Document:

Agreement dated July 17, 2006

 Exhibit 10.36 
 

 
 Norwich Union Customer Services (Singapore) Pte Ltd 
 NORWICH UNION CUSTOMER SERVICES (SINGAPORE) PTE LTD (“NUCSS”) to 
 EXLSERVICE HOLDINGS, INC (“EXL Inc”) 
 EXL SERVICE.COM (INDIA) PRIVATE LIMITED (“EXL India”) 
 NOIDA CUSTOMER OPERATIONS PRIVATE LIMITED (“NCOP”) 
 July 17, 2006 
 Dear Sirs, 
 I refer to various agreements between us and dated 26th August 2004. These
relate to the establishing by you of NCOP as a company to be used to provide insurance services to NUCSS and set out the terms on which such services are to be provided to NUCSS. 
 Pursuant to a Virtual Shareholders Agreement (“VSA”) dated 26th August 2004 and made between NUCSS, EXL Inc. EXL India and NCOP, it was agreed that NUCSS would have the option of purchasing all the Shares of NCOP from EXL Inc by giving six months’ notice of its intention to do so.
Pursuant to clause 10 of the VSA, such notice is not to be given less than 30 months after the date of an insurance Services Framework Agreement (“ISFA”) dated 26th August 2004 and made between NUCSS and EXL Inc unless that ISFA has been terminated earlier by NUCSS according to clause 15 thereof. Clause 11 of the VSA
gives EXL Inc the option of requiring NUCSS to purchase the shares of NCOP where EXL Inc has terminated the ISFA pursuant to clause 15 aforesaid. Where NUCSS is to acquire the shares in NCOP, whether as a result of the exercise of the option by it
or by EXL Inc. the sale of those shares shall be concluded in accordance with a Share Sale & Purchase Agreement ((“SSPA”) to be entered into by the parties in the agreed form set out in Appendix 1 of the VSA. 
 Capitalised terms not expressly defined in this letter shall, unless otherwise specified or inconsistent with the context, have the meanings ascribed to them in the
ISFA. 
 It is agreed as follows: 
 a) Notwithstanding clause 10 of the VSA, it has been agreed by the parties that NUCSS shall not exercise its option to acquire the shares in NCOP earlier than 1st January 2008 which means that NUCSS will not serve an option notice pursuant to clause 10.2 of the VSA before 1st July 2007. 
 b) Notwithstanding a) above, the
parties have agreed that 3 calendar months after the service of the option notice pursuant to clause 10.2 of the VSA, day to day operational management of NCOP shall transfer to NUCSS. Such a transfer of operational management shall have no impact
on the Charges, in particular the Management Fee (which shall continue to be paid in accordance with Schedule 3 of the ISFA). 
 c) Notwithstanding the terms
of the ISFA no Insurance Service Work Order shall be terminated for convenience before 1st July 2007.

 d) In consideration for the above, EXL Inc shall waive in its entirely NUCSS’s liability for payment of the Break Option fee for (i) termination
of any Insurance Service Work Order 

  

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under Clause 14.4 of the ISFA provided six months notice is given and that such termination of insurance Services Work Order is effected on or after
1st July 2007 or (ii) on termination of the ISFA on Completion of the SSPA. 
 e) It is further agreed by the parties that, with effect from the date that a copy of this letter has been signed by EXL Inc. EXL India and NCOP, the agreed form SSPA in
Appendix 1 of the VSA shall be replaced by a new SSPA as attached to this letter. This letter shall constitute the parties’ written consent pursuant to clauses 16.4 of the VSA and 9.6.2 of an Umbrella Agreement dated 26th August 2004 between NUCSS. EXL Inc. EXL India and NCOP to the amendment of the VSA by the substituting of the SSPA in
Appendix1 of the VSA with the SSPA attached hereto. In all other respects, the VSA shall continue to have full force and effect. 
 This letter may be
executed in any number of counterparts, each of which, when executed and delivered, will be an original, and all the counterparts together will constitute one and the same istrument. The parties agree to accept delivery of an executed counterpart by
facsimile transmission. 
 Kindly confirm your agreement to the terms of this letter by countersigning the enclosed copy and returning It to me. 

 

	
	Yours faithfully
	
	 

	Authorised Signatory & Director
	NUCSS
	
	On behalf of
	I agree to the terms of this letter.
	
	 

	Authorised Signatory & Director
	EXLSERVICE HOLDINGS, INC
	
	On behalf of
	I agree to the terms of this letter.
	
	 

	Authorised Signatory & Director
	EXL SERVICE.COM (INDIA) PRIVATE LIMITED
	
	On behalf of
	I agree to the term of this letter.
	
	 

	Authorised Signatory & Director
	NOIDA CUSTOMER OPERATIONS PRIVATE LIMITED
	EXLSERVICE HOLDINGS, INC

  

 2 

 DATED 
  

	(1)	EXLSERVICE HOLDINGS, INC 

  

	(2)	NORWICH UNION CUSTOMER SERVICES (SINGAPORE) PTE LTD 

 SHARE SALE AND PURCHASE AGREEMENT 
 (RELATING TO NOIDA CUSTOMER OPERATIONS PRIVATE LIMITED) 
  

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 CONTENTS 
  

					
			
	1    	  	DEFINITIONS AND INTERPRETATION	  	
			
	2	  	PRELIMINARY STATEMENTS	  	
			
	3	  	SALE AND PURCHASE	  	
			
	4	  	CONSIDERATION	  	
			
	5	  	CONDITION PRECEDENT	  	
			
	6	  	COMPLETION	  	
			
	7	  	WARRANTIES	  	
			
	8	  	LIMITATIONS ON LIABILITY OF EXL HOLDINGS (US)	  	
			
	9	  	ANCILLARY PROVISIONS	  	
		
	SCHEDULE 1 – WARRANTIES	  	
		
	SCHEDULE 2 – COMPLETION REQUIREMENTS	  	

  

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 SHARE SALE AND PURCHASE AGREEMENT 
 Dated: 
 BETWEEN: 
  

	(1)	Exlservice Holdings, Inc, a company registered in the State of Delaware and having its principal office at 350 Park Avenue, 10th Floor, New York, NY 10022 (“EXL Holdings (US)”); and 

  

	(2)	Norwich Union Customer Services (Singapore) Pte Ltd, a company registered in Singapore with registered number 200303457R and whose registered office is at 4 Shenton Way,
#27-02 SGX Centre 2, Singapore 068807 (the “Client”). 

  

	1	DEFINITIONS AND INTERPRETATION 

 In this Agreement,
unless inconsistent with the context or otherwise specified: 
  

	1.1	the following expressions have the following meanings: 

  

			
		
	“Accounts”	  	 :         the most recent audited consolidated balance sheet and audited consolidated profit
and loss account of SPV, and the directors’ report and other documents annexed to them;

		
	“this Agreement”	  	 :         this agreement, as varied from time to time in accordance with its terms, and including
all schedules and appendices;

		
	“Asset Funding”	  	 :          an amount representing any pre-payment provided by the Client to EXL Holdings (US) or the SPV for the provision of assets which has not been written down to nil in the books
of EXL Holdings (US) or the SPV (as the case may be) prior to Completion;

		
	“Auditors”	  	 :         Ernst & Young or any other firm of auditors appointed by SPV from time to time with
the prior written consent of the Client;

		
	“Business Day”	  	 :         a day other than a Saturday or Sunday or public holiday in the United Kingdom, United
States of America and in India;

		
	“Completion”	  	 :         completion of the sale and purchase of the Shares in accordance with clause
6;

		
	“Encumbrance”	  	 :         a mortgage, charge, pledge, lien, option, restriction, right of first refusal, right of
pre-emption, third party right or interest, other encumbrance or security interest of any kind, or another type of preferential arrangement (including, without limitation, a title transfer and retention arrangement) having similar effect but
excluding any such encumbrance imposed by the Government of India otherwise than as a result of any act or omission of EXL Holdings (US);

  

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	“Government of India”	  	 :         shall mean any government, regulatory authority, governmental department, agency,
commission, board, tribunal or court or other law, rule or regulation-making entity, having or purporting to have jurisdiction on behalf of the Republic of India, or province or state or other subdivision thereof or any municipality, district or
other subdivision thereof;

		
	“Independent Accountants”	  	 :         Deloitte & Touche or such other firm of accountants as may be nominated by
agreement of all the Parties;

		
	“Insurance Services Framework Agreement”	  	 :         means an agreement dated 26th August 2004 and made between the Client and EXL Holdings (US);

		
	“Insurance Services Work Order”	  	 :         has the meaning given to it in schedule 1 of the Insurance Services Framework
Agreement;

		
	“Last Accounting Date”	  	 :         the date to which the Accounts were made up;

		
	“Net Asset Value” or “NAV”	  	 :         the aggregate value of the assets-

		
		  	 (a) less the aggregate value of the liabilities, and
  
 (b) less any Asset Funding.
  
 in each case of the SPV as at the close of business on the date of Completion, as
determined by the Auditors pursuant to clause 4. For the avoidance of doubt, any items of capital expenditure by or on behalf of the SPV which have not previously been approved in accordance with the Budget Process set out in Part B of Schedule 3 of
the Insurance Services Framework Agreement shall be disregarded for the purposes of determining the NAV. Further, for the purposes of determining the NAV, all the capital assets of NCOP shall be depreciated over a period of 3
years

		
	“Parties”	  	 :         The parties to this Agreement; and “Party” means either one of
them;

		
	“Properties”	  	 :         the property or properties owned, used or occupied by the SPV as at the date of this
Agreement;

		
	“Shares”	  	 :         all of the issued shares in the capital of SPV;

		
	“SPV”	  	 :         Noida Customer Operations Private Limited a private company limited by shares
incorporated in India under registered number U72900DL2003PTC122175 and whose registered office is at 103A Ashoka Estate,

  

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		  	          Barakhamba Road, New Delhi 110 001;

		
	“Tax Authority”	  	 :        Any local, municipal, governmental, state, federal or other fiscal or revenue authority,
body or official anywhere in the world (which shall include reference to customs and excise authorities) competent to impose Taxation;

		
	“Tax or Taxation”	  	 :        Includes any form of taxation, levy, duty, charge, contribution or impost of whatever
nature (including any applicable fine, penalty, surcharge or interest) imposed by a Tax Authority;

		
	“Umbrella Agreement”	  	 :        the umbrella agreement, dated 26th August 2004, between (1) the Client, (2) EXL Holdings (US), (3) EXL (India) and (4) the SPV;

		
	“Virtual Shareholders’ Agreement”	  	 :        The virtual shareholders’ agreement, dated 26th August 2004, between (1) the Client, (2) EXL Holdings (US), EXL India and (4) the SPV;

		
	“Warranties”	  	 :        the warranties set out in clause 7 and schedule 1; and

  

	1.2	the provisions of clauses 1.2 to 1.14 of the Virtual Shareholders’ Agreement shall apply to this Agreement as they apply to the Virtual Shareholders’ Agreement.

  

	2	PRELIMINARY STATEMENTS 

  

	2.1	This Agreement is entered into pursuant to the Virtual Shareholders’ Agreement. 

  

	2.2	EXL Holdings (US) warrants to the Client that 9,999 ordinary shares of SPV are owned by EXL (India) and one share is held by Rajiv Kishan Luthra (as nominee of EXL (India)) and that
it can procure the sale of those shares to the Client. 

  

	2.3	EXL Holdings (US) wishes EXL (India) to sell and the Client wishes to buy the Shares on the terms and subject to the conditions of this Agreement. 

  

	3	SALE AND PURCHASE 

  

	3.1	EXL Holdings (US) shall procure the sale by EXL (India) of the Shares as beneficial owner and the Client shall buy the Shares free from any Encumbrance, and together with all rights
now and hereafter attaching or accruing to them and all dividends and distributions declared, made or paid on or after the date of Completion. 

  

	3.2	The Client shall not be obliged to complete the purchase of any of the Shares unless the purchase of all of the Shares is completed simultaneously. However, completion of the
purchase of some of the Shares will not affect the rights of the Client with respect to the others. 

  

	3.3	For so long after Completion as EXL (India) remains the registered holder of any of the Shares, EXL Holdings (US) shall procure that EXL (India) holds them and any distributions,
property and rights deriving from them in trust for the Client and shall deal with the Shares and any distributions, property and rights deriving from them as the Client directs. 

  

	4	CONSIDERATION 

  

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	4.1	The consideration for the Shares (“the Consideration”) shall comprise the Net Asset Value. 

  

	4.2	Not less than 15 Business Days prior to Completion, EXL Holdings (US) shall deliver to the Client a bona fide written estimate of the likely Net Asset Value as at Completion
(“the Provisional Consideration”), whereupon the Parties shall negotiate in good faith to determine the amount of Provisional Consideration to be paid at Completion by the Client pursuant to clause 6.2. If the parties are unable to agree
upon the amount of Provisional Consideration within five Business Days of the receipt by the Client of the aforementioned estimate, then the issue shall be referred to the Independent Accountants for determination in accordance with the terms of
this Agreement and, in particular, clauses 4.7 and 4.8 below. 

  

	4.3	The Client shall procure that the Auditors shall determine the Net Asset Value and deliver to EXL Holdings (US) a draft statement of the Net Asset Value as soon as practicable after
Completion and, in any event, within 30 Business Days after the date of Completion. Insofar as it relates to NAV, the statement shall be drawn up from the accounting records of the SPV on a going concern basis in accordance with:

  

	 	4.3.1	the accounting policies set out in clause 4.4; 

  

	 	4.3.2	(to the extent not inconsistent with clause 4.3.1) the accounting policies, estimation techniques and measurement bases used for the preparation of the Accounts; and

  

	 	4.3.3	(to the extent not inconsistent with clauses 4.3.1 and 4.3.2) US generally accepted accounting principles as at the date of Completion. 

  

	4.4	The policies mentioned in clause 4.3.1 are as follows: 

  

	 	4.4.1	no value shall be attributed to intangible assets; 

  

	 	4.4.2	the value attributed to any asset which was acquired by the SPV to replace a destroyed or lost asset shall be the value which would have been attributed to the destroyed or lost
asset had it not been destroyed or lost. 

