Document:

Exhibit 10.33

 

DISTRIBUTION AGREEMENT

 

by and between

 

BIONIK LABORATORIES CORP.

 

and

 

China Bionik
Medical Rehabilitation Technology
Ltd.

 

May 17, 2017

 

     

     

    

 

TABLE
OF CONTENTS 

 

	 	 	Page
	 	 	 
	ARTICLE 1.	DEFINITIONS AND INTERPRETATION	1
	 	 	 
	1.1.	Definitions	1
	1.2.	Interpretation	4
	 	 	 
	ARTICLE 2.	EXCLUSIVE APPOINTMENT; FUTURE PRODUCTS 	5
	 	 	 
	2.1.	Exclusive Distributorship Appointment	5
	2.2. 	Option in Respect of Future Products	5
	 	 	 
	ARTICLE 3.	COMMERCIALIZATION OF DISTRIBUTION PRODUCTS	6
	 	 	 
	3.1.	Commercialization Obligations	6
	3.2. 	Marketing Materials	6
	3.3.	Product Labels and Inserts	6
	3.4. 	Use of Trademarks	6
	 	 	 
	ARTICLE 4.	TERMS OF PURCHASE OF DISTRIBUTION PRODUCTS	7
	 	 	
	4.1.	Forecasting	7
	4.2.	Terms and Conditions	7
	4.3.	Rejection of Product	8
	 	 	 
	ARTICLE 5.	TRAINING AND OTHER OBLIGATIONS OF BIONIK 	10
	 	 	 
	5.1. 	Information	10
	5.2. 	Training by BIONIK	10
	5.3. 	Compliance with Laws	10
	5.4. 	Anti-Corruption Laws	10
	 	 	 
	ARTICLE 6.	INTELLECTUAL PROPERTY RIGHTS AND 	
	 	LICENSE GRANT	10
	 	 	 
	6.1.	Intellectual Property Rights	10
	6.2. 	Use of BIONIK Trademarks and Service Marks	10
	 	 	 
	ARTICLE 7.	REGULATORY MATTERS	11
	 	 	 
	7.1. 	Regulatory Diligence	11
	7.2. 	Regulatory Authority Action and Communications	11
	7.3. 	Adverse Event and Product Quality Complaint Notification and  Reporting	12
	 	 	 
	ARTICLE 8.	RECORDKEEPING AND REPORTING	12

 

    i 

     

    

 

	8.1.	Records	12
	8.2.	Audit of Records	12
	 	 	 
	ARTICLE 9.	CONFIDENTIALITY	13
	 	 	 
	9.1 	Definition of Confidential Information	13
	9.2. 	Secrecy and Use	13
	9.3. 	Authorized Disclosure	14
	9.4. 	Notification	14
	9.5. 	Remedies	14
	9.6. 	Survival	14
	 	 	 
	ARTICLE 10.	TERM AND TERMINATION	14
	 	 	 
	10.1.	Term	14
	10.2.	Early Termination	14
	10.3.	Process	15
	10.4.	Effect of Expiration or Termination	15
	 	 	 
	ARTICLE 11.	INDEMNIFICATION	16
	 	 	 
	11.1.	Indemnification of BIONIK	16
	11.2.	Indemnification by Company	16
	 	 	 
	ARTICLE 12.	REPRESENTATIONS, WARRANTIES AND COVENANTS	17
	 	 	 
	12.1.	Representations and Warranties	17
	12.2.	Additional Representations and Warranties of BIONIK	17
	12.3.	Product Warranty	17
	12.4.	DISCLAIMER OF WARRANTY AND LIMITATION  OF LIABILITY	17
	 	 	 
	ARTICLE 13.	FORCE MAJEURE	18
	 	 	 
	13.1.	Force Majeure	18
	 	 	 
	ARTICLE 14.	GOVERNING LAW	18
	 	 	 
	14.1.	Governing Law	18
	 	 	 
	ARTICLE 15.	DISPUTE RESOLUTION	19
	 	 	 
	15.1.	Dispute Resolution	19
	15.2.	Other Matters Unaffected	19

 

    ii 

     

    

 

	ARTICLE 16.	MISCELLANEOUS	20
	 	 	 
	16.1.	Survival	20
	16.2.	Notices	20
	16.3.	Entire Agreement	20
	16.4.	No Implied Waivers	21
	16.5.	Severance	21
	16.6.	Amendments	21
	16.7.	Assignment	21
	16.8.	Relationship of Parties	21
	16.9.	Further Actions	21
	16.10.	Counterparts	21

 

	Annex A 	 	Price and Payment Terms
	Annex B 	 	Specifications
	Schedule I	 	Company Trademarks
	Schedule II	 	Current Products
	Schedule III	 	BIONIK Trademarks
	Schedule IV 	 	Milestones

 

    iii 

     

    

 

DISTRIBUTION
AGREEMENT

 

This Distribution
Agreement (this “Agreement”),
is made and entered
into as of May 17, 2017 (the “Effective
Date”),
by and between Bionik
Laboratories Corp.,
a company incorporated in accordance with the Law of Toronto,
Canada with an office located at 483 Bay Street, Office
N105, Toronto, ON M5G 2C9,
Canada (“BIONIK”),
and China Bionik
Medical Rehabilitation
Technology Ltd.
a company organized under the Law
of the People’s Republic of China, with an office located
at Waterside Pavilion Garden No. 1 Building, Suite 2003,
Nankai District, Tianjin, China (the “Company”),
each being a “Party,” and collectively, the “Parties.”

 

RECITALS 

 

1.          BIONIK
has entered into a co-operative joint venture
contract with Ginger Capital Investment
Holding, Ltd. dated
as of the date hereof
(“JV
Contract”)
for the establishment of the Company. Pursuant
to the JV Contract, BIONIK and the Company shall enter
into a distribution agreement, which will
specify the terms upon which BIONIK will
grant to the Company an exclusive,
non-transferable, revocable, royalty-free license to Market,
sell and distribute the Distribution Products (as defined below) in the Territory
(as defined below). 

 

2.          The
Parties desire the
Company to Market, sell and
distribute the Distribution Products in the Territory in
accordance with the terms and conditions set forth
hereunder. 

 

Now,
therefore, in consideration of the promises and mutual covenants contained in this Agreement,
the Parties agree as follows:

 

ARTICLE
1. DEFINITIONS AND
INTERPRETATION 

 

1.1.
Definitions. As used in
this Agreement, the following terms will have the
meanings set forth in this Section. 

 

“Acquired
Future Product”
shall have the meaning set forth in Section 2.2(d).

 

“Affiliate”
shall mean, with
regard to a given Person,
a Person that Controls,
is Controlled by, or is under common Control with, the
given Person where “Control” means
(i) ownership of more than fifty percent (50%) of the equity
interest or voting stock,
(ii) the power to appoint
or elect a majority of the directors, or (iii) the power
to direct the management and policies of a Person, directly or indirectly,
whether through the ownership of voting securities,
by contract or otherwise. 

 

“Agreement”
shall have the meaning set forth
in the first paragraph hereof. 

 

“BIONIK”
shall have the
meaning set forth in the first paragraph hereof. 

 

“BIONIK
Trademarks” shall mean Trademarks owned by BIONIK
as specified in Schedule III. 

 

“CFDA”
shall mean China
Food and Drug Administration (formerly State Food & Drug Administration
or “SFDA”) 

 

“Company”
shall have the meaning
set forth in the first paragraph hereof. 

 

    	 	1	 

     

    

 

“Company
Trademarks”
shall mean
the Trademarks specified in Schedule I.

 

“Confidential
Information”
shall have the meaning set forth in Section 9.1.

 

“Current
Products”
shall mean the products listed in Schedule
II attached hereto,
together with all follow-on dosage forms,
strengths and indications
of such products. 

 

“Disclosing
Party” shall
have the meaning
set forth in Section 9.1. 

 

“Dispute”
shall have
the meaning set forth in
Section 15.1(a). 

 

“Distribution
Products”
shall mean the Current
Products and the Acquired
Future Products.

 

“Effective
Date” shall
have the meaning
set forth in the first
paragraph hereof.

 

“Exercise
Notice” shall
have the
meaning set forth in Section 2.2(b).

 

“Force
Majeure Event”
shall
have the meaning set
forth in Section 13 l(a).

 

“Future
Product”
shall mean
any BIONIK medical device products
other than the Current Products
that BIONIK
may at any time during
the Term of this Agreement propose
to market in the
Territory. 

 

“Future
Product
Notice”
shall have
the meaning set forth
in Section
2.2. 

 

“Hindered
Party” shall
have the meaning set
forth in Section
13.1 (a).

 

“Hong
Kong” shall
mean the
Hong Kong
Special Administrative
Region. 

 

“Intellectual
Property”
means any
and all: (i)
inventions (whether
patentable or unpatentable
and whether or not reduced
to practice), all
improvements
thereto,
and all patents,
patent applications
and patent disclosures,
together
with all
re-issuances,
continuation, continuations,
in part, revisions,
extensions and
re-examinations
thereof; (ii)
registered and unregistered
trademarks,
service
marks, trade
dress,
logos,
trade
names, assumed
names, together with all
translations,
adaptations, derivations
and combinations
thereof
and including all goodwill associated
therewith,
and all applications,
registrations and renewals
in connection therewith; (iii) copyrightable
works, all copyrights
and all applications,
registrations
and renewals
in connection
therewith,
works
of authorship;
(iv) rights
in the nature
of the aforesaid items
in any
country, and rights
to sue
for passing off
(whether for past,
present
or future infringement).

 

“JV
Contract”
shall have the
meaning
set forth
in the Recitals
hereof. 

 

“Law”
or “Laws”
shall mean
any published
laws, regulations,
rules, provisions,
circular,
permits, authorizations,
interpretations,
orders
or decisions
of any government
authorities or legislative
authorities or
judgments,
awards, decisions
or interpretations
of any judicial authorities.

 

“License
Agreement”
shall mean that
certain License
Agreement between the Parties
dated as of the date
hereof. 

 

    	 	2	 

     

    

 

“Manufacture”
and “Manufacturing”
shall mean, with
respect to a Distribution
Product, the
manufacturing,
processing,
formulating,
packaging, labeling,
holding
and quality control
testing
of the Distribution Product.

 

“Marketing”
shall mean
the programs and activities
normally
undertaken by a
medical device
company relating to
the marketing,
Promotion and sale
of a medical device
product in the Territory
including patient information,
web sites,
advertising,
studies in
support of
advertising
claims, seminars,
symposia,
training,
and education, as well
as selling,
contracting for sale
of soliciting
contracts for sale
of, and distributing such
product. When used
as a verb,
“Market”
shall mean
to engage
in such
activities. 

 

“Marketing
Materials”
shall mean, in
respect of
a Distribution
Product, all
written, printed, video,
audio and
internet or
web-based
materials, convention
panels,
speakers programs
and other
materials
relating
to the Distribution
Product, other
than Product Labels
and Inserts,
intended for use
by Representatives
or otherwise
by the Company
in performing
its Marketing
obligations
hereunder,
including visual
aids, advertisements,
formulary
kits, file cards,
premium items, clinical
studies, reprints,
drug information
updates, direct
mailings,
product-oriented
web sites,
and any other promotional
support
items used by the
Company
to conduct
the Marketing
and Promotion of the Distribution
Product.

 

“Net
Sales” shall
mean the gross
amount invoiced by
BIONIK for sales of
the Distribution Products
to Company, less
deductions
for (a) quantity and
cash discounts
and sales
rebates actually
given; (b)
freight, shipping
insurance and other
transportation
expenses; (c) sales,
value-added,
excise
taxes, tariffs
and duties,
and other taxes
directly
related to
the sale; all to the
extent that (a),
(b) and (c)
are included
in the gross invoice
price and specified
on the invoice (but
not including taxes
assessed
against
the income derived
from such sale);
(d) returns
(including
withdrawals and
recalls);
and (e) amounts
repaid,
discounted
or credited
by BIONIK.

 

”Party”
and “Parties”
have the
meanings
set forth
in the first
paragraph hereof. 

 

“PRC”
shall mean
the People’s Republic
of China (solely
for the purpose
of this Agreement,
excluding the
province
of Taiwan,
Hong Kong and the
Macau Special Administrative
Region).

 

“Product
Labels and
Inserts”
shall mean (a)
the product monograph
as approved
by the applicable
Regulatory
Authority
in the
Territory,
(b) all labels
and other written,
printed
or graphic matter
affixed
to any container,
packaging
or wrapper
utilized with
a Distribution
Product, or
(c) any written
material packaged
with
or otherwise
physically
accompanying
a Distribution Product,
including
package inserts.

 

“Product
Quality Complaint”
shalt mean any
and all Manufacturing
or packaging-related
complaints from Third
Parties related
to the Distribution
Product, including
(a) any complaint
involving
the possible failure of the Distribution
Product to meet
any applicable Specifications,
(b) any dissatisfaction with the
design, package or labeling of the Distribution
Product; or (c) any adverse
event that may involve the quality of the Distribution
Product, including
lack of effect, infection,
or request for testing.

 

“Promotion”
shall mean those
activities normally undertaken by a medical
device company’s sales
force to implement marketing
plans and strategies aimed
at encouraging the appropriate
use of a particular medical device product
in the Territory. When used as a verb,
“Promote” shall
mean to engage in such activities. 

 

“Proprietary
Information” shall mean any information
or Intellectual Property of a party that
is of a proprietary and confidential
nature, including,
but not
limited to trade clinical methods, clinical
processes, clinical
documentation and techniques. 

 

    	 	3	 

     

    

 

“Purchase
Price” shall
have the meaning set
forth in Section
4.12. 

 

“Recall
Event” shall
have the meaning set
forth in Section 4.3.

 

“Receiving
Party” shall
have the
meaning set forth in Section
9.1. 

 

“Regulatory
Approval”
shall mean, with
respect to a Distribution
Product,
any and all approvals,
licenses, registrations
or authorizations necessary
for the sale and
Marketing of the Distribution
Product throughout the Territory,
including without limitation,
CFDA approval.

 

“Regulatory
Authority”
shall mean: 

 

(a)
any provincial,
territorial
or federal government
or formulary
body in the Territory with responsibility
for determining
listability of a Distribution
Product on any applicable formulary
or for determining the
pricing of the
Distribution
Product for reimbursement,
with jurisdiction
to review the
pricing of and
payment for Distribution
Products under
the public drug system
under applicable Law;

 

(b)
any provincial,
territorial or federal
government
in the Territory with jurisdiction
to grant, suspend
or withdraw the marketing
authorization to Import, sell or distribute
the Distribution
Product in the Territory
under applicable Law;
and 

 

(c)
any provincial,
territorial or federal
government or review
board in the Territory
with jurisdiction over
pricing of patented
products or with jurisdiction
over competition aspects of pricing
of products. 

