Document:

EXHIBIT 10.3

 

TAX SHARING AGREEMENT 

 

DATED AS OF [                    ]

 

BY AND BETWEEN 

 

HARVARD BIOSCIENCE, INC. 

 

AND 

 

HARVARD APPARATUS REGENERATIVE TECHNOLOGY,
INC.

 

(for itself and on behalf of each member
of the SpinCo Group) 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	Section 1.	Definition of Terms	1
	 	 	 
	Section 2.	Allocation of Tax Liabilities	8
	 	 	 
	Section 2.01	Distributing Liability	8
	 	 	 
	Section 2.02	Allocation of United States Federal Income Tax and Federal Other Tax	8
	 	 	 
	Section 2.03	Allocation of State Income and State Other Taxes	8
	 	 	 
	Section 2.04	Allocation of Foreign Taxes	9
	 	 	 
	Section 2.05	Certain Transaction and Other Taxes	9
	 	 	 
	Section 2.06	SpinCo Group Attributes	10
	 	 	 
	Section 3.	Proration of Taxes	10
	 	 	 
	Section 4.	Preparation and Filing of Tax Returns	10
	 	 	 
	Section 4.01	General	10
	 	 	 
	Section 4.02	Distributing’s Responsibility	10
	 	 	 
	Section 4.03	SpinCo’s Responsibility	11
	 	 	 
	Section 4.04	Tax Accounting Practices	11
	 	 	 
	Section 4.05	Consolidated or Combined Tax Returns	12
	 	 	 
	Section 4.06	Right to Review Tax Returns	12
	 	 	 
	Section 4.07	SpinCo Carrybacks, Carryforwards and Claims for Refund	12
	 	 	 
	Section 4.08	Apportionment of Earnings and Profits and Tax Attributes	12
	 	 	 
	Section 5.	Tax Payments	12
	 	 	 
	Section 5.01	Payment of Separate Company Taxes	12
	 	 	 
	Section 5.02	Indemnification Payments	12
	 	 	 
	Section 6. 	Tax Benefits	13
	 	 	 
	Section 6.01	Tax Benefits	13
	 	 	 
	Section 6.02	Distributing and SpinCo Income Tax Deductions in Respect of Certain Equity Awards and Incentive Compensation	13
	 	 	 
	Section 7. 	Tax-Free Status	14
	 	 	 
	Section 7.01	Tax Opinions/Rulings and Representation Letters	14
	 	 	 
	Section 7.02	Restrictions on SpinCo	14
	 	 	 
	Section 7.03	Restrictions on Distributing	16
	 	 	 
	Section 7.04	Procedures Regarding Opinions and Rulings	16
	 	 	 
	Section 7.05	Liability for Tax-Related Losses	17

  

    	 

    	 

    

  

	Section 8.	Assistance and Cooperation	17
	 	 	 
	Section 8.01	Assistance and Cooperation	17
	 	 	 
	Section 8.02	Income Tax Return Information	18
	 	 	 
	Section 9. 	Tax Records	18
	 	 	 
	Section 9.01	Retention of Tax Records	18
	 	 	 
	Section 9.02	Access to Tax Records	18
	 	 	 
	Section 10.	Tax Contests	18
	 	 	 
	Section 10.01	Notice	18
	 	 	 
	Section 10.02	Control of Tax Contests	19
	 	 	 
	Section 11.	Effective Date; Termination of Prior Intercompany Tax Allocation Agreements	19
	 	 	 
	Section 12.	Survival of Obligations	20
	 	 	 
	Section 13.	Treatment of Payments; Tax Gross Up	20
	 	 	 
	Section 13.01	Treatment of Tax Indemnity and Tax Benefit Payments	20
	 	 	 
	Section 13.02	Tax Gross Up	20
	 	 	 
	Section 13.03	Interest Under This Agreement	20
	 	 	 
	Section 14.	Disagreements	20
	 	 	 
	Section 15.	Reserved	20
	 	 	 
	Section 16.	Expenses	20
	 	 	 
	Section 17.	General Provisions	21
	 	 	 
	Section 17.01	Addresses and Notices	21
	 	 	 
	Section 17.02	Binding Effect	21
	 	 	 
	Section 17.03	Waiver	21
	 	 	 
	Section 17.04	Severability	21
	 	 	 
	Section 17.05	Authority	21
	 	 	 
	Section 17.06	Further Action	21
	 	 	 
	Section 17.07	Integration	22
	 	 	 
	Section 17.08	Construction	22
	 	 	 
	Section 17.09	No Double Recovery	22
	 	 	 
	Section 17.10	Counterparts	22
	 	 	 
	Section 17.11	Governing Law	22
	 	 	 
	Section 17.12	Jurisdiction	22
	 	 	 
	Section 17.13	Amendment	22
	 	 	 
	Section 17.14	SpinCo Subsidiaries	22
	 	 	 
	Section 17.15	Successors	22
	 	 	 
	Section 17.16	Injunctions	22

 

    	 

    	 

    

 

TAX SHARING AGREEMENT

 

This TAX SHARING AGREEMENT (this “Agreement”)
is entered into as of [            ], by and among HARVARD BIOSCIENCE,
INC., a Delaware corporation (“Distributing”), and HARVARD APPARATUS REGENERATIVE TECHNOLOGY, INC., a
Delaware corporation and a wholly owned subsidiary of Distributing (“SpinCo”), for itself and on behalf
of each member of the SpinCo Group (as defined below).

 

RECITALS 

 

WHEREAS, the Board of Directors of Distributing
has determined that it would be appropriate and desirable to completely separate the regenerative medicine device business of Distributing
from the life science tools research business of Distributing;

 

WHEREAS, as of the date hereof, Distributing
is the common parent of an affiliated group of corporations, including SpinCo, which has elected to file consolidated Federal income
tax returns;

 

WHEREAS, pursuant to the Separation and
Distribution Agreement (as defined below), Distributing and SpinCo have agreed to separate the regenerative medicine device business
from Distributing generally by means of the Distribution;

 

WHEREAS, prior to the Distribution, Distributing
intends to cause it and its applicable Subsidiaries to contribute the HART Assets to SpinCo and its applicable Subsidiaries (and
SpinCo and its applicable Subsidiaries will assume the HART Liabilities), each as defined in and more fully described in the Separation
and Distribution Agreement;

 

WHEREAS, prior to the Distribution, Distributing
and SpinCo will also enter into an underwriting agreement to conduct an offer and sale to the public of a limited number of shares
of the common stock, par value $0.01 per share, of SpinCo (the “Offering,” and the date on which such
Offering occurs, the “Offering Date”);

 

WHEREAS, as a result of the Distribution,
SpinCo and its subsidiaries will cease to be members of the affiliated group (as that term is defined in Section 1504 of the
Code) of which Distributing is the common parent (the “Deconsolidation”); and

 

WHEREAS, the parties desire to provide
for and agree upon the allocation between the parties of Liabilities for Taxes arising prior to, as a result of, and subsequent
to the Distribution, and to provide for and agree upon other matters relating to Taxes;

 

NOW THEREFORE, in consideration of the
mutual agreements contained herein, the parties hereby agree as follows:

 

Section 1. Definition of Terms.
For purposes of this Agreement (including the recitals hereof), the following terms have the following meanings, and capitalized
terms used but not otherwise defined herein shall have the meaning ascribed to them in the Separation and Distribution Agreement:

 

“Accounting Cutoff Date”
means, with respect to SpinCo, any date as of the end of which there is a closing of the financial accounting records for such
entity.

 

“Active Trade or Business”
means the active conduct (as defined in Section 355(b)(2) of the Code and the regulations thereunder) by SpinCo and its “separate
affiliated group” (as defined in Section 355(b)(3)(B) of the Code) of the HART Business as conducted immediately prior
to the Distribution.

 

“Adjustment Request”
means any formal or informal claim or request filed with any Tax Authority, or with any administrative agency or court, for the
adjustment, refund, or credit of Taxes, including (a) any amended Tax return claiming adjustment to the Taxes as reported
on a Tax Return or, if applicable, as previously adjusted, (b) any claim for equitable recoupment or other offset, and (c) any
claim for refund or credit of Taxes previously paid.

 

“Affiliate” means
any entity that is directly or indirectly “controlled” by either the person in question or an Affiliate of such person.
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a person, whether through ownership of voting securities, by contract or otherwise. The term
Affiliate shall refer to Affiliates of a person as determined immediately after the Distribution.

 

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“Agreement” shall
have the meaning provided in the first sentence of this Agreement.

 

“Board Certificate”
shall have the meaning set forth in Section 7.02(e) of this Agreement.

 

“Business Day”
means a day (other than Saturday or Sunday) on which banks are generally open in the State of New York, USA for ordinary business.

 

“Code” means
the U.S. Internal Revenue Code of 1986, as amended.

 

“Company” means
Distributing or SpinCo.

 

“Company Indemnifying Party”
shall have the meaning set forth in Section 5.02(b) of this Agreement.

 

“Contribution”
means the contribution of assets, by Distributing itself directly to SpinCo itself pursuant to Section 2.1(a) of the Separation
and Distribution Agreement.

 

“Controlling Party”
shall have the meaning set forth in Section 10.02(c) of this Agreement.

 

“Deconsolidation”
shall have the meaning provided in the Recitals.

 

“Deconsolidation Date”
means the last date on which SpinCo qualifies as a member of the affiliated group (as defined in Section 1504 of the Code)
of which Distributing is the common parent.

 

“DGCL” means
the Delaware General Corporation Law.

 

“Distributing”
shall have the meaning provided in the first sentence of this Agreement.

 

“Distributing Affiliated Group”
shall have the meaning provided in the definition of “Distributing Federal Consolidated Income Tax Return.”

 

“Distributing Federal Consolidated
Income Tax Return” means any United States federal Income Tax Return for the affiliated group (as that term is defined
in Section 1504 of the Code and the regulations thereunder) of which Distributing is the common parent (the “Distributing
Affiliated Group”).

 

“Distributing Full Taxpayer”
means the assumption that the Distributing Affiliated Group (a) is subject to the highest marginal regular statutory income
Tax rate, (b) has sufficient taxable income to permit the realization or receipt of the relevant Tax Benefit at the earliest
possible time, and (c) is not subject to the alternative minimum tax.

 

“Distributing Group”
means Distributing and its Affiliates, excluding any entity that is a member of the SpinCo Group.

 

“Distributing Group Transaction
Returns” shall have the meaning set forth in Section 4.04(b) of this Agreement.

 

“Distributing Separate Return”
means any Separate Return of Distributing or any member of the Distributing Group.

 

“Distributing State Combined
Income Tax Return” means a consolidated, combined or unitary State Income Tax Return that actually includes, by election
or otherwise, one or more members of the Distributing Group together with one or more members of the SpinCo Group.

 

“Federal Income Tax”
means any Tax imposed by Subtitle A of the Code, and any interest, penalties, additions to tax, or additional amounts in respect
of the foregoing.

 

“Federal Other Tax”
means any Tax imposed by the federal government of the United States of America other than any Federal Income Taxes, and any interest,
penalties, additions to tax, or additional amounts in respect of the foregoing.

 

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“Fifty-Percent or Greater Interest”
shall have the meaning ascribed to such term for purposes of Sections 355(d) and (e) of the Code.

 

“Filing Date”
shall have the meaning set forth in Section 7.05(b) of this Agreement.

 

“Final Determination”
means the final resolution of liability for Tax, which resolution may be for a specific issue or adjustment or for a taxable period,
(a) by IRS Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the taxpayer,
or by a comparable form under the laws of a State, local, or foreign taxing jurisdiction, except that a Form 870 or 870-AD or comparable
form shall not constitute a Final Determination to the extent that it reserves (whether by its terms or by operation of law) the
right of the taxpayer to file a claim for refund or the right of the Tax Authority to assert a further deficiency in respect of
such issue or adjustment or for such taxable period (as the case may be); (b) by any audit assessment of taxes or other examination
by any taxing authorities, proceeding or appeal of such proceedings relating to taxes whether administrative or judicial including
proceedings related to competent authority determinations, or by a decision, judgment, decree, or other order by a court of competent
jurisdiction, which has become final and unappealable; (c) by a closing agreement or accepted offer in compromise under Sections
7121 or 7122 of the Code, or a comparable agreement under the laws of a State, local, or foreign taxing jurisdiction; (d) by
any allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all periods during which
such refund may be recovered (including by way of offset) by the jurisdiction imposing such Tax; (e) by a final settlement
resulting from a treaty-based competent authority determination; or (f) by any other final disposition, including by reason
of the expiration of the applicable statute of limitations or by mutual agreement of the parties.

 

“Foreign Income Tax”
means any Tax imposed by any foreign country or any possession of the United States, or by any political subdivision of any foreign
country or United States possession, which is an income tax as defined in Treasury Regulation Section 1.901-2, and any interest,
penalties, additions to tax, or additional amounts in respect of the foregoing.

 

“Foreign Other Tax”
means any Tax imposed by any foreign country or any possession of the United States, or by any political subdivision of any foreign
country or United States possession, other than any Foreign Income Taxes, and any interest, penalties, additions to tax, or additional
amounts in respect of the foregoing.

 

“Foreign Tax”
means any Foreign Income Taxes or Foreign Other Taxes.

 

“Group” means
the Distributing Group or the SpinCo Group, or both, as the context requires.

 

“Income Tax”
means any Federal Income Tax, State Income Tax or Foreign Income Tax.

 

“Indemnitee”
shall have the meaning set forth in Section 13.03 of this Agreement.

 

“Indemnitor”
shall have the meaning set forth in Section 13.03 of this Agreement.

 

“Internal Restructuring”
shall have the meaning set forth in Section 7.02(f) of this Agreement.

 

“IRS” means the
United States Internal Revenue Service.

 

“Joint Return”
shall mean any Return of a member of the Distributing Group or the SpinCo Group that is not a Separate Return.

 

“Non-Controlling Party”
shall have the meaning set forth in Section 10.02(c) of this Agreement.

 

“Notified Action”
shall have the meaning set forth in Section 7.04(a) of this Agreement.

 

“Offering” shall
have the meaning set forth in the Recitals.

 

“Offering Date”
shall have the meaning set forth in the Recitals.

 

“Other Tax” means
any Federal Other Tax, State Other Tax, or Foreign Other Tax.

 

“Past Practices”
shall have the meaning set forth in Section 4.04(a) of this Agreement.

 

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“Payment Date”
means (i) with respect to any Distributing Federal Consolidated Income Tax Return, the due date for any required installment
of estimated taxes determined under Section 6655 of the Code, the due date (determined without regard to extensions) for filing
the return determined under Section 6072 of the Code, and the date the return is filed, and (ii) with respect to any
other Tax Return, the corresponding dates determined under the applicable Tax Law.

 

“Payor” shall
have the meaning set forth in Section 5.02(a) of this Agreement.

 

“Person” means
an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof, without
regard to whether any entity is treated as disregarded for U.S. federal income tax purposes.

 

“Post-Deconsolidation Period”
means any Tax Period beginning after the Deconsolidation Date, and, in the case of any Straddle Period, the portion of such Straddle
Period beginning the day after the Deconsolidation Date.

 

“Pre-Deconsolidation Period”
means any Tax Period ending on or before the Deconsolidation Date, and, in the case of any Straddle Period, the portion of such
Straddle Period ending on the Deconsolidation Date.

 

“Privilege” means
any privilege that may be asserted under applicable law, including, any privilege arising under or relating to the attorney-client
relationship (including the attorney-client and work product privileges), the accountant-client privilege and any privilege relating
to internal evaluation processes.

 

“Proposed Acquisition Transaction”
means a transaction or series of transactions (or any agreement, understanding or arrangement, within the meaning of Section 355(e)
of the Code and Treasury Regulation Section 1.355-7, or any other regulations promulgated thereunder, to enter into a transaction
or series of transactions), whether such transaction is supported by SpinCo management or shareholders, is a hostile acquisition,
or otherwise, as a result of which SpinCo would merge or consolidate with any other Person or as a result of which any Person or
any group of related Persons would (directly or indirectly) acquire, or have the right to acquire, from SpinCo and/or one or more
holders of outstanding shares of SpinCo Capital Stock, a number of shares of SpinCo Capital Stock that would, when combined with
any other changes in ownership of SpinCo Capital Stock pertinent for purposes of Section 355(e) of the Code, comprise 40%
or more of (A) the value of all outstanding shares of stock of SpinCo as of the date of such transaction, or in the case of
a series of transactions, the date of the last transaction of such series, or (B) the total combined voting power of all outstanding
shares of voting stock of SpinCo as of the date of such transaction, or in the case of a series of transactions, the date of the
last transaction of such series. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (A) the
adoption by SpinCo of a shareholder rights plan or (B) issuances by SpinCo that satisfy Safe Harbor VIII (relating to acquisitions
in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of
an employer) of Treasury Regulation Section 1.355-7(d). For purposes of determining whether a transaction constitutes an indirect
acquisition, any recapitalization resulting in a shift of voting power or any redemption of shares of stock shall be treated as
an indirect acquisition of shares of stock by the exchanging or non-exchanging shareholders, as applicable. This definition and
the application thereof are intended to monitor compliance with Section 355(e) of the Code and shall be interpreted accordingly.
Any clarification of, or change in, the statute or regulations promulgated under Section 355(e) of the Code shall be incorporated
in this definition and its interpretation.

 

“Representation Letters”
means the representation letters and any other materials (including, without limitation, the Ruling Request) delivered or deliverable
by Distributing and others in connection with the rendering by Tax Advisors, and/or the issuance by the IRS, of the Tax Opinions/Rulings.

 

“Required Party”
shall have the meaning set forth in Section 5.02(a) of this Agreement.

 

“Responsible Company”
means, with respect to any Tax Return, the Company having responsibility for preparing and filing such Tax Return under this Agreement.

 

“Retention Date”
shall have the meaning set forth in Section 9.01 of this Agreement.

 

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“Ruling” means
any private letter ruling (and any supplemental private letter ruling, including without limitation, any Supplemental Ruling) issued
by the IRS to Distributing in connection with the Transactions.

 

“Ruling Documents”
means the Ruling and the Ruling Request.

 

“Ruling Request”
means any letter filed by Distributing with the IRS requesting a ruling regarding certain tax consequences of the Transactions
(including all attachments, exhibits, and other materials submitted with such ruling request letter) and any amendment or supplement
to such ruling request letter.

 

“Section 41 Credit”
means any credit allowed pursuant to Section 41 of the Code, pertaining to research for credit.

 

“Section 45K Credit”
means any credit allowed pursuant to Section 45K of the Code, including any credit allowed pursuant to Section 29 of
the Code prior to the redesignation of Section 29 as Section 45K.

 

“Section 48B Credit”
means any credit allowed pursuant to Section 48B of the Code.

 

“Section 199 Deduction”
means any deduction allowed pursuant to Section 199 of the Code.

 

“Section 7.02(e) Acquisition
Transaction” means any transaction or series of transactions that is not a Proposed Acquisition Transaction but would
be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed Acquisition Transaction were 25%
instead of 40%.

 

“Separate Return”
means (a) in the case of any Tax Return of any member of the SpinCo Group (including any consolidated, combined or unitary
return), any such Tax Return that does not include any member of the Distributing Group and (b) in the case of any Tax Return
of any member of the Distributing Group (including any consolidated, combined or unitary return), any such Tax Return that does
not include any member of the SpinCo Group.

 

“Separation and Distribution
Agreement” means the Separation and Distribution Agreement, as amended from time to time, by and among Distributing
and SpinCo dated [_____________].

 

“Specified Election”
means the election set forth in Section 4.04(c), but solely to the extent such election is claimed as being subject to the
application of Section 168(k)(5) (or any similar provision of state income Tax law, if applicable).

 

“Specified Excess Income Taxes”
means Income Taxes resulting from a reduction in SpinCo Federal Attributes that arose from a Specified Election in an amount equal
to the excess of (x) the amount of such SpinCo Federal Attributes claimed as being subject to the application of Section 168(k)(5)
(or any similar provision of state income Tax law, if applicable) over (y) the amount of such Tax Attributes not claimed as
being subject to the application of Section 168(k)(5) (or any similar provision of state income Tax law, if applicable).

 

“Specified Excess Tax Benefit”
means a Tax Benefit resulting from an adjustment pursuant to a Final Determination to a Tax Attribute that arose from a Specified
Election in an amount equal to the excess of (x) the amount of such Tax Attribute claimed as being subject to the application
of Section 168(k)(5) (or any similar provision of state income Tax law, if applicable) over (y) the amount of such Tax
Attribute not claimed as being subject to the application of Section 168(k)(5) (or any similar provision of state income Tax
law, if applicable).

 

“SpinCo” shall
have the meaning provided in the first sentence of this Agreement.

 

“SpinCo Capital Stock”
means all classes or series of capital stock of SpinCo, including (i) the SpinCo Common Stock, (ii) all options, warrants
and other rights to acquire such capital stock and (iii) all instruments properly treated as stock in SpinCo for U.S. federal
income tax purposes.

 

“SpinCo Carried Item”
means any net operating loss, net capital loss, excess tax credit, or other similar Tax item of any member of the SpinCo Group
which may or must be carried from one Tax Period to another prior Tax Period, or carried from one Tax Period to another subsequent
Tax Period, under the Code or other applicable Tax Law.

 

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“SpinCo Common Stock”
has the meaning given to HART Common Stock in the Separation and Distribution Agreement.

 

“SpinCo Federal Attribute”
shall have the meaning set forth in Section 2.02(a)(ii).

 

“SpinCo Federal Consolidated
Income Tax Return” shall mean any United States federal Income Tax Return for the affiliated group (as that term
is defined in Section 1504 of the Code) of which SpinCo is the common parent.

 

“SpinCo Full Taxpayer”
means the assumption that the SpinCo Group (a) is subject to the highest marginal regular statutory income Tax rate that would
be applicable to SpinCo if it filed Tax Returns on a standalone basis, (b) has sufficient taxable income to permit the realization
or receipt of the relevant Tax Benefit at the earliest possible time, and (c) is not subject to the alternative minimum tax.

 

“SpinCo Group”
means SpinCo and its Affiliates, as determined immediately after the Distribution.

 

“SpinCo Group Attributes”
shall have the meaning set forth in Section 2.03(a)(ii).

 

“SpinCo Separate Return”
means any Separate Return of SpinCo or any member of the SpinCo Group.

 

“SpinCo State Attribute”
shall have the meaning set forth in Section 2.03(a)(ii).

 

“State Income Tax”
means any Tax imposed by any State of the United States or the District of Columbia or by any political subdivision of any such
State or the District of Columbia which is imposed on or measured by net income, including state and local franchise or similar
Taxes measured by net income, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

 

“State Other Tax”
means any Tax imposed by any State of the United States or the District of Columbia or by any political subdivision of any such
State or the District of Columbia other than any State Income Taxes, and any interest, penalties, additions to tax, or additional
amounts in respect of the foregoing.

 

“State Tax” means
any State Income Taxes or State Other Taxes.

 

“Straddle Period”
means any Tax Period that begins on or before and ends after the Deconsolidation Date.

 

“Supplemental Ruling”
means any ruling issued by the IRS in connection with the spin-off other than a ruling in response to Distributing’s initial
request for a private letter ruling.

 

“Tax” or “Taxes”
means any income, gross income, gross receipts, profits, capital stock, franchise, withholding, payroll, social security, workers
compensation, unemployment, disability, property, ad valorem, stamp, excise, severance, occupation, service, sales, use,
license, lease, transfer, import, export, value added, alternative minimum, estimated or other tax (including any fee, assessment,
or other charge in the nature of or in lieu of any tax) imposed by any governmental entity or political subdivision thereof, and
any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

 

“Tax Attribute”
shall mean a net operating loss, net capital loss, unused investment credit, unused foreign tax credit, excess charitable contribution,
general business credit or any other Tax Item that could reduce a Tax.

 

“Tax Authority”
means, with respect to any Tax, the governmental entity or political subdivision thereof that imposes such Tax, and the agency
(if any) charged with the collection of such Tax for such entity or subdivision.

 

“Tax Benefit”
means any refund, credit, or other reduction in otherwise required Tax payments.

 

“Tax Contest”
means an audit, review, examination, or any other administrative or judicial proceeding with the purpose or effect of redetermining
Taxes (including any administrative or judicial review of any claim for refund).

 

“Tax Control”
means the definition of “control” set forth in Section 368(c) of the Code (or in any successor statute or provision),
as such definition may be amended from time to time.

 

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“Tax Dispute”
shall have the meaning set forth in Section 14 of this Agreement.

  

“Tax-Free Status”
means the qualification of the Contribution and Distribution, taken together, each (a) as a reorganization described in Sections
355(a) and 368(a)(1)(D) of the Code, (b) as a transaction in which the stock distributed thereby is “qualified property”
for purposes of Sections 355(d), 355(e) and 361(c) of the Code and (c) as a transaction in which Distributing, SpinCo, and
the shareholders of Distributing recognize no income or gain for U.S. federal income tax purposes pursuant to Sections 355, 361
and 1032 of the Code, other than, in the case of Distributing and SpinCo, intercompany items or excess loss accounts taken into
account pursuant to the Treasury Regulations promulgated pursuant to Section 1502 of the Code.

 

“Tax Item” means
any item of income, gain, loss, deduction, credit, recapture of credit or any other item which increases or decreases Taxes paid
or payable.

 

“Tax Law” means
the law of any governmental entity or political subdivision thereof relating to any Tax.

 

“Tax Opinions/Rulings”
means the opinion or opinions of Tax Advisors deliverable to Distributing in connection with the Contribution and the Distribution
and/or the Ruling or Rulings.

 

“Tax Period”
means, with respect to any Tax, the period for which the Tax is reported as provided under the Code or other applicable Tax Law.

 

“Tax Records”
means any Tax Returns, Tax Return workpapers, documentation relating to any Tax Contests, and any other books of account or records
(whether or not in written, electronic or other tangible or intangible forms and whether or not stored on electronic or any other
medium) required to be maintained under the Code or other applicable Tax Laws or under any record retention agreement with any
Tax Authority.

 

“Tax-Related Losses”
means (i) all federal, state and local Taxes (including interest and penalties thereon) imposed pursuant to any settlement,
Final Determination, judgment or otherwise; (ii) all accounting, legal and other professional fees, and court costs incurred
in connection with such Taxes; and (iii) all costs, expenses and damages associated with stockholder litigation or controversies
and any amount paid by Distributing (or any Distributing Affiliate) or SpinCo (or any SpinCo Affiliate) in respect of the liability
of shareholders, whether paid to shareholders or to the IRS or any other Tax Authority, in each case, resulting from the failure
of the Contribution and the Distribution, taken together, to have Tax-Free Status.

 

“Tax Return”
or “Return” means any report of Taxes due, any claim for refund of Taxes paid, any information return
with respect to Taxes, or any other similar report, statement, declaration, or document required to be filed under the Code or
other Tax Law, including any attachments, exhibits, or other materials submitted with any of the foregoing, and including any amendments
or supplements to any of the foregoing.

 

“Third Party Indemnifying Party”
shall have the meaning set forth in Section 5.02(b) of this Agreement.

 

“Transactions”
means the Contribution, the Distribution and the other transactions contemplated by the Separation and Distribution Agreement.

 

“Transition Services Agreement”
means the Transition Services Agreement, dated [_______________], by and between Distributing and SpinCo.

 

“Treasury Regulations”
means the regulations promulgated from time to time under the Code as in effect for the relevant Tax Period.

 

“Unqualified Tax Opinion”
means an unqualified “will” opinion of a Tax Advisor, which Tax Advisor is acceptable to Distributing, on which Distributing
may rely to the effect that a transaction will not affect the Tax-Free Status. Any such opinion must assume that the Contribution
and Distribution, taken together, would have qualified for Tax-Free Status if the transaction in question did not occur.

 

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Section 2. Allocation of Tax Liabilities.

 

Section 2.01 Distributing Liability.

 

(a) Distributing shall be liable
for, and shall indemnify and hold harmless the SpinCo Group from and against any liability for, Taxes which are allocated to Distributing
under this Section 2.

 

(b) SpinCo Liability. SpinCo shall
be liable for, and shall indemnify and hold harmless the Distributing Group from and against any liability for, Taxes which are
allocated to SpinCo under this Section 2.

 

Section 2.02 Allocation of
United States Federal Income Tax and Federal Other Tax. Except as provided in Section 2.05, Federal Income Tax and
Federal Other Tax shall be allocated as follows:

 

(a) Allocation of Tax Relating to Distributing
Federal Consolidated Income Tax Returns. For the Tax Periods ending on or before the Deconsolidation Date, Distributing shall
be responsible for any and all Federal Income Taxes attributable to the Tax Items of the SpinCo Group (whether as a result of a
Final Determination or otherwise) and attributable to the Tax Items of the Distributing Group (whether as a result of a Final Determination
or otherwise).

 

(b) Allocation of Tax Relating to Federal
Separate Income Tax Returns. (i) For the Tax Periods ending after the Deconsolidation Date, Distributing shall be responsible
for any and all Federal Income Taxes due with respect to or required to be reported on any Distributing Separate Return (including
any increase in such Tax as a result of a Final Determination)(ii) For the Tax Periods ending after the Deconsolidation Date,
SpinCo shall be responsible for any and all Federal Income Taxes due with respect to or required to be reported on any SpinCo Separate
Return (including any increase in such Tax as a result of a Final Determination).

 

(c) Allocation of Federal Other Tax.

 

(i) For the Tax Periods ending
after the Deconsolidation Date, SpinCo shall be responsible for any and all Federal Other Taxes attributable to the Tax Items,
or imposed on a member of, of the SpinCo Group.

 

(ii) For the Tax Periods ending
after the Deconsolidation Date Distributing shall be responsible for any and all Federal Other Taxes attributable to the Tax Items
of the Distributing Group.

 

Section 2.03 Allocation of
State Income and State Other Taxes. Except as provided in Section 2.05, State Income Tax and State Other Tax shall
be allocated as follows:

 

(a) Allocation of Tax Relating to Distributing
State Combined Income Tax Returns.

 

(i) For the Tax Periods ending
on or before the Deconsolidation Date, Distributing shall be responsible for any and all State Income Taxes, attributable to the
Tax Items of the Distributing Group (whether as a result of a Final Determination or otherwise) and for any and all State Income
Taxes, attributable to the Tax Items of the SpinCo Group (whether as a result of a Final Determination or otherwise). For the Tax
Periods ending after the Deconsolidation Date, SpinCo shall be responsible for any and all State Income Taxes (calculated on the
basis that SpinCo is a SpinCo Full Taxpayer) attributable to the Tax Items of the SpinCo Group (whether as a result of a Final
Determination or otherwise). For the Tax Periods ending after the Deconsolidation Date, Distributing shall be responsible for any
and all State Income Taxes, attributable to the Tax Items of the Distributing Group (whether as a result of a Final Determination
or otherwise).

 

(ii) For the Tax Periods ending
on or before the Deconsolidation Date, Distributing shall be responsible for any and all State Income Taxes (calculated on the
basis that Distributing is a Distributing Full Taxpayer) attributable to any Tax Items of the Distributing Group which Taxes result
from a reduction in any Tax Attributes of the SpinCo Group (any such Tax Attribute, a “SpinCo State Attribute,”
and together with any SpinCo Federal Attribute, the “SpinCo Group Attributes”) relative to the amount
of such Tax Attributes reflected on the original Tax Return in respect of such Tax Attributes (whether such reduction occurs as
a result of a Final Determination or otherwise).

 

(b) Allocation of Tax Relating to State
Separate Income Tax Returns. (i) For the Tax Periods ending after the Deconsolidation Date, Distributing shall be responsible
for any and all State Income Taxes due with respect to or required to be reported on any Distributing Separate Return (including
any increase in such Tax as a result of a Final Determination); (ii) For the Tax Periods ending after the Deconsolidation
Date SpinCo shall be responsible for any and all State Income Taxes due with respect to or required to be reported on any SpinCo
Separate Return (including any increase in such Tax as a result of a Final Determination).

 

    	8

    	 

    

 

(c) Allocation of State Other Tax.

 

(i) For the Tax Periods ending
on or before the Deconsolidation Date, Distributing shall be responsible for any and all State Other Taxes attributable to the
Tax Items of the Distributing Group and all State Other Taxes attributable to the Tax Items of the SpinCo Group.

 

(ii) For the Tax Periods ending
after the Deconsolidation Date, SpinCo shall be responsible for any and all State Other Taxes attributable to the Tax Items of
the SpinCo Group.

 

(iii) For the Tax Periods
ending after the Deconsolidation Date, Distributing shall be responsible for any and all State Other Taxes attributable to the
Tax Items of the Distributing Group.

 

Section 2.04 Allocation of
Foreign Taxes. Except as provided in Section 2.05, Foreign Income Tax and Foreign Other Tax shall be allocated as
follows:

 

(a) Allocation of Tax Relating to Separate
Returns. (i) Distributing shall be responsible for any and all Foreign Income Taxes due with respect to or required to
be reported on any Distributing Separate Return, including Foreign Income Tax of Distributing or any member of the Distributing
Group imposed by way of withholding by a member of the SpinCo Group (and including any increase in such Foreign Income Tax as a
result of a Final Determination); (ii) For the Tax Periods ending after the Deconsolidation Date, SpinCo shall be responsible
for any and all Foreign Income Taxes due with respect to or required to be reported on any SpinCo Separate Return, including Foreign
Income Tax of SpinCo or any member of the SpinCo Group imposed by way of withholding by a member of the Distributing Group (and
including any increase in such Foreign Income Tax as a result of a Final Determination).

 

(b) Allocation of Foreign Other Tax.

 

(i) For the Tax Periods ending
on or before the Deconsolidation Date, Distributing shall be responsible for any and all Foreign Other Taxes attributable to the
Tax Items of the Distributing Group and SpinCo Group.

 

(ii) For the Tax Periods ending
after the Deconsolidation Date, SpinCo shall be responsible for any and all Foreign Other Taxes attributable to the Tax Items of
the SpinCo Group.

 

(iii) For the Tax Periods
ending after the Deconsolidation Date, Distributing shall be responsible for any and all Foreign Other Taxes attributable to the
Tax Items of the Distributing Group.

 

Section 2.05 Certain Transaction
and Other Taxes.

 

(a) SpinCo Liability. SpinCo shall
be liable for, and shall indemnify and hold harmless the Distributing Group from and against any liability for:

 

(i) Any stamp, sales and use,
gross receipts, value-added or other transfer Taxes imposed by any Tax Authority on any member of the SpinCo Group (if such member
is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions;

 

(ii) any Tax resulting from
a breach by SpinCo of any covenant in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement; and

 

(iii) any Tax-Related Losses
for which SpinCo is responsible pursuant to Section 7.05 of this Agreement.

 

(b) Distributing Liability. Distributing
shall be liable for, and shall indemnify and hold harmless the SpinCo Group from and against any liability for:

 

(i) Any stamp, sales and use,
gross receipts, value-added or other transfer Taxes imposed by any Tax Authority on any member of the Distributing Group (if such
member is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions; and

 

    	9

    	 

    

 

(ii) any Tax resulting from
a breach by Distributing of any covenant in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement.

 

in the case of each of (i) and (ii), such amounts to be
calculated on the basis that SpinCo is a SpinCo Full Taxpayer.

 

(c)Additional Restrictions. SpinCo
agrees not to take any action after the Deconsolidation Date that would adversely impact the tax liability of Distributing prior
to the Deconsolidation Date. Distributing agrees not to take any action after the Deconsolidation Date that would adversely impact
the tax liability of SpinCo prior to the Deconsolidation Date.

 

Section 2.06 SpinCo Group Attributes.
For the avoidance of doubt (but without prejudice to the provisos set forth in Sections 2.02(a)(i) and (ii)), except as set forth
in Section 6.01, SpinCo shall not be entitled to receive payment from Distributing in respect of any SpinCo Group Attributes
or for any reduction of any Taxes (or increase in Tax Attributes) or any Tax Benefit (whether such Tax Attributes, Tax Benefits
or reduction in Taxes are reported on an original Tax Return, arise pursuant to a Final Determination or otherwise).

 

Section 3. Proration of Taxes.

 

(a) General Method of Proration.
Tax Items shall be apportioned between Pre-Deconsolidation Periods and Post-Deconsolidation Periods in accordance with the principles
of Treasury Regulation Section 1.1502-76(b) as reasonably interpreted and applied by Distributing. If the Deconsolidation
Date is not an Accounting Cutoff Date (and provided an election under Treasury Regulation Section 1.1502-76(b)(2)(ii)(D) is
not made), the provisions of Treasury Regulation Section 1.1502-76(b)(2)(iii) will be applied to ratably allocate the items
(other than extraordinary items) for the month which includes the Deconsolidation Date. At Distributing’s election, in its
sole discretion, an election under Treasury Regulation Section 1.1502-76(b)(2)(ii)(D) (relating to ratable allocation of a
year’s items) shall be made.

 

(b) Transaction Treated as Extraordinary
Item. In determining the apportionment of Tax Items between Pre-Deconsolidation Periods and Post-Deconsolidation Periods, any
Tax Items relating to the Transactions shall be treated as extraordinary items described in Treasury Regulation Section 1.1502-76(b)(2)(ii)(C)
and shall (to the extent occurring on or prior to the Deconsolidation Date) be allocated to Pre-Deconsolidation Periods, and any
Taxes related to such items shall be treated under Treasury Regulation Section 1.1502-76(b)(2)(iv) as relating to such extraordinary
item and shall (to the extent occurring on or prior to the Deconsolidation Date) be allocated to Pre-Deconsolidation Periods.

 

Section 4. Preparation and Filing
of Tax Returns. 

 

Section 4.01 General.
Except as otherwise provided in this Section 4, Tax Returns shall be prepared and filed when due (including extensions) by
the person obligated to file such Tax Returns under the Code or applicable Tax Law. The Companies shall provide, and shall cause
their Affiliates to provide, assistance and cooperation to one another in accordance with Section 8 with respect to the preparation
and filing of Tax Returns, including providing information required to be provided in Section 8.

 

Section 4.02 Distributing’s
Responsibility. Distributing has the exclusive obligation and right to prepare and file, or to cause to be prepared and
filed:

 

(a) Distributing Federal Consolidated
Income Tax Returns for any Tax Periods ending on, before or after the Deconsolidation Date;

 

(b) Distributing State Combined
Income Tax Returns and any other Joint Returns which Distributing reasonably determines are required to be filed (or which Distributing
chooses to be filed) by the Companies or any of their Affiliates for Tax Periods ending on, before or after the Deconsolidation
Date; provided, however, that Distributing shall use commercially reasonable efforts to provide written notice to
SpinCo of such determination to file a Distributing State Combined Income Tax Return or other Joint Return if such a Tax Return
has never for such type of Tax in such jurisdiction been filed in a prior Tax Period; and

 

    	10

    	 

    

 

(c) SpinCo Separate Returns relating
to Income Taxes and Distributing Separate Returns which Distributing reasonably determines are required to be filed by the Companies
or any of their Affiliates (or which Distributing chooses to be filed) for Tax Periods ending on, before or after the Deconsolidation
Date (limited, in the case of SpinCo Separate Returns relating to Income Taxes, to such Returns as are required to be filed (or
which Distributing chooses to be filed) for Tax Periods beginning prior to the Deconsolidation Date);

  

provided, however, that to the extent any Tax
Returns described in clauses (b), (c) or (d) relate to SpinCo, the preparation and filing of such Tax Returns by Distributing
shall be treated as a Service pursuant to the Transition Services Agreement, and SpinCo shall pay to Distributing the applicable
Service Charge as provided in the Transition Services Agreement.

 

Section 4.03 SpinCo’s
Responsibility. SpinCo shall prepare and file, or shall cause to be prepared and filed, all Tax Returns required to be
filed by or with respect to members of the SpinCo Group other than those Tax Returns which Distributing is required, or chooses,
to prepare and file under Section 4, provided that SpinCo shall not file any SpinCo Separate Returns for a Tax Period in a
jurisdiction and for a type of Tax where Distributing files a Joint Return. The Tax Returns required to be prepared and filed by
SpinCo under this Section 4.03 shall include (a) any SpinCo Federal Consolidated Income Tax Return for Tax Periods ending
after the Deconsolidation Date, (b) SpinCo Separate Returns relating to Income Taxes required to be filed for Tax Periods
beginning on or after the Deconsolidation Date, and (c) SpinCo Separate Returns relating to Other Taxes.

 

Section 4.04 Tax Accounting
Practices. 

 

(a) General Rule. With respect
to any Tax Return that SpinCo has the obligation and right to prepare and file, or cause to be prepared and filed, under Section 4.03,
for any Pre-Deconsolidation Period or any Straddle Period (or any taxable period beginning after the Deconsolidation Date to the
extent items reported on such Tax Return might reasonably be expected to affect items reported on any Tax Return that Distributing
has the obligation or right to prepare and file, or chooses to be prepared and filed, under Section 4.03), except as provided
in Section 4.04(b) such Tax Return shall be prepared in accordance with past practices, accounting methods, elections or conventions
(“Past Practices”) used with respect to the Tax Returns in question (unless there is no reasonable basis
for the use of such Past Practices or unless there is no adverse effect to Distributing), and to the extent any items are not covered
by Past Practices (or in the event that there is no reasonable basis for the use of such Past Practices or there is no adverse
effect to Distributing), in accordance with reasonable Tax accounting practices selected by SpinCo. Except as provided in Section 4.04(b),
Distributing shall prepare any Tax Return which it has the obligation and right to prepare and file, or cause to be prepared and
filed, under Section 4.02, in accordance with reasonable Tax accounting practices selected by Distributing.

 

(b) Reporting of Transactions.
The Tax treatment reported on any Tax Return relating to the Transactions shall be consistent with the treatment thereof in the
Ruling Requests and the Tax Opinions/Rulings, unless there is no reasonable basis for such Tax treatment. The Tax treatment reported
on any Tax Return for which SpinCo is the Responsible Party shall be consistent with that on any Tax Return filed or to be filed
by Distributing or any member of the Distributing Group or caused to be filed by Distributing, in each case with respect to periods
prior to the Distribution Date or with respect to Straddle Periods (“Distributing Group Transaction Returns”),
unless there is no reasonable basis for such Tax treatment. To the extent there is a Tax treatment relating to the Transactions
which is not covered by the Ruling Requests, the Tax Opinions/Rulings or Distributing Group Transaction Returns, the Companies
shall agree on the Tax treatment to be reported on any Tax Return. For this purpose, the Tax treatment shall be determined by the
Responsible Company with respect to such Tax Return and shall be agreed to by the other Company unless either (i) there is
no reasonable basis for such Tax treatment, or (ii) such Tax treatment is inconsistent with the Tax treatment contemplated
in the Ruling Requests, the Tax Opinions/Rulings and/or the Distributing Group Transaction Returns. Such Tax Return shall be submitted
for review pursuant to Section 4.06(a), and any dispute regarding such proper Tax treatment shall be referred for resolution
pursuant to Section 14, sufficiently in advance of the filing date of such Tax Return (including extensions) to permit timely
filing of the Tax Return.

 

(c) Bonus Depreciation. Notwithstanding
anything to the contrary herein, Distributing shall be entitled, in its sole discretion, to elect whether SpinCo shall take “bonus
depreciation” described in Section 168(k) of the Code for any federal income tax purposes for any tax year of SpinCo
that includes the Deconsolidation Date (or the day following the Deconsolidation Date), irrespective of whether Distributing is
responsible for filing the Tax Return to which such election relates under this Agreement.

 

    	11

    	 

    

 

Section 4.05 Consolidated or
Combined Tax Returns. At Distributing’s election, in its sole discretion, SpinCo will elect and join, and will cause
its respective Affiliates to elect and join, in filing any Distributing State Combined Income Tax Returns and any Joint Returns
that Distributing determines are required to be filed or that Distributing chooses to file pursuant to Section 4.02(b). With
respect to any SpinCo Separate Returns relating to any Tax Period (or portion thereof) ending on or prior to the Deconsolidation
Date, SpinCo will elect and join, and will cause its respective Affiliates to elect and join, in filing consolidated, unitary,
combined, or other similar joint Tax Returns, to the extent reasonably determined by Distributing.

 

Section 4.06 Right to Review
Tax Returns. The Responsible Company with respect to any Tax Return shall make such Tax Return and related workpapers available
for review by the other Company, if requested, to the extent (i) such Tax Return relates to Taxes for which the requesting
party would reasonably be expected to be liable, (ii) such Tax Return relates to Taxes and the requesting party would reasonably
be expected to be liable in whole or in part for any additional Taxes owing as a result of adjustments to the amount of such Taxes
reported on such Tax Return, (iii) such Tax Return relates to Taxes for which the requesting party would reasonably be expected
to have a claim for Tax Benefits under this Agreement, or (iv) the requesting party reasonably determines that it must inspect
such Tax Return to confirm compliance with the terms of this Agreement. The Responsible Company shall use its reasonable best efforts
to make such Tax Return available for review as required under this paragraph at least fifteen (15) days prior to the due
date for filing of such Tax Return to provide the requesting party with a meaningful opportunity to analyze and comment on such
Tax Return.

 

Section 4.07 SpinCo Carrybacks,
Carryforwards and Claims for Refund. SpinCo hereby agrees that Distributing shall be entitled to determine in its sole
discretion whether (x) any Adjustment Request with respect to any Joint Return shall be filed to claim in any Pre-Deconsolidation
Period any SpinCo Carried Item, and (y) any available elections shall be made to waive the right to claim in any Pre-Deconsolidation
Period with respect to any Joint Return any SpinCo Carried Item, and whether any affirmative election shall be made to claim any
such SpinCo Carried Item.

 

Section 4.08 Apportionment
of Earnings and Profits and Tax Attributes. Distributing shall in good faith advise SpinCo as soon as reasonably practicable
in writing of the portion, if any, of any earnings and profits, Tax Attribute, overall foreign loss or other consolidated, combined
or unitary attribute which Distributing determines shall be allocated or apportioned to the SpinCo Group under applicable Tax law.
SpinCo and all members of the SpinCo Group shall prepare all Tax Returns in accordance with such written notice. In the event of
an adjustment to the earnings and profits or any Tax Attributes determined by Distributing, Distributing shall promptly notify
SpinCo in writing of such adjustment. For the absence of doubt, Distributing shall not be liable to SpinCo or any member of the
SpinCo Group for any failure of any determination under this Section 4.08 to be accurate under applicable law and regulations
and in good faith.

 

Section 5. Tax Payments. 

 

Section 5.01 Payment of Separate
Company Taxes. Each Company shall pay, or shall cause to be paid, to the applicable Tax Authority when due all Taxes owed
by such Company or a member of such Company’s Group with respect to a Separate Return.

 

Section 5.02 Indemnification
Payments.

 

(a) If any Company (the “Payor”)
is required under applicable Tax Law to pay to a Tax Authority a Tax that another Company (the “Required Party”)
is liable for under this Agreement, the Required Party shall reimburse the Payor within eight (8) days of delivery by the
Payor to the Required Party of an invoice for the amount due, accompanied by evidence of payment and a statement detailing the
Taxes paid and describing in reasonable detail the particulars relating thereto.

 

(b) If any Company (the “Third
Party Indemnifying Party”) is required under the terms of an agreement to which it is a party (or with respect to
which it has agreed to guarantee the obligations thereunder) to pay to a third party a Tax that another Company (the “Company
Indemnifying Party”) is liable for under this Agreement, the Company Indemnifying Party shall reimburse the Third
Party Indemnifying Party within eight (8) days of delivery by the Third Party Indemnifying Party to the Company Indemnifying
Party of an invoice for the amount due, accompanied by evidence of payment and a statement detailing the Taxes paid and describing
in reasonable detail the particulars relating thereto.

 

    	12

    	 

    

 

(c) All indemnification payments
under this Agreement shall be made by Distributing directly to SpinCo and by SpinCo directly to Distributing; provided, however,
that if the Companies mutually agree with respect to any such indemnification payment, any member of the Distributing Group, on
the one hand, may make such indemnification payment to any member of the SpinCo Group, on the other hand, and vice versa.

 

Section 6. Tax Benefits. 

 

Section 6.01 Tax Benefits.

 

(a) Distributing shall be entitled
to any refund (and any interest thereon received from the applicable Tax Authority) of Taxes received by any member of the Distributing
Group or the SpinCo Group, other than any refund to which SpinCo is entitled pursuant to Section 6.01(d). SpinCo shall not
be entitled to any refund (or any interest thereon received from the applicable Tax Authority), except as set forth in Section 6.01(d).
A Company receiving a refund to which another Company is entitled hereunder shall pay over such refund to such other Company within
five (5) Business Days after such refund is received.

 

(b) If a member of the SpinCo Group
would be expected to realize a Tax Benefit as a result of an adjustment pursuant to a Final Determination to any Taxes for which
a member of the Distributing Group would otherwise be liable hereunder (or an adjustment pursuant to a Final Determination to any
Tax Attribute of a member of the Distributing Group) and such Tax Benefit would not have arisen but for such adjustment (determined
on a “with and without” basis assuming the SpinCo Group is a SpinCo Full Taxpayer), SpinCo shall make a payment to
Distributing within five (5) Business Days following such Final Determination, in an amount equal to the Taxes for which the
Distributing Group would otherwise be, or would otherwise be reasonably expected to be, liable as a result of such adjustment provided,
however, that to the extent the Tax Benefit resulting from the Final Determination would be expected to be realized in a Pre-Deconsolidation
Period, SpinCo shall instead be responsible under this Section 6.01(b) for an amount equal to the excess of (x) the amount
of Taxes for which a member of the Distributing Group is liable as a result of the adjustment (for the avoidance of doubt, including
any interest payable in respect thereof) over (y) the amount of such Tax Benefit (for the avoidance of doubt, including any
interest owed in respect thereof) (such amounts to be calculated on the basis that Distributing is a Distributing Full Taxpayer),
and provided, further, however, that SpinCo shall not be required to make a payment to Distributing pursuant to this Section 6.01(b)
to the extent of any Specified Excess Tax Benefit. For purposes of determining the amount of Taxes for which the Distributing Group
is, or is reasonably be expected to be, liable as a result of an adjustment pursuant to a Final Determination, the Distributing
Group shall be deemed (i) not to utilize any Tax Attributes available to the Distributing Group and (ii) to be a Distributing
Full Taxpayer.

 

(c) No later than five (5) Business
Days following a Final Determination described in Section 6.01(b), Distributing shall provide SpinCo with a written calculation
of the amount payable to Distributing by SpinCo pursuant to this Section 6. In the event that SpinCo disagrees with any such
calculation described in this Section 6.01(c), SpinCo shall so notify Distributing in writing within thirty (30) days
of receiving the written calculation set forth above in this Section 6.01(c). Distributing and SpinCo shall endeavor in good
faith to resolve such disagreement, and, failing that, the amount payable under Section 6.01(b) shall be determined in accordance
with the disagreement resolution provisions of Section 14 as promptly as practicable.

 

(d) Without prejudice to Section 6.01(b),
SpinCo shall be entitled to any refund (and any interest thereon received from the applicable Tax Authority) of Taxes reported
on (i) a SpinCo Separate Return for a Post-Deconsolidation Period or (ii) a SpinCo Separate Return of Other Taxes for
any Tax period that ends after the Deconsolidation Date. For the avoidance of doubt, Distributing, and not SpinCo, shall be entitled
to any refund or Tax Benefit that results from a SpinCo Carried Item, other than any refund to which SpinCo is entitled pursuant
to the first sentence of this Section 6.01(d).

 

Section 6.02 Distributing and
SpinCo Income Tax Deductions in Respect of Certain Equity Awards and Incentive Compensation. 

 

(a) Solely the member of the Group
by which the relevant individual is currently employed at the time of the vesting, exercise, disqualifying disposition, payment
or other relevant taxable event, as appropriate, in respect of the equity awards and other incentive compensation described in
Article VIII of the Separation and Distribution Agreement, or, if such individual is not currently employed at such time by a member
of the Group, the member of the Group by which the relevant individual was most recently employed, shall be entitled to claim,
in a Post-Deconsolidation Period, any Income Tax deduction in respect of such equity awards and other incentive compensation on
its respective Tax Return associated with such event.

 

    	13

    	 

    

 

(b) In the event that an employee of SpinCo
exercises any Distributing stock option, SpinCo, and not Distributing, will be entitled to any tax deduction available in respect
of such exercise.

 

(c) In the event that an employee of Distributing
exercises any SpinCo stock option, Distributing, and not SpinCo, will be entitled to any tax deduction available in respect of
such exercise.

 

Section 7. Tax-Free Status. 

 

Section 7.01 Tax Opinions/Rulings
and Representation Letters. Each of SpinCo and Distributing hereby represents and agrees that (A) it has examined
the Ruling Documents and the Representation Letters prior to the date hereof and (B) subject to any qualifications therein,
all information contained in such Ruling Documents or Representation Letters that concerns or relates to such Company or any member
of its Group is and, to the extent such information relates to future events or circumstances, will be, true, correct and complete.

 

Section 7.02 Restrictions on
SpinCo. 

 

(a) SpinCo agrees that it will
not take or fail to take, or permit any SpinCo Affiliate to take or fail to take, any action where such action or failure to act
would be inconsistent with or cause to be untrue any material, information, covenant or representation in any Representation Letters
or Tax Opinions/Rulings. SpinCo agrees that it will not take or fail to take, or permit any SpinCo Affiliate to take or fail to
take, any action which prevents or could reasonably be expected to prevent (A) the Tax-Free Status, or (B) any transaction
contemplated by the Separation and Distribution Agreement which is intended by the parties to be tax-free from so qualifying, including,
in the case of SpinCo, issuing any SpinCo Capital Stock that would prevent the Distribution from qualifying as a tax-free distribution
within the meaning of Section 355 of the Code.

 

(b) Pre-Distribution Period. During
the period from the date hereof until the completion of the Distribution, SpinCo shall not take any action (including the issuance
of SpinCo Capital Stock) or permit any SpinCo Affiliate directly or indirectly controlled by SpinCo to take any action if, as a
result of taking such action, SpinCo could have a number of shares of SpinCo Capital Stock (computed on a fully diluted basis or
otherwise) issued and outstanding, including by way of the exercise of stock options (whether or not such stock options are currently
exercisable) or the issuance of restricted stock, that could cause Distributing to cease to have Tax Control of SpinCo.

 

(c) SpinCo agrees that, from the
date hereof until the first day after the two-year anniversary of the Distribution Date, it will (i) maintain its status as
a company engaged in the Active Trade or Business for purposes of Section 355(b)(2) of the Code, and (ii) not engage
in any transaction that would result in it ceasing to be a company engaged in the Active Trade or Business for purposes of Section 355(b)(2)
of the Code, in each case, taking into account Section 355(b)(3) of the Code.

 

    	14

    	 

    

 

(d) SpinCo agrees that, from the
date hereof until the first day after the two-year anniversary of the Distribution Date, it will not (i) enter into any Proposed
Acquisition Transaction or, to the extent SpinCo has the right to prohibit any Proposed Acquisition Transaction, permit any Proposed
Acquisition Transaction to occur (whether by (a) redeeming rights under a shareholder rights plan, (b) finding a tender
offer to be a “permitted offer” under any such plan or otherwise causing any such plan to be inapplicable or neutralized
with respect to any Proposed Acquisition Transaction, or (c) approving any Proposed Acquisition Transaction, whether for purposes
of Section 203 of the DGCL or any similar corporate statute, any “fair price” or other provision of SpinCo’s
charter or bylaws or otherwise), (ii) merge or consolidate with any other Person or liquidate or partially liquidate, (iii) in
a single transaction or series of transactions sell or transfer (other than sales or transfers of inventory in the ordinary course
of business) all or substantially all of the assets that were transferred to SpinCo pursuant to the Contribution or sell or transfer
60% or more of the gross assets of the Active Trade or Business or 60% or more of the consolidated gross assets of SpinCo and its
Affiliates (such percentages to be measured based on fair market value as of the Distribution Date), (iv) redeem or otherwise
repurchase (directly or through a SpinCo Affiliate) any SpinCo stock, or rights to acquire stock, except to the extent such repurchases
satisfy Section 4.05(1)(b) of Revenue Procedure 96-30 (as in effect prior to the amendment of such Revenue Procedure by Revenue
Procedure 2003-48), (v) amend its certificate of incorporation (or other organizational documents), or take any other action,
whether through a stockholder vote or otherwise, affecting the voting rights of SpinCo Capital Stock (including, without limitation,
through the conversion of one class of SpinCo Capital Stock into another class of SpinCo Capital Stock) or (vi) take any other
action or actions (including any action or transaction that would be reasonably likely to be inconsistent with any representation
made in the Representation Letters or the Tax Opinions/Rulings) which in the aggregate (and taking into account any other transactions
described in this subparagraph (d) and the Offering) would be reasonably likely to have the effect of causing or permitting
one or more persons (whether or not acting in concert) to acquire directly or indirectly stock representing a Fifty-Percent or
Greater Interest in SpinCo or otherwise jeopardize the Tax-Free Status, unless prior to taking any such action set forth in the
foregoing clauses (i) through (vi), (A) SpinCo shall have requested that Distributing obtain a Ruling in accordance with
Section 7.04(b) and (d) of this Agreement to the effect that such transaction will not affect the Tax-Free Status and
Distributing shall have received such a Ruling in form and substance satisfactory to Distributing in its sole and absolute discretion,
which discretion shall be exercised in good faith solely to preserve the Tax-Free Status (and in determining whether a Ruling is
satisfactory, Distributing may consider, among other factors, the appropriateness of any underlying assumptions and management’s
representations made in connection with such Ruling), or (B) SpinCo shall provide Distributing with an Unqualified Tax Opinion
in form and substance satisfactory to Distributing in its sole and absolute discretion, which discretion shall be exercised in
good faith solely to preserve the Tax-Free Status (and in determining whether an opinion is satisfactory, Distributing may consider,
among other factors, the appropriateness of any underlying assumptions and management’s representations if used as a basis
for the opinion and Distributing may determine that no opinion would be acceptable to Distributing) or (C) Distributing shall
have waived the requirement to obtain such Ruling or Unqualified Tax Opinion.

 

(e) Certain Issuances of SpinCo Capital
Stock. If SpinCo proposes to enter into any Section 7.02(e) Acquisition Transaction or, to the extent SpinCo has the right
to prohibit any Section 7.02(e) Acquisition Transaction, proposes to permit any Section 7.02(e) Acquisition Transaction
to occur, in each case, during the period from the date hereof until the first day after the two-year anniversary of the Distribution
Date, SpinCo shall provide Distributing, no later than ten (10) days following the signing of any written agreement with respect
to the Section 7.02(e) Acquisition Transaction, with a written description of such transaction (including the type and amount
of SpinCo Capital Stock to be issued in such transaction) and a certificate of the Board of Directors of SpinCo to the effect that
the Section 7.02(e) Acquisition Transaction is not a Proposed Acquisition Transaction or any other transaction to which the
requirements of Section 7.02(d) apply (a “Board Certificate”).

 

(f) SpinCo Internal Restructuring.
SpinCo shall not engage in, cause or permit any internal restructuring (including by making or revoking any election under
Treasury Regulation Section 301.7701-3) involving SpinCo and/or any of its subsidiaries or any contribution, sale or other
transfer of any of the assets directly or indirectly contributed to SpinCo as part of the Contribution to SpinCo or any of its
subsidiaries (any such action, an “Internal Restructuring”) during or with respect to any Tax Period
(or portion thereof) ending on or prior to the Distribution Date without obtaining the prior written consent of Distributing (such
prior written consent not to be unreasonably withheld). SpinCo shall provide written notice to Distributing describing any Internal
Restructuring proposed to be taken during or with respect to any Tax Period (or portion thereof) beginning after the Distribution
Date and ending on or prior to the two-year anniversary of the Distribution Date and shall consult with Distributing regarding
any such proposed actions reasonably in advance of taking any such proposed actions and shall consider in good faith any comments
from Distributing relating thereto.

 

(g) Distributions by Foreign SpinCo
Subsidiaries. Until January 1st of the calendar year immediately following the calendar year in which the Distribution
occurs, SpinCo shall neither cause nor permit any foreign subsidiary of SpinCo to enter into any transaction or take any action
that would be considered under the Code to constitute the declaration or payment of a dividend (including pursuant to Section 304
of the Code) without obtaining the prior written consent of Distributing (such prior written consent not to be unreasonably withheld).

 

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Section 7.03 Restrictions on
Distributing. Distributing agrees that it will not take or fail to take, or permit any member of the Distributing Group
to take or fail to take, any action where such action or failure to act would be inconsistent with or cause to be untrue any material,
information, covenant or representation in any Representation Letters or Tax Opinions/Rulings. Distributing agrees that it will
not take or fail to take, or permit any member of the Distributing Group to take or fail to take, any action which prevents or
could reasonably be expected to prevent (A) the Tax-Free Status, or (B) any other transaction contemplated by the Separation
and Distribution Agreement which is intended by the parties to be tax-free from so qualifying; provided, however,
that this Section 7.03 shall not be construed as obligating Distributing to consummate the Distribution without the satisfaction
or waiver of all conditions set forth in Section 4.3 of the Separation and Distribution Agreement nor shall it be construed
as preventing Distributing from terminating the Separation and Distribution Agreement pursuant to Article XI thereof.

 

Section 7.04 Procedures Regarding
Opinions and Rulings. 

 

(a) If SpinCo notifies Distributing
that it desires to take one of the actions described in clauses (i) through (vi) of Section 7.02(d) (a “Notified
Action”), Distributing and SpinCo shall reasonably cooperate to attempt to obtain the Ruling or Unqualified Tax Opinion
referred to in Section 7.02(d), unless Distributing shall have waived the requirement to obtain such Ruling or Unqualified
Tax Opinion.

 

(b) Rulings or Unqualified Tax Opinions
at SpinCo’s Request. Distributing agrees that at the reasonable request of SpinCo pursuant to Section 7.02(d), Distributing
shall cooperate with SpinCo and use its reasonable best efforts to seek to obtain, as expeditiously as possible, a Ruling from
the IRS or an Unqualified Tax Opinion for the purpose of permitting SpinCo to take the Notified Action. Further, in no event shall
Distributing be required to file any Ruling Request under this Section 7.04(b) unless SpinCo represents that (A) it has
read the Ruling Request, and (B) all information and representations, if any, relating to any member of the SpinCo Group,
contained in the Ruling Request documents are (subject to any qualifications therein) true, correct and complete. SpinCo shall
reimburse Distributing for all reasonable costs and expenses incurred by the Distributing Group in obtaining a Ruling or Unqualified
Tax Opinion requested by SpinCo within ten (10) Business Days after receiving an invoice from Distributing therefor.

 

(c) Rulings or Unqualified Tax Opinions
at Distributing’s Request. Distributing shall have the right to obtain a Ruling or an Unqualified Tax Opinion at any
time in its sole and absolute discretion. If Distributing determines to obtain a Ruling or an Unqualified Tax Opinion, SpinCo shall
(and shall cause each Affiliate of SpinCo to) cooperate with Distributing and take any and all actions reasonably requested by
Distributing in connection with obtaining the Ruling or Unqualified Tax Opinion (including, without limitation, by making any representation
or covenant or providing any materials or information requested by the IRS or Tax Advisor; provided that SpinCo shall not
be required to make (or cause any Affiliate of SpinCo to make) any representation or covenant that is inconsistent with historical
facts or as to future matters or events over which it has no control). Distributing and SpinCo shall each bear its own costs and
expenses in obtaining a Ruling or an Unqualified Tax Opinion requested by Distributing.

 

(d) SpinCo hereby agrees that Distributing
shall have sole and exclusive control over the process of obtaining any Ruling, and that only Distributing shall apply for a Ruling.
In connection with obtaining a Ruling pursuant to Section 7.04(b), (A) Distributing shall keep SpinCo informed in a timely
manner of all material actions taken or proposed to be taken by Distributing in connection therewith; (B) Distributing shall
(1) reasonably in advance of the submission of any Ruling Request documents provide SpinCo with a draft copy thereof, (2) reasonably
consider SpinCo’s comments on such draft copy, and (3) provide SpinCo with a final copy; and (C) Distributing shall
provide SpinCo with notice reasonably in advance of, and SpinCo shall have the right to attend, any formally scheduled meetings
with the IRS (subject to the approval of the IRS) that relate to such Ruling. Neither SpinCo nor any SpinCo Affiliate directly
or indirectly controlled by SpinCo shall seek any guidance from the IRS or any other Tax Authority (whether written, verbal or
otherwise) at any time concerning the Transactions (including the impact of any transaction on the Transactions) or any transaction
listed on Schedule 7.02(a).

 

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Section 7.05 Liability for
Tax-Related Losses.

 

(a) Notwithstanding anything in
this Agreement or the Separation and Distribution Agreement to the contrary, SpinCo shall be responsible for, and shall indemnify
and hold harmless Distributing and its Affiliates and each of their respective officers, directors and employees from and against,
one hundred percent (100%) of any Tax-Related Losses that are attributable to or result from any one or more of the following:
(A) the direct or indirect acquisition (other than pursuant to the Contribution, or the Distribution) of all or a portion
of SpinCo’s stock and/or its or its subsidiaries’ stock or assets by any means whatsoever by any Person, (B) any
negotiations, understandings, agreements or arrangements by SpinCo with respect to transactions or events (including, without limitation,
stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital contributions or acquisitions,
or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or
more Persons acquire directly or indirectly stock of SpinCo representing a Fifty-Percent or Greater Interest therein, (C) any
action or failure to act by SpinCo after the Distribution (including, without limitation, any amendment to SpinCo’s certificate
of incorporation (or other organizational documents), whether through a stockholder vote or otherwise) affecting the voting rights
of SpinCo stock (including, without limitation, through the conversion of one class of SpinCo Capital Stock into another class
of SpinCo Capital Stock), (D) any act or failure to act by SpinCo or any SpinCo Affiliate described in Section 7.02 (regardless
whether such act or failure to act is covered by a Ruling, Unqualified Tax Opinion or waiver described in clause (A), (B) or
(C) of Section 7.02(d), a Board Certificate described in Section 7.02(e) or a consent described in Section 7.02(f)
or (g)) or (E) any breach by SpinCo of its agreement and representation set forth in Section 7.01(a).

 

(b) SpinCo shall pay Distributing
the amount of any Tax-Related Losses for which SpinCo is responsible under this Section 7.05 (calculated on the basis that
Distributing is a Distributing Full Taxpayer): (A) in the case of Tax-Related Losses described in clause (i) of the definition
of Tax-Related Losses no later than two (2) Business Days after receipt by SpinCo of notice of the settlement, Final Determination,
judgment or other action imposing the Taxes described in such clause (i) with respect to the Tax Return for the year of the Contribution
or Distribution, as applicable (provided that if such Tax-Related Losses arise pursuant to a Final Determination described
in clause (a), (b) or (c) of the definition of “Final Determination,” then SpinCo shall pay Distributing
no later than two (2) Business Days after receipt by SpinCo of notice of such Final Determination) and (B) in the case
of Tax-Related Losses described in clause (ii) or (iii) of the definition of Tax-Related Losses, no later than two (2) Business
Days after the date on which SpinCo receives notice from Distributing evidencing Distributing’s payment of such Tax-Related
Losses.

 

Section 8. Assistance and Cooperation.

 

Section 8.01 Assistance and
Cooperation.

 

(a) The Companies shall cooperate
(and cause their respective Affiliates to cooperate) with each other and with each other’s agents, including accounting firms
and legal counsel, in connection with Tax matters relating to the Companies and their Affiliates including (i) preparation
and filing of Tax Returns, (ii) determining the liability for and amount of any Taxes due (including estimated Taxes) or the
right to and amount of any refund of Taxes, (iii) examinations of Tax Returns, and (iv) any administrative or judicial
proceeding in respect of Taxes assessed or proposed to be assessed. Such cooperation shall include making all information and documents
in their possession relating to the other Company and its Affiliates available to such other Company as provided in Section 9.
Each of the Companies shall also make available to the other, as reasonably requested and available, personnel (including officers,
directors, employees and agents of the Companies or their respective Affiliates) responsible for preparing, maintaining, and interpreting
information and documents relevant to Taxes, and personnel reasonably required as witnesses or for purposes of providing information
or documents in connection with any administrative or judicial proceedings relating to Taxes.

 

(b) Any information or documents
provided under this Section 8 shall be kept confidential by the Company receiving the information or documents, except as
may otherwise be necessary in connection with the filing of Tax Returns or in connection with any administrative or judicial proceedings
relating to Taxes. Notwithstanding any other provision of this Agreement or any other agreement, (i) neither Distributing
nor any Distributing Affiliate shall be required to provide SpinCo or any SpinCo Affiliate or any other Person access to or copies
of any information or procedures (including the proceedings of any Tax Contest) other than information or procedures that relate
solely to SpinCo, the business or assets of SpinCo or any SpinCo Affiliate and (ii) in no event shall Distributing or any
Distributing Affiliate be required to provide SpinCo, any SpinCo Affiliate or any other Person access to or copies of any information
if such action could reasonably be expected to result in the waiver of any Privilege. In addition, in the event that Distributing
determines that the provision of any information to SpinCo or any SpinCo Affiliate could be commercially detrimental, violate any
law or agreement or waive any Privilege, the parties shall use reasonable best efforts to permit compliance with its obligations
under this Section 8 in a manner that avoids any such harm or consequence.

 

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Section 8.02 Income Tax Return
Information.

 

(a) SpinCo and Distributing acknowledge
that time is of the essence in relation to any request for information, assistance or cooperation made by Distributing or SpinCo
pursuant to Section 8.01 or this Section 8.02. SpinCo and Distributing acknowledge that failure to conform to the deadlines
set forth herein or reasonable deadlines otherwise set by Distributing or SpinCo could cause irreparable harm.

 

(b) Each Company shall provide
to the other Company information and documents relating to its Group required by the other Company to prepare Tax Returns. Any
information or documents the Responsible Company requires to prepare such Tax Returns shall be provided in such form as the Responsible
Company reasonably requests and in sufficient time for the Responsible Company to file such Tax Returns on a timely basis.

 

Section 9. Tax Records. 

 

Section 9.01 Retention of Tax
Records. Each Company shall preserve and keep all Tax Records exclusively relating to the assets and activities of its
Group for Pre-Deconsolidation Periods, and Distributing shall preserve and keep all other Tax Records relating to Taxes of the
Groups for Pre-Deconsolidation Tax Periods, for so long as the contents thereof may become material in the administration of any
matter under the Code or other applicable Tax Law, but in any event until the later of (i) the expiration of any applicable
statutes of limitations, or (ii) seven years after the Deconsolidation Date (such later date, the “Retention Date”).
After the Retention Date, each Company may dispose of such Tax Records upon ninety (90) days’ prior written notice to
the other Company. If, prior to the Retention Date, (a) a Company reasonably determines that any Tax Records which it would
otherwise be required to preserve and keep under this Section 9 are no longer material in the administration of any matter
under the Code or other applicable Tax Law and the other Company agrees, then such first Company may dispose of such Tax Records
upon ninety (90) days’ prior notice to the other Company. Any notice of an intent to dispose given pursuant to this
Section 9.01 shall include a list of the Tax Records to be disposed of describing in reasonable detail each file, book, or
other record accumulation being disposed. The notified Company shall have the opportunity, at its cost and expense, to copy or
remove, within such 90-day period, all or any part of such Tax Records. If, at any time prior to the Retention Date, SpinCo determine
to decommission or otherwise discontinue any computer program or information technology system used to access or store any Tax
Records, then SpinCo may decommission or discontinue such program or system upon ninety (90) days’ prior notice to Distributing
and Distributing shall have the opportunity, at its cost and expense, to copy, within such 90-day period, all or any part of the
underlying data relating to the Tax Records accessed by or stored on such program or system.

 

Section 9.02 Access to Tax
Records. The Companies and their respective Affiliates shall make available to each other for inspection and copying during
normal business hours upon reasonable notice all Tax Records (and, for the avoidance of doubt, any pertinent underlying data accessed
or stored on any computer program or information technology system) in their possession and shall permit the other Company and
its Affiliates, authorized agents and representatives and any representative of a Taxing Authority or other Tax auditor direct
access during normal business hours upon reasonable notice to any computer program or information technology system used to access
or store any Tax Records, in each case to the extent reasonably required by the other Company in connection with the preparation
of Tax Returns or financial accounting statements, audits, litigation, or the resolution of items under this Agreement.

 

Section 10. Tax Contests. 

 

Section 10.01 Notice.
Each of the Companies shall provide prompt notice to the other Company of any written communication from a Tax Authority regarding
any pending or threatened Tax audit, assessment or proceeding or other Tax Contest of which it becomes aware related to Taxes for
Tax Periods for which it is indemnified by the other Company hereunder, provided, however, that the indemnifying Company shall
not be relieved of its obligations hereunder by reason of any failure by the indemnified Company to so notify except to the extent
such failure materially prejudices the indemnifying Company. Such notice shall attach copies of the pertinent portion of any written
communication from a Tax Authority and contain factual information (to the extent known) describing any asserted Tax liability
in reasonable detail and shall be accompanied by copies of any notice and other documents received from any Tax Authority in respect
of any such matters.

 

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Section 10.02 Control of Tax
Contests.

 

(a) Separate Company Taxes.

 

(i) In the case of any Tax
Contest with respect to any Separate Return relating to Income Taxes for Tax Periods beginning prior to the Deconsolidation Date,
Distributing shall have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of
such Tax liability, subject to Sections 10.02(c) and (d) below. SpinCo shall bear reasonable, out of pocket expenses incurred
by Distributing in connection with the control of any Tax Contest described in this Section 10.02(a)(i) provided that any
outside counsel, accountants or other advisors shall be mutually selected by Distributing and SpinCo.

 

(ii) In the case of any Tax
Contest with respect to any Separate Return (other than a Separate Return that is subject to Section 10.02(a)(i)), if any,
the Company having liability for the Tax shall have exclusive control over the Tax Contest including exclusive authority with respect
to any settlement of such Tax liability, subject to Sections 10.02(c) and (d) below.

 

(b) Joint Returns and Certain Other
Returns. In the case of any Tax Contest with respect to any Distributing Federal Consolidated Income Tax Return or Distributing
State Combined Income Tax Return, Distributing shall have exclusive control over the Tax Contest, including exclusive authority
with respect to any settlement of such Tax liability, subject to Sections 10.02(c) and (d) below.

 

(c) Settlement Rights. The Controlling
Party shall have the sole right to contest, litigate, compromise and settle any Tax Contest without obtaining the prior consent
of the Non-Controlling Party. Unless waived by the parties in writing, in connection with any potential adjustment in a Tax Contest
as a result of which adjustment the Non-Controlling Party may reasonably be expected to become liable to make any indemnification
payment (or any payment under Section 6) to the Controlling Party under this Agreement: (i) the Controlling Party shall
keep the Non-Controlling Party informed in a timely manner of all actions taken or proposed to be taken by the Controlling Party
with respect to such potential adjustment in such Tax Contest; (ii) the Controlling Party shall provide the Non-Controlling
Party copies of any written materials relating to such potential adjustment in such Tax Contest received from any Tax Authority;
(iii) the Controlling Party shall timely provide the Non-Controlling Party with copies of any correspondence or filings submitted
to any Tax Authority or judicial authority in connection with such potential adjustment in such Tax Contest; and (iv) the
Controlling Party shall consult with the Non-Controlling Party and offer the Non-Controlling Party a reasonable opportunity to
comment before submitting any written materials prepared or furnished in connection with such potential adjustment in such Tax
Contest. The failure of the Controlling Party to take any action specified in the preceding sentence with respect to the Non-Controlling
Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party
under this Agreement except to the extent that the Non-Controlling Party was actually harmed by such failure, and in no event shall
such failure relieve the Non-Controlling Party from any other liability or obligation which it may have to the Controlling Party.
In the case of any Tax Contest described in Section 10.02(a) or (b), “Controlling Party” means the
Company entitled to control the Tax Contest under such Section and “Non-Controlling Party” means the
other Company.

 

(d) Tax Contest Participation. Unless
waived by the parties in writing, the Controlling Party shall provide the Non-Controlling Party with written notice reasonably
in advance of, and the Non-Controlling Party shall have the right to request to attend, any formally scheduled meetings with Tax
Authorities or hearings or proceedings before any judicial authorities in connection with any potential adjustment in a Tax Contest
pursuant to which the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment (or
any payment under Section 6) to the Controlling Party under this Agreement. The failure of the Controlling Party to provide
any notice specified in this Section 10.02(d) to the Non-Controlling Party shall not relieve the Non-Controlling Party of
any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the extent that the Non-Controlling
Party was actually harmed by such failure, and in no event shall such failure relieve the Non-Controlling Party from any other
liability or obligation which it may have to the Controlling Party.

 

(e) Power of Attorney. Each member
of the SpinCo Group shall execute and deliver to Distributing (or such member of the Distributing Group as Distributing shall designate)
any power of attorney or other similar document reasonably requested by Distributing (or such designee) in connection with any
Tax Contest (as to which Distributing is the Controlling Party) described in this Section 10.

 

Section 11. Effective Date; Termination
of Prior Intercompany Tax Allocation Agreements. This Agreement shall be effective as of the date hereof. As of the
date hereof, (i) all prior intercompany Tax allocation agreements or arrangements shall be terminated, and (ii) amounts
due under or contemplated by such agreements or arrangements as of the date hereof shall be settled as of the date hereof. Upon
such termination and settlement, no further payments by or to Distributing or by or to SpinCo, with respect to such agreements
or arrangements shall be made, and all other rights and obligations resulting from such agreements or arrangements between the
Companies and their Affiliates shall cease at such time. Any payments pursuant to such agreements or arrangements shall be disregarded
for purposes of computing amounts due under this Agreement.

 

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Section 12. Survival of Obligations.
The representations, warranties, covenants and agreements set forth in this Agreement shall be unconditional and absolute and shall
remain in effect without limitation as to time.

 

Section 13. Treatment of Payments;
Tax Gross Up. 

 

Section 13.01 Treatment of
Tax Indemnity and Tax Benefit Payments. In the absence of any change in Tax treatment under the Code or other applicable
Tax Law any payments made under this Agreement (and any deemed distributions or contributions relating to Taxes or Tax Attributes)
shall be reported for Tax purposes by the payor and the recipient as occurring immediately before the Contribution.

 

Section 13.02 Tax Gross Up.
If notwithstanding the manner in which Tax indemnity payments and Tax Benefit payments were reported, there is an adjustment to
the Tax liability of a Company as a result of its receipt of a payment pursuant to this Agreement, such payment shall be appropriately
adjusted so that the amount of such payment, reduced by the amount of all Income Taxes payable as a Full Taxpayer with respect
to the receipt thereof (but taking into account all correlative Tax Benefits resulting from the payment of such Income Taxes),
shall equal the amount of the payment which the Company receiving such payment would otherwise be entitled to receive pursuant
to this Agreement.

 

Section 13.03 Interest Under
This Agreement. Anything herein to the contrary notwithstanding, to the extent one Company (“Indemnitor”)
makes a payment of interest to another Company (“Indemnitee”) under this Agreement with respect to the
period from the date that the Indemnitee made a payment of Tax to a Tax Authority to the date that the Indemnitor reimbursed the
Indemnitee for such Tax payment, the interest payment shall be treated as interest expense to the Indemnitor (deductible to the
extent provided by law) and as interest income by the Indemnitee (includible in income to the extent provided by law). The amount
of the payment shall not be adjusted under Section 2.02 to take into account any associated Tax Benefit to the Indemnitor
or increase in Tax to the Indemnitee.

 

Section 14. Disagreements.
The Companies mutually desire that friendly collaboration will continue between them. Accordingly, they will try, and they will
cause their respective Group members to try, to resolve in an amicable manner all disagreements and misunderstandings connected
with their respective rights and obligations under this Agreement, including any amendments hereto. In furtherance thereof, in
the event of any dispute or disagreement (a “Tax Dispute”) between any member of the Distributing Group
and any member of the SpinCo Group as to the interpretation of any provision of this Agreement or the performance of obligations
hereunder, the Tax departments of the Companies shall negotiate in good faith to resolve the Tax Dispute. If such good faith negotiations
do not resolve the Tax Dispute within thirty (30) days after the initial written notice of the Tax Dispute (or such longer
period that the parties hereto agree to), then the matter shall be resolved pursuant to the procedures set forth in Article IX
of the Separation and Distribution Agreement, provided, however, that upon the request of either Company, the arbitrator
selected by each of the parties pursuant to Article IX shall be a recognized tax professional, such as a United States tax counsel
or accountant of recognized national standing. Nothing in this Section 14 will prevent either Company from seeking injunctive
relief if any delay resulting from the efforts to resolve the Tax Dispute through the procedures set forth in Article IX of the
Separation and Distribution Agreement could result in serious and irreparable injury to either Company. Notwithstanding anything
to the contrary in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement, Distributing and SpinCo
are the only members of their respective Group entitled to commence a dispute resolution procedure under this Agreement, and each
of Distributing and SpinCo will cause its respective Group members not to commence any dispute resolution procedure other than
through such party as provided in this Section 14.

  

Section 15. Reserved.

 

Section 16. Expenses. Except
as otherwise provided in this Agreement, each party and its Affiliates shall bear their own expenses incurred in connection with
preparation of Tax Returns, Tax Contests, and other matters related to Taxes under the provisions of this Agreement.

 

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Section 17. General Provisions.

 

Section 17.01 Addresses and
Notices. Each party giving any notice required or permitted under this Agreement will give the notice in writing and use
one of the following methods of delivery to the party to be notified, at the address set forth below or another address of which
the sending party has been notified in accordance with this Section 17.01: (a) personal delivery; (b) facsimile
or telecopy transmission with a reasonable method of confirming transmission; (c) commercial overnight courier with a reasonable
method of confirming delivery; or (d) pre-paid, United States of America certified or registered mail, return receipt requested.
Notice to a party is effective for purposes of this Agreement only if given as provided in this Section 17.01 and shall be
deemed given on the date that the intended addressee actually receives the notice.

 

If to Distributing:

 

Harvard Bioscience, Inc.

84 October Hill Road

Holliston, Massachusetts 01746

Attention: Chief Financial Officer

 

If to SpinCo:

 

Harvard Apparatus Regenerative Technology, Inc.

84 October Hill Road

Holliston, Massachusetts 01746

Attention: Chief Financial Officer

 

A party may change the address for receiving notices under this
Agreement by providing written notice of the change of address to the other parties.

 

Section 17.02 Binding Effect.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and assigns.

 

Section 17.03 Waiver.
The parties may waive a provision of this Agreement only by a writing signed by the party intended to be bound by the waiver. A
party is not prevented from enforcing any right, remedy or condition in the party’s favor because of any failure or delay
in exercising any right or remedy or in requiring satisfaction of any condition, except to the extent that the party specifically
waives the same in writing. A written waiver given for one matter or occasion is effective only in that instance and only for the
purpose stated. A waiver once given is not to be construed as a waiver for any other matter or occasion. Any enumeration of a party’s
rights and remedies in this Agreement is not intended to be exclusive, and a party’s rights and remedies are intended to
be cumulative to the extent permitted by law and include any rights and remedies authorized in law or in equity.

 

Section 17.04 Severability.
If any provision of this Agreement is determined to be invalid, illegal or unenforceable, the remaining provisions of this Agreement
remain in full force, if the essential terms and conditions of this Agreement for each party remain valid, binding and enforceable.

 

Section 17.05 Authority.
Each of the parties represents to the other that (a) it has the corporate or other requisite power and authority to execute,
deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement have been duly authorized
by all necessary corporate or other action, (c) it has duly and validly executed and delivered this Agreement, and (d) this
Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general
equity principles.

 

Section 17.06 Further Action.
The parties shall execute and deliver all documents, provide all information, and take or refrain from taking action as may be
necessary or appropriate to achieve the purposes of this Agreement, including the execution and delivery to the other parties and
their Affiliates and representatives of such powers of attorney or other authorizing documentation as is reasonably necessary or
appropriate in connection with Tax Contests (or portions thereof) under the control of such other parties in accordance with Section 10.

 

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Section 17.07 Integration.
This Agreement, together with each of the exhibits and schedules appended hereto, constitutes the final agreement between the parties,
and is the complete and exclusive statement of the parties’ agreement on the matters contained herein. All prior and contemporaneous
negotiations and agreements between the parties with respect to the matters contained herein are superseded by this Agreement,
as applicable. In the event of any inconsistency between this Agreement and the Separation and Distribution Agreement, or any other
agreements relating to the transactions contemplated by the Separation and Distribution Agreement, with respect to matters addressed
herein, the provisions of this Agreement shall control.

 

Section 17.08 Construction.
The language in all parts of this Agreement shall in all cases be construed according to its fair meaning and shall not be strictly
construed for or against any party. The captions, titles and headings included in this Agreement are for convenience only, and
do not affect this Agreement’s construction or interpretation. Unless otherwise indicated, all “Section” references
in this Agreement are to sections of this Agreement.

 

Section 17.09 No Double Recovery.
No provision of this Agreement shall be construed to provide an indemnity or other recovery for any costs, damages, or other amounts
for which the damaged party has been fully compensated under any other provision of this Agreement or under any other agreement
or action at law or equity. Unless expressly required in this Agreement, a party shall not be required to exhaust all remedies
available under other agreements or at law or equity before recovering under the remedies provided in this Agreement.

 

Section 17.10 Counterparts.
The parties may execute this Agreement in multiple counterparts, each of which constitutes an original as against the party that
signed it, and all of which together constitute one agreement. This Agreement is effective upon delivery of one executed counterpart
from each party to the other party. The signatures of the parties need not appear on the same counterpart. The delivery of signed
counterparts by facsimile or email transmission that includes a copy of the sending party’s signature is as effective as
signing and delivering the counterpart in person.

 

Section 17.11 Governing Law.
The internal laws of the Commonwealth of Massachusetts (without reference to its principles of conflicts of law) govern the
construction, interpretation and other matters arising out of or in connection with this Agreement and each of the exhibits and
schedules hereto and thereto (whether arising in contract, tort, equity or otherwise).

 

Section 17.12 Jurisdiction.
If any dispute arises out of or in connection with this Agreement, except as expressly contemplated by another provision of
this Agreement, the parties irrevocably (and the parties will cause each other member of their respective Group to irrevocably)
(a) consent and submit to the exclusive jurisdiction of federal and state courts located in Commonwealth of Massachusetts,
(b) waive any objection to that choice of forum based on venue or to the effect that the forum is not convenient, and (c) WAIVE
TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO TRIAL OR ADJUDICATION BY JURY.

