Document:

lhdx-ex45_319.htm

Exhibit 4.5

THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR, SUBJECT TO SECTION 11 HEREOF, AN OPINION OF COUNSEL (WHICH MAY BE COMPANY COUNSEL) REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT, OR ANY APPLICABLE STATE SECURITIES LAWS.

WARRANT AGREEMENT

To Purchase Shares of the Common Stock of

LUCIRA HEALTH, INC.

Dated as of February 4, 2022 (the “Effective Date”)

WHEREAS, LUCIRA HEALTH, INC., a Delaware corporation (the “Company”), has entered into a Loan and Security Agreement of even date herewith (as it may be amended, amended and restated, or otherwise modified and in effect from time to time, the “Loan Agreement”) with Hercules Capital, Inc., a Maryland corporation, in its capacity as administrative and collateral agent, HERCULES CAPITAL, INC. (the “Warrantholder”), and the lender parties thereto;

WHEREAS, pursuant to the Loan Agreement and as additional consideration to the Warrantholder for, among other things, its agreements in the Loan Agreement, the Company has agreed to issue to the Warrantholder this Warrant Agreement, evidencing the right to purchase shares of the Company’s Common Stock (this “Warrant”, “Warrant Agreement”, or this “Agreement”);

NOW, THEREFORE, in consideration of the Warrantholder having executed and delivered the Loan Agreement and provided the financial accommodations contemplated therein, and in consideration of the mutual covenants and agreements contained herein, the Company and Warrantholder agree as follows:

SECTION 1.GRANT OF THE RIGHT TO PURCHASE COMMON STOCK.

(a)For value received, the Company hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and subject to the conditions hereinafter set forth, to subscribe for and purchase, from the Company, up to the aggregate number of fully paid and non-assessable shares of Common Stock (as defined below) as determined pursuant to Section 1(b) below, at a purchase price per share equal to the Exercise Price (as defined below). The number of shares and Exercise Price of such shares are subject to adjustment as provided in Section 8.  As used herein, the following terms shall have the following meanings:

“Act” means the Securities Act of 1933, as amended.

“Charter” means the Company’s Amended and Restated Certificate of Incorporation or other constitutional document, as may be amended, amended and restated or otherwise modified and in effect from time to time.

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“Common Stock” means the Company’s common stock, $0.001 par value per share, as presently constituted under the Charter, and any class and/or series of Company capital stock for or into which such common stock may be converted or exchanged in a reorganization, recapitalization or similar transaction.

“Exercise Price” means $5.03, subject to adjustment from time to time in accordance with the provisions of this Warrant.

“Liquid Sale” means the closing of a Merger Event in which the consideration received by the Company and/or its stockholders, as applicable, consists solely of cash and/or Marketable Securities.

“Marketable Securities” in connection with a Merger Event means securities meeting all of the following requirements: (i) the issuer thereof is then subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is then current in its filing of all required reports and other information under the Act and the Exchange Act; (ii) the class and series of shares or other security of the issuer that would be received by the Warrantholder in connection with the Merger Event were the Warrantholder to exercise this Warrant on or prior to the closing thereof is then traded on a national securities exchange or over-the-counter market, and (iii) following the closing of such Merger Event, the Warrantholder would not be restricted from publicly re-selling all of the issuer’s shares and/or other securities that would be received by the Warrantholder in such Merger Event were the Warrantholder to exercise this Warrant in full on or prior to the closing of such Merger Event, except to the extent that any such restriction (x) arises solely under federal or state securities laws, rules or regulations, and (y) does not extend beyond six (6) months from the closing of such Merger Event.

“Merger Event” means any of the following: (i) a sale, lease or other transfer of all or substantially all assets of the Company, (ii) any merger or consolidation involving the Company in which the Company is not the surviving entity or in which the outstanding shares of the Company’s capital stock are otherwise converted into or exchanged for shares of capital stock or other securities or property of another entity, or (iii) any sale by holders of the outstanding voting equity securities of the Company in a single transaction or series of related transactions of shares constituting a majority of the outstanding combined voting power of the Company.

“Purchase Price” means, with respect to any exercise of this Warrant, an amount equal to the then-effective Exercise Price multiplied by the number of shares of Common Stock as to which this Warrant is then exercised.