 

“Representative”
shall mean a medical
device sales representative
qualified by training and experience
to Promote the
medical device products
in the Territory. 

 

“Specifications”
shall have the meaning
set forth in Section
12.3. 

 

“Taxes”
shall have the
meaning set forth in Section 4.12. 

 

“Term”
shall have
the meaning
set forth in Section 10.1. 

 

“Terminating
Party”
shall have the meaning
set forth in Section 10.3. 

 

“Territory”
shall mean the
PRC, Hong Kong, and
the Macau Special Administrative Region.

 

“Testing
Methods”
shall
have the meaning set forth in Section 4.3. 

 

“Third
Party”
shall mean any Person other
than BIONIK, the
Company or any Affiliate thereof and “Third
Parties”
shall be the plural
of the same. 

 

“USA”
shall mean the United States of America. 

 

1.2.
Interpretation.

 

(a)
Any reference herein
to any Section, subsection or paragraph is to such Section,
subsection or paragraph in this Agreement
unless the context otherwise requires. 

 

(b)
The italicized typeface, headings
and titles herein are
used for convenience
of reference only and shall not affect the construction
of this Agreement.

 

    	 	4	 

     

    

 

(c)
Unless the context
otherwise requires, words importing the singular
include the plural
and vice versa, and pronouns importing a gender include
all other genders. 

 

(d)
Reference
to any legislation
or law or to any provision thereof shall include
references to any such legislation
or law as it may,
after the
Effective Date,
from time to time,
be amended,
supplemented or re-enacted,
and any reference to a statutory
provision shall include any
subordinate legislation
or administrative rules or regulations made from time to
time under that provision.

 

(e)
The terms “hereof’,
“herein”, “hereby”,
“hereto”
and derivative or similar
words refer to this entire Agreement
or specified
Sections or subsections
of this Agreement,
as the case may be.

 

(f) Reference
to the word “include”
shall be construed without limitation. 

 

(g)
Any word or phrase defined
in the body of this Agreement as opposed to being defined in Section 1.1
above shall have the
meaning assigned
to it in such definition
throughout this Agreement, unless
the contrary is expressly
stated or the contrary clearly appears from the context.

 

(h)
“Person”
means an individual,
firm, partnership,
joint venture,
company, corporation, body
corporate, unincorporated body of persons
or any state or any agency of a state.

 

(i)
Where any obligation in this Agreement
is expressed to be
undertaken or assumed by any party, that obligation
is to be construed
as requiring the party concerned
to exercise, to
the extent
possible, all rights
and powers of control
over the affairs of any other person
which it is able to exercise (whether directly or indirectly) in
order to secure performance of the obligation. 

 

(j)
Where a word or expression is defined herein
cognate words and expressions will, if
capitalized, be construed analogously. 

 

ARTICLE
2. EXCLUSIVE APPOINTMENT;
FUTURE PRODUCTS

 

2.1.
Exclusive Distributorship Appointment.
Effective
as of the
Effective Date, and
subject to the terms
and conditions of this
Agreement, BIONIK,
acting for itself and its relevant Affiliates, hereby appoints
the Company as its
exclusive distributor
of the Distribution Products
in the Territory. As
exclusive
distributor, the Company
shall have the exclusive
right during the Term with respect
to each Distribution Product
to Market, distribute
and sell such Distribution Product
in the Territory.
Subject to the terms
hereof, the
Company shall make
all decisions
with respect
to the Marketing, planning,
strategy,
Promotion and selling
price of each
Distribution Product and shall have
the responsibility
for establishing and modifying
the terms
and conditions of the sale
of the Distribution
Product and the right to
do so. 

 

2.2.
Option in Respect
of Future Products.

 

(a)
In the event
that BIONIK or any of its Affiliates,
while this
Agreement remains
in effect,
proposes to
Market, distribute
and sell, in
the Territory,
any Future
Product which would
compete with the Current
Product or would be
used in the
Current Product,
BIONIK shall provide
the Company with a
written notice of such
fact (the “Future
Product
Notice”),
identifying the
relevant Future
Product.

 

    	 	5	 

     

    

 

(b)
The Company shall
have the right, at
any time within
one hundred and eighty
(180) days after
receipt of a Future Product Notice,
to exercise the exclusive
right to Market, distribute
and sell the relevant
Future Product in
the Territory by
providing a notice to BIONIK
(the “Exercise
Notice”).
During such one
hundred and eighty
(180)-day period,
BIONIK shall not enter,
and shall
not permit its Affiliates
to enter, into
negotiations
with a Third Party
with respect
to the opportunity
to Market, distribute
and sell the relevant
Future Product in the Territory.
If the Company
does not provide
an Exercise
Notice
during such one hundred
and eight (180)-day
period,
then (i)
the relevant
Future Product
shall not be
included as
a Distribution Product
under this Agreement,
(ii) the Company’s
fights in respect
of acquiring the right to Market,
sell and distribute such
Future Product in the Territory
shall
terminate,
and (iii) BIONIK and
its Affiliates shall
be free to make
other arrangements with respect
to the distribution
of such Future Product in the Territory.

 

(c)
Following the Company’s
exercise of its rights
under Section 2.2(b)
in respect of
the relevant
Future Product,
the Parties shall seek
to determine
the Purchase Price
of such Future Product to
be paid by the Company

 

(d)
Following the
Company’s
acquisition of
rights
to distribute
the relevant
Future Product
in the Territory and
determination
of the Purchase
Price to be paid by the
Company to BIONIK in respect
of such product as provided
in Section 2.2(c)
(at which point such
Future Product
will become
an “Acquired
Future Product”),
Company shall use
commercially
reasonable efforts
to, within a
reasonable
period
of time, obtain
Regulatory Approvals
pursuant to Section 7.1 to
import,
Market, sell
and distribute
the Acquired Future Product
throughout the Territory.

 

ARTICLE
3. COMMERCIALIZATION
OF DISTRIBUTION PRODUCTS

 

3.1.
Commercialization Obligations.
During the Term For each Distribution
Product and subject to the
terms and
conditions of this Agreement, the Company
shall, once Regulatory
Approval is
obtained for such
Distribution Product in the
Territory,
use commercially
reasonable
efforts in respect
of the Marketing, distribution
and sale in the Territory
of the Distribution Product. Prior
to obtaining Regulatory Approval,
the Company shall only conduct
limited Marketing,
distribution and sales
of the Distribution
Products
in compliance
with applicable PRC Law.

 

3.2.
Marketing
Materials.

 

(a)
Promptly
following the
Effective
Date, BIONIK
shall provide
the Company with samples
of any Marketing Materials
that have
been used
or approved
for use in the Territory
in connection with
any Distribution
Product. At the Company’s
request
during the Term applicable
to a Distribution
Product, BIONIK
shall provide the Company
with samples of
any marketing materials
used by BIONIK
in the United States
in connection
with versions
of the Distribution
Product for
which regulatory
marketing approval has
been sought
or obtained in the United
States. 

 

(b)
BIONIK shall
provide
the Company with
reasonable
technical assistance
from BIONIK’s regulatory,
medical and promotional
regulatory
affairs groups
in connection with
Company’s efforts
to create Marketing
Materials. 

 

    	 	6	 

     

    

 

3.3.
Product
Labels and Inserts.
Subject to
the provisions
of this
Agreement,
all Distribution
Products sold and
distributed
by the Company shall
use the Product
Labels and Inserts
that are
attached to or accompany such
Distribution
Products
as delivered
by BIONIK to the Company
pursuant
to the terms hereof
and the Company shall
not Market, sell
or distribute
any Distribution
Product using
any other
Product Labels
and Inserts.

 

3.4.
Use of
Trademarks.
The Company shall Market,
sell or distribute
the Distribution Products
under BIONIK
Trademarks
and only unless required
by applicable
Law, the Company
Trademarks,
both of
which shall be
used and displayed
as mutually
agreed in writing by
the Parties. The
Company shall
also comply
with all notice
and marking
requirements
as required by
applicable intellectual
property Law.

 

ARTICLE
4. TERMS OF
PURCHASE
OF DISTRIBUTION
PRODUCTS

 

4.1.
Forecasting. Company agrees to supply BIONIK with a ninety (90) - day rolling forecast of its anticipated requirements for each
Distribution Product (the “Forecast”). Company will update and provide the Forecast to BIONIK monthly. The Forecast
will include the quantity and type of Distribution Product to be purchased. Such Forecast shall not be binding on either Party,
but shall be made in good faith.

 

4.2.
Terms and Conditions. During the Term of this
Agreement and subject
to the terms and conditions of this Agreement, the Company
shall purchase the Distribution Products
from BIONIK based on the Forecast by issuing a purchase
order to BIONIK. 

 

(a)
Price and Payment. The purchase price for each of the Distribution Products (the “Purchase
Price”) and
the payment for the Purchase Price for the Distribution
Products shall
be the price and payment as set forth on Annex A.
which shall be approximately forty per cent (40%) off the list price of the Distribution Products in other territories.
After CFDA approval has been obtained for the Distribution Products or six (6) months after
the establishment of the Company (whichever if the earlier),
and if the government-approved
selling prices for the Distribution Products are below
the Company’s expected selling prices,
the Company may renegotiate the Purchase Price of the Distribution
Products. The Purchase Price for the Distribution Products
may be amended by BIONIK no more than once per year and by no more than twenty percent (20%) over
the price previously in effect for the relevant Distribution Product.
The new Purchase Price after
such amendment shall apply to all orders received after the effective
date of such new Purchase Price as mutually agreed in writing by both Parties. Price changes shall not affect unfulfilled
purchase orders accepted by BIONIK prior to the effective
date of the price change. Notwithstanding
the above, Company
may purchase Distribution Products for demonstration purposes
only at fully loaded cost to be advised by BIONIK.

 

(b)
Taxes. Each Party shall
respectively bear and pay any and all Taxes, expenses and costs in connection with its
negotiation, preparation, execution
and performance of this Agreement under applicable
Laws unless otherwise provided. “Taxes”
means (i) any national,
provincial, municipal,
or local taxes,
charges, fees,
levies, or
other assessments, including,
without limitation, all
income tax (including enterprise income tax and withholding
tax), turnover tax (including value-added
tax, business tax,
and consumption tax), tariffs (including import duty and import value-added
tax) or other assessments
of any kind whatsoever, and (ii) all interest,
penalties or additional amounts imposed by any government
of any nation or any province or location thereof, in
connection with any item described in clause (i)
above. 

 

    	 	7	 

     

    

 

(c)
Order and Acceptance.
All orders for the
Distribution Products submitted by the Company shall be
initiated by written
purchase orders sent to BIONIK by email or facsimile transmission
and requesting a delivery
date during the term
of this Agreement; provided, however, that
an order may initially be
placed orally if a confirmational written purchase order (which may
be sent by either mail or facsimile transmission)
is received
by BIONIK within five (5)
days after
said oral order. To facilitate
BIONIK’s production scheduling,
the Company shall submit purchase orders to BIONIK
at least ninety
(90) days prior to the requested
delivery date. No
order shall be binding upon BIONIK until accepted by BIONIK
in writing, and
BIONIK shall have no liability to
the Company with respect
to purchase orders that are not accepted. No
partial shipment of
an order shall constitute
the Company’s acceptance of the entire order, absent the
Company’s written acceptance
of such entire order. BIONIK
shall use
BIONIK’s reasonable commercial
efforts to deliver the Distribution Products at the times
specified in Company’s purchase order,
and shall, in any event,
deliver the Distribution Products within
five (5) days after the
times specified in the Company’s purchase order.

 

(d)
Terms of Purchase Orders.
Nothing contained in any purchase order of the Company,
or any Invoice, order
acknowledgment or similar documentation of BIONIK,
shall in any way modify
the terms contained in this Agreement
or add any additional terms
or conditions. Unless otherwise
provided herein,
if there is anything
contrary between
a purchase order and this Agreement,
this Agreement shall
prevail. 

 

(e)
Delivery.
All deliveries, unless
otherwise stated
in the accepted purchase order, shall comply with the
delivery terms
otherwise mutually agreed
in writing. 

 

(f)
Inventory.
Company agrees
to purchase and maintain
a mutually agreeable level of inventory of the Distribution
Products in the Territory.

 

4.3. Rejection
of Product. 

 

(a)
Specifications.
The Distribution
Products supplied to Company by BIONIK under
this Agreement
will conform to the
specifications,
standards,
formulations, criteria
and the requirements of all Laws
applicable the Distribution Products
and all other
requirements as set
forth further in Annex
B (“Specifications”).
If Company
requests
any change to the Specifications
(which change
is not the result of
a requirement or mandate of
a Regulatory Authority),
it shall provide
written notice of any
such change and the
reasons
therefor to BIONIK.
BIONIK shall
notify Company within
thirty (30) days after
the notice
from Company whether
such change can be
made and
its good faith estimate
of the cost
of any such
change. If such change
can be made, the Parties
shall negotiate m good
faith and
agree on a written implementation
plan. Any associated
cost for the change
will be
borne by Company
unless BIONIK in
its sole discretion
reasonably believes
the change
is globally
applicable. 

 

(b)
Quality Control.
BIONIK will conduct quality
control testing
of the Distribution
Products prior
to shipment
III accordance with
any methods and procedures described
in the Specifications
and/or
any other methods
and procedures
as Company may from time
to time reasonably
request
in response to
new and necessary criteria
resulting
from market and regulatory changes,
which are agreed
to in advance by the Parties
(collectively,
the “Testing
Methods”).
BIONIK will conduct
quality control testing of the
Distribution Products
in accordance
with the Testing
Methods prior to
each shipment of the Distribution
Products to
ensure that each such
shipment conforms
with the Specifications. 

 

    	 	8	 

     

    

 

(c)
Rejection.
Company
may test or cause to
be tested
the Distribution
Products supplied to it under this
Agreement
in accordance
with Company’s customary
procedures within thirty
(30) days after
its receipt.
Company will
have the right to
reject
any shipment of the Distribution
Products made to it under this
Agreement that
does not meet
the Specifications
when received
by it when tested
in accordance with
the Testing Methods.
All claims by Company of non-conforming Distribution
Products will be deemed
waived
unless made
by the Company in writing and received
by BIONIK
within
such thirty (30)-day
period. All
claims will
be accompanied by a report
of analysis
of the allegedly
non-conforming
Distribution Product
that will have been
made by the
quality
control staff of the
Company,
using the Testing
Methods BIONIK
will provide
replacement
Distribution Product for the
non-conforming
Distribution Product
and will have thirty (30)
days to conduct its
own analysis
of the rejected
Distribution Product. If, after
its own analysis of
such Distribution
Product sample,
BIONIK confirms
such non-conformity in writing,
BIONIK
will replace such shipment at its expense,
and reimburse Company for
any reasonable charges incurred by Company for shipping and/or
storage, if
applicable, of the
non-conforming
shipments. If,
after its own analysis,
BIONIK does
not confirm such non-conformity,
the Parties
will agree to retest the shipment
or otherwise in a good faith attempt to agree upon a settlement
of the issue.
In the event
that the Parties
cannot resolve the
issue, the Parties
will submit the
disputed Distribution
Product to an independent testing laboratory,
to be mutually agreed
upon by the Parties, for testing.
The findings of
such laboratory will
be binding on the Parties,
absent
manifest error.
Expenses of such
laboratory tests
will be borne by BIONIK if such testing
confirms the
non-conformity, otherwise
Company will bear such
expenses.
In the event
that any such
shipment or batch thereof
is ultimately
agreed or found not to
meet the
Specifications,
BIONIK will
replace such
shipment at
its expense,
and reimburse Company for
any reasonable
charges incurred by
Company for
shipping and/or storage,
if applicable, of the
non-conforming shipment.
Company will return
or destroy
any such rejected
shipment to BIONIK if so instructed by
BIONIK, at BIONIK’s expense.
In the event
that any
such shipment
or batch thereof
is ultimately agreed
or found
to meet the
Specifications,
Company will accept and will
pay for such shipment
or batch of the
Distribution
Products. 

 

(d)
Recall.
In the event that any
Distribution
Product sold by BIONIK
to Company pursuant
to this Agreement
should be alleged
or proven not to meet
the Specifications
(as to the Distribution
Product) or
other mandatory
standards
for the
Distribution
Product imposed by
a Regulatory
Authority, as
the case may be
(“Recall
Event”),
either
Party will notify
the other Party immediately,
and the Parties
will cooperate
fully in the
investigation
and disposition of the
matter.
If the recall of
a Distribution Product
is due to any
act, negligence
or breach of warranty
by BIONIK, then
in such event, BIONIK
will bear
all reasonable
direct costs associated
with the recall,
including, without
limitation, refund
of the actual
cost of
conducting the
recall in accordance
with the
recall
guidelines
of the applicable
Regulatory
Authority,
including, but
not limited
to, expenses relating
to (a) notifying
the trade
industry,
media and customers
or (b) retention
or use of
attorneys, staff,
consultants,
experts and
testing facilities.

 

(e)
Replacement.
Without any prejudice
to any other
rights of
Company, within
thirty (30)
days of a Recall
Event, BIONIK
will, at
BIONIK’s election,
(a) replace
the affected
Distribution Product
with conforming Distribution
Product free
of charge
(including
all shipping related
charges), or
(b) refund
the purchase price
of the affected
Distribution
Product, or issue a credit
to Company in
an amount
equal to the cost
to Company for
the affected Distribution Product.

 

4.4
Distribution
Product Safety.
During the
Term of
this Agreement and
for one (1) year
after its termination
or expiration,
BIONIK will
promptly provide
Company
with all information
Within its possession
or control
or otherwise
available to
BIONIK regarding handling
precautions,
toxicity
and hazards
associated
with
the Distribution
Products. The information
will be provided
in written
form. In addition,
BIONIK will
provide
the Company
with any safety
information or processing
aids as
applicable for
using the Distribution
Products. 

 

    	 	9	 

     

    

 

4.5
Notification.
BIONIK
agrees that
it will
notify
Company
promptly of any
(a) contact
by any governmental,
regulatory
or administrative
person concerning
the Distribution
Products, whether
or not relating to
a Recall Event
and provide Company
the details
of such contact,
including
copies of any related
documents, or (b) incidents
pertaining
to the Manufacture
of the Distribution
Products that would require notification
to the Regulatory
Authorities,
including but not limited
to, fire, explosion,
environmental event,
serious injury or physical
damage. 

 

ARTICLE 5.
TRAINING AND OTHER OBLIGATIONS OF BIONIK 

 

5.1.
Information. BIONIK
shall use commercially
reasonable
efforts
to provide to the
Company, upon the Company’s reasonable
request, technical,
scientific,
pricing
or other
information otherwise
obtained by BIONIK
or in BIONIK’s
possession for
the purpose of
enabling the
Company to Market,
sell and distribute
the Distribution
Products. 

 

5.2.
Training by BIONIK.
BIONIK shall
provide
reasonable
sales and technical
training, and technical
support, to
the Company’s
personnel,
with the
frequency and
content of the training
to be reasonably
determined by agreement
between
the Company
and BIONIK
as necessary for the
Company
to fulfill
its obligations
hereunder and to enable
the Company
to Promote the Distribution
Products in the Territory.
BIONIK and the
Company shall each
pay their own costs
for travel, food,
and lodging
during the
training period.
In addition to
sales and technical
training, BIONIK shall
cooperate with the
Company
in establishing efficient
promotional
procedures and
policies. BIONIK
shall promptly
respond to the Company’s
reasonable
technical questions
relating to the
Distribution
Products. In
addition, BIONIK
shall, at the Company’s
reasonable
request
but at BIONIK’s expense,
provide
at least
one (1)
training session
per each
product line of the Distribution
Products
or at least three
(3) training
sessions
in total in the
Territory, at
a conference
or similar facility,
to surgeons
and other potential
users of the
Distribution
Products, the
form of which training
shall be
reasonably
agreed upon by the
Parties.
BIONIK shall
also promptly respond
to all reasonable
inquiries from the
Company concerning
matters
pertaining to
this Agreement.

 

5.3.
Compliance
with Laws. BIONIK
shall, at
its own
expenses,
comply fully
all applicable Laws,
including any
and all applicable
health and
safety Laws
with respect
to the Distribution
Products
and BIONIK’s
obligations
under this Agreement.
Company shall
similarly
at its own
expenses,
comply
fully with
all applicable
Laws with respect
to the Marketing, Promotion,
sale and distribution
of the the
Distribution Products
in the Territory
and its obligations
under this Agreement.

 

5.4.
Anti-Corruption
Laws. Each
Party and its employees
and agents
shall at all
times comply with
all applicable
anti-corruption
Laws including
without limitation,
the Foreign
Corrupt Practice Act,
as if it were
a Person
of USA and
all applicable
PRC anti-bribery
Laws.
Confirmed violations of
the provisions
will be
deemed a material
breach
of this Agreement,
giving a Party
the right to immediately
terminate
this Agreement
for cause.

 

    	 	10	 

     

    

 

ARTICLE
6. INTELLECTUAL
PROPERTY RIGHTS AND LICENSE GRANT 

 

6.1.
Intellectual
Property Rights.
Subject to the provisions
under this
Agreement
and/or the
License Agreement,
each Party retains
all rights,
title and
interest
to the Intellectual
Property
owned by such
Party. Other provisions
with respect
to Intellectual Property Rights shall
be specified
under the License
Agreement.

 

6.2.
Use of BIONIK
Trademarks and Service Marks. Company shall
not use the name “BIONIK”
or any of BIONIK’s
trademarks or service
marks as part of this
corporate or other
legal name, or as
part of the name under
which it conducts business,
unless permitted
in writing
by BIONIK. Company
may not remove
or alter
the BIONIK name,
or any of BIONIK Trademarks
or service marks
which are required
by Law, which
BIONIK has placed on any
Distribution
Products sold hereunder.
Trademarks and service
marks current as of the
Effective
Date of this Agreement
are set forth in Schedule
III hereto. BIONIK
shall have the right to modify
or add trademarks
or service
marks
at any time in
its sole
discretion
and agrees to
provide Company
reasonable
notice of
such modifications and
additions. 

 

ARTICLE
7. REGULATORY
MATTERS 

 

7.1. Regulatory
Diligence.

 

(a)
Unless otherwise
provided in the JV
contract or required
by the applicable Laws,
Company
shall, at
its own expense,
obtain and maintain,
or shall cause
to be obtained
and maintained,
all Regulatory
Approvals
for each Distribution
Product to enable the
import, Marketing,
sale and distribution
of the Distribution
Product in the Territory
in accordance with
applicable
Law, including
but not limited to the filing, registration
or approval processes
before importing,
distributing
and Marketing
any medical
device in the Territory.
Company shall notify
BIONIK each
time it submits
an application for government
registration
and marketing approval
for a
Distribution Product and shall
supply
the BIONIK with
copies of and
access to Company’s
filings and
shall keep
the BIONIK
fully informed
of the progress
of each such application. 

 

(b)
For the avoidance
of doubt, such
filings pursuant to
Section
7.1(a)
would grant Regulatory
Approval for
such Distribution Product
in the
name of, and all such
Regulatory Approvals
shall be transferred
to, BIONIK unless
otherwise
required by applicable
Laws or agreed
by the Parties.

 

(c)
Without limiting the
foregoing, if
Company wishes
to Manufacture
any of
the Distribution
Products and BIONIK is
agreeable to it,
BIONIK shall
take all actions needed
or advisable
to transfer any
relevant Regulatory
Approval to Company.

 

(d)
For clarity, in
no event shall the Company
have any
obligation to Market,
sell or distribute
any Distribution
Product unless
and until all the
relevant
Regulatory
Approvals have
been obtained by
Company
and a copy of
such Regulatory
Approvals has
been provided
to BIONIK
provided
that Company shall
still have the obligation
to Market,
sell or distribute
any Distribution Product
in a limited manner
and in full
compliance with applicable
Law. 

 

7.2.
Regulatory
Authority Action and
Communications. 

 

(a)
Each Party shall immediately
notify
the other
of any information
received regarding
any threatened or
pending
action by a Regulatory
Authority which might
affect
the Distribution
Products or the continued
Manufacture, Marketing,
distribution,
sale or use
of the Distribution
Products in the Territory.
Upon receipt of
any such
information, the
Parties
shall consult in an effort
to arrive at
a mutually
acceptable
procedure
for taking appropriate
action; provided,
however,
that nothing set
forth in this Section 7.2
shall be
construed as
restricting the right of either Party
to make a timely report of such matter to any Regulatory
Authority
or take other
action that it deems appropriate
under or required
by applicable
Law. 

 

    	 	11	 

     

    

 

(b)
Each Party shall promptly
provide notice to the other Party
of any material communications
with any Regulatory
Authority
concerning
the Distribution
Products. To
the extent permissible under
applicable Law,
copies of all such material communications
shall be attached
to the notice sent
pursuant to this Section 7.2. 

 

7.3. Adverse Event and
Product Quality Complaint Notification and Reporting.

 

(a)
The Company shall, and shall
cause each of its Representatives to, provide timely notice to BIONIK
when he or she
becomes aware of an adverse event associated with use of
a Distribution Product
(whether or not the
reported effect is (i) described in
the full prescribing information or the published
literature
with respect to such Distribution Product
or (ii) determined to be attributable to such Distribution
Product) of any information in or coming into its,
his or her possession
or control
concerning such adverse event.

 

(b)
The Company shall, and shall cause each of its
Representatives to,
timely notify BIONIK
when he or she becomes
aware of any Product Quality
Complaint associated with use of a Distribution
Product.

 

(c)
The Parties shall cooperate in developing
and maintaining procedures to implement this Section 7.3 and to ensure compliance with
applicable Laws and requirements
of the Regulatory
Authorities.

 

ARTICLE 8. RECORDKEEPING
AND REPORTING

 

8.1.
Records. The Company shall
keep or shall cause to be kept complete
and accurate books and records (financial
and otherwise) pertaining to the Marketing,
sale and distribution
of the Distribution Products
and the performance of its obligations
hereunder. The Company
shall retain such books and records until the earlier
of (a) one (1) year
after the end the Term applicable
to the relevant Distribution
Product and (b) such date as the Company has provided BIONIK
with a complete copy of all such books and records, or
for such longer period as may be required by applicable
Law. 

 

8.2.
Audit of Records. 

 

(a) At
the request of BIONIK, and only upon at least thirty (30) days’ prior written notice, the Company shall permit an independent certified
public accounting firm of nationally recognized standing designated by BIONIK and reasonably satisfactory to the Company, at reasonable
times and upon reasonable prior written notice, to examine and audit all books and records maintained by the Company pursuant to
Section 8.1. The Company and its accountants shall cooperate with and permit such firm to review all invoices, receipts, working
papers and other appropriate information relating to such determinations. Such examination and audit may not be conducted more
than once in any twelve (12)-month period. The report of any such examination and audit shall be made simultaneously to BIONIK
and the Company.

 

    	 	12	 

     

    

 

(b)
BIONIK shall treat all information subject to review under this Section 8.2 in accordance
with the confidentiality provisions of ARTICLE 9. and shall
cause its accounting firm to enter into a reasonably acceptable confidentiality agreement with the Company obligating such firm
to maintain all such financial information in confidence
pursuant to such confidentiality agreement.

 

ARTICLE 9. CONFIDENTIALITY

 

9.1.
Definition of Confidential Information. As used herein, “Confidential
Information”
means any information, whether in written, visual,
oral, electronic or
other form, furnished by either Party, its Affiliates,
or their respective agents and employees (the “Disclosing
Party”), to
the other Party, its Affiliates, or their respective agents
and employees (the “Receiving
Party”)
under this Agreement, including
the Proprietary Information of the Disclosing Party,
except to the extent that
the Receiving Party can establish by competent proof that such information: (a) was already known to the Receiving Party,
as shown by its written records, other
than under an obligation of confidentiality,
at the time of disclosure by the Disclosing Party; (b)
was publicly available at the time of its disclosure by
the Disclosing Party; (c) became publicly available after its disclosure
by the Disclosing Party, other than through any violation of confidentiality owed to the Disclosing Party; (d)
became available to the Receiving Party on a non-confidential basis from a source other than the Disclosing Party,
provided that such source is not bound by a confidentiality agreement with the Disclosing Party
with respect to such information; or (e) was independently developed by the Receiving Patty without reference to the Confidential
Information. 

 

9.2.
Secrecy and Use. In
its handling of the Confidential Information, the Receiving
Party will use the same standard of care used by the Receiving
Parry to avoid disclosure, publication, dissemination and unauthorized use of its most sensitive and confidential information,
but in no case, less than a
standard of reasonable care.

 

(a)
The Receiving Party,
and any person to whom the Receiving Party discloses Confidential Information as provided herein,
will not disclose, publish
or disseminate the Confidential Information to any Person, including any Affiliate of the Receiving
Party, except that the Receiving Party may disclose
the Confidential Information to those of its Affiliates, and and such Affiliates’
employees, agents,
or representatives, who have a need to receive such Confidential Information as a result of
their specific responsibilities under this Agreement and who agree to be bound by the confidentiality
obligations of the Receiving Party, including without limitation,
the provisions of this Section; provided,
however, that neither
Party will disclose, publish or disseminate, or permit
its Affiliates, and such Affiliates’
employees, agents or representatives, to disclose,
publish or disseminate, any
information, whether or not Confidential Information,
which bears the name of the other Party or its Affiliates,
without the prior written consent of such other Party,
which consent will not be unreasonably withheld. 

 

(b)
The Receiving Party, and any Person to whom the Receiving Party discloses Confidential Information as provided herein,
will not use Confidential Information, including
any derivation from, or modification of Confidential Information,
or any Ideas, concepts
and/or techniques contained therein, for any purpose whatsoever
other than as expressly provided in this Agreement.

 

(c)
The Receiving
Party will
secure all
Confidential Information
in written
or electronic
form, and
all copies,
notes
and records
thereof,
in a manner consistent
with company
policy of the
Receiving
Party
regarding the handling
of confidential information.

 

    	 	13	 

     

    

 

9.3.
Authorized
Disclosure.
Notwithstanding
the foregoing, the
Parties
may with prior
written
approval of
the Party who disclosed
the Confidential
Information
reveal Confidential
Information
to government personnel
to the extent necessary
to obtain any
required
governmental approval, to outside
lawyers, accountants and consultants to the extent necessary
for them to
provide their professional
assistance, and to a court
of competent jurisdiction
to the extent necessary
for response to a valid order,
provided that Confidential Information
so revealed
in written form is marked
confidential
and that such government
personnel
and outside individuals
shall be requested to undertake
to respect the confidentiality provisions of this
Agreement.

 

9.4.
Notification. The Receiving
Party will
notify the Disclosing Party immediately, and cooperate
with the Disclosing Party as the Disclosing
Party may reasonably request,
upon the Receiving Party’s
discovery of any loss
or compromise of the Disclosing Party’s Confidential Information.

 

9.5.
Remedies. Each Party
agrees that the unauthorized
use or disclosure
of any Confidential
Information by the Receiving
Party in violation of
this Agreement will cause severe and irreparable
damage to the Disclosing Party and its Affiliates. In
the event of any violation
of this Section, the Receiving Party agrees that
the Disclosing Party
and/or its Affiliates will
be authorized and entitled
to obtain from any court of competent
jurisdiction injunctive
relief, whether preliminary or permanent,
as well as any other relief
permitted by applicable Laws.
The Receiving Party
will waive any requirement
that the Disclosing
Party and/or
its Affiliates
post bond as a condition
for obtaining any such relief.

 

9.6.
Survival. The
provisions of this Section will
be in effect for a period of five (5) years following
the termination or expiration
of this Agreement.

 

ARTICLE
10. TERM AND TERMINATION

 

10.1.
Term.
This Agreement shall
take effect from the Effective Date and remain
in effect for a period
of five (5) years (the “Term”)
unless this
Agreement is terminated
earlier pursuant
to Section 10.2. The Parties shall
have the option prior to the expiration
of the initial Term to renew this Agreement for subsequent
periods, in which
case, “Term”
shall include these
subsequent renewal
periods. 

 

10.2.
Early Termination.
(i) Either Party (except as otherwise
provided
below in this Section) shall have the right
to terminate this Agreement
in accordance with the provisions of Section 10.3 for
so long as any of the following
events occurs and continues: 

 

(a)
Either Party or its
Affiliates breaches a material provision
of this Agreement and such breach,
if capable of being cured,
is not cured within sixty (60) days after the date of written notification
of such breach, in which
event only the non-breaching Party has the right
to terminate, 

 

(b)
Either Party becomes
bankrupt, or is the
subject of proceedings
for liquidation or dissolution, or ceases to carry
on business or becomes unable to pay its debts as they come due,
in which event the
other Party has the right to terminate;

 

(c)
Either Party becomes
entitled to terminate
this Agreement
under Section 13.1;

 

(d)
The expiration or termination
of the JV Contract
in accordance with its terms:
and 

 

    	 	14	 

     

    

 

(e)
Either
Party engages
in
any act of fraud
or commits
any crime which has
resulted
in a material effect
on such Party’s capacity
to perform this Agreement.

 

(ii)
In addition, BIONIK
shall have the
option to
terminate this Agreement
if any of the milestones
set forth in Schedule
IV (“Milestones”)
is not met. 

 

10.3.
Process.
In the event a Party desires to terminate this Agreement
pursuant to
Section 10.2 (the
“Terminating Party”), the
following
process shall apply:

 

(a)
The Terminating
Party shall provide
written notice
to the other
Party indicating
its desire to terminate this
Agreement
and detailing the
effected
sub-section
in Section 10.2; 

 

(b)
If applicable,
the Parties (acting
through their respective
most senior
officers) attempt to remove
or cure
the reason
during a sixty (60)-day
period following
the notice; and if unresolved
by the end of the
sixty (60)-clay
period, this Agreement
shall be terminated.

 

(c)
For the
avoidance of any doubt,
there is no cure period for earlier termination
pursuant Section
10.2(i)(d)
and (e) and (ii)
above. 

 

10.4. Effect
of Expiration
or Termination.

 

(a)
Licenses.
Subject to the
License
Agreement,
upon expiration or
earlier termination
of this Agreement for
any reason,
all rights and licenses
granted
by BIONIK to
the Company hereunder
shall terminate; provided
that, in the
event the expiration
or termination is with respect
to one or
more Distribution Products
but not to this Agreement
in its entirety,
the rights and licenses
granted
by BIONIK
to Company shall remain
in effect
with respect to the remaining Distribution
Products
until such
time as this Agreement
expires
or terminates
with respect
to such Distribution
Products. 

 

(b)
Inventory.
Upon termination of
this Agreement
due to a Change-of-Control
Event (as
defined under the JV Contract)
of BIONIK or termination
by Company
pursuant to Section
10.2(a) due
to a breach by
BIONIK
with respect
to one or more Distribution
Products
or in its
entirety,
the Company
shall sell
to BIONIK
and BIONIK shall purchase
from the Company,
at the Purchase
Price paid
for such
Distribution
Products by the
Company
hereunder,
any and all unsold
quantities of
the Distribution
Products affected
by the expiration or termination
that are held
by the Company
as of the date
of such expiration or termination,
free and
clear of any and all liens,
mortgages,
encumbrances,
pledges,
security interests
or charges of any
nature whatsoever.
The Company shall ship all
such Distribution
Products to BIONIK
as directed
by BIONIK
at BIONIK’s
expense. The
Parties agree that
BIONIK
shall have
the right
to Market, sell and
distribute Distribution
Products purchased by BIONIK
pursuant to this Section
10.4(b); provided
that, unless otherwise
agreed by the Parties,
BIONIK shall
Market, sell and distribute
any such Distribution
Products only after they have been
repackaged by BIONIK
such that the Distribution
Products do not bear
Product Labels
and Inserts, or any
other written
materials, identifying the
Company as
the distributor
of the products
and do not contain
any Company Trademarks.

 

    	 	15	 

     

    

 

ARTICLE
11. INDEMNIFICATION

 

11.1.
Indemnification
of BIONIK. BIONIK
will indemnify and
hold the Company, its
Affiliates, and all
of their respective
directors, officers,
employees, sub-licensees
and agents harmless from and against
any and all liability,
damage, loss,
costs or expense
(including,
without limitation,
reasonable
attorneys’
fees) arising out of
third-party claims
or litigation instituted
by a Third Party based upon or arising
out of: 

 

(a)
BIONIK’s
gross negligence,
recklessness or
willful misconduct
in respect of any Distribution
Product which it is
responsible for manufacturing or supplying
under this Agreement; 

 

(b)
BIONIK
’s breach
of any representation
provided
in ARTICLE
12.; 

 

(c)
any personal injury,
death or property
damage attributable to BIONIK’s
negligence, recklessness
or willful misconduct;

 

(d)
any violation
of any Laws by BIONIK;

 

(e)
any environmental
liability
imposed on the
Company, its Affiliates,
and/or any of their
respective
directors,
officers,
employees, sub-licensees
and agents which may
arise as a result of
the Company’s contractual
relationship with BIONIK
under this Agreement and caused by BIONIK;
or 

 

(f)
any alleged or actual
violation by BIONIK
of the Intellectual
Property rights of a Third Party. 

 

The
Company
will promptly notify
BIONIK of any threatened
or pending claims, demands, causes
of action, losses,
damages,
penalties,
fines, expenses
or judgments
that could give rise to
an obligation
to indemnify under this Section.
BIONIK will
control the defense of any action in which the
Company is
indemnified under
this Agreement,
including the right
to select counsel,
and to settle any claim;
provided
that, without
the written consent of the Company
(which will
not be unreasonably withheld
or delayed), BIONIK
will not agree to settle any claim
against the Company to the
extent such
settlement would create
any obligation or action
on the
part of the Company
other than the payment
of money
(subject to indemnification)
or would have a material,
adverse effect on the
Company. The Company
will cooperate
as reasonably requested
(at the
expense
of BIONIK)
in the defense
of any such action.

 

11.2.
Indemnification
by Company. The
Company, will indemnify
and hold
BIONIK, its
Affiliates,
and all
of their respective
directors, officers, employees,
sub-licensees and agents
harmless
from and
against any and all
liability, damage, loss, costs
or expense (including,
without limitation,
reasonable attorneys’ fees)
arising out of third-party
claims or litigation
instituted
by a Third Party
based upon or arising
out of: 

 

(a) the Company’s breach
of any representation
provided in Section
12.1; 

 

(b)
any personal injury,
death or property damage
attributable to the Company’s negligence, recklessness
or willful
misconduct; or 

 

(c) any violation of any
Laws by the Company. 

 

    	 	16	 

     

    

 

BIONIK
will promptly
notify the Company of any threatened
or pending claims, demands, causes
of action, losses, damages,
penalties, fines, expenses or judgments
that could give rise to an obligation
to indemnify under this Section. the Company will
control the defense of any action In which BIONIK is indemnified
hereunder,
including the right to select counsel, and to settle
any claim; provided
that,
without the written
consent of BIONIK (which
will not be unreasonably
withheld or delayed),
the Company will not agree to settle
any claim against
BIONIK
to the extent such settlement
would create any obligation or action on the part of BIONIK
other than the payment of money (subject
to Indemnification)
or would have a material,
adverse effect on BIONIK.
BIONIK will cooperate as reasonably
requested (at the expense of the Company) in the defense of any such action.

 

ARTICLE
12. REPRESENTATIONS, WARRANTIES
AND COVENANTS

 

12.1.
Representations and Warranties.
Each Party represents
to the other Party that it has the full right and authority
to enter into and perform
its obligations under this Agreement, and the execution,
delivery and performance of this Agreement have been duly
authorized by all necessary corporate
action on its part, and no consent is required
from any Third Party for
such Party to enter
into and perform its obligations
except for any consent which have already been obtained.

 

12.2.
Additional Representations and Warranties of
BIONIK. BIONIK
represents and warrants
to Company that, as of the
Effective Date:

 

(a)
In addition to and without
limiting to the representations and warranties provided
under this Agreement,
BIONIK and its
Affiliates have the
sole and exclusive rights
under, and the sole
and exclusive right to
grant a license in respect of, any relevant Intellectual
Property to make, have made, use and sell the Distribution
Products
to Company; and 

 

(b)
(i) such Regulatory Approvals as have been
granted with respect to Current
Products are in full
force and effect
and have been duly
and validly issued;
(ii) there is no action or proceeding
by any Regulatory
Authority pending or, to the knowledge of BIONIK,
threatened seeking the recall of any Current Product
or the amendment, revocation or suspension
of any Regulatory Approval
that has been granted for a Current Product
which would affect or delay
the Manufacture, packaging,
release or distribution of the Current Product,
and (iii)
BIONIK has made available
to the Company complete and correct copies of all Regulatory
Approvals. 

 

12.3. Product Warranty.

 

(a)
The Distribution Products
sold to the Company
(i) will be free
from defects
in material
and workmanship, (ii}
will be free
and clear of all liens
and encumbrances; (iii)
will comply at the
time of shipment
to the Company with (1)
the requirements
of the
CE Mark registration
under the Medical Device
Directive and/or the
Food and Drug Administration (FDA), (2)
all applicable
Laws to
the Distribution Products
in the Territory
and (3) all written
specifications
for such Products
attached as Annex
B(the “Specifications”).

 

12.4.
DISCLAIMER
OF WARRANTY
AND LIMITATION OF
LIABILITY.

 

(a)
DISCLAIMER
OF WARRANTY. EXCEPT
FOR THE WARRANTIES
EXPRESSLY
SET FORTH IN THIS
AGREEMENT, EACH
PARTY DISCLAIMS
ALL OTHER
WARRANTIES,
EXPRESS AND IMPLIED
WITH RESPECT TO THE
DISTRIBUTION PRODUCTS,
INCLUDING
WITHOUT LIMITATION,
ANY IMPLIED WARRANTIES
OF MERCHANTABILITY,
NON-INFRINGEMENT
AND FITNESS
FOR A PARTICULAR
PURPOSE. 

 

    	 	17	 

     

    

 

(b)
LIMITATION
OF LIABILITY.
IN NO EVENT
SHALL EITHER
PARTY OR
ITS AGENTS,
OFFICERS,
OR EMPLOYEES,
BE LIABLE FOR
ANY SPECIAL DAMAGES,
INCIDENTAL
DAMAGES,
INDIRECT
DAMAGES, CONSEQUENTIAL
DAMAGES,
OR EXEMPLARY DAMAGES
WHATSOEVER (INCLUDING
DAMAGES FOR LOSS OF
PROFITS,
BUSINESS
INTERRUPTION,
LOSS OF
INFORMATION),
HOWEVER
CAUSED, WHETHER
OR NOT THE
POSSIBILITY OF SUCH
DAMAGES HAS BEEN DISCLOSED
TO THE OTHER
PARTY IN ADVANCE;
PROVIDED,
HOWEVER, THAT THE FOREGOING
SHALL NOT APPLY
TO AND SHALL NOT BE CONSTRUED
TO PRECLUDE
RECOVERY FROM AN INDEMNIFYING
PARTY BY AN
INDEMNIFIED
PARTY IN RESPECT OF
ANY OF SUCH LOSSES
DIRECTLY INCURRED
FROM THIRD
PARTY CLAIMS. 

 

ARTICLE
13, FORCE MAJEURE 

 

13.1.
Force Majeure.

 

(a)
When the obligations
of a Party
under
this Agreement
cannot be
performed in
full or
in part according to
the agreed
terms as
a direct result
of an event
that is unforeseeable
and the
occurrence
and consequences
of which cannot
be prevented
or avoided,
such as
earthquake,
typhoon, flood,
fire and other
natural disasters,
war, insurrection
and similar
military actions,
civil unrest
and strikes,
slowdowns
and other
labor actions
(a “Force
Majeure
Event”),
the liability
of the Party
that encounters
such Force Majeure
Event (the
“Hindered
Party”) shall
be released
in full or in
part in light of
the impact
of the event
upon this
Agreement,
if all
of the following
conditions
are met: 

 

(i)
The Force Majeure
Event was the
direct cause
of the stoppage,
impediment
or delay
encountered
by the Hindered
Party in performing
its obligations
under this
Agreement;

 

(ii)
The Hindered Party used its commercially reasonable efforts
to perform its obligations under this Agreement and to
reduce the losses to the other Party arising from the Force Majeure Event; and 

 

(iii)
At the time of the occurrence of the Force Majeure Event, the
Hindered Party immediately informed the other Party, providing
written information on such event within fifteen (15) days of its occurrence, including a statement of the reasons for the delay
in implementing or partially implementing this Agreement.

 

(b)
If a Force Majeure Event shall occur,
the Parties shall decide whether this Agreement should be amended in light of the impact of
the event upon the implementation hereof, and whether the Hindered Party should be partially or fully freed from its obligations
hereunder.

 

(c)
If a Force Majeure Event lasts
for more than sixty (60) days, either Party shall be entitled
to terminate this Agreement immediately with no further cure period in accordance with
Section 10.2. 

 

ARTICLE 14.
GOVERNING LAW 

 

14.1.
Governing Law. The formation,
validity, interpretation,
execution, amendment
and termination of and settlement of Disputes under this Agreement
shall all be governed by the Law of the State of New York.

 

    	 	18	 

     

    

 

ARTICLE 15.
DISPUTE RESOLUTION

 

15.1.
Dispute Resolution.

 

(a)
Notwithstanding Article 14, any dispute, controversy or
claim arising out of or relating
in any way to this Agreement, including without limitation any dispute concerning the construction,
validity, interpretation,
enforceability or breach of this Agreement
shall be exclusively resolved by binding arbitration upon a Party’s
submission of the dispute to arbitration. In the event of a dispute, controversy
or claim arising out of or relating in any way to this agreement/the
relationship, the complaining Party shall notify the other
Party in writing thereof. Within thirty (30)
days of such notice, management level representatives
of both Parties shall meet at an agreed location to attempt
to resolve the dispute in good faith. Should the dispute not be resolved within thirty (30) days after such notice, the complaining
Party shall seek remedies exclusively through arbitration. The demand for arbitration shall be made within a reasonable time after
the claim, dispute or other matter in question has arisen, and
in no event shall it be made after two years from when the aggrieved
party knew or should have known of the controversy, claim, dispute or breach. 

 

(b)
This agreement to arbitrate shall be specifically enforceable.
A Party may apply to any court with jurisdiction for interim
or conservatory relief,
including without limitation a proceeding to compel arbitration. 

 

(c)
The arbitration shall be conducted by three arbitrators. Each Party shall select an arbitrator within ten (10) days of commencement
of arbitration and the two designated arbitrations
shall select a third neutral
arbitrator
within twenty (20) days of their selection,
If the two arbitrators
cannot select the arbitrator, the arbitrator
shall be selected by the American
Arbitration Association; 

 

(d)
The arbitration
shall be conducted
in accordance
with the then existing Commercial Rules
of the American Arbitration
Association. 

 

(e)
The arbitration
shall be conducted
in New York, New York.

 

(f)
The Law of the State of New York shall be applied in any arbitration
proceedings, without
regard to principles of conflict of laws. 

 

(g)
The cost of the arbitration proceeding
and any proceeding in court to confirm
or to vacate any arbitration award, as applicable (including,
without
limitation, reasonable attorneys’ fees and costs),
shall be borne by the unsuccessful
party, as determined
by the arbitrators, and
shall be awarded as part
of the arbitrators’
award. It is specifically understood and
agreed that
any party may enforce any award rendered
pursuant
to the arbitration
provisions of this Section by bringing a suit in any court
of competent jurisdiction.
The Parties agree that the arbitrators
shall have authority to grant injunctive
or other forms of equitable relief to any Party.
This Section shall
survive the termination
or cancellation
of this Agreement.

 

(h)
Each Patty shall pay
its own proportionate share of arbitrator fees and expenses plus
the fees and expenses of the
arbitrator it designated and the arbitration fees and expenses of the American Arbitration
Association. The
arbitrators
shall be entitled to award the foregoing
arbitration and administrative fees and expenses as damages,

 

15.2.
Other Matters
Unaffected. During
the period when a dispute is
being resolved, except
for the matter
being disputed, the
Parties shall in
all other respects continue
their implementation
of this Agreement.

 

    	 	19	 

     

    

 

ARTICLE 16.
MISCELLANEOUS 

 

16.1.
Survival. The agreements
of the Parties
contained in ARTICLE
11. (Indemnification), ARTICLE
12. (Representations, Warranties and Covenants), ARTICLE
13. (Force Majeure), ARTICLE 14.
(Governing Law), ARTICLE
15. (Dispute Resolution), ARTICLE
16. (Miscellaneous) and Sections
6.1 (Intellectual Property Rights),
7.2 (Regulatory Authority Action and Communications),
7.3 (Adverse Event and Product Quality Complaint
Notification and Reporting), 4.3(d) (Product
Recalls), 8.1 (Records), 8.2
(Audit of Records),
and 10.4 (Effect a/Termination) shall continue
to survive after the expiration or termination of this
Agreement, with respect to one or more Distribution
Products
or in its entirety, and the dissolution
of the Company. 

 

16.2.
Notices. Notices or other communications required
to be given by either Party
pursuant to this Agreement shall be
sent in letter form or by facsimile to the address
of the other Party set
forth below or to such other address as may from time to
time be designated
by the other Party through notification
to such Party at its legal address as in effect from time to time. The
dates on which notices shall be deemed to have been effectively
given shall be determined
as follows: 

 

(a)
Notices
given by
personal delivery
shall be deemed
effectively
given on the
date of personal
delivery; 

 

(b)
Notices given in
letter
form shall be deemed
effectively given on the seventh
day after the date
mailed (as indicated
by the postmark)
by registered
airmail, postage
prepaid,
or the third
day after delivery
to an internationally
recognized courier
service; 

 

(c)
Notices given by
facsimile shall be
deemed effectively given upon
receipt by the sender
of a confirmed transmittal
receipt.

 

	 	Company: 	China Bionik Medical Rehabilitation Technology Ltd. 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	P.R. China 
	 	 	Attention: _____________
	 	 	Fax Number
	 	 	 
	 	BIONIK: 	Bionik Laboratories Corp. 
	 	 	483 Bay Street, Office NI05
	 	 	Toronto, ON M5G 2C9 
	 	 	Canada 
	 	 	Attention: Peter Bloch 
	 	 	Phone Number: (416) 640~7887 

 

16.3.
Entire
Agreement.
This
Agreement
and its schedules
and annexes
hereto
constitute the
complete and only agreement between
the Parties on the subject
matter of
this Agreement
and replaces all previous
oral or written
agreements, contracts,
understandings
and communications
of the Parties in respect
of the subject matter of this Agreement.

 

    	 	20	 

     

    

 

16.4.
No Implied
Waivers. A Party
that in a
particular
situation waives its rights
in respect of a breach
of contract by the other Party shall
not be deemed to have
waived its
rights against
the other Party
for a similar breach of contract in other situations.

 

16.5.
Severance. If
any provision of this Agreement
or part thereof is
rendered void, illegal
or unenforceable in any
respect under any
Law, the validity,
legality
and enforceability
of the remaining
provisions shall not in any way be
affected or impaired thereby. 

 

16.6.
Amendments. This Agreement
may be amended but
only in a writing executed by authorized
representatives of the Parties.

 

16.7.
Assignment. Neither
Party will be entitled
to assign its rights
hereunder,
or subcontract with a Third
Party
for the performance of its
obligations hereunder,
without the express written
consent of the
other Party; provided,
however, that upon the
prior written notice to IE,
the Company may assign all or some
of its rights or obligations hereunder
to its own Affiliates.
Subject to the foregoing, this
Agreement
will inure
to the benefit
of the Parties permitted
successors and assigns. 

 

16.8.
Relationship
of Parties. Each
of BIONIK and
the Company is an independent contractor under
this Agreement. Neither
such party shall have any express or implied
right or authority to
assume or create any obligations on behalf
of or in the name of the other or
to bind the
other to any contract,
agreement or undertaking
with any third party.

 

16.9.
Further Actions.
Each Party agrees to execute, acknowledge and
deliver
such further instruments,
and to do all
such other
acts, as may be necessary
or appropriate in order to carry out the purpose and intent
of this Agreement.

 

16.10.
Counterparts. This Agreement may be executed in
several counterparts, each of which will be deemed an original, but
all of which will constitute
one and the same instrument.

 

[The remainder of this
page has been intentionally left blank.]

 

    	 	21	 

     

    

 

IN
WITNESS
WHEREOF,
the Parties
have caused
this Agreement
to be duly executed
and delivered
to be effective
as of the Effective
Date. 

 

	BIONIK LABORATORIES CORP.	 	China Bionik Medical Rehabilitation	 
	 	 	Technology Ltd	 
	 	 	 	 	 	 
	By:	/s/ Peter Bloch	 	By:	/s/ Lev Zhang	 
	 	 	 	 	 	 
	Name:	Peter Bloch	 	Name:	Lev Zhang	 
	 	 	 	 	 	 
	Title:	CEO	 	Title:	 	 

 

	 	 	 	 	 	 
	 	/s/ Michael Prywata	 	 	/s/ Jia Cai	 
	 	 Michael Prywata	 	 	 Jia Cai	 
	 	 	 	 	 	 
	 	 	 	 	/s/ Rongrong Jiang	 
	 	 	 	 	 Rongrong
Jiang	 

 

[Signature
Page to Distribution
Agreement]

 

     

     

    

 

ANNEX A

 

PRICE AND PAYMENT TERMS

 

Payment terms are thirty (30) days net of the invoice date

 

Finished goods transfer price

 

     

     

    

 

Annex A

 

	Arm	 	$	58,500	 
	 	 	 	 	 
	Arm/Hand	 	$	75,000	 
	 	 	 	 	 
	Wrist	 	$	58,500	 

 

     

     

    

 

ANNEX B

 

SPECIFICATIONS

 

Specification documents provided under separate cover

 

     

     

    

 

SCHEDULE I

 

COMPANY TRADEMARKS & IP

 

As defined in in Schedule III of the related JV agreement dates
May 17th, 2017

 

     

     

    

 

SCHEDULE I

 

CURRENT PRODUCTS

 

As defined in in Schedule 1 of the related JV agreement dates May
17th, 2017

 

     

     

    

 

SCHEDULE III

 

BIONIK TRADEMARKS & IP

 

As defined in in Schedule III of the related JV agreement dates
May 17th, 2017

 

     

     

    

 

SCHEDULE IV

Milestones

 

	Description of Event	 	Deadline
	 	 	 	 
	1.	Appointment of a General Manager of the Company	 	3 months of the Effective Date
	 	 	 	 
	2.	Net Sales of $200,000	 	First anniversary of Effective Date
	 	 	 	 
	3.	Net Sales of $500,000	 	Second anniversary of Effective Date
	 	 	 	 
	4.	Net Sales of $2,000,000	 	Third anniversary of Effective Date
	 	 	 	 
	5.	Net Sales of $5,000,000	 	Fourth anniversary of Effective DateJOINT
DEVELOPMENT
AND MANUFACTURING AGREEMENT

 

This Joint Development
and Manufacturing Agreement (this “Agreement”), is entered into as of June 20, 2017 (the “Effective
Date”), by and between Bionik Laboratories Corp., a Delaware corporation, with offices located at 483 Bay Street, N105,
Toronto, Ontario M5G 2C9, Canada (“Bionik,”) and Wistron Medical Tech Holding Company, a Taiwan-based company,
with offices located III 6f., No.158, Xingshan Rd., Neihu Dist., Taipei City 114, Taiwan, Republic or Chinn (“Wistron”)
(each, sometimes a “Party’’, and collectively, the “Parties”).

 

Recitals

 

WHEREAS, Bionik is
engaged in the development, manufacturing, and sale or physical rehabilitation technologies, prosthetics, and assistive robotic
products, including the ARKE (as defined below);

 

WHEREAS, Wistron is
an ODM (Original Design Manufacturer) and service company that focuses on providing lending OEMs in the global technology industry;

 

WHEREAS, the Parties
wish to jointly design, redesign, engineer, and/or manufacture low-priced lower-body assistive robotic consumer products for the
home market based off of certain Bionik products, technologies and/or intellectual property, including the ARKE, and as set forth
in this Agreement (the “Joint Development Project”);

 

WHEREAS, each Party
is willing to grant to the other rights to its Background Intellectual Property on an as-needed basis during the Joint Development
Project to permit the other Party to conduct their activities under this Agreement in accordance with the terms and conditions
set forth herein; and

 

WHEREAS, as partial
consideration for entering into this Agreement, Bionik shall grant to Wistron exclusivity to manufacture the Joint Development
Products in accordance with terms to be determined in accordance with Section 2.5.

 

NOW, THEREFORE, in
consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1.       Definitions.
For purposes of this Agreement, the following terms have the following meanings:

 

“Affiliate”
of a Person (as defined below) mean any person that directly or indirectly controls, is controlled by or is under common control
with such specified person. For purposes of this definition “control” (including “controlling,” “controlled
by,” and “under common control with”) menus the possession, direct or indirect, of the power to direct or cause
the direction of the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise.

 

“ARKE”
means the lower body exoskeleton owned, researched, developed and trademarked by Bionik, commonly known as the ARKE.

 

“Background
Intellectual Property” means Bionik Intellectual Property and Wistron Intellectual Property.

 

    1 

     

    

 

“Bionik Background
Intellectual Property” means Intellectual Property owned or controlled by or licensed to Bionik which is necessary to
permit Wistron to perform its obligations under this Agreement end (a) was made, invented, developed, created, conceived, reduced
to practice, or has a filing date before the Effective Date and is not Developed Intellectual Property; or (b) was acquired by
Bionik during the Term of this Agreement, other than by joint acquisition or ownership with Wistron. Bionik Background Intellectual
Property includes, with respect to each of the foregoing items, all rights in any patents or patent applications, copyrights, trade
secret rights, and other Intellectual Property rights relating thereto. Bionik Background Intellectual Property includes, but is
not limited 10, the Bionik Background Intellectual Property listed in Schedule as it may be amended by the Parties from time to
time.

 

“Business
Day” means a day other than a Saturday, Sunday, or other day on which commercial banks in Ontario, Canada or Boston,
Massachusetts or Taipei, Taiwan are authorized or required by Law to be closed for business

 

“Commercially
Reasonable Efforts” means the carrying out of a Party’s obligations under this Agreement with the exercise of prudent
scientific and business judgment and a level of effort and resources consistent with such judgment, efforts, and resources that
the Party who bears the performance obligation or a comparable third party in the medical device industry would employ for products
of similar strategic importance and commercial value that result from its own research efforts. Commercially Reasonable Efforts
includes: (a) promptly assigning responsibility for development activities to specific employees who are held accountable for progress
and monitoring such progress on an on-going basis; (b) selling and consistently seeking to achieve specific and meaningful objectives
and time lilies for carrying our such development activities; and (c) consistently making and implementing decisions and allocating
resources designed to advance the progress of such objectives and timelines.

 

“Competing
Product” means any product, method, process, or other subject matter that is derived from the Bionik Background Intellectual
Property or Developed Intellectual Property that has the same mechanism of action as a Joint Development Product.

 

“Confidential
Information” means any Information that is treated as confidential by a Parry, or its Affiliates, whether in oral, written,
electronic, or other form or media, whether or not such lnformation is marked, designated, 01’ otherwise identified as “confidential,”
and includes any lnformation that due to the nature of its subject matter or circumstances surrounding its disclosure, could reasonably
be understood to be non-public, confidential, or proprietary, including, without limitation: (a) the existence, terms and conditions
of this Agreement; (b) all Information concerning the Joint Development Project, the Joint Development Product, end Developed lntellectual
Property; (c) all Information concerning past, present, and future business affairs including finances, customer information, supplier
information, products, services, organizational structure and internal practices, forecasts, sales and other financial results,
records and budgets, and business, marketing, research, development, sales and other commercial strategies; (d) all lnformation
concerning unpatented inventions, ideas, methods, discoveries, know-how, trade secrets, unpublished patent applications, invention
disclosures, invention slim maries, and other confidential intellectual property; (e) all designs, specifications, documentation,
components, source code, object code, images, icons, audiovisual components and objects, schematics, drawings, protocols, processes,
end other visual depictions, in whole or in part, of any of the foregoing; and (f) all notes, analyses, compilations, reports,
forecasts, studies, samples, data, statistics, summaries, interpretations, and other materials that contain, are based on, or otherwise
reflect or arc derived from, any of the foregoing in whole or in part.

 

Confidential Information
does not include Information that: (w) was already known by or ill the possession of the Receiving Party (as defined in Section
6.1) or its Affiliates without restriction on use or disclosure before the receipt of such lnformation directly or indirectly from
or on behalf of the Disclosing Party; (x) was or is independently developed by the Receiving Party, without reference to or use
of any of the Disclosing Party’s Confidential Information; (y) was or becomes generally known by the public other than as
a result of any breach of this Agreement, or other wrongful act, of the Receiving Party or its Affiliates: or (z) was or becomes
available to the Receiving Party, or its Affiliates, or received by the Receiving Party from a third Party who was not, at the
time, under an obligation to the Disclosing Party or its Affiliates or· any other Person to maintain the confidentiality
of such lnformation.

 

    2 

     

    

 

“Developed
Intellectual Property” means all Intellectual Property covering technology made, invented, developed, created, conceived,
of reduced to practice after the Effective Date and (a) as a result of work conducted pursuant to this Agreement, or (b) by a Receiving
Party derived from or based on the other Party’s Confidential Information pursuant to the terms of this Agreement, in each
case, including the rights all rights in any patents or patent applications, copyrights, trade secrets, and other Intellectual
Property rights relating thereto.

 

“Force Majeure”
has the meaning set forth in Section 13 l.

 

“Information”
means any and all ideas, concepts, data, know-how, discoveries, improvements, methods, techniques, technologies, systems, specifications,
analyses, products, practices, processes, procedures, protocols, research, rests, trials, assays, controls, prototypes, formulas,
descriptions, formulations, submissions, communications, skills, experience, knowledge, plans, objectives, algorithms, reports,
results, conclusions, and other information and materials, irrespective of whether or not copyrightable or patentable and in any
form or medium (tangible, intangible, oral, written, electronic, observational, or other) in which such Information may be communicated
or subsist. Without limiting the foregoing sentence, information includes any technological, scientific, business, legal, patent,
organizational, commercial, operational, or financial materials or information.

 

“Intellectual
Property” means all patentable and unpatentable inventions, works of authorship or expression, including computer programs,
data collections and databases, and trade secrets, and other Information.

 

“Joint Development
Product” means any product jointly developed by the Parties in connection with the Joint Development Project.

 

“Joint Development
Product” means the joint design, redesign, engineer, and manufacture or low-priced (i.e., a target manufacturing price
(F.O. B.) of US$15,OOO or less per product, excluding Amortized NRE Amounts) lower-body assistive robotic consumer products for
the home market focused on the aging population, based on certain Bionik Background Intellectual Property, as determined and agreed
upon by the Parties from time to time.

 

“Joint Development
Project Plan” means the essential elements or the Joint Development Project as determined from time to time by the Parties
and memorialized in writing, including details concerning the scope or work for each Party, protocols, specifications, schedule
of activities, timeline, and milestones, budget, payment and funding obligations and other Joint Development Project requirements.

 

“Law”
means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement
or rule of law or any federal, state, local, or foreign government or political subdivision thereof or any arbitrator, court, or
tribunal of competent jurisdiction,

 

“Losses”
means all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, lines,
costs, or expenses of whatever kind, including reasonable attorneys” fees and the cost of enforcing any right to indemnification
hereunder and the cost of pursuing any insurance providers.

 

“Participant
Invention” has the meaning set forth in Section 2.4(b)(i).

 

“Participating
Individual” has the meaning set forth in Section 2A(b),

 

    3 

     

    

 

“Person”
means an individual, corporation, partnership, joint venture, limited liability entity, governmental authority, unincorporated
organization, trust, association, or other entity.

 

“Regulatory
Approval” means any and all approvals (including any applicable supplements, amendments, pre- and post-approvals, governmental
price and reimbursement approvals and approvals of applications for regulatory exclusivity), licenses, registrations, or authorizations
of any Regulatory Authority necessary for any development, manufacture, or commercialization of the Joint Development Product.

 

“Regulatory
Authority” means any governmental regulatory authority, agency, or entity involved in granting Regulatory Approval of,
or otherwise regulating any aspect of the conduct, development, manufacture, market approval, sale, distribution, packaging, or
use of the Joint Development Product.

 

“Representative”
means a Party’s and its Affiliates’ employees, officers, directors, consultants, and legal, technical, and business
advisors.

 

“Term”
has the meaning set forth in Section 12.1.

 

“Territory”
means those countries identified in Section 2.5(c).

 

“Wistron Background
Intellectual Property” means Intellectual Property owned or controlled by Wistron which is necessary to permit Bionik
to perform its obligations under this Agreement and (a) was made, invented, developed, created, conceived, reduced to practice,
or have a filing date before the Effective Date and is not Developed Intellectual Property; or (b) were acquired by Wistron during
the Term of this Agreement, other than by joint acquisition or ownership with Bionik. Wistron Background Intellectual Property
includes, with respect to each of the foregoing items, all rights in any patents or patent applications, copyrights, trade secret
rights, and other lntellectual Property rights relating thereto. Wistron Background Intellectual Property includes, but is not
limited to, Wistron Background Intellectual Property listed in Schedule 2 as it may be amended by the Parties from time to time.

 

2.       Joint
Development Project.

 

2.1       Joint
Development Project Activities. The Parties have entered into this Agreement to jointly and collaboratively research and develop
one or mare Joint Development Products as set forth in this Agreement and as may be agreed to from time to time in writing by the
Parties.

 

(a)       The
Parties shall work together to develop one or more Joint Development Products in accordance with a Joint Development Project Plan.

 

(b)       Each
Party shall use Commercially Reasonable Efforts to:

 

(i)       perform
its responsibilities in accordance with this Agreement and the Joint Development Project Plan and perform all Joint Development
Project Plan requirements, including by meeting all Joint Development Project Plan timelines and find milestones; and

 

(ii)       cooperate
with and provide reasonable support to the other Party in connection with the other Party’s performance of its obligations
under this Agreement including the Joint Development Project Plan

 

2.2       [Intentionally
Omitted].

 

    4 

     

    

 

2.3       Project
Development. In accordance with the provisions and objectives of this Agreement and each Joint Development Project Plan, each
Party will use its own employees, engineers and personnel at their own sole cost find expense. It is expected that Bionik will
provide the Bionik Background Intellectual Property and assistance with planning each Joint Development Project Plan, and Wistron
will develop, design and engineer the Joint Development Products with direction and input of Bionik in accordance with the Joint
Development Project Plan. Wistron will be reimbursed for all of its cost and expenses hereunder through either (a) an increase
in the cost of goods and minimum unit shipment to Bionik (Amortized NRE Amount), to be agreed to by the Parties as part of each
Joint Development Project Plan, or (b) the prepayment of any or all such costs and expenses of Wistron, or (c) a combination thereof;
in any case such costs and expenses to be mutually agreed upon in writing by the Parties as part of the determination of the Joint
Development Project Plan.

 

2.4       Conduct
of the Joint Development Project.

 

(a)       Each
Party shall be responsible for the deployment and oversight of its own employees and personnel in connection with such Parties
duties and obligations under this Agreement, with the precise deployment and allocation of’ responsibilities of each Parties’
employees and personnel to be determined by each Party in its sole discretion. Each Party shall further dedicate to the Joint Development
Project appropriate time and involvement by its management, including regular participation in various meetings concerning the
Joint Development Project.

 

(b)       Each
Representative of a Party who is not an employee of a Party that works on the Joint Development Project, attends any meeting concerning
the Joint Development Project, or is given access to any of the other Party’s Confidential Information (a “Participating
Individual”), shall be bound by a written agreement requiring such Participating Individual to:

 

(i)       follow
that Party’s policies and procedures for reporting any inventions, discoveries, or other Intellectual Property or Information
invented, conceived, developed, derived, discovered, generated, identified, or otherwise made by the Participating Individual in
the course of his employment or retention by the Party and/or that arises from access to Confidential Information of either Party
that relates to the Joint Development Project (each a “Participant Invention”);

 

(ii)       assign
to Bionik all of his right, title, and interest in and to the Participant Inventions, including all Intellectual Property rights
relating thereto;

 

(iii)       cooperate
in the preparation, filing, prosecution, maintenance, defense, and enforcement of any patent or other rights in any Participant
Invention;

 

(iv)       perform
all acts and sign, execute, acknowledge, and deliver any and all papers, documents, and instruments required to fulfill the obligations
and purposes of that agreement; and

 

(v)       be
bound by obligations of confidentiality and non-use no less restrictive than those set out in this Agreement.

 

(c)       A11
day-to-day decisions concerning matters and functions allocated or delegated to a Party pursuant to the Joint Development Project
Plan, unless expressly reserved in this Agreement for determination or approval by the other Party, shall be deemed to be within
the decision-making authority of that Party; provided that all such decisions shall be consistent with the Joint Development Project,
the scope of the allocation or delegation to that Party under the Joint Development Project Plan, and the terms and conditions
of this Agreement.

 

2.5       Manufacturing
and Distribution.

 

(a)       Following
the successful completion of the development and engineering of a Joint Development Product in accordance with a Joint Development
Project Plan, Wistron shall be the sole manufacturer of such Joint Development Product, on terms and conditions customary for agreements
of that kind to be agreed to in writing in good faith by the Parties.

 

    5 

     

    

 

(b)       Wistron
and Bionik shall jointly determine whether or not to enter into an agreement pursuant to which Wistron would assist Bionik with
reducing Bionik’s overall manufacturing costs for some or all of Bionik’s products, on terms and conditions customary
for agreements of that kind to be agreed to in writing in good faith by the Parties

 

(c)       The
Parties shall in good faith negotiate and enter into a Sales and Distribution Agreement, pursuant to which Wistron shall have rights
to distribute select Bionik products in Greater China, Japan, and Southeast Asia, with the first of such products to be the first
Joint Development Product under this Agreement.

 

2.6       Information
Exchange.

 

(a)       During
the Term, each Party shall provide to the other Party reasonable access to its Representatives, facilities, books, and records,
and such other Information that the Disclosing Party believes to be necessary or useful (i) to support the other Party’s
efforts to conduct its Joint Development Project Plan activities or (ii) for the other Party to exercise its rights or meet its
obligations under this Agreement, and any other Information that the other Party reasonably requests for any of the purposes set
forth in this Section 2.6(a). These required disclosures include all disclosures required by Section 5.1(a) and any design, development,
manufacturing, clinical, pre-clinical, or non-clinical, testing, financial, marketing, sales, quality, and regulatory approval
and compliance Information described in the preceding sentence.

 

(b)       Each
Party may use Information relating to the Joint Development Project, including all clinical, pre-clinical, and non-clinical tests,
studies, data, and reports conducted as part of or concerning the Joint Development Project, for all purposes permitted by this
Agreement.

 

(c)       Neither
Party is required to provide to the other Party, or any other Person, any Information that is not required or useful for the other
Party to perform its obligations or exercise its rights under this Agreement.

 

(d)       Neither
Party may use the other Party’s Information for any purpose other than solely to exercise its rights under this Agreement
or perform its obligations under the Joint Development Project Plan in compliance with all applicable Laws. Neither Party may sell,
transfer, disclose, or otherwise provide access to the Disclosing Party’s Information without the prior express written consent
of the Disclosing Party. Notwithstanding the foregoing or any other provision of this Agreement, the Receiving Party may allow
access, on a need-to-know basis, to the Disclosing Party’s Information by the Receiving Party’s Representatives pursuant
to this Section 2.6(d), provided that the Representatives are made aware of and agree in writing to be bound by the restrictions
on the Information’s use set forth in this Agreement.

 

(e)       On
expiration or termination of this Agreement, at the Disclosing Party’s written request, the recipient and its Representatives
shall promptly return to the Disclosing Party all copies, whether in written, electronic or other form or media, of the Disclosing
Party’s Information, or destroy all such copies and certify in writing to the Disclosing Party that such Information has
been destroyed. In addition, the recipient shall also destroy all copies of any notes, analyses, compilations, reports, forecasts,
studies, samples, data, statistics, summaries, interpretations and other materials created by the recipient or its Representatives
and certify in writing to the Disclosing Party that such copies have been destroyed.

 

(f)       All
right, title, and interest in and to any Information a Disclosing Party provides to the Receiving Party, including any replication,
copy, derivative, or progeny thereof, including all Intellectual Property rights relating to any of the foregoing, shall be, and
remain, vested in the Disclosing Party.

 

    6 

     

    

 

2.7       Regulatory
Affairs.

 

(a)       Wistron
shall, if required and at Bionik’s expense, be responsible to address all regulatory matters that may arise under the Joint
Development Project within the Territory, including communicating with any Regulatory Authority in the Territory concerning the
Joint Development Product, and Wistron shall maintaining control over the manufacturing facilities and equipment to the extent
required by the Regulatory Authority.

 

(b)       Wistron
shall, to the extent required by the Regulatory Authority in the Territory, file any application for Regulatory Approval in the
name of Bionik where applicable. Before making any submission to any Regulatory Authority pursuant to this Agreement, Wistron shall
consult with Bionik in preparing and mutually agreeing on the content and scope of such Regulatory Approval submission.

 

(c)       Where
applicable, Bionik shall own and hold all licenses, authorizations, and approvals issued by any Regulatory Authority relating to
the Joint Development Project or Joint Development Product;

 

(d)       Wistron
may reference and use, file, or incorporate by reference any Regulatory Approval and all data and other Information included or
referenced or filed in support of such Regulatory Approvals to support regulatory submissions that Wistron is permitted to make
under this Agreement for the Joint Development Product.

 

3.       [Intentionally
Omitted].

 

4.       Background
Intellectual Property Cross-License.

 

4.1       License
to Bionik. Subject to the terms and conditions of this Agreement, Wistron, on behalf of itself and its Affiliates, hereby grants
to Bionik during the Term a fully paid up, non-exclusive, royalty-free, non-transferrable and non-sublicensable license under the
Wistron Background Intellectual Property to: (i) develop the Joint Development Product for commercialization and use; and (ii)
use the Joint Development Product as reasonably necessary for Bionik to perform its obligations under this Agreement; provided
that Wistron Background Intellectual Property will he licensed to Bionik solely to the Joint Developed Products manufactured or
supplied by Wistron.

 

4.2       License
to Wistron. Subject to the terms and conditions of this Agreement, Bionik, on behalf of itself and its Affiliates, hereby grants
to Wistron during the Term a fully paid up, non-exclusive, royalty-free, non-transferable and non-sublicensable license under the
Bionik Background Intellectual Property to: (i) develop the Joint Development Product for commercialization and use; and (ii) manufacture
and use the Joint Development Product as reasonably neccssary for Wistron to perform its obligations under this Agreement.

 

4.3       No
Further Rights. Notwithstanding any other provision in this Agreement, under no circumstances shall a Party to this Agreement,
as a result of this Agreement, have any right under or to the Background Intellectual Property of the other Party except for the
limited activities and purposes permitted by the licenses set forth in Section 4.1 and Section 4.2.

 

    7 

     

    

 

5.       Developed
Intellectual Property.

 

5.1       Invention
Disclosure and Record-Keeping.

 

(a)       Each
Party shall disclose to the other Party all Developed Intellectual Property, including copies of all invention disclosures and
other similar documents created in the normal course or its business that disclose any conception or reduction to practice of any
Intellectual Property constituting Developed Intellectual Property.

 

(b)       Each
Party shall maintain contemporaneous, complete, and accurate written records of its Representatives’ activities concerning
Developed Intellectual Property that provide proof of the conception date and reduction to practice date of any Developed Intellectual
Property for which the Party’s Representative claims inventorship status.

 

5.2      Ownership of Developed Intellectual Property.

 

(a) Regardless of inventorship,
as between the Parties, Bionik shall own all right, title, fand interest in and to Developed Intellectual Property after Bionik’s
completion of all reimbursement obligation pursuant to Section 2.3.

 

(b) Subject to Bionik’s
reimbursement obligation pursuant to Section 2.3, Bionik will have the right, subject to this Agreement (including but not limited
to Section 2.5(a)) and applicable Law, to make (through Wistron or Wistron Affiliates), have made (through Wistron or Wistron Affiliates),
use, offer to sell, sell, and import Developed Intellectual Property and freely exercise, transfer, assign, license, encumber,
and enforce all of its rights in the Developed Intellectual Property without the consent, joinder, or participation of Wistron.
Wistron hereby unconditionally and irrevocably waives any right it may have under applicable I.aw as a joint owner of the Developed
Intellectual Property to require such consent, joinder, participation.

 

(c) Except as otherwise
expressly provided in this Agreement, under no circumstances shall a Party, as a result of this Agreement, obtain any ownership
interest or other right, title, or Interest in or to any other intellectual Property or Confidential Information of the other Party,
whether by implication, estoppel, or otherwise, including any items controlled or developed by the other Party, or delivered by
the other Party, at any time pursuant to this Agreement.

 

5.3      Developed Intellectual Property Licenses.

 

(a) Subject to the terms
and conditions of this Agreement, Bionik, on behalf of itself and its Affiliates, hereby grants to Wistron during the Term a fully
paid up, non-exclusive, royalty-free, non-transferable license under the Developed Intellectual Property to: (i) develop the Joint
Development Product for commercialization and use; and (ii) manufacture and use the Joint Development Product as reasonably necessary
for Wistron to perform its development obligations under this Agreement.

 

(b) Notwithstanding any
other provision in this Agreement, no Party shall have any right to make, use, offer for sale, sell, or import any product that
would infringe any claim of any Developed Intellectual Property patent solely owned by the other Party other than for the limited
activities and purposes permitted by this Section 5.3.

 

6.       Confidentiality.

 

6.1       Confidentiality
Obligations. Each Party (the “Receiving Party”) acknowledges that in connection with this Agreement it will
gain access to Confidential Information of the other Party (the “Disclosing Party”). As a condition to being
provided with Confidential Information, the Receiving Party shall, during the Term and for five (5) years thereafter:

 

    8 

     

    

 

(a)       not
use the Disclosing Party’s Confidential Information other than as necessary to exercise its rights and perform its obligations
under this Agreement; and

 

(b)       maintain
the Disclosing Party’s Confidential Information in strict confidence and, subject to Section 6.2, not disclose the Disclosing
Party’s Confidential Information without the Disclosing Party’s prior written consent, provided, however, the Receiving
Party may disclose the Confidential Information to its Representatives who:

 

(i)       have
a need to know the Confidential Information for purposes of the Receiving Parry’s performance, or exercise of its rights
concerning the Confidential Information, under this Agreement;

 

(ii)       have
been apprised of this restriction; and

 

(iii)       are
themselves bound by written nondisclosure agreements at least as restrictive as those set forth in Section 6.1, provided further
that the Receiving Party shall be responsible for ensuring its Representatives’ compliance with, and shall be liable for
any breach by its Representatives of Section 6.1.

 

The Receiving Party shall
use reasonable care, at least as protective as the efforts it uses for its own confidential information, to safeguard the Disclosing
Party’s Confidential Information from use or disclosure other than as permitted hereby.

 

6.2       Exceptions.
If the Receiving Party becomes legally compelled to disclose any Confidential Information, including, but not limited to, pursuant
to state and federal securities laws of the United States, the Receiving Party shall:

 

(a)       provide
prompt written notice to the Disclosing Party so that the Disclosing Party may seek a protective or other appropriate remedy or
waive its rights under Section 6; and

 

(b)       disclose
only the portion of Confidential Information that it is legally required to furnish.

 

If a protective order
or other remedy is not obtained, or the Disclosing Party waives compliance under Section 6, the Receiving Parry shall, at the Disclosing
Party’s expense, use reasonable efforts to obtain assurance that confidential treatment will be afforded the Confidential
Information.

 

7.       Mutual
Representations and Warranties. Each Party represents and warrants to the other Party that:

 

(a)       it
is duly organized, validly existing, and in good standing as aI corporation or other entity as represented herein under the laws
and regulations of its jurisdiction or incorporation, organization, or chartering:

 

(b)       (i)
it has the full right, power, and authority to enter into this Agreement and to perform its obligations hereunder, and (ii) the
execution of this Agreement by a Representative whose signature is set forth at the end hereof has been duly authorized by all
necessary corporate action of the Party;

 

    9 

     

    

 

(c)       when
executed and delivered by the Party, this Agreement shall constitute the legal, valid, and binding obligation of that Party, enforceable
against that Party in accordance with its terms:

 

(d)       it
is the legal and beneficial owner of the entire right, title, and interest in and to its Background Intellectual Property;

 

(e)       it
has, and throughout the Term, will retain the unconditional and irrevocable right, power, and authority to grant the rights hereunder
to its Background Intellectual Property pursuant to the terms of this Agreement;

 

(f)       it
has not granted and will not grant any licenses or other contingent or non-contingent right, title, or interest under or relating
to the Background Intellectual Property, or will not be under any obligation, that does or will conflict with or otherwise affect
this Agreement, including any Party’s representations, warranties, or obligations or rights or licenses hereunder;

 

(g)       it
is under no obligation to any third Party that would interfere with its representations, warranties, or obligations under this
Agreement, and

 

(h)       there
neither are nor at any time during the Term will be any encumbrances, liens, or security interests involving its Background Intellectual
Property that would prevent the Parties from fulfilling its obligations under this Agreement.

 

8.       Wistron
Representations. Wistron represents and warrants to Bionik that Wistron possesses all requisite skill, know-how and technical
expertise to perform its obligations under this Agreement and to render advice in the field of the Joint Development Project(s).

 

9.       Warranty
Disclaimer. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS AGREEMENT, EACH PARTY DISCLAIMS ALL WARRANTIES OF ANY KIND,
WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, INCLUDING WITHOUT LIMITATION ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE, SAFETY, ABSENCE OF ERRORS. ACCURACY, COMPLETENESS OF RESULTS, THE PROSPECTS OR LIKELIHOOD OF’ SUCCESS
(FINANCIAL, REGULATORY, OR OTHERWISE) OF THE JOINT DEVELOPMENT PROJECTOR THE JOINT DEVELOPMENT PRODUCT.

 

10.       Indemnification.

 

10.1       Each
Parry hereto (the “Indemnitor”) shall fully defend, indemnify and hold harmless the other Party and its subsidiaries.
affiliates, officers, directors, employees and agents (collectively, “Party Indemnitees”) from and against any
and all allegations. claims, actions, judgments, settlements, damages, losses, liabilities, costs and expenses (including attorneys’
and experts’ fees and expenses) directly or indirectly arising out of or in connection with (i) any breach or alleged breach
by the Indemnitor of its obligations, representations, warranties or warranties under this Agreement, (ii) infringement or any
alleged infringement of any patents, trade secrets, trademarks, copyrights or other intellectual properties of a third party by
Party Indemnitees in relation to or in connection with Indemnitor’s intellectual properties incorporated in the Joint Development
Products, and (iii) any other actions by third parties against Party Indemnitees arising out of or related to this Agreement.

 

    10 

     

    

 

10.2       Each
Party Indemnitee (each hereinafter referred to as an “Indemnitee”), upon receipt or notice of any claim, complaint,
suit, proceeding or cause of action in respect of which the Indemnitee intends to claim, indemnification in accordance with this
Agreement, shall promptly give written notice of such claim, or the commencement of such action, or threat thereof to the Indemnitor
(referred to for the purposes of this Section as the “Indemnifying Party”); provided, however, that the failure
to provide such notice shall not relieve the Indemnifying Party of any of its obligations hereunder except to the extent the Indemnifying
Party is materially prejudiced by such failure. The Indemnifying Party shall be entitled at its own expense to participate in the
defense of such claim or action, or, if it shall elect, to assume control of such defense, in which event such defense will be
conducted by counsel chosen by such Indemnifying Party, which counsel may be any counsel reasonably satisfactory to the Indemnitee
against whom such claim is asserted, and the Indemnitee shall bear all fees and expenses of any additional counsel retained by
it. Notwithstanding the immediately preceding sentence, if the named parties in such action (including impleaded parties) include
the Indemnitee and the lndemnifying Party, and the lndemnitee shall have been advised by counsel that there may be a conflict between
the positions of the Indemnifying Party and the Indemnitee in conducting the defense of such action or that there are legal defenses
available to such Indemnitee different from or in addition to those available to the Indemnifying Party, then counsel for the Indemnitee
shall be entitled, if the Indemnitee so elects, to conduct the defense to the extent reasonably determined by such counsel to be
necessary to protect the interests of the Indemnitee, at the expense of the Indemnifying Party, if it is determined by agreement
of the Indemnifying Party and the Indemnitee or by al court of competent jurisdiction that the Indemnitee is entitled to indemnification
hereunder. If the Indemnifying Party shall elect not to assume the defense or such claim or action, then such Indemnifying Party
shall reimburse such Indemnitee for the reasonable fees and expenses of any counsel retained by it, and shall be hound by the results
obtained by the Indemnitee in respect of such claim or action if it is determined by agreement or the Indemnifying Party and the
Indemnitee or by a court of competent jurisdiction that the Indemnitee is entitled to indemnification hereunder for such action;
provided, however, that no such claim or action will be settled without the written consent of the Indemnifying Party, which consent
will not be unreasonably withheld, conditioned or delayed.

 

11.       [Intentionally
Omitted].

 

 

 

12.       Term
and Termination

 

12.1       Term.
This Agreement shall
be deemed
to have
commenced on
the Effective
Date and,
unless terminated
earlier
in accordance with
Section
12.2 or Section
12.3, shall
remain in force
until the completion
of the Joint
Development
Project
("Term").

 

12.2       Termination
for Convenience.

 

(a)
Notwithstanding
any other
provision
of this Agreement
to the contrary,
at any
time after
the one
(I) year anniversary
of the Effective
Date, either
Party may
terminate
this Agreement
in its sole discretion,
for any
or no reason,
by providing
thirty (30) Business
Days prior
written notice
to the other
Party. 

 

(b)
If, at any
time, any
Party
fails to achieve
a milestone
identified
in the Joint Development
Project
Plan, the Parties
may mutually
terminate
the Agreement
or agree,
in writing,
to an amendment
of the Joint
Development
Project
Plan extending the
due date
of the required
milestone performance.

 

12.3
      Termination
for Cause.

 

(a)
Either Party
may terminate
this Agreement
if the other
Party materially
breaches
this Agreement
and (if
such breach
is curable) fails
to cure
such breach
within ten (10)
Business
Days of being notified
in writing to
do so; provided,
however,
such ten
(10) Business
Day period may
be extended
at the non-breaching
Party's sole
discretion
where the
breaching
Party provides
to the
non-breaching
Party
a plan to
cure such
breach within
five (5) Business
Days of the
breach
and cure
notice.
Notwithstanding
the foregoing,
if such
breach
is not
curable,
the non-breaching
Party may immediately
terminate
this Agreement.

 

    11 

     

    

 

(b)
Either Party
may terminate
this Agreement
if the other
Party (i) becomes
insolvent
or admits its
inability
to pay
its debts
generally
as they
become
due; (ii)
becomes
subject,
voluntarily
or involuntarily,
to any proceeding
under any
domestic
or foreign
bankruptcy
or insolvency
law, which
is not
fully stayed
within thirty
(30) Business
Days or is not
dismissed
or vacated
within thirty (30)
Business
Days after
filing;
(iii)
is dissolved
or liquidated
or takes
any corporate
action for
such purpose;
(iv) makes
a general assignment
for the benefit
of creditors;
or (v) has
a receiver,
trustee,
custodian,
or similar agent
appointed
by order of any
court of competent
jurisdiction
to take charge
of or sell
any material
portion
of its property
or business.

 

12.4      
Effect of Termination.

 

(a)
Expiration
or termination
of this Agreement
shall not relieve
the Parties
of any
obligations
accruing prior
to the effective
date of expiration
or termination.
Any expiration
or termination
of this Agreement
shall not
preclude either
Party from
pursuing
all rights
and remedies
it may have
hereunder
at Law
or in equity
with respect
to any breach
of this Agreement
nor prejudice
either Party's
right to obtain
performance
of any
obligation.
On any
expiration
or termination
of this Agreement,
each Party shall immediately
cease all activities
concerning
the Joint
Development
Project.

 

(b)
On expiration
or termination
of this Agreement
all licenses to
Background
Intellectual Property and Developed Intellectual Property granted under this Agreement shall
automatically terminate as of the effective date of such expiration or termination. 

 

12.5     
Survival.
The rights
and obligations
of the Parties
set forth in this
Section 12.5
and Section
1 (Definitions),
Section
2.1(c)
(Joint Development
Project),
Section
5 (Developed
Intellectual
Property),
Section 6 (Confidentiality),
Section
10 (Indemnification),
and Section
13 (Miscellaneous),
and any
right,
obligation,
or required
performance
of the Parties
in this Agreement
which,
by its
express terms
or nature
and context
is intended
to survive
termination
or expiration
of this Agreement,
shall survive
any such
termination
or expiration.

 

13.      
Miscellaneous.

 

13.1      
Force Majeure.
Neither
Party shall
be liable
or responsible
to the
other Party,
nor be
deemed
to have
defaulted
under
or breached
this Agreement,
for any
failure or
delay
in fulfilling
or performing
any term
of this
Agreement,
when
and to
the extent
such
failure
or delay
is caused
by: 

 

(a) acts
of God; 

 

(b)
flood,
fire, or
explosion;

 

(c)
war,
terrorism,
invasion,
riot,
or other
civil unrest;

 

(d)
embargoes
or blockades
in effect
on or after
the date
of this Agreement;

 

(e)
national
or regional
emergency;

 

(f)
strikes,
labor
stoppages
or slowdowns,
or other
industrial
disturbances;

 

(g)
any passage
of law or
governmental
order,
rule, regulation,
or direction,
or any
action
taken
by a governmental
or public
authority,
including
imposing
an embargo,
export or import
restriction,
quota,
or other
restriction
or prohibition;
or 

 

    12 

     

    

 

(h)
national
or regional
shortage
of adequate
power or
telecommunications
or transportation
facilities.

 

(each
of the
foregoing,
a "Force
Majeure"),
in each case,
provided
that (i)
such
event
is outside
the reasonable
control
of the affected
Party; (ii)
the affected
Party
provides
prompt notice
to the
other
Party, stating
the period
of time
the occurrence
is expected
to continue;
and (iii)
the affected
Party
uses diligent
efforts
to end
the failure
or delay
and minimize
the effects
of such
Force Majeure
event.
A Party may
terminate
this Agreement
if a Force
Majeure
event affecting
the other
Party continues
substantially
uninterrupted
for a period
of sixty
(60) Business
Days or more.
Unless the
Party
terminates
this Agreement
pursuant
to the
preceding
sentence,
all timelines
in the Joint
Development
Project
Plan shall
automatically
be extended
for a period
up to the
duration
of the Force
Majeure event.

 

13.2      
Further Assurances. Each Party shall, upon the reasonable request of the other Party, promptly execute such
documents
and perform
such
acts
as may
be necessary
to give
full effect
to the terms of this Agreement.

 

13.3       Independent
Contractors. The relationship between the Parties is that of Independent contractors. Nothing contained in this Agreement shall
be construed as creating any agency, partnership, joint venture, or other form of joint enterprise, employment, or fiduciary relationship
between the Parties, and neither Party shall have authority to contract for or bind the other Party in any manner whatsoever 

 

13.4       No
Public Statements or Use of Trademarks. Except as otherwise required by Law, including but not limited to filing requirements
pursuant to the Securities Exchange Act of 1934, neither Party shall issue or release any announcement, statement, press release,
or other publicity or marketing materials relating to this Agreement, or, unless expressly permitted under this Agreement, otherwise
use the other Parry’s trademarks, service marks, trade names, logos, domain names, or other indicia of source, association,
or sponsorship, in each case, without the prior written consent of the other Party. which shall not be unreasonably withheld. conditioned
or delayed.

 

13.5       Notices.
All notices, requests, consents, claims, demands, waivers, and other communications hereunder shall be in writing and shall be
deemed to have been given in accordance with this Section:

 

	If to Bionik:	
        483 Bay Street, N105

        Toronto, Ontario M5G 2C9

        Facsimile: [____]

        Email: pb@bioniklabs.com

        Attention: Peter Bloch

         

	With a copy to:	
        Ruskin Moscou Faltischek, P.C.

        1425 RXR Plaza

        East Tower, 15th Floor

        Uniondale, New York 11556

        Attn: Stephen E. Fox, Esq.

         

	If to Wistron:	
        21F, No.88, Hsin Tai Wu Rd., Xizhi Dist.

        New Taipei City 22181, Taiwan (R.O.C.)

        Facsimile: +866-6612-1425

        Email: brian_chong@wistron.com

        Attention: Brian Chong

         

	With a copy to:	
        21F, No.88, Hsin Tai Wu Rd., Xizhi Dist.

        New Taipei City 22181, Taiwan (R.O.C.)

        Facsimile: +866-6612-1425

        Email: gem_hsieh@wistron.com

        Attention: Gem Hsieh

         

 

    13 

     

    

 

Notices sent in accordance with this Section
shall be deemed effectively given: (a) when received, if delivered by hand (with written confirmation of receipt); (b) when received,
if sent by a nationally recognized overnight courier (receipt requested): (c) on the date sent by facsimile or e-mail (in each
case, with confirmation of transmission), if sent during normal business hours of the recipient, and on the next Business Day if
sent after normal business hours of the recipient; or (d) on the third (3rd) Business Day after the date mailed, by
certified or registered mail, return receipt requested, postage prepaid.

 

13.6       Interpretation.
For purposes or this Agreement, (a) the words “include,” “includes,” and “including” shall
be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c)
the words “herein,” “hereof,” “hereby,” “hereto,” and “hereunder” refer
to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Sections and Schedules refer to
the Sections of and Schedules attached to, this Agreement; (y) to an agreement, instrument, or other document means such agreement,
instrument, or other document as amended, supplemented, and modified from time to time to the extent permitted by the provisions
thereof; and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and
any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction
or interpretation against the Party, drafting an instrument or causing any instrument to be drafted. Any Schedules referred to
herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim
herein.

 

13.7       Privileged
Communications. It is expected that, in furtherance of this Agreement, the Parties will, from time to time, disclose to one
another privileged communications with counsel, including opinions, memoranda, letters, and other written, electronic, and verbal
communications. Such disclosures arc made with the understanding that they shall remain confidential and that they are made in
connection with the shared community of legal interests existing between the Parties, including the community of legal interests
in avoiding infringement of any valid, enforceable third Party patents and in obtaining patent protection for Developed Intellectual
Property.

 

13.8       Headings.
The headings in this Agreement arc for reference only and shall not affect the interpretation of this Agreement.

 

13.9       Entire
Agreement. This Agreement, together with all Schedules and any other documents incorporated herein by reference, including
the Mutual Non-Disclosure Agreement entered into by and between the Parties constitutes the sole and entire agreement of the Parties
to this Agreement with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings
and agreements, both written and oral, with respect to such subject matter.

 

13.10       Assignment.
Neither Party shall assign or otherwise transfer any of its rights, or delegate or otherwise transfer any of its obligations or
performance, under this Agreement, in each case whether voluntarily, involuntarily, by operation of law or otherwise, without the
other Party’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. For purposes
of the preceding sentence, and without limiting its generality, any merger, consolidation, or reorganization involving a Party
(regardless of whether that Patty is a surviving or disappearing entity) shall be deemed to be a transfer of rights, obligations,
or performance under this Agreement for which the other Party’s prior written consent is required. No delegation or other
transfer will relieve the other party of any of its obligations or performance under this Agreement. Any purported assignment.
delegation, or transfer in violation of this Section 13.10 is void. This Agreement is binding upon and inures to the benefit of
the Parties hereto and their respective permitted successors and assigns.

 

    14 

     

    

 

13.11       No
Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties hereto and their respective successors and
permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable
right, benefit, or remedy of any nature whatsoever, under or by reason of this Agreement.

 

13.12       Amendment;
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 writing
and signed by the waiving Party. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising,
any rights, remedy, power, or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power, or privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, remedy, power, or privilege.

 

13.13       Severability.
If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality,
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term
or provision in any other jurisdiction. Upon a determination that any term or other provision is invalid, illegal, or unenforceable,
the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as
closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally
contemplated to the greatest extent possible.

 

13.14       Governing
Law; Submission to Jurisdiction.

 

(a)       This
Agreement and all related documents, and all matters arising out of or relating to this Agreement, are governed by, and construed
in accordance with, the laws of the State of New York, United States of America, without regard to the conflict of laws provisions
thereof to the extent such principles or rules would require or permit the application of the laws or any jurisdiction other than
those of the State of New York.

 

(b)       Any
dispute hereunder shall be instituted exclusively in the federal courts of the United States or the courts of the State of New
York in each case located in the city of New York and County of New York, and each Party irrevocably submits to the exclusive jurisdiction
of such courts in any such suit, action, or proceeding. Service of process, summons, notice, or other document by mail to such
Party’s address set forth herein shall be effective service of process for any suit, action, or other proceeding brought
in any such court.

 

13.15       Waiver
of Jury Trial. Each Party irrevocably and unconditionally waives any right it may have to a trial by jury for any court proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby for which a Party may bring such a court proceeding.

 

13.16       Equitable
Relief. In any claim for equitable relief, each Party acknowledges that a breach by the other Party of this Agreement may cause
the non-breaching Party irreparable harm, for which an award of damages would not be adequate compensation and, in the event of
such a breach or threatened breach, the non-breaching Party shall be entitled to seek equitable relief including in the form of
a restraining order, orders for preliminary or permanent injunction, specific performance, and any other relief that may be available
from any court, and the Parties hereby waive any requirement for the securing or posting of any bond or the showing of actual monetary
damages in connection with such relief. These remedies shall not be deemed to be exclusive but shall be in addition to all other
remedies available under this Agreement at law or in equity, subject to any express exclusions or limitations in this Agreement
to the contrary.

 

    15 

     

    

 

13.17       Attorneys’
Fees. In any dispute hereunder, the prevailing Party shall be entitled to recover its reasonable attorneys’ fees and
court costs from the non-prevailing Party.

 

13.18       Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all or which together shall be deemed
to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail, or other means of electronic
transmission (to which a PDF copy is attached) shall be deemed to have the same legal effect as delivery of an original signed
copy or this Agreement.

 

[Remainder
of Page Intentionally Left Blank; Signature Page Follows]

 

    16 

     

    

 

IN WITNESS WHEREOF, the Parties hereto have
executed this Agreement effective as of the Effective Date.

 

	 	BIONIK LABORATORIES CORP.
	 	 
	 	 
	 	 
	 	By:  /s/ Peter Bloch                                  
	 	Name:  Peter Bloch                                  
	 	Title:    CEO                                             
	 	 
	 	 
	 	 
	 	WISTRON MEDICAL TECH HOLDING COMPANY
	 	 
	 	 
	 	 
	 	By:  /s/ Gem Hsich                                     
	 	Name:  Gem Hsich                                     
	 	Title:    Chief of MBDC                             

 

    17 

     

    

 

SCHEDULE 1

 

BIONIK BACKGROUND INTELLECTUAL PROPERTY

 

 

Patents and other intellectual property described from time
to time in Bionik’s public filings with the U.S. Securities and Exchange Commission, including with respect to the ARKE and
inMotion products.

 

    18 

     

    

 

SCHEDULE 2

 

WISTRON BACKGROUND INTELLECTUAL PROPERTY

 

    19 

     

    

 

SCHEDULE 2.7

 

TERRITORY

 

 

Nations of continental Asia, including Greater China, Japan
and Southeast Asia.

 

    20

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