  

	4.5	EXL Holdings (US) shall be entitled (but not obliged), at its own cost, to undertake (or procure its accountants to undertake) a review of the statement delivered to it under clause
4.3 and the Client shall provide to EXL Holdings (US) and its accountants all reasonable assistance reasonably required by EXL Holdings (US) and/or (as the case may be) its accountants in order to enable EXL Holdings (US) to exercise its rights
under this clause 4. EXL Holdings (US) shall be entitled to notify the Client that it disagrees with the draft statement of NAV, any such notification to give reasons in detail for such disagreement and, if such review is undertaken by EXL Holdings
(US)’s accountants, to be accompanied by a letter from those accountants supporting such disagreement and such reasons. EXL Holdings (US) shall not be entitled to give such notification to the Client at any time after the date 20 Business Days
after delivery to it of the draft statement and following such date EXL Holdings (US) shall in the absence of any prior notification be deemed to have agreed such draft statement in the form delivered to it. 

  

	4.6	In the event that a notification of disagreement is given to the Client in accordance with clause 4.5, the Parties shall (in conjunction with the Auditors and (if relevant) EXL
Holdings (US)’s accountants) meet and discuss EXL Holdings (US)’s objections to the draft statement referred to in the notification (and any other matters which are raised by the Client) in order to seek to reach agreement upon such
adjustments (if any) to the draft statement of the NAV as are acceptable to the Parties so as to enable such draft to be finalised. 

  

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	4.7	If the Parties are unable to resolve any differences of views within 15 Business Days following the receipt by the Client of the notification of disagreement pursuant to clause 4.5,
the matters in dispute shall be referred to the Independent Accountants for determination. The Independent Accountants shall act as experts and not as arbitrators and their decision (in the absence of manifest error) shall be final and binding on
the Parties. The fees of the Independent Accountants shall be payable by the Parties in such proportions as the Independent Accountants determine. 

  

	4.8	The Independent Accountants shall decide the procedures to be followed in the determination, but the following provisions shall apply in any event: 

  

	 	4.8.1	the outstanding matters in dispute shall be notified to the Independent Accountants in writing by the Client and/or EXL Holdings (US) within five Business Days of the Independent
Accountants’ appointment; 

  

	 	4.8.2	the Independent Accountants’ terms of reference shall be to determine the outstanding matters in dispute, including the finalisation of the form and content of the statement of
the NAV, taking into account the provisions of this Agreement, within 15 Business Days of receipt of each Party’s submissions referred to in clause 4.8.5, or as soon as practicable afterwards; 

  

	 	4.8.3	EXL Holdings (US) and/or EXL Holdings (US)’s accountants and the Client and/or the Auditors shall each promptly prepare a written statement setting out their respective
positions on the matters in dispute (“Opening Submissions”) and shall, within 10 Business Days of the appointment of the Independent Accountants, deliver to them two copies of their respective Opening Submissions (together with any
necessary and relevant supporting documentation); 

  

	 	4.8.4	the Parties shall procure that, upon receipt of both Parties’ Opening Submissions, the Independent Accountants shall arrange for a copy of EXL Holdings (US)’s Opening
Submissions to be delivered to the Client, and a copy of the Client’s Opening Submissions to be delivered to EXL Holdings (US); 

  

	 	4.8.5	within 10 Business Days of such delivery, the Parties shall each comment in writing on the Opening Submissions and documentation submitted by the other Party (“Submissions in
Reply”), and two copies of such Submissions in Reply shall be addressed and delivered to the Independent Accountants; and 

  

	 	4.8.6	the Parties shall procure that, upon receipt of both Parties’ Submissions in Reply, the Independent Accountants shall arrange for a copy of EXL Holdings (US)’s Submissions
in Reply to be delivered to the Client, and a copy of the Client’s Submissions in Reply to be delivered to EXL Holdings (US). 

  

	 	4.8.7	the Parties shall require the Independent Accountants to deliver their decision in writing to each of the Parties as soon as possible after each of the Parties has complied with its
obligations under this clause 4.8 and, in any event, within 15 business days of both Parties complying with 4.8.5 and any request made by the Independent Accountants pursuant to clause 4.9. below. 

  

	4.9	The Parties shall co-operate with the Independent Accountants and comply with any reasonable requests made in connection with the carrying out of their duties under this Agreement.

  

	4.10	Nothing in this clause 4 shall entitle a Party or the Independent Accountants access to any information or document which is protected by legal professional privilege, or which has
been prepared by the other Party or its accountants and other professional advisers with a view to assessing the merits of any claim or argument. 

  

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	4.11	The determination pursuant to 4.7 of the Net Asset Value shall not adversely affect, limit or prejudice or constitute a waiver of any right or remedy of the Client in relation to
any claim which it may have against EXL Holdings (US) in respect of any breach of any of the Warranties or under any of the other provisions of this Agreement. 

  

	4.12	If the aggregate amount, as agreed by the Parties pursuant to clause 4.5 above or determined pursuant to clause 4.7 above is:- 

  

	 	4.12.1	greater than the amount of the Provisional Consideration paid pursuant to clause 6.2 below, the Client shall, within seven business days of such agreement or determination, pay the
amount of the difference by telegraphic transfer for same day value to the bank account nominated by EXL Holdings (US) for this purpose; or 

  

	 	4.12.2	less than the amount of the Provisional Consideration paid pursuant to clause 6.2 below, EXL Holdings (US) shall, within seven business days of such agreement or determination, pay
to the Client the amount of the difference by telegraphic transfer for same day value to the bank account nominated by the Client for this purpose. 

  

	5	CONDITION PRECEDENT 

  

	5.1	Completion is conditional upon the obtaining of any regulatory consent to the completion of the matters contemplated by this Agreement on or before the date 120 Business Days after
the date of this Agreement (or such later date as the Parties may agree in writing): 

  

	5.2	Each of the Parties shall use its reasonable endeavours to ensure that the condition specified in clause 5.1 is satisfied as soon as possible and, in any event, not later than the
date specified in that clause. 

  

	5.3	If the condition set out in clause 5.1 shall not have been fully satisfied by the date specified in that clause, or if such condition shall cease to be capable of being satisfied by
that date, then this Agreement shall immediately lapse and cease to have effect and neither Party shall have any claim against the other in respect of this Agreement except in relation to any prior breach of this Agreement. 

 

	5.4	Despite clause 5.1, each of the Parties shall perform and observe its obligations under this Agreement which, expressly or by implication, are required to be performed or observed
at any time prior to the earlier of (a) the time when this Agreement lapses in accordance with clause 5.3 and (b) the fulfilment of the condition set out in clause 5.1. 

  

	6	COMPLETION 

  

	6.1	Completion shall take place at the Client’s registered office at 10.00 am on the next month end after the date 20 Business Days after the date of this Agreement or at such
other place, time or day as shall be mutually agreed between the Parties. 

  

	6.2	On Completion, the Parties will comply with their respective obligations in schedule 2 and the Client shall pay the Provisional Consideration by telegraphic transfer for same day
value to the bank account nominated by EXL Holdings (US) for this purpose. 

  

	6.3	If any of the requirements of schedule 2 (to the extent not previously waived in terms of this Agreement) are not complied with on the date fixed for Completion, the Client may
(without prejudice to its other rights and remedies, including the right to claim damages for the breach): 

  

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	 	6.3.1	defer Completion to a date not more than 30 days after such date (and so that the provisions of this clause 6.3 shall apply to Completion as so deferred); or

  

	 	6.3.2	proceed to Completion so far as practicable (without prejudice to its rights under this Agreement); or 

  

	 	6.3.3	rescind this Agreement without liability on its part; or 

  

	 	6.3.4	waive all or any of the obligations in question.  

  

	7	WARRANTIES 

  

	7.1	EXL Holdings (US) warrants to the Client in the terms set out in schedule 1 subject as provided in this clause 7 and clause 8 and further that the Warranties shall be true and
accurate in all material respects and fulfilled down to Completion in all material respects as if they had been made or given at Completion (on the basis that references in the Warranties to any fact, matter or thing existing, occurring or having
occurred at or on and/or before or after (and similar terms) the date of this Agreement shall be construed as references to it having so done at or on and/or before or after (and similar terms) the date of Completion). 

  

	7.2	EXL Holdings (US) is aware and acknowledges that the Client has entered into this Agreement in reliance on the Warranties. 

  

	7.3	The Warranties are given subject to any matters fully and fairly disclosed in the disclosure letter which EXL Holdings (US) may deliver to the Client not later than 10 Business Days
after the date of this Agreement, provided that (a) such matters have arisen in the ordinary course of the business of the SPV carried on in all material respects in compliance with the terms of the Virtual Shareholders’ Agreement and the
Agreements (as that expression is defined in the Virtual Shareholders’ Agreement); and (b) the reduction in the value of the assets of the Group, the liabilities or increased liabilities of the Group or the reduction in the value of the
Shares (as the case may be) arising, directly or indirectly, from such matters is less than £100,000. The letter shall be in the form set out in schedule 3. If any matter is disclosed in the letter which, if not disclosed, would have
constituted a material breach of any of the Warranties, the Client may at any time before Completion, by written notice to EXL Holdings (US), rescind this Agreement and none of the Parties shall have any claim against the other in respect of this
Agreement except in relation to any prior breach of this Agreement. 

  

	7.4	The rights and remedies of the Client in respect of any breach of the Warranties shall not be affected by Completion. 

  

	7.5	Each of the Warranties set out in each paragraph of schedule 1 is separate and independent and unless otherwise expressly provided shall not be limited by reference to any other
Warranty or anything in this Agreement. 

  

	7.6	EXL Holdings (US) undertakes (except only as may be necessary to give effect to this Agreement or except with the written consent of the Client) that it will not and will procure
that the SPV will not do, allow or procure any act or omission before Completion which would constitute a material breach of or would be inconsistent in any material respect with any of the Warranties if given at any time prior to Completion. In
addition, EXL Holdings (US) will and will procure that the SPV will provide all reasonable co-operation to the Client to ensure the efficient continuation of operation and management of the SPV and, if necessary, to prepare for the introduction of
new operating and management procedures in readiness for Completion. 

  

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	7.7	If in respect of or in connection with any breach of any of the Warranties any sum payable to the Client by EXL Holdings (US) by way of compensation is subject to Taxation, then
such further amount shall be paid to the Client by EXL Holdings (US) so as to secure that the net amount received by the Client is equal to the amount of compensation due to it in respect of such breach. 

  

	8	LIMITATIONS ON LIABILITY OF EXL HOLDINGS (US) 

  

	8.1	EXL Holdings (US) shall not be liable in respect of a claim for breach of the Warranties:- 

  

	 	8.1.1	unless and until the amount that would otherwise be recoverable from it (but for this clause 8.1) in respect of that claim, when aggregated with any other amount or amounts
recoverable in respect of other claims against it, exceeds £100,000; and 

  

	 	8.1.2	unless the amount of such claim exceeds £10,000. 

  

	8.2	The total aggregate liability of EXL Holdings (US) in respect of all claims for breach of the Warranties is limited to the lesser of:- 

  

	 	(a)	£5,000,000 (five million pounds sterling); or 

  

	 	(b)	an amount equal to the aggregate of all amounts paid by Client to EXL Holdings (US) by way of Profit Levels as defined in the Service Payments section of Schedule 3 of the Insurance
Services Framework Agreement (but not otherwise) pursuant to the Insurance Services Framework Agreement in the period of three years preceding Completion. 

  

	8.3	EXL Holdings (US) shall not be liable for a claim for breach of the Warranties unless the Client has given EXL Holdings (US) notice of the claim, stating in reasonable detail the
nature of the claim, and if practicable, the amount claimed: 

  

	 	8.3.1	in respect of a claim for breach of a Warranty relating to Taxation on or before the date which is seven years and one month from the Last Accounting Date; or

  

	 	8.3.2	in respect of any other claim, on or before the date two months after signature of the Auditors’ report on the accounts of the SPV for the financial year during which
Completion takes place. 

  

	8.4	EXL Holdings (US) shall not have any liability under the Warranties in paragraph 2 of schedule 1 in respect of any Tax levied by a Tax Authority which arises after Completion and
which the Client is reasonably satisfied has not arisen because of a failure by EXL Holdings (US) or the SPV to manage its affairs in the manner of a normally competent business person mindful of the need to mitigate its Tax liabilities both before
and after Completion. 

  

	8.5	EXL Holdings (US) shall not have any liability under the Warranties in respect of any employee litigation which arises after Completion and which the Client is reasonably satisfied
has not arisen because of a failure by EXL Holdings (US) or the SPV to manage its affairs in the manner of a normally competent business person mindful of the need to mitigate the risks of such litigation both before and after Completion.

  

	8.6	 EXL Holdings (US) shall not have any liability under the Warranties to the extent that any claim for breach thereunder arises in respect of a matter which was
previously drawn to the Client’s attention by EXL Holdings (US) and the Client has disregarded any advice given by EXL Holdings (US) in respect thereof, by either refusing to sanction an item of reasonable expenditure (including, but not
limited to, the carrying on of additional services pursuant to the Insurance Services Framework Agreement) 

  

 12 

	 	 
for which Client would be liable to reimburse EXL Holdings (US)) or else giving instructions to EXL Holdings (US) or the SPV which are contrary to that
advice and, where, had that expenditure been incurred or that advice been followed (as the case may be), either: 

  

	 	8.6.1	the claim for breach of warranty would not have arisen; or 

  

	 	8.6.2	the amount of any loss sustained by the Client as a result of any such breach would have been reduced (in which case EXL Holdings (US) shall only be liable to the Client in respect
of such reduced amount). 

  

	8.7	EXL Holdings (US) shall not have any liability under the Warranties to the extent that any claim for breach thereunder arises solely by reason of a change in legislation applicable
to the SPV and which the Client is reasonably satisfied has not arisen because of a failure by EXL Holdings (US) or the SPV to manage its affairs in the manner of a normally competent business person mindful of the need to mitigate the risks of any
such legislative change. 

  

	8.8	EXL Holdings (US) shall not have any liability under the Warranties in relation to any claim to the extent that it arises from any matter of which the Client or its directors,
officers, employees, agents or advisers had actual knowledge. 

  

	8.9	EXL Holdings (US) shall not have any liability under the Warranties in relation to any claim to the extent that such claim would not have arisen but for:- 

 

	 	8.9.1	any act, omission, transaction or arrangement made by or on behalf of, or with the knowledge or consent of, the Client or any of its Associated Companies before, on or after
Completion and whether pursuant to this Agreement, the Virtual Shareholders’ Agreement or otherwise; 

  

	 	8.9.2	any admission of liability made in breach of the provisions of this Agreement; or 

  

	 	8.9.3	any reorganisation or change in ownership of the Client or any of its Associated Companies or any change by any such company in the accounting basis on which its assets are valued
or the accounting basis, method, policy or practice on which its accounts are prepared, after Completion. 

  

	8.10	EXL Holdings (US) shall not have any liability under the Warranties in relation to any claim to the extent that full allowance, provision or reserve in respect thereof shall have
been made in, or otherwise taken account of or reflected in (whether in the calculation of creditors or debtors or otherwise), the Accounts. 

  

	8.11	EXL Holdings (US) shall only have liability under the Warranties in relation to any claim if and to the extent that it is admitted by EXL Holdings (US) or is proven in a court of
competent jurisdiction. 

  

	8.12	The Client shall not be entitled to claim under the Warranties for any indirect or consequential loss or loss of profit. 

  

	8.13	The Client shall not be entitled to recover damages or otherwise obtain reimbursement or restitution more than once in respect of the same loss. 

  

	8.14	Clauses 8.1 to 8.13 shall not apply where the relevant amounts being claimed arise as a result of the fraud, dishonesty or wilful default of EXL Holdings (US).

  

	9	ANCILLARY PROVISIONS 

  

	9.1	Claims by officers 

  

 13 

 EXL Holdings (US) agrees with the Client (as trustee for the SPV) that it will indemnify the SPV in
respect of: 
  

	 	9.1.1	any liability of the SPV (as the case may be) to pay any amount by way of redundancy payment or compensation for wrongful or unfair dismissal to any of the directors or the
secretary of the SPV who retires on Completion and who, despite the terms of his letter of resignation, makes a claim for redundancy payment or compensation; and 

  

	 	9.1.2	all costs, charges and expenses whatsoever incurred by the SPV in resisting or compromising any such claim for redundancy payment or compensation. 

  

	9.2	Time of essence 

 Time is of the essence of this
Agreement in respect of any date or period mentioned in this Agreement and any date or period substituted by written agreement between the Parties or otherwise. 
  

	9.3	Umbrella Agreement 

 To the extent relevant, the
provisions of clause 9 of the Umbrella Agreement shall apply to this Agreement as they apply to the Umbrella Agreement. 
  

 14 

 This Agreement has been signed on the date first stated on page 1. 
  

	
	Signed for and on behalf of
	
	ExIService Holdings, Inc by
	
	                                      
       name

  

	
	Signed for and on behalf of
	
	 Norwich Union Customer Services (Singapore)
 Pte Ltd by

	
	                                      
       name

  

 15 

 SCHEDULE 1 
 Warranties 
  

	1	ACCOUNTS 

 The Accounts have been prepared in
accordance with all applicable statutes and regulations and on a basis consistent with previous accounts of the SPV and in accordance with the accounting principles, standards and practices generally accepted in the US and show a true and fair view
of the state of affairs of the SPV as at the Last Accounting Date and of its results for the financial period then ended. 
  

	2	TAX 

  

	2.1	The Accounts contain full provision or reserve for all Taxation including deferred Taxation liable to be assessed on the SPV for the accounting period ended on the Last Accounting
Date or for any prior or subsequent period (on the basis of the rates of tax and taxation statutes in force at the Last Accounting Date) in respect of any transaction, event or omission occurring or any profit earned by the SPV on or prior to the
Last Accounting Date or for which the SPV is accountable up to such date and all contingent liabilities for Taxation have been provided for or disclosed in the Accounts. 

  

	2.2	Since the Last Accounting Date no further liability or contingent liability for Taxation has arisen otherwise than as the result of trading activities in the ordinary course of the
SPV’s business. 

  

	2.3	All returns of the SPV made for Taxation purposes were when made and remain correct and on a proper basis and all other information supplied to the relevant Tax Authority for such
purpose was when supplied and remains correct and on a proper basis and such returns include all returns and information which the SPV ought to have made or given and are not subject to any dispute with the relevant Tax Authority at the date of this
Agreement and there is no fact or matter which might be the occasion of any such dispute or any liability for Taxation (present or future) not provided for in the Accounts. 

  

	2.4	The SPV has paid all Taxation for which it is liable to account to the relevant Tax Authority on the due date for payment of it and is under no liability to pay any penalty or
interest in connection with it. 

  

	2.5	The SPV has deducted and accounted to the relevant Tax Authority for all Taxation required to be deducted from any payments made by the SPV. 

  

	2.6	All documents which affect the right, title or interest of the SPV in or to any of its property, undertaking or assets or to which the SPV is a party have been duly and properly
stamped. 

  

	3	THE PROPERTY AND ENVIRONMENT 

  

	3.1	The SPV has a good and marketable title to all of the Properties and, where it is the owner of such properties, is absolutely entitled to the whole of the proceeds of sale of the
Properties. Where the SPV occupies any of the properties pursuant to a lease then, so far as EXL Holdings (US) is aware (having made all reasonable enquiries of the SPV) nothing has occurred which would permit the lessor to terminate such lease
ahead of the expiry of the contractual term of that lease and neither EXL Holdings (US) nor the SPV has received notice from a lessor indicating its intention to terminate such a lease. 

  

 16 

	3.2	The title to each of the Properties is free from any material third party rights, mortgages, easements, quasi easements or restrictions on use and the Properties are not subject to
any outgoings other than general rates, water charges and insurance premiums and (where leasehold) rent and service charges. 

  

	3.3	The SPV is entitled to full vacant possession of the Properties and is in actual occupation of the Properties on an exclusive basis. 

  

	3.4	All material agreements, obligations, restrictions, covenants, conditions, statutes, bye-laws and regulations affecting any of the Properties or their use have been observed and
performed and all material outgoings of whatsoever nature in respect of the Properties have been paid to date. 

  

	3.5	So far as EXL Holdings (US) is aware there are no works being carried on or outstanding in respect of the Properties. 

  

	3.6	The existing use of each of the Properties is the lawful permitted use and is not temporary or personal or subject to any restrictions or conditions. The Properties comply (as to
buildings and use) with all applicable statutory and bye-law requirements relating to their continued use, including fire precautions, public health and health and safety at work. 

  

	3.7	So far as EXL Holdings (US) is aware, there are no outstanding or anticipated notices, complaints, requirements or recommendations of any landlord or any authority affecting any of
the Properties or the use of any of the Properties. 

  

	3.8	So far as EXL Holdings (US) is aware, there are no restrictions on any of the Properties being mortgaged or charged and, where any of the Properties is leasehold, the SPV can assign
or underlet the whole of such Property with the lessor’s consent, such consent not to be unreasonably withheld. 

  

	3.9	So far as EXL Holdings (US) is aware, there are no monetary claims or liabilities, contingent or otherwise, in respect of any of the Properties or any other property (whether as
tenant or surety) including compensation for disturbance or improvements in respect of any past or present tenancy and there are no obligations to reinstate any of the leasehold Properties by removal or dismantling of any alteration.

  

	3.10	So far as EXL Holdings (US) is aware, there are no circumstances which would entitle a lessor or any other person to exercise any right of re-entry or taking possession of any of
the Properties or which would otherwise restrict or terminate the continued possession and occupation of any part of any of the Properties. 

  

	3.11	So far as EXL Holdings (US) is aware, none of the Properties is, or has been, subject to contamination with noxious, deleterious or dangerous substances or is liable to such
contamination from adjoining or neighbouring land or water or has been subject to the deposit of waste by any other person. 

  

	4	ASSETS 

 Save for any assets which are the subject
of any leasing, hire purchase or rental agreements, all the undertaking, property and assets used by the SPV in connection with its business are in the sole legal and beneficial ownership of the SPV free from any Encumbrance and no claim has been
made by any person to be entitled to them. All such property and assets are in good and substantial repair. 
  

	5	MATERIAL CONTRACTS AND LIABILITIES 

  

 17 

	5.1	The SPV has no material liabilities (actual or contingent) other than the liabilities disclosed in the Accounts or which have arisen in the ordinary course of business since the
Last Accounting Date. 

  

	5.2	No power of attorney has been granted by the SPV which may be effective or in force at any time after the date of this Agreement. 

  

	5.3	The SPV is not in material default under, and has not committed any material breach of any of the terms of, any agreement, arrangement or obligation to which the SPV is a party, and
no threat or claim of any such default or breach has been made and is outstanding against the SPV. 

  

	5.4	So far as EXL Holdings (US) is aware, having made all reasonable enquiries, there is no ground for termination, avoidance or repudiation of any agreement, arrangement or obligation
to which the SPV is a party and no person with whom the SPV has entered into an agreement, arrangement or obligation has given notice of its intention to terminate or has sought to repudiate or disclaim any such agreement nor is any such party in
default under any such agreement. 

  

	6	CONDUCT OF BUSINESS, COMPLIANCE WITH LEGISLATION ETC. 

  

	6.1	The SPV and all of its directors, officers, agents and employees (during the course of their duties in relation to the SPV) have complied in all material respects with all
applicable legislation (including statutory instruments, bye-laws, local and central government orders, notices and decisions) to the extent that there has not been, and are not, any material adverse effects upon the assets or business of the SPV or
upon its Client’s or Client UK’s relationship with any regulatory bodies, as a consequence of breaching the same. 

  

	6.2	There are not pending or in existence any investigations or enquiries by or on behalf of any governmental or other body in respect of the affairs of the SPV.

  

	6.3	All statutory, municipal and other licences, consents, permits and authorisations necessary for the effective carrying on of the business of the SPV as now carried on in the places
and in the manner in which such business is now carried on (and without which there would be a material adverse effect on the business of the SPV or on its Client’s or Client UK’s relationship with any regulatory bodies) have been obtained
and are valid and subsisting and all conditions applicable to any such licence, consent, permit or authorisation have been complied with in all material respects and none of such licences, consents, permits or authorisations has been breached so far
as EXL Holdings (US) is aware (having made all reasonable enquiries) or is likely to be suspended, cancelled, refused renewal, revoked, modified or rendered (whether on renewal or otherwise) subject to conditions not applicable at the date of this
Agreement. 

  

	6.4	All trade names, trade marks, patents, inventions and designs and all technical processes and confidential know-how (and all copyright in them) used by the SPV in connection with
its business either belong exclusively to EXL Holdings (US), the SPV or the Client or are used under subsisting licence arrangements and (where the same belong to the SPV and are registrable) are registered in the SPV’s name as sole proprietor
and no undisclosed licence has been granted to any other person in relation to any such matter. 

  

	6.5	So far as EXL Holdings (US) is aware (having made all reasonable enquiries) no part of the business as currently or previously carried on by the SPV infringed, infringes or has been
alleged to infringe any intellectual property rights of any other person and no person is infringing or threatening to infringe any intellectual property rights of the SPV. 

  

 18 

	6.6	The SPV has not disclosed and is not obliged to disclose, any confidential information, know-how and trade secrets used by the SPV. 

  

	6.7	So far as EXL Holdings (US) is aware (having made all reasonable enquiries) the SPV is entitled to use all computer systems and software in its possession with no material
restrictions as to use. 

  

	7	EMPLOYMENT 

  

	7.1	The SPV has not lent or agreed to lend or advance any amounts to any of its employees or officers (other than remuneration for the current pay period, accrued holiday pay for the
current holiday year or reimbursement of expenses or loans to employees under employee salary policies). 

  

	7.2	No employee of the SPV has given or received notice of termination in the three months prior to the date of this Agreement. 

  

	7.3	All employees of the SPV have been paid all remuneration to which they are entitled as at the date of this Agreement including salary, bonus, commission, fees and any similar
payments. 

  

	7.4	There are no ongoing industrial disputes affecting the employees of the SPV and there have been none threatened or pending in the six months prior to the date of this Agreement.

  

	8	PENSIONS 

  

	8.1	The SPV does not provide or contribute to the provision of any pension or like benefits (excluding state benefits) for any person nor is it under any obligation to do so.

  

	8.2	The SPV does not pay any ex-gratia benefits to any person nor has it promised to do so. 

  

	8.3	The SPV does not pay any contributions under any personal pension arrangements made by any person nor is it under any obligation to do so. 

  

	8.4	The SPV is not and has never been the principal or a participating employer in any occupational pension scheme. 

  

	9	EVENTS SINCE THE LAST ACCOUNTING DATE 

 Since the
Last Accounting Date: 
  

	9.1	the SPV has carried on its business in the ordinary and usual course and maintained its business as a going concern; 

  

	9.2	all amounts received by the SPV have been deposited with the SPV’s bankers and appear in the appropriate books of account; 

  

	9.3	the SPV has not entered into any transaction or assumed or incurred any liabilities (including contingent liabilities) or made any payment not provided for in the Accounts otherwise
than in the ordinary course of carrying on its business or as approved under the Virtual Shareholders’ Agreement; and 

  

	9.4	 no resolutions have been passed by the SPV and except as approved under the Virtual Shareholders’ Agreement, nothing has been done in the conduct or management
of the affairs of the SPV which, so far as EXL Holdings (US) is aware, 

  

 19 

	    	would be likely to materially prejudice the interests of the Client as prospective buyer of the Shares. 

  

	10	LOANS 

 Save for loans to employees under employee
salary policies there are no loans made by or to the SPV outstanding except as shown in the Accounts and all amounts outstanding and appearing in the Accounts as loan accounts or as due to any director or shareholder or any persons connected with
them wholly represent money or moneys worth paid or transferred to the SPV or remuneration accrued due and payable for services rendered and (except for such remuneration) no part of them has been provided directly or indirectly out of the assets of
the SPV. 
  

	11	LITIGATION ETC. 

  

	11.1	The SPV is not involved either as a claimant or defendant or otherwise in any civil, criminal or arbitration proceedings or in any proceedings before any tribunal other than as
plaintiff for the collection of debts arising in the ordinary course of business and so far as EXL Holdings (US) is aware, no such proceedings are threatened or pending. 

  

	11.2	There is no unsatisfied judgment, order or decree of any court or any governmental agency outstanding against the SPV. 

  

	11.3	No order has been made, petition presented, resolution passed or meeting convened for the winding-up of the SPV. 

  

	11.4	No petition has been presented for an administration order to be made in relation to the SPV, nor has any such order been made. 

  

	11.5	No receiver (including an administrative receiver) has been appointed of the whole or any part of any of the property, assets and/or undertaking of the SPV.

  

	11.6	No composition in satisfaction of the debts of the SPV, or scheme of arrangement of its affairs, or compromise or arrangement between it and its creditors and/or members or any
class of its creditors and/or members, has been proposed, sanctioned or approved. 

  

	12	INSURANCES 

 The insurances effected by the SPV or
in which the SPV has an interest cover all insurable assets of the SPV (to their full replacement cost) as well as all such liabilities against such risks and in such amounts as are normally covered by companies carrying on similar businesses or
owning properties of a similar nature, and all such insurances are valid and effective and all premiums have been duly paid to date and so far as EXL Holdings (US) is aware there is no fact or matter which could lead to any policy being avoided or
repudiated or refused renewal on substantially the present terms. 
  

	13	GRANTS 

 So far as EXL Holdings (US) is aware, no
act or transaction will have been effected by the SPV prior to Completion (whether before or after the date of this Agreement) in consequence of which the SPV is or may be held liable to refund in whole or in part any investment grant (or other
grant, subsidy, financial assistance or allowance received or allowed by virtue of any statute), or whereby any such grant, subsidy, assistance or allowance for which application has been made by it may not be paid or allowed or may be reduced.

  

	14	OWNERSHIP 

  

 20 

 The Warranties given in clause 2.2 are true and correct. 
  

 21 

 SCHEDULE 2 
 Completion requirements 
  

	1	EXL Holdings (US) shall deliver to the Client: 

  

	1.1	share transfer forms in relation to the Shares duly executed by the registered holders of such Shares in favour of the Client (or as it directs), together with the relative share
certificates; 

  

	1.2	duly signed letters of resignation, in the terms reasonably required by the Client, from such of the present directors (other than the Nominated Director (as that expression is
defined in the Virtual Shareholders’ Agreement)) and secretary of the SPV as the Client may require; 

  

	1.3	the certificate of incorporation (and, if applicable, any certificates of incorporation on change of name), any common seal, any securities seal, statutory books, records and
registers (duly made up to the date of Completion), share certificate book and all available copies of the memorandum and articles of association of the SPV; 

  

	1.4	certificates in respect of all issued shares in the capital of the SPV and transfers of all shares in the SPV held by any nominee(s) for EXL Holdings (US) in favour of such
person(s) as the Client shall direct; 

  

	1.5	all title deeds and other deeds and documents (including plans and consents) relating to the Properties; 

  

	1.6	unconditional receipts for rent and any additional rent or service charge due in respect of each of the Properties which is leasehold; 

  

	1.7	irrevocable powers of attorney, in the terms reasonably required by the Client, executed by each of the holders of the Shares in favour of the Client and its directors to enable the
Client (pending registration of the transfers of such shares) to exercise all voting and other rights attaching to such shares and to appoint proxies for this purpose. 

  

	2	EXL Holdings (US) shall procure that there shall be held a meeting of the directors of the SPV attended by a quorum of the directors, at which: 

  

	2.1	such persons as the Client may nominate shall be appointed additional directors with effect from the end of the meeting (but not so as to exceed any maximum number permitted by its
articles of association); 

  

	2.2	the resignation mentioned above of the present secretary shall be accepted with immediate effect and such person as the Client may nominate shall be appointed secretary in his
place; 

  

	2.3	the transfers referred to in paragraphs 1.1 and 1.4 shall be approved for registration; 

  

	2.4	such resolutions and actions regarding bankers as the Client may require shall be passed and taken; 

  

	2.5	such other business as the Client may reasonably require shall be transacted; and 

  

	2.6	the resignations mentioned of the present directors shall be accepted with effect from the end of the meeting; 

 and EXL Holdings (US) shall deliver to the Client a certified copy of the minutes of such board meeting. Client shall procure the attendance of the
Nominated Director 

  

 22 

 (as such expression is defined in the Virtual Shareholders Agreement) at such meeting. 
  

	3	EXL Holdings (US) and the SPV shall procure the termination, with effect from Completion and on terms reasonably satisfactory to the Client, of the Insurance Services Framework
Agreements (Intra-Group) (as that expression is defined in the Umbrella Agreement). 

  

 23 

 SCHEDULE 3 
 Form
of disclosure letter 
  

	To:	[Name and address of Client] 

 • 200• 
 Dear Sirs, 
 [Re: SPV] 
 Reference is made to the Share Sale and Purchase Agreement (the “Agreement”) dated as of
[                                ] by and among EXL Service Holdings, Inc. (“EXL
Holdings (US))”, a Delaware Corporation (the “Vendor”) and Norwich Union Customer Services (Singapore) Pte Limited, a Singapore Corporation (the “Purchaser”), providing for the purchase and sale of all of
the outstanding stock of SPV, an Indian corporation (the “Company”). Capitalised terms used and not otherwise defined herein shall have the respective meanings ascribed to such terms in the Agreement. 
 This is the Disclosure Letter referred to in Clause 7.3 of the Agreement. The Disclosure Letter is comprised of (i) this letter, (ii) the
Schedule[s] to this letter, and (iii) all information contained in and all matters referred to in the documents listed in Schedule 1 hereto (the “Disclosure Documents”) (copies of which Disclosure Documents are contained in the
bundles attached to this letter). 
 In the event of any inconsistency between the contents of any Disclosure Document and any reference to
it or summary of it in the Disclosure Letter, the provisions of the Disclosure Document shall be taken as being correct (unless otherwise expressly stated herein) and the Vendor shall not be under any liability to the Purchaser in respect of such
inconsistency. 
 Words and expressions defined in the Agreement shall have the same meanings in the Disclosure Letter, unless otherwise
defined herein or unless the context otherwise requires. 
 The purpose of the Disclosure Letter is to limit the scope of the Warranties and
the Purchaser shall not be entitled to claim that any fact, matter or circumstance causes any of the Warranties to be breached if it is fairly disclosed in or by virtue of this Disclosure Letter (a “Disclosure”). The Warranties are
made and given subject to the Disclosures. 
 For convenience, a Disclosure may be made in the Disclosure Letter by reference to a particular
Warranty. However, each Disclosure shall apply to all of the Warranties, whether it is made generally or otherwise, and a Disclosure shall not be limited in any way to a specific Warranty. The Purchaser shall not be entitled to claim that any fact,
matter or circumstance has not been disclosed by reason of any Disclosure not being specifically related to any particular Warranty provided that the impact of such Disclosure is reasonably apparent in relation to such particular Warranty.

 The Purchaser agrees that there are no documents referred to in the Disclosure Letter as having been disclosed which the Purchaser would
like to see and which have not been supplied or made available to the Purchaser, and that there are no matters referred to in the Disclosure Letter in respect of which the Purchaser wishes to receive further information. 
  

 24 

 The Disclosure Letter does not constitute any representation, warranty, assurance or undertaking by the
Vendor not expressly set out in the Agreement and shall not have the effect of, or be construed as, adding to or extending the scope of any of the Warranties. 
 Where any estimates, forecasts or statements of opinion as to the financial or trading performance or prospects of the Company or the amount of any liability, cost or expense are given in the Disclosure Letter, the
Disclosure shall not be rendered unfair if the same should turn out to be inaccurate, provided such estimates, forecasts or statements of opinion are given in good faith. 
  

	 	A.	GENERAL MATTERS 

 The following matters are
disclosed generally:- 
  

	(a)	the provisions of and all matters contained and disclosed in or contemplated by the Agreement (including the schedules and any annexures thereto and documents referred to therein as
being in agreed terms); 

  

	(b)	all matters contained or referred to in the Accounts of the Company (including the notes and directors’ report, if any, to them); 

  

	(c)	all information provided in writing or other non-transient form to [accountants] in response to specific requests made by those accountants in connection with the
preparation of their long form report dated • 200• to the Purchaser on the Company; 

  

	(d)	[all information provided in writing or other non-transient form to the Purchaser’s Solicitors in response to specific requests made by those solicitors in connection with the
preparation of their legal due diligence report dated • 200• to the Purchaser on the Company;] 

  

	(e)	the contents of any documents annexed to this Disclosure Letter; 

  

	(f)	all information provided in writing or other non-transient form relating to the Company its businesses and its assets provided by or on behalf of the Vendor or the Company to the
Purchaser, its directors, officers, employees, agents or advisers pursuant to the provisions of the Umbrella Agreement, the Insurance Services Framework Agreement or the Virtual Shareholders Agreement or provided in response to specific requests by
any of its directors, officers, employees, agents or advisers as part of any investigations made by any such persons of the Company and its businesses and assets in contemplation of the Purchaser acquiring the Company; 

  

	(g)	all communications in writing or other non-transient form made by the Vendor’s Solicitors to the Purchaser’s Solicitors which are in any way connected with the Company,
the Agreement or the transactions contemplated thereby, including any enclosures or attachments to such communications; 

  

	(h)	all matters disclosed in the statutory books (including all registers and minute books) of the Company which have been made available to the Purchaser and/or the Purchaser’s
Solicitors for inspection prior to the date hereof; 

  

	(i)	all matters contained or referred to in the current memorandum and articles of association of the Company; 

  

	(j)	all information available to the public on • 200• from [insert details of relevant company register]; 

  

	 	B.	SPECIFIC MATTERS 

 Without limiting the preceding
paragraphs of the Disclosure Letter, there are further disclosed the following specific matters. The headings and paragraph numbers below 

  

 25 

 
correspond to those in Schedule 1 to the Agreement and are for convenience only as the matters contained or referred to therein also constitute Disclosures
in respect of every other Warranty. References below to a document number are to the number of a particular Disclosure Document in the attached bundles. 
 [Insert specific disclosures] 
 Please sign and return to us the enclosed copy of this letter
in acknowledgement of receipt of the Disclosure Letter and acceptance of its terms 
  

							
		 		 		  	  

		 		 		  	 Duly authorised for and on behalf of:
 [EXL
Holdings (US)]

		 	Date:	 	  
	  	

 We hereby acknowledge receipt of the Disclosure Letter and accept the terms thereof. 

 

							
		 		 		  	  

		 		 		  	 Duly authorised for and on behalf of:
 [Client]

		 	Date:	 	  
	  	

  

 26Registration Rights Agreement

 Exhibit 4.1 
 REGISTRATION RIGHTS AGREEMENT 
 September 15, 2006 
 Cell Therapeutics, Inc., a corporation organized under the laws of the State of Washington (the “Company”), proposes to issue the
Securities (as defined below) to Novartis Pharma AG, a corporation organized under the laws of Switzerland (the “Investor”), upon the terms and subject to the conditions set forth in that certain Securities Purchase Agreement dated
the date hereof by and between the Investor and the Company (the “Securities Purchase Agreement”). As an inducement to the Investor to enter into the Securities Purchase Agreement and in satisfaction of a condition to the
obligations of the Investor thereunder, the Company agrees with the Investor for the benefit of Holders (as defined herein) from time to time of the Registrable Securities (as defined herein) as follows: 
 1. Definitions. 
 Capitalized terms
used herein without definition shall have the meanings ascribed to them in the Securities Purchase Agreement. As used in this Registration Rights Agreement (this “Agreement”), the following defined terms shall have the following
meanings: 
 “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking
institutions in the City of New York, State of New York are authorized or obligated by law or executive order to close. 
 “Commission” means the United States Securities and Exchange Commission, or any other federal agency at the time administering the Exchange Act or the Securities Act, whichever is the relevant statute for the particular
purpose. 
 “Common Stock” means the Company’s common stock, no par value per share. 
 “Company” has the meaning assigned thereto in the preamble hereof. 
 “Default Payment” has the meaning assigned thereto in Section 7(a) hereof. 
 “DTC” means The Depository Trust Company. 
 “Effectiveness Period” has the meaning assigned thereto in Section 2(b)(i) hereof. 
 “Effective Time” means the time at which the Commission declares any Shelf Registration Statement effective or at which time any Shelf Registration Statement otherwise becomes effective. 
 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended. 
 “Filing Date” has the meaning assigned thereto in Section 2 hereof. 

 “Holder” means any person that is the record owner of Registrable Securities (and
includes any person that has a beneficial interest in any Registrable Security in book-entry form). 
 “Initial Penalty
Period” has the meaning assigned thereto in Section 7(a) hereof. 
 “Investor” has the meaning assigned
thereto in the preamble hereof. 
 “Issue Date” means the first date of original issuance of the Securities. 
 “Majority of Holders” means Holders holding over fifty percent (50%) of the aggregate Registrable Securities outstanding.

 “Managing Underwriter” has the meaning assigned thereto in Section 8 hereof. 
 “Notice and Questionnaire” means a Notice of Registration Statement and Selling Securityholder Election and Questionnaire substantially
in the form of Appendix A hereto. 
 “Notice Holder” has the meaning assigned thereto in Section 3(a)(i) hereof.

 The term “person” means an individual, partnership, limited liability company, corporation, trust or unincorporated
organization, or a government or agency or political subdivision thereof. 
 “Prospectus” means the prospectus included in
any Shelf Registration Statement, as amended or supplemented by any prospectus supplement with respect to the terms of the Offering of any portion of the Registrable Securities covered by any Shelf Registration Statement and by all other amendments
and supplements to such prospectus, including all material incorporated by reference in such prospectus and all documents filed after the date of such prospectus by the Company under the Securities Act or the Exchange Act and incorporated by
reference therein. 
 “Registrable Securities” means all or any portion of (i) the Securities, (ii) any shares of
Common Stock issued as a dividend or distribution or issuable upon the conversion or exercise of any warrant, right or other security which is issued as a dividend or other distribution with respect to, or in exchange for or in replacement of, the
Securities, and (iii) any capital stock or other securities issued in respect of the Securities by reason of a merger, consolidation, exchange or other transaction; provided, however, that a security ceases to be a Registrable
Security when it is no longer a Restricted Security. 
 “Registration Default” has the meaning assigned thereto in
Section 7(a) hereof. 
 “Restricted Security” means any security except any such security that (i) has been
registered pursuant to an effective registration statement under the Securities Act and sold in a manner contemplated by the Shelf Registration Statement, (ii) has been transferred in compliance with Rule 144 under the Securities Act (or any
successor provision thereto) or is transferable pursuant to paragraph (k) of such Rule 144 (or any successor provision thereto) or (iii) has otherwise been transferred and a new security not subject to transfer restrictions under the
Securities Act has been delivered by or on behalf of the Company. 
  

 2 

 “Securities” means the shares of Common Stock issued to the Investor pursuant to the
Securities Purchase Agreement. 
 “Securities Act” means the United States Securities Act of 1933, as amended. 

“Securities Purchase Agreement” has the meaning assigned thereto in the preamble hereof. 
 “Shelf Registration” means a registration effected pursuant to Section 2 hereof. 
 “Shelf Registration Statement” means a “shelf” registration statement filed under the Securities Act providing for the
registration of, and the sale on a continuous or delayed basis by the Holders of, all of the Registrable Securities pursuant to Rule 415 under the Securities Act and/or any similar rule that may be adopted by the Commission, filed by the Company
pursuant to the provisions of Section 2 of this Agreement, including the Prospectus contained therein, any amendments and supplements to such registration statement and Prospectus, including post-effective amendments, and all exhibits and all
material incorporated by reference in such registration statement and Prospectus, and any additional “shelf” registration statements filed under the Securities Act to permit the registration and sale of Registrable Securities pursuant to
Section 3(a)(ii) hereof. 
 “Subsequent Penalty Period” has the meaning assigned thereto in Section 7(a) hereof.

 “Suspension Period” has the meaning assigned thereto in Section 2(c) hereof. 
 The term “underwriter” means any underwriter, or any person deemed to be an underwriter pursuant to the Securities Act and Exchange Act
and the respective rules and regulations thereunder, as in effect at any relevant time, of Registrable Securities in connection with an offering thereof under a Shelf Registration Statement. 
 2. Shelf Registration. 
 a. The
Company shall, as soon as practicable, but no later than five (5) Business Days following the Issue Date, file (the date of filing, the “Filing Date”) with the Commission a Shelf Registration Statement to provide for the offer
and sale of the Registrable Securities by the Holders from time to time in accordance with the methods of distribution elected by such Holders and, thereafter, shall use its best efforts to cause such initial Shelf Registration Statement to be
declared effective under the Securities Act no later than fifteen (15) days following the Issue Date in the event that the Shelf Registration Statement is not reviewed by the Commission or ninety (90) days following the Issue Date in the
event that the Shelf Registration Statement is reviewed by the Commission; provided further, however, that only Holders who are Notice Holders shall be entitled to be named as a selling securityholder in any Shelf Registration
Statement as of the date it is declared effective or to use the Prospectus forming a part thereof for offers and resales of Registrable Securities. None of the Company’s securityholders (other than Holders of Registrable Securities) shall have
the right to include any of the Company’s other securities in the Shelf Registration Statement. Notwithstanding anything to the contrary contained herein, neither the Company nor any of its subsidiaries or affiliates shall disclose the name of
the Investor in any filing, announcement, release or otherwise without the prior written 
  

 3 

 consent of the applicable investor. The receipt of a Notice & Questionnaire shall be considered a valid consent
for the purposes of this Section 2 for use of the information contained in such Notice & Questionnaire. 
 b. Subject to
Section 2(c) hereof, the Company shall use its best efforts: 
 (i) to keep any Shelf Registration Statement continuously effective,
supplemented and amended as required by the provisions of Section 3(j) hereof, in order to permit the Prospectus forming a part thereof to be usable by Holders until the earlier of: (x) all of the Holders of Registrable Securities are able
to sell all Registrable Securities immediately without restriction pursuant to Rule 144(k) under the Securities Act or any successor rule thereto and any restrictive legend on the Securities requested to be removed pursuant to the requirements of
Section 9 hereof has been so removed, (y) all Registrable Securities registered under the Shelf Registration Statements have been sold, or (z) all Registrable Securities have ceased to be outstanding (such period being referred to
herein as the “Effectiveness Period”); and 
 (ii) after the Effective Time of the initial Shelf Registration Statement, to
take the actions provided for in Section 3(a)(ii) hereof after the receipt of a completed and signed Notice and Questionnaire from any Holder of Registrable Securities that is not then a Notice Holder; provided, however, that nothing in
this subparagraph shall relieve such Holder of the obligation to return a completed and signed Notice and Questionnaire to the Company in accordance with Section 3(a) hereof. 
 c. After the Effective Time of the initial Shelf Registration Statement, the Company may suspend the use of any Prospectus by written notice to the
Notice Holders for a period not to exceed an aggregate of sixty (60) calendar days in any 12-month calendar period and not in excess of twenty (20) consecutive calendar days in any such 12-month calendar period (each such period, a
“Suspension Period”) if: 
 (i) an event has occurred and is continuing, as a result of which the Shelf Registration
Statement would, in the Company’s reasonable judgment, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading; and 
 (ii) the Company determines in good faith that the disclosure of such event at such time would have a material adverse effect on the Company and its
subsidiaries taken as a whole. 
 3. Registration Procedures. 
 In connection with the Shelf Registration Statements, the following provisions shall apply: 
 a. (i) The Company shall take action to name as a selling securityholder in the initial Shelf Registration Statement at the Effective Time each
Holder that completes, executes and delivers a Notice and Questionnaire to the Company (a “Notice Holder”) not less than two (2) business days prior to the filing thereof so that such Holder is permitted to deliver the
Prospectus forming a part thereof to purchasers of such Holder’s Registrable Securities in 
  

 4 

 accordance with applicable law. The Company shall not be required to take any action to name any Holder as a selling
securityholder in the initial Shelf Registration Statement at the time of its effectiveness or to enable any Holder to use the Prospectus forming a part thereof for resales of Registrable Securities unless such Holder has returned a completed and
signed Notice and Questionnaire to the Company in a timely manner. 
 (ii) After the Effective Time of the initial Shelf Registration
Statement, the Company shall, upon the request of any Holder of Registrable Securities that is not then a Notice Holder, promptly send a Notice and Questionnaire to such Holder. After the Effective Time of the initial Shelf Registration Statement,
the Company shall (A) as promptly as practicable, after the date a completed and signed Notice and Questionnaire is delivered to the Company, and in any event within five (5) Business Days or, if the Company is required to file with the
Commission a new Shelf Registration, thirty (30) calendar days, after such date, prepare and file with the Commission (1) a supplement to the Prospectus or, if required by applicable law, a post-effective amendment to the Shelf
Registration Statement or an additional Shelf Registration Statement, and (2) any other document required by applicable law, so that the Holder delivering such Notice and Questionnaire is named as a selling securityholder in a Shelf
Registration Statement and is permitted to deliver the Prospectus to purchasers of such Holder’s Registrable Securities in accordance with applicable law, and (B) use its best efforts to cause any post-effective amendment or such
additional Shelf Registration Statement to become effective under the Securities Act as promptly as is practicable; but in any event by the date that is (i) ten (10) Business Days after the date of such post-effective amendment, or
(ii) forty-five (45) calendar days after the date such additional Shelf Registration Statement is required to be filed; provided, however, that if a Notice and Questionnaire is delivered to the Company during a Suspension
Period, the Company shall not be obligated to take the actions set forth in this clause (ii) until the termination of such Suspension Period. From and after the filing of any such supplement to the Prospectus or the effectiveness of such
post-effective amendment or additional Shelf Registration Statement, as the case may be, any such Holder shall be deemed to be a Notice Holder hereunder. 
 b. The Company shall furnish to each Notice Holder no fewer than five (5) Business Days prior to the initial filing of the Shelf Registration Statement, a copy of such Shelf Registration Statement, and shall
furnish to such holders no fewer than two (2) Business Days prior to the filing of any amendment to the Shelf Registration Statement, a copy of such amendment, and shall use its best efforts to reflect in each such document when so filed with
the Commission such comments as such holders and their respective counsel reasonably may propose; provided, however, that the Company shall make the final decision as to the form and content of each such document. If any such Shelf
Registration Statement refers to any Notice Holder by name or otherwise as the holder of any securities of the Company, then such Notice Holder shall have the right to require (i) the insertion therein of language, in form and substance
reasonably satisfactory to such Notice Holder, to the effect that the holding by such Notice Holder of such securities is not to be construed as a recommendation by such Notice Holder of the investment quality of the Company’s securities
covered thereby and that such holding does not imply that such Holder will assist, in meeting any future financial requirements of the Company or (ii) in the event that such reference to such Holder by name or otherwise is not required by the
Securities Act or any similar Federal statute then in force, the deletion of the reference to such Holder in any amendment or supplement to the Registration Statement filed or prepared subsequent to the time that such reference ceases to be
required. 
  

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 c. The Company shall promptly take such action as may be necessary so that (i) each of the Shelf
Registration Statements and any amendment or supplement thereto and the Prospectus forming a part thereof and any amendment or supplement thereto (and each report or other document incorporated therein by reference in each case) complies in all
material respects with the Securities Act and the Exchange Act and the respective rules and regulations thereunder, as in effect at any relevant time, (ii) each of the Shelf Registration Statements and any amendment or supplement thereto does
not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (iii) each Prospectus forming a part of
any Shelf Registration Statement, and any amendment or supplement to such Prospectus, in the form delivered to purchasers of the Registrable Securities during the Effectiveness Period, does not include an untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements therein, in light of circumstances in which they were made, not misleading, and (iv) a Prospectus filed in compliance with Rule 424 (or any similar provision then in force)
under the Securities Act shall be filed within two (2) Business Days of the time the Shelf Registration Statement becomes effective. 
 d. The Company shall promptly give notice to each Notice Holder, and shall confirm such notice in writing if so requested by any such Notice Holder: 
 (i) when the initial Shelf Registration Statement has been filed with the Commission and when the initial Shelf Registration Statement has become effective; 
 (ii) when any supplement to the Prospectus, Shelf Registration Statement or post-effective amendment to a Shelf Registration has been filed with the
Commission and, with respect to a Shelf Registration Statement or any post-effective amendment, when the same has been declared effective by the Commission; 
 (iii) of any request by the Commission for amendments or supplements to any Shelf Registration Statement or the Prospectus included therein or for additional information; 
 (iv) of the issuance by the Commission of any stop order suspending the effectiveness of any Shelf Registration Statement or the initiation of any
proceedings for such purpose; 
 (v) of the receipt by the Company of any notification with respect to the suspension of the qualification
of the securities included in any Shelf Registration Statement for sale in any jurisdiction or the initiation of any proceeding for such purpose; and 
 (vi) of the happening of any event or the existence of any state of facts that requires the making of any changes in any Shelf Registration Statement or the Prospectus included therein so that, as of such date, such
Shelf Registration Statement and Prospectus do not contain an untrue statement of a material fact and do not omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading (which advice shall

  

 6 

 be accompanied by an instruction to such Holders to suspend the use of the Prospectus until the requisite changes have
been made, subject to Section 2(c) hereof, which notice need not specify the nature of the event giving rise to such suspension). 
 e.
The Company shall use its best efforts to prevent the issuance, and if issued to obtain the withdrawal at the earliest possible time, of any order suspending the effectiveness of any Shelf Registration Statement. 
 f. The Company shall, as promptly as reasonably practicable, furnish to each Notice Holder, upon their request and without charge, at least one conformed
copy of the Shelf Registration Statement and any amendment or supplement thereto, including financial statements but excluding schedules, all documents incorporated or deemed to be incorporated therein by reference and all exhibits (unless requested
in writing to the Company by such Notice Holder). 
 g. The Company shall, during the Effectiveness Period, deliver to each Notice Holder,
without charge, as many copies of each Prospectus in which the Notice Holder is listed as a selling securityholder included in the applicable Shelf Registration Statement and any amendment or supplement thereto as such Notice Holder may reasonably
request; and the Company consents (except during a Suspension Period or during the continuance of any event described in Section 3(d) (iii)-(vi) above, limited, in the case of Section 3(d)(v), to the jurisdiction in question
thereunder) to the use of the Prospectus and any amendment or supplement thereto by each of the Notice Holders in connection with the offering and sale of the Registrable Securities covered by the Prospectus and any amendment or supplement thereto
during the Effectiveness Period. 
 h. Prior to any offering of Registrable Securities pursuant to a Shelf Registration Statement, the
Company shall (i) register or qualify or cooperate with the Notice Holders and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities
for offer and sale under the securities or “blue sky” laws of such jurisdictions within the United States as any Notice Holder may reasonably request in writing, (ii) keep such registrations or qualifications or exemptions therefrom
in effect and comply with such laws so as to permit the continuance of offers and sales in such jurisdictions for so long as may be necessary to enable any Notice Holder or underwriter, if any, to complete its distribution of Registrable Securities
pursuant to such Shelf Registration Statement, and (iii) take any and all other actions necessary or advisable to enable the disposition in such jurisdictions of such Registrable Securities; provided, however, that in no event
shall the Company be obligated to (A) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise be required to so qualify but for this Section 3(h), or (B) subject itself to general
or unlimited service of process in any such jurisdiction if it is not otherwise so subject. 
 i. Unless any Registrable Securities shall be
in book-entry only form, the Company shall cooperate with the Notice Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold pursuant to any Shelf Registration Statement, which
certificates, if so required by any securities market or exchange upon which any Registrable Securities are quoted or listed, shall be penned, lithographed or engraved, or produced by any combination of such methods, on steel engraved borders, and

  

 7 

 which certificates shall be free of any restrictive legends and in such permitted denominations and registered in such
names as Notice Holders may request in connection with the sale of Registrable Securities pursuant to such Shelf Registration Statement. 
 j. Upon the occurrence of any event or the existence of any fact contemplated by paragraph 3(d)(vi) above, subject to Section 2(c) hereof, the Company shall promptly, but in any event within ten (10) Business Days following such
occurrence or existence, prepare and file (and have declared effective) a post-effective amendment to any Shelf Registration Statement or an amendment or supplement to the related Prospectus included therein or file any other document with the
Commission so that, as thereafter delivered to purchasers of the Registrable Securities, the Prospectus will not include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not
misleading. If the Company notifies the Notice Holders of the occurrence of any event or the existence of any fact contemplated by paragraph 3(d)(vi) above, the Notice Holder shall suspend the use of the Prospectus and keep the notification provided
pursuant to paragraph 3(d)(vi) above confidential until (i) such Holder has received copies of the supplemented or amended Prospectus contemplated by the preceding sentence or (ii) such Holder is advised in writing by the Company that the
use of the Prospectus may be resumed and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus. Notwithstanding the foregoing, but subject to Section 7 hereof, the Company shall not
be required to amend or supplement the Shelf Registration Statement, any related Prospectus or any document incorporated by reference during a Suspension Period. 
 k. The Company shall comply with the Securities Act and the Exchange Act and the respective rules and regulations thereunder, as in effect at any relevant time, and make generally available to its securityholders
earnings statements (which need not be audited) satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than ninety (90) days after the
end of any 12-month period (or ninety (90) days after the end of any 12-month period if such period is a fiscal year), or such shorter period as required by the Securities Act and the Exchange Act and the respective rules and regulations
thereunder, as in effect at any relevant time. 
 l. The Company shall make reasonably available for inspection by one or more
representatives of the Notice Holders, designated in writing by a Majority of Holders whose Registrable Securities are included in a Shelf Registration Statement, any underwriter participating in any disposition pursuant to any Shelf Registration
Statement, and any attorney, accountant or other agent retained by such Notice Holders or any such underwriter (i) all relevant financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries, and
(ii) cause the Company’s officers, directors and employees to make available for inspection all information reasonably requested by such Notice Holders or any such underwriter, attorney, accountant or agent in connection with such Shelf
Registration Statement, in each case, as is customary for similar due diligence examinations; provided, however, that such persons shall, at the Company’s request, first agree in writing with the Company that any information that is
reasonably and in good faith designated by the Company in writing as confidential at the time of delivery or inspection, as the case may be, of such information shall be kept confidential by such persons and shall be used solely for the purposes of
exercising rights under this Agreement, unless such disclosure is made in connection with a court proceeding or 
  

 8 

 required by law, or such records, information or documents become available to the public generally or through a third
party without an accompanying obligation of confidentiality or the content of such disclosure was already known and independently developed by the relevant Notice Holder; provided further, however, that, if the foregoing inspection and
information gathering would otherwise disrupt the Company’s conduct of its business, such inspection and information gathering shall, to the greatest extent possible, be coordinated on behalf of the Notice Holders and the other parties entitled
thereto by one counsel designated by and on behalf of the Notice Holders and other parties. 
 m. The Company will use its best efforts to
cause the Securities to be quoted or listed on the Nasdaq National Market or other market or stock exchange on which the Common Stock primarily trades on or prior to the Effective Time of each Shelf Registration Statement hereunder. 
 n. The Company will cooperate and assist in any filings required to be made with the National Association of Securities Dealers, Inc. or other market or
stock exchange on which the Common Stock may trade. 
 o. The Company shall use its best efforts to take all other steps necessary to effect
the registration, offering and sale of the Registrable Securities covered by each Shelf Registration Statement contemplated hereby, including, without limitation, entering into an underwriting agreement in customary form (if the distribution of
Registrable Securities is to be made pursuant to an underwritten public offering) and such other customary agreements as may be necessary, desirable or appropriate, and taking all such other necessary actions in connection therewith. 
 p. The Company shall: 
 (i) (A) make
reasonably available for inspection by requesting Holders, any underwriter participating in any disposition pursuant to the Shelf Registration Statement, any attorney selected in accordance with Section 4 hereof, one accountant and any other
agent retained by such holders or any such underwriter all relevant financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries and (B) cause the Company’s officers, directors and employees
to supply all information reasonably requested by such holders or any such underwriter, attorney, accountant or agent in connection with the Shelf Registration Statement, in each case, as is customary for similar due diligence examinations;
provided, however, that all records, information and documents that are designated in writing by the Company, in good faith, as confidential shall be kept confidential by such holders and any such underwriter, attorney, accountant or
agent, unless such disclosure is made in connection with a court proceeding or required by law, or such records, information or documents become available to the public generally or through a third party without an accompanying obligation of
confidentiality; and provided further that, if the foregoing inspection and information gathering would otherwise disrupt the Company’s conduct of its business, such inspection and information gathering shall, to the greatest extent
possible, be coordinated on behalf of the requesting Holders and the other parties entitled thereto by one counsel designated by and on behalf of Holders and other parties; 
  

 9 

 (ii) in connection with any underwritten offering conducted pursuant to Section 8 hereof, make such
representations and warranties to the Holders participating in such underwritten offering and to the Managing Underwriter, in form, substance and scope as are customarily made by the Company to underwriters in primary underwritten offerings of
equity; 
 (iii) in connection with any underwritten offering conducted pursuant to Section 8 hereof, obtain opinions of counsel to the
Company (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the Managing Underwriter) addressed to each requesting Holder, covering such matters as are customarily covered in opinions requested in primary
underwritten offerings of equity and such other matters as may be reasonably requested by such Holders and underwriters (it being agreed that the matters to be covered by such opinions shall include, without limitation, as of the date of the opinion
and as of the Effective Time or the date of the most recent post-effective amendment thereto, as the case may be, the absence from the Shelf Registration Statement and the Prospectus, including the documents incorporated by reference therein, of an
untrue statement of a material fact or the omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus, in light of the circumstances under which they were made) not
misleading); 
 (iv) in connection with any underwritten offering conducted pursuant to Section 8 hereof, obtain “cold
comfort” letters and updates thereof from the independent public accountants of the Company (and, if necessary, from the independent public accountants of any subsidiary of the Company or of any business acquired by the Company for which
financial statements and financial data are, or are required to be, included in the Shelf Registration Statement), addressed to each requesting Holder (if such Holder has provided such letter, representations or documentation, if any, required for
such cold comfort letter to be so addressed) and the underwriters, in customary form and covering matters of the type customarily covered in “cold comfort” letters in connection with primary underwritten offerings; 
 (v) in connection with any underwritten offering conducted pursuant to Section 8 hereof, deliver such documents and certificates as may be
reasonably requested by any Holders and the Managing Underwriter, if any, including without limitation certificates to evidence compliance with Section 3(j) hereof and with any conditions contained in the underwriting agreement or other
agreements entered into by the Company. 
 4. Registration Expenses. 
 The Company shall bear all fees, costs and expenses incurred in connection with the performance by the Company of all of its obligations under Sections 2
and 3 of this Agreement whether or not any of the Shelf Registration Statements are declared effective. Such fees, costs and expenses shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees
and expenses (A) with respect to filings required to be made with the National Association of Securities Dealers, Inc., and (B) of compliance with United States federal and state securities or “blue sky” laws (including, without
limitation, reasonable fees and disbursements of the counsel specified in the next sentence in connection with “blue sky” qualifications of the Registrable Securities under the laws of such jurisdictions as a Majority of the Holders whose
Registrable Securities are included in a Shelf Registration Statement may 
  

 10 

 designate)), (ii) printing expenses (including, without limitation, expenses of printing certificates for
Registrable Securities in a form eligible for deposit with The Depository Trust Company), (iii) duplication expenses relating to copies of any Shelf Registration Statement, Prospectus and other documents delivered to any Holder hereunder,
(iv) fees and disbursements of counsel and independent accountants for the Company in connection with the Shelf Registration Statement, and (v) reasonable fees and disbursements of the registrar and transfer agent for the Common Stock. In
addition, the Company shall bear or reimburse the Notice Holders for the reasonable fees and disbursements of one firm of legal counsel for the Holders, which shall initially be counsel to the Investor, but which may, upon the written consent of a
majority of the then current Holders (which shall not be unreasonably withheld), be another nationally recognized law firm experienced in securities law matters designated by the Company. In addition, the Company shall pay the internal expenses of
the Company (including, without limitation, all salaries and expenses of officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange on which similar securities of the Company are then listed and the fees and expenses of any person, including special experts, retained by the Company. 
 5. Indemnification and Contribution. 
 a. Indemnification by the Company. The Company shall indemnify and hold harmless each Holder, the Investor, any underwriter, each person, if any, who controls any such Holder, the Investor or any underwriter within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act and the respective officers, directors, partners, employees, representatives and agents of any such Holder, the Investor, any underwriter or any controlling person, from
and against any loss, claim, damage, liability, cost or expense whatsoever as incurred (including, but not limited to, attorneys’ fees and any and all expenses whatsoever incurred in investigating, preparing or defending against any litigation,
commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation), joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as any such loss, claim, damage, liability, cost or expense (or action in respect thereof) arises out of, or is based upon, any untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement or
any amendment thereto or supplement thereof or any related preliminary prospectus or the Prospectus or any amendment thereto or supplement thereof, or arises out of, or is based upon, the omission or alleged omission to state therein any material
fact required to be stated therein or necessary to make the statements therein, in light of the circumstance in which they were made, not misleading; provided, however, that the Company shall not be liable to any such indemnified party in any
such case to the extent that any such loss, claim, damage, liability, cost or expense arises out of, or is based upon, any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in
conformity with written information furnished to the Company by or on behalf of such indemnified party specifically for use therein; provided further, however, that the Company shall not be liable to any such indemnified party in any such
case to the extent that such loss, claim, damage, liability, cost or expense arises from an offer or sale by a Notice Holder of Registrable Securities during a Suspension Period, if such indemnified party is a Notice Holder that received from the
Company a notice of the commencement of such Suspension Period prior to the making of such offer or sale. The foregoing indemnity agreement is in addition to any liability that the Company may otherwise 
  

 11 

 have to any indemnified party, and the Company hereby confirms that it will indemnify the indemnified party with respect
to any breach by the Company of its indemnity obligations hereunder. The Company shall not be liable under this Section 5(a) for any settlement of any action effected without its written consent, which shall not be unreasonably withheld;
provided, however, that with respect to actions pursuant to clauses (i), (ii) and (iii) of Section 5(c), no such consent shall be required. 
 b. Indemnification by the Notice Holders. Each Notice Holder, severally and not jointly, shall indemnify and hold harmless the Company, the Investor, each underwriter, each other Holder, each person, if any,
who controls the Company, the Investor, any underwriter or another Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and the respective officers, directors, partners, employees, representatives
and agents of the Company, the Investor, any underwriter, any other Holder or any controlling person, from and against any loss, claim, damage, liability, cost or expense whatsoever as incurred (including, but not limited to, attorneys’ fees
and any and all expenses whatsoever incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation), joint or several,
to which they or any of them may become subject under the Securities Act, the Exchange Act or otherwise, insofar as any such loss, claim, damage, liability, cost or expense (or action in respect thereof) arises out of, or is based upon, any untrue
statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement or any amendment thereto or any related preliminary prospectus or the Prospectus or any amendment thereto or supplement thereof, or arises out of,
or is based upon, the omission or alleged omission to state therein, in light of the circumstances in which they were made, any material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to
the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission made therein was made in reliance upon and in conformity with written information furnished to the Company by or on behalf of
such Notice Holder specifically for use therein. In no event shall the liability of any selling Notice Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Notice Holder upon the sale of the Registrable
Securities pursuant to the Shelf Registration Statement giving rise to such indemnification obligation. 
 c. Notices of Claims, Etc.
Promptly after receipt by an indemnified party under this Section 5 of notice of any claim or the commencement of any action, the indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under this
Section 5, notify the indemnifying party in writing of the claim or the commencement of that action; provided, however, that the failure to notify the indemnifying party shall not relieve it from any liability that it may have
under this Section 5. If any such claim or action shall be brought against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it
wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel satisfactory to the indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to the indemnified party under this Section 5 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof
other than reasonable costs of investigation; provided, however, that the indemnified party shall have the right to 
  

 12 

 employ counsel to represent jointly the indemnified party and its respective officers, directors, partners, employees,
representatives, agents and controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be sought by the indemnified party against the indemnifying party under this Section 5 if
(i) employment of such counsel has been authorized in writing by the indemnifying party, or (ii) such indemnifying party shall not have employed counsel satisfactory to the indemnified party to have charge of the defense of such proceeding
within thirty (30) days of the receipt of notice thereof, or (iii) such indemnified party shall have reasonably concluded that the representation of such indemnified party and those officers, directors, partners, employees,
representatives, agents and controlling persons by the same counsel representing the indemnifying party would be inappropriate under applicable standards of professional conduct due to actual or potential differing interests between them or where
there may be one or more defenses available to them that are different from, additional to or in conflict with those available to the indemnifying party, and in any such event ((i), (ii) or (iii)) the fees and expenses of such separate counsel
shall be paid by the indemnifying party as incurred. It is understood that the indemnifying party shall not be liable for the fees and expenses of more than one separate firm (in addition to local counsel in each jurisdiction) for all indemnified
parties in connection with any proceeding or related proceedings. No indemnifying party shall, without the prior written consent of the indemnified parties, effect any settlement or compromise of, or consent to the entry of judgment with respect to,
any pending or threatened claim, investigation, action, suit or proceeding in respect of which indemnity or contribution may be or could have been sought hereunder (whether or not the indemnified party or parties are actual or potential parties
thereto) unless (A) such settlement, compromise or judgment (1) includes an unconditional release of such indemnified party from all liability arising out of such claim, investigation, action, suit or proceeding, and (2) does not
include a statement as to or an admission of fault, culpability or failure to act by or on behalf of any indemnified party, and (B) the indemnifying party confirms in writing its indemnification obligations hereunder with respect to such
settlement, compromise or judgment. 
 d. Contribution. If the indemnification provided for in this Section 5 is unavailable or
insufficient to hold harmless an indemnified party under subsections (a) or (b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims, damages, costs,
expenses or liabilities (or actions in respect thereof) referred to in subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party or parties on the one hand
and the indemnified party on the other from the registration of the Registrable Securities pursuant to the Shelf Registration, or (ii) if the allocation provided by the foregoing clause (i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying party or parties on the one hand and the indemnified party on the other in connection with
the statements or omissions that resulted in such losses, claims, damages, costs, expenses or liabilities (or actions in respect thereof) as well as any other relevant equitable considerations. The relative fault of the parties shall be determined
by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or such Holder or such
other indemnified party, as the case may be, on the other, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid by an indemnified party as a result
of the 
  

 13 

 losses, claims, damages or liabilities referred to in the first sentence of this Section 5(d) shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any action or claim which is the subject of this Section 5(d). The Company and the Holders agree that it would not
be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to herein. Notwithstanding any
other provision of this Section 5(d), no Holder of the Registrable Securities shall be required to contribute any amount in excess of the amount by which the net proceeds received by such Holder from the sale of its Registrable Securities
pursuant to the Shelf Registration Statement exceeds the amount of damages which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 5(d), each officer,
director, partner, employee, representative or agent of an indemnified party, and each person, if any, who controls such indemnified party within the meaning of the Securities Act or the Exchange Act, shall have the same rights to contribution as
such indemnified party and each officer, director, partner, employee, representative and agent of the Company, and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act, shall have the same rights
to contribution as the Company. The Holders’ respective obligations to contribute pursuant to this Section 5(d) are several in proportion to the respective amount of Registrable Securities they have sold pursuant to a Shelf Registration
Statement and not joint. The remedies provided for in this Section 5(d) are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. 
 e. Survival. The indemnity and contribution provisions contained in this Section 5 shall remain operative and in full force and effect
regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of the Investor, any underwriter, any Holder, any officer, director, partner, employee, representative or agent of the Investor, any
underwriter, or any Holder, or any person controlling the Investor, any underwriter or any Holder, or by or on behalf of the Company, its officers, directors, partners, employees, representatives or agents or any person controlling the Company, and
(iii) any sale of Registrable Securities pursuant to a Shelf Registration Statement. 
 6. Holder’s Obligations. 

Each Holder agrees, by acquisition of the Registrable Securities, that no Holder of Registrable Securities shall be entitled to sell any of such
Registrable Securities pursuant to a Shelf Registration Statement or to receive a Prospectus relating thereto, unless such Holder has furnished the Company with a Notice and Questionnaire as required pursuant to Section 3(a) hereof (including
all the information required to be included in such Notice and Questionnaire) and the information set forth in the next sentence. Each Notice Holder agrees to promptly furnish to the Company all information required to be disclosed in order to make
the information previously furnished to the Company by such Notice Holder not misleading and any other information regarding such Notice Holder and the distribution of such Registrable Securities as may be required to be disclosed in the Shelf
Registration Statement under applicable law, pursuant to comments from the Commission or as the Company may from time to time 
  

 14 

 reasonably request. Any sale of any Registrable Securities by any Notice Holder shall constitute a representation and
warranty by such Notice Holder that the information relating to such Notice Holder and its plan of distribution is as set forth in the Prospectus delivered by such Notice Holder in connection with such disposition, that such Prospectus does not, as
of the time of such sale, contain any untrue statement of a material fact relating to such Notice Holder or its plan of distribution, and that such Prospectus does not, as of the time of such sale, omit to state any material fact relating to or
provided by such Notice Holder or its plan of distribution necessary in order to make the statements in such Prospectus, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the
extent, that such untrue statement or omission was made in reliance on and in conformity with written information furnished to the Company by or on behalf of such Notice Holder 
 7. Default Payments. 
 a.
Notwithstanding any postponement of the effectiveness of the Shelf Registration Statement pursuant to Section 2(a) hereof, if: 
 (i) on
or prior to the fifteenth (15th) day following the date the Company receives notice that the Shelf Registration Statement will not be reviewed by the Commission (in the event the Shelf Registration Statement is not reviewed by the Commission)
or the ninetieth (90th) day following the Filing Date (in the event the Shelf Registration Statement is reviewed by the Commission), such initial Shelf Registration Statement is not declared effective by the Commission, or 
 (ii) after the effectiveness date of any Shelf Registration Statement, (A) such Shelf Registration Statement ceases to be effective or usable for
the offer and sale of Registrable Securities for any reason (other than due to a Suspension Period), and the Company fails to file (and have declared effective), within five (5) Business Days, a post-effective amendment to such Shelf
Registration Statement or amendment or supplement to the Prospectus contained therein or such other document with the Commission to make such Shelf Registration Statement effective or such Prospectus usable, (B) the Suspension Periods exceed
sixty (60) calendar days, whether or not consecutive, in any 12-month calendar period, or (C) any Suspension Period exceeds twenty (20) consecutive calendar days, or 
 (iii) the Company shall have failed to timely comply with any of its obligations set forth in Section 3(a)(ii) hereof, provided that such failure
is not solely due to the failure of a Holder of Registrable Securities to perform its obligations set forth in Section 3(a)(ii) hereof (each of (i) through (iii) a “Registration Default”), 
 the Company shall be required to make a payment (each, including any interest thereon as provided below, a “Default Payment”) to each Holder in an
amount equal to one-half of one percent (0.5%) of the aggregate Purchase Price (as defined in the Securities Purchase Agreement) of such Holder’s Securities for the first 45-day period or portion thereof (an “Initial Penalty
Period”) following the date of a Registration Default, increasing to one percent (1.0%) of the aggregate Purchase Price of such Holder’s Securities for each 30-day period or portion thereof (a “Subsequent Penalty
Period”) following an Initial Penalty Period in which the Registration Default remains uncured. The Company shall notify the Holders as promptly as 
  

 15 

 possible, but in no event later than three (3) Business Days after each and any date on which a Registration Default
occurs. If the Company fails to make a Default Payment to the Holders in full by the fifth (5th) Business Day after the end of such Initial Penalty Period or Subsequent Penalty Period, the Company will pay interest thereon at a rate of
10.0% per annum (or such lesser maximum amount that is permitted to be paid by applicable law), accruing daily from the date such Default Payment is due until such Default Payment is paid in full. 
 b. In the case of a Registration Default described in Sections 7(a)(i)-(ii) above, Default Payments, if any, shall be payable only to Notice
Holders of the Securities and, in respect of a Registration Default described in Section 7(a)(iii) above, Default Payments, if any, shall be payable only to Holders of the Securities to whom such Registration Default relates. 
 c. Any amounts to be paid as Default Payments pursuant to paragraph (a) of this Section 7 shall be paid by wire transfer of immediately
available funds or by federal funds check within three (3) Business Days after each and any date on which a Registration Default occurs. 
 d. Except as provided in Section 7(a) hereof, the Default Payments as set forth in this Section 7 shall be the exclusive cash remedy available to the Holders of Registrable Securities for such Registration Default. 
 8. Underwritten Offering. 
 Any holder
of Registrable Securities who desires to do so may sell Registrable Securities (in whole or in part) in an underwritten offering; provided, however, the Company shall not be required to facilitate an underwritten offering pursuant to
the Shelf Registration Statement by any holders unless the offering includes a number of shares equal to or in excess of 5% of the Company’s then outstanding shares of Common Stock. In any such underwritten offering, the investment banker or
investment bankers and manager or managers (the “Managing Underwriter”) that will administer the offering will be selected by, and the underwriting arrangements with respect thereto (including the size of the offering) will be
approved by, the holders of a majority of the Registrable Securities to be included in such offering; provided, however, that such investment bankers and managers and underwriting arrangements must be reasonably satisfactory to the
Company. No holder may participate in any underwritten offering contemplated hereby unless (a) such holder agrees to sell such holder’s Registrable Securities to be included in the underwritten offering in accordance with any approved
underwriting arrangements, (b) such holder completes and executes all reasonable questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up letters and other documents required under the terms of such approved
underwriting arrangements and (c) if such holder has not previously done so, such holder returns a completed and signed Notice and Questionnaire to the Company in accordance with Section 3(a)(ii) hereof within a reasonable amount of time
before such underwritten offering. The holders participating in any underwritten offering shall be responsible for any underwriting discounts and commissions and fees and, subject to Section 4 hereof, expenses of their own counsel. The
Company’s management will cooperate and assist the Managing Underwriter in effecting the offering, including participating in a customary “road show” at the request of the Managing Underwriter. 
  

 16 

 9. Rule 144 and 144A; Removal of Legend. 
 a. The Company covenants to the Holders of the Registrable Securities that the Company shall use its best efforts to make available, upon request of any
holder of Registrable Securities, to such holder or beneficial owner of Registrable Securities in connection with any sale thereof and any prospective purchaser of such Registrable Securities designated by such holder or beneficial owner, the
information required by Rule 144A(d)(4) under the Securities Act in order to permit resales of such Registrable Securities pursuant to Rule 144A of the Securities Act, and to timely file the reports required to be filed by it under the Exchange Act
or the Securities Act (including the reports under Section 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144 of the Securities Act) and the rules and regulations adopted by the Commission thereunder, all to the
extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act within the limitations of the exemption provided by Rule 144 under the Securities Act, as such may be amended from
time to time, or any similar or successor rule or regulation hereafter adopted by the Commission. Upon the request of any Holder of Registrable Securities in connection with that Holder’s sale pursuant to Rule 144, the Company shall deliver to
such Holder a written statement as to whether it had complied with such requirements. 
 b. Any Securities Act legend shall be removed from
any certificate evidencing Securities and the Company shall, or shall cause its transfer agent to, issue, no later than two (2) business days from receipt of a request from the Investor pursuant to this Section 9(b), together with a
representation in customary form from the Investor confirming the relevant facts under clause (i), (ii), or (iii) below, as the case may be (which representation shall not be required in the case of a request under clause (iv)), a certificate
or certificates evidencing all or a portion of the Securities, as requested by the Investor, without such legend if: (i) such Securities have been resold under an effective registration statement under the Securities Act, (ii) such
Securities have been transferred in compliance with Rule 144 under the Securities Act, (iii) such Securities are eligible for resale pursuant to Rule 144(k) under the Securities Act or (iv) the Investor shall have provided the Company with
an opinion of counsel, reasonably satisfactory to the Company, stating that such Securities may lawfully be transferred without registration under Rule 144(k) under the Securities Act. 
 10. Miscellaneous. 
 a. Specific
Performance. The parties hereto acknowledge that there would be no adequate remedy at law if the Company fails to perform any of its obligations hereunder and that the Investor and the Holders from time to time may be irreparably harmed by any
such failure, and accordingly agree that the Investor and such Holders, in addition to any other remedy to which they may be entitled at law or in equity and without limiting the remedies available to the Notice Holders under Section 7 hereof,
shall be entitled to compel specific performance of the obligations of the Company under this Agreement in accordance with the terms and conditions of this Agreement, in any court of the United States or any State thereof having jurisdiction.

 b. Amendments and Waivers. This Agreement, including this Section 10(b), may be amended, and waivers or consents to departures
from the provisions hereof may be given, only by a written instrument duly executed by the Company and a Majority of Holders. Each 
  

 17 

 Holder of Registrable Securities outstanding at the time of any such amendment, waiver or consent or thereafter shall be
bound by any amendment, waiver or consent effected pursuant to this Section 10(b), whether or not any notice, writing or marking indicating such amendment, waiver or consent appears on the Registrable Securities or is delivered to such Holder.

 c. Other Registration Rights. The Company will not, on or after the date of this Agreement, enter into any agreement with respect
to its securities that is inconsistent with the rights granted to the holders of Registrable Securities in this Agreement or otherwise conflicts with the provisions hereof. The Company shall not permit any securities other than the Registrable
Securities to be included in any Shelf Registration Statement without consent of a majority of the then current Holders. The rights granted to the holders of Registrable Securities hereunder do not in any way conflict with and are not inconsistent
with the rights granted to the holders of the Company’s securities under any agreement in effect on the date hereof. 
 d. Third
Party Beneficiary. The holders of Registrable Securities shall be third party beneficiaries to the agreements made hereunder between the Company, on the one hand, and the Investor, on the other hand, and shall have the right to enforce such
agreements directly to the extent they may deem such enforcement necessary or advisable to protect its rights or the rights of holders of Registrable Securities hereunder. 
 e. Notices. All notices and other communications provided for or permitted hereunder shall be made in writing, shall be delivered by hand
delivery, by telecopier, by courier guaranteeing overnight delivery or by first-class mail, return receipt requested, and shall be deemed given (i) when made, if made by hand delivery, (ii) upon confirmation, if made by telecopier
(provided notice is also given by some other means permitted by this Section 10(e)), (iii) one Business Day after being deposited with such courier, if made by overnight courier, or (iv) on the date indicated on the notice of receipt,
if made by first-class mail, to the parties as follows: 
  

	 	(x)	if to a Holder of Registrable Securities, at the most current address given by such Holder to the Company in a Notice and Questionnaire or any amendment thereto;

  

	 	(y)	if to the Company, to: 

  

	 	 	Cell Therapeutics, Inc. 

	 	 	201 Elliott Avenue West, Suite 400 

	 	 	Seattle, Washington 98119 

	 	 	Attention: Louis A. Bianco 

	 	 	Telephone: (206) 282-7100 

	 	 	Facsimile: (206) 272-4397 

  

 18 

	 	 	with a copy to: 

  

	 	 	O’Melveny & Myers LLP 

	 	 	275 Battery Street, Suite 2600 

	 	 	San Francisco, California 94111 

	 	 	Attention: Michael J. Kennedy, Esq. and David M. Miscia, Esq. 

	 	 	Facsimile: (415) 984-8701 

  

	 	(z)	if to the Investor, to: 

  

	 	 	Novartis Pharma AG 

	 	 	Lichtstrasse 35 

	 	 	CH-4002 Basel 

	 	 	Switzerland 

			
	Attention:	  	Joseph E. Mamie
	Fax:	  	41 61 324 8111

  

	 	 	with a copy (which shall not constitute notice) to: 

  

	 	 	Novartis Pharma AG 

	 	 	Lichtstrasse 35 

	 	 	CH-4002 Basel 

	 	 	Switzerland 

			
	Attention:	  	Robert Pelzer
		  	General Counsel
	Fax:	  	41 61 324 6859

  

	 	 	with a copy (which shall not constitute notice) to: 

  

	 	 	Kaye Scholer LLP 

	 	 	425 Park Avenue 

	 	 	New York, New York 10022 

			
	Attention:	  	Adam H. Golden, Esq.
	Fax:	  	(212) 836-8689;

 or to such other address as such person may have furnished to the other persons identified in this
Section 10(e) in writing in accordance herewith. 
 f. Parties in Interest. The parties to this Agreement intend that all Holders
of Registrable Securities shall be entitled to receive the benefits of this Agreement and that any Notice Holder shall be bound by the terms and provisions of this Agreement by reason of such election with respect to the Registrable Securities which
are included in a Shelf Registration Statement. All of the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the respective successors and assigns of the parties hereto and any
Holder from time to time of the Registrable Securities to the aforesaid extent. In the event that any transferee of any Holder of Registrable Securities shall acquire Registrable Securities, in any manner, whether by gift, bequest, purchase,
operation of law or otherwise, such transferee shall, without any further writing or action of any kind, be entitled to receive the benefits of and, if a Notice Holder, be conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement to the aforesaid extent. 
  

 19 

 g. Counterparts; Facsimile Signatures. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Facsimile signatures shall constitute
original signatures for all purposes of this Agreement. 
 h. Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof. 
 i. Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of New York, without giving effect to any provisions relating to conflicts of law. 
 j. Severability. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality
and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties hereto shall be
enforceable to the fullest extent permitted by law. 
 k. Survival. The respective indemnities, agreements, covenants,
representations, warranties and other provisions set forth in this Agreement or made pursuant hereto shall remain in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of the
Investor, any Holder, or any officer, director, partner, employee, representative or agent of the Investor or any Holder, any agent or underwriter, any officer, director, partner, employee, representative or agent of such agent or underwriter, or
any controlling person of any of the foregoing, and shall survive the transfer and registration of the Registrable Securities of such Holder. 
 l. Effectiveness. This Agreement shall be effective from and after the Closing under Securities Purchase Agreement. 
 [Remainder of Page Intentionally Left Blank] 
  

 20 

 Please confirm that the foregoing correctly sets forth the agreement between the Company and you.

  

			
	Very truly yours,
	
	Cell Therapeutics, Inc.
		
	By:	 	 /s/    JAMES A. BIANCO, M.D.
  

	Name:	 	James A. Bianco, M.D.
	Title:	 	President & Chief Executive Officer

 Accepted as of the date hereof: 
  

			
	Novartis Pharma AG
		
	By:	 	/s/    JOSEPH E. MAMIE
	Name:	 	Joseph E. Mamie
	Title:	 	Head Operational Treasury
		
	By:	 	/s/    MATTHAIS RUNGE
	Name:	 	Matthais Runge
	Title:	 	Head Legal Oncology Region Europe

 [SIGNATURE PAGE TO REGISTRATION
RIGHTS AGREEMENT] 

 APPENDIX A 
 CELL THERAPEUTICS, INC. 
 FORM OF NOTICE OF REGISTRATION STATEMENT AND 
 SELLING SECURITYHOLDER ELECTION AND QUESTIONNAIRE 
 NOTICE 
 Cell Therapeutics, Inc. (the “Company”) has filed, or intends shortly to file, with the Securities and Exchange
Commission (the “Commission”) a registration statement on Form S-3 or such other Form as may be available (the “Shelf Registration Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as
amended (the “Securities Act”), of shares (the “Transfer Restricted Securities”) of the Company’s common stock, no par value per share (the “Common Stock”) in accordance with the terms of the Registration Rights
Agreement, dated as of September 15, 2006 (the “Registration Rights Agreement”), between the Company and the Investor signatory thereto. A copy of the Registration Rights Agreement is available from the Company. All capitalized terms
not otherwise defined herein have the meanings ascribed thereto in the Registration Rights Agreement. 
 To sell or otherwise dispose of any
Transfer Restricted Securities pursuant to the Shelf Registration Statement, a beneficial owner of Transfer Restricted Securities generally will be required to be named as a Selling Securityholder in the related Prospectus, deliver a Prospectus to
purchasers of Transfer Restricted Securities, be subject to certain civil liability provisions of the Securities Act and be bound by those provisions of the Registration Rights Agreement applicable to such beneficial owner (including certain
indemnification rights and obligations, as described below). To be included in the Shelf Registration Statement, this Notice and Questionnaire must be completed, executed and delivered to the Company at the address set forth herein for receipt prior
to or on the 20th calendar day from the receipt hereof (the “Notice and Questionnaire Deadline”). Beneficial Owners that do not complete and return this Notice and Questionnaire prior to the Notice and Questionnaire Deadline and deliver it
to the Company as provided below will not be named as Selling Securityholders in the Shelf Registration Statement and, therefore, will not be permitted to sell any Transfer Restricted Securities pursuant to the Shelf Registration Statement.

 Certain legal consequences arise from being named as a Selling Securityholder in the Shelf Registration Statement and the related
Prospectus. Accordingly, holders and beneficial owners of Transfer Restricted Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a Selling Securityholder in the Shelf
Registration Statement and the related Prospectus. 

 ELECTION 
 The undersigned holder (the “Selling Securityholder”) of Transfer Restricted Securities hereby elects to include in the Shelf Registration Statement the Transfer Restricted Securities beneficially owned by
it and listed below in Item III (unless otherwise specified under Item III). The undersigned, by signing and returning this Notice and Questionnaire, understands that it will be bound with respect to such Transfer Restricted Securities by the terms
and conditions of this Notice and Questionnaire and the Registration Rights Agreement. 
 Pursuant to the Registration Rights Agreement, the
Selling Securityholder has agreed to indemnify and hold harmless the Company, the Investor, any underwriter, each other Holder, their respective officers, directors, partners, employees, representatives and agents, and each person, if any, who
controls the Company, the Investor, any underwriter and any other Holder within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against certain losses arising in connection with statements
concerning the Selling Securityholder made in the Shelf Registration Statement or the related Prospectus in reliance upon the information provided in this Notice and Questionnaire. 
 The Selling Securityholder hereby provides the following information and represents and warrants that such information is accurate and complete:

 QUESTIONNAIRE 
  

	I.	A.    Full Legal Name of Selling Securityholder: 

  

	 	B.	Full legal name of registered holder (if not the same as (A) above) through which Transfer Restricted Securities listed in (III) below are held: 

  

	
	  

  

	 	C.	Full legal name of DTC participant (if applicable and if not the same as (B) above) through which Transfer Restricted Securities listed in Item III are held:

  

	
	  

  

	 	D.	Taxpayer identification or social security number of Selling Securityholder: 

  

	
	  

  

	II.	Address for notices to Selling Securityholder: 

  

	
	  

  

	
	  

 Telephone:                          
 Fax:                                     

 Email:                                     
      
 Contact
Person:                             
  

	III.	Beneficial ownership of Transfer Restricted Securities: 

  

	 	A.	Number of shares of Transfer Restricted Securities beneficially owned: 

  

	
	  

  

	 	B.	Number of shares of Transfer Restricted Securities that the undersigned wishes to be included in the Shelf Registration Statement: 

  

	
	  

  

	IV.	Beneficial ownership of the Company’s securities owned by the Selling Securityholder: 

 EXCEPT AS SET FORTH BELOW IN THIS ITEM IV, THE UNDERSIGNED IS NOT THE BENEFICIAL OR REGISTERED OWNER OF ANY SECURITIES OF THE COMPANY OTHER THAN THE
TRANSFER RESTRICTED SECURITIES LISTED ABOVE IN ITEM III (“Other Securities”). 
  

	 	A.	Type and amount of Other Securities beneficially owned by the Selling Securityholder: 

  

	
	  

  

	V.	Relationship with the Company: 

 Except as set forth below,
neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (5% or more) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during
the past three years. 
 State any exception here: 
  

	
	  

  

	
	  

  

	
	  

  

	VI.	Nature of the Selling Securityholder: 

  

	 	A.	Identify any natural person or other person having voting and investment control over the Company securities owned by the Selling Securityholder. 

  

	
	  

 Is the Selling Securityholder a reporting company under the Exchange Act, a majority owned subsidiary of a reporting
company under the Exchange Act or a registered investment company under the Investment Company Act? If so, please state which one. 
  

	
	  

 If the entity is a majority owned subsidiary of a reporting company, identify the majority stockholder that is a
reporting company. 
  

	
	  

  

	 	B.	Is the Selling Securityholder a registered broker-dealer? 

 Yes    No 
 If yes, state whether the Selling Securityholder received the Transfer Restricted Securities as compensation for
underwriting activities and, if so, provide a brief description of the transaction(s) involved. 
  

	
	  

 State whether the Selling Securityholder is an affiliate of a broker-dealer and if so, list the name(s) of the
broker-dealer affiliate(s). For the purposes of this Item VI(b), an “affiliate” of a broker-dealer includes any company that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control
with, such broker-dealer, and does not include individuals employed by any such broker-dealers or by their affiliates. 
 Yes    No 
 If the answer is “Yes”, you must answer the following: 
 If the Selling Securityholder is an affiliate of a registered broker-dealer, the Selling Securityholder purchased the Transfer Restricted Securities (i) in the
ordinary course of business, and (ii) at the time of the purchase of the Transfer Restricted Securities, had no agreements or understanding, directly or indirectly, with any person to distribute the Transfer Restricted Securities. 

Yes    No 
 If the answer is
“No”, state any exceptions here: 
  

	
	  

 If the answer is “No”, this may affect your ability to be included in the Shelf Registration
Statement. 

	VII.	Plan of Distribution: 

 Except as set forth below, the
undersigned (including its donees or pledgees) intends to distribute the Transfer Restricted Securities listed above in Item III pursuant to the Shelf Registration Statement only as follows (if at all). Such Transfer Restricted Securities may be
sold from time to time directly by the undersigned or, alternatively, through underwriters, broker-dealers or agents. If the Transfer Restricted Securities are sold through underwriters or broker-dealers, the Selling Securityholder will be
responsible for underwriting discounts or commissions or agent’s commissions. Such Transfer Restricted Securities may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices
determined at the time of sale, or at negotiated prices. Such sales may be effected in transactions (which may involve crosses or block transactions): 
  

	 	1.	on any national securities exchange or quotation service on which the Transfer Restricted Securities may be listed or quoted at the time of sale; 

  

	 	2.	in the over-the-counter market; 

  

	 	3.	in transactions otherwise than on such exchanges or services or in the over-the-counter market; or 

  

	 	4.	through the writing of options. 

 In connection with sales
of the Transfer Restricted Securities or otherwise, the undersigned may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Transfer Restricted Securities and deliver Transfer Restricted Securities to
close out such short positions, or loan or pledge Transfer Restricted Securities to broker-dealers that in turn may sell such securities. State any exceptions here: 
  

	
	  

  

	
	  

 By signing below, the Selling Securityholder acknowledges that it understands its obligation to
comply, and agrees it will comply, with the prospectus delivery requirements and other provisions of the Securities Act and Exchange Act and the respective rules and regulations promulgated thereunder, particularly Regulation M thereunder (or any
successor rules or regulations), in connection with any offering of Transfer Restricted Securities pursuant to the Shelf Registration Statement. 
 If the Selling Securityholder transfers all or any portion of the Transfer Restricted Securities listed in Item III above after the date on which such information is provided to the Company, the Selling Securityholder agrees to notify the
transferee(s) at the time of the transfer of its rights and obligations under this Notice and Questionnaire and the Registration Rights Agreement and agrees to deliver a notice of such transfer to the Company in substantially the form attached as
Exhibit 1 to this Notice and Questionnaire. 
 By signing below, the Selling Securityholder consents to the disclosure of the information
contained herein in its answers to Items I through VI above and the inclusion of such information in the Shelf Registration Statement and the related Prospectus. The Selling 

 Securityholder understands that such information will be relied upon by the Company in connection with the preparation or
amendment of the Shelf Registration Statement and the related Prospectus. 
 In accordance with the Selling Securityholder’s obligation
under the Registration Rights Agreement to provide such information as may be required by law for inclusion in the Shelf Registration Statement, the Selling Securityholder agrees to promptly notify the Company of any inaccuracies or changes in the
information provided herein that may occur subsequent to the date hereof at any time while the Shelf Registration Statement remains effective. All notices hereunder and pursuant to the Registration Rights Agreement shall be made in writing at the
address set forth below. 
 Once this Notice and Questionnaire is executed by the Selling Securityholder and received by the Company, the
terms of this Notice and Questionnaire and the representations and warranties contained herein shall be binding on, shall inure to the benefit of and shall be enforceable by the respective successors, heirs, personal representatives and assigns of
the Company and the Selling Securityholder with respect to the Transfer Restricted Securities beneficially owned by such Selling Securityholder and listed in Item III above. It shall be governed by, and construed in accordance with, the laws of the
State of New York without regard to the conflict of laws provisions thereof. 

 IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and Questionnaire to
be executed and delivered either in person or by its authorized agent. 
 Dated: 
  

			
	BENEFICIAL OWNER
	  

		
	By:	 	  

	Name:	 	
	Title:	 	

 Please return the completed and executed Notice and Questionnaire for receipt prior to or on the 20th
calendar day from receipt hereof to: 
 Cell Therapeutics, Inc. at: 
 201 Elliott Avenue West, Suite 400 
 Seattle, Washington 98119 
 Attention: Louis A. Bianco 
 with a copy to: 
 O’Melveny &
Myers LLP at: 
 275 Battery Street, Suite 2600 
 San Francisco, California 94111 
 Attention: Michael J. Kennedy, Esq. and David M. Miscia, Esq. 

 EXHIBIT 1 TO NOTICE AND QUESTIONNAIRE 
 NOTICE OF TRANSFER PURSUANT 
 TO REGISTRATION STATEMENT 
 Cell Therapeutics, Inc. 
 201 Elliott Avenue West, Suite 400 
 Seattle, Washington 98119 
 Re:    Cell Therapeutics, Inc. (the “Company”) 
 Ladies and Gentlemen: 
 Please be advised
that              has transferred              shares (the “Shares”) of the Company’s common stock,
no par value per share, pursuant to the Registration Statement on Form S-3 (File No.             ) filed by the Company. 
 We hereby certify that the prospectus delivery requirements, if any, of the Securities Act of 1933, as amended, have been satisfied with respect to the
transfer described above and that the above named beneficial owner of the Shares is named as a selling securityholder in the Prospectus, dated
                    , or in amendments or supplements thereto, and that the number of Shares transferred are [all] [a portion of] the Shares
listed in such Prospectus, as amended or supplemented, opposite such owner’s name. 
  

			
	Very truly yours,
	[name]
		
	By:	 	  

	(Authorized Signature)

  

	Dated:

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