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THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT UNDER ANY CIRCUMSTANCES BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY OTHER APPLICABLE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE SECURITIES LAWS.

COMMON STOCK PURCHASE WARRANT

HORIZON GLOBAL CORPORATION
    Issue Date: February 2, 2021 (the “Issue Date”)

THIS COMMON STOCK PURCHASE WARRANT (this “Warrant”) certifies that, for value received, APSC Holdco II, L.P. or its permitted assigns (the “Holder”), is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the Issue Date and on or prior to the close of business on February 2, 2026 (the “Termination Date”), but not thereafter, to purchase from Horizon Global Corporation, a Delaware corporation (the “Company”), up to 3,905,486 shares (subject to the limitations contained herein, including Section 2(d), and subject to adjustment hereunder, the “Warrant Shares”) of the Company’s common stock, par value $0.01 per share (the “Common Stock”).  The purchase price of one Warrant Share shall be equal to the Exercise Price, as defined in Section 2(b).  
As used in this Warrant, (a) an “Affiliate” means, with respect to any Person, any other Person who, directly or indirectly, controls, is controlled by, or under common control with such Person; for purposes of this definition, the term “control” (including the correlative meanings of the terms “controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of such Person, whether through the ownership of voting securities or by contract or otherwise, (b) a “Business Day” means any day excluding Saturday, Sunday or any day which is a legal holiday under the laws of the State of New York or a day on which banking institutions are authorized or required by law or other governmental action to close, (c) “Capital Stock” means, with respect to any Person, (i) any capital stock of such Person, (ii) any security convertible, with or without consideration, into any capital stock of such Person, (iii) any other shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) the capital stock of such Person, (iv) any other equity interest in, or right to vote generally in elections of directors or the comparable governing body of, such Person, and (v) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, (d) “Fair Market Value” of the Common Stock or any other Capital Stock on any date of determination means (i) if the Common Stock is listed for trading on a national securities exchange, the volume-weighted average closing sale price per share of the Common Stock for the thirty (30) consecutive trading days immediately prior to such date of determination, as reported by the national securities exchange, (ii) if the Common Stock is not listed on a national securities exchange but is listed or quoted in the over-the-counter market, the average last quoted sale price for the Common Stock (or, if no sale price is reported, the average of the high bid and low asked price for such date) for the thirty (30) consecutive trading days immediately prior to such date of determination, in the over-the-counter market as reported by OTC Markets Group Inc. or other similar organization, or (iii) in all other cases, (A) as agreed upon in good faith by the Holder and the Company or (B) solely if an agreement cannot be reached pursuant to clause 

(A), as determined by an independent accounting, appraisal or investment banking firm or consultant of nationally recognized standing that is retained at the sole cost and expense of the Company and the identity of which is reasonably acceptable to the Holder and the Company, (e) a “Person” means any individual, partnership, corporation, limited liability company, association, joint stock company, trust, joint venture, unincorporated organization or governmental entity (or any department, agency, or political subdivision thereof), and (f) “Term Loan Credit Agreement” means the Term Loan Credit Agreement, dated as of the date hereof and as amended and supplemented from time to time, by and among the Company, the lenders from time to time party thereto and Atlantic Park Strategic Capital Fund, L.P., as administrative agent and collateral agent.
Section 1.    Vesting; Exercisability.  
The Holder’s right to exercise this Warrant with respect to the Warrant Shares is subject to vesting and limitations on exercisability as follows: 
(a)    This Warrant and the Holder’s rights hereunder with respect to the Warrant Shares (subject to adjustment as set forth in this Warrant, including, without limitation, Section 3) will vest and become exercisable on the Issue Date.
(b)    Subject to any adjustment required by Section 3, notwithstanding anything to the contrary in this Warrant, in no event shall this Warrant be exercisable for more than 3,905,486 Warrant Shares.
Section 2.    Exercise.
    (a)    Subject to Section 1, exercise of the purchase rights represented by this Warrant with respect to Warrant Shares may be made, in whole or in part, at any time or times on or after the Issue Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly completed and executed copy of a notice of exercise substantially in the form attached hereto as Exhibit A (a “Notice of Exercise”).  The date on which such delivery shall have taken place (or be deemed to have taken place) shall be referred to herein as the “Exercise Date”.  Within two (2) trading days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise, at its option, (i) by wire transfer or cashier’s check drawn on a United States bank, or (ii) by cashless exercise as set forth in Section 2(e); provided, however, in the event that the Holder has not delivered such aggregate Exercise Price within two (2) trading days following the date of such exercise as aforesaid, the Company shall not be obligated to deliver such Warrant Shares hereunder until such payment is made. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) 
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Business Days after the relevant event shall have occurred.  Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.  The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases.  The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice.  The Holder, by acceptance of this Warrant, acknowledges and agrees that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.
(b)    Exercise Price.  The “Exercise Price” per Warrant Share shall be $9.00, subject to any adjustment required by Section 3. 
(c)    Mechanics of Exercise. 
(i)    Delivery of Warrant Shares Upon Exercise.  Upon each exercise of this Warrant, the Company shall promptly, but in no event later than two (2) trading days after delivery of the applicable Notice of Exercise (subject to delivery by the Holder to the Company of the aggregate Exercise Price payable pursuant to Section 2(b) or pursuant to the cashless exercise provisions of Section 2(e)), instruct the transfer agent for the Common Stock (the “Transfer Agent”) to record the issuance of the Warrant Shares purchased hereunder to the Holder in book-entry form pursuant to the Transfer Agent’s regular procedures.  The Warrant Shares shall be deemed to have been issued, and the Holder shall be deemed to have become a holder of record of such shares for all purposes, as of the Exercise Date with payment to the Company of the Exercise Price having been paid.  In connection with the issuance of any Warrant Shares, if requested by the Holder, the Company shall, after receipt of any documentation reasonably requested by the Company and/or the Transfer Agent in connection with the removal of the restrictive legend section forth in Section 4(a), direct that the delivery of Warrant Shares upon exercise of this Warrant shall be made promptly, but in no event later than two (2) trading days after the delivery of such requested documentation, by the Transfer Agent to the Holder through the facilities of The Depository Trust Company to the extent not prohibited by applicable securities laws or the policies and procedures of The Depository Trust Company. The Company will maintain in the United States an office or agency, which may be an office of the Company, where the Warrant may be surrendered for registration of transfer or exchange or for presentation for exercise. 
(ii)    Rescission Rights.  If the Company fails to issue or cause to have issued the Warrant Shares pursuant to Section 2(c)(i) within two (2) trading days after delivery of the applicable Notice of Exercise, then the Holder will have the right to rescind such exercise.  The right of rescission of the Holder under this Section 2(c)(ii) is subject to delivery by the Holder of the aggregate Exercise Price payable pursuant to Section 2(b) or Section 2(e).
(iii)    No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a share 
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which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.
(iv)    Charges, Taxes and Expenses.  Issuance of Warrant Shares shall be made without charge to the Holder for any issue, transfer, stamp or other tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder.  Without limiting the generality of the foregoing, the Company shall pay all fees required for same-day processing of any Notice of Exercise.
(v)    Closing of Books.  The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.
(d)    Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would, when aggregated with all other shares of Common Stock beneficially owned by such Holder at such time, beneficially own shares of Common Stock, in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, non-exercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or non-converted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 2(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(d) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination and shall have no liability for exercises of the Warrant that are not in compliance with the Beneficial Ownership 
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Limitation. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder and the Company shall have no obligation to verify or confirm the accuracy of such determination and shall have no liability for exercises of the Warrant that are not in compliance with the Beneficial Ownership Limitation. For purposes of this Section 2(d), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of the Holder, the Company shall within two (2) trading days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. As used in this Warrant, “Beneficial Ownership Limitation” means 9.9% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The provisions of this Section 2(d) shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. 
(e)    Cashless Exercise. In lieu of paying the aggregate Exercise Price for the Warrant Shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank pursuant to Section 2(a), the Holder may elect to exercise the purchase rights represented by this Warrant by authorizing the Company to withhold and not issue to the Holder, in payment of the Exercise Price thereof, a number of such Warrant Shares equal to (x) the number of Warrant Shares for which the Warrant is being exercised, multiplied by (y) the Exercise Price, and divided by (z) the Fair Market Value on the Exercise Date (and such withheld Warrant Shares shall no longer be issuable under the Warrant, and the Holder shall not have any rights or be entitled to any payment with respect to such withheld Warrant Shares). 
Section 3.    Certain Adjustments.
    (a)    Stock Dividends, Subdivision, Combinations and Consolidations. If the Company, at any time while this Warrant is outstanding (in whole or in part): (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock (or other class of Capital Stock of the Company then issuable upon exercise of this Warrant) or any other equity or equity equivalent securities payable in shares of Common Stock (or such other class of Capital Stock), (ii) subdivides outstanding shares of Common Stock (or other class of Capital Stock of the Company then issuable upon exercise of this Warrant) into a larger number of shares or (iii) combines or consolidates (including, without limitation, by reverse stock split) outstanding shares of Common Stock (or other class of Capital Stock of the Company then issuable upon 
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exercise of this Warrant) into a smaller number of shares, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or consolidation.  If the Company, at any time while this Warrant is outstanding (in whole or in part) distributes rights on shares of its Common Stock (or other class of Capital Stock of the Company then issuable upon exercise of this Warrant) in connection with a shareholder rights plan, no adjustment shall be made pursuant to this Section 3 and any such rights shall accompany the Warrant Shares issued pursuant to this Warrant for so long as such shareholder rights plan remains in effect.
    (b)    Reclassifications, Reorganizations, Consolidations and Mergers.  In the event of (i) any capital reorganization of the Company, (ii) any reclassification or recapitalization of the stock of the Company (other than (x) a change in par value or from par value to no par value or from no par value to par value or (y) as a result of a stock dividend, subdivision, combination or consolidation of shares as to which Section 3(a) shall apply) or (iii) any consolidation or merger of the Company with or into another Person (where the Company is not the surviving corporation or where there is a change in or distribution with respect to the Common Stock or any other class of Capital Stock then issuable upon exercise of this Warrant), this Warrant shall, after such reorganization, reclassification, recapitalization, consolidation or merger, be exercisable for the kind and number of shares of stock or other securities or property (“Alternate Consideration”) of the Company or of the successor corporation resulting from such consolidation or surviving such merger, if any, to which the holder of the number of Warrant Shares underlying this Warrant (at the time of such reorganization, reclassification, recapitalization, consolidation or merger, and subject to the limitations set forth in Section 1 and Section 2 (other than Section 2(d)) would have been entitled upon such reorganization, reclassification, recapitalization, consolidation or merger.  In such event, the aggregate Exercise Price otherwise payable for the shares of Common Stock (or such other class of Capital Stock) issuable upon exercise of this Warrant shall be allocated among the Alternative Consideration receivable as a result of such reorganization, reclassification, recapitalization, consolidation, or merger in proportion to the respective fair market values of such Alternate Consideration (as agreed upon in good faith by the Holder and the Company).  If and to the extent that the holders of Common Stock (or such other class of Capital Stock) have the right to elect the kind or amount of consideration receivable upon consummation of such reorganization, reclassification, recapitalization, consolidation or merger, then the consideration that the Holder shall be entitled to receive upon exercise shall be specified by the Holder, which specification shall be made by the Holder by the later of (A) ten (10) Business Days after the Holder is provided with a final version of all material information concerning such choice as is provided to the holders of Common Stock (or such other class of Capital Stock), and (B) the last time at which the holders of Common Stock (or such other class of Capital Stock) are permitted to make their 
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specifications known to the Company; provided, however, that if the Holder fails to make any specification within such time period, the Holder’s choice shall be deemed to be whatever choice is made by a plurality of all holders of Common Stock (or such other class of Capital Stock) that are not affiliated with the Company (or, in the case of a consolidation or merger, any other party thereto) and affirmatively make an election (or of all such holders if none of them makes an election). From and after any such reorganization, reclassification, recapitalization, consolidation or merger, all references to “Warrant Shares” herein shall be deemed to refer to the Alternate Consideration to which the Holder is entitled pursuant to this Section 3(b).  The provisions of this clause shall similarly apply to successive reorganizations, reclassifications, recapitalizations, consolidations, or mergers.
    (c)    Below Market Issuances.  
        (i)    Deemed Issue of Common Stock.  Other than Excluded Issuances (as defined below), if the Company at any time after the issuance of the Warrants but prior to the Termination Date shall issue any warrants or other rights or options to subscribe for or purchase Common Stock or Convertible Securities (as defined below) (“Options”), or  any securities (directly or indirectly) convertible into or exchangeable for Common Stock, but excluding Options (“Convertible Securities”), or shall fix a record date for the determination of holders of shares of the Common Stock to receive any such Options or Convertible Securities, then the maximum number of shares of Common Stock (as set forth in the instrument relating thereto, assuming the satisfaction of any conditions to exercisability, convertibility or exchangeability, including payment of any conversion or exercise price, but without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be Additional Common Stock issued as of the time of such issue of Options or Convertible Securities or, in case such a record date shall have been fixed, as of 5:00 p.m. (New York City time) on such record date and the provisions hereof that are applicable to the issuance of Additional Common Stock shall apply thereto; provided, that Additional Common Stock shall not be deemed to have been issued unless the consideration per share (as determined in accordance with Section 3(d)(ii)) of such Additional Common Stock would be less than the Fair Market Value as of such issue date or record date; provided, further, that, in any such case in which Additional Common Stock is deemed to be issued, no further adjustments in the Exercise Price shall be made upon the subsequent issue of Convertible Securities or Common Stock upon the exercise of such Options or the conversion or exchange of such Convertible Securities.
        (ii)    If the terms of any Option or Convertible Security, the issuance of which resulted in an adjustment to the Exercise Price pursuant to the terms of this Section 3(c), are revised (either automatically, pursuant to the provisions contained therein, or as a result of an amendment to such terms) to provide for either any increase or decrease in (i) the number of shares of Common Stock issuable upon the exercise, conversion or exchange of any such Option or Convertible Security or (ii) the consideration payable to the Company upon such exercise, conversion or exchange, then, effective upon such increase or decrease becoming effective, the Exercise Price computed upon the original issue of such Option or Convertible Security (or upon 
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the occurrence of a record date with respect thereto) shall be readjusted to such Exercise Price as would have been obtained had such revised terms been in effect upon the original date of issuance of such Option or Convertible Security and calculated in accordance with this Section 3(c). 
        (iii)    If the terms of any Option or Convertible Security, the issuance of which did not result in an adjustment to the Exercise Price pursuant to the terms of this Section 3(c) (either because the consideration per Additional Common Stock subject thereto was equal to or greater than the then Fair Market Value, or because such Option or Convertible Security was issued before the date hereof), are revised on or after the date hereof (either automatically, pursuant to the provisions contained therein, or as a result of an amendment to such terms) to provide for either any increase or decrease in (i) the number of shares of Common Stock issuable upon the exercise, conversion or exchange of any such Option or Convertible Security or (ii) the consideration payable to the Company upon such exercise, conversion or exchange, then such Option or Convertible Security, as so amended, and the Additional Common Stock subject thereto shall be deemed to have been issued effective upon such increase or decrease becoming effective.
        (iv)    Upon the expiration or termination of any unexercised Option or unconverted or unexchanged Convertible Security which resulted (either upon its original issuance or upon a revision of its terms) in an adjustment to the Exercise Price pursuant to the terms of this Section 3(c), the Exercise Price shall be readjusted to such Exercise Price as would have been obtained had such Option or Convertible Security never been issued.
        (v)    Other than Excluded Issuances, in the event the Company shall at any time after the date hereof issue or sell additional Common Stock (“Additional Common Stock”), including Additional Common Stock deemed to be issued pursuant to Section 3(c)(i), for consideration per share of Common Stock less than the Fair Market Value and the Exercise Price (as of the date of such issuance or deemed issuance, as applicable, or the ex-date if applicable), then the Exercise Price shall be reduced, concurrently with such issue, to a price equal to the Exercise Price in effect immediately prior to such issue of Additional Common Stock multiplied by a fraction of which (A) the numerator shall be the number of shares of Common Stock outstanding immediately before such event, plus the number of shares of Common Stock which the aggregate consideration expected to be received by the Company (as agreed upon in good faith by the Holder and the Company) would purchase at the Fair Market Value and of which (B) the denominator shall be the number of shares of Common Stock outstanding immediately before such event, plus the number of such shares of Additional Common Stock issued in such transaction.  
        (vi)    Notwithstanding the foregoing, no adjustment to the Exercise Price will be made under this Section 3(c) in respect of the issuance of: (A) shares of Common Stock (including restricted stock) or Options or other equity awards to purchase Common Stock to directors, officers or employees of the Company in their capacity as such pursuant to a duly authorized Company equity incentive plan; (B) shares of Common Stock issued upon the conversion or exercise of any Options or Convertible Securities (other than Options or other 
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equity awards to purchase Common Stock issued pursuant to a duly authorized Company equity incentive plan covered by clause (A) above) issued and publicly disclosed by the Company prior to the date hereof; (C) shares of Common Stock or any Options or Convertible Securities (and shares of Common Stock issued upon exercise or conversion thereof) issued in connection with an acquisition, merger or other business combination or joint venture (other than a transaction subject to Section 3(a) or (b)) up to an aggregate amount not to exceed 7.5% of the total number of shares of Common Stock outstanding on the Issue Date; (D) shares of Common Stock up to an aggregate amount not to exceed 2.0% of the total number of shares of Common Stock outstanding on the Issue Date; (E) the Warrant Shares (including any warrants issued upon transfer of, or as replacements for, this Warrant); and (F) the issuance of securities in a transaction described in Section 3(a) or Section 3(b) (which issuance shall result in the adjustments set forth in such sections) (collectively, “Excluded Issuances”).
    (d)    For the purposes of Section 3(c), the consideration received by the Company for the issue of any Additional Common Stock shall be computed as follows:
        (i)    Cash and Property.  Such consideration shall:  (A) insofar as it consists of cash, be computed at the aggregate amount of cash received by the Company, excluding amounts paid or payable for accrued interest; (B) insofar as it consists of property other than cash, be computed at the fair market value thereof at the time of such issue, as determined reasonably in good faith by the Board of Directors, and (C) in the event Additional Common Stock is issued together with other interests or securities or other assets of the Company for consideration which covers both, be the proportion of such consideration so received, computed as provided in clauses (A) and (B) above, as determined in good faith by the Board of Directors.
        (ii)    Options and Convertible Securities.  The consideration per share received by the Company for Additional Common Stock deemed to have been issued pursuant to Section 3(c)(i), relating to Options and Convertible Securities, shall be determined by dividing: (A) the total amount, if any, received or receivable by the Company as consideration for the issue of such Options or Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Company upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities, by (B) the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities.
        (iii)    In the event the Company shall issue on more than one date Additional Common Stock that is a part of one transaction or a series of related transactions and that would result in an adjustment to the Exercise Price pursuant to the terms of Section 3(c), then, upon such final issuance, the Exercise Price shall be readjusted to give effect to all such issuances as if they occurred on the date of the first such issuance (and without additional giving effect to any adjustments as a result of any subsequent issuances within such period). 
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    (e)    Other Distributions.  During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, evidences of indebtedness of the Company or any other Person or any other property (including shares of Capital Stock, other securities or evidences of indebtedness of a subsidiary) or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) other than any dividend or distribution referred to in Section 3(a) or Section 3(b) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). To the extent that this Warrant has not been partially or completed exercised at the time of such Distribution, such portion of the Distribution shall be held in abeyance for the benefit of the Holder until the Holder has exercised this Warrant.
    (f)    Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.  For purposes of this Section 3, the number of shares of Common Stock (or such other Company security as is then issuable upon exercise of this Warrant) deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (or such other Company security) (excluding treasury shares, if any) issued and outstanding on such date. In the event of any dispute as to any calculation or determination under this Warrant, the Holder and the Company agree to enter into confidential, good faith negotiations to attempt to resolve the dispute. 
    (g)    Notice to Holder.  
        (i)    Adjustment to Terms of Warrant. Whenever any of the terms of this Warrant are adjusted pursuant to any provision of this Section 3 or any other applicable provision hereof, the Company shall promptly send to the Holder a notice signed by a duly authorized officer of the Company and setting forth (x) the Exercise Price, number of Warrant Shares and, if applicable, the kind and amount of Alternate Consideration purchasable hereunder after such adjustment and (y) the facts requiring such adjustment in reasonable detail. 
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        (ii)    Notice to Allow Exercise by Holder. If, during the period in which this Warrant is outstanding, (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Securities and Exchange Commission (the “SEC”) pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.  
Section 4.    Transfer of Warrant and Warrant Shares.
    (a)    Restrictive Legend.    The Warrant Shares (unless and until registered under the Securities Act of 1933, as amended (the “Securities Act”) or transferred pursuant to Rule 144 promulgated under the Securities Act, or any successor rule or regulation hereafter adopted by the SEC, as such rule may be amended from time to time (“Rule 144”)) will be stamped or imprinted with a legend in substantially the following form:
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT UNDER ANY CIRCUMSTANCES BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY 
    11

OTHER APPLICABLE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE SECURITIES LAWS.
    (b)    Transferability.  The Holder may not sell, assign, transfer, pledge or dispose of any portion of this Warrant without the prior written consent of the Company (such consent not to be unreasonably withheld, conditioned or delayed, and provided that such consent shall be deemed given unless the Company delivers written notice of disapproval to such Holder within five (5) Business Days after receipt of notice requesting such consent), provided, that the prior written consent of the Company shall not be required (i) for any transfer by the Holder to one or more of its Affiliates, (ii) for any transfer by the Holder to one or more of the holders of its equity interests or (iii) for so long as any Event of Default (as defined in the Term Loan Credit Agreement) has occurred and is continuing.  In connection with any permitted transfer of all or any portion of this Warrant, the Holder must provide an assignment form substantially in the form attached hereto as Exhibit B duly completed and executed by the Holder or any such subsequent Holder, as applicable, and the proposed transferee must consent in writing to be bound by the terms and conditions of this Warrant.  Any permitted transfer of all or any portion of this Warrant shall also be subject to the Securities Act and other applicable federal or state securities or blue sky laws. Upon any permitted transfer of this Warrant in full, the Holder shall be required to physically surrender this Warrant to the Company within three (3) trading days of the date the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.  This Warrant or any portion thereof shall not be sold, assigned, transferred, pledged or disposed of in violation of the Securities Act or federal or state securities laws. 
    (c)    Warrant Register.  The Company shall register this Warrant upon records to be maintained by the Company for that purpose (the “Warrant Register”) in the name of the record Holder hereof from time to time.  Absent manifest error or actual notice to the contrary, the Company may deem and treat the Holder of this Warrant so registered as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes.
Section 5.    Miscellaneous.
    (a)    No Rights as Stockholder Until Exercise.  Except as expressly set forth herein, this Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(c).
    (b)    Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon delivery by the Holder to the Company of (i) notice of the loss, theft, destruction or mutilation of this Warrant and (ii) in the case of loss, theft or destruction, an indemnity agreement in a form and amount reasonably satisfactory to the Company or, in the case of mutilation, surrender of the mutilated Warrant, the Company will make and deliver a new Warrant of like tenor dated as of the Issue Date.
    12

    (c)    Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.
    (d)    Authorized Shares.  The Company covenants that, during the period this Warrant is exercisable (in whole or in part), it will reserve (and will direct and instruct the Transfer Agent to reserve) from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.  The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant.  The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of any national securities exchange upon which the Common Stock is listed or traded.  The Company shall use commercially reasonable efforts to cause the Warrant Shares, immediately upon such exercise, to be listed on the New York Stock Exchange or the principal securities exchange on which shares of Common Stock or other securities constituting Warrant Shares are listed at the time of such exercise. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and full payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and non-assessable, not subject to any preemptive rights and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).
    (e)    Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of New York without giving effect to the principles of conflict of laws thereof.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.
    (f)    Nonwaiver.  No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies.
    (g)    Notices.  Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Term Loan Credit Agreement. 
    (h)    Limitation of Liability.  No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.
    13

    (i)    Successors and Assigns.  Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.
    (j)    Amendment.  This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.
    (k)    Severability.  Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.
    (l)    Headings.  The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.
    (m)    Tax Treatment.  
(i)    Unless otherwise required by applicable law, the Holder and the Company agree to treat any cashless exercise (if elected by the Holder pursuant to Section 2(e) hereof) as a “reorganization” within the meaning of Section 368(a)(1)(E) of the Internal Revenue Code of 1986, as amended.
(ii)    Notwithstanding any other provision of this Warrant, the Holder and the Company intend that, solely for U.S. federal income tax purposes (and applicable state, local and non-U.S. income tax purposes), the Term Loan (as defined in the Term Loan Credit Agreement) and this Warrant shall be treated collectively as an “investment unit” within the meaning of Treasury Regulations Section 1.1273-2(h) for U.S. federal income tax purposes (and applicable state, local and non-U.S. income tax purposes). The Holder and the Company agree the fair market value as of the date hereof of the rights and obligations represented by this Warrant to the Holder will be determined in accordance with the terms of the Term Loan Credit Agreement for purposes of determining the “issue price” of the Term Loan.
(iii)    The Holder and the Company agree not to report or take any tax position for U.S. federal income tax purposes (and applicable state, local and non-U.S. income tax purposes) that is inconsistent with this Section 5(m).
[Signatures Contained on the Following Page]
    14

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the Issue Date.

     
			
	HORIZON GLOBAL CORPORATION

	By:__________________________________________
     Name:  
     Title:    

    

 [Signature Page to Warrant]
 

EXHIBIT A

NOTICE OF EXERCISE

To:    HORIZON GLOBAL CORPORATION

Reference is made to that certain Common Stock Purchase Warrant (the “Warrant”) issued by Horizon Global Corporation (the “Company”) on February 2, 2021.  Capitalized terms used but not otherwise defined herein shall the respective meanings give thereto in the Warrant.

(1)The undersigned Holder of the Warrant hereby elects to exercise the Warrant for ______ Warrant Shares, subject to (check one):
☐    delivery of the aggregate Exercise Price for the Warrant Shares as to which the Warrant is so exercised; or
☐    tender of ______ Warrants pursuant to the cashless exercise provisions of Section 2(e) of the Warrant. 
The undersigned Holder hereby instructs the Company to issue the applicable number of Warrant Shares, or the net number of shares of Common Stock issuable upon exercise of the Warrant pursuant to the cashless exercise provisions of Section 2(e) of the Warrant, in the name of the undersigned Holder.

(2)The undersigned Holder hereby represents and warrants to the Company that, as of the date hereof:
    a)    Experience; Accredited Investor Status.  The Holder (i) is an accredited investor as that term is defined in Rule 501 of Regulation D promulgated under the Securities Act, (ii) is capable of evaluating the merits and risks of its investment in the Company, (iii) has the capacity to protect its own interests, and (iv) has the financial ability to bear the economic risk of its investment in the Company.
    b)    Company Information.  The Holder has been provided access to all information regarding the business and financial condition of the Company, its expected plans for future business activities, material contracts, intellectual property, and the merits and risks of its purchase of the Warrant Shares, which it has requested or otherwise needs to evaluate an investment in the Warrant Shares.  It has had an opportunity to discuss the Company’s business, management and financial affairs with directors, officers and management of the Company and has had the opportunity to review the Company’s operations and facilities.  It has also had the opportunity to ask questions of, and receive answers from, the Company and its management regarding the terms and conditions of this investment and all such questions have been answered to its satisfaction.
    c)    Investment.  The Holder has not been formed solely for the purpose of making this investment and is acquiring the Warrant Shares for investment for its own account, not as a nominee or agent, and not with the view to, or for resale in connection with, any distribution of any part thereof.  It understands that the Warrant Shares have not been registered under the Securities Act or applicable state and other securities laws and are being issued by reason of a specific exemption from the registration provisions of the Securities Act and applicable state and other securities laws, the availability of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of its representations as expressed herein. 
 

    d)    Transfer Restrictions.  The Holder acknowledges and understands that (i) transfers of the Warrant Shares are subject to transfer restrictions under the federal securities laws and (ii) it may have to bear the economic risk of this investment for an indefinite period of time unless the Warrant Shares are subsequently registered under the Securities Act and applicable state and other securities laws or unless an exemption from such registration is available.

Name of Registered Owner: _____________________________________________________________    
Signature of Authorized Signatory of Registered Owner:_______________________________________    
Name of Authorized Signatory:___________________________________________________________    
Title of Authorized Signatory: ____________________________________________________________    
Date: ________________________________________________________________________________    

 

EXHIBIT B

ASSIGNMENT FORM

(To assign the foregoing Warrant, execute this form and supply required information.  Do not use this form to purchase shares.)
FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

						
	Name:	
		(Please Print)
	Address:	
		(Please Print)
	Dated: _______________ __, ______	
	Holder’s Signature:_____________________
	
	Holder’s Address:______________________edsa_ex101

SIF
AGREEMENT NO. 811-513437

 

Exhibit
10.1

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT
BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE
HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.

 

STRATEGIC INNOVATION FUND

 

EB05 Therapeutic

 

This Agreement made

 

	

Between:

 

	
 

	

 

HER MAJESTY THE QUEEN IN RIGHT OF CANADA (“Her
Majesty”)

 

as
represented by the Minister of Industry

 

(the
“Minister”)

 

	

And:

	
 

	

 

Edesa
Biotech Research, Inc., a corporation duly incorporated under the
laws of Ontario, having
its head office located at 100 Spy Court, Markham, Ontario L3R
5H6

 

(the
“Recipient”)

 

	

And:

	
 

	

 

Edesa
Biotech, Inc., a corporation duly incorporated under the laws
of British Colombia,
having its head office located at 100 Spy Court, Markham, Ontario
L3R 5H6

 

(the
“Guarantor”)

 

RECITALS

 

WHEREAS

 

I- 

The Strategic
Innovation Fund (“SIF”) is designed to encourage
research and development, and accelerate the technology transfer
and commercialization of innovative products, services, and
processes; facilitate the growth and expansion of firms; secure
economically significant mandates within or to Canada; and, advance
industrial research and technology demonstration activities through
collaboration;

 

 

1

SIF
AGREEMENT NO. 811-513437

 

 

 

 

II- 

Neither the
entering into this Agreement nor the provision by the Minister of
the Contribution is contingent upon export performance on the part
of the Recipient;

 

III- 

The Project is in
respect to SIF’s research and development (R&D) and
commercialization Stream 1, and involves:

● 

activities related
to the creation or deployment of medical countermeasures
(MCM’s), or any activity related to the response to
COVID-19;

● 

activities
related to Canada’s long-term emergency preparedness;
and

● 

obtaining
an R&D and/or production mandate which was previously held
outside of Canada or is being established for the first time in
relation to Canada’s emergency preparedness.

 

IV- 

The Minister has
agreed to make a non-repayable contribution to the Recipient in
support of the Recipient’s Eligible Supported Costs (as
defined herein) of the Project with total Project costs of eighteen
million, seven hundred and thirty-eight thousand dollars
($18,738,000).

 

NOW, THEREFORE in
accordance with the mutual covenants and agreements herein, Her
Majesty and the Recipient agree as follows:

 

1.            

Purpose of the Agreement

 

The
purpose of this Agreement is to set out respective obligations and
the terms and conditions under which the Minister will provide
funding in support of the Project (as defined herein).

 

2.            

Interpretation

 

2.1     

Definitions.

 

In this
Agreement, a capitalized term has the meaning given to it in this
section, unless otherwise specified:

 

“Acquisition
or Divestiture” means an acquisition of a business,
the sale of a business or a merger or amalgamation.

 

“Activity”
means a significant task that must take place in order to complete
the Project. It has duration, during which time the work of that
task is performed, and may have resources and costs associated with
that task as set out in Form C1- PROJECT COSTS BREAKDOWN of
Schedule 1 - Statement of
Work.

 

2

SIF
AGREEMENT NO. 811-513437

 

 

 

“Affiliated
Person” means an affiliated person as defined in the
Income Tax Act, as
amended.

 

“Agreement”
means this contribution agreement including all the schedules
attached hereto, as such may be amended, restated or supplemented,
from time to time.

 

“Background
Intellectual Property” means Intellectual Property
that is not Project Intellectual Property and that is required for
the carrying out of the Project or the exploitation of the Project
Intellectual Property.

 

“Background Intellectual
Property Rights” means the Intellectual Property Rights in
Background Intellectual Property.

 

“Benefits
Commitments” means those activities described in
Subsection 6.3 of this Agreement that will generate benefits to
Canada.

 

“Benefits
Phase” means the period from the Project Completion Date
to and including the last day of the Term.

 

“Change
in Control” of the Recipient means:

 

(a) 

if the Recipient is
a public company, the acquisition by an individual or company (or
two or more of them acting in concert) that results in its or their
direct or indirect beneficial ownership of 20% or more of
outstanding shares of voting stock of the Recipient;
or

 

(b) 

if the Recipient is
a private company, the acquisition by an individual or company (or
two or more of them acting in concert) that results in its or their
direct or indirect beneficial ownership of 50% or more of the
voting stock in the Recipient; or

 

(c) 

if the Recipient
enters into a binding obligation to sell, sells or otherwise
disposes of all or substantially all of its assets.

 

“Claim
Period” means the following quarters of a calendar
year: January 1 to March 31, April 1 to June 30, July 1 to
September 30 and October 1 to December 31.

 

“Collaboration”
means the Recipient’s association with one or more
Collaboration Partners for the purpose of research and
development.

 

“Collaboration
Partner” means, other
than the Recipient and sub-contractors, any small and medium-sized
Canadian based enterprise, any Canadian research institute, any
licensed or accredited academic, post-secondary institution in
Canada that is/are involved in the
Collaboration.

 

 

3

SIF
AGREEMENT NO. 811-513437

 

 

 

“Contribution” means
the funding, in Canadian dollars, made available by the Minister
under this Agreement.

 

“CO-OP Term” means a four (4) month full-time
position.

 

“Dispose” means,
as regards a Project Asset, the transferring outside Canada,
selling, leasing or otherwise disposing including, in the case of a
prototype or pilot plant, the transfer to commercial production,
but in any event, shall not include abandoning the Project Asset
for legitimate business reasons, such as the disposal of obsolete
or disused equipment or materials.

 

“Eligibility
Date” means [______]. [Eligibility date omitted as competitively
sensitive information.]

 

“Eligible
Costs” means the costs associated with work performed
in Canada, or outside of Canada to the extent explicitly permitted
in this Agreement that are incurred and paid by the Recipient in
respect of the Project, and in accordance with Schedule 3 -
Cost Principles, excluding
any costs prohibited or deemed ineligible elsewhere in this
Agreement.

 

“Eligible
Not-Supported
Costs” means those Eligible Costs that
are specifically identified in Schedule 1 - Statement of Work as not being
supported, including those Eligible Costs that are in excess of
limits imposed on indirect (overhead) costs under Schedule 3
– Cost Principles of
this Agreement.

 

“Eligible
Supported Costs” means any Eligible Costs, excluding
Eligible Not-Supported Costs.

 

“Event
of Default”
means the events of default listed in Subsection 14.1 of this
Agreement.

 

“Execution
Date” means the date of the last signature to this
Agreement such that the Agreement is signed and dated by all
Parties.

 

“Fair
Market Value” means the price that would be agreed to
in an open and unrestricted market between knowledgeable and
willing parties dealing at arm’s length, who are fully
informed and not under any compulsion to transact.

 

“Force
Majeure” means any cause which is unavoidable or
beyond the reasonable control of the Recipient, including war,
riot, insurrection, strikes, or any act of God or other similar
circumstance and which could not have been reasonably circumvented
by the Recipient without incurring unreasonable cost.

 

“FTE” or “Full Time Equivalent” means
each employee or, where applicable, intern, who works for the
Recipient on a full-time basis (i.e. they are responsible to work
at least 2,000 hours for the Recipient when calculated on an annual
basis) and, in the case of hourly paid employees or interns who are
responsible to work for the Recipient less than on a full-time
basis, each equivalent to such a full-time worker, where the number
of such equivalents is calculated by dividing (a) by (b) where (a)
= the aggregate of all hours worked by such individuals for the
Recipient including hours taken by them as paid vacation, sick
leave, and for other similar reasons, calculated on an annual
basis, and (b) = 2,000 hours.

 

4

SIF
AGREEMENT NO. 811-513437

 

 

 

“Government
Fiscal Year” means the period from April 1 of one year
to March 31 of the following year.

 

“Highly Skilled” means an employee that requires
specialized training in order to operate, manage or participate in
the Project. This may include scientists, engineers, managers and
specialized trades.

 

“Intellectual
Property” means all inventions, whether or not patented or
patentable, all commercial and technical information, whether or
not constituting trade secrets, and all copyrightable works,
industrial designs, integrated circuit topographies, and
distinguishing marks or guises, whether or not registered or
registrable.

 

“Intellectual Property
Rights” means
all rights recognized by law in or to Intellectual Property,
including but not limited to Intellectual Property rights protected
through legislation. These shall include patents, copyrights,
industrial design rights, integrated circuit topography rights,
rights in trademarks and trade names, all rights in applications
and registrations for any of the foregoing, and all rights in trade
secrets and confidential information.

 

“Interest
Rate” means the Bank Rate, as defined in the
Interest and Administrative
Charges Regulations, in effect on the due date, plus 300
basis points, compounded monthly. The Interest Rate for a given
month can be found at:

http://www.tpsgc-pwgsc.gc.ca/recgen/txt/taux-rates-eng.html

 

“Master
Schedule” means a summary-level Project schedule that
identifies the major Activities and work breakdown structure
components and Milestones as reflected in Form A – MASTER
SCHEDULE (Gantt Chart) of Schedule 1 - Statement of Work.

 

“Material
Change” is a significant change in the scope,
objectives, outcomes or benefits of the Project including without
limitation, the following:

 

(a) 

The Project is not
completed or not expected to be completed by the Project Completion
Date;

 

(b) 

the estimated Total
Eligible Supported Costs set out in Form C2 – ESTIMATED COST
BREAKDOWN BY FISCAL YEAR of Schedule 1 – Statement of Work are expected to be
reduced or are expected to be exceeded by twenty percent (20%) or
more;

 

(c) 

a change in the
locations where the Project is to be performed as identified in
Form D – PROJECT LOCATION AND COSTS of Schedule 1 –
Statement of
Work.

 

 

 

5

SIF
AGREEMENT NO. 811-513437

 

 

 

“Milestone” means
a significant point or event in the Project as set forth in Form B
- MILESTONES of Schedule 1 - Statement of Work.

 

“Party”
means the Minister, or the Recipient or any Guarantor, and
“Parties” means
all of them.

 

“Project” means
the project as described in Schedule 1 - Statement of Work.

 

“Project
Asset” means an asset which, in whole or in part, has
been acquired, created, developed, advanced and/or contributed to
by the Contribution.

 

“Project
Completion Date” means [______]. [Project completion date omitted as
competitively sensitive information.]

 

“Project
Intellectual Property” means all Intellectual Property conceived, produced,
developed or reduced to practice in
carrying out the Project by the Recipient and/or any Affiliated Persons of the Recipient, or
any of their employees, agents,
contractors or assigns.

 

“Project
Intellectual Property Rights” means the Intellectual
Property Rights in the Project Intellectual Property.

 

“Public
Office Holder” means a public office holder as defined
in the Lobbying Act, as
amended.

 

“Recipient Fiscal Year” means the period for
which the Recipient’s accounts in respect of its business or
property are prepared for purposes of assessment under the
Income Tax Act, as
amended.

 

“Resulting
Products” means all products, services or processes
that:

a. 

are produced using
the Project Intellectual Property;

b. 

incorporate any of
the Project Intellectual Property; or

c. 

result from or are
used to carry out the Project.

 

“Schedule”
means a schedule to this Agreement, including any amendments or
supplements.

 

“Similar
Goods” means goods or services that closely resemble
the goods or services being transferred, in respect of their
component materials, form, function and characteristics, and are
capable of performing an equivalent function as, and of being
commercially interchangeable with, the goods being
transferred.

 

“Technology
Readiness Level” or “TRL” means technology readiness
according to the Technology Readiness Level scale described
below.

 

6

SIF
AGREEMENT NO. 811-513437

 

 

 

	

 

 

Technology Readiness Level

 

	

 

 

Description

 

	

TRL 1—Basic principles observed and reported

 

	

Lowest level of technology readiness. Scientific research begins to
be translated into applied research and development (R&D).
Examples might include paper studies of a technology's basic
properties.

 

	

TRL 2—Technology concept and/or application
formulated

 

	

Invention begins. Once basic principles are observed, practical
applications can be invented. Applications are speculative, and
there may be no proof or detailed analysis to support the
assumptions.

 

	

TRL 3—Analytical and experimental critical
function

and/or characteristic proofof concept

 

	

Active R&D is initiated. This includes analytical studies and
laboratory studies to physically validate the analytical
predictions of separate elements of the technology.

 

	

TRL 4—Product and/or process validation in

laboratory environment

 

	

Basic technological products and/or processes are tested to
establish that they will work.

 

	

TRL 5—Product and/or process validation in

relevant environment

 

	

Reliability of product and/or process innovation increases
significantly. The basic products and/or processes are integrated
so they can be tested in a simulated environment.

 

	

TRL 6—Product and/or process prototype demonstration
in

a relevant environment

 

	

Prototypes are tested in a relevant environment. Represents a major
step up in a technology's demonstrated readiness. Examples include
testing a prototype in a simulated operational
environment.

 

	

TRL 7—Product and/or process prototype demonstration
in

an operational environment

 

	

Prototype near or at planned operational system and requires
demonstration of an actual prototype in an operational environment
(e.g. in a vehicle).

 

	

TRL 8—Actual product and/or process completed and
qualified

through test and demonstration

 

	

Innovation has been proven to work in its final form and under
expected conditions. In almost all cases, this TRL represents the
end of true system development.

 

	

TRL 9—Actual product and/or process proven
successful

 

	

Actual application of the product and/or process innovation in its
final form or function.

 

 

 

7

SIF
AGREEMENT NO. 811-513437

 

 

 

“Term”
means the duration of this Agreement as set out in Subsection 3.2
of this Agreement.

 

“Work
Phase” means the period of time from the
Eligibility Date to and including the Project Completion
Date.

 

2.2            

Singular/Plural. Wherever from the
context it appears appropriate, each term stated in either the
singular or plural shall include the singular and the
plural.

 

2.3            

Entire Agreement. Unless amended in
writing by the Parties, this Agreement comprises the entire
agreement between the Parties in relation to the Project. No prior
document, negotiation, provision, undertaking or agreement in
relation to the subject matter of this Agreement has legal effect.
No representation or warranty, whether express, implied or
otherwise, has been made by the Minister to the Recipient, except
as expressly set out in this Agreement.

 

2.4            

Inconsistency. In case of inconsistency
or conflict between a provision contained in the part of the
Agreement preceding the signatures and a provision contained in any
of the Schedules to this Agreement, the provision contained in the
part of the Agreement preceding the signatures will
prevail.

 

2.5            

Schedules. This Agreement contains the
following Schedules as described below, whichform an integral part
of this Agreement:

 

Schedule 1 -
Statement of
Work

Schedule 2 -
Communications
Obligations

Schedule 3 -
Cost
Principles

Schedule 4 -
Reporting
Requirements

Schedule 5 -
Resolution
Process

 

3.            

Duration of Agreement

 

3.1          

Execution. This Agreement must be signed
by the Recipient and received by the Minister within thirty (30)
days of its signature by the Minister, failing which it will be
null and void.

 

3.2          

Duration of Agreement. This Agreement
will commence on the Execution Date and will expire, subject to
Subsection 3.3, [______] years following the Project Completion
Date unless terminated earlier in accordance with the terms of this
Agreement. [Expiration date omitted as competitively
sensitive information.]

 

3.3          

Survival Period. Notwithstanding the
provisions of Subsection 3.2 above, the rights and obligations
described in the following Sections or Subsections will survive for
a period of three (3) years beyond the Term or early termination of
the Agreement:

 

8

SIF
AGREEMENT NO. 811-513437

 

 

 

Section
7 - Government Funding

Subsection 8.5 -
Overpayment by Minister

Section
9 - Reporting, Monitoring, Audit and Evaluation

Subsection 10.2(d)
- Disposal of Assets

Subsection 13.1 -
Indemnification

Subsection 13.2 -
Limitation of Liability

Section
14 - Default and Remedies

Subsection 17.2 -
Interest

Subsection 17.3 -
Set-off Rights of Minister

Subsection 17.8 -
Applicable Law

 

4.            

The Contribution

 

4.1         

Contribution. Subject to the terms and
conditions of this Agreement, the Minister agrees to make a
non-repayable Contribution to the Recipient in respect of the
Project in an amount not exceeding the lesser of (a) and (b) as
follows:

 

(a)           

seventy-five
percent (75%) of the Eligible Supported Costs; and

(b)            

fourteen million
fifty-three thousand and five hundred dollars
($14,053,500).

 

4.2     

Funding Period. The Minister will not
contribute to any Eligible Supported Costs incurred by the
Recipient prior to the Eligibility Date or after the Project
Completion Date. In no
event will Eligible Supported Costs incurred prior to the Execution
Date exceed [______] percent ([______]%) of the “estimated Total
Eligible Supported Costs” set out in Form C2 - ESTIMATED COST BREAKDOWN BY FISCAL
YEAR of Schedule 1 - Statement of
Work. [Percentage of estimated Total Eligible
Supported Costs omitted as competitively sensitive
information.]

 

4.3 

Fiscal Year. The payment of the Contribution per Government
Fiscal Year is estimated at amounts specified in Form C2
- ESTIMATED COST BREAKDOWN
BY FISCAL YEAR of Schedule 1 -
Statement of
Work. The Minister will have no
obligation to pay any amounts in any Government Fiscal Year other
than those specified in Form C2 - ESTIMATED COST BREAKDOWN BY FISCAL
YEAR of Schedule 1 -
Statement of
Work. If, for a given
Government Fiscal Year, the Recipient claims an amount less than
the estimated Contribution for
that Government Fiscal Year specified
in Form C2 -
ESTIMATED COST BREAKDOWN BY FISCAL YEAR of Schedule 1 - Statement of Work, the
Minister may consider any request to reprofile the excess funds to
future Government Fiscal Years before the Project Completion
Date.

 

4.4          

Overruns. The Recipient shall be
responsible for all costs of the Project, including costoverruns,
if any.

 

4.5          

Holdbacks. Notwithstanding any other
provisions of this Agreement, the Minister may, at the Minister's
sole discretion, withhold up to ten percent (10%) of the
Contribution until:

 

(a)

the Project is
completed to the satisfaction of the Minister;

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

(b)         

the final report
described in Subsection 8.3(c) has been submitted to
thesatisfaction of the Minister;

 

(c)         

the Minister has
approved the final claim described in Subsection 8.3.

 

 

5.          

Recipient’s Obligations

 

5.1          

Project Completion Date. The Recipient
agrees to carry out the Project in a diligent and professional
manner using qualified personnel, and complete same on or before
the Project Completion Date.

 

5.2          

Project Location. Except as otherwise
permitted in Subsection 6.4 below, the Recipient agrees to carry
out the Project exclusively in Canada located in Toronto and the
Greater Toronto Area, Ontario, and Montreal, Quebec.

 

5.3          

Benefits Commitments. The Recipient
agrees to conduct Benefits Commitments exclusively in Canada, as
per Subsection 6.3.

 

5.4          

Compliance. The Recipient agrees to
satisfy and comply with all other terms, conditions and obligations
contained in this Agreement.

 

6.          

Special Conditions

 

The
Recipient covenants and agrees to the following:

 

6.1 

Guarantee

 

(a)            

Guarantee. In consideration of the
Minister providing the Contribution, the Guarantor guarantees the
complete performance and fulfillment of every obligation of the
Recipient under this Agreement, including without limitation, the
completion of the Project in accordance with this Agreement. If the
Recipient fails to perform or otherwise satisfy any of its
obligations related to the Agreement, immediately after receiving a
written demand from the Minister, the Guarantor must perform or
satisfy, or arrange for the performance or satisfaction of, all
outstanding obligations of the Recipient. The Guarantor’s
obligations under this Guarantee are as a primary obligor and not
only as a surety. The Minister is not required to resort to or
exhaust any recourse that it may have against the Recipient or any
other person before being entitled to make claim against the
Guarantor. As a result of the forgoing, the Guarantor or the
Recipient may be compelled separately to perform any obligation
contained in this Agreement.

 

(b)            

Taxes. Any payment to be made by the
Guarantor in respect of this Agreement shall be made free and clear
of and without deduction or withholding for or on account of any
present and future taxes, levies, imposts, stamp taxes, duties,
charges, fees deductions, withholdings, penalties or interest
(collectively, “Taxes”) provided that if the Guarantor
is required to withhold or deduct any taxes from such payments, the
sum payable shall be increased as necessary so that after making
all required withholdings or deductions, the Minister receives an
amount equal to the sum he/she would have received had no such
withholding or deduction been made.

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

(c)            

Costs. The Guarantor agrees to reimburse
the costs and expenses incurred by the Minister in enforcing the
guarantee under Paragraph 6.1(a).

 

(d)            

Representations. The Guarantor
represents to the Minister that it has the power and authority, and
has met all legal requirements to grant the guarantee under
Paragraph 6.1(a) and that such guarantee is enforceable against it
in accordance with its terms.

 

6.2

Pre-Disbursement

 

The
Recipient covenants and agrees to the following:

 

6.2.1 

(a) 

First Claim.  Upon submission of
the first claim, the Recipient shall provide evidence to the
Minister, to the Minister’s satisfaction, that it has
available funds to carry out the Project and continue operating for
the remainder of the Government Fiscal Year in which the claim is
received by the Minister, or for a period of six months from the
day the claim is received by the Minister, whichever is greater. No
disbursement of the Contribution shall be made prior to the
Recipient providing such satisfactory evidence. If the Recipient
fails to satisfy such condition within one hundred and twenty (120)
days of the receipt of the first claim, the Minister may, at his
discretion, terminate the Agreement upon written
notice.

 

(b)            

Annual. At the beginning of each new
Government Fiscal Year during the Work Phase, the Recipient shall
provide evidence to the Minister, to the Minister’s
satisfaction, that it has available funds to carry out the Project
and continue operating for that Government Fiscal Year.  No
disbursement of the Contribution shall be made prior to the
Recipient providing such satisfactory evidence. If the Recipient
fails to satisfy such condition within one hundred and twenty (120)
days of the beginning of each Government Fiscal Year, the Minister
may, at his discretion, terminate the Agreement upon written
notice.

 

6.2.2 

[______]
Strategy. Prior to the first disbursement of
the Contribution, the Recipient shall develop a [______] plan that
will be shared with the Minister, to the Minister’s
satisfaction, that will outline all efforts undertaken by the
Recipient to [______] related to the Project. This plan should also
include [______] educational awareness training for employees. The
Recipient agrees to report annually on any changes to this plan
[______]. [Nature of strategy and
timeframe omitted as competitively sensitive
information.]

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

6.3            

Benefits
Commitments.

 

6.3.1

Strengthen
Canada’s response to COVID-19

 

(a)

The Recipient
commits to work with [______] to ensure that any
treatment developed within the scope of this Project will be
accessible and available for the Canadian population on a timely
basis. [Name of party omitted as
competitively sensitive information.]

 

(b)

The Recipient will
[______] to
ensure that, once commercially available, the treatment will be
made available globally. [Nature
of action omitted as competitively sensitive
information.]

 

(c)

The Recipient
commits to work with [______] and other parties,
in good faith and [______], to increase
domestic and global affordability and access to Resulting Products,
in accordance with relevant guidance and policies published by the
World Health Organization and the United Nations. [Name of party and nature of commitment omitted
as competitively sensitive information.]

 

6.3.2                       

Create
and maintain highly-skilled jobs in Canada

 

(a)

The Recipient will
create at least six (6) FTEs in Canada [______] while maintaining
its existing eight (8) FTEs in Canada, totaling fourteen (14) FTEs
[______].
[Timeframe of creating FTEs
omitted as competitively sensitive
information.]

 

(b)

The Recipient will
maintain [______]
fourteen (14) FTEs [______]. [Timeframe and calculation of number of FTEs
omitted as competitively sensitive
information.]

 

(c)

The Recipient will
provide [______].
[Nature, timeframe and recipient
of information provided omitted as competitively sensitive
information.]

 

(d)

To contribute to
the development of tomorrow’s workforce, the Recipient will
employ at least [______] ([______]) CO-OP Term position
in Canada [______]. [Minimum number of CO-OP Term positions in
Canada and timeframe omitted as competitively sensitive
information.]

 

6.3.3 

Commitment
to [______]

 

(a)

The Recipient shall
implement a [______], which will
stipulate measurable goals and outcomes. The Recipient will report
to the Minister on progress achieved regarding its [______] on an annual basis
[______].

 

(b)

The Recipient will
work to increase [______] in Canada and will
report annually to the Minister on progress achieved during the
Term.

 

(c)

In addition to
[______], the
Recipient will commit to [______], during the
Term.

 

[Nature of commitments and timeframe omitted as
competitively sensitive information.]

 

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SIF
AGREEMENT NO. 811-513437

 

 

6.4          

Work
Outside of Canada

 

(a) 

In consideration of
the Minister providing the Contribution, the Recipient may incur up
to [______]% of Eligible Supported Costs for work outside of Canada
which will be identified as foreign costs. Any costs over this
threshold will be considered ineligible and will not be subject to
claim.
[Percentage
of Eligible Supported Costs omitted as competitively sensitive
information.]

 

(b) 

In addition to the
foreign costs allowed under Paragraph 6.4(a), up to [______]% of
Eligible Supported Costs may [______], as identified in Schedule 1
– Statement of Work.
Specifically, [______].
[Percentage
of Eligible Supported Costs and potential use of such costs omitted
as competitively sensitive information.]

 

(c) 

The Recipient will
make best efforts to conduct all clinical trials in Canada unless
[______]. [Nature of exception omitted as competitively
sensitive information.]

 

6.5          

Regulatory
approval for clinical trials

 

(a) 

The Recipient must
demonstrate that it is securing the required regulatory approval
from Health Canada to undertake clinical trials as outlined within
Schedule 1 – Statement of
Work of the Project by providing the Minister, to his
satisfaction, with a copy of the following regulatory approval
documents within 30 days of receipt by the Recipient:

 

i. 

Clinical Trials
Phase II: No Objection Letter (NOL) from Health Canada: This NOL
will be provided to the Minister no later than the [______]. For
clarity, Phase II trials include clinical trials to evaluate the
efficacy of the drug in patients with medical conditions to be
treated, diagnosed or prevented and to determine the side effects
and risks associated with the drug. [Timeline omitted as competitively sensitive
information.]

 

(b) 

If at any time the
Recipient receives a Not Satisfactory Notice (NSN) from Health
Canada related to the Project, the Recipient will immediately
inform the Minister and the Minister may, at his discretion,
terminate the Agreement. Any Project costs incurred by the
Recipient after the date of the NSN will not be eligible for
reimbursement by the Minister.

 

6.6          

Monitoring
progress of clinical trials

 

(a) 

The Minister may
request that the Recipient provide copies of the pre-clinical and
clinical documents submitted to Health Canada within the Clinical
Trial Application (CTA) for Phase II.

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

(b) 

The Recipient
acknowledges that the Minister may share, at his discretion, any of
the documentation listed above with governmental experts from the
Public Health Agency of Canada, the National Research Council,
Health Canada, the Canadian Institutes of Health Research, and
external advisors on the Minister’s Therapeutics Committee
for the purpose of validating progress related to the
Project.

 

6.7          

Continued
engagement by [______]

 

(a) 

[______]. This
subsection 6.7(a) constitutes an indication of intent only and
creates no liability or obligation of any nature whatsoever among
the Parties hereto with respect to [______].   

 

(b) 

[______]. This
subsection 6.7(b) constitutes an indication of intent only and
creates no liability or obligation of any nature whatsoever among
the Parties hereto with respect to [______]. 

 

[Nature of continued engagement omitted as
competitively sensitive
information.]

 

6.8          

Annual
Benefits Reporting

 

(a) 

In addition to
Schedule 4 - Reporting
Requirements, on an annual basis and for the Term, the
Recipient shall provide information identifying the Project’s
achievements relative to planned outcomes and benefits,
including:

 

i. 

Number of
therapeutics and vaccines (doses) discovered, developed,
manufactured, and/or distributed;

ii. 

Number of FTEs
created and maintained with average and range of salary
levels;

iii. 

Market share
secured or captured;

iv. 

Composition of
workforce, including diversity and gender
representation;

v. 

Dollars spent on
gross Canadian R&D and gross global R&D;

vi. 

Productivity
improvement levels;

vii. 

Number and details
of post-secondary institution collaborations;

viii. 

Number and
activities of CO-OP Term engagements; and

ix. 

Training activities
of the workforce.

 

(b)

In addition to
Schedule 4 - Reporting
Requirements, on an annual basis and for the Term, the
Recipient shall provide information on the Project derived benefits
but not limited to information on:

 

i.

Number of
therapeutics and vaccines (doses) discovered, developed,
manufactured, and/or distributed;

ii.

Impact to the
growth of the Canadian supply chain;

iii.

New Intellectual
Property generated;

iv.

Licenses granted
without consent under Subsection 11.4.2;

v.

R&D and product
development levels as a function of revenue;

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

vi.

Details of
increased collaborations, including associated costs and
activities;

vii.

Efforts to reduce
environmental footprint and/or increase environmental
sustainability of the company;

viii.

Efforts to create
opportunities for [______] to scale and enter
the [______]
ecosystem;

ix.

Details of internal
Artificial Intelligence (AI) and Machine Learning (ML) applications
and processes; and

x.

Productivity
improvement levels.

 

[Nature of opportunities omitted as
competitively sensitive
information.]

 

6.9.

Amendment. The Recipient shall provide
written notice to the Minister of any changes which may have an
impact on Schedule 1 – Statement of Work or on the Benefits
Commitments in accordance with 6.3 of this Agreement. The Recipient
shall provide to the satisfaction of the Minister sufficient
written reasons to justify modifications to the Agreement. At the
Minister’s sole discretion, the Minister may request a formal
amendment to be executed by the Parties. The Parties agree to
negotiate in good faith such amendments. If, after following the
process in Schedule 5 – Resolution Process, failure to agree
will result in the Minister declaring an Event of Default in
accordance with 14.1 of this Agreement.

 

7.         

Government Funding

 

7.1         

The Recipient
represents that the list below states all funding from federal,
provincial, territorial or municipal governments in Canada
(“Government Funding”), requested or received by the
Recipient or that the Recipient currently expects to request or
receive to cover any of the Eligible Supported Costs. The list
below excludes provincial and federal investment tax
credits.

 

	

Federal

	

$
14,053,500 (SIF)

	
 

	

$
[______]

	

Provincial

	

$
0

	

Territorial

	

$
0

	

Municipal

	

$
0

	
 

	
         
                 
                
    

	

Total

	

$ [______]

 

[Portion
of the funding received by the Recipient from other agencies of the
federal government and total amount of government funding omitted
as competitively sensitive information.]

 

7.2          

The Recipient shall
inform the Minister of any change to the amount of Government
Funding identified in Subsection 7.1. The Recipient shall also
inform the Minister of any provincial and federal investment tax
credits, received or expected to be received by the Recipient for
the Eligible Supported Costs. Such notice must be made promptly in
writing, and in any case not later than thirty (30) days following
any change. In the event of additional
Government Funding, the Minister will have the right to either
reduce the Contribution to the extent of any additional funding
received by the Recipient or require the Recipient to repay the
Contribution hereunder equal to the amount of any such additional
funding received by the Recipient in accordance with Subsection
8.5.

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

7.3          

In no instance will
the total Government Funding (including SIF funding, provincial and
federal investment tax credits) towards Eligible Supported Costs of
the Project be allowed to exceed [______] percent ([______]%) of
total Eligible Supported Costs. [Percentage of total Eligible Supported Costs
omitted as competitively sensitive
information.]

 

8.            

Claims and Payments

 

8.1          

Separate Records.  The Recipient shall maintain
accounting records that account for the Contribution paid to the
Recipient and the related Project costs, separate and distinct from
any other sources of funding.

 

8.2          

Claims Procedures. The Minister will
reimburse claims for Eligible Supported Costs submitted for a Claim
Period, provided there is no Event of Default and the claims
are:

 

(a) 

submitted for each
Claim Period, except for the first claim which will start on the
Eligibility Date;

 

(b) 

submitted within
forty-five (45) days of the end of each Claim Period;

 

(c) 

accompanied with
details of all costs being claimed according to Schedule 3 –
Cost Principles, which have
been incurred by the Recipient and which will be substantiated by
such documents as may be required by the Minister and presented in
accordance with the Activities and the Milestones contained in
Schedule 1 - Statement of
Work;

 

(d) 

certified, in a
form satisfactory to the Minister, by the chief financial officer
of the Recipient or such other person considered satisfactory to
the Minister;

 

(e) 

adjusted, if
necessary, by including a deduction for expenses included in a
previous claim which were not eligible expenses according to
Eligible Supported Costs definition in this Agreement or which were
not paid by the Recipient;

 

(f)         

accompanied by a
report containing:

 

(i) 

the
Recipient’s revised projections of the Project cash flows for
the current Government Fiscal Year;

 

(ii) 

an identification
of any planned or completed transfer to commercial production,
transfer outside of Canada, sale, lease or other disposal of
equipment funded in whole or in part by the
Contribution;

 

(iii)

an itemized list of
foreign sub-contracting costs, if any;

 

 

16

SIF
AGREEMENT NO. 811-513437

 

 

 

(iv) 

the foreign
exchange rates used in the claim;

 

(v) 

progress report as
specified in Subsection 1.2 of Schedule 4 - Reporting Requirements;
and

 

(vi) 

such other
information as the Minister may request from time to
time.

 

(g) 

accompanied by a
statement from the Recipient repeating and confirming the
representations set out in Section 10 of this Agreement as required
by Subsection 10.3, and a certification that there are no Events of
Defaults (and no state of facts exist which, with the giving of
notice or the passing of time, or both, would constitute an Event
of Default);

 

(h) 

substantially
(± 20 percent (20%)) consistent with the cost estimates of
Schedule 1 - Statement of
Work; and

 

(i) 

accompanied by the
Recipient’s travel policy (first claim only).

 

8.3          

Final Claim Procedures. The Recipient
shall submit, within forty-five (45) days after the Project
Completion Date, the final claim along with:

 

(a) 

an itemized
statement certified by the Recipient’s chief financial
officer, or such other person considered satisfactory to the
Minister, attesting to the total Eligible Supported Costs for the
Project incurred and paid;

 

(b) 

a statement of the
total government funding (federal, provincial and municipal funding
as well as tax credits) received or requested to cover the Eligible
Supported Costs of the Project; and

 

(c) 

a final progress
report on the Project, as more fully described in Subsection 1.3 of
Schedule 4 - Reporting
Requirements.

 

8.4

Payment Procedures.

 

(a) 

The Minister shall
review and approve the documentation submitted by the Recipient
following the receipt of the Recipient’s claim and in the
event of any deficiency in the documentation, the Minister will
notify the Recipient and the Recipient shall immediately take
action to address and rectify the deficiency.

 

(b) 

Subject to the
maximum Contribution amounts set forth in Subsection 4.1 and all
other conditions contained in this Agreement, the Minister shall
pay to the Recipient a percentage of the Eligible Supported Costs
set forth in the Recipient's claim based on the sharing ratio
identified in Paragraph 4.1 (a), in accordance with the Minister's
customary practices.

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

(c) 

The Minister may
request at any time that the Recipient provide satisfactory
evidence to demonstrate that all Eligible Supported Costs claimed
have been paid.

 

(d) 

The Minister may
[______].

 

(i)

[______].

 

(ii)

[______].

 

[Details of the payment procedures of the
Minister omitted as competitively sensitive
information.]

 

8.5          

Overpayment by Minister. Where the
Minister determines that the amount of the Contribution disbursed
exceeds the amount to which the Recipient is entitled, the
Recipient shall repay to the Minister, promptly and no later than
thirty (30) days from notice from the Minister, the amount of the
overpayment together with interest at the Interest Rate from the
date of the notice to the day of payment to the Minister in full.
Any such amount is a debt due to Her Majesty and is recoverable as
such.

 

9.            

Reporting, Monitoring, Audit and Evaluation

 

9.1          

Reports. The Recipient agrees to provide
the Minister with the reports as described in Schedule 4 -
Reporting Requirements, to
the Minister’s satisfaction.

 

9.2          

Additional Information. Upon request of
the Minister and at no cost to the Minister, the Recipient shall
promptly elaborate upon any report submitted or provide such
additional information as may be requested.

 

9.3          

Minister’s Right to Audit Accounts and
Records. The
Recipient shall, at its own expense, maintain and preserve in
Canada and make available for audit and examination by the Minister
or the Minister’s representatives all books, accounts and
records relating to this Agreement or the Project held by the
Recipient, its Affiliated Persons, agents and contractors and of
the information necessary to ensure compliance with the terms and
conditions of this Agreement, including repayment to the Minister.
The Minister will have the right to conduct such audits at the
Minister’s expense as may be considered
necessary.

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

Unless
otherwise agreed to in writing by the Minister, the Recipient and
its Affiliated Persons, agents and contractors shall maintain and
preserve all books, accounts, invoices, receipts and records and
all other documentation related to this Agreement until the end of
the Recipient Fiscal Year that ends seven (7) years after the
fiscal year of the date on which they were created.

 

9.4          

Auditor General Rights. The Recipient
recognizes, acknowledges and accepts that the Auditor General of
Canada may, at the Auditor General’s cost, after consultation
with the Recipient, conduct an inquiry under the authority of
subsection 7.1 (1) of the Auditor
General Act in relation to any funding agreement (as defined
in subsection 42 (4) of the Financial Administration Act) with
respect to the use of the Contribution received.

 

For the
purposes of any such inquiry undertaken by the Auditor General, the
Recipient shall provide, upon request and in a timely manner, to
the Auditor General or anyone acting on behalf of the Auditor
General,

 

(a) 

all records held by
the Recipient, its Affiliated Persons, agents or contractors
relating to this Agreement and the use of the Contribution provided
under this Agreement; and

 

(b) 

such further
information and explanations as the Auditor General, or anyone
acting on behalf of the Auditor General, may request relating to
this Agreement or the use of the Contribution.

 

9.5          

Access to Records.  The Recipient shall, at all times,
ensure that its agents, employees, assigns, contractors, and
Affiliated Persons are obligated to provide to the Minister or the
Auditor General or their authorized representatives records and
other information that are in possession of those agents,
employees, assigns, contractors, and Affiliated Persons and that
relate to this Agreement or to the use of the
Contribution.

 

9.6          

Access to Premises. The Recipient and
its Affiliated Persons shall provide the representatives of the
Minister reasonable access to premises to inspect and assess the
progress of the Project or any element thereof and supply promptly
on request such data as the Minister may reasonably require for
statistical or Project evaluation purposes.

 

9.7          

Evaluation. The Recipient shall, at its
own expense, participate in the preparation ofcase studies
reporting on the outcomes of the Project, to be completed by the
Minister or the Minister’s agents, in order to assist in the
Minister’s preparation of an overall evaluation of the value
and effectiveness of SIF.

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

10.         

Representations, Warranties and Covenants

 

10.1        

Representations. The Recipient
represents and warrants that:

 

(a) 

it is duly
incorporated under Canadian law and validly existing and in good
standing and has the power and authority to carry on its business,
to hold property and to enter into this Agreement and undertakes to
take all necessary action to maintain itself in good standing, to
preserve its legal capacity and to remain incorporated in a
Canadian jurisdiction;

 

(b) 

signatories to the
Agreement have been duly authorized to execute and deliver this
Agreement;

 

(c) 

the execution,
delivery and performance of this Agreement have been duly and
validly authorized and that when executed and delivered, the
Agreement will constitute a legal, valid and binding obligation
enforceable in accordance with its terms;

 

(d) 

it is under no
obligation or prohibition, nor is it subject to or threatened by
any actions, suits or proceedings that could or would prevent
compliance with the Agreement. The Recipient shall inform the
Minister forthwith of any such occurrence;

 

(e) 

the execution and
delivery of this Agreement and the performance by theRecipient of
its obligations hereunder will not, with or without the giving of
notice or the passage of time or both:

 

(i) 

violate the
provisions of the Recipient’s by-laws, any other corporate
governance document subscribed to by the Recipient or any
resolution of the Recipient;

 

(ii) 

violate any
judgment, decree, order or award of any court, government agency,
regulatory authority or arbitrator; or

 

(iii) 

conflict with or
result in the breach or termination of any material term or
provision of, or constitute a default under, or cause any
acceleration under, any license, permit, concession, franchise,
indenture, mortgage, lease, equipment lease, contract, permit, deed
of trust or any other instrument or agreement by which it is
bound;

 

(f) 

it has obtained or
will obtain all necessary licences and permits in relation to the
Project, which satisfy the requirements of all regulating bodies of
appropriate jurisdiction;

 

(g) 

it owns or holds
sufficient rights in any Intellectual Property required to carry
out the Project; and,

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

(h) 

the description of
the Project in Schedule 1 - Statement of Work is complete and
accurate.

 

10.2        

Covenants. The Recipient covenants and agrees
that:

 

(a) 

it is solely
responsible for providing or obtaining the funding, in addition to
the Contribution, required to carry out the Project and the
fulfilment of the Recipient’s other obligations under this
Agreement;

 

(b) 

no Material Change
within the control of the Recipient will be made without the prior
written consent of the Minister. In the event that the Minister
does not consent to such a Material Change, the Minister may
exercise the remedies set out in Subsection 14.3;

 

(c) 

no Change in
Control will be made without the prior written consent of the
Minister.

 

(i) In
the case where the Recipient is a private company, the Recipient
shall notify the Minister, in writing, no later than thirty (30)
days prior to the date from which the Recipient expects to have a
Change in Control, and the Minister will confirm if it consents to
the Change in Control. Subject to subsection 17.13, consent will
not be unreasonably withheld.

 

(ii) In
the case where the Recipient is a public company, the Recipient
shall notify the Minister, in writing, of any Change in Control no
later than thirty (30) days following any Change in
Control.

 

(iii)
Prior to providing consent, the Minister may, as a result of
notification of the Change in Control, require additional due
diligence to determine the impacts of the Change in Control, such
as the following, but not be limited to: the legal status of the
Recipient pursuant to the Strategic Innovation Fund’s program
terms and conditions; the impact on the recipient’s finances
and the Project to ensure that the Recipient is able to complete
the Project; and, any other considerations that may emerge. The
purpose of the due diligence is to ensure that the Minister can
fully evaluate any additional considerations that were not
identified at the time of authorizing the funding. In the event
that the Minister does not consent to such a Change in Control, the
Minister may exercise the remedies set out in Subsection
14.3;

 

(d) 

it shall retain
possession and control of all Project Assets the cost of which has
been contributed to by the Minister under the Agreement,and the
Recipient shall not Dispose of the same without the prior written
consent of the Minister, other than in the ordinary course of
business where the aggregate book value of such Project Assets for
each occurrence is no greater than [______] dollars ($[______]);
[Dollar amount omitted as competitively
sensitive information.]

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

(e) 

it shall, in
advance and in writing, and subject to Paragraphs 10.2 (c) and (d)
of this Agreement, notify the Minister in the event of any
Acquisition or Divestiture. In the case where the Recipient is a
public company, the Recipient shall notify the Minister in writing
of any Acquisition or Divestiture contemporaneously with any press
release, or filing of a public regulatory notice in respect of such
Acquisition or Divestiture;

 

(f) 

that it shall not
make any dividend payments or other shareholder distributions that
would prevent it from implementing the Project or satisfying any
other of the Recipient’s obligations under this Agreement,
including, without limitation, the making of repayments to the
Minister hereunder;

 

(g) 

it shall comply
with the federal visibility requirements set out in Schedule 2 -
Communications Obligations;
and

 

(h) 

it shall comply
with all laws and regulations applicable to it.

 

10.3        

Renewal of Representations. It is a
condition precedent to any disbursement under this Agreement that
the representations, warranties and covenants contained in this
Agreement are true at the time of payment and that the Recipient is
not in default of compliance with any terms of this
Agreement.

 

11.         

Intellectual Property

 

11.1        

Background Intellectual Property. The
Recipient must own the Background

 

Intellectual
Property or hold sufficient Background Intellectual Property Rights
to permit the Project to be carried out.

 

11.2        

Project Intellectual Property and
Improvements. The Recipient must exclusively own, and retain
ownership thereof in Canada, the Project Intellectual Property, the
Project Intellectual Property Rights and improvements to products,
processes and equipment as a result of the Project for the Term,
unless otherwise agreed to by the Minister.

 

11.3        

Exploitation of Project Intellectual
Property. Unless otherwise agreed to by the Minister, the
Recipient must own or have sufficient Intellectual Property Rights
to use the Project Intellectual Property and to make, construct,
cause the construction, sell and cause the sale of the Resulting
Products.

 

11.4        

License
of Project Intellectual Property and Background Intellectual
Property.

 

11.4.1

Restriction on Licenses. Except as
provided in Subsection 11.4.2, the Recipient agrees not to grant
any right or license to any of the Project Intellectual Property or
Background Intellectual Property without the prior written consent
of the Minister.

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

11.4.2    
Permitted Licenses Without
Consent. If all the requirements in Subsection 11.4.3 are
satisfied, the Recipient may grant a right or license to any of the
Project Intellectual Property or Background Intellectual Property
provided that one or more of the following conditions is
met:

 

(a) 

the right or
license is [______];

(b) 

the right or
license is [______]; and

(c) 

the right or
license is [______].

 

[Conditions are omitted as
competitively sensitive
information.]

 

11.4.3
   Requirements For
Licenses Without Consent. The requirements (for the purposes
of Subsection 11.4.2) are:

   

(a) 

the right or
license cannot prevent the Recipient from fulfilling its
obligations in this Agreement; and

(b) 

the right or
license cannot prevent access, in any way, to treatments in
response to COVID-19 or Resulting Products in Canada or by
Canadians.

 

11.4.4
    Clarification
Regarding Background Intellectual Property. Notwithstanding
Subsections 11.4.1, 11.4.2 and 11.4.3, nothing herein shall limit
the Recipient’s ability to use, commercialize and/or exploit
the Background Intellectual Property, including licensing it to
third parties, outside of and separate from the Project in a manner
that would not restrict the development, commercialization or
exploitation of the Project Intellectual Property or making or
selling Resulting Products by the Recipient.

 

11.5       

Protection of Project Intellectual
Property. The Recipient shall take appropriate steps to
protect and enforce the Project Intellectual Property. The
Recipient shall provide information to the Minister in that regard,
upon request.

 

11.6        

Crown Ownership of Intellectual
Property. The Crown will not have an ownership interest in
the Project Intellectual Property nor will the Crown acquire new
rights in Background Intellectual Property by virtue solely of
having provided the Contribution. Rights attributed to the Crown in
any other way including under the Public Servants Inventions Act are not
in any way affected by this Agreement.

 

11.7    

Intellectual Property Strategy. The
Recipient will develop an Intellectual Property (IP) strategy that
will be shared with the Minister within [______] ([______]) months
of the Execution Date. This strategy will support the creation,
retention and protection of Intellectual Property ownership in
Canada; include training for employees that increases Intellectual
Property educational awareness and identify any planned
Intellectual Property training activities; include a plan to
commercialize Resulting Products domestically, including
Intellectual Property commercialization activities, such as
licensing, and anticipated collaboration activities, if any; and
include a current list of Background Intellectual Property. The
Recipient agrees to report annually on any changes to this strategy
[______]. [Number of months and
timeframe omitted as competitively sensitive
information.]

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

11.8        

Project Intellectual Property Use in Response
to COVID-19. The Minister may require the Recipient to
assign, transfer or grant a license to use the (i) Project
Intellectual Property and Project Intellectual Property Rights; and
(ii) Background Intellectual Property and Background Intellectual
Property Rights owned by the Recipient, or licensed by the
Recipient with the right to sub-license, to a third party approved
by the Minister upon written request from the Minister, but only to
the extent necessary to ensure a sufficient domestically-sourced
supply of treatments in response to COVID-19 should the Recipient
be unable to ensure such a supply.

 

12.         

Environmental and Other Requirements

 

12.1        

The Recipient
represents that the Project is not a “designated
project” and is not being carried out on “federal
lands” as such terms are defined in the Impact Assessment Act, 2019
(“IAA”).

 

12.2        

The Recipient
shall, in respect of the Project, comply with all federal,
provincial, territorial, municipal and other applicable laws,
including but not limited to, statutes, regulations, by-laws,
rules, orders, ordinances and decrees governing the Recipient or
the Project, or both, relating to environmental protection and the
successful implementation of and adherence to any mitigation
measures, monitoring or follow-up program that may be prescribed by
the Minister or other federal, provincial, territorial, municipal
tribunals or bodies, and certifies to the Minister that it has done
so to date.

 

12.3        

The Recipient will
provide the Minister with reasonable access to any Project site for
thepurpose of ensuring that the terms and conditions of any
environmental approval are met, and that any mitigation, monitoring
or follow-up measure required has been carried out.

 

12.4        

If as a result of
changes to the Project or otherwise, an assessment is required in
accordance with IAA for the Project, the Minister and the Recipient
agree that the Minister’s obligations under this Agreement
will be suspended from the moment that the Minister informs the
Recipient, until (i) a decision statement has been issued to the
Recipient or, if applicable, the Minister has decided that the
Project is not likely to cause significant adverse environmental
effects or the Governor in Council has decided that the significant
adverse environmental effects are justified in the circumstances,
and (ii) if required, an amendment to this Agreement has been
signed, setting out any conditions included in the decision
statement.

 

12.5        

Aboriginal consultation. The Recipient
acknowledges that the Minister’s obligation to pay the
Contribution is conditional upon Her Majesty satisfying any
obligation that Her Majesty may have to consult with or to
accommodate any Aboriginal groups, which may be affected by the
terms of this Agreement.

 

12.6        

Official Languages. The Recipient agrees that any
public acknowledgement of the Minister’s public support for
the Project will be expressed in both official
languages.

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

13.        

Indemnification and Limitation of Liability

 

13.1        

Indemnification. Except for any claims arising from the gross
negligence of, or willfulmisconduct by, the Minister’s employees,
officers, agents or servants, the Recipient agrees, at all times,
to indemnify and save harmless, the Minister and any of his
officers, servants, employees or agents from all and against all
claims and demands, actions, suits or other proceedings (and all
losses, costs and damages relating thereto) by whomsoever made,
brought or prosecuted (all of the foregoing collectively, the
“Claims”),  where such Claims are
 asserted or arise from the Minister being a Party to this
Agreement and exercising his rights and performing his obligations
under this Agreement, to the extent such Claims result
from:

 

 (a)       

the Project, its
operation, conduct or any other aspect thereof;

 

(b) 

the performance or
non-performance of this Agreement, or the breach or failure to
comply with any term, condition, representation or warranty of this
Agreement by the Recipient, its Affiliated Persons, its officers,
employees and agents, or by a third party or its officers,
employees, or agents;

 

(c) 

the design,
construction, operation, maintenance and repair of any part of the
Project; or,

 

(d) 

any omission or
other wilful or negligent act or delay of the Recipient, its
Affiliated Person or a third party and their respective employees,
officers, or agents.

 

13.2        

Limitation of Liability. Notwithstanding
anything to the contrary contained herein, the Minister shall not
be liable for any direct, indirect, special or consequential
damages of the Recipient nor for the loss of revenues or profits
arising from, based upon, occasioned by or attributable to the
execution of this Agreement, regardless of whether such a liability
arises in tort (including negligence), contract, fundamental breach
or breach of a fundamental term, misrepresentation, breach of
warranty, breach of fiduciary duty, indemnification or
otherwise.

 

13.3        

Her Majesty, her
agents, employees and servants will not be held liable in the event
the Recipient enters into a loan, a capital or operating lease or
other long-term obligation in relation to the Project for which the
Contribution is provided.

 

14.         

Default and Remedies

 

14.1       

Event of Default. The Minister may
declare that an Event of Default has occurred if:

 

(a) 

the Recipient has
failed or neglected to pay Her Majesty any amount due in accordance
with this Agreement;

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

(b) 

the Project is not
completed in accordance with Schedule 1 – Statement of Work to the
Minister’s satisfaction by the Project Completion Date or the
Project is abandoned in whole or in part;

 

(c) 

the Recipient has
not, in the opinion of the Minister, met or satisfied a term,
covenant or condition of this Agreement;

 

(d) 

the Recipient
becomes bankrupt or insolvent, goes into receivership, or takes the
benefit of any statute, from time to time in force, relating to
bankrupt or insolvent debtors;

 

(e) 

an order is made or
the Recipient has passed a resolution for the winding up or
dissolution of the Recipient, or the Recipient is dissolved or
wound up;

 

(f) 

the Recipient has,
in the opinion of the Minister, ceased to carry on business or has
sold all or substantially all of its assets or enters into a letter
of intent or binding obligation to sell all or substantially all of
its assets;

 

(g) 

the Recipient has
not met or satisfied a term or condition under any other
contribution agreement or agreement of any kind with Her
Majesty;

 

(h) 

the Recipient fails
to fulfill any of the contractual obligations set out in this
Agreement;

 

(i) 

a representation,
covenant, warranty or statement contained herein or in any
document, report or certificate delivered to the Minister hereunder
or in connection therewith is false or misleading at the time it
was made; and

 

(j) 

the Recipient fails
to comply with the obligations regarding audit and evaluation, as
set out in Section 9.

 

14.2         

Notice and Rectification Period. Except
in the case of an Event of Default under paragraphs (d), (e) and
(f) of Subsection 14.1 above, the Minister will not declare that an
Event of Default has occurred unlessthe Parties have attempted to
resolve the issue in accordance with Schedule 5 –
Resolution Process. If the
Parties are unable to resolve this issue, the Minister may give
written notice to the Recipient of the occurrence which, in the
Minister’s opinion, constitutes an Event of Default and the
Recipient fails, within thirty (30) days of receipt of the notice,
either to correct the condition or event or demonstrate, to the
satisfaction of the Minister that it has taken such steps as are
necessary to correct the condition, failing which the Minister may
declare that an Event of Default has occurred.

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

14.3        

Remedies on Default. If, after following
the process in Schedule 5 – Resolution Process, the Minister
declares that an Event of Default has occurred, the Minister may
immediately exercise one or more of the following remedies, in
addition to any remedy available at law:

 

(a) 

suspend or
terminate any obligation by the Minister to contribute or continue
to contribute to the Eligible Supported Costs including any
obligation to pay any amount owing prior to the date of such
suspension;

 

(b) 

require the
Recipient to repay to the Minister all or part of the Contribution
paid by the Minister, together with interest from the day of demand
at the Interest Rate;

 

(c) 

require the
Recipient to pay the Minister the total of all amounts required to
be repaid pursuant to this Agreement less any amount already repaid
to the Minister together with interest from the day of demand at
the Interest Rate;

 

(d)           

terminate the
Agreement; and

 

(e) 

post a notice on a
Government of Canada website disclosing that the Recipient has
committed an Event of Default under the provisions of thisAgreement
and describing generally the remedies, if any, that the Minister
has accordingly exercised.

 

14.4        

The Recipient
acknowledges the policy objectives served by the Minister’s
agreement to make the Contribution, that the Contribution comes
from the public monies, and that the amount of damages sustained by
Her Majesty in an Event of Default is difficult to ascertain and
therefore, that it is fair and reasonable that the Minister be
entitled to exercise any or all of the remedies provided for in
this Agreement and to do so in the manner provided for in this
Agreement, if an Event of Default occurs.

 

15.        

Miscellaneous

 

15.1 

Compliance with Lobbying Act. The
Recipient warrants and represents:

 

(a) 

that it has filed
all Lobbying Act returns
required to be filed in respect of persons employed by the
Recipient who communicate and/or arrange meetings with Public
Office Holders as part of their employment duties, and that it will
continue to do so;

 

(b) 

that it has not
contracted with any person to communicate and/or arrange meetings
with Public Office Holders for remuneration that is or would be
contingent in any way upon the success of such person arranging
meetings with Public Office Holders, or upon the approval of the
Recipient’s application for SIF funding, or upon the amount
of SIF funding paid or payable to the Recipient under this
Agreement;

 

 

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SIF
AGREEMENT NO. 811-513437

 

 

 

(c) 

that it will not
contract with any person to communicate and/or arrange meetings
with Public Office Holders for remuneration that is or would be
contingent upon the success of such person arranging meetings with
Public Office Holders, or upon the amount of SIF funding paid or
payable to the Recipient under this Agreement;

 

(d) 

all persons who are
or have been contracted by the Recipient to communicate and/or
arrange meetings with Public Office Holders in respect of this
Agreement are in full compliance with the registration and other
requirements of the Lobbying Act; and

 

(e) 

it shall at all
times ensure that any persons contracted to communicate
and/orarrange meetings with Public Office Holders in respect of the
Agreement are in full compliance with the requirements of the
Lobbying Act.

 

15.2

Members of Parliament. The Recipient
represents and warrants that no member of the House of Commons will
be admitted to any share or part of this Agreement or to any
benefit to arise therefrom. No person who is a member of the Senate
will, directly or indirectly, be a party to or be concerned in this
Agreement.

 

15.3        

Compliance with Post-Employment
Provisions. The Recipient confirms that no current or former
public servant or public officeholder to whom the Values and Ethics Code for the Public
Service, the Values and
Ethics Code for the Public Sector, the Policy on Conflict of Interest and
Post-Employment or the Conflict of Interest Act apply, will
derive a direct benefit from this Agreement unless the provision or
receipt of such benefits is in compliance with such legislation and
codes.

 

15.4        

The Recipient
acknowledges that the representations and warranties in this
section are fundamental terms of this Agreement. In the event of
breach of these, the Minister may exercise the remedies set out in
Subsection 14.3.

 

16.

Confidentiality

 

16.1        

Consent Required. Subject to Schedule 2
- Communications
Obligations, the Accessto Information Act, the Privacy Act and the Library and Archives Act of Canada,
each Party shall keep confidential and shall not without the
consent of the other Party disclose the contents of the Agreement
and the documents pertaining thereto, whether provided before or
after the Agreement was entered into, or of the transactions
contemplated herein.

 

 

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SIF
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16.2

International Dispute. Notwithstanding
Subsection 16.1 of this Agreement, the Recipient waives any
confidentiality rights to the extent such rights would impede Her
Majesty from fulfilling her notification obligations to a world
trade panel for the purposes of the conduct of a dispute, in which
Her Majesty is a party or a third party intervener. The Minister is authorized to
disclose the contents of this Agreement and any documents
pertaining thereto, whether predating or subsequent to this
Agreement, or of the transactions contemplated herein, where in the
opinion of the Minister, such disclosure is necessary to the
defence of Her Majesty’s interests in the course of a trade
remedy investigation conducted by a foreign investigative
authority, and is protected from public dissemination by the
foreign investigative authority. The Minister shall notify the
Recipient of such disclosure.

 

16.3     

Financing, Licensing and Subcontracting.
Notwithstanding Subsection 16.1 of this Agreement, the Minister
hereby consents to the Recipient disclosing this Agreement, and any
portion or summary thereof, for any of the following
purposes:

 

(a) 

securing additional
financing;

 

(b) 

licensing for
commercial exploitation; or

 

(c) 

confirming to
agents, contractors and subcontractors of the Recipient that all
agents, contractors and subcontractors must agree to provide the
Minister and the Auditor-General with access to their records and
premises, provided that any person to whom this Agreement or any
portion or summary thereof is disclosed shall execute a
non-disclosure agreement prior to such disclosure.

 

16.4        

Repayments. Notwithstanding Subsection
16.1 of this Agreement, the Minister may disclose any information
relating to the amount of each repayment made by the Recipient
whether due or paid.

 

17.

General

 

17.1        

Debt due to Canada. Any amount owed to
Her Majesty under this Agreement shall constitute a debt due to Her
Majesty and shall be recoverable as such. Unless otherwise
specified herein, the Recipient agrees to make payment of any such
debt forthwith on demand.

 

17.2        

Interest. Debts due to Her Majesty will
accrue interest in accordance with the Interest and Administrative Charges
Regulations, in effect on the due date, compounded monthly
on overdue balances payable, from the date on which the payment is
due, until payment in full is received by Her Majesty. Any such
amount is a debt due to Her Majesty and is recoverable as
such.

 

17.3        

Set-off Rights of Minister. Without
limiting the scope of the set-off rights provided for under the
Financial Administration
Act, it is understood that the Minister may set off against
the Contribution any amounts owed by the Recipient to the Minister
under legislation or contribution agreements and the Recipient
shall declare to the Minister all amounts outstanding in that
regard when making a claim under this Agreement.

 

 

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17.4        

No Assignment of Agreement. No Party
shall assign the Agreement or any part thereof without the prior
written consent of the Minister. Any attempt by a Party to assign
this Agreement or any part thereof, without the express written
consent of the Minister, is void.

 

17.5        

Annual Appropriation. Any payment by the
Minister under this Agreement is subject to there being an
appropriation for the Government Fiscal Year in which the payment
is to be made; and to cancellation or reduction in the event that
departmental funding levels are changed by Parliament. If the
Minister is prevented from disbursing the full amount of the
Contribution due to a lack or reduction of appropriation or
departmental funding levels, the Minister and the Recipient agree
to review the effects of such a shortfall in the Contribution on
the implementation of this Agreement.

 

17.6        

Successors and Assigns. This Agreement
is binding upon the Recipient, its successors and permitted
assigns.

 

17.7        

Event of Force Majeure. The Recipient
will not be in default by reason only of any failure in the
performance of the Project in accordance with Schedule 1 –
Statement of Work if such
failure arises without the fault or negligence of the Recipient and
is caused by any event of Force Majeure.

 

17.8        

Applicable Law. This Agreement will be
interpreted in accordance with the laws of the province of Ontario
and federal laws of Canada applicable therein. The word
“law” used herein has the same meaning as in the
Interpretation Act, as
amended.

 

17.9        

Dispute Resolution. If a dispute arises
concerning the application or interpretation of this Agreement, the
Parties will attempt to resolve the matter through good faith
negotiation, and may, if necessary and the Parties consent in
writing, resolve the matter through mediation or arbitration by a
mutually acceptable mediator or by arbitration in accordance with
the Commercial Arbitration Code set out in the schedule to the
Commercial Arbitration Act
(Canada), as amended, and all regulations made pursuant to
that Act.

 

17.10

No Amendment. No amendment to this
Agreement shall be effective unless it is made in writing and
signed by the Parties hereto.

 

17.11

Contribution Agreement Only. This
Agreement is a contribution agreement only, not a contract for
services or a contract of service or employment, and nothing in
this Agreement, the Parties relationship or actions is intended to
create, or be construed as creating, a partnership, employment or
agency relationship between them. The Recipient is not in any way
authorized to make a promise, agreement or contract and to incur
any liability on behalf of Her Majesty or to represent itself as an
agent, employee or partner of Her Majesty, including in any
agreement with a third party, nor shall the Recipient make a
promise, agreement or contract and incur any liability on behalf of
Her Majesty, and the Recipient shall be solely responsible for all
deductions and remittances required by law in relation to its
employees.

 

 

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17.12

No Waiver. The rights and remedies of
the Minister under this Agreement shall be cumulative and not
exclusive of any right or remedy that he or she would otherwise
have. The fact that the Minister refrains from exercising a remedy
he or she is entitled to exercise under this Agreement will not
constitute a waiver of such right and any partial exercise of a
right will not prevent the Minister in any way from later
exercising any other right or remedy under this Agreement or other
applicable law.

 

17.13

Consent of the Minister. Whenever this
Agreement provides for the Minister to render a decision or for the
Recipient to obtain the consent or agreement of the Minister, such
decision shall be reasonable on the facts and circumstance and such
consent or agreement will not be unreasonably withheld but the
Minister may make the issuance of such consent or agreement subject
to reasonable conditions.

 

17.14

No conflict of interest. The Recipient
and its Affiliated Persons, consultants and any oftheir respective
advisors, partners, directors, officers, shareholders, employees,
agents and volunteersshall not engage in any activity where such
activity creates a real, apparent or potential conflict of interest
in the sole opinion of the Minister, with the carrying out of the
Project. For greater certainty, and without limiting the generality
of the foregoing, a conflict of interest includes a situation where
anyone associated with the Recipient owns or has an interest in an
organization that is carrying out work related to the
Project.

 

17.15

Disclose potential conflict of interest.
The Recipient shall disclose to the Minister without delay any
actual or potential situation that may be reasonably interpreted as
either a conflict of interest or a potential conflict of
interest.

 

17.16

Severability. Any provision of this
Agreement which is prohibited by law or otherwise deemed
ineffective will be ineffective only to the extent of such
prohibition or ineffectiveness and will be severable without
invalidating or otherwise affecting the remaining provisions of the
Agreement.

 

17.17

Signature in Counterparts. This
Agreement may be signed in counterparts and such counterparts may
be delivered by acceptable electronic transmission, including
portable document format (PDF), each of which when executed and
delivered is deemed to be an original, and when taken together,
will constitute one and the same Agreement.

 

17.18

  
Currency. Unless otherwise
indicated, all dollar amounts referred to in this Agreement are to
the currency of Canada.

 

17.19

Tax. The Recipient acknowledges that
financial funding from government programs may have tax
implications for its organization and that advice should be
obtained from a qualified tax professional.

 

 

31

SIF
AGREEMENT NO. 811-513437

 

 

 

18. 

Contact Information & Notices

 

18.1       

Form and Timing of Notice. Any notice or
other communication under this Agreement shall be made in writing.
The Minister or the Recipient may send any written notice by any
pre-paid method, including regular or registered mail, courier or
email. Notice will be considered as received upon delivery by the
courier, upon the Party confirming receipt of the email or one
(1) day after the email is
sent, whichever the sooner or five (5) calendar days after being
mailed.

 

18.2       

Any notices to the
Minister in fulfillment of obligations such as claims, reporting,
and any other documents stipulated under
this Agreement, will be addressed to:

 

Strategic
Innovation Fund

Attn: Senior Director

8th
Floor

235
Queen Street

Ottawa,
Ontario K1A 0H5

Fax No:
(613) 954-5649

Email
address: to be provided by SIF upon request from the
Recipient.

 

Notwithstanding
the foregoing, claims forms will not be sent by email unless
otherwise agreed to in writing by the Minister.

 

18.3       

Any notices to the
Recipient will be addressed to:

 

Edesa
Biotech Research, Inc.

Attn:
President

100 Spy
Court

Markham, ON L3R
5H6

Email
address: to be provided by the Recipient to SIF.

 

 

Any
notices to the Guarantor will be addressed to:

 

Edesa
Biotech, Inc.

Attn:
CEO

100 Spy
Court

Markham, ON L3R
5H6

Email
address: to be provided by the Recipient to SIF.

 

18.4       

Change of Contact Information. Each of
the Parties may change the address, which they have stipulated in
this Agreement by notifying in writing the other Party of the new
address, and such change shall be deemed to take effect fifteen
(15) calendar days after receipt of such notice.

 

 

[REMAINDER
OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

 

 

 

 

 

 

32

SIF
AGREEMENT NO. 811-513437

 

 

 

IN WITNESS WHEREOF the Parties hereto have executed this
Agreement through duly authorized representatives.

 

 

HER MAJESTY THE QUEEN IN RIGHT OF CANADA

as
represented by the Minister of Industry

 

 

	

Per:        
/s/Colette
Kaminsky                           

	

    January 9,
2021

	

Strategic
Innovation Fund

	

Date

	

Colette
Kaminsky, Director General

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Edesa Biotech Research, Inc.

	
 

	
 

	
 

	

Per:        
/s/ Michael
Brooks                             

	

     February 2,
2021

	

              
Michael
Brooks, President

	

             
Date

	
 

	
 

	

              
I have
the authority to bind the Corporation.

	
 

	
 

	
 

	
 

	
 

	

Edesa Biotech, Inc.

	
 

	
 

	
 

	

Per:       
/s/Pardeep
Nijhawan                            

	

     February 1,
2021

	

Pardeep
Nijhawan, CEO

	

Date

	

 

	
 

	
 

	
 

	
 

	
 

	

             
I have
the authority to bind the Corporation.

	
 

 

 

 

 

 

 

33

SIF
AGREEMENT NO. 811-513437

 

 

SCHEDULE 1 - STATEMENT OF WORK (SOW)

 

 

[______]

 

[Statement of Work, including the
nature of work related to the Project, timeframes, milestones and
cost breakdowns, omitted as competitively sensitive
information.]

 

 

 

 

 

 

34

SIF
AGREEMENT NO. 811-513437

 

 

SCHEDULE 2 - COMMUNICATIONS OBLIGATIONS

 

 

[______]

 

 
[Nature of communications obligations pursuant
to this Agreement omitted as competitively sensitive
information.]

 

 

 

 

 

35

SIF
AGREEMENT NO. 811-513437

 

 

SCHEDULE 3 - COST PRINCIPLES

 

[______]

 

[Nature of cost principles
pursuant to this Agreement omitted as competitively sensitive
information.]

 

 

 

 

 

 

36

SIF
AGREEMENT NO. 811-513437

 

 

SCHEDULE 4 - REPORTING REQUIREMENTS

 

[______]

 

 
[Nature of reporting requirements pursuant to
this Agreement omitted as competitively sensitive
information.]

 

 

 

 

 

37

SIF
AGREEMENT NO. 811-513437

 

 

SCHEDULE 5 – RESOLUTION PROCESS

 

[______]

 

 
[Nature of resolution process omitted as
competitively sensitive information.]

 

 

 

 

 

38

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