“Warrant Coverage” means 1.00% times the aggregate principal amount of Term Loan Advances (as defined in the Loan Agreement) made and funded under the Loan Agreement from time to time (but exclusive of any paid-in-kind interest that is capitalized as principal).

	
(b)
	
Number of Shares.    This Warrant shall be exercisable for a number of shares of Common Stock equal to the quotient derived by dividing (i) the Warrant Coverage by (ii) the Exercise Price, subject to adjustment from time to time in accordance with the provisions of this Warrant.

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SECTION 2.TERM OF THE AGREEMENT.

The term of this Agreement and the right to purchase Common Stock as granted herein shall commence on the Effective Date and, subject to Section 8(a) below, shall be exercisable until 6:00 p.m. (Pacific Time) on the seventh (7th) anniversary of the Effective Date.

SECTION 3.EXERCISE OF THE PURCHASE RIGHTS.

	
(a)
	
Exercise. The purchase rights set forth in this Agreement are exercisable by the Warrantholder, in whole or in part, at any time, or from time to time, prior to the expiration of the term set forth in Section 2, by tendering to the Company at its principal office a notice of exercise in the form attached hereto as Exhibit I (the “Notice of Exercise”), duly completed and executed. Promptly upon receipt of the Notice of Exercise and the payment of the Purchase Price in accordance with the terms set forth below, and in no event later than three (3) business days thereafter, the Company or its transfer agent shall either (i) issue to the Warrantholder a certificate for the number of shares of Common Stock purchased or (ii) credit the same via book entry to the Warrantholder, and the Company shall execute the acknowledgment of exercise in the form attached hereto as Exhibit II (the “Acknowledgment of Exercise”) indicating the number of shares which remain subject to future purchases under this Warrant, if any.

The Purchase Price may be paid at the Warrantholder’s election either (i) by cash or check, or (ii) by surrender of all or a portion of the Warrant for shares of Common Stock to be exercised under this Agreement and, if applicable, an amended Agreement setting forth the remaining number of shares purchasable hereunder, as determined below (“Net Issuance”). If the Warrantholder elects the Net Issuance method, the Company will issue shares of Common Stock in accordance with the following formula:

X = Y(A-B)

A

Where:X =the number of shares of Common Stock to be issued to the Warrantholder.

Y =the number of shares of Common Stock requested to be exercised under this Agreement.

A =the then-current fair market value of one (1) share of Common Stock at the time of exercise of this Warrant.

B =the then-effective Exercise Price.

For purposes of the above calculation, the current fair market value of shares of Common Stock shall mean with respect to each share of Common Stock:

(i)at all times when the Common Stock is traded on a national securities exchange, inter-dealer quotation system or over-the-counter bulletin board service, the average of the closing prices over a five (5) day period ending three (3) days before the day the current fair market value of the securities is being determined;

(ii)if the exercise is in connection with a Merger Event, the fair market value of a share of Common Stock shall be deemed to be the per share value received by the holders of the outstanding shares of Common Stock pursuant to such Merger Event as determined in accordance with the definitive transaction documents executed among the parties in connection therewith; or

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(iii)in cases other than as described in the foregoing clauses (i) and (ii), the current fair market value of a share of Common Stock shall be determined in good faith by the Company’s Board of Directors.

Upon partial exercise by either cash or Net Issuance, prior to the expiration or earlier termination hereof, the Company shall promptly issue an amended Agreement representing the remaining number of shares purchasable hereunder. All other terms and conditions of such amended Agreement shall be identical to those contained herein, including, but not limited to the Effective Date hereof.

	
(b)
	
Exercise Prior to Expiration. To the extent this Warrant is not previously exercised as to all shares of Common Stock subject hereto, and if the then-current fair market value of one share of Common Stock is greater than the Exercise Price then in effect, or, in the case of a Liquid Sale, where the value per share of Common Stock (as determined as of the closing of such Liquid Sale in accordance with the definitive agreements executed by the parties in connection with such Merger Event) to be paid to the holders thereof is greater than the Exercise Price then in effect, this Agreement shall be deemed automatically exercised on a Net Issuance basis pursuant to Section 3(a) (even if not surrendered) as of immediately before its expiration determined in accordance with Section 2. For purposes of such automatic exercise, the fair market value of one share of Common Stock upon such expiration shall be determined pursuant to Section 3(a). To the extent this Warrant or any portion hereof is deemed automatically exercised pursuant to this Section 3(b), the Company agrees to promptly notify the Warrantholder of the number of shares of Common Stock if any, the Warrantholder is to receive by reason of such automatic exercise, and to issue or cause its transfer agent to issue a certificate or a book-entry credit to the Warrantholder evidencing such shares.

SECTION 4.RESERVATION OF SHARES.

During the term of this Agreement, the Company will at all times have authorized and reserved a sufficient number of shares of its Common Stock to provide for the exercise of the rights to purchase Common Stock as provided for herein.

SECTION 5.NO FRACTIONAL SHARES OR SCRIP.

No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Agreement, but in lieu of such fractional shares the Company shall make a cash payment therefor in an amount equal to the product of (a) the Exercise Price then in effect multiplied by (b) the fraction of a share of Common Stock.

SECTION 6.NO RIGHTS AS STOCKHOLDER.

Without limitation of any provision hereof, the Warrantholder agrees that this Agreement does not entitle the Warrantholder to any voting rights or other rights as a stockholder of the Company prior to the exercise of any of the purchase rights set forth in this Agreement.

SECTION 7.WARRANTHOLDER REGISTRY.

The Company shall maintain a registry showing the name and address of the registered holder of this Agreement. The Warrantholder’s initial address, for purposes of such registry, is set forth in Section 12(g) below. The Warrantholder may change such address by giving written notice of such changed address to the Company.

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SECTION 8.ADJUSTMENT RIGHTS.

The Exercise Price and the number of shares of Common Stock purchasable hereunder are subject to adjustment from time to time, as follows:

(a)Merger Event. In connection with a Merger Event that is a Liquid Sale, this Warrant shall, on and after the closing thereof, automatically and without further action on the part of any party or other person, represent the right to receive the consideration payable on or in respect of all shares of Common Stock that are issuable hereunder as of immediately prior to the closing of such Merger Event less the Purchase Price for all such shares of Common Stock (such consideration to include both the consideration payable at the closing of such Merger Event and all deferred consideration payable thereafter, if any, including, but not limited to, payments of amounts deposited at such closing into escrow and payments in the nature of earn-outs, milestone payments or other performance-based payments), and such Merger Event consideration shall be paid to the Warrantholder as and when it is paid to the holders of the outstanding shares of Common Stock. In connection with a Merger Event that is not a Liquid Sale, the Company shall cause the successor or surviving entity to assume this Warrant and the obligations of the Company hereunder on the closing thereof, and thereafter this Warrant shall be exercisable for the same number and type of securities or other property as the Warrantholder would have received in consideration for the shares of Common Stock issuable hereunder had it exercised this Warrant in full as of immediately prior to such closing, at an aggregate Exercise Price no greater than the aggregate Exercise Price in effect as of immediately prior to such closing, and subject to further adjustment from time to time in accordance with the provisions of this Warrant. The provisions of this Section 8(a) shall similarly apply to successive Merger Events.

(b)Reclassification of Shares. Except for Merger Events subject to Section 8(a), if the Company at any time shall, by combination, reclassification, exchange or subdivision of securities or otherwise, change any of the securities as to which purchase rights under this Agreement exist into the same or a different number of securities of any other class or classes of securities, this Agreement shall thereafter represent the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities which were subject to the purchase rights under this Agreement immediately prior to such combination, reclassification, exchange, subdivision or other change. The provisions of this Section 8(b) shall similarly apply to successive combination, reclassification, exchange, subdivision or other change.

(c)Subdivision or Combination of Shares. If the Company at any time shall combine or subdivide its Common Stock, (i) in the case of a subdivision, the Exercise Price shall be proportionately decreased and the number of shares for which this Warrant is exercisable shall be proportionately increased, or (ii) in the case of a combination, the Exercise Price shall be proportionately increased and the number of shares for which this Warrant is exercisable shall be proportionately decreased.

(d)Dividends. If the Company at any time while this Agreement is outstanding and unexpired shall:

(i)pay a dividend with respect to the Common Stock payable in additional shares of Common Stock, then the Exercise Price shall be adjusted, from and after the date of determination of stockholders entitled to receive such dividend, to that price determined by multiplying the Exercise Price in effect immediately prior to such date of determination by a fraction (A) the numerator of which shall be the total number of shares of Common Stock outstanding immediately prior to such dividend or distribution, and (B) the denominator of which 

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shall be the total number of shares of Common Stock outstanding immediately after such dividend or distribution, and the number of shares of Common Stock for which this Warrant is exercisable shall be proportionately increased; or

(ii)make any other dividend or distribution on or with respect to Common Stock, except any dividend or distribution (A) in cash, or (B) specifically provided for in any other clause of this Section 8, then, in each such case, provision shall be made by the Company such that the Warrantholder shall receive upon exercise or conversion of this Warrant a proportionate share of any such dividend or distribution as though it were the holder of the Common Stock (or other stock for which the Common Stock is convertible) as of the record date fixed for the determination of the stockholders of the Company entitled to receive such dividend or distribution.

(e)  Notice of Certain Events. If: (i) the Company shall declare any dividend or distribution upon its outstanding Common Stock, payable in stock, cash, property or other securities (provided that the Warrantholder in its capacity as lender under the Loan Agreement consents to such dividend); (ii) the Company shall offer for subscription pro rata to the holders of its Common Stock any additional shares of stock of any class or other rights; (iii) the Company shall effect any redemption, reclassification, exchange, combination, substitution, reorganization or recapitalization of the outstanding shares of Common Stock (iv) there shall be any Merger Event; or (v) there shall be any voluntary dissolution, liquidation or winding up of the Company; then, in connection with each such event, the Company shall give the Warrantholder notice thereof at the same time and in the same manner as it gives notice thereof to the holders of outstanding Common Stock. In addition, if at any time the number of shares of Common Stock (or other securities of any other class or classes of securities of the Company for which this Warrant is then exercisable) outstanding is reduced such that the number of shares of Common Stock or other securities issuable upon exercise of this Warrant shall exceed five percent (5%) of the then outstanding class of such securities, then, within three (3) business days of such event, the Company shall give the Warrantholder written notice thereof.

	
 
	
SECTION 9.
	
REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY.

(a)  Reservation of Common Stock. The Company covenants and agrees that all shares of Common Stock that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be validly issued and outstanding, fully paid and non-assessable, and will be free of any taxes, liens, charges or encumbrances of any nature whatsoever; provided, that the Common Stock issuable pursuant to this Agreement may be subject to restrictions on transfer under state and/or federal securities laws. The Company has made available to the Warrantholder true, correct and complete copies of its Charter and bylaws currently in effect. The issuance of certificates or book-entry credit for shares of Common Stock upon exercise of this Warrant shall be made without charge to the Warrantholder for any issuance tax in respect thereof, or other cost incurred by the Company in connection with such exercise and related issuance of shares of Common Stock. The Company further covenants and agrees that the Company will, at all times during the term hereof, have authorized and reserved, free from preemptive rights, a sufficient number of shares of Common Stock to provide for the exercise of the rights represented by this Warrant.

(b)  Due Authority. The execution and delivery by the Company of this Agreement and the performance of all obligations of the Company hereunder, including the issuance to the Warrantholder of the right to acquire the shares of Common Stock, have been duly authorized by all necessary corporate action on the part of the Company. This Agreement: (i) does not violate the Charter or the Company’s current bylaws; (ii) does not contravene any law or governmental 

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rule, regulation or order applicable to the Company; and (iii) except as could not reasonably be expected to have a Material Adverse Effect (as defined in the Loan Agreement), does not and will not contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument to which the Company is a party or by which it is bound. This Agreement constitutes a legal, valid and binding agreement of the Company, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting creditors’ rights generally (including, without limitation, fraudulent conveyance laws) and by general principles of equity, regardless of whether considered in a proceeding in equity or at law.

(c)  Consents and Approvals. No consent or approval of, giving of notice to, registration with, or taking of any other action in respect of any state, federal or other governmental authority or agency is required with respect to the execution, delivery and performance by the Company of its obligations under this Agreement, except for the filing of notices pursuant to Regulation D under the Act and any filing required by the U.S. Securities and Exchange Commission, applicable stock market exchange, or applicable state securities law, which filings will be effective by the time required thereby.

	
(d)
	
Exempt Transaction. Subject to the accuracy of the Warrantholder’s representations in Section 10, the issuance of the Common Stock upon exