionary bonus based on achievement of financial, clinical development and business milestones established by the Board of Directors, with the Chief Scientific Officer eligible for a bonus of up to 35% of his base salary. The Chief Scientific Officer also received a signing bonus payable after 30 days of employment in the amount of $75,000, which signing bonus is subject to repayment in the event his employment terminates for certain reasons prior to January 5, 2017. The employment agreement also provides for severance in connection with the termination of employment.

On January 9, 2016, the Company entered into an at-will employment letter agreement with its new Chief Development Officer. The employment agreement provides for at-will employment, subject to payment of severance benefits depending on the circumstances of termination. The employment agreements initially provided for a base salary of $360,000 per year and the employee is also eligible for an annual discretionary bonus based on achievement of financial, clinical development and business milestones established by the Board of Directors of up to 35% of his base salary.

Effective September 26, 2016, the Company entered into an employment agreement with its new Chief Scientific Officer - Microbiome. The agreement provides for an at-will employment arrangement. The employment agreement initially provides for a base salary of $380,000 per year. The Chief Scientific Officer - Microbiome is also eligible for an annual discretionary bonus based on achievement of financial, clinical development and business milestones established by the Board of Directors, with the Chief Scientific Officer-Microbiome eligible for a bonus of up to 35% of his base salary. The Chief Scientific Officer - Microbiome also receives, for up to twelve months following the effective date, a commuting allowance of up to $75,000 and reimbursement of up to $100,000 for relocation expense incurred during the twenty-four months following the effective date. Relocation expenses actually paid shall be repaid to the Company in the event the Chief Scientific Officer – Microbiome resigns from the Company prior to the first anniversary of the effective date. The employment agreement also provides for severance in connection with the termination of employment.

Litigation

The Company is not a party to any material legal proceedings and is not aware of any claims or actions pending or threatened against it. From time to time, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities.