Document:

Exhibit 10.1

 

MANAGEMENT AGREEMENT

 

Dated as of July [●], 2021

 

This MANAGEMENT AGREEMENT (this “Agreement”)
is effective as of the [●]th day of [July], 2021, among HEALTHCARE ROYALTY, INC., a Delaware corporation (the “Company”),
and HCRX MANAGEMENT, LLC, a Delaware limited liability company (the “Manager”). Capitalized terms used in the preamble
and recitals of this Agreement and not otherwise defined therein are defined in Section 1 (Definitions).

 

R E C I T A L S: 

 

WHEREAS, the Company was formed for the purpose
of investing its assets in Healthcare Royalty Holdings, L.P. (“Holdings”) and the Subsidiaries of Holdings;

 

WHEREAS, the Company desires to avail itself of
the experience, sources of information, advice and assistance of the Manager and to have the Manager perform various investment management
services for the Company; and

 

WHEREAS, the Manager is willing to perform such
services under the terms and conditions as set forth herein and in accordance with the terms of the Certificate of Incorporation and Bylaws
of the Company (“Organizational Documents”) and subject to the oversight of the Board of Directors.

 

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

 

	Section 1.	Definitions.

 

Unless otherwise expressly provided in this Agreement,
the following terms used in this Agreement shall have the following meanings:

	“Advisers Act”	
    means the U.S. Investment Advisers Act of 1940, as amended.

	“Affiliate”	with respect to any specified Person, any Person directly or indirectly Controlling, Controlled by or under common Control with such Person; provided that for purposes of this Agreement, each of the Company and Cowen shall not be deemed to be an Affiliate of the Manager.
	“Agreement”	shall have the meaning set forth in the preamble of this Agreement.

 

     

     

    

 

	“Applicable Party”	means HCRX EPA, the Manager or an executive officer of the Manager or HCRX EPA (including Mr. Futch).
	“Board of Directors”	means the board of directors of the Company.
	“Business Day”	means a day which is not a Saturday, Sunday or a day on which banks in New York City are authorized or required by law to close.
	“Cause”	will exist where (i) an Applicable Party has committed (or in the case of Applicable Parties who are executives, caused HCRX EPA or the Manager to commit) a material breach of a material provision of the Organizational Documents of the Company, the limited partnership agreement of Holdings, or this Agreement; (ii) an Applicable Party has committed (or in the case of Applicable Parties who are executives, caused HCRX EPA or the Manager to commit) willful misconduct in connection with the performance of its duties under the terms of the Organizational Documents of the Company, the limited partnership agreement of Holdings, or this Agreement, (iii) there is a declaration of bankruptcy by an Applicable Party, or (iv) there is a determination by any court with proper jurisdiction that an Applicable Party has committed an intentional felony or engaged in any fraudulent conduct, in each such case of clauses (ii) and (iv) which has a material adverse effect on the business, assets or condition (financial or otherwise) of the HCRX Group and its Affiliates (taken as a whole).

 

     

     

    

 

	“Change of Control”	a change of control shall be deemed to have occurred if: (i) a sale, lease, exchange or other transfer in one transaction or a series of related transactions of all or substantially all of the Company’s assets, (ii) a merger or consolidation of the Company with or into any other Person or any other transaction or a series of related transactions, the result of which is that a third party (or a group of third parties) that is not an Affiliate of the Company or the Manager immediately prior to such transaction acquires or holds capital stock of the Company representing 40% of the Company’s outstanding voting power immediately following such transaction, or (iii) a change in the composition of the Board of Directors as a result of which the majority of the members of the Board of Directors cease to be Continuing Directors. Notwithstanding the foregoing, the following events do not constitute a Change of Control: (A) a transaction (other than a sale of all or substantially all of the Company’s assets) in which the holders of the voting securities of the Company immediately prior to such transaction hold, directly or indirectly, at least a majority of the voting securities in the successor corporation or its parent immediately after such transaction; (B) a sale, lease, exchange or other transaction in one transaction or a series of related transactions of all or substantially all of the Company’s assets to an Affiliate of the Company or the Manager; (C) the Company’s initial public offering and any subsequent registered offerings or secondary sales by the Continuing Investors of any of the Company’s securities, unless any such subsequent registered offering or secondary sale results in a third party who is not an Affiliate owning more than 40% of the Company’s outstanding voting power immediately following such offering or sale; (D) a reincorporation of the Company solely to change its jurisdiction; or (E) any transaction or series of transactions principally for bona fide equity financing purposes in which cash is received by the Company or any successor or indebtedness of the Company is cancelled or converted or a combination thereof.
	“Code”	means the U.S. Internal Revenue Code of 1986, as amended and as hereafter amended, or any successor law.
	“Company”	shall have the meaning set forth in the preamble of this Agreement.
	“Competing Fund”	means a Person or pooled investment or asset management vehicle investing Royalty Investments, other than (i) the Company, Holdings or any of their respective direct or indirect Subsidiaries, (ii) any of the Legacy Vehicles for which the Manager or any of its Affiliates acts as the general partner or investment manager, or (iii) any Person or vehicle approved by the independent members of the Board of Directors.
	“Confidential Information”	means any proprietary information relating to the organization, finances, business, transactions or affairs of the Company or the Manager or any of their Affiliates as the case may be.
	“Continuing Director”	means, as of any date of determination, any member of the Board of Directors who: (i) was a member of the Board of Directors upon closing of the Company’s initial public offering, or (ii) was nominated for election or elected to the Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election. 
	“Continuing Investors”	means the investors who received limited partnership interests in HCRX Feeder Fund L.P.

 

     

     

    

 

	“Control”	means, with respect to any Person, the possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise) of such Person; provided, however, that customary approval and veto rights granted to minority equity holders of a Person shall not be deemed to constitute “Control” of such Person.
	“Cowen”	means Cowen, Inc., a Delaware corporation, and its Affiliates
	“Exchange Act”	means the Securities Exchange Act of 1934, as amended.
	“Good Reason”	means the occurrence of either of the following: (i) a failure by the Board of Directors to obtain Manager’s consent to an amendment of the Organizational Documents pursuant to Section 9(b) or to the adoption or amendment of any policy, compliance procedure or reporting requirement pursuant to Section 9(c) of this Agreement or (ii) a material breach by the Company (at the direction of the Board of Directors) of its obligations to Manager (without Manager’s prior waiver or consent) under this Agreement, which breach, if capable of being cured, is not cured within 30 days after the Company receives notice of such breach. 
	“HCRX EPA”	means HCRX EPA Holdings, LLC, a Delaware limited liability company.
	“HCRX Group”	means the Company and its Subsidiaries.
	“Holdings”	shall have the meaning set forth in the preamble to this Agreement. 
	“Initial Term”	
    shall have the meaning set forth in
Section 16.

	“Indemnitee”	shall have the meaning set forth in Section 13(a).
	“Legacy Vehicle”	means each of HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. and HealthCare Royalty Partners II-A, L.P..
	“Manager”	shall have the meaning set forth in the preamble of this Agreement.
	“Operating and Personnel Payment”	shall have the meaning set forth in Section 10.
	“Organizational Documents”	shall have the meaning set forth in the recitals of this Agreement.

 

     

     

    

 

	“Person”	means a natural person, partnership, limited liability company, corporation, unincorporated association, joint venture, trust, state or any other entity or any governmental agency or political subdivision thereof.
	“Renewal Term”	shall have the meaning set forth in Section 16.
	“Royalties”	means intellectual property (including patents) or other contractual rights to income derived from the sales of, or revenues generated by, pharmaceutical, biopharmaceutical, medical and/or healthcare products, processes, devices, or enabling and delivery technologies that are protected by patents, trademarks or copyrights, governmental or other regulations or otherwise by contract, contractual rights to debt, and synthetic rights.
	
    “Royalty Investment”
	means any acquisition of (including, without limitation, any secondary purchase of existing assets), or financing or investment in, or any acquisition, financing or investment relating directly or indirectly to Royalties, which may include, without limitation (i) purchases of Royalties, (ii) Royalty notes, (iii) SYNTHETIC ROYALTYTM financings, (iv) ownership interests in any entities, including entities formed for the purpose of holding Royalties or substantially all of the assets of which consist of Royalties; (v) structured debt, (vi) any securities, investments or contracts that may provide a hedge for Royalties; and (vii) other assets and investments considered by the Manager to be related to the foregoing.
	“Royalty Receipts”	means, with respect to each investment that is indirectly held by the Company through a Subsidiary, all cash or other proceeds received in respect of such investment during the applicable period.
	“Stockholder”	means a stockholder of the Company.
	“Subsidiary”	of any Person means any corporation, partnership, joint venture or other legal entity of which such Person (either alone or through or together with any other subsidiary) owns, directly or indirectly, more than 50% of the stock or other equity interests, the holders of which are generally entitled to vote for the election of the board of directors or other governing body of such corporation or other legal entity.

 

     

     

    

 

	Section 2.	Interpretation and Construction.

 

(a)       In
this Agreement, unless a clear contrary intention appears:

 

(i)       common
nouns and pronouns and any variation thereof shall be deemed to refer to masculine, feminine, or neuter, singular or plural, as the identity
of the Person, Persons or other reference in the context requires;

 

(ii)      where
specific language is used to clarify by example a general statement contained in this Agreement, such specific language shall not be deemed
to modify, limit or restrict in any manner the construction of the general statement to which it relates;

 

(iii)     “any”
shall mean “one or more”;

 

(iv)     “including”
and with correlative meaning “include” means including without limiting the generality of any description preceding such term;
and

 

(v)     all
references to “funds”, “dollars” or “payments” shall mean United States dollars.

 

(b)       The
language used in this Agreement has been chosen by the parties to express their mutual intent, and no rule of construction or interpretation
requiring this Agreement to be construed or interpreted against any party shall apply.

 

Section 3.            Appointment of the
Manager. The Company hereby appoints the Manager to act as manager to the Company on the terms and conditions set forth in this
Agreement, and Manager hereby accepts such appointment. The Company and the Manager agree that the Manager shall have the discretion
to make all day-to-day decisions of the Company relating to its investment activities subject to the oversight, direction and
control by the Board of Directors, which may include, without limitation, (a) sourcing, identifying and evaluating prospective
Royalty Investments, (b) structuring and negotiating the acquisition and disposition of Royalty Investments on behalf of the Company
and its Subsidiaries, (c) monitoring Royalty Investments and (d) performing the day-to-day investment and administrative operations
of the Company and its Subsidiaries. The Manager shall perform its obligations under this Agreement in a diligent and timely
manner.

 

Section 4.           Authority of the
Manager. In connection with its obligations hereunder, the Manager shall have the authority for and in the name of the Company,
subject to Section 5 (Policies of the Company) and Section 9 (Investments), to:

 

(a)             
invest the Company’s assets, through Holdings or any other Subsidiary of the Company;

 

(b)             direct
the formulation of investment policies and strategies for the Company in accordance with Section 9 hereof, and identify, source,
select, evaluate and approve the investment of Company funds, all in accordance with the provisions and limitations of this Agreement;

 

(c)             open,
maintain and close bank accounts, make wire transfers and draw checks or other orders for the payment of money and open, maintain and
close brokerage, money market fund and similar accounts;

 

(d)            
incur expenses and obtain reimbursement from the Company for such expenses in accordance with Section 12 of this Agreement;1

 

(e)            
investigate, select and, on behalf of the Company, engage and conduct business with (including enter contracts with) such Persons
as the Manager deems necessary to the proper performance of its obligations as set forth in this Agreement, including but not limited
to consultants, accountants, lenders, technical and scientific advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow
agents, depositaries, custodians, agents for collection, insurers, insurance agents, consultants and any and all Persons acting in any
other capacity deemed by the Manager necessary or desirable for the performance of any of the foregoing services;

 

(f)               
negotiate, enter into, execute, maintain, modify and/or terminate contracts, undertakings, agreements and any and all other documents
and instruments in the name of the Company and do or perform all such things as may be necessary or advisable in furtherance of the Company’s
powers, objects or purposes or to the conduct of the Company’s activities, including (i) entering into acquisition agreements to
make or dispose of investments (or consenting or authorizing any Subsidiary to do the same) which agreements may include such representations,
warranties, covenants, indemnities and guaranties as the Manager deems necessary or advisable and (ii) entering in financing, loan or
credit agreements contracts, undertakings or arrangements, and incurring indebtedness thereunder, in such amounts as the Manager deems
necessary or advisable;

 

 

1
Note to Ropes: The idea here was to clarify that Manager is permitted to undertake the activities for which it is permitted to seek reimbursement
pursuant to Section 12.

 

     

     

    

 

(g)            
make, in its sole discretion, any and all elections for U.S. federal, state, local and foreign tax matters;

 

(h)            
manage, acquire or dispose of investments for the Company as permitted hereunder and under the Organizational Documents;

 

(i)             
vote, in its sole discretion, any shares, units or interests of any Subsidiary held by the Company or otherwise authorize, approve
or adopt any matter presented to the holders of shares, units or interests of any Subsidiary held by the Company;

 

(j)              
engage attorneys, independent accountants, other service providers, investment banks, accountants and other advisers and such other
Persons as the Manager may deem necessary or advisable;

 

(k)            
 provide service providers and advisers to the Company, with such information and instructions as may be necessary to enable such
service providers and advisers to perform their duties in accordance with the applicable agreements;

 

(l)              
oversee all reporting, recordkeeping, internal controls and similar matters in a manner to allow the Company to comply with applicable
law, including the Sarbanes-Oxley Act of 2002;

 

(m)            
manage communications with Stockholders, including answering phone calls, preparing and sending written and electronic reports
and other communications;

 

(n)            
maintain accounting data and any other information concerning the activities of the Company as shall be needed to prepare and file
all periodic financial reports and returns required to be filed by the Company with the Securities and Exchange Commission and any other
regulatory agency, including annual financial statements; and

 

(o)            
authorize any partner, member, employee or other agent of the Manager or its Affiliates or other agent of the Company to act for
and on behalf of the Company in all matters incidental to the foregoing; and

 

(p)            
do any and all acts on behalf of the Company as the Manager may deem necessary or advisable in connection with the maintenance
and administration of the Company, and exercise all rights of the Company, with respect to their interest in any Person, including the
voting of securities, participation in arrangements with creditors, the institution and settlement or compromise of proceedings and other
like or similar matters.

 

The Company hereby appoints the Manager as its
attorney-in-fact to act in the Company’s name, place and stead on behalf of the Company in any and all matters relating to the investment
of the cash and other assets of the Company and to sign, execute and deliver any and every conceivable right (including, without limitation,
any contract, agreement, instrument, consent, notice or acknowledgement) and to do all other acts and things and take any and every act
or action, in each case in the Company’s name and on the Company’s behalf, which the Manager in its sole discretion deems
necessary or otherwise appropriate in the performance of its duties under this Agreement. The power of attorney hereby granted by the
Company to the Manager pursuant to this Section shall remain in force during the continuance of this Agreement and all acts done and documents
signed or executed by the Manager in good faith in the purported exercise of any authority conferred by or purport to this power of attorney
shall for all purposes be valid and binding on the Manager.

 

	Section 5.	Policies of the Company.

 

	(a)	The activities engaged in by the Manager on behalf of the Company shall be subject to the written policies,
instructions, oversight and control of the Board of Directors.
	 	 

	(b)	Within 30 days after the beginning of each quarter, the Manager shall provide the Board of Directors with
a summary of all investment activities undertaken in the prior quarter, along with any other material developments in the business or
activities of the Company. In addition, the Manager shall meet with
the Board of Directors on a quarterly basis to discuss its activities on behalf of the Company.
	 	 

	(c)	The Board of Director’s rights pursuant to Section 5(b) are informational only, and the the
Board of Directors shall have no consent rights over any investments except as otherwise provided in the Organizational Documents of the
Company or in the investment policies of the Company.

 

     

     

    

 

Section 6.           Covenant/Devotion of
Time. The Manager shall not manage another entity that invests or acquires, directly or indirectly, Royalty Investments, other
than the Company, Holdings, or any of their direct or indirect Subsidiaries, and any Legacy Vehicle. The executives of the Manager
must devote substantially all of their business time to managing the Company, Holdings, or any of their direct or indirect
Subsidiaries, and any Legacy Vehicle, unless otherwise approved by the Board of Directors. Any action that has been approved by the
Board of Directors as set forth in the immediately preceding sentence shall be set forth on Exhibit A, which shall be amended
from time to time to reflect any actions approved by the Board of Directors after the date of this Agreement. The provisions of this Section
6 shall no longer apply following the occurrence of a Change of Control or a Good Reason event, and the taking of any actions
inconsistent with this Section 6 shall not be taken into account in determining whether an Applicable Party has committed an
act that would constitute “Cause”.

 

	Section 7.	Non-Competition and Non-Solicit.

 

(a)       Every
named executive officer of the Manager shall not during its tenure as an executive of the Manager and for a period of 12-months following
the termination of its engagement with or employment by the Manager directly or indirectly, close, advise, raise money for, manage or
act as the general partner, investment manager, investor, consultant, independent contractor, servicer, advisor, director, officer, member,
manager or employee to, of, in or for any Competing Fund. Manager shall cause each of its key employees to enter into non-competition
agreements with Manager that are substantially consistent with the terms of this Section 7, unless such agreement would be prohibited
by applicable law, rule or regulation.

 

(b)       Each
of the Manager and its Affiliates shall not during the time it is acting as manager or general partner or in a similar capacity for the
Company and for a period of 12-months following any termination of this Agreement for Cause directly or indirectly, close, advise, raise
money for, manage or act as the general partner, investment manager, investor, consultant, independent contractor, servicer, advisor,
director, officer, member, manager or employee to, of, in or for any Competing Fund.

 

(c)       The
provisions of Section 7(a) and Section 7(b) shall no longer apply upon the occurrence of a Change of Control or a Good Reason
event, and the taking of any such actions shall not be taken into account in determining whether an Applicable Party has committed an
act that would constitute “Cause”.

 

(d)       During
the time that Manager is acting as manager or general partner or in a similar capacity for the Company and for a period of 12-months
following any termination of this Agreement for Cause, the Manager shall use commercially reasonable efforts to cause Cowen not to,
directly or indirectly, close, advise, raise money for, manage or act as the general partner, investment manager, investor,
consultant, independent contractor, servicer, advisor, director, officer, member, manager or employee to, of, in or for any
Competing Fund.

 

Section 8.          Status of the
Manager. The Manager shall, for all purposes hereof, be an independent contractor and not an employee of the Company and nothing
in this Agreement shall be construed as making the Company a partner or co-venturer with the Manager or any of its Affiliates or
other funds, investment vehicles or accounts to which the Manager provides investment services. The Manager shall not have authority
to act for, represent, bind or obligate the Company, except as specifically provided in this Agreement.

 

     

     

    

 

Section 9.         Investments. All
investments of the Company and other activities undertaken by the Manager on behalf of the Company shall at all times conform to and
be in accordance with the requirements imposed by the following:

 

(a)             
any provisions of applicable law and regulation;

 

(b)            
provisions of the Organizational Documents; provided, however, that the Manager shall not be bound by any amendment
of any Organizational Document unless and until it has been given written notice thereof and has been provided with a copy of such amendment
and, provided, further, that Manager’s consent shall be required for any such amendment that is materially adverse
to the Manager or that imposes materially different obligations or restrictions on the Manager; and

 

(c)             
without prejudice to Section 5, such policies, compliance procedures and reporting requirements as may be adopted from
time to time by the Board of Directors; provided, however, that the Manager shall not be bound by any such policies, unless
and until it has been given written notice thereof and provided, further, that Manager’s consent shall be required
for any such policies that constitute a materially adverse change or materially different change to the policies applicable to Manager.

 

For the purpose of Section 9(b)-(c), a
 “materially different” provision or policy shall include, without limitation, any material change in the number of investments
the Manager may execute in a given year or any change in the industries in which Manager may make investments.

 

	Section 10.	Operating and Personnel Payment.

 

(a)              
The Manager shall receive a quarterly operating and personnel payment equal to the $100,000 (the “Operating and Personnel
Payment”). The Operating and Personnel Payment shall be payable by the Company (i) for the first fiscal quarter, on the date
that is 3 Business Days from the date hereof, and (ii) thereafter, quarterly in arrears as of the last Business Day of each fiscal quarter.

 

(b)              
The Company and its Subsidiaries shall have no employees of their own.

 

(c)               For
any partial fiscal quarter in respect of which the Operating and Personnel Payment is being paid, including in the event that this
Agreement is terminated for Cause during a quarter, the Company shall pay only a proportionate amount thereof based on the number of
days in such fiscal quarter.

 

(d)              
To the extent that an investment of the Company is made through any Affiliate or a Subsidiary other than Holdings, then the Company
shall cause, or permit the Manager to cause, such Affiliate or Subsidiary to enter into a management agreement with the Manager on substantially
the same terms as the Management Agreement between the Manager and Holdings, including with respect to any operating and personnel payment.

 

Section 11.         Expenses of the
Manager. The Manager or its Affiliates, but not the Company or any of its Subsidiaries or any Stockholder, shall bear and be
charged with the following costs and expenses of the Company’s activities: (a) any costs and expenses of providing to the
Company the office overhead necessary for the Company’s operations, including, but not limited to, rent and other normal
overhead and operating expenses; (b) the compensation of the Manager’s personnel, including, but not limited to,
benefits, and other expenses for such personnel; and (c) similar expenses to the extent that such expenses are not subject to
reimbursement by the Company pursuant to Section 12 (Company Expenses).

 

     

     

    

 

Section 12.          Company Expenses. The
Company shall bear and be charged with all expenses of the Company and its Subsidiaries (through its investment in such Subsidiaries)
other than expenses that are expressly borne by the Manager pursuant to Section 11 (Expenses of the Manager) including, without
limitation, the following costs and expenses of the Company:

 

(a)              
all organizational, administrative and operating expenses incurred on its behalf, including interest and financing expenses, expenses
of custodians, administrators, accountants, auditors, outside counsel and other similar service providers, the cost of the preparation
of financial statements, reports to Stockholders, the annual audit, financial and tax returns, tax and other similar reports required
for the Company and the Stockholders, extraordinary items such as litigation, indemnification and other similar expenses, and any taxes,
fees or other government charges levied against the Company;

 

(b)              
 independent valuation expenses (if applicable);

 

(c)              
expenses incurred in providing any reporting to Stockholders or regulatory reporting, printing and mailing costs;

 

(d)              
third party research costs and expenses, including consultants, senior advisors and regional advisors to the Company and its Subsidiaries;

 

(e)              
administrative expenses (including any fee payable to an administrator, if appointed by the Company), government fees and taxes
(if any);

 

(f)              
expenses incurred in connection with any meeting of the Stockholders, including, without limitation, travel, meal and lodging expenses
and ancillary activities related thereto;

 

(g)              
fees and expenses related to regulatory compliance burdens of the Company or any Subsidiary or any investment of any Subsidiary;

 

(h)              
 premiums for insurance;

 

(i)                
any registration or filing fees relating to the Company or any Subsidiary;

 

(j)              
all out-of-pocket costs and expenses, if any, incurred in sourcing, analyzing, conducting due diligence, holding, developing, negotiating,
structuring, acquiring and disposing of investments and prospective investments, whether or not ultimately made, and managing and disposing
of actual investments, including without limitation any financing, legal, accounting, advisory and consulting expenses in connection therewith
(to the extent the Manager is not otherwise reimbursed by another party or the costs are not capitalized as part of the acquisition price
of the transaction);

 

(k)              
expenses (including travel expenses) incurred in connection with sourcing and investigating investment opportunities, developing
business opportunities for the Subsidiaries of the Company and monitoring their investments (including attending medical and industry
conferences) and in connection with attending or sponsoring life science industry conferences and marketing events;

 

(l)               
interest on and fees and expenses arising out of all borrowings made by or on behalf of the Company, including, but not limited
to, the arranging thereof;

 

(m)            
costs of any litigation, Directors & Officers liability or other insurance and indemnification or extraordinary expense
or liability relating to the affairs of the Company;

 

(n)              
expenses of liquidating the Company;

 

(o)              
all expenses incurred in connection with any tax audit, investigation, settlement or review of the Company;

 

     

     

    

 

(p)              
any expenses in connection with the Board of Directors;

 

(q)              
contributions to charities, research hospitals and academic institutions reasonably related to the biopharmaceutical industry,
in each case to strengthen the “Healthcare Royalty” brand and relationships in the life sciences community; provided that
the expenses set forth in this clause shall not exceed 0.25% of annual Royalty Receipts during any fiscal year (measured as of the end
of such fiscal year) without the approval of the Board of Directors;

 

(r)               
legal and accounting fees and expenses and other expenses incurred by the Company in connection with the preparation for, and conduct
and closing of any offering of additional shares in the Company;

 

(s)               
the Company’s pro rata share of the expenses incurred in the formation of any Subsidiary; and

 

(t)                any
costs and expenses incurred in connection with the contemplation of, formation of, listing and ongoing operation of the Company,
including any third-party expenses of managing the Company, such as accounting, audit, legal, reporting, compliance, administration
(including directors’ fees), financial advisory, consulting, investor relations, and insurance expenses relating to the
affairs of the Company.

 

The Company shall promptly reimburse the Manager
or any of its Affiliates, as the case may be, to the extent that any of the costs and expenses set forth in this Section 12
are paid by such entities, provided, however, that any expenses incurred by the Manager or any of its Affiliates on behalf of the
Company and its Subsidiaries shall only be reimbursed once, and the Company will have no obligation to reimburse the Manager for any expenses
to the extent Holdings has reimbursed the Manager for such expenses pursuant to the Management Agreement by and between Holdings and the
Manager.

 

	Section 13.	Exculpation.

 

(a)              
To the fullest extent permitted by law, none of the Manager, its Affiliates including HCRX EPA and their respective officers, directors,
stockholders, members, employees, agents and partners, and any other person who serves at the request of the Manager on behalf of the
Company as an officer, director, employee or agent of, or with respect to, any other entity (each, an “Indemnitee”)
shall be liable to the Company or any Subsidiary or any Stockholder for (i) any act or omission taken or suffered by an Indemnitee
in connection with the conduct of the affairs of the Company or otherwise in connection with this Agreement or the matters contemplated
herein, unless such act or omission resulted from fraud, bad faith, willful misconduct, gross negligence, a material breach of this Agreement
which is not cured in accordance with the terms of this Agreement or a violation of applicable securities laws by such Indemnitee, and
except that nothing herein shall constitute a waiver or limitation of any rights which a Stockholder of the Company may have under applicable
securities laws or other laws and which may not be waived, or (ii) any mistake, negligence, dishonesty or bad faith of any broker
or other agent of the Company selected and monitored by the Manager with reasonable care.  

 

(b)              
To the extent that, at law or in equity, the Manager has duties (including fiduciary duties) and liabilities relating thereto to
the Company or another Stockholder, the Manager acting under this Agreement or refraining from taking action under this Agreement, shall
not be liable to the Company or to any such other Stockholder for its actions or inaction, taken or suffered in good faith and in reliance
on the provisions of this Agreement, provided, that such action or inaction does not constitute fraud, bad faith, willful misconduct
or gross negligence. The provisions of this Agreement, to the extent that they expand or restrict the duties and liabilities of the Manager
otherwise existing at law or in equity, are agreed by the Stockholders to modify to that extent such other duties and liabilities of the
Manager.

 

(c)               The
Manager may consult with legal counsel and accountants selected by it and any act or omission taken or suffered by it on behalf of
the Company or in furtherance of the interests of the Company, taken or suffered in good faith and in reasonable reliance thereon,
upon and in accordance with the advice of such counsel or accountants shall be full justification for any such act or omission, and
the Manager shall be fully protected and held harmless in so acting or omitting to act; provided, such counsel or accountants
were selected and monitored with reasonable care. Notwithstanding any of the foregoing to the contrary, the provisions of this
Section shall not be construed so as to provide for the exculpation of any Indemnitee for any liability (including liability under
U.S. federal or state securities laws (which includes liability for violation of the anti-fraud provisions contained in
Section 206 of the Advisers Act) which, under certain circumstances, impose liability even on Persons that act in good faith),
to the extent (but only to the extent) that such liability may not be waived, modified or limited under applicable law, but shall be
construed so as to effectuate the provisions of this Section to the fullest extent permitted by law.

 

     

     

    

 

	Section 14.	Indemnification.

 

(a)              
To the fullest extent permitted by law, the Company shall indemnify and save harmless each Indemnitee from and against any and
all claims, liabilities, damages, losses, penalties, actions, judgments, costs and expenses (including amounts paid in satisfaction of
judgments, in compromises and settlements, as fines and penalties and legal or other costs and reasonable expenses of investigating or
defending against any claim or alleged claim) of any nature whatsoever, known or unknown, liquidated or unliquidated, that are incurred
by any Indemnitee or to which such Indemnitee may be subject by reason of its activities on behalf of the Company or any of its Subsidiaries
or in furtherance of the interests of the Company or otherwise arising out of or in connection with the affairs of the Company, its Subsidiaries
or Affiliates, including the performance by such Indemnitee of any of the Manager’s responsibilities under this Agreement and/or
under the governing documents of any Subsidiary or otherwise in connection with the matters contemplated herein or therein; provided,
that: (i) an Indemnitee shall be entitled to indemnification hereunder only to the extent that such Indemnitee’s conduct did
not constitute fraud, bad faith, willful misconduct, gross negligence, a material breach of this Agreement which is not cured in accordance
with the terms of this Agreement or a violation of applicable securities laws; (ii) nothing herein shall constitute a waiver or limitation
of any rights which a Stockholder or the Company may have under applicable securities laws or other laws and which may not be waived;
and (iii) the Company’s obligations hereunder shall not apply with respect to (x) economic losses or tax obligations incurred
by any Indemnitee as a result of such Indemnitee’s ownership of an interest in the Company, or in Royalty Investments, (y) expenses
of the Company that an Indemnitee has agreed to bear or (z) amounts recoverable by the Indemnitee from other sources (including without
limitation insurance) as provided in Section 14(d). The satisfaction of any indemnification and any saving harmless pursuant
to this Section shall be from and limited to Company assets, and no Stockholder shall have any personal liability on account thereof.
The conduct of the Manager and HCRX EPA shall be attributed to one another for purposes of determining whether indemnification is available
pursuant to this Section and whether conduct meets the standards set forth in Section 13 (Exculpation).

 

(b)              
Expenses reasonably incurred by an Indemnitee in defense or settlement of any claim that may be subject to a right of indemnification
hereunder shall be advanced by the Company prior to the final disposition thereof upon receipt of an undertaking by or on behalf of the
Indemnitee to repay such amount to the extent that it shall be determined ultimately that such Indemnitee is not entitled to be indemnified
hereunder.

 

(c)               The
right of any Indemnitee to the indemnification provided herein shall extend to such Indemnitee’s heirs, executors,
administrators, successors, assigns and legal representatives and shall be cumulative of, and in addition to, any and all rights to
which such Indemnitee may otherwise be entitled by contract or as a matter of law or equity. Notwithstanding the foregoing, no
Indemnitee may have any other rights to indemnification from the Company or enter into, or make any claim under, any other agreement
with the Company (whether direct or indirect) providing for indemnification except as otherwise set forth in this Agreement.

 

(d)               
Any Person entitled to indemnification from the Company hereunder shall first seek recovery under any other indemnity or any insurance
policies by which such Person is indemnified or covered, as the case may be, but only to the extent that the indemnitor with respect to
such indemnity or the insurer with respect to such insurance policy provides (or acknowledges its obligation to provide) such indemnity
or coverage on a timely basis, as the case may be, and, if such Person is other than the Manager, such Person shall obtain the written
consent of the Manager prior to entering into any compromise or settlement which would result in an obligation of the Company to indemnify
such Person; and if liabilities arise out of the conduct of the affairs of the Company and any other Person for which the Person entitled
to indemnification from the Company hereunder was then acting in a similar capacity, the amount of the indemnification provided by the
Company shall be limited to the Company’s proportionate share thereof as determined by the Manager in light of its fiduciary duties
to the Company and the Stockholders.

 

(e)              
Notwithstanding any of the foregoing to the contrary, the provisions of this Section shall not be construed so as to provide for
the indemnification of any Indemnitee for any liability (including liability under U.S. federal or state securities laws (which includes
liability for violation of the anti-fraud provisions contained in Section 206 of the Advisers Act) which, under certain circumstances,
impose liability even on Persons that act in good faith), to the extent (but only to the extent) that such indemnification would be in
violation of law, but shall be construed so as to effectuate the provisions of this Section to the fullest extent permitted by law.

 

     

     

    

 

Section 15.       Limitations on Reference
to the Manager. The Company shall not distribute or circulate any sales literature, promotional or, save where required by
applicable law, regulation or court order, other material which contains any reference to the Manager without the prior approval of
the Manager, and, where practicable, shall submit in draft form all such materials requiring approval of the Manager, allowing
sufficient time for review by the Manager and its counsel prior to any deadline for printing. If the Manager ceases to furnish
services to the Company, the Company at its expense:

 

(a)              
as promptly as practicable, shall take all necessary action to cause the Organizational Documents to be amended to eliminate any
reference to the Manager; and

 

(b)             
within 60 days after the date on which the Manager ceases to furnish services to the Company, shall cease to use in any other manner,
including use in any `sales literature or promotional material, the name of the Manager, save where required by applicable law, regulation
or court order.

 

Section 16.        Term. This Agreement
shall have an initial term of ten years ending on [July] [●], 2031 (the “Initial Term”), after which
it shall automatically renew for a term of three years thereafter (a “Renewal Term”), unless either the Manager
or the Company provides to the other party prior written notice of non-renewal at least 180 days prior to the expiration of the
Initial Term.

 

	Section 17.	Removal.

 

(a)              
Subject to the following provisions of this Section 17, during the Initial Term and the Renewal Term, this Agreement may
only be terminated by the Company for Cause.

 

(b)              
If the Management Agreement with Holdings LP or any other Subsidiary is terminated for Cause then this Agreement shall automatically
be terminated, and the provisions of Section 6 and Sections 7(a) and (b) shall no longer apply.

 

(c)              
The Company shall have the right to terminate the Manager following (i) a determination of Cause by a court or governmental
body of competent jurisdiction in a final judgement, or (ii) an admission in writing of Cause by the Manager or HCRX EPA. In the
event that Mr. Futch commits an act constituting Cause (while he is acting as chief executive officer of the Company), such action
shall be imputed to HCRX EPA and the Manager. Any act constituting Cause committed by any other named executive officer of HCRX EPA or
the Manager (including Mr. Futch if he is no longer acting as chief executive officer of the Company) shall not be imputed to HCRX
EPA and the Manager if the Manager terminates such executive’s engagement with, employment by or relationship with the Manager and
HCRX EPA within such reasonable period of time as may be agreed to by the Board of Directors; provided that if such executive is
not terminated within such period of time then such Cause event shall be imputed to HCRX EPA and the Manager.

 

Section 18.        Choice of Law.
Notwithstanding the place where this Agreement may be executed by any of the parties hereto, the parties expressly agree that all of
the terms and provisions hereof shall be governed by and construed under the laws of the State of Delaware applicable to contracts
made and to be entirely performed in such state.

 

     

     

    

 

Section 19.          Confidentiality.
Except as may be required by applicable law or by any regulatory authority or agency or as may otherwise be contemplated by this
Agreement, each of the parties hereto hereby covenants and undertakes with the other party hereto to keep secret and confidential
and not to disclose to any person any Confidential Information; provided, however, that no party shall be required to keep
secret and confidential any Confidential Information which has properly entered the public domain otherwise than through the default
of such party except where the parties are compelled to do so by any self-regulatory body or by applicable law. No public
announcement shall be made or circular, notice or advertisement issued in connection with the subject matter of this Agreement by
either of the parties hereto without the prior approval of the other party hereto.

 

Section 20.         Severability. If any
provision of this Agreement is invalid or unenforceable under any applicable law, then such provision shall be deemed inoperative to
the extent that it may conflict therewith and shall be deemed modified to conform with such applicable law. Any provision hereof
which may be held invalid or unenforceable under any applicable law shall not affect the validity or enforceability of any other
provisions hereof, and to this extent the provisions hereof shall be severable.

 

Section 21.         Force Majeure. The
Manager shall not be responsible for any loss of or damage to any property, securities, instruments or other assets of the Company
for any failure to fulfil any of its duties hereunder if such loss, damage or failure is directly or indirectly caused by or due to
any act of God, storm, tempest, accident, fire, water damage, riot, civil commotion, rebellion, strike, lock-out, government or
military action or any other cause or circumstance beyond the control of the Manager, provided that the Manager shall use all
reasonable efforts to minimize the effects thereof.

 

Section 22.         Forum. To the fullest
extent permitted by law, in the event of any proceeding arising out of the terms and conditions of this Agreement, the parties
hereto irrevocably (i) consent and submit to the exclusive jurisdiction of the Delaware Court of Chancery and any state
appellate court therefrom within the State of Delaware (unless the Delaware Court of Chancery shall decline jurisdiction over a
particular matter, in which case, any state or federal court within the State of Delaware), (ii) waive any defense based on
doctrines of venue or forum non conveniens, or similar rules or doctrines, and (iii) agree that all claims in respect of
such a proceeding must be heard and determined exclusively in the Delaware Court of Chancery and any state appellate court therefrom
within the State of Delaware (unless the Delaware Court of Chancery shall decline jurisdiction over a particular matter, in which
case, any state or federal court within the State of Delaware). Process in any such proceeding may be served on any party anywhere
in the world, whether within or without the jurisdiction of any such court.

 

Section 23.          Notices.

 

(a)              
Each notice relating to this Agreement shall be in writing and delivered in person, by registered or certified mail, by Federal
Express or similar overnight courier service, by electronic mail (e-mail) to the address or e-mail address on record.

 

(b)             
Unless otherwise specifically provided in this Agreement, a notice shall be deemed to have been effectively given when delivered
personally, if delivered on a Business Day; the next Business Day after personal delivery, if delivered personally on a day that is not
a Business Day; four Business Days after being deposited in the United States mail, postage prepaid, return receipt requested, if mailed;
on the next Business Day after being deposited for next day delivery with Federal Express or similar overnight courier; and when a reply
e-mail acknowledging receipt is received by the sender, if e-mailed.

 

     

     

    

 

Section 24.          Entire Agreement.
This Agreement contains all of the terms agreed upon or made by the parties relating to the subject matter of this Agreement, and
supersedes all prior and contemporaneous agreements, negotiations, correspondence, undertakings and communications of the parties,
oral or written, respecting such subject matter.

 

Section 25.           Amendments and
Waivers. No provision of this Agreement may be amended, modified, waived or discharged except as agreed to in writing by the
parties. The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be
considered a waiver thereof or deprive that party of the right thereafter to insist upon strict adherence to that term or any other
term of this Agreement.

 

Section 26.
          Binding Effect; Assignment. This Agreement shall be binding upon and
inure to the benefit the Company, the Manager, each Indemnified Party and their respective successors and permitted assigns. Any
Person that is not a signatory to this Agreement but is nevertheless conferred any rights or benefits hereunder (e.g.,
officers, partners and employees of the Manager and others who are entitled to indemnification hereunder) shall be entitled to such
rights and benefits as if such Person were a signatory hereto, and the rights and benefits of such Person hereunder may not be
impaired without such Person’s express written consent. No assignment (as that term is defined under the Advisers Act) by
either party of all or any portion of its rights, obligations or liabilities under this Agreement shall be permitted without the
prior written consent of the other party to this Agreement.

 

Section 27.           Headings. The
headings of the Sections of this Agreement are for convenience of reference only, and are not to be considered in construing the
terms and provisions of this Agreement. References to “Section” in this Agreement shall be deemed to refer to the
indicated Section of this Agreement, unless the context clearly indicates otherwise.

 

Section 28.           Discretion; Good
Faith. Whenever in this Agreement the Manager is permitted or required to make a decision (i) in its
 “discretion” or under a grant of similar authority or latitude, the Manager shall be entitled to consider such interests
and factors as it desires, including its own interests, or (ii) in its “good faith” or under another express
standard, the Manager shall act under such express standard, shall not be subject to any other or different standard imposed by
applicable law and may exercise its discretion differently with respect to different investors.

 

Section 29.           Counterparts.
Counterparts may be executed through the use of separate signature pages or in any number of counterparts with the same effect as if
the parties executing such counterparts had all executed one counterpart. Each party understands and agrees that any portable
document format (PDF) file, facsimile or other reproduction of its signature on any counterpart shall be equal to and enforceable as
its original signature and that any such reproduction shall be a counterpart hereof that is fully enforceable in any court or
arbitral panel of competent jurisdiction.

 

Section 30.          Survival. The
provisions of the Section entitled Operating and Personnel Payment (only to the extent that the Operating and Personnel Payment is
earned by the Manager prior to termination of this Agreement), and the Sections entitled Covenant/Devotion of Time, Non-Competition,
Exculpation, Indemnification, Limitations on Reference to the Manager, Choice of Law, Forum, Notices, Entire Agreement, Binding
Effect; Assignment, Survival and Waiver of Jury Trial shall survive the termination of this Agreement.

 

Section 31.          Waiver of Jury
Trial. EACH PARTY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ITS RIGHT TO A TRIAL BY JURY TO THE EXTENT PERMITTED BY LAW
IN ANY PROCEEDING ARISING OUT OF THE TERMS AND CONDITIONS OF THIS AGREEMENT. THIS WAIVER APPLIES TO ANY PROCEEDING, WHETHER SOUNDING
IN CONTRACT, TORT OR OTHERWISE. EACH PARTY ACKNOWLEDGES THAT IT HAS RECEIVED THE ADVICE OF COMPETENT COUNSEL.

 

[The rest of this page is intentionally left
blank.]

 

     

     

    

 

IN WITNESS
WHEREOF the parties hereto have caused this Agreement to be executed as of the date first set forth above.

 

	 	 	 
	HEALTHCARE ROYALTY, INC.	 	HCRX MANAGEMENT, LLC

 

	By:	/s/
    	 	By:	/s/ 

	Name: Clarke B.
    Futch	 	Name:
	Title: Chairman & Chief
    Executive Officer	 	Title:
	 	 	 

 

Management Agreement Signature Page

 

     

     

    

 

Exhibit A –Approved Actions

 

To be determined.

 

     

     

    

 

 

MANAGEMENT AGREEMENT

 

Dated as of July [●], 2021

 

This MANAGEMENT AGREEMENT (this “Agreement”)
is effective as of the [●]th day of [July], 2021, among HEALTHCARE ROYALTY HOLDINGS, L.P., a Delaware limited partnership (“Holdings”),
HCRX INTERMEDIATE HOLDCO, L.P., a Delaware limited partnership (“Intermediate HoldCo”), HCRX INVESTMENTS HOLDCO, L.P.
a Delaware limited partnership (“Investments HoldCo”, and collectively with Intermediate HoldCo and Holdings, the “Partnership”),
and HCRX MANAGEMENT, LLC, a Delaware limited liability company (the “Manager”). Capitalized terms used in the preamble
and recitals of this Agreement and not otherwise defined therein are defined in Section 1 (Definitions).

 

R E C I T A L S: 

 

WHEREAS, the Partnership was formed by Healthcare
Royalty, Inc., a Delaware corporation (“Parent”) for the purpose of investing Parent’s assets in the Partnership
and its Subsidiaries;

 

WHEREAS, the Partnership desires to avail itself
of the experience, sources of information, advice and assistance of the Manager and to have the Manager perform various investment management
services for the Partnership; and

 

WHEREAS, the Manager is willing to perform such
services under the terms and conditions as set forth herein and in accordance with the terms of the Partnership’s Organizational
Documents (as defined below) and subject to the oversight of the General Partner (as defined below).

 

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

 

Section 1.     Definitions.

 

Unless otherwise expressly provided in this Agreement,
the following terms used in this Agreement shall have the following meanings:

 

	“Advisers Act”	
     

    means the U.S. Investment Advisers Act of 1940, as amended.

	“Affiliate”	with respect to any specified Person, any Person directly or indirectly Controlling, Controlled by or under common Control with such Person; provided that for purposes of this Agreement, each of the Parent, the Partnership and Cowen shall not be deemed to be an Affiliate of the Manager.
	“Agreement”	shall have the meaning set forth in the preamble of this Agreement.

 

    

     

    

 

	“Applicable Party”	means HCRX EPA, the Manager or an executive officer of the Manager or HCRX EPA (including Mr. Futch).
	“Applicable Percentage”	shall have the meaning set forth in Section 10.
	“Board of Directors”	means the board of directors of the Parent.
	“Business Day”	means a day which is not a Saturday, Sunday or a day on which banks in New York City are authorized or required by law to close.
	“Cause”	will exist where (i) an Applicable Party has committed (or in the case of Applicable Parties who are executives, caused HCRX EPA or the Manager to commit) a material breach of a material provision of the Organizational Documents of Parent or the Partnership, or this Agreement; (ii) an Applicable Party has committed (or in the case of Applicable Parties who are executives, caused HCRX EPA or the Manager to commit) willful misconduct in connection with the performance of its duties under the terms of the Organizational Documents of Parent or the Partnership, or this Agreement, (iii) there is a declaration of bankruptcy by an Applicable Party, or (iv) there is a determination by any court with proper jurisdiction that an Applicable Party has committed an intentional felony or engaged in any fraudulent conduct, in each such case of clauses (ii) and (iv) which has a material adverse effect on the business, assets or condition (financial or otherwise) of the HCRX Group and its Affiliates (taken as a whole).

 

    

     

    

 

	“Change of Control”	a change of control shall be deemed to have occurred if: (i) a sale, lease, exchange or other transfer in one transaction or a series of related transactions of all or substantially all of the Parent’s assets, (ii) a merger or consolidation of the Parent with or into any other Person or any other transaction or a series of related transactions, the result of which is that a third party (or a group of third parties) that is not an Affiliate of the Parent or the Manager immediately prior to such transaction acquires or holds capital stock of the Parent representing 40% of the Parent’s outstanding voting power immediately following such transaction, or (iii) a change in the composition of the Board of Directors as a result of which the majority of the members of the Board of Directors cease to be Continuing Directors. Notwithstanding the foregoing, the following events do not constitute a Change of Control: (A) a transaction (other than a sale of all or substantially all of the Parent’s assets) in which the holders of the voting securities of the Parent immediately prior to such transaction hold, directly or indirectly, at least a majority of the voting securities in the successor corporation or its parent immediately after such transaction; (B) a sale, lease, exchange or other transaction in one transaction or a series of related transactions of all or substantially all of the Parent’s assets to an Affiliate of the Parent or the Manager; (C) the Parent’s initial public offering and any subsequent registered offerings or secondary sales by the Continuing Investors of any of the Parent’s securities, unless any such subsequent registered offering or secondary sale results in a third party who is not an Affiliate owning more than 40% of the Parent’s outstanding voting power immediately following such offering or sale; (D) a reincorporation of the Parent solely to change its jurisdiction; or (E) any transaction or series of transactions principally for bona fide equity financing purposes in which cash is received by the Parent or any successor or indebtedness of the Parent is cancelled or converted or a combination thereof.
	“Code”	means the U.S. Internal Revenue Code of 1986, as amended and as hereafter amended, or any successor law.
	“Competing Fund”	means a Person or pooled investment or asset management vehicle investing in Royalty Investments, other than (i) the Parent, the Partnership or any of their respective direct or indirect Subsidiaries, (ii) any of the Legacy Vehicles for which the Manager or any of its Affiliates acts as the general partner or investment manager, or (iii) any Person or vehicle approved by the independent members of the Board of Directors.
	“Confidential Information”	means any proprietary information relating to the organization, finances, business, transactions or affairs of the Partnership or the Manager or any of their Affiliates as the case may be.
	“Continuing Director”	means, as of any date of determination, any member of the Board of Directors who: (i) was a member of the Board of Directors upon closing of the Parent’s initial public offering, or (ii) was nominated for election or elected to the Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election. 
	“Continuing Investors”	means the investors who received limited partnership interests in HCRX Feeder Fund L.P.

 

    

     

    

 

	“Control”	means, with respect to any Person, the possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise) of such Person; provided, however, that customary approval and veto rights granted to minority equity holders of a Person shall not be deemed to constitute “Control” of such Person.
	“Cowen”	means Cowen, Inc, a Delaware corporation, and its Affiliates
	“Exchange Act”	means the Securities Exchange Act of 1934, as amended.
	“General Partner”	means HCRX Master GP, LLC. 
	“Good Reason”	means the occurrence of either of the following: (i) a failure by the Board of Directors to obtain Manager’s consent to an amendment of the Organizational Documents pursuant to Section 9(b) or to the adoption or amendment of any policy, compliance procedure or reporting requirement pursuant to Section 9(c) of this Agreement or (ii) a material breach by the Partnership (at the direction of the Board of Directors) of its obligations to Manager (without Manager’s prior waiver or consent) under this Agreement, which breach, if capable of being cured, is not cured within 30 days after the Partnership receives notice of such breach.  
	“HCRX EPA”	means HCRX EPA Holdings, LLC, a Delaware limited liability company.
	“HCRX Group”	means the Parent and its Subsidiaries.
	“Holdings”	shall have the meaning set forth in the preamble to this Agreement. 
	“Initial Term”	
     shall have the meaning set forth in
Section 16.

	“Indemnitee”	shall have the meaning set forth in Section 13(a).
	“Legacy Vehicle”	means each of HealthCare Royalty Partners, L.P., HealthCare Royalty Partners II, L.P. and HealthCare Royalty Partners, II-A, L.P. 
	“Manager”	shall have the meaning set forth in the preamble of this Agreement.
	“Operating and Personnel Payment”	shall have the meaning set forth in Section 10.

 

    

     

    

 

	“Organizational Documents”	shall mean, (i) with respect to Parent, its certificate of incorporation and bylaws, (ii) with respect to each of Holdings, Intermediate HoldCo and Investments HoldCo, their respective certificates of limited partnership and limited partnership agreements.
	“Partners”	means the limited partners of the Partnership. 
	“Person”	means a natural person, partnership, limited liability company, corporation, unincorporated association, joint venture, trust, state or any other entity or any governmental agency or political subdivision thereof.
	“Renewal Term”	shall have the meaning set forth in Section 16.
	“Royalties”	means intellectual property (including patents) or other contractual rights to income derived from the sales of, or revenues generated by, pharmaceutical, biopharmaceutical, medical and/or healthcare products, processes, devices, or enabling and delivery technologies that are protected by patents, trademarks or copyrights, governmental or other regulations or otherwise by contract, contractual rights to debt, and synthetic rights.
	
     

    “Royalty Investment”
	means any acquisition of (including, without limitation, any secondary purchase of existing assets), or financing or investment in, or any acquisition, financing or investment relating directly or indirectly to Royalties, which may include, without limitation (i) purchases of Royalties, (ii) Royalty notes, (iii) SYNTHETIC ROYALTYTM financings, (iv) ownership interests in any entities, including entities formed for the purpose of holding Royalties or substantially all of the assets of which consist of Royalties; (v) structured debt, (vi) any securities, investments or contracts that may provide a hedge for Royalties; and (vii) other assets and investments considered by the Manager to be related to the foregoing.
	“Royalty Receipts”	means, with respect to each investment that is indirectly held by the Partnership through a Subsidiary, all cash or other proceeds received in respect of such investment during the applicable period.
	“Subsidiary”	of any Person means any corporation, partnership, joint venture or other legal entity of which such Person (either alone or through or together with any other subsidiary) owns, directly or indirectly, more than 50% of the stock or other equity interests, the holders of which are generally entitled to vote for the election of the board of directors or other governing body of such corporation or other legal entity.

 

    

     

    

 

Section 2.        Interpretation and Construction.

 

(a)       In
this Agreement, unless a clear contrary intention appears:

 

(i)       common
nouns and pronouns and any variation thereof shall be deemed to refer to masculine, feminine, or neuter, singular or plural, as the identity
of the Person, Persons or other reference in the context requires;

 

(ii)       where
specific language is used to clarify by example a general statement contained in this Agreement, such specific language shall not be deemed
to modify, limit or restrict in any manner the construction of the general statement to which it relates;

 

(iii)       “any”
shall mean “one or more”;

 

(iv)       “including”
and with correlative meaning “include” means including without limiting the generality of any description preceding such term;
and

 

(v)       all
references to “funds”, “dollars” or “payments” shall mean United States dollars.

 

(b)       The
language used in this Agreement has been chosen by the parties to express their mutual intent, and no rule of construction or interpretation
requiring this Agreement to be construed or interpreted against any party shall apply.

 

Section 3.     Appointment of the Manager.
The General Partner, pursuant to Section 5.2(a) of the Partnership Agreement, hereby appoints the Manager to assist the General Partner
in the performance of the investment advisory duties and responsibilities of the General Partner as the general partner of the Partnership
in accordance with the Partnership Agreement, which may include, without limitation, (a) sourcing, identifying and evaluating prospective
Royalty Investments, (b) structuring and negotiating the acquisition and disposition of Royalty Investments on behalf of the Partnership,
(c) monitoring Royalty Investments and (d) performing the day-to-day investment and administrative operations of the Partnership. Pursuant
to Section 17-403 of the Delaware Act, such delegation of authority to the Manager shall not cause the Manager to be a general partner
of the Partnership and shall not cause the General Partner to cease to be a general partner of the Partnership. The Manager shall perform
its obligations under this Agreement in a diligent and timely manner that complies with the terms and conditions set forth in the Partnership
Agreement.

 

Section 4.     Authority of the Manager.
In connection with its obligations hereunder, the Manager shall have the authority for and in the name of the Partnership, subject to
Section 5 (Policies of the Partnership) and Section 9 (Investments), to:

 

(a)              
invest the Partnership’s assets, through Holdings or any other Subsidiary of Holdings;

 

(b)               direct
the formulation of investment policies and strategies for the Partnership in accordance with Section 9 hereof, and identify,
source, select, evaluate and approve the investment of Partnership funds, all in accordance with the provisions and limitations of
this Agreement;

 

    

     

    

 

(c)              
open, maintain and close bank accounts, make wire transfers and draw checks or other orders for the payment of money and open,
maintain and close brokerage, money market fund and similar accounts;

 

(d)              
incur expenses and obtain reimbursement from the Partnership for such expenses in accordance with Section 12 of this Agreement;1

 

(e)              
investigate, select and, on behalf of the Partnership, engage and conduct business with (including enter contracts with) such Persons
as the Manager deems necessary to the proper performance of its obligations as set forth in this Agreement, including but not limited
to consultants, accountants, lenders, technical and scientific advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow
agents, depositaries, custodians, agents for collection, insurers, insurance agents, consultants and any and all Persons acting in any
other capacity deemed by the Manager necessary or desirable for the performance of any of the foregoing services;

 

(f)               
negotiate, enter into, execute, maintain, modify and/or terminate contracts, undertakings, agreements and any and all other documents
and instruments in the name of the Partnership and do or perform all such things as may be necessary or advisable in furtherance of the
Partnership’s powers, objects or purposes or to the conduct of the Partnership’s activities, including (i) entering into acquisition
agreements to make or dispose of investments (or consenting or authorizing any Subsidiary to do the same) which agreements may include
such representations, warranties, covenants, indemnities and guaranties as the Manager deems necessary or advisable and (ii) entering
in financing, loan or credit agreements contracts, undertakings or arrangements, and incurring indebtedness thereunder, in such amounts
as the Manager deems necessary or advisable;

 

(g)              
make, in its sole discretion, any and all elections for U.S. federal, state, local and foreign tax matters;

 

(h)              
manage, acquire or dispose of investments for the Partnership as permitted hereunder and under the Organizational Documents;

 

(i)                
vote, in its sole discretion, any shares, units or interests of any Subsidiary held by the Partnership or otherwise authorize,
approve or adopt any matter presented to the holders of shares, units or interests of any Subsidiary held by the Partnership;

 

(j)                
engage attorneys, independent accountants, other service providers, investment banks, accountants and other advisers and such other
Persons as the Manager may deem necessary or advisable;

 

 

1
Note to Ropes: The idea here was to clarify that Manager is permitted to undertake the activities for which it is permitted to seek reimbursement
pursuant to Section 12.

 

    

     

    

 

(k)              
 provide service providers and advisers to the Partnership, with such information and instructions as may be necessary to enable
such service providers and advisers to perform their duties in accordance with the applicable agreements;

 

(l)                
oversee all reporting, recordkeeping, internal controls and similar matters in a manner to allow the Partnership and Parent to
comply with applicable law, including the Sarbanes-Oxley Act of 2002;

 

(m)            
manage communications with Partners of the Partnership and stockholders of Parent, including answering phone calls, preparing and
sending written and electronic reports and other communications;

 

(n)              
maintain accounting data and any other information concerning the activities of the Partnership and Parent as shall be needed to
prepare and file all periodic financial reports and returns required to be filed by the Parent with the Securities and Exchange Commission
and any other regulatory agency, including annual financial statements;

 

(o)              
authorize any partner, member, employee or other agent of the Manager or its Affiliates or other agent of the Partnership to act
for and on behalf of the Partnership in all matters incidental to the foregoing; and

 

(p)              
do any and all acts on behalf of the Partnership as the Manager may deem necessary or advisable in connection with the maintenance
and administration of the Partnership, and exercise all rights of the Partnership, with respect to their interest in any Person, including
the voting of securities, participation in arrangements with creditors, the institution and settlement or compromise of proceedings and
other like or similar matters.

 

The Partnership hereby appoints the Manager as
its attorney-in-fact to act in the Partnership’s name, place and stead on behalf of the Partnership in any and all matters relating
to the investment of the cash and other assets of the Partnership and to sign, execute and deliver any and every conceivable right (including,
without limitation, any contract, agreement, instrument, consent, notice or acknowledgement) and to do all other acts and things and take
any and every act or action, in each case in the Partnership’s name and on the Partnership’s behalf, which the Manager in
its sole discretion deems necessary or otherwise appropriate in the performance of its duties under this Agreement. The power of attorney
hereby granted by the Partnership to the Manager pursuant to this Section shall remain in force during the continuance of this Agreement
and all acts done and documents signed or executed by the Manager in good faith in the purported exercise of any authority conferred by
or purport to this power of attorney shall for all purposes be valid and binding on the Manager.

 

Section 5.     Policies of the Partnership.

 

		(a)	The activities engaged in by the Manager on behalf of the Partnership shall be subject to the written
policies, instructions, oversight and control of the General Partner.

 

		(b)	Within 30 days after the beginning of each quarter, the Manager shall provide the General Partner with
a summary of all investment activities undertaken in the prior quarter, along with any other material developments
in the business or activities of the Partnership. In addition, the Manager shall meet with the General Partner on a quarterly basis to
discuss its activities on behalf of the Partnership.

 

    

     

    

 

		(c)	The General Partner’s rights pursuant to Section 5(b) are informational only, and the General
Partner shall have no consent rights over any investments except as otherwise provided in the Organizational Documents of the Partnership
or in the investment policies of the Partnership.

 

Section 6.     Covenant/Devotion of Time.
The Manager shall not manage another entity that invests or acquires, directly or indirectly, Royalty Investments, other than the Parent,
the Partnership, or any of their direct or indirect Subsidiaries, and any Legacy Vehicle. The executives of the Manager must devote substantially
all of their business time and attention to managing the Parent, the Partnership, or any of their direct or indirect Subsidiaries, and
any Legacy Vehicle, unless otherwise approved by the General Partner and the Board of Directors. Any action that has been approved by
the General Partner and the Board of Directors as set forth in the immediately preceding sentence shall be set forth on Exhibit B,
which shall be amended from time to time to reflect any actions approved by the General Partner and the Board of Directors after the
date of this Agreement. The provisions of this Section 6 shall no longer apply following the occurrence of a Change of Control
or Good Reason event, and the taking of any actions inconsistent with this Section 6 shall not be taken into account in determining
whether an Applicable Party has committed an act that would constitute “Cause”.

 

Section 7.    Non-Competition and Non-Solicit.

 

(a)       Every
named executive officer of the Manager shall not during its tenure as an executive of the Manager and for a period of 12-months following
the termination of its engagement with or employment by the Manager directly or indirectly, close, advise, raise money for, manage or
act as the general partner, investment manager, investor, consultant, independent contractor, servicer, advisor, director, officer, member,
manager or employee to, of, in or for any Competing Fund. Manager shall cause each of its key employees to enter into non-competition
agreements with Manager that are substantially consistent with the terms of this Section 7, unless such agreement would be prohibited
by applicable law, rule or regulation.

 

(b)       Each
of the Manager and its Affiliates shall not during the time it is acting as manager or general partner or in a similar capacity for the
Partnership and for a period of 12-months following any termination of this Agreement for Cause directly or indirectly, close, advise,
raise money for, manage or act as the general partner, investment manager, investor, consultant, independent contractor, servicer, advisor,
director, officer, member, manager or employee to, of, in or for any Competing Fund.

 

(c)       The
provisions of Section 7(a) and Section 7(b) shall no longer apply upon the occurrence of a Change of Control or a Good Reason
event, and the taking of any such actions shall not be taken into account in determining whether an Applicable Party has committed an
act that would constitute “Cause”.

 

    

     

    

 

(d)
        During the time that Manager is acting as manager or general partner or in a similar
capacity for the Company and for a period of 12-months following any termination of this Agreement for Cause, the Manager shall use
commercially reasonable efforts to cause Cowen not to, directly or indirectly, close, advise, raise money for, manage or act as the
general partner, investment manager, investor, consultant, independent contractor, servicer, advisor, director, officer, member,
manager or employee to, of, in or for any Competing Fund.

 

Section 8.      Status of the Manager.
The Manager shall, for all purposes hereof, be an independent contractor and not an employee of the Partnership and nothing in this Agreement
shall be construed as making the Partnership a partner or co-venturer with the Manager or any of its Affiliates or other funds, investment
vehicles or accounts to which Manager provides investment services. The Manager shall not have authority to act for, represent, bind or
obligate the Partnership, except as specifically provided in this Agreement.

 

Section 9.      Investments. All investments
of the Partnership and other activities undertaken by the Manager on behalf of the Partnership shall at all times conform to and be in
accordance with the requirements imposed by the following:

 

(a)              
any provisions of applicable law and regulation;

 

(b)             
provisions of the Organizational Documents; provided, however, that the Manager shall not be bound by any amendment
of any Organizational Document unless and until it has been given written notice thereof and has been provided with a copy of such amendment
and, provided, further, that Manager’s consent shall be required for any such amendment that is materially adverse
to the Manager or that imposes materially different obligations or restrictions on the Manager;

 

(c)              
without prejudice to Section 5, such policies, compliance procedures and reporting requirements as may be adopted from
time to time by the General Partner; provided, however, that the Manager shall not be bound by any such policies, unless
and until it has been given written notice thereof and provided, further, that Manager’s consent shall be required
for any such policies that constitute a materially adverse change or materially different change to the policies applicable to Manager.

 

For the purpose of Section 9(b)-(c), a
 “materially different” provision or policy shall include, without limitation, any material change in the number of investments
the Manager may execute in a given year or any change in the industries in which Manager may make investments.

 

Section 10.       Operating and Personnel
Payment.

 

(a)              
The Partnership shall pay the Manager a quarterly operating and personnel payment equal to the Applicable Percentage (as defined
below) multiplied by the amount of Royalty Receipts in such quarter (such aggregate amount, the “Operating and Personnel Payment”).
For purposes of this Section 10 and with respect to a particular quarter, the “Applicable Percentage” will be
determined based on the amount of Royalty Receipts of the Partnership in such quarter together with the Royalty Receipts of the preceding
three quarters (the “Trailing Royalty Receipt Amount”) and in accordance with the following schedule:

 

    

     

    

 

	Applicable Percentage	Trailing Royalty Receipt Amount
	7.5%	Less than $750 million. 
	7.0%	More than or equal to $750 million but less than $1 billion
	6.5%	More than or equal to $1 billion

 

(b)              
The Operating and Personnel Payment shall be payable by the Company (i) for the first fiscal quarter, on the date that is 3 Business
Days after the date hereof, and (ii) therafter, quarterly in arrears as of the last Business Day of each fiscal quarter based, in each
case on the estimated projected Royalty Receipts from Royalty Investments as of such date. The Manager shall recalculate the Operating
and Personnel Payment based on the actual Royalty Receipts from Royalty Investments following the date on which the Partnership’s
financial statements are finalized. If it is determined based on such recalculation that (i) the finalized Operating and Personnel Payment
exceeded prior payments of the Operating and Personnel Payment, then the amount of any shortfall shall be added to the next Operating
and Personnel Payment that becomes due or (ii) prior payments of the Operating and Personnel Payment exceeded the finalized Operating
Personnel and Expense Fee, then such excess shall be deducted from the next Operating and Personnel Payment that becomes due.

 

(c)              
The Partnership and its Subsidiaries shall have no employees of their own.

 

(d)              
For any partial fiscal quarter in respect of which the Operating and Personnel Payment is being paid, including in the event that
this Agreement is terminated for Cause, the Partnership shall pay an amount equal to the Applicable Percentage multiplied by the amount
of Royalty Receipts received during such partial fiscal quarter.

 

(e)              
The Operating and Personnel Payment shall be reduced by the amount of any operating and personnel payments that are paid to the
Manager by Parent pursuant to the management agreement between Parent and the Manager.

 

(f)               
To the extent that an investment of the Partnership is made through any Affiliate or Subsidiary other than Intermediate HoldCo
or Investment HoldCo, then the Partnership shall cause, or permit the Manager to cause, such Affiliate or Subsidiary to enter into a management
agreement with the Manager on substantially the same terms as the Management Agreement between the Manager and Holdings, including with
respect to any operating and personnel payment.

 

    

     

    

 

Section 11.      Expenses
of the Manager. The Manager or its Affiliates, but not the Partnership or any of its Subsidiaries or any Partner, shall bear and
be charged with the following costs and expenses of the Partnership’s activities: (a) any costs and expenses of providing
to the Partnership the office overhead necessary for the Partnership’s operations, including, but not limited to, rent and
other normal overhead and operating expenses; (b) the compensation of the Manager’s personnel, including, but not limited
to, benefits, and other expenses for such personnel; and (c) similar expenses to the extent that such expenses are not subject
to reimbursement by the Partnership pursuant to Section 12 (Partnership Expenses).

 

Section 12.     Partnership Expenses.
The Partnership shall bear and be charged with all expenses of the Partnership and its Subsidiaries (through its investment in such Subsidiaries)
other than expenses that are expressly borne by the Manager pursuant to Section 11 (Expenses of the Manager) including, without
limitation, the following costs and expenses of the Partnership:

 

(a)              
all organizational, administrative and operating expenses incurred on its behalf, including interest and financing expenses, expenses
of custodians, administrators, accountants, auditors, outside counsel and other similar service providers, the cost of the preparation
of financial statements, reports to Partners, the annual audit, financial and tax returns, tax and other similar reports required for
the Partnership and the Partners, extraordinary items such as litigation, indemnification and other similar expenses, and any taxes, fees
or other government charges levied against the Partnership;

 

(b)              
 independent valuation expenses (if applicable);

 

(c)              
expenses incurred in providing any reporting to Partners, the General Partner, the Parent or the stockholders of the Parent or
regulatory reporting, printing and mailing costs;

 

(d)              
third party research costs and expenses, including consultants, senior advisors, and regional advisors to the Partnership;

 

(e)              
administrative expenses (including any fee payable to an administrator, if appointed by the Partnership), government fees and taxes
(if any);

 

(f)               
expenses incurred in connection with any meeting of the Partners, including, without limitation, travel, meal and lodging expenses
and ancillary activities related thereto;

 

(g)              
fees and expenses related to regulatory compliance burdens of the Partnership or any Subsidiary or any investment of any Subsidiary;

 

(h)              
premiums for insurance;

 

(i)                
out-of-pocket expenses incurred in connection with complying with the provisions of any side letters;

 

(j)                
any registration or filing fees relating to the Partnership or any Subsidiary;

 

(k)              
all out-of-pocket costs and expenses, if any, incurred in sourcing, analyzing, conducting due diligence, holding, developing, negotiating,
structuring, acquiring and disposing of investments and prospective investments, whether or not ultimately made, and managing and disposing
of actual investments, including without limitation any financing, legal, accounting, advisory and consulting expenses in connection therewith
(to the extent the Manager is not otherwise reimbursed by another party or the costs are not capitalized as part of the acquisition price
of the transaction);

 

    

     

    

 

(l)                
 expenses (including travel expenses) incurred in connection with sourcing and investigating investment opportunities, developing
business opportunities for the Subsidiaries of the Partnership and monitoring their investments (including attending medical and industry
conferences), and in connection with attending and or sponsoring life science industry conferences and marketing events;

 

(m)            
interest on and fees and expenses arising out of all borrowings made by or on behalf of the Partnership, including, but not limited
to, the arranging thereof;

 

(n)              
costs of any litigation, Directors & Officers liability or other insurance and indemnification or extraordinary expense
or liability relating to the affairs of the Partnership;

 

(o)              
expenses of liquidating the Partnership;

 

(p)              
all expenses incurred in connection with any tax audit, investigation, settlement or review of the Partnership;

 

(q)              
any expenses in connection with the General Partner;

 

(r)               
legal and accounting fees and expenses and other expenses incurred by the Partnership in connection with the preparation for, and
conduct and closing of any offering of additional interests in the Partnership or shares in the Parent;

 

(s)                
the Partnership’s pro rata share of the expenses incurred in the formation of any Subsidiary; and

 

(t)              
any costs and expenses incurred in connection with the contemplation of, formation of, listing and ongoing operation of the Partnership,
including any third-party expenses of managing the Partnership, such as accounting, audit, legal, reporting, compliance, administration
(including directors’ fees), financial advisory, consulting, investor relations, and insurance expenses relating to the affairs
of the Partnership.

 

The Partnership shall promptly reimburse the Manager
or any of its Affiliates, as the case may be, to the extent that any of the costs and expenses set forth in this Section 12
are paid by such entities, provided, however, that any expenses incurred by the Manager or any of its Affiliates on behalf
of the Partnership and the Parent shall only be reimbursed once, and the Partnership will have no obligation to reimburse the Manager
for any expenses to the extent the Parent has reimbursed the Manager for such expenses pursuant to the Management Agreement between the
Parent and the Manager.

 

    

     

    

 

Section 13.      Exculpation.

 

(a)              
 To the fullest extent permitted by law, none of the Manager, its Affiliates including HCRX EPA and their respective officers,
directors, stockholders, members, employees, agents and partners, and any other person who serves at the request of the Manager on behalf
of the Partnership as an officer, director, employee or agent of, or with respect to, any other entity (each, an “Indemnitee”)
shall be liable to the Partnership or any Subsidiary or any Partner for (i) any act or omission taken or suffered by an Indemnitee
in connection with the conduct of the affairs of the Partnership or otherwise in connection with this Agreement or the matters contemplated
herein, unless such act or omission resulted from fraud, bad faith, willful misconduct, gross negligence, a material breach of this Agreement
which is not cured in accordance with the terms of this Agreement or a violation of applicable securities laws by such Indemnitee, and
except that nothing herein shall constitute a waiver or limitation of any rights which a Partner of the Partnership may have under applicable
securities laws or other laws and which may not be waived, or (ii) any mistake, negligence, dishonesty or bad faith of any broker
or other agent of the Partnership selected and monitored by the Manager with reasonable care.  

 

(b)              
To the extent that, at law or in equity, the Manager has duties (including fiduciary duties) and liabilities relating thereto to
the Partnership or another Partner, the Manager acting under this Agreement or refraining from taking action under this Agreement, shall
not be liable to the Partnership or to any such other Partner for its actions or inaction, taken or suffered in good faith and in reliance
on the provisions of this Agreement, provided, that such action or inaction does not constitute fraud, bad faith, willful misconduct
or gross negligence. The provisions of this Agreement, to the extent that they expand or restrict the duties and liabilities of the Manager
otherwise existing at law or in equity, are agreed by the Partners to modify to that extent such other duties and liabilities of the Manager.

 

(c)              
The Manager may consult with legal counsel and accountants selected by it and any act or omission taken or suffered by it on behalf
of the Partnership or in furtherance of the interests of the Partnership, taken or suffered in good faith and in reasonable reliance thereon,
upon and in accordance with the advice of such counsel or accountants shall be full justification for any such act or omission, and the
Manager shall be fully protected and held harmless in so acting or omitting to act; provided, such counsel or accountants were
selected and monitored with reasonable care. Notwithstanding any of the foregoing to the contrary, the provisions of this Section shall
not be construed so as to provide for the exculpation of any Indemnitee for any liability (including liability under U.S. federal or state
securities laws (which includes liability for violation of the anti-fraud provisions contained in Section 206 of the Advisers Act)
which, under certain circumstances, impose liability even on Persons that act in good faith), to the extent (but only to the extent) that
such liability may not be waived, modified or limited under applicable law, but shall be construed so as to effectuate the provisions
of this Section to the fullest extent permitted by law.

 

    

     

    

 

Section 14.     Indemnification.

 

(a)               To
the fullest extent permitted by law, the Partnership shall indemnify and save harmless each Indemnitee from and against any and all
claims, liabilities, damages, losses, penalties, actions, judgments, costs and expenses (including amounts paid in satisfaction of
judgments, in compromises and settlements, as fines and penalties and legal or other costs and reasonable expenses of investigating
or defending against any claim or alleged claim) of any nature whatsoever, known or unknown, liquidated or unliquidated, that are
incurred by any Indemnitee or to which such Indemnitee may be subject by reason of its activities on behalf of the Partnership or
any of its Subsidiaries or in furtherance of the interests of the Partnership or otherwise arising out of or in connection with the
affairs of the Partnership, its Subsidiaries or Affiliates, including the performance by such Indemnitee of any of the
Manager’s responsibilities under this Agreement and/or under the governing documents of any Subsidiary or otherwise in
connection with the matters contemplated herein or therein; provided, that: (i) an Indemnitee shall be entitled to
indemnification hereunder only to the extent that such Indemnitee’s conduct did not constitute fraud, bad faith, willful
misconduct, gross negligence, a material breach of this Agreement which is not cured in accordance with the terms of this Agreement
or a violation of applicable securities laws; (ii) nothing herein shall constitute a waiver or limitation of any rights which a
Partner or the Partnership may have under applicable securities laws or other laws and which may not be waived; and (iii) the
Partnership’s obligations hereunder shall not apply with respect to (x) economic losses or tax obligations incurred by
any Indemnitee as a result of such Indemnitee’s ownership of an interest in the Partnership, or in Royalty Investments,
(y) expenses of the Partnership that an Indemnitee has agreed to bear or (z) amounts recoverable by the Indemnitee from
other sources (including without limitation insurance) as provided in Section 14(d). The satisfaction of any
indemnification and any saving harmless pursuant to this Section shall be from and limited to Partnership assets, and no Partner
shall have any personal liability on account thereof. The conduct of the Manager and HCRX EPA shall be attributed to one another for
purposes of determining whether indemnification is available pursuant to this Section and whether conduct meets the standards set
forth in Section 13 (Exculpation).

 

(b)              
Expenses reasonably incurred by an Indemnitee in defense or settlement of any claim that may be subject to a right of indemnification
hereunder shall be advanced by the Partnership prior to the final disposition thereof upon receipt of an undertaking by or on behalf of
the Indemnitee to repay such amount to the extent that it shall be determined ultimately that such Indemnitee is not entitled to be indemnified
hereunder.

 

(c)              
The right of any Indemnitee to the indemnification provided herein shall extend to such Indemnitee’s heirs, executors, administrators,
successors, assigns and legal representatives and shall be cumulative of, and in addition to, any and all rights to which such Indemnitee
may otherwise be entitled by contract or as a matter of law or equity. Notwithstanding the foregoing, no Indemnitee may have any other
rights to indemnification from the Partnership or enter into, or make any claim under, any other agreement with the Partnership (whether
direct or indirect) providing for indemnification except as otherwise set forth in this Agreement.

 

(d)               Any
Person entitled to indemnification from the Partnership hereunder shall first seek recovery under any other indemnity or any
insurance policies by which such Person is indemnified or covered, as the case may be, but only to the extent that the indemnitor
with respect to such indemnity or the insurer with respect to such insurance policy provides (or acknowledges its obligation to
provide) such indemnity or coverage on a timely basis, as the case may be, and, if such Person is other than the Manager, such
Person shall obtain the written consent of the Manager prior to entering into any compromise or settlement which would result in an
obligation of the Partnership to indemnify such Person; and if liabilities arise out of the conduct of the affairs of the
Partnership and any other Person for which the Person entitled to indemnification from the Partnership hereunder was then acting in
a similar capacity, the amount of the indemnification provided by the Partnership shall be limited to the Partnership’s
proportionate share thereof as determined by the Manager in light of its fiduciary duties to the Partnership and the Partners.

 

    

     

    

 

(e)              
Notwithstanding any of the foregoing to the contrary, the provisions of this Section shall not be construed so as to provide for
the indemnification of any Indemnitee for any liability (including liability under U.S. federal or state securities laws (which includes
liability for violation of the anti-fraud provisions contained in Section 206 of the Advisers Act) which, under certain circumstances,
impose liability even on Persons that act in good faith), to the extent (but only to the extent) that such indemnification would be in
violation of law, but shall be construed so as to effectuate the provisions of this Section to the fullest extent permitted by law.

 

Section 15.     Limitations on Reference
to the Manager. The Partnership shall not distribute or circulate any sales literature, promotional or, save where required by applicable
law, regulation or court order, other material which contains any reference to the Manager without the prior approval of the Manager,
and, where practicable, shall submit in draft form all such materials requiring approval of the Manager, allowing sufficient time for
review by the Manager and its counsel prior to any deadline for printing. If the Manager ceases to furnish services to the Partnership,
the Partnership at its expense:

 

(a)              
as promptly as practicable, shall take all necessary action to cause the Organizational Documents to be amended to eliminate any
reference to the Manager; and

 

(b)              
within 60 days after the date on which the Manager ceases to furnish services to the Partnership, shall cease to use in any other
manner, including use in any `sales literature or promotional material, the name of the Manager, save where required by applicable law,
regulation or court order.

 

Section 16.    Term. This Agreement
shall have an initial term of ten years ending on [●] [●], 2031 (the “Initial Term”), after which
it shall automatically renew for a term of three years thereafter (a “Renewal Term”), unless either the Manager or
the Partnership provides to the other party prior written notice of non-renewal at least 180 days prior to the expiration of the Initial
Term.

 

Section 17.    Removal.

 

(a)              
Subject to the following provisions of this Section 17, during the Initial Term and the Renewal Term, this Agreement may
only be terminated by the Partnership for Cause. 

 

(b)              
If the Management Agreement with Parent or any other Subsidiary is terminated for Cause then this Agreement shall automatically
be terminated, and the provisions of Section 6 and Sections 7(a) and (b) shall no longer apply.

 

    

     

    

 

(c)               The
Partnership shall have the right to terminate the Manager following (i) a determination of Cause by a court or governmental
body of competent jurisdiction in a final judgement, or (ii) an admission in writing of Cause by the Manager or HCRX EPA. In
the event that Mr. Futch commits an act constituting Cause (while he is acting as chief executive officer of the Company), such
action shall be imputed to HCRX EPA and the Manager. Any act constituting Cause committed by any other named executive officer or
key employee of HCRX EPA or the Manager (including Mr. Futch if he is no longer acting as chief executive officer of the
Company) shall not be imputed to HCRX EPA and the Manager if the Manager terminates such executive’s engagement with,
employment by or relationship with the Manager and HCRX EPA within such reasonable period of time as may be agreed to by the General
Partner; provided that if such executive is not terminated within such period of time then such Cause event shall be imputed
to HCRX EPA and the Manager.

 

Section 18.     Choice of Law.
Notwithstanding the place where this Agreement may be executed by any of the parties hereto, the parties expressly agree that all of
the terms and provisions hereof shall be governed by and construed under the laws of the State of Delaware applicable to contracts made
and to be entirely performed in such state.

 

Section 19.     Confidentiality. Except
as may be required by applicable law or by any regulatory authority or agency or as may otherwise be contemplated by this Agreement, each
of the parties hereto hereby covenants and undertakes with the other party hereto to keep secret and confidential and not to disclose
to any person any Confidential Information; provided, however, that no party shall be required to keep secret and confidential
any Confidential Information which has properly entered the public domain otherwise than through the default of such party except where
the parties are compelled to do so by any self-regulatory body or by applicable law. No public announcement shall be made or circular,
notice or advertisement issued in connection with the subject matter of this Agreement by either of the parties hereto without the prior
approval of the other party hereto.

 

Section 20.      Severability. If any provision
of this Agreement is invalid or unenforceable under any applicable law, then such provision shall be deemed inoperative to the extent
that it may conflict therewith and shall be deemed modified to conform with such applicable law. Any provision hereof which may be held
invalid or unenforceable under any applicable law shall not affect the validity or enforceability of any other provisions hereof, and
to this extent the provisions hereof shall be severable.

 

Section 21.      Force Majeure. The
Manager shall not be responsible for any loss of or damage to any property, securities, instruments or other assets of the Parent for
any failure to fulfil any of its duties hereunder if such loss, damage or failure is directly or indirectly caused by or due to any act
of God, storm, tempest, accident, fire, water damage, riot, civil commotion, rebellion, strike, lock-out, government or military action
or any other cause or circumstance beyond the control of the Manager, provided that the Manager shall use all reasonable efforts to minimize
the effects thereof.

 

Section 22.     Forum. To the fullest
extent permitted by law, in the event of any proceeding arising out of the terms and conditions of this Agreement, the parties
hereto irrevocably (i) consent and submit to the exclusive jurisdiction of the Delaware Court of Chancery and any state
appellate court therefrom within the State of Delaware (unless the Delaware Court of Chancery shall decline jurisdiction over a
particular matter, in which case, any state or federal court within the State of Delaware), (ii) waive any defense based on
doctrines of venue or forum non conveniens, or similar rules or doctrines, and (iii) agree that all claims in respect of
such a proceeding must be heard and determined exclusively in the Delaware Court of Chancery and any state appellate court therefrom
within the State of Delaware (unless the Delaware Court of Chancery shall decline jurisdiction over a particular matter, in which
case, any state or federal court within the State of Delaware). Process in any such proceeding may be served on any party anywhere
in the world, whether within or without the jurisdiction of any such court.

 

    

     

    

 

Section 23.     Notices.

 

(a)              
Each notice relating to this Agreement shall be in writing and delivered in person, by registered or certified mail, by Federal
Express or similar overnight courier service, by electronic mail (e-mail) to the address or e-mail address on record.

 

(b)              
Unless otherwise specifically provided in this Agreement, a notice shall be deemed to have been effectively given when delivered
personally, if delivered on a Business Day; the next Business Day after personal delivery, if delivered personally on a day that is not
a Business Day; four Business Days after being deposited in the United States mail, postage prepaid, return receipt requested, if mailed;
on the next Business Day after being deposited for next day delivery with Federal Express or similar overnight courier; and when a reply
e-mail acknowledging receipt is received by the sender, if e-mailed.

 

Section 24.     Entire Agreement. This
Agreement contains all of the terms agreed upon or made by the parties relating to the subject matter of this Agreement, and supersedes
all prior and contemporaneous agreements, negotiations, correspondence, undertakings and communications of the parties, oral or written,
respecting such subject matter.

 

Section 25.      Amendments and Waivers.
No provision of this Agreement may be amended, modified, waived or discharged except as agreed to in writing by the parties. The failure
of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver thereof or deprive
that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

 

Section 26.    Binding Effect; Assignment.
This Agreement shall be binding upon and inure to the benefit the Parent, the Manager, each Indemnified Party and their respective successors
and permitted assigns. Any Person that is not a signatory to this Agreement but is nevertheless conferred any rights or benefits hereunder
(e.g., officers, partners and employees of the Manager and others who are entitled to indemnification hereunder) shall be entitled
to such rights and benefits as if such Person were a signatory hereto, and the rights and benefits of such Person hereunder may not be
impaired without such Person’s express written consent. No assignment (as that term is defined under the Advisers Act) by either
party of all or any portion of its rights, obligations or liabilities under this Agreement shall be permitted without the prior written
consent of the other party to this Agreement.

 

Section 27.     Headings. The headings
of the Sections of this Agreement are for convenience of reference only, and are not to be considered in construing the terms and provisions
of this Agreement. References to “Section” in this Agreement shall be deemed to refer to the indicated Section of this Agreement,
unless the context clearly indicates otherwise.

 

    

     

    

 

Section 28.     Discretion; Good Faith.
Whenever in this Agreement the Manager is permitted or required to make a decision (i) in its “discretion” or under a
grant of similar authority or latitude, the Manager shall be entitled to consider such interests and factors as it desires, including
its own interests, or (ii) in its “good faith” or under another express standard, the Manager shall act under such express
standard, shall not be subject to any other or different standard imposed by applicable law and may exercise its discretion differently
with respect to different investors.

 

Section 29.    Counterparts. Counterparts
may be executed through the use of separate signature pages or in any number of counterparts with the same effect as if the parties executing
such counterparts had all executed one counterpart. Each party understands and agrees that any portable document format (PDF) file, facsimile
or other reproduction of its signature on any counterpart shall be equal to and enforceable as its original signature and that any such
reproduction shall be a counterpart hereof that is fully enforceable in any court or arbitral panel of competent jurisdiction.

 

Section 30.    Survival. The provisions
of the Section entitled Operating and Personnel Payment (only to the extent that the Operating and Personnel Payment is earned by the
Manager prior to termination of this Agreement), and the Sections entitled Covenant/Devotion of Time, Non-Competition, Exculpation, Indemnification,
Limitations on Reference to the Manager, Choice of Law, Forum, Notices, Entire Agreement, Binding Effect; Assignment, Survival and Waiver
of Jury Trial shall survive the termination of this Agreement.

 

Section 31.     Waiver of Jury Trial.
EACH PARTY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ITS RIGHT TO A TRIAL BY JURY TO THE EXTENT PERMITTED BY LAW IN ANY PROCEEDING
ARISING OUT OF THE TERMS AND CONDITIONS OF THIS AGREEMENT. THIS WAIVER APPLIES TO ANY PROCEEDING, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE. EACH PARTY ACKNOWLEDGES THAT IT HAS RECEIVED THE ADVICE OF COMPETENT COUNSEL.

 

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blank.]

 

    

     

    

 

IN WITNESS
WHEREOF the parties hereto have caused this Agreement to be executed as of the date first set forth above.

 

	HEALTHCARE ROYALTY HOLDINGS, LP	 	HCRX MANAGEMENT, LLC
	By:	HCRX Master GP, LLC	 	 
	 	 	 	 
	By:	/s/ 	 	By:	/s/ 
	Name: Clarke B. Futch	 	Name: 
	Title: Chairman & Chief Executive Officer	 	Title:
	 	 	 
	HCRX INTERMEDIATE HOLDCO, L.P.	 	 
	By:	HCRX Master GP, LLC	 	 
	 	 	 	 
	By:	/s/ 	 	 
	Name: Clarke B. Futch	 	 
	Title: Chairman & Chief Executive Officer	 	 
	 	 	 
	HCRX INVESTMENTS HOLDCO, L.P.	 	 
	By:	HCRX Master GP, LLC	 	 
	 	 	 	 
	By:	/s/ 	 	 
	Name: Clarke B. Futch	 	 
	Title: Chairman & Chief Executive Officer	 	 

  

    

     

    

 

Exhibit B

 

Approved Actions 

 

Discuss.Exhibit 10.2

 

EXHIBIT G TO PLAN OF REORGANIZATION

 APPENDIX H TO INFORMATION STATEMENT

 

FORM OF

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of [●], 2021, is made and entered into by and among each of
Healthcare Royalty, Inc. (the “Company”) and HCRX Feeder Fund, L.P., a Delaware limited partnership the (“Continuing
Investor Partnership”), together with any person or entity who hereafter becomes a party to this Agreement pursuant
to Section 5.2 of this Agreement (each, a “Holder” and collectively, the “Holders”).

 

RECITALS

 

WHEREAS, the Company
has issued the Continuing Investor Partnership an aggregate of [__________] shares (the “Class B Shares”) of
the Company’s Class B common stock, $0.01 par value per share (the “Class B Common Stock”) and an aggregate
of [________] Class B units (“Class B Units”) of Healthcare Royalty Holdings, L.P. (“Holdings LP”);

 

WHEREAS, each Class
B Share, together with a Class B Unit, is convertible into a share of the Company’s Class A common stock, par value $0.01 per share
(the “Common Stock”), on the terms and conditions provided in the Company’s amended and restated certificate
of incorporation;

 

NOW, THEREFORE, in
consideration of the representations, covenants and agreements contained herein, and certain other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

 

Article I

DEFINITIONS

 

1.1          Definitions. The terms defined in this Article I shall, for all purposes of this Agreement, have the respective
meanings set forth below:

 

“Adverse
Disclosure” shall mean any public disclosure of material non-public information, which disclosure, in the good faith
judgment of the Board or the Chairman, Chief Executive Officer or principal financial officer of the Company (i) would be required to
be made in any Registration Statement or Prospectus in order for the applicable Registration Statement or Prospectus not to contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
contained therein (in the case of any Prospectus and any preliminary Prospectus, in the light of the circumstances under which they were
made) not misleading, (ii) would not be required to be made at such time if the Registration Statement were not being filed, and (iii)
the Company has a bona fide business purpose for not making such information public.

 

“Affiliate”
of a person or entity means any other person or entity directly or indirectly controlling, controlled by or under common control with
such person or entity.

 

“Agreement”
shall have the meaning given in the Preamble.

 

     

     

    

 

“Board”
shall mean the Board of Directors of the Company.

 

“Business
Day” means any day, other than a Saturday or a Sunday, that is neither a legal holiday nor a day on which banking
institutions are generally authorized or required by law or regulation to close in the City of New York, New York.

 

“Commission”
shall mean the United States Securities and Exchange Commission and any successor agency performing comparable functions.

 

“Common
Stock” shall have the meaning given in the Recitals hereto.

 

“Company”
shall have the meaning given in the Preamble.

 

“Demand
Exercise Notice” shall have the meaning given in subsection 2.1.2.

 

“Demanding Holders”
shall mean Holders of a number of Registrable Securities with an aggregate Fair Market Value at least equal to $300,000,000, determined
as of the applicable date of any Demand Registration Request or Shelf Underwriting Request.

 

“Demand
Registration” shall have the meaning given in subsection 2.1.2.

 

“Demand
Registration Period” shall have the meaning given in subsection 2.1.2.

 

“Demand
Registration Request” shall have the meaning given in subsection 2.1.2.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as it may be amended from time to time, and the rules and regulations
promulgated thereunder.

 

“Fair Market Value”
shall mean the VWAP of the shares of Common Stock issued or issuable upon conversion, exercise or exchange of any Registrable Security.

 

“Filing
Date” shall have the meaning given in subsection 2.1.1(a).

 

“Form
S-1” shall mean Form S-1 for the registration of securities under the Securities Act promulgated by the Commission.

 

“Form
S-3” shall mean Form S-3 for the registration of securities under the Securities Act promulgated by the Commission.

 

“Holders”
shall have the meaning given in the Preamble.

 

“Holdings”
shall have the meaning set forth in the Recitals hereto.

 

“Initiating
Holders” shall have the meaning given in subsection 2.1.2.

 

“Joinder Agreement”
means a joinder agreement, substantially in the form attached hereto as Annex A.

 

    2 

     

    

 

“Lock-Up Agreement”
means that certain Lock-Up Agreement by and between the Company and the Holders of even date herewith.

 

“Maximum
Number of Securities” shall have the meaning given in subsection 2.1.3.

 

“Minimum
Demand Threshold” shall mean $500,000,000.

 

“Misstatement”
shall mean an untrue statement of a material fact or an omission to state a material fact required to be stated in a Registration Statement,
preliminary Prospectus or Prospectus, or necessary to make the statements in a Registration Statement, preliminary Prospectus or Prospectus
(in the case of the preliminary Prospectus or Prospectus, in light of the circumstances under which they were made) not misleading.

 

“Permitted
Transferees” shall mean with respect to any Holder, (i) any Affiliates of such Holder, (ii) any general or limited
partner thereof and any managing director, general partner, director, limited partner, officer or employee of any Affiliate thereof, or
any spouse, lineal descendant, sibling, parent, heir, executor, administrator, testamentary trustee, legatee or beneficiary of any of
the foregoing persons described in this clause, (iii) any trust, the beneficiaries of which, or any corporation, limited liability company
or partnership, the stockholders, members or general or limited partners of which, consist solely of any one or more of such Holder or
Permitted Transferee, any general or limited partner of such Holder or Permitted Transferee, their spouses or their lineal descendants
or (iv) any other Holder.

 

“Piggy-back
Registration” shall have the meaning given in Section 2.2.1.

 

“Pro
Rata” shall have the meaning given in Section 2.1.3.

 

“Prospectus”
shall mean the prospectus included in any Registration Statement, as supplemented by any and all prospectus supplements and as amended
by any and all post-effective amendments and including all materials incorporated by reference in such prospectus.

 

“Registrable
Security” shall mean (a) the shares of Common Stock issued or issuable upon the conversion of any Class B Shares
and Class B Units, (b) any shares of Common Stock acquired by a Holder after the date hereof and prior to the termination of this Agreement
and (c) any other equity security of the Company issued or issuable with respect to any such shares of Common Stock by way of a stock
dividend or stock split or in connection with a combination of stock, acquisition, recapitalization, consolidation, reorganization, stock
exchange, stock reconstruction and amalgamation or contractual control arrangement with, purchasing all or substantially all of the assets
of, or engagement in any other similar transaction; provided, however, that, as to any particular Registrable Security,
such securities shall cease to be Registrable Securities when: (i) if a Registration Statement with respect to the sale of such securities
shall have become effective under the Securities Act, the date that such securities shall have been sold, transferred, disposed of or
exchanged pursuant to such Registration Statement; (ii) such securities shall have ceased to be outstanding; (iii) such securities have
been sold to, or through, a broker, dealer or underwriter in a public distribution or other public securities transaction; or (iv) such
securities shall have been sold or transferred pursuant to Rule 144. For the avoidance of doubt, it being understood that any Common
Stock issuable pursuant to subsection (a) of this definition and held by the Holder of the Class B Units with respect to which it is
issuable for all purposes hereunder prior to its issuance or a Permitted Transferee thereof shall be considered a Registrable Security.

 

“Registration”
shall mean a registration effected by preparing and filing a Registration Statement or similar document in compliance with the requirements
of the Securities Act, and the applicable rules and regulations promulgated thereunder, and such Registration Statement becoming effective.

 

    3 

     

    

 

“Registration
Expenses” shall mean the out-of-pocket expenses of a Registration, including, without limitation, the following:

 

(A)         all
registration and filing fees (including fees with respect to filings required to be made with the Financial Industry Regulatory Authority
and any securities exchange on which the Common Stock is then listed);

 

(B)          fees
and expenses of compliance with securities or blue sky laws (including reasonable and documented fees and disbursements of counsel for
the Underwriters in connection with blue sky qualifications of Registrable Securities);

 

(C)          printing,
messenger, telephone and delivery expenses;

 

(D)          reasonable fees and disbursements of counsel for the Company;

 

(E)          reasonable fees and expenses of a single firm of legal counsel for the Holders participating in such Registration; and

 

(F)          reasonable fees and disbursements of all independent registered public accountants of the Company incurred specifically in connection
with such Registration.

 

“Registration
Statement” shall mean any registration statement that covers the Registrable Securities pursuant to the provisions
of this Agreement, including the Prospectus included in such registration statement, amendments (including post-effective amendments)
and supplements to such registration statement, and all exhibits to and all materials incorporated by reference in such registration statement.

 

“Requesting
Holder” shall have the meaning given in subsection 2.1.3.

 

“Requisite Holders”
means Holders (including Permitted Transferees) that are parties to this Agreement and hold a majority of the aggregate number of outstanding
Registrable Securities; provided that, for the purpose of this definition, Class B Units are to be counted as if all such Class
B Units have been exchanged for shares of Common Stock.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated
thereunder.

 

“Shelf
Registrable Securities” shall have the meaning given in subsection 2.1.1(b).

 

“Shelf
Registration Statement” shall have the meaning given in subsection 2.1.1(a).

 

    4 

     

    

 

“Shelf
Underwriting” shall have the meaning given in subsection 2.1.1(b).

 

“Shelf
Underwriting Notice” shall have the meaning given in subsection 2.1.1(b).

 

“Shelf
Underwriting Request” shall have the meaning given in subsection 2.1.1(b).

 

“Synthetic
Secondary Transaction” shall have the meaning given in subsection 2.5.

 

“Underwriter”
shall mean a securities dealer who purchases any Registrable Securities as principal in an Underwritten Offering and not as part of such
dealer’s market-making activities.

 

“Underwritten
Registration” or “Underwritten Offering” shall mean
a Registration in which securities of the Company are sold to an Underwriter in a firm commitment underwriting for distribution to the
public.

 

“VWAP”
shall mean the volume-weighted average price of the Common Stock on the principal market on which such shares of Common Stock are traded
for the ten trading days immediately preceding the date of determination of Fair Market Value.

 

Article II

REGISTRATIONS

 

2.1          Demand Registration.

 

2.1.1       Shelf
Registration Statement. (a) As soon as practicable but no later than sixty (60) Business Days after the later of (x) the first anniversary
of the date hereof or (y) the first date upon which the Company shall have qualified for the use of a Registration Statement on Form
S-3 or any other form which permits incorporation of substantial information by reference to other documents filed by the Company with
the Commission (the “Filing Date”), the Company shall prepare and file
with (or confidentially submit to) the Commission a shelf registration statement under Rule 415 of the Securities Act (such registration
statement, a “Shelf Registration Statement”) covering the resale of
all the Registrable Securities (determined as of two Business Days prior to such filing) on a delayed or continuous basis (and which
may also cover any other securities of the Company) and shall use its commercially reasonable efforts to have such Shelf Registration
Statement declared effective as soon as practicable after the filing thereof and no later than the earlier of (x) the 60th
calendar day (or 80th calendar day if the Commission notifies the Company that it will “review” the Registration
Statement) following the Filing Date and (y) the fifth (5th) Business Day after the date the Company is notified (orally or
in writing, whichever is earlier) by the Commission that the Registration Statement will not be “reviewed” or will not be
subject to further review. Such Shelf Registration Statement shall provide for the resale of the Registrable Securities included therein
pursuant to any method or combination of methods legally available to, and reasonably requested by, any Holder named therein. The Company
shall use its commercially reasonable efforts to maintain the Shelf Registration Statement in accordance with the terms hereof, and shall
prepare and file with the Commission such amendments, including post-effective amendments, and supplements as may be necessary to keep
a Shelf Registration Statement continuously effective, available for use to permit all Holders named therein to sell their Registrable
Securities included therein and in compliance with the provisions of the Securities Act until such time as there are no longer any Registrable
Securities.

 

    5 

     

    

 

(b)            Subject to Section 2.3 and Section 2.4, at any time after the effectiveness of the Shelf Registration Statement,
the Demanding Holders may make a written demand from time to time to elect to sell all or any part of their Registrable Securities, with
a total offering price reasonably expected to exceed, in the aggregate, the Minimum Demand Threshold, pursuant to an Underwritten Offering
pursuant to the Shelf Registration Statement, which written demand shall describe the amount and type of securities to be included in
such Registration and the intended method(s) of distribution thereof. The Demanding Holders shall make such election by delivering to
the Company a written request (a “Shelf Underwriting Request”) for such
Underwritten Offering specifying the number of Registrable Securities that the Demanding Holders desire to sell pursuant to such Underwritten
Offering (the “Shelf Underwriting”). As promptly as practicable, but
no later than two (2) Business Days after receipt of a Shelf Underwriting Request, the Company shall give written notice (the “Shelf
Underwriting Notice”) of such Shelf Underwriting Request to the Holders of record of other Registrable Securities
registered on such Shelf Registration Statement (“Shelf Registrable Securities”).
The Company, subject to Section 2.1.3, shall include in such Shelf Underwriting (x) the Registrable Securities of the Demanding
Holders and (y) the Shelf Registrable Securities of any other Holder of Shelf Registrable Securities that shall have made a written request
to the Company for inclusion in such Shelf Underwriting (which request shall specify the maximum number of Shelf Registrable Securities
intended to be disposed of by such Holder) within five (5) days after the receipt of the Shelf Underwriting Notice. The Company shall,
as expeditiously as possible (and in any event within fifteen (15) Business Days after the receipt of a Shelf Underwriting Request),
but subject to Section 2.3, use its reasonable best efforts to effect such Shelf Underwriting. The Company shall, at the request
of any Demanding Holders, file any prospectus supplement or, if the applicable Shelf Registration Statement is an automatic shelf registration
statement, any post-effective amendments and otherwise take any action necessary to include therein all disclosure and language deemed
necessary or advisable by the Demanding Holders or any other Holder of Shelf Registrable Securities to effect such Shelf Underwriting.
Once a Shelf Registration Statement has been declared effective, the Demanding Holders may request, and the Company shall be required
to facilitate an aggregate of two (2) Shelf Underwritings pursuant to this subsection 2.1.1(b) with respect to any or all Registrable
Securities, which number of Shelf Underwritings that the Company shall be required to facilitate shall be reduced by the number of any
Demand Registrations pursuant to subsection 2.1.2; provided, however, that, in each case, a Shelf Underwriting shall
not be counted for such purposes unless a Registration Statement has become effective and all of the Registrable Securities requested
by the Demanding Holders to be registered on behalf of the Demanding Holders in such Shelf Underwriting have been sold.

 

2.1.2        Other
Demand Registration. At any time after the date of this Agreement that a Shelf Registration Statement provided for in Section
2.1.1(a) is not available for use by the Holders (a “Demand Registration
Period”), subject to this Section 2.1.2 and Section 2.3 and Section 2.4, the Demanding
Holders shall have the right to make a written demand from time to time to effect one or more registration statements under the
Securities Act covering all or any part of their Registrable Securities, with a total offering price reasonably expected to exceed,
in the aggregate, the Minimum Demand Threshold, by delivering a written demand therefor to the Company, which written demand shall
describe the amount and type of securities to be included in such Registration and the intended method(s) of distribution thereof.
Any such request by any Demanding Holder pursuant to this Section 2.1.2 is referred to herein as a “Demand
Registration Request,” and the registration so requested is referred to herein as a “Demand
Registration” (with respect to any Demand Registration, the Demanding Holders making such demand for
registration being referred to as the “Initiating Holders”).
Subject to Section 2.3, the Demanding Holders shall be entitled to request (and the Company shall be required to effect) an
aggregate of two (2) Demand Registrations pursuant to this subsection 2.1.2 with respect to any or all Registrable Securities
held by the Holders; provided, however, that a Demand Registration shall not be counted for such purposes unless a
Registration Statement has become effective and more than two-thirds (2/3) of the Registrable Securities requested by the Demanding
Holders to be registered on behalf of the Demanding Holders in such Demand Registration have been sold; and provided, further,
that the number of Demand Registrations the Demanding Holders shall be entitled to request shall be reduced by each Shelf
Underwriting effected for such Demanding Holder pursuant to Section 2.1.1(b). The Company shall give written notice (the
 “Demand Exercise Notice”) of such Demand Registration Request to
each of the Holders of record of Registrable Securities as promptly as practicable but no later than two (2) Business Days after
receipt of the Demand Registration Request. The Company, subject to Sections 2.3 and 2.4, shall include in a Demand
Registration (x) the Registrable Securities of the Initiating Holders and (y) the Registrable Securities of any other Holder of
Registrable Securities which shall have made a written request to the Company for inclusion in such registration pursuant to Section
2.1.2 (which request shall specify the maximum number of Registrable Securities intended to be disposed of by such Holder)
within five (5) days following the receipt of any such Demand Exercise Notice. The Company shall, as expeditiously as possible, but
subject to Section 2.3, use its reasonable best efforts to (x) file or confidentially submit with the Commission no later
than sixty (60) days from the Company’s receipt of the applicable Demand Registration Request, (y) cause to be declared
effective as soon as reasonably practicable such registration statement under the Securities Act that includes the Registrable
Securities which the Company has been so requested to register, for distribution in accordance with the intended method of
distribution and (z) if requested by the Initiating Holders, obtain acceleration of the effective date of the registration statement
relating to such registration.

 

    6 

     

    

 

2.1.3       Reduction
of Underwritten Offering. If the managing Underwriter or Underwriters in an Underwritten Registration pursuant to a Shelf Underwriting
or Demand Registration, in good faith, advises the Company, the Demanding Holders and any other Holders participating in the Underwritten
Registration (if any) (the “Requesting Holders”) in writing that the
dollar amount or number of Registrable Securities that such Holders desire to sell, taken together with all other shares of Common Stock
or other equity securities that the Company desires to sell and the shares of Common Stock, if any, as to which a Registration has been
requested pursuant to separate written contractual piggy-back registration rights held by any other stockholders who desire to sell,
exceeds the maximum dollar amount or maximum number of equity securities that can be sold in the Underwritten Offering without adversely
affecting the proposed offering price, the timing, the distribution method, or the probability of success of such offering (such maximum
dollar amount or maximum number of such securities, as applicable, the “Maximum Number of
Securities”), then the Company shall include in such Underwritten Offering, as follows:

 

		(i)	first, the Registrable Securities of the Demanding Holders and the Requesting Holders (if
                                                              any) (pro rata based on the respective number of Registrable Securities that each Demanding Holder and Requesting Holder (if any)
                                                              has requested be included in such Underwritten Registration and the aggregate number of Registrable Securities that the Demanding
                                                              Holders and Requesting Holders have collectively
requested be included in such Underwritten Registration (such proportion is referred to herein as “Pro
Rata”)) that can be sold without exceeding the Maximum Number of Securities; provided, that any securities
thereby allocated to a Holder that exceed such Holder’s request shall be reallocated among the remaining Holders in like manner;

 

		(ii)	second, to the extent that the Maximum Number of Securities has not been reached under the foregoing
clause (i), the shares of Common Stock or other equity securities that the Company desires to sell that can be sold without exceeding
the Maximum Number of Securities; and

 

		(iii)	third, to the extent that the Maximum Number of Securities has not been reached under the foregoing
clauses (i) and (ii), the shares of Common Stock or other equity securities of other persons or entities that the Company
is obligated to register in a Registration pursuant to separate written contractual arrangements with such persons and that can be sold
without exceeding the Maximum Number of Securities.

 

    7 

     

    

 

2.1.4       Demand Registration Withdrawal. Any Demanding Holder initiating a Shelf Underwriting or Demand Registration, pursuant
to a Registration under subsection 2.1.1 or 2.1.2 shall have the right in their sole discretion to withdraw from a Registration
pursuant to such Demand Registration upon written notification to the Company and the Underwriter or Underwriters (if any) of their intention
to withdraw from such Registration prior to (i) in the case of a Shelf Underwriting, the filing of a preliminary prospectus supplement
setting forth the terms of the Underwritten Offering with the Commission and (ii) in the case of a Demand Registration, the effectiveness
of the Registration Statement filed with the Commission with respect to the Registration of their Registrable Securities pursuant to such
Demand Registration. Notwithstanding anything to the contrary in this Agreement, the Company shall be responsible for the Registration
Expenses incurred in connection with a Registration pursuant to a Shelf Underwriting or Demand Registration prior to its withdrawal under
this Section 2.1.4; provided, however, that a Demand Registration shall not be counted for such purposes of Section 2.1.2
if such Demand Registration is withdrawn pursuant to this Section 2.1.4.

 

2.2          Piggy-back
Registration.

 

2.2.1       Piggy-back
Rights. If, at any time on or after the date hereof, the Company proposes to file a Registration Statement under the Securities
Act with respect to an offering of equity securities, or securities or other obligations exercisable or exchangeable for, or
convertible into equity securities, for its own account or for the account of stockholders of the Company, other than a Registration
Statement (i) filed in connection with any employee stock option or other benefit plan, (ii) for an exchange offer, as part of a
merger, consolidation or similar transaction or for an offering of securities solely to the Company’s existing stockholders,
(iii) for an offering of debt that is convertible into equity securities of the Company, or (iv) for a dividend reinvestment plan,
(v) filed pursuant to Section 2.1 hereof, then the Company shall give written notice of such proposed filing to all of the
Holders of Registrable Securities as soon as practicable but not less than ten (10) days before the anticipated filing date of such
Registration Statement, which notice shall (A) describe the amount and type of securities to be included in such offering, the
intended method(s) of distribution, and the name of the proposed managing Underwriter or Underwriters, if any, in such offering, and
(B) offer to all of the Holders of Registrable Securities the opportunity to register the sale of such number of Registrable
Securities as such Holders may request in writing within five (5) Business Days after receipt of such written notice (such
Registration a “Piggy-back Registration”). The Company shall, in
good faith, cause such Registrable Securities to be included in such Piggy-back Registration and shall use its best efforts to cause
the managing Underwriter or Underwriters of a proposed Underwritten Offering to permit the Registrable Securities requested by the
Holders pursuant to this subsection 2.2.1 to be included in a Piggy-back Registration on the same terms and conditions as any
similar securities of the Company included in such Registration and to permit the sale or other disposition of such Registrable
Securities in accordance with the intended method(s) of distribution thereof. All such Holders proposing to distribute their
Registrable Securities through an Underwritten Offering under this subsection 2.2.1 shall enter into an underwriting
agreement in customary form with the Underwriter(s) selected for such Underwritten Offering. The Company may postpone or withdraw
the filing or the effectiveness of a Piggy-back Registration at any time in its sole discretion.

 

    8 

     

    

 

2.2.2       Reduction
of Piggy-back Registration. If the managing Underwriter or Underwriters in an Underwritten Registration that is to be a Piggy-back
Registration, in good faith, advises the Company and the Holders of Registrable Securities participating in the Piggy-back Registration
in writing that the dollar amount or number of the shares of Common Stock that the Company desires to sell, taken together with (i) the
shares of Common Stock, if any, as to which Registration has been demanded pursuant to separate written contractual arrangements with
persons or entities other than the Holders of Registrable Securities hereunder, (ii) the Registrable Securities as to which registration
has been requested pursuant to Section 2.2.1 hereof, and (iii) the shares of Common Stock, if any, as to which Registration has been
requested pursuant to separate written contractual piggy- back registration rights of other stockholders of the Company, exceeds the
Maximum Number of Securities, then:

 

(a)            If
the Registration is undertaken for the Company’s account, the Company shall include in any such Registration

 

			(A) first, the shares of Common Stock or other equity securities that the Company desires to
                                                              sell, which can be sold without exceeding the Maximum Number of Securities;

 

			(B) second, to the extent that the Maximum Number of Securities has not been reached under
                                                              the foregoing clause (A), the Registrable Securities of Holders exercising their rights to register their Registrable
                                                              Securities pursuant to subsection 2.2.1 hereof, Pro Rata, which can be sold without exceeding the Maximum Number of
                                                              Securities; provided, that any securities thereby allocated to a Holder that exceed such Holder’s request shall be
                                                              reallocated among the remaining Holders in like manner; and

 

			(C) third, to the extent that the Maximum Number of Securities has not been reached under the
                                                              foregoing clauses (A) and (B), the shares of Common Stock, if any, as to which Registration has been requested
                                                              pursuant to written contractual registration rights of other stockholders of the Company, with such priorities among them as the
                                                              Company shall determine, which can be sold without exceeding the Maximum Number of Securities; and

 

    9 

     

    

 

(b)           If the Registration is pursuant to a request by persons or entities other than the Holders of Registrable Securities, then the
Company shall include in any such Registration

 

			(A) first, the shares of Common Stock or other equity securities, if any, of such requesting
                                                              persons or entities, which can be sold without exceeding the Maximum Number of Securities;

 

			(B) second, to the extent that the Maximum Number of Securities has not been reached under
                                                              the foregoing clause (A), the Registrable Securities of Holders exercising their rights to register their Registrable
                                                              Securities pursuant to subsection 2.2.1, Pro Rata, which can be sold without exceeding the Maximum Number of Securities; provided,
                                                              that any securities thereby allocated to a Holder that exceed such Holder’s request shall be reallocated among the remaining
                                                              Holders in like manner;

 

			(C) third, to the extent that the Maximum Number of Securities has not been reached under the
                                                                 foregoing clauses (A) and (B), the shares of Common Stock or other equity securities that the Company desires to sell
                                                                 which can be sold without exceeding the Maximum Number of Securities; and

 

			(D) fourth, to the extent that the Maximum Number of Securities has not been reached under
                                                              the foregoing clauses (A), (B) and (C), the shares of Common Stock or other equity securities for the account
                                                              of other persons or entities that the Company is obligated to register pursuant to separate written contractual arrangements with
                                                              such persons or entities, with such priorities among them as the Company shall determine, which can be sold without exceeding the
                                                              Maximum Number of Securities.

 

2.2.3       Piggy-back
Registration Withdrawal. Any Holder of Registrable Securities shall have the right to withdraw from a Piggy-back Registration for
any or no reason whatsoever upon written notification to the Company and the Underwriter or Underwriters (if any) of his, her or its
intention to withdraw from such Piggy-back Registration prior to the effectiveness of the Registration Statement filed with the Commission
with respect to such Piggy-back Registration. The Company (in its sole discretion or as the result of a request for withdrawal by persons
pursuant to separate written contractual obligations) may postpone or withdraw the filing or effectiveness of a Piggy-back Registration.
Notwithstanding anything to the contrary in this Agreement, the Company shall be responsible for the Registration Expenses incurred in
connection with the Piggy-back Registration prior to its withdrawal under this subsection 2.2.3.

 

2.2.4       Unlimited Piggy-back Registration Rights. For purposes of clarity, any Registration effected pursuant to Section
2.2 hereof shall not be counted as a Registration pursuant to a Shelf Underwriting or Demand Registration effected under Section
2.1 hereof.

 

    10 

     

    

 

2.3          Restrictions on Registration Rights. The Company shall not be obligated to effect any Shelf Underwriting or Demand
Registration within 90 days after the effective date of a previous Shelf Underwriting or Demand Registration or a previous Piggy-back
Registration in which holders of Registrable Securities were permitted to register 75% of the Registrable Securities requested to be
included therein, if any. If in the good faith judgment of the Board, Registration would be detrimental to the Company and the Board
concludes as a result that it is essential to defer the filing of such Registration Statement or the undertaking of such Underwritten
Offering at such time, then in each case the Company shall furnish to such Holders a certificate signed by the Chairman of the Board
stating that in the good faith judgment of the Board it would be detrimental to the Company for such Registration Statement to be filed
or to undertake such Underwritten Offering in the near future and that it is therefore essential to defer the filing of such Registration
Statement or undertaking of such Underwritten Offering, then in such event, the Company shall have the right to defer its obligation
for up to 120 days; provided, however, that the Company shall not defer its obligation in this manner more than twice in
any period of twelve consecutive months.

 

2.4          Lock-Up.
Notwithstanding anything to the contrary in this Agreement, the Company shall not be obligated to effect any Shelf Underwriting, Demand
Registration or Piggy-back Registration of any Registrable Securities if the Transfer (as defined in the Lock-Up Agreement) of such Registrable
Securities is prohibited by the Lock-Up Agreement, subject to any waiver or release set forth therein.

 

2.5          Synthetic Secondary Transactions. The Company may, in its sole discretion, fulfill its obligations to effect a Shelf
Underwriting or Demand Registration under Section 2.1 and any Piggy-Back Registration under Section 2.2 for any Holder  by selling newly issued shares of Common Stock, the proceeds of which will
be used to purchase a number of such Holder’s Registrable Securities (or redeem such number of Class B Units held by the Holder
that are exchangeable into such Registrable Securities) at the closing of the offering at a price per share equal to the price per share
of Common Stock received by the Company (net of all underwriting discounts and commissions) in such offering and to pay related offering
expenses, except for any Registration Expenses payable by the
Company pursuant to this Agreement (such sale, a “Synthetic Secondary Transaction”). If the Company elects to conduct a Synthetic Secondary
Transaction with respect to a Holder’s Registrable Securities, such Holder shall execute and deliver a purchase agreement and other
documents and instruments in such form and substance as is reasonably requested by the Company. Notwithstanding anything herein to the
contrary, a Synthetic Secondary Transaction may be conducted in combination with sales directly by the Holder pursuant to its rights hereunder.

 

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Article III

COMPANY PROCEDURES

 

3.1          General
Procedures. If at any time on or after the date hereof the Company is required to effect the Registration of Registrable Securities,
the Company shall use its reasonable best efforts to effect such Registration to permit the sale of such Registrable Securities in accordance
with the intended plan of distribution thereof, and pursuant thereto the Company shall:

 

3.1.1        prepare
and file with the Commission a Registration Statement with respect to such Registrable Securities and use its reasonable best
efforts to cause such Registration Statement to become effective and remain effective until all Registrable Securities covered by
such Registration Statement have been sold;

 

3.1.2       
prepare and file with the Commission such amendments and post-effective amendments to the Registration Statement, and such
supplements to the Prospectus, as may be reasonably requested by any Holder or any Underwriter of Registrable Securities or as may be
required by the rules, regulations or instructions applicable to the registration form used by the Company or by the Securities Act or
rules and regulations thereunder to keep the Registration Statement effective until all Registrable Securities covered by such Registration
Statement are sold in accordance with the intended plan of distribution set forth in such Registration Statement or supplement to the
Prospectus and either (i) any Underwriter overallotment option has terminated by its terms or (ii) the Underwriters have advised the Company
that they will not exercise such option or any remaining portion thereof;

 

3.1.3       
furnish without charge to the Underwriters, if any, and each Holder of Registrable Securities included in such Registration,
or such Holders’ legal counsel, copies of the Prospectus included in such Registration Statement (including each preliminary Prospectus),
and each amendment and supplement thereto (in each case including all exhibits thereto and documents incorporated by reference therein),
and such other documents as the Underwriters and each Holder of Registrable Securities included in such Registration or the legal counsel
for any such Holders may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Holders;

 

3.1.4       
prior to any public offering of Registrable Securities, use its best efforts to (i) register or qualify the Registrable Securities
covered by the Registration Statement under such securities or “blue sky” laws of such jurisdictions in the United States
as any Holder of Registrable Securities included in such Registration Statement (in light of their intended plan of distribution) may
reasonably request and (ii) take such action necessary to cause such Registrable Securities covered by the Registration Statement to be
registered with or approved by such other governmental authorities as may be necessary by virtue of the business and operations of the
Company and do any and all other acts and things that may be reasonably necessary or advisable to enable the Holders of Registrable Securities
included in such Registration Statement to consummate the disposition of such Registrable Securities in such jurisdictions; provided,
however, that the Company shall not be required to qualify generally to do business in any jurisdiction where it would not otherwise
be required to qualify or take any action to which it would be subject to general service of process or taxation in any such jurisdiction
where it is not then otherwise so subject;

 

3.1.5       
use commercially reasonable efforts to cause all such Registrable Securities to be listed on the primary securities exchange
or automated quotation system on which similar securities issued by the Company are then listed;

 

3.1.6       
provide a transfer agent or warrant agent, as applicable, and registrar for all such Registrable Securities no later than the
effective date of such Registration Statement;

 

3.1.7        advise
each seller of such Registrable Securities, promptly after it shall receive notice or obtain knowledge thereof, of the issuance of
any stop order by the Commission suspending the effectiveness of such Registration Statement or the initiation or threatening of any
proceeding for such purpose and promptly use its commercially reasonable best efforts to prevent the issuance of any stop order or
to obtain its withdrawal if such stop order should be issued;

 

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3.1.8       
at least five (5) days prior to the filing of any Registration Statement or Prospectus or any amendment or supplement to such
Registration Statement or Prospectus (or promptly upon filing, with respect to any document that is to be incorporated by reference into
such Registration Statement or Prospectus), furnish a copy thereof to each seller of such Registrable Securities and its counsel, including,
without limitation, providing copies promptly upon receipt of any comment letters received with respect to any such Registration Statement
or Prospectus. The Company shall not include the name of any Holder or any information regarding any Holder in any Registration Statement
or Prospectus, any amendment or supplement to such Registration Statement or Prospectus, any document that is to be incorporated by reference
into such Registration Statement or Prospectus, or any response to any comment letter, without the prior written consent of such Holder
and providing each such Holder or its counsel a reasonable amount of time to review and comment on such applicable document, which comments
the Company shall include unless contrary to applicable law or the Company reasonably expects that so doing would cause the Prospectus
to contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading;

 

3.1.9       
in the event of an Underwritten Offering, obtain for delivery to the Company and the managing underwriter or underwriters,
with copies to the Holders included in such Registration or sale, a comfort letter from the Company’s independent certified public
accountants or independent auditors (and, if necessary, any other independent certified public accountants or independent auditors of
any subsidiary of the Company or any business acquired by the Company for which financial statements and financial data are, or are required
to be, included in the Registration Statement) in customary form and covering such matters of the type customarily covered by comfort
letters as the managing underwriter or underwriters reasonably request, dated the date of execution of the underwriting agreement and
brought down to the closing under the underwriting agreement;

 

3.1.10   
in the event of an Underwritten Offering, permit the participating Holders to rely on any opinion(s) of counsel representing
the Company for the purposes of such Registration issued to the managing Underwriter of such offering covering legal matters with respect
to the Registration;

 

3.1.11   
in the event of any Underwritten Offering, enter into and perform its obligations under an underwriting agreement, in usual
and customary form, with the managing Underwriter of such offering;

 

3.1.12   
furnish to the underwriters, if any, and to the Holders of the Registrable Securities covered by such Registration Statement,
copies of all documents prepared to be filed, which documents shall be subject to the review of such underwriters and such Holders and
their respective counsel, (y) subject to applicable law, make such changes in such documents concerning the Holders prior to the filing
thereof as such Holders, or their counsel, may reasonably request;

 

    13 

     

    

 

3.1.13   
 make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at
least twelve (12) months beginning with the first day of the Company’s first full calendar quarter after the effective date of the
Registration Statement which satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder, and which requirement
will be deemed to be satisfied if the Company timely files complete and accurate information on Forms 10-Q, 10-K and 8-K under the Exchange
Act and otherwise complies with Rule 158 under the Securities Act;

 

3.1.14   
use its reasonable efforts to make available senior executives of the Company to participate in customary “road show”
presentations that may be reasonably requested by the Underwriter thereof; and

 

3.1.15   
otherwise, in good faith, cooperate reasonably with, and take such customary actions as may reasonably be requested by the
Holders, in connection with such Registration.

 

3.2          Registration Expenses. The Registration Expenses of all Registrations shall be borne by the Company. It is acknowledged
by the Holders that the Holders shall bear all incremental selling expenses relating to the sale of Registrable Securities, such as Underwriters’
commissions and discounts, brokerage fees, Underwriter marketing costs and fees, applicable transfer taxes and expenses of legal counsel
representing the Holders in excess or in addition to the legal fees and expenses included as Registration Expenses.

 

3.3          Requirements
for Registration; Participation in Underwritten Offerings.

 

3.3.1       
The Company may require each participating Holder promptly to furnish in writing to the Company such information regarding
the distribution of the Registrable Securities as the Company may from time to time reasonably request and such other information as may
be legally required or the Company may deem reasonably advisable in connection with such Registration and shall not have any obligation
to include a Holder on any Registration Statement if such information is not promptly provided.

 

3.3.2       
The Company shall have the right to select an Underwriter or Underwriters in connection with any Underwritten Offering. No
person may participate in any Underwritten Offering for equity securities of the Company pursuant to a Registration initiated by the Company
hereunder unless such person (i) agrees to sell such person’s securities on the basis provided in any underwriting arrangements
approved by the Company and (ii) completes and executes all customary questionnaires, powers of attorney, indemnities, lock-up agreements,
underwriting agreements and other customary documents as may be reasonably required under the terms of such underwriting arrangements.

 

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3.4          Suspension
of Sales; Adverse Disclosure. Upon receipt of written notice from the Company that a Registration Statement or Prospectus
contains a Misstatement, each of the Holders shall forthwith discontinue disposition of Registrable Securities until he, she or it
is advised in writing by the Company that the use of the Prospectus may be resumed and he, she or it has received copies of a
supplemented or amended Prospectus correcting the Misstatement (it being understood that the Company hereby covenants to prepare and
file such supplement or amendment as soon as reasonably practicable after the time of such notice) and, if so directed by the
Company, each Holder shall deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then
in such Holder’s possession, of the Prospectus covering such Registrable Securities at the time of receipt of such notice. If
the continued use of a Registration Statement in respect of any Registration at any time would require the Company to make an
Adverse Disclosure, or would require the inclusion in such Registration Statement of (i) financial statements that are unavailable
to the Company for reasons beyond the Company’s control, (ii) audited financial statements as of a date other than the
Company’s fiscal year end (unless the Holders requesting Registration agree to pay the reasonable expenses of this audit), or
(iii) pro forma financial statements that are required to be included in a registration statement, the Company may, upon giving
prompt written notice of such action to the Holders, delay the filing or initial effectiveness of, or suspend the use of, such
Registration Statement for no more than 90 days per delay or suspension or more than 120 total calendar days, in each case during
any twelve-month period. In the event the Company exercises its rights under the preceding sentence, the Holders agree to suspend,
immediately upon their receipt of the notice referred to above, their use of the Prospectus relating to any Registration in
connection with any sale or offer to sell Registrable Securities. The Company shall immediately notify the Holders of the expiration
of any period during which it exercised its rights under this Section 3.4.

 

3.5          Reporting
Obligations. As long as any Holder shall own Registrable Securities, the Company, at all times while it shall be reporting under
the Exchange Act, covenants to use reasonable best efforts to file timely (or obtain extensions in respect thereof and file within the
applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to Sections 13(a) or 15(d) of
the Exchange Act and to promptly upon request by a Holder furnish such Holder with true and complete copies of such filings. The Company
further covenants that it shall take such further action as any Holder may reasonably request, all to the extent required from time to
time to enable such Holder to remove restrictive legends from shares that may be transferred without such restrictions and to sell shares
of Common Stock held by such Holder without registration under the Securities Act within the limitation of the exemptions provided by
Rule 144 promulgated under the Securities Act, including providing any reasonably requested legal opinions. Upon the request of any Holder,
the Company shall deliver to such Holder a written certification of a duly authorized officer as to whether it has complied with such
requirements.

 

3.6          Additional Shares. The Company, at its option, may register, under any Registration Statement and any filings under
any state securities laws filed pursuant to this Agreement, any number of unissued, treasury or other shares of Common Stock to be sold
by the Company or any of its subsidiaries or any shares of Common Stock or other securities of the Company owned by any other security
holder or security holders of the Company.

 

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Article IV

INDEMNIFICATION AND CONTRIBUTION

 

4.1          Indemnification.

 

4.1.1        The
Company agrees to indemnify, to the extent permitted by law, each Holder of Registrable Securities, its officers and directors and
each person who controls such Holder (within the meaning of the Securities Act) against all losses, claims, damages, liabilities and
expenses (including reasonable and documented attorneys’ fees) caused by any untrue or alleged untrue statement of material
fact contained in any Registration Statement, Prospectus or preliminary Prospectus or any amendment thereof or supplement thereto or
any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not
misleading, except insofar as the same are caused by or contained in any information furnished in writing to the Company by or on
behalf of such Holder expressly for use therein.

 

4.1.2       
In connection with any Registration Statement in which a Holder of Registrable Securities is participating (including any Synthetic
Secondary Transaction effected with respect to such Holder’s Registrable Securities), such Holder shall furnish to the Company in
writing such information and affidavits as the Company reasonably requests for use in connection with any such Registration Statement
or Prospectus, in conformity therewith and, to the extent permitted by law, shall indemnify the Company, its directors and officers and
agents and each person who controls the Company (within the meaning of the Securities Act) against any losses, claims, damages, liabilities
and expenses (including, without limitation, reasonable and documented attorneys’ fees) resulting from any untrue or alleged untrue
statement of material fact contained in the Registration Statement, Prospectus or preliminary Prospectus or any amendment thereof or supplement
thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein
not misleading, but only to the extent that such untrue or alleged untrue statement or omission is contained in any information or affidavit
so furnished in writing by or on behalf of such Holder expressly for use therein; provided, however, that the obligation
to indemnify shall be several, not joint and several, among such Holders of Registrable Securities, and the liability of each such Holder
of Registrable Securities shall be in proportion to and limited to the net proceeds received by such Holder from the sale of Registrable
Securities pursuant to such Registration Statement. The Holders of Registrable Securities shall indemnify the Underwriters, their officers,
directors and each person who controls such Underwriters (within the meaning of the Securities Act) to the same extent as provided in
the foregoing with respect to indemnification of the Company.

 

4.1.3        Any
person entitled to indemnification herein shall (i) give prompt written notice to the indemnifying party of any claim with respect
to which it seeks indemnification (provided that the failure to give prompt notice shall not impair any person’s right to
indemnification hereunder to the extent such failure has not materially prejudiced the indemnifying party) and (ii) unless in such
indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist
with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory
to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any liability for any
settlement made by the indemnified party without its consent. An indemnifying party who is not entitled to, or elects not to, assume
the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel (plus local counsel) for all
parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified
party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such
claim. No indemnifying party shall, without the consent of the indemnified party, consent to the entry of any judgment or enter into
any settlement which cannot be settled in all respects by the payment of money (and such money is so paid by the indemnifying party
pursuant to the terms of such settlement) or which settlement does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation.

 

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4.1.4       
The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation
made by or on behalf of the indemnified party or any officer, director or controlling person of such indemnified party and shall survive
the transfer of securities. The Company and each Holder of Registrable Securities participating in an offering also agrees to make such
provisions as are reasonably requested by any indemnified party for contribution to such party in the event the Company’s or such
Holder’s indemnification is unavailable for any reason.

 

4.1.5       
If the indemnification provided under Section 4.1 hereof from the indemnifying party is unavailable or insufficient
to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities and expenses referred to herein, then the
indemnifying party, in lieu of indemnifying the indemnified party, shall contribute to the amount paid or payable by the indemnified party
as a result of such losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault
of the indemnifying party and the indemnified party, as well as any other relevant equitable considerations. The relative fault of the
indemnifying party and indemnified party shall be determined by reference to, among other things, whether any action in question, including
any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, was made by, or relates
to information supplied by, such indemnifying party or indemnified party, and the indemnifying party’s and indemnified party’s
relative intent, knowledge, access to information and opportunity to correct or prevent such action; provided, however,
that the liability of any Holder under this subsection 4.1.5 shall be limited to the amount of the net proceeds received by such
Holder in such offering giving rise to such liability. The amount paid or payable by a party as a result of the losses or other liabilities
referred to above shall be deemed to include, subject to the limitations set forth in subsections 4.1.1, 4.1.2 and 4.1.3
above, any legal or other fees, charges or expenses reasonably incurred by such party in connection with any investigation or proceeding.
The parties hereto agree that it would not be just and equitable if contribution pursuant to this subsection 4.1.5 were determined
by pro rata allocation or by any other method of allocation, which does not take account of the equitable considerations referred to in
this subsection 4.1.5. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution pursuant to this subsection 4.1.5 from any person who was not guilty of such fraudulent
misrepresentation.

 

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Article V

MISCELLANEOUS

 

5.1          Notices.
Any notice or communication under this Agreement must be in writing and given by (i) deposit in the United States mail, addressed to
the party to be notified, postage prepaid and registered or certified with return receipt requested, (ii) delivery in person or by
courier service providing evidence of delivery, or (iii) transmission by hand delivery, electronic mail or facsimile. Each notice or
communication that is mailed, delivered, or transmitted in the manner described above shall be deemed sufficiently given, served,
sent, and received, in the case of mailed notices, on the third business day following the date on which it is mailed and, in the
case of notices delivered by courier service, hand delivery, electronic mail or facsimile, at such time as it is delivered to the
addressee (with the delivery receipt of the intended recipient or the affidavit of messenger) or at such time as delivery is refused
by the addressee upon presentation. Any notice or communication under this Agreement must be addressed to

 

	the Company at:
	[Conform to other documents]
	 
	with a copy to:
	 
	Morgan, Lewis & Bockius LLP
 1701 Market St.
 Philadelphia, PA 19103
 Attention: Andrew R. Mariniello
	Jeffrey A. Letalien
	 
	Telephone: (215) 963-5000
	 
	Email:  andrew.mariniello@morganlewis.com
	 Jeffrey.letalien@morganlewis.com

 

 

and to the Holders, at such Holder’s
address referenced in Schedule A.

 

Any party may change its address for notice at
any time and from time to time by written notice to the other parties hereto, and such change of address shall become effective thirty
(30) days after delivery of such notice as provided in this Section 5.1.

 

5.2          Assignment;
No Third Party Beneficiaries.

 

5.2.1       
This Agreement and the rights, duties and obligations hereunder may not be assigned or delegated, in whole or in part, by operation
of law or otherwise, by any party, except for any assignment or delegation (i) by a Holder to a Permitted Transferee who agrees to become
bound by the transfer restrictions, if any, set forth in this Agreement and the Lock-Up Agreement, or (ii) with the prior written consent
of the Company, with respect to an assignment by a Holder, or the Requisite Holders, with respect to an assignment by the Company.

 

5.2.2       
This Agreement and the provisions hereof shall be binding upon and shall inure to the benefit of each of the Holders, the permitted
assigns and its successors and the permitted assigns of the Holders.

 

5.2.3       
This Agreement shall not confer any rights or benefits on any persons that are not parties hereto, other than as expressly
set forth in this Agreement and Section 5.2 hereof.

 

5.2.4        No
assignment by any party hereto of such party’s rights, duties and obligations hereunder shall be binding upon or obligate the
Company unless and until the Company shall have received (i) written notice of such assignment or delegation from the assignor and
assignee and (ii) the written agreement of the assignee, by execution of a Joinder Agreement, to be bound by the terms and
provisions of this Agreement. Any transfer, assignment or delegation made other than as provided in this Section 5.2 shall be
null and void.

 

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5.3          Counterparts.
This Agreement may be executed in multiple counterparts (including facsimile or PDF counterparts), each of which shall be deemed an original,
and all of which together shall constitute the same instrument, but only one of which need be produced.

 

5.4          Governing Law; Venue. THE PARTIES EXPRESSLY AGREE THAT THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS
OF THE STATE OF DELAWARE, WITHOUT REGARD TO THE CONFLICT OF LAW PROVISIONS OF SUCH JURISDICTION. Any legal suit, action or proceeding
arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts located in
the State of Delaware or the Delaware Court of Chancery, and each party irrevocably submits to the exclusive jurisdiction of such courts
in any such suit, action or proceeding.

 

5.5          WAIVER
OF JURY TRIAL. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE
COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW ANY AND ALL RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY OR TO THE ACTIONS OF THE PARTIES HERETO IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER
VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 5.5.

 

5.6          Amendments
and Modifications. Upon the written consent of the Company and the Requisite Holders, compliance with any of the provisions,
covenants and conditions set forth in this Agreement may be waived, or any of such provisions, covenants or conditions may be
amended or modified; provided, however, that notwithstanding the foregoing, (i) any amendment hereto or waiver hereof
that adversely affects one Holder or a group of Holders, solely in its or their capacity as a holder of the shares of capital stock
of the Company, in a manner that is materially different from the other Holders (in such capacity) shall require the consent of each
Holder so affected and (ii) this Agreement may be amended and restated or amended without consent of the Holders solely to allow for
the addition of new Holders and the granting to such new Holders rights hereunder and any additional rights after the date hereof
that does not adversely affect or is not inconsistent with the existing rights and priorities of the Holders (other than by virtue
of adding a Person with additional similar rights and Common Stock). Notwithstanding the foregoing, a consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the rights of Holders of Registrable Securities whose
securities are being sold pursuant to a Shelf Registration Statement and that does not directly or indirectly affect the rights of
other Holders of Registrable Securities may be given by each Holder of the Registrable Securities being sold by such Holders
pursuant to such Shelf Registration Statement; provided, however, that the provisions of this sentence may not be
amended, modified, or waived except in accordance with the provisions of the immediately preceding sentence. Each Holder of
Registrable Securities outstanding at the time of any such amendment, modification or waiver or thereafter shall be bound by any
such amendment, modification or waiver effected pursuant to this Section 5.6, whether or not any notice, writing or marking
indicating such amendment, modification or waiver appears on the Registrable Securities or is delivered to such Holder. No course of
dealing between any Holder or the Company and any other party hereto or any failure or delay on the part of a Holder or the Company
in exercising any rights or remedies under this Agreement shall operate as a waiver of any rights or remedies of any Holder or the
Company. No single or partial exercise of any rights or remedies under this Agreement by a party shall operate as a waiver or
preclude the exercise of any other rights or remedies hereunder or thereunder by such party.

 

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5.7          Other Registration Rights. The Company represents and warrants that no person, other than a Holder of Registrable Securities,
has any right to require the Company to register any securities of the Company for sale or to include such securities of the Company in
any Registration filed by the Company for the sale of securities for its own account or for the account of any other person.

 

5.8          Termination.
This Agreement shall terminate upon the date as of which (A) all of the Registrable Securities have either been sold pursuant to a Registration
Statement or cease to be Registrable Securities (but in no event prior to the applicable period referred to in Section 4(a)(3) of the
Securities Act and Rule 174 thereunder) or (B) the Holders of all Registrable Securities are permitted to sell the Registrable Securities
under Rule 144 (or any similar provision) under the Securities Act without limitation on the amount of securities sold or the manner
of sale. The provisions of Section 3.5 and Article IV shall survive any termination.

 

5.9          Severability.
Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity
or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction.

 

5.10        Entire
Agreement. This Agreement is intended by the parties as a final expression of their agreement and is intended to be a complete and
exclusive statement of the agreement and understanding of the Parties in respect of the subject matter contained herein and the registration
rights granted by the Company with respect to the Registrable Securities. There are no restrictions, promises, warranties or undertakings,
other than those set forth or referred to herein, with respect to the registration rights granted by the Company with respect to the
Registrable Securities. This Agreement supersedes all prior agreements and undertakings among the Parties with respect to such registration
rights. No party shall have any rights, duties or obligations other than those specifically set forth in this Agreement.

 

[Signature
Pages Follow]

 

    20 

     

    

 

IN WITNESS WHEREOF,
the undersigned have caused this Agreement to be executed as of the date first written above.

 

	 	COMPANY:
	 	 	 
	 	HEALTHCARE ROYALTY, INC.
	 	a Delaware corporation
	 	 
	 	By:	                 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	HOLDERS:
	 	 	 
	 	HCRX FEEDER FUND, L.P.
	 	a Delaware limited partnership
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Registration Rights Agreement]

 

     

     

    

 

Schedule A

 

	
    Holder
	 	
    Address

	 	 	 

 

     

     

    

 

Annex
A

FORM
OF JOINDER AGREEMENT

 

This JOINDER AGREEMENT (“Joinder”),
dated [________], is executed by [________] (the “Transferee”) and by [________] (the “Transferor”)
pursuant to the terms of the Registration Rights Agreement, dated as of [__], 20[__] (the “Registration Rights Agreement”),
by and among Healthcare Royalty, Inc. (the “Company”), HCRX Feeder Fund, L.P. and any Holders party thereto.
Capitalized terms used but not otherwise defined herein have the meanings set forth in the Registration Rights Agreement.

 

		1.	Acknowledgment. Transferee and Transferor each acknowledge that Transferee is acquiring Registrable
Securities of the Company from Transferor, upon the terms and subject to the conditions of the Registration Rights Agreement.

 

		2.	Assignment. Transferor hereby assigns its rights under the Registration Rights Agreement to the
Transferee.

 

Transferor and Transferee each confirm
that Transferee is a Permitted Transferee and that Transferor and Transferee have each provided notice of this assignment to the Company
pursuant to Section 5.2.4 of the Registration Rights Agreement.

 

		3.	Agreement. Transferee agrees that it shall be fully bound by and subject to the terms of this Joinder
and the Registration Rights Agreement as a Holder thereunder.

 

		4.	Notice. Any notice required or permitted by the Agreement shall be given to Transferee at the address
listed beside Transferee’s signature below.

 

[SIGNATURE PAGE FOLLOWS]

 

     

     

    

 

	 	TRANSFEROR
	 	 
	 	[	 	]
	 	 
	 	By:	                
	 	Name:
	 	Title:
	 	 
	 	TRANSFEREE
	 	 
	 	[	 	]
	 	 
	 	By:	              
	 	Name:
	 	Title:
	 	 
	 	Address for Notices:
	 	 
	 	 
	 	 

 

[Signature Page to Joinder
Agreement to Registration Rights Agreement]

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