 

Section 17.13 Amendment. Except
as otherwise expressly provided herein with respect to the Schedules hereto, the parties may amend this Agreement only by a written
agreement signed by each party to be bound by the amendment and that identifies itself as an amendment to this Agreement.

 

Section 17.14 SpinCo Subsidiaries.
If, at any time, SpinCo acquires or creates one or more subsidiaries that are includable in the SpinCo Group, they shall be subject
to this Agreement and all references to the SpinCo Group herein shall thereafter include a reference to such subsidiaries.

 

Section 17.15 Successors.
This Agreement shall be binding on and inure to the benefit of any successor by merger, acquisition of assets, or otherwise, to
any of the parties hereto (including but not limited to any successor of Distributing or SpinCo succeeding to the Tax Attributes
of either under Section 381 of the Code), to the same extent as if such successor had been an original party to this Agreement.

 

Section 17.16 Injunctions.
The parties acknowledge that irreparable damage would occur in the event that any of the provisions of this Agreement were not
performed in accordance with its specific terms or were otherwise breached. The parties hereto shall be entitled to an injunction
or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof
in any court having jurisdiction, such remedy being in addition to any other remedy to which they may be entitled at law or in
equity.

 

[signatures on following page]

 

    	22

    	 

    

 

IN WITNESS WHEREOF, each party has caused
this Agreement to be executed on its behalf by a duly authorized officer on the date first set forth above.

 

	“Distributing”	 	“SpinCo”
	 	 	 
	Harvard Bioscience, Inc., a Delaware corporation	 	Harvard Apparatus Regenerative Technology, Inc., a Delaware corporation, for itself and on behalf of each member of the SpinCo Group
	 	 	 	 
	By:	 	 	 
	 	Name:	 	 	By:	 
	 	Title:	 	 	 	Name:	 
	 	 	 	 	 	Title:EXHIBIT 10.4

 

HARVARD APPARATUS REGENERATIVE TECHNOLOGY,
INC. 

EMPLOYMENT AGREEMENT 

 

This EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”)
is made as of the __ day of _______, 2013, to be effective as of the Commencement Date (as defined below), between Harvard Apparatus
Regenerative Technology, Inc., a Delaware corporation (the “Company”), and David Green (“Executive”). For
purposes of this Agreement the “Company” shall refer to the Company and any of its predecessors.

 

WHEREAS, the Company has employed
Executive as a common law employee, without an employment contract, prior to the spin-off of the Company by Harvard Bioscience,
Inc.; and

 

WHEREAS, the Company desires to
employ Executive and Executive desires to be employed by the Company on the terms contained herein.

 

NOW, THEREFORE, in consideration
of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties agree as follows:

 

1. Employment.
The term of this Agreement shall automatically, without the requirement of any further action or notice, commence on the date that
Harvard Bioscience, Inc. no longer beneficially owns at least 50% of the total voting power of the Company’s outstanding
capital stock (the “Commencement Date”) and shall extend until the second anniversary of the Commencement Date; provided,
however, that the term of this Agreement shall automatically be extended for two additional years on each second anniversary of
the Commencement Date unless, not less than 90 days prior to each such date, either party shall have given notice to the other
that it does not wish to extend this Agreement; provided, further, that if a Change in Control occurs during the original or extended
term of this Agreement, the term of this Agreement shall, notwithstanding anything in this sentence to the contrary, continue in
effect for a period of not less than eighteen (18) months beyond the month in which the Change in Control occurred. The
term of this Agreement shall be subject to termination as provided in Paragraph 6 and may be referred to herein as the “Period
of Employment.”

 

2. Position and Duties. During
the Period of Employment, Executive shall serve as the President and Chief Executive Officer of the Company and shall have such
powers and duties as may from time to time be prescribed by the Board of Directors (the “Board”) of the Company, provided
that such duties are consistent with Executive’s position or other positions that he may hold from time to time. Executive
shall devote his full working time and efforts to the business and affairs of the Company. Notwithstanding the foregoing, Executive
may serve on other boards of directors, with the approval of the Board as long as such service does not materially interfere with
Executive’s performance of his duties to the Company as provided in this Agreement.

 

3. Compensation and Related
Matters.

 

(a) Base
Salary and Incentive Compensation. Executive’s initial annual base salary shall be five hundred four thousand seven
hundred dollars ($504,700). Executive’s base salary shall be redetermined annually by the Board or a Committee thereof. The
base salary in effect at any given time is referred to herein as “Base Salary.” The Base Salary shall be payable in
substantially equal installments on a bi-weekly or more frequent basis. In addition to Base Salary, Executive shall be eligible
to receive cash incentive compensation as determined by the Board or a Committee thereof from time to time, and shall also be eligible
to participate in such incentive compensation plans as the Board or a Committee thereof shall determine from time to time for employees
of the same status within the hierarchy of the Company.

 

(b) Expenses. Executive
shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by him in performing services hereunder
during the Period of Employment, in accordance with the policies and procedures then in effect and established by the Company for
its senior executive officers, provided that such reimbursement does not occur later than the end of the second calendar year after
the calendar year in which such expense was incurred.

 

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(c) Other Benefits. During
the Period of Employment, Executive shall be entitled to continue to participate in or receive benefits under all of the Company’s
Employee Benefit Plans in effect on the date hereof, or under plans or arrangements that provide no less favorable treatment to
the Executive than the Employee Benefit Plans provided to other, similarly situated, members of the Company’s senior management. As
used herein, the term “Employee Benefit Plans” includes, without limitation, each pension and retirement plan; supplemental
pension, retirement and deferred compensation plan; savings and profit-sharing plan; stock ownership plan; stock purchase plan;
stock option plan; life insurance plan; medical insurance plan; disability plan; and health and accident plan or arrangement established
and maintained by the Company on the date hereof or anytime hereafter. During the Period of Employment, Executive shall be
entitled to an automobile or to lease for an automobile (the “Company Car”) for up to $1,000.00 per month and the cost
of automobile insurance for such Company Car. To the extent that the scope or nature of benefits described in this section is determined
under the policies of the Company based in whole or in part on the seniority or tenure of an employee’s service, Executive
shall be deemed to have a tenure with the Company equal to the actual time of Executive’s service with the Company. During
the Period of Employment, Executive shall be entitled to participate in or receive benefits under any Employee Benefit Plans which
may, in the future, be made available by the Company to its executives and key management employees, subject to and on a basis
consistent with the terms, conditions and overall administration of such Employee Benefit Plans. Any payments or benefits
payable to Executive under an Employee Benefit Plan referred to in this Subparagraph 3(c) in respect of any calendar year during
which Executive is employed by the Company for less than the whole of such year shall, unless otherwise provided in the applicable
Employee Benefit Plan, be prorated in accordance with the number of days in such calendar year during which he is so employed. Should
any such payments or benefits accrue on a fiscal (rather than calendar) year, then the proration in the preceding sentence shall
be on the basis of a fiscal year rather than calendar year.

 

(d) Vacations. Executive
shall be entitled to twenty (20) paid vacation days in each calendar year, which shall be accrued ratably during the calendar
year. Executive shall also be entitled to all paid holidays given by the Company to its executives. To the extent that
the scope or nature of benefits described in this section are determined under the policies of the Company based in whole or in
part on the seniority or tenure of an employee’s service, Executive shall be deemed to have a tenure with the Company equal
to the actual time of Executive’s service with Company. Notwithstanding anything herein to the contrary, Executive shall
be paid any accrued and unused vacation upon his severance of employment with the Company, if and as protected by applicable law.

 

(e) Legal Rights.
Nothing in this Agreement shall interfere with Executive’s legal rights relating to employment, including, but not limited
to, his right to a COBRA notice upon his severance of employment with the Company.

 

4. Unauthorized Disclosure.

 

(a) Confidential
Information. Executive acknowledges that in the course of his employment with the Company (and, if applicable, its predecessors),
he has been allowed to become, and will continue to be allowed to become, acquainted with the Company’s business affairs,
information, trade secrets, and other matters which are of a proprietary or confidential nature, including but not limited to the
Company’s and its affiliates’ and predecessors’ operations, business opportunities, price and cost information,
finance, customer information, business plans, various sales techniques, manuals, letters, notebooks, procedures, reports, products,
processes, services, and other confidential information and knowledge (collectively the “Confidential Information”)
concerning the Company’s and its affiliates’ and predecessors’ business. The Company agrees to provide on
an ongoing basis such Confidential Information as the Company deems necessary or desirable to aid Executive in the performance
of his duties. Executive understands and acknowledges that such Confidential Information is confidential, and he agrees not
to disclose such Confidential Information to anyone outside the Company except to the extent that (i) Executive deems such
disclosure or use reasonably necessary or appropriate in connection with performing his duties on behalf of the Company; (ii) Executive
is required by order of a court of competent jurisdiction (by subpoena or similar process) to disclose or discuss any Confidential
Information, provided that in such case, Executive shall promptly inform the Company of such event, shall cooperate with the Company
in attempting to obtain a protective order or to otherwise restrict such disclosure, and shall only disclose Confidential Information
to the minimum extent necessary to comply with any such court order; (iii) such Confidential Information becomes generally
known to and available for use in the Company’s industry (the “regenerative medicine industry”), other than as
a result of any action or inaction by Executive; or (iv) such information has been rightfully received by a member of the
regenerative medicine industry or has been published in a form generally available to regenerative medicine industry prior to the
date Executive proposes to disclose or use such information. Executive further agrees that he will not during employment and/or
at any time thereafter use such Confidential Information in competing, directly or indirectly, with the Company. At such time
as Executive shall cease to be employed by the Company, he will immediately turn over to the Company all Confidential Information,
including papers, documents, writings, electronically stored information, other property, and all copies of them provided to or
created by him during the course of his employment with the Company.

 

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(b) Heirs, successors,
and legal representatives. The foregoing provisions of this Paragraph 4 shall be binding upon Executive’s heirs,
successors, and legal representatives. The provisions of this Paragraph 4 shall survive the termination of this Agreement
for any reason.

 

5. Covenant Not to Compete or
Solicit or Hire. In consideration for Executive’s employment by the Company under the terms provided in this Agreement
and as a means to aid in the performance and enforcement of the terms of the provisions of Paragraph 4, Executive agrees that

 

(a) during
the term of Executive’s employment with the Company and for a period of twelve (12) months thereafter, regardless of
the reason for termination of employment, Executive will not, directly or indirectly, as an owner, director, principal, agent,
officer, employee, partner, consultant, servant, or otherwise, carry on, operate, manage, control, or become involved in any manner
with any business, operation, corporation, partnership, association, agency, or other person or entity which is engaged in a business
that produces products that compete directly with any of the Company’s products which are produced by the Company or any
affiliate of the Company or which the Company or any affiliate of the Company has active plans to produce as of the date of Executive’s
termination of employment with the Company, in any area or territory in which the Company or any affiliate of the Company conducts
or has active plans to conduct operations as of the date of the Executive’s termination of employment with the Company; provided,
however, that the foregoing shall not prohibit Executive from owning up to one percent (1%) of the outstanding stock of a
publicly held company engaged in the regenerative medicine industry; and

 

(b) during
the term of Executive’s employment with the Company and for a period of twelve (12) months thereafter, regardless of
the reason for termination of employment, Executive will not directly or indirectly solicit or induce any present or future employee
of the Company or any affiliate of the Company to accept employment with Executive or with any business, operation, corporation,
partnership, association, agency, or other person or entity with which Executive may be associated, and Executive will not hire
or employ or cause any business, operation, corporation, partnership, association, agency, or other person or entity with which
Executive may be associated to hire or employ any present or future employee of the Company.

 

Should Executive violate any of the provisions
of this Paragraph, then in addition to all other rights and remedies available to the Company at law or in equity, the duration
of this covenant shall automatically be extended for the period of time from which Executive began such violation until he permanently
ceases such violation.

 

6.  Termination. Executive’s
employment hereunder may be terminated without any breach of this Agreement under the following circumstances:

 

(a) Death. Executive’s
employment hereunder shall terminate upon his death.

 

(b) Disability.
If, as a result of Executive’s incapacity due to physical or mental illness, Executive shall have been absent from
his duties hereunder on a full-time basis for one hundred eighty (180) calendar days in the aggregate in any twelve (12) month
period, the Company may terminate Executive’s employment hereunder.

 

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(c) Termination
by Company For Cause. At any time during the Period of Employment, the Company may terminate Executive’s employment
hereunder for Cause if such termination is approved by not less than a majority of the Board at a meeting of the Board called and
held for such purpose. For purposes of this Agreement, “Cause” shall mean: (A) conduct by Executive
constituting a material act of willful misconduct in connection with the performance of his duties, including, without limitation,
misappropriation of funds or property of the Company or any of its affiliates other than the occasional, customary and de minimis
use of Company property for personal purposes; (B) criminal or civil conviction of Executive, a plea of nolo contendere by
Executive or conduct by Executive that would reasonably be expected to result in material injury to the reputation of the Company
if he were retained in his position with the Company, including, without limitation, conviction of a felony involving moral turpitude;
(C) continued, willful and deliberate non-performance by Executive of his duties hereunder (other than by reason of Executive’s
physical or mental illness, incapacity or disability) which has continued for more than thirty (30) days following written
notice of such non-performance from the Board; (D) a breach by Executive of any of the provisions contained in Paragraphs
4 and 5 of this Agreement; or (E) a violation by Executive of the Company’s employment policies which has continued
following written notice of such violation from the Board.

 

(d) Termination
Without Cause. At any time during the Period of Employment, the Company may terminate Executive’s employment hereunder
without Cause if such termination is approved by a majority of the Board at a meeting of the Board called and held for such purpose. Any
termination by the Company of Executive’s employment under this Agreement which does not constitute a termination for Cause
under Subparagraph 6(c) or result from the death or disability of the Executive under Subparagraph 6(a) or (b) shall be deemed
a termination without Cause. If the Company provides notice to Executive under Paragraph 1 that it does not wish to extend
the Period of Employment, such action shall be deemed a termination without Cause.

 

(e) Termination
by Executive. At any time during the Period of Employment, Executive may terminate his employment hereunder for any reason,
including but not limited to Good Reason. If Executive provides notice to the Company under Paragraph 1 that he does
not wish to extend the Period of Employment, such action shall be deemed a voluntary termination by Executive and one without Good
Reason. For purposes of this Agreement, “Good Reason” shall mean that Executive has complied with the “Good
Reason Process” (hereinafter defined) following the occurrence of any of the following events: (A) a substantial
diminution or other substantive adverse change, not consented to by Executive, in the nature or scope of Executive’s responsibilities,
authorities, powers, functions or duties; (B) any removal, during the Period of Employment, from Executive of his title of
Chief Executive Officer; (C) an involuntary reduction in Executive’s Base Salary except for across-the-board reductions
similarly affecting all or substantially all management employees; (D) a breach by the Company of any of its other material
obligations under this Agreement and the failure of the Company to cure such breach within thirty (30) days after written
notice thereof by Executive; (E) the involuntary relocation of the Company’s offices at which Executive is principally
employed or the involuntary relocation of the offices of Executive’s primary workgroup to a location more than 30 miles from
such offices, or the requirement by the Company that Executive be based anywhere other than the Company’s offices at such
location on an extended basis, except for required travel on the Company’s business to an extent substantially consistent
with Executive’s business travel obligations; or (F) the failure of the Company to obtain the agreement from any successor
to the Company to assume and agree to perform this Agreement as required by Paragraph 10 (each of which is hereinafter referred
to as a “Good Reason event”). “Good Reason Process” shall mean that (i) Executive reasonably
determines in good faith that a “Good Reason” event has occurred; (ii) Executive notifies the Company in writing
of the occurrence of the Good Reason event; (iii) Executive cooperates in good faith with the Company’s efforts, for
a period not less than ninety (90) days following such notice, to modify Executive’s employment situation in a manner
acceptable to Executive and Company; and (iv) notwithstanding such efforts, one or more of the Good Reason events continues
to exist and has not been modified in a manner acceptable to Executive. If the Company cures the Good Reason event in a manner
acceptable to Executive during the ninety (90) day period, Good Reason shall be deemed not to have occurred.

 

(f) Notice of Termination.
Except for termination as specified in Subparagraph 6(a), any termination of Executive’s employment by the Company or any
such termination by Executive shall be communicated by written Notice of Termination to the other party hereto and shall be effective
on the Date of Termination (as defined below). For purposes of this Agreement, a “Notice of Termination” shall
mean a notice which shall indicate the specific termination provision in this Agreement relied upon.

 

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(g) Date of Termination.
“Date of Termination” shall mean: (A) if Executive’s employment is terminated by his death, the date
of his death; (B) if Executive’s employment is terminated on account of disability under Subparagraph 6(b) or by the
Company for Cause under Subparagraph 6(c), the date on which Notice of Termination is given or such later date as the Company may
specify in the Notice of Termination; (C) if Executive’s employment is terminated by the Company under Subparagraph
6(d), sixty (60) days after the date on which a Notice of Termination is given or such later date as the Company may specify
in the Notice of Termination (or, if such termination occurs as a result of the Company providing notice to Executive under Paragraph 1
that it does not wish to extend the Period of Employment, the date of the expiration of the current term of this Agreement); and
(D) if Executive’s employment is terminated by Executive under Subparagraph 6(e), thirty (30) days after the date
on which a Notice of Termination is given or, if such termination is without Good Reason, such later date up to sixty (60) days
after the date on which such Notice of Termination is given as Executive may specify in the Notice of Termination (or, if such
termination occurs as a result of the Company providing notice to Executive under Paragraph 1 that it does not wish to extend
the Period of Employment, the date of the expiration of the current term of this Agreement).

 

(h) Separation from Service.
Notwithstanding anything herein to the contrary, no event shall constitute a “termination of employment” in this Agreement,
unless such event is also a “separation from service,” as that term is defined for purposes of Section 409A of the
Internal Revenue Code of 1986, as amended (“Code”), and Treasury Regulation §1.409A-3(a)(1).

 

7. Compensation Upon Termination
or During Disability. 

 

(a) Death. If
Executive’s employment terminates by reason of his death, the Company shall, within ninety (90) days of death, pay in
a lump sum amount to such person as Executive shall designate in a notice filed with the Company or, if no such person is designated,
to Executive’s estate, Executive’s accrued and unpaid Base Salary to the date of his death, plus his accrued and unpaid
incentive compensation, if any, under Subparagraph 3(a). Upon the death of Executive, all unvested stock options shall immediately
vest in Executive’s estate or other legal representatives and become exercisable. All other stock-based grants and awards
held by Executive shall vest or be canceled upon the death of Executive in accordance with their terms. For a period of one
(1) year following the Date of Termination, the Company shall pay such health insurance premiums as may be necessary to allow
Executive’s spouse and dependents to receive health insurance coverage substantially similar to coverage they received prior
to the Date of Termination. In addition to the foregoing, any payments to which Executive’s spouse, beneficiaries, or
estate may be entitled under any employee benefit plan shall also be paid in accordance with the terms of such plan or arrangement.
Such payments, in the aggregate, shall fully discharge the Company’s obligations hereunder.

 

(b) Disability.
During any period that Executive fails to perform his duties hereunder as a result of incapacity due to physical or mental illness,
Executive shall continue to receive his accrued and unpaid Base Salary and accrued and unpaid incentive compensation, if any, under
Subparagraph 3(a), until Executive’s employment is terminated due to disability in accordance with Subparagraph 6(b) or until
Executive terminates his employment in accordance with Subparagraph 6(e), whichever first occurs. Upon the Date of Termination
by reason of Executive’s disability, all unvested stock options shall immediately vest and become exercisable. All other
stock-based grants and awards held by Executive shall vest or be canceled upon the Date of Termination in accordance with their
terms. For a period of one (1) year following the Date of Termination, the Company shall pay such health insurance premiums
as may be necessary to allow Executive and Executive’s spouse and dependents to receive health insurance coverage substantially
similar to coverage they received prior to the Date of Termination. Upon termination due to death prior to the termination first
to occur as specified in the preceding sentence, Subparagraph 7(a) shall apply.

 

(c) Termination
other than for Good Reason. If Executive’s employment is terminated by Executive other than for Good Reason as provided
in Subparagraph 6(e), then the Company shall, through the Date of Termination, pay Executive his accrued and unpaid Base Salary
at the rate in effect at the time Notice of Termination is given. Thereafter, the Company shall have no further obligations
to Executive except as otherwise expressly provided under this Agreement, provided any such termination shall not adversely affect
or alter Executive’s rights under any employee benefit plan of the Company in which Executive, at the Date of Termination,
has a vested interest, unless otherwise provided in such employee benefit plan or any agreement or other instrument attendant thereto.

 

(d) Termination
by Executive for Good Reason or by the Company without Cause. By ninety (90) days after the Executive’s employment
is terminated for Good Reason as provided in Subparagraph 6(e) or without Cause as provided in Subparagraph 6(d), the Company shall,
through the Date of Termination, pay Executive in a lump sum his accrued and unpaid Base Salary at the rate in effect at the time
Notice of Termination is given and his accrued and unpaid incentive compensation, if any, under Subparagraph 3(a). In addition,
subject to the Executive’s execution of a general release of claims in the form attached hereto as Exhibit A within
21 days after the Date of Termination and the expiration of the seven-day revocation period applicable thereto, by the later of
(i) the last day of the period for signing and revoking the general release of claims in the form set forth in Exhibit A hereof
(“Release”), or (ii) ninety (90) days after the Executive’s employment is terminated for Good Reason as provided
in Subparagraph 6(e) or without Cause as provided in Subparagraph 6(d),

 

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(i) the Company shall
pay Executive an amount equal to two (2) times the sum of (A) Executive’s Average Base Salary and (B) Executive’s Average
Incentive Compensation (the “Severance Amount”). The Severance Amount shall be paid in cash in a single lump sum payment. For
purposes of this Agreement, “Average Base Salary” shall mean the greater of (X) the average of the annual Base Salary
received by Executive during the three (3) immediately preceding complete fiscal years or such fewer number of complete fiscal
years as Executive may have been employed by the Company or (Y) the amount of Base Salary for the immediately prior fiscal year. For
purposes of this Agreement, “Average Incentive Compensation” shall mean the average of the annual cash incentive compensation
under Subparagraph 3(a) received by Executive for the three (3) immediately preceding fiscal years or such fewer number of
complete fiscal years as Executive may have been employed by the Company or the amount of cash incentive compensation for the prior
fiscal year, whichever is higher. In no event shall “Average Incentive Compensation” include any sign-on bonus,
retention bonus or any other special bonus. Notwithstanding the foregoing, if the Executive breaches any of the provisions
contained in Paragraphs 4 and 5 of this Agreement, all payments of the Severance Amount shall immediately cease and the entire
Severance Amount shall be forfeited and become repayable to the Company to the extent paid. Furthermore, in the event Executive
terminates his employment for Good Reason as provided in Subparagraph 6(e), he shall be entitled to the Severance Amount only if
he provides the Notice of Termination provided for in Subparagraph 6(f) within thirty (30) days after he has complied with
the Good Reason Process; and

 

(ii) upon the Date of
Termination, each unvested stock option that would otherwise vest during the next twenty four (24) months shall accelerate
and immediately vest. All other stock-based grants and awards held by Executive that would otherwise vest during the next
twenty four (24) months shall accelerate and immediately vest upon the Date of Termination; and

 

(iii) in addition to any
other benefits to which Executive may be entitled in accordance with the Company’s then existing severance policies, the
Company shall, for a period of one (1) year commencing on the Date of Termination, pay such health insurance premiums as may
be necessary to allow Executive and Executive’s spouse and dependents to continue to receive health insurance coverage.

 

(e) Termination
for Cause. If Executive’s employment is terminated by the Company for Cause as provided in Subparagraph 6(c), then
the Company shall, through the Date of Termination, pay Executive his accrued and unpaid Base Salary at the rate in effect at the
time Notice of Termination is given. Thereafter, the Company shall have no further obligations to Executive except as otherwise
expressly provided under this Agreement, provided any such termination shall not adversely affect or alter Executive’s rights
under any employee benefit plan of the Company in which Executive, at the Date of Termination, has a vested interest, unless otherwise
provided in such employee benefit plan or any agreement or other instrument attendant thereto. In addition, all stock options
held by Executive as of the Date of Termination shall immediately terminate and be of no further force and effect, and all other
stock-based grants and awards shall be canceled or terminated in accordance with their terms.

 

Nothing contained in the foregoing Subparagraphs 7(a) through
7(e) shall be construed so as to affect Executive’s rights or the Company’s obligations relating to agreements or benefits
which are unrelated to termination of employment.

 

8. Change in Control Payment.
The provisions of this Paragraph 8 set forth certain terms of an agreement reached between Executive and the Company regarding
Executive’s rights and obligations upon the occurrence of a Change in Control of the Company. These provisions are intended
to assure and encourage in advance Executive’s continued attention and dedication to his assigned duties and his objectivity
during the pendency and after the occurrence of any such event.

 

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(a) Change in Control. If
within eighteen (18) months after the occurrence of the first event constituting a Change in Control, Executive’s employment
is terminated by the Company without Cause as provided in Subparagraph 6(d) or Executive terminates his employment for Good Reason
as provided in Subparagraph 6(e), then, subject to the Executive executing a general release of claims in the form attached hereto
as Exhibit A within 21 days after the Date of Termination and the expiration of the seven-day revocation period applicable
thereto, by the later of (i) the last day of the period for signing and revoking the general release of claims in the form set
forth in Exhibit A hereof (“Release”), or (ii) ninety (90) days after the Executive’s employment is terminated
as provided above in this Section 8(a):

 

(i) In lieu of any amounts
otherwise payable pursuant to Subparagraph 7(d)(i), the Company shall pay Executive a single lump sum in cash equal to three times
the sum of (A) Executive’s current or most recent annual Base Salary plus (B) Executive’s most recent annual
cash incentive compensation under Subparagraph 3(a) for the most recent fiscal year, excluding any sign-on bonus, retention bonus
or any other special bonus;

 

(ii) Notwithstanding anything
to the contrary in any applicable option agreement or stock-based award agreement and in lieu of any acceleration of vesting that
would otherwise occur pursuant to Subparagraph 7(d)(ii), upon a Change in Control, all stock options and other stock-based awards
granted to Executive by the Company shall immediately accelerate and become exercisable or non-forfeitable as of the effective
date of such Change in Control. Executive shall also be entitled to any other rights and benefits with respect to stock-related
awards, to the extent and upon the terms provided in the employee stock option or incentive plan or any agreement or other instrument
attendant thereto pursuant to which such options or awards were granted; and

 

(iii) In lieu of the Company’s
obligations to pay health insurance premiums pursuant to Subparagraph 7(d)(iii), the Company shall, for a period of one (1) year
commencing on the Date of Termination, pay such health insurance premiums as may be necessary to allow Executive, Executive’s
spouse and dependents to continue to receive health insurance coverage substantially similar to the coverage they received prior
to the Date of Termination.

 

(b) Gross Up Payment.

 

(i) Anything in this Agreement
to the contrary notwithstanding, in the event it shall be determined that any compensation, payment or distribution by the Company
to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement
or otherwise (the “Severance Payments”), would be subject to the excise tax imposed by Section 4999 of the Internal
Revenue Code of 1986, as amended (the “Code”), or any interest or penalties are incurred by Executive with respect
to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as
the “Excise Tax”), then Executive shall be entitled to receive an additional payment or payments (collectively, the
“Gross-Up Payment”) such that the net amount retained by Executive, after deduction of (x) any Excise Tax on the
Severance Payments, (y) any Federal, state, and local income tax, employment tax and Excise Tax, in each case resulting from
the Gross-Up Payment provided by this Subparagraph 8(b)(i), and (z) any interest and/or penalties assessed with respect
to such Excise Tax, but without deducting any other amounts that may be payable by Executive as a result of the Severance Payments,
including, without limitation, any Federal, state, and local income tax or employment tax, other than those specifically described
clauses (x), (y) and (z) above, due as a result of the Severance Payments, shall be equal to the Severance Payments.

 

    	7

    	 

    

 

(ii) Subject to the provisions
of Subparagraph 8(b)(iii), all determinations required to be made under this Subparagraph 8(b)(ii), including whether a Gross-Up
Payment is required and the amount of such Gross-Up Payment, shall be made by KPMG LLP or any other nationally recognized accounting
firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to
the Company and Executive within fifteen (15) business days of the Date of Termination, if applicable, or at such earlier
time as is reasonably requested by the Company or Executive. For purposes of determining the amount of the Gross-Up Payment,
Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals
for the calendar year in which the Gross-Up Payment is to be made, and state and local income taxes at the highest marginal rates
of individual taxation in the state and locality of Executive’s residence on the Date of Termination, net of the maximum
reduction in federal income taxes which could be obtained from deduction of such state and local taxes. The Gross-Up Payment,
if any, as determined pursuant to this Subparagraph 8(b)(ii), shall be paid to the relevant tax authorities as withholding taxes
on behalf of the Executive at such time or times as when each Excise Tax payment is due. Any determination by the Accounting Firm
shall be binding upon the Company and Executive. As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which
will not have been made by the Company should have been made (an “Underpayment”). In the event that the Company
exhausts its remedies pursuant to Subparagraph 8(b)(iii) and Executive thereafter is required to make a payment of any Excise Tax,
the Accounting Firm shall determine the amount of the Underpayment that has occurred, consistent with the calculations required
to be made hereunder, and any such Underpayment, and any interest and penalties imposed on the Underpayment and required to be
paid by Executive in connection with the proceedings described in Subparagraph 8(b)(iii), shall be promptly paid by the Company
to the relevant tax authorities as withholding taxes on behalf of the Executive.

 

(iii) Executive shall
notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the
Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten (10) business
days after Executive knows of such claim and shall apprise the Company of the nature of such claim and the date on which such claim
is requested to be paid. Executive shall not pay such claim prior to the expiration of the 30-day period following the date
on which he gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect
to such claim is due). If the Company notifies Executive in writing prior to the expiration of such period that it desires
to contest such claim, provided that the Company has set aside adequate reserves to cover the Underpayment and any interest and
penalties thereon that may accrue, Executive shall:

 

(A) give the Company any
information reasonably requested by the Company relating to such claim,

 

(B) take such action in
connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without
limitation, accepting legal representation with respect to such claim by an attorney selected by the Company,

 

(C) cooperate with the
Company in good faith in order to effectively contest such claim, and

 

(D) permit the Company
to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs
and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold
Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties with respect thereto,
imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions
of this Subparagraph 8(b)(iii), the Company shall control all proceedings taken in connection with such contest and, at its sole
option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority
in respect of such claim and may, at its sole option, either direct Executive to pay the tax claimed and sue for a refund or contest
the claim in any permissible manner, and Executive agrees to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however,
that if the Company directs Executive to pay such claim and sue for a refund, the Company shall pay such amount to the applicable
tax authority on behalf of the Executive as an additional Gross-Up Payment and shall indemnify and hold Executive harmless, on
an after-tax basis, from any Excise Tax or income tax, including interest or penalties imposed with respect thereto or with respect
to any imputed income; and further provided that any extension of the statute of limitations relating to payment of taxes for the
taxable year of Executive with respect to which such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which a Gross-Up
Payment would be payable hereunder and Executive shall be entitled to settle or contest, as the case may be, any other issues raised
by the Internal Revenue Service or any other taxing authority.

 

    	8

    	 

    

 

(iv) If, after a Gross-Up
Payment by the Company on behalf of the Executive pursuant to Subparagraph 8(b)(iii), Executive becomes entitled to receive any
refund with respect to such claim, Executive shall (subject to the Company’s complying with the requirements of Subparagraph
8(b)(iii)) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes
applicable thereto).

 

(c) Definitions.
For purposes of this Paragraph 8, the following terms shall have the following meanings:

 

“Change in Control”
shall mean any of the following:

 

(a) a change in effective
control consistent with Regulation §1.409A-3(i)(vi) such that any “person,” as such term is used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended (the “Act”) (other than the Company, any of its subsidiaries,
or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company
or any of its subsidiaries), together with all “affiliates” and “associates” (as such terms are defined
in Rule 12b-2 under the Act) of such person, shall become the “beneficial owner” (as such term is defined in Rule 13d-3
under the Act), directly or indirectly, of securities of the Company representing thirty (30) percent (30%) or more of the
combined voting power of the Company’s then outstanding securities having the right to vote in an election of the Company’s
Board (“Voting Securities”) (other than as a result of an acquisition of securities directly from the Company); or

 

(b) a change in effective
control consistent with Regulation §1.409A-3(i)(vi) such that persons who, as of the Commencement Date, constitute the Company’s
Board (the “Incumbent Directors”) cease for any reason, including, without limitation, as a result of a tender offer,
proxy contest, merger or similar transaction, to constitute at least a majority of the Board, provided that any person becoming
a director of the Company subsequent to the Commencement Date shall be considered an Incumbent Director if such person’s
election was approved by or such person was nominated for election by a vote of at least a majority of the Incumbent Directors;
but provided further, that any such person whose initial assumption of office is in connection with an actual or threatened election
contest relating to the election of members of the Board or other actual or threatened solicitation of proxies or consents by or
on behalf of a person other than the Board, including by reason of agreement intended to avoid or settle any such actual or threatened
contest or solicitation, shall not be considered an Incumbent Director; or

 

(c) a change in ownership
consistent with Regulation §1.409A-3(i)(v) and (vii) such that the stockholders of the Company shall approve (A) any
consolidation or merger of the Company where the stockholders of the Company, immediately prior to the consolidation or merger,
would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Act),
directly or indirectly, shares representing in the aggregate more than fifty percent (50%) of the voting shares of the Company
issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), (B) any sale, lease,
exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan)
of all or substantially all of the assets of the Company or (C) any plan or proposal for the liquidation or dissolution of
the Company.

 

Notwithstanding the foregoing, a “Change
of Control” shall not be deemed to have occurred for purposes of the foregoing clause (a) solely as the result of an
acquisition of securities by the Company which, by reducing the number of shares of the Company’s common stock, par value
$0.01 per share (“Common Stock”) or other Voting Securities outstanding, increases the proportionate number of shares
beneficially owned by any person to thirty percent (30%) or more of the combined voting power of all of the then outstanding
Voting Securities; provided, however, that if any person referred to in this sentence shall thereafter become the
beneficial owner of any additional shares of Voting Securities or Common Stock (other than pursuant to a stock split, stock dividend,
or similar transaction or as a result of an acquisition of securities directly from the Company) and immediately thereafter beneficially
owns thirty percent (30%) or more of either the combined voting power of all of the then outstanding Voting Securities, then
a “Change of Control” shall be deemed to have occurred for purposes of the foregoing clause (a).

 

    	9

    	 

    

 

9. Stock Options Grant/Vesting.
Subject to the terms and conditions of the Company’s 2013 Equity Incentive Plan (the “Plan”), and your timely
execution of a stock option agreement evidencing the option grant as well as a certain termination and waiver agreement with Harvard
Bioscience, Inc. (terminating your employment agreement with Harvard Bioscience effective as of the Commencement Date and waiving
your rights under such employment agreement to terminate your employment with Harvard Bioscience for “good reason”
due to a substantial diminution or other substantive adverse change in their responsibilities, powers, or duties arising from your
new role at the Company and execution hereof), on the IPO Closing Date (as defined in the Plan), the Company will grant you (i)
an option to purchase shares of Common Stock in an amount to be determined prior to the grant but which shall be equal to an amount
that assuming it was exercised at the time of grant, would provide you with six percent (6%) of the ownership interests in the
Company at such time at an exercise price equal to the current common stock price as of the date of grant (the “Initial Grant”)
and (ii) an option to purchase up to one half of the shares subject to the Initial Grant at an exercise price equal to the then
current common stock purchase price as of the date of the grant (the “Milestone Grant”). With respect to the Initial
Grant, the option shall vest annually in four equal annual installments on January 1 of each year for four consecutive years commencing
with the January 1 immediately following the date of grant. With respect to the Milestone Grant, the option shall vest in one third
increments subject to certain Company performance milestones to be determined by the Board of Directors. In addition, the Initial
Grant and the Milestone Grant will not be exerciseable until the date that Harvard Bioscience, Inc. no longer beneficially owns
at least 50% of the total voting power of the Company’s outstanding capital stock. Subject to certain limitations, upon a
Change in Control (as defined in Section 8 above), the Initial Grant and Milestone Grant shall become fully vested and fully exerciseable.
The options that comprise the Initial Grant shall be incentive stock options to the extent of the $100,000 threshold and the remainder
shall be non-qualified stock options. The options that comprise the Milestone Grant shall be non-qualified stock options.

 

10. Notice. For purposes
of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to
have been duly given when delivered or mailed by United States certified mail, return receipt requested, postage prepaid, addressed
as follows:

 

if to the Executive:

 

At his home address as shown

in the Company’s personnel records;

 

if to the Company:

 

Harvard Apparatus Regenerative Technology, Inc.

84 October Hill Road

Holliston, Massachusetts 01746

Attention: Board of Directors of Harvard Apparatus
Regenerative Technology, Inc.

 

with a copy to:

 

Josef B. Volman

Burns & Levinson LLP

125 Summer Street

Boston, MA 02110

 

or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

11. Successor to Company.
The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same
extent that the Company would be required to perform it if no succession had taken place. Failure of the Company to obtain
an assumption of this Agreement at or prior to the effectiveness of any succession shall be a breach of this Agreement and shall
constitute Good Reason if the Executive elects to terminate employment.

 

    	10

    	 

    

 

12. Miscellaneous. No
provisions of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to
in writing and signed by Executive and such officer of the Company as may be specifically designated by the Board. No waiver
by either party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No
agreements or representations, oral or otherwise, express or implied, unless specifically referred to herein, with respect to the
subject matter hereof have been made by either party which are not set forth expressly in this Agreement. The validity, interpretation,
construction, and performance of this Agreement shall be governed by the laws of the Commonwealth of Massachusetts (without regard
to principles of conflicts of laws).

 

13. Validity. The invalidity
or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect. The invalid portion of this Agreement, if any, shall
be modified by any court having jurisdiction to the extent necessary to render such portion enforceable.

 

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

 

15. Arbitration; Other Disputes.
In the event of any dispute or controversy arising under or in connection with this Agreement, the parties shall first promptly
try in good faith to settle such dispute or controversy by mediation under the applicable rules of the American Arbitration Association
before resorting to arbitration. In the event such dispute or controversy remains unresolved in whole or in part for a period
of thirty (30) days after it arises, the parties will settle any remaining dispute or controversy exclusively by arbitration
in Boston, Massachusetts, in accordance with the rules of the American Arbitration Association then in effect. Judgment may
be entered on the arbitrator’s award in any court having jurisdiction. Notwithstanding the above, the Company shall
be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any
violation of Paragraph 4 or 5 hereof. Furthermore, should a dispute occur concerning Executive’s mental or physical
capacity as described in Subparagraph 6(b), 6(c) or 7(b), a doctor selected by Executive and a doctor selected by the Company shall
be entitled to examine Executive. If the opinion of the Company’s doctor and Executive’s doctor conflict, the
Company’s doctor and Executive’s doctor shall together agree upon a third doctor, whose opinion shall be binding.

 

16. Third-Party Agreements and
Rights. Executive represents to the Company that Executive’s execution of this Agreement, Executive’s
employment with the Company and the performance of Executive’s proposed duties for the Company will not violate any obligations
Executive may have to any employer or other party, and Executive will not bring to the premises of the Company any copies or other
tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.

 

17. Litigation and Regulatory
Cooperation. During and after Executive’s employment, Executive shall reasonably cooperate with the Company in the
defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of
the Company which relate to events or occurrences that transpired while Executive was employed by the Company; provided, however,
that such cooperation shall not materially and adversely affect Executive or expose Executive to an increased probability of civil
or criminal litigation. Executive’s cooperation in connection with such claims or actions shall include, but not be
limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company
at mutually convenient times. During and after Executive’s employment, Executive also shall cooperate fully with the
Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation
or review relates to events or occurrences that transpired while Executive was employed by the Company. The Company shall
also provide Executive with compensation on an hourly basis at a rate equivalent to the hourly rate of the Executive’s last
annual Base Salary calculated using a forty (40) hour week over fifty-two (52) weeks for requested litigation and regulatory
cooperation that occurs after his termination of employment, and reimburse Executive for all costs and expenses incurred in connection
with his performance under this Paragraph 17, including, but not limited to, reasonable attorneys’ fees and costs.

 

18. Section 409A of the Code.

 

(a) Anything in this Agreement
to the contrary notwithstanding, if at the time of the Executive’s separation from service within the meaning of Section 409A
of the Code, the Company determines that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i)
of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement on account of
the Executive’s separation from service would be considered deferred compensation subject to the 20 percent additional tax
imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code,
such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months
and one day after the Executive’s separation from service, or (B) the Executive’s death.

 

    	11

    	 

    

 

(b) The parties intend that
this Agreement will be administered in accordance with Section 409A of the Code. To the extent that any provision of this
Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so
that all payments hereunder comply with Section 409A of the Code. The parties agree that this Agreement may be amended, as
reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related
rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

 

(c) The determination of whether
and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation
Section 1.409A-1(h).

 

(d) The Company makes no representation
or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined
to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions
of, such Section.

 

(e) Notwithstanding anything
herein to the contrary, no event shall constitute a “termination of employment” in this Agreement, unless such event
is also a “separation from service,” as that term is defined for purposes of Section 409A of the Internal Revenue Code
of 1986, as amended (“Code”), and Treasury Regulation §1.409A-3(a)(1).

 

    	12

    	 

    

 

IN WITNESS WHEREOF, the parties
have executed this Agreement effective on the date and year first above written.

 

	 	HARVARD APPARATUS
	 	REGENERATIVE TECHNOLOGY, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	EXECUTIVE
	 	 	 
	 	 	 
	 	 	David Green

 

    	 

    	 

    

 

EXHIBIT A- FORM OF GENERAL RELEASE OF CLAIMS

 

This Release Agreement (the “Release Agreement”)
is entered into between David Green (the “Executive”) and Harvard Apparatus Regenerative Technology, Inc. (the
“Company”). This is the Release Agreement referenced in the Agreement between the Executive and the Company
dated [_____________], 2013 (the “Employment Agreement”). The consideration for the Executive’s agreement
to this Release Agreement consists of certain termination benefits as set forth in the Employment Agreement and the terms of this
Release Agreement. The consideration for the Company’s agreement to this Release Agreement consists of the terms of this
Release Agreement.

 

The Executive and the Company (together, the “Parties”)
agree as follows:

 

Release. The Executive voluntarily
releases and forever discharges the Company and each of its subsidiaries, affiliates, predecessors, successors, assigns, and current
and former directors, officers, employees, representatives, attorneys, agents, and all persons acting by, through, under or in
concert with any of the foregoing (any and all of whom or which are hereinafter referred to as “Company Parties”),
from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, actions,
causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorney’s fees and costs actually
incurred), of any nature whatsoever, known or unknown (collectively, “Claims”) that the Executive now has, owns
or holds, or claims to have, own, or hold, or that he at any time had, owned, or held, or claimed to have had, owned, or held against
any Company Party or Parties. This general release of Claims includes, without implication of limitation, the release of all Claims:

 

		•	relating to the Executive’s employment by and termination from employment with the Company;

 

		•	of wrongful discharge;

 

		•	of breach of contract;

 

		•	of retaliation or discrimination under federal, state or local law (including, without limitation, Claims of age discrimination
or retaliation under the Age Discrimination in Employment Act, Claims of disability discrimination or retaliation under the Americans
with Disabilities Act, Claims of discrimination or retaliation under Title VII of the Civil Rights Act of 1964 and Claims of discrimination
or retaliation under Mass. Gen. Laws ch. 151B);

 

		•	under any other federal or state statute, to the fullest extent that Claims may be released;

 

		•	of defamation or other torts;

 

		•	of violation of public policy;

 

		•	for salary, bonuses, vacation pay or any other compensation or benefits; and

 

		•	for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive
relief and attorney’s fees.

 

1. Limitations on Release.

 

(a) Employment Agreement.
Nothing in this Release Agreement limits either Party’s rights under the Employment Agreement.

 

(b) Benefit and Enforcement
Rights. Nothing in this Release Agreement is intended to release or waive the Executive’s right to COBRA, unemployment
insurance benefits or any accrued and vested retirement benefits, the right to seek enforcement of this Release Agreement or any
rights referenced in this Section of this Release Agreement.

 

(c) Indemnification.
It is further understood and agreed that the Executive’s rights to indemnification as provided in the Company’s certificate
of incorporation, bylaws or any indemnification agreement between the Company and the Executive (it being acknowledged and agreed
by the Executive that, as of the date of this Agreement, there are no amounts owing to the Executive pursuant to any such indemnification
rights), remain fully binding and in full effect subsequent to the execution of this Release Agreement.

 

    	 

    	 

    

 

(d) Exceptions. This
Release Agreement does not prohibit or restrict the Executive from communicating, providing relevant information to or otherwise
cooperating with the EEOC or any other governmental authority with responsibility for the administration of fair employment practices
laws regarding a possible violation of such laws or responding to any inquiry from such authority, including an inquiry about the
existence of this Release Agreement or its underlying facts. This Release Agreement also does not preclude the Executive from benefiting
from classwide injunctive relief awarded in any fair employment practices case brought by any governmental agency; provided that
such relief does not result in the Executive’s receipt of any monetary benefit or substantial equivalent thereof.

 

2. No Assignment. Each Party represents
that he or it has not assigned to any other person or entity any Claims against any other Party or, in the case of the Executive,
any Claim against any Company Party.

 

3. No Disparagement. The Executive
shall not make any disparaging statements about the Company, members of the Board of Directors, any officer of the Company or any
other employee of the Company. The Executive shall direct his immediate family not to make any disparaging statements about any
of the foregoing. Any statement by a member of his immediate family shall be deemed to be a statement by the Executive for purposes
of this paragraph. The Executive shall be considered to represent that he has complied and shall continue to comply with he nondisparagement
obligations under this paragraph from the Date of Termination (as defined in the Employment Agreement); provided that this
representation shall have no effect if this Release Agreement does not become effective. Notwithstanding the foregoing, nothing
in this paragraph shall be construed to apply to any statements made in the course of testimony in a legal proceeding or in any
required written statements in any such proceeding.

 

4. Litigation and Regulatory Cooperation.
The Executive shall reasonably cooperate with the Company in the defense or prosecution of any claims or actions now in existence
or which may be brought in the future against or on behalf of the Company which relate to events or occurrences that transpired
while Executive was employed by the Company; provided, however, that such cooperation shall not materially and adversely affect
Executive or expose Executive to an increased probability of civil or criminal litigation. Executive’s cooperation in connection
with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery
or trial and to act as a witness on behalf of the Company at mutually convenient times. Executive also shall cooperate fully with
the Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation
or review relates to events or occurrences that transpired while Executive was employed by the Company. The Company shall also
provide Executive with compensation on an hourly basis at a rate equivalent to the hourly rate of the Executive’s last annual
Base Salary (as defined in the Employment Agreement) calculated using a forty (40) hour week over fifty-two (52) weeks
for requested litigation and regulatory cooperation that occurs after his termination of employment, and reimburse Executive for
all costs and expenses incurred in connection with his performance under this Section 5, including, but not limited to, reasonable
attorneys’ fees and costs.

 

5. Reaffirmation of Post-Employment
Restrictive Covenants. The Executive reaffirms the restrictive covenants under the Employment Agreement to which he is subject
as follows: [Insert as appropriate.]

 

6. Right to Consider and Revoke Release
Agreement. This Release Agreement shall be considered to have been offered to both Parties on the Termination Date as defined
in the Employment Agreement. Each Party acknowledges that he or it has been given the opportunity to consider this Release Agreement
for a period ending twenty-one (21) days after the Termination Date. In the event that either Party has executed this Release
Agreement within less than twenty-one (21) days of the Termination Date, such Party acknowledges that such decision was entirely
voluntary and that he or it had the opportunity to consider this Release Agreement until the end of the twenty-one (21) day
period. To accept this Release Agreement, the Executive shall deliver a signed Release Agreement to the Company’s Board of
Directors within such twenty-one (21) day period. To accept this Release Agreement, the Company shall deliver a signed Release
Agreement to the Executive within such twenty-one (21) day period. Both Parties acknowledge that for a period of seven (7)
days from the date when the Executive executes this Release Agreement (the “Revocation Period”), he shall
retain the right to revoke this Release Agreement by written notice that is received by the Board of Directors of the Company before
the end of the Revocation Period. This Release Agreement shall take effect only if it is accepted by both Parties within the twenty-one
(21) day period as set forth above and if it is not revoked pursuant to the preceding sentence. If those conditions are satisfied,
this Release Agreement shall become effective and enforceable on the date immediately following the last day of the Revocation
Period (the “Effective Date”).

 

    	 

    	 

    

 

7. Other Terms.

 

(a) Legal Representation;
Review of Release Agreement. The Executive acknowledges that he has been advised to discuss all aspects of this Release Agreement
with he attorney. Each Party represents that he or it has carefully read and fully understands all of the provisions of this Release
Agreement and that he or it is voluntarily entering into this Release Agreement.

 

(b) Binding Nature of Release
Agreement. This Release Agreement shall be binding upon each of the parties and upon their heirs, administrators, representatives,
executors, successors and assigns, and shall inure to the benefit of both parties and to their heirs, administrators, representatives,
executors, successors, and assigns.

 

(c) Modification of Release
Agreement; Waiver. This Release Agreement may be amended, revoked, changed, or modified only upon a written agreement executed
by both Parties. No modification waiver of any provision of this Release Agreement will be valid unless it is in writing and signed
by the party against whom such waiver is charged. The failure of either Party to require the performance of any term or obligation
of this Release Agreement, or the waiver by either Party of any breach of this Release Agreement, shall not prevent any subsequent
enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

(d) Severability. In
the event that at any future time it is determined by a court of competent jurisdiction that any covenant, clause, provision or
term of this Release Agreement is illegal, invalid or unenforceable, the remaining provisions and terms of this Release Agreement
shall not be affected thereby and the illegal, invalid or unenforceable term or provision shall be severed from the remainder of
this Release Agreement. In the event of such severance, the remaining covenants shall be binding and enforceable.

 

(e) Enforcement. Sections
4, 5 and 6 of this Release Agreement shall be subject to enforcement pursuant to the same procedures that apply to a breach of
Paragraphs 4 or 5 of the Employment Agreement (as further detailed in Paragraph 14 of the Employment Agreement). Any other disputes
concerning this Release Agreement shall be subject to resolution pursuant to Section 14 of the Employment Agreement.

 

(f) Governing Law and Interpretation.
This Release Agreement shall be deemed to be made and entered into in the Commonwealth of Massachusetts, and shall in all respects
be interpreted, enforced and governed under the laws of Massachusetts, without giving effect to the conflict of laws provisions
of Massachusetts law. The language of all parts of this Release Agreement shall in all cases be construed as a whole, according
to its fair meaning, and not strictly for or against either of the Parties.

 

(g) Counterparts. This
Release Agreement may be executed in counterparts. Signed counterparts shall together be considered to be part of the same document.

 

(h) Entire Agreement; Absence
of Reliance. This Release Agreement constitutes the entire agreement between the Executive and the Company concerning any subject
matter of this Release Agreement and supersedes all prior agreements between the parties with respect to any related subject matter,
except the Employment Agreement. The Executive acknowledges that he is not relying on any promises or representations by the Company
or its agents, representatives or attorneys regarding any subject matter addressed in this Release Agreement.

 

So agreed by the Parties.

 

	HARVARD APPARATUS REGENERATIVE	 	 
	TECHNOLOGY, INC.	 	 
	 	 	 
	By:	 	 	 
	 	 	Date
	 	 	 
	 	 	 
	Executive     David Green	 	Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00214-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00214-of-00352.parquet"}]]