Exhibit 10.1
FINANCIAL ADVISORY ENGAGEMENT AGREEMENT
March 29, 2021
Mr. David Moss
Chief Financial Officer
INmune Bio, Inc.
1200 Prospect Street, Suite 525
La Jolla, CA 92037
Dear David
National Securities,
Corp. (“National”) is pleased to provide on a non-exclusive basis financial advisory and investor relations services
to INmune Bio, Inc. (the “Company”) with respect to 1) advising the company on ways to optimize their available financial
alternatives including but not limited to the potential solicitation of new investors 2) strategic introductions, potential joint
venture opportunities and assisting the Company in developing a well-coordinated and integrated plan to address ways in which the
Company can seek to increase its visibility within its markets, enhance its liquidity and establish non deal roadshows and 3) any
other general advisory services that the Company may seek to pursue and avail themselves of on the terms and conditions in this
letter agreement (the “Agreement”).
1.
Engagement; Nature of Services.
(a) The
Company engages National as the Company’s non-exclusive financial advisor to render such financial and other advice as an
investment banker, as the Company may reasonably request and National deems necessary or appropriate in connection with the Agreement.
(b) National
shall in the course of the Engagement:
| · | Organize ‘non-deal’ roadshows each comprising presentations to retail offices and institutional investors; |
| · | Provide access to National Securities’ Biotechnology Research Analyst for discussions about the strategy and positioning
of the Company; |
| · | Provide access to National Securities’ professional staff for discussions relating to the Company’s investor relations
strategy ; and |
| · | Assist in the preparation and dissemination of information regarding the Company and its activities and prospects, including,
but not limited, to investor kits and presentations to retail and institutional investors, with the goal of promoting increased
name recognition for the Company and familiarity with the Company’s business model, activities and strategies. |
(c) National
shall render such other services as may from time to time be agreed upon by National and the Company (e.g., fairness opinions,
business plans). The fees payable for any such other services shall be customary fees to be mutually agreed upon in advance and
based upon the nature and type of the services to be rendered.
(d) National
shall not be required to undertake duties not reasonably contemplated by this Agreement or to spend any minimum amount of time
in providing such services. National does not provide tax, accounting or legal advice. Any public offerings shall be subject to
a separate agreement and are expressly not addressed in this Agreement
2.
Information.
The Company will furnish
to National such information as National reasonably requests in connection with performing its services. In performing its services,
National will use and rely upon the information furnished by the Company as well as publicly available information regarding the
Company. Accordingly, National shall be entitled to assume and rely upon the accuracy and completeness of all h information prepared
by the Company and is not required to independently verify any such information, whether publicly available or otherwise furnished
to it, including any financial information, forecasts or projections. For any financial forecasts and projections made available
to National by the Company, National may assume that the forecasts and projections have been reasonably prepared on bases reflecting
the best currently available estimates and judgment of management of the Company.
In the event the Company makes available
to National certain information concerning the business, financial condition, operations, assets and liabilities of the Company
and other proprietary information of the Company or its affiliates (“Confidential Information”) in connection with
the performance of its duties hereunder National agrees to treat such Confidential Information (whether prepared by the Company,
its advisors, affiliates, investors or otherwise and irrespective of the form of communication) which is furnished to National
or to its employees or agents now or in the future by or on behalf of the Company as confidential and to hold it in confidence
in accordance with the provisions of this Agreement, and to take or abstain from taking certain other actions hereinafter set forth.
Confidential Information also shall be deemed to include all notes, analyses, compilations, studies, interpretations or other documents
prepared by National, its employees or agents which contain, reflect or are based upon, in whole or in part, Confidential Information
furnished to National, its employees or agents pursuant hereto. The term Confidential Information does not include information
which (i) is or becomes generally available to the public other than as a result of a disclosure by National, its employees or
agents, or (ii) becomes available to National on a non-confidential basis from a source other than the Company or its affiliates
(including without limitation any of the Company’s or its affiliates directors, officers, employees or agents), or any of
its attorneys, accountants, investors, consultants, bankers and financial advisors (collectively, the “Representatives”),
provided that such source is not bound by a confidentiality agreement with or other contractual, legal or fiduciary obligation
of confidentiality to the Company, its affiliates or any other party with respect to such information.
National hereby agrees that National, its
employees and agents shall use the Confidential Information solely for the purposes contemplated by this Agreement.
3.
Fees.
For the services to
be rendered by National, the Company shall pay to National or its designees, the Fees set forth below.
| i. | The Company shall provide to National a cash fee equal to $1,100,000 for its proposed services.
The cash fee shall be payable on a monthly basis over a twelve (12) month period with the initial payment due March 30, 2021. |
| ii. | Upon execution of this Agreement, the Company shall provide to National pre-paid expense reimbursement
equal to $8,000 for expenses related to the proposed services. |
4.
Scope of Responsibility.
National shall not
be liable to the Company, or to any other person claiming through the Company, for any claim, loss, damage, liability, or expense
suffered by the Company or any such other person arising out of or related to National’s engagement except for any claim,
loss, damage, liability or expense that arises out of, or is based upon, any action or failure to act by National that constitutes
bad faith, willful misconduct, breach of applicable law or regulations or gross negligence.
5.
Indemnification; Contribution.
(a) The
Company agrees to indemnify and hold harmless National and its officers, directors, shareholders, employees, affiliates, agents
and each person who controls National (and any of its affiliates) within the meaning of Section 15 of the Securities Act of 1933,
as amended or Section 20 of the Securities Exchange Act of 1934, as amended (each an “Indemnified Person”), to the
fullest extent lawful, against any and all losses, damages, liabilities, and expenses (including all fees and disbursements of
counsel and other expenses) (“Damages”) reasonably incurred in connection with the investigation of, preparation for
and defense of any pending or threatened claim, action, proceeding, inquiry, investigation or litigation, to which an Indemnified
Person may become subject (collectively, “Claims”) that arises out of or is related to National’s engagement
under this Agreement. However, this indemnification shall not include any Damages that are found in a final judgment by a court
of competent jurisdiction to have resulted from the bad faith, willful misconduct, breach of applicable law or regulation or gross
negligence of any Indemnified Person.
(b) If
the indemnity above is unavailable or insufficient to hold harmless an Indemnified Person, then the Company shall contribute to
amounts paid or payable by an Indemnified Person for Damages in such proportion as appropriately reflects the relative benefits
received by the Company on the one hand and National on the other. If applicable law does not permit allocation solely on the basis
of benefits, then such contribution shall be made in such proportion as appropriately reflects both the relative benefits and relative
fault of the parties and other relevant equitable considerations. However, in no event shall National’s aggregate contributions
for Damages exceed the amount of fees actually received by National under this Agreement except to the extent that such Damages
were incurred due to the bad faith, willful misconduct, breach of applicable law or regulation or gross negligence of National.
The relative benefits to the Company and National of this Agreement shall be deemed to be in the same proportion that the total
value paid or received or contemplated to be paid or received by the Company or its security holders resulting from this Agreement
bears to the fees paid to National under this Agreement.
(c) Promptly
after receipt by National of notice of any claim or the commencement of any action for which an Indemnified Person may be entitled
to indemnity, National shall promptly notify the Company of such claim or the commencement of such against the Indemnified Person
that would give rise to indemnification. However, any delay or failure to notify the Company will not relieve the Company of its
indemnity obligation except to the extent it is materially prejudiced by such delay or failure. The Company may participate in
the defense of the claim and shall assume the defense of the claim and shall pay as incurred the fees and disbursements of counsel
for the proceeding. In any proceeding where the Company declines to assume the defense or the Company’s counsel is deemed
to have a conflict of interest, the Indemnified Person shall have the right to retain its own counsel which shall be reasonably
satisfactory to National. The Company shall pay the fees and expenses of such counsel as incurred. However, the Company shall not
be responsible for the fees and expenses of more than one counsel (other than counsel of record) for all Indemnified Persons.
(d) The
Company will not enter into any waiver, release or settlement for any threatened or pending claim, action, proceeding or investigation
or settle any related litigation for which indemnification may be sought under this Agreement by an Indemnified Party , without
the written consent of the Indemnified Party unless the waiver, release or settlement includes an unconditional release of each
Indemnified Person from any and all liability arising out of the threatened or pending claim, action, proceeding, investigation
or litigation.
6.
Term; Termination of Engagement.
The term of this engagement
shall be for six (6) months from the date of this Agreement. Nevertheless, National’s engagement may be terminated by either
the Company or National at any time upon written notice to that effect to the other party.
The provisions of this Section 7 and of
Sections 3, 4, 5 and 6 of this Agreement shall survive termination.
7.
Representations and Warranties; Covenants.
The Company represents, warrants and covenants
as follows:
(a) All
information provided by the Company will be accurate and complete in all material respects and will not contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading in light of
the circumstances under which such statements are made.
(b) During
the term of this Agreement, the Company will (a) provide copies of its annual reports and other financial reports not publicly
available at the earliest time the Company makes them available to others, and (b) provide such other information concerning the
business and financial condition of the Company and its assets as National may from time to time reasonably request.
(c) The
execution, delivery and performance of this Agreement and the consummation of the transactions contemplated in this Agreement have
been duly authorized by all necessary corporate action and will not conflict with or constitute a breach of, or default under,
or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company pursuant
to, any contract, indenture, mortgage, loan agreement, note, lease or other instrument to which the Company is bound, or to which
any property or assets of the Company are subject.
8. Reliance
on Others. The Company confirms that it will rely on its own counsel and accountants for legal, tax and accounting advice.
9. No
Rights in Shareholders, etc. National has been engaged only by the Company, and this engagement is not deemed to be on behalf
of and is not intended to confer rights upon any shareholder, partner or other owner of the Company or any other person not a party
to this Agreement as against National. Unless otherwise expressly agreed, no one other than the Company is authorized to rely upon
this engagement of National or to rely upon any statements, advice, opinions or conduct by National.
10. Independent
Contractor; No Fiduciary Duty; Non-Exclusive Services: National’s role is that of an independent contractor and nothing
in this Agreement is intended to create or shall be construed as creating a fiduciary or agency relationship between the Company
and National. National and its affiliates provide financial advisory services, investment banking services, and consulting advice
to others. Nothing in this Agreement shall limit or restrict National in providing services to others, except as such services
may relate to matters concerning the Company’s business and properties.
11. National
acknowledges that the Company is a public company whose stock is listed on the NASDAQ stock exchange. Accordingly, National agrees
that each of its officers, directors, employees, representatives and agents that is in possession of material non-public information
of the Company or any affiliate of the Company shall abide by the federal securities laws and regulations of the United States
of America which prohibit trading in the securities of any company while in possession of material non-public information and to
not disclose such information to others who might trade on it. “Material information” is generally defined as any information
about the subject company or the market for that company’s securities which would (i) likely affect the price of those securities,
or (ii) likely be considered important by reasonable investors, including reasonable speculative investors, in determining whether
to trade in the securities of such company. “Non-public information” is generally defined as information which has
not been disclosed generally or is otherwise generally known in the marketplace.
12. Governing
Law; Jurisdiction. This Agreement shall be governed by and construed in all respects under the laws of the State of New York,
without reference to its conflict of laws provisions. Any right to trial by jury for any claim, action, proceeding or litigation
arising out of this Agreement or any of the matters contemplated in this Agreement is waived by the Company and National. The parties
hereby irrevocably and unconditionally: submit to the jurisdiction of the federal and state courts located in the State of New
York, for any dispute related to this Agreement or any of the matters contemplated hereby; consent to service of process by registered
or certified mail return receipt requested or by any other manner provided by applicable law; and waive any right to claim that
any action, proceeding or litigation so commenced has been commenced in an inconvenient forum.
13. Miscellaneous.
Nothing in this Agreement is intended to obligate National to provide any services other than as set forth above. This Agreement
may be executed in counterparts, each of which shall be deemed an original, but which together shall be considered a single instrument.
This Agreement constitutes the entire agreement between the parties, and supersedes all prior agreements and understandings (both
written and oral) of the parties with respect to the subject matter of this Agreement. This Agreement cannot be amended or otherwise
modified except in writing signed by the parties. The provisions of this Agreement shall inure to the benefit of and be binding
upon the successors and assigns of the Company and National.
If you agree with the
foregoing, please sign both copies of this letter, retain one copy for your records and return the other copy to us, whereupon
the Agreement shall become effective as of March 15, 2021.
Sincerely,
| National Securities Corporation |
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| By: |
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| Name: |
Jonathan C. Rich |
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| Title: |
EVP – Head of Investment Banking |
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| ACCEPTED AND AGREED: |
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| |
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| INmune Bio, Inc. |
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| By: |
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| Name: |
David Moss |
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| Title: |
Chief Financial Officer |
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| By: |
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| Name: |
Raymond J. Tesi |
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| Title: |
Chief Executive Officer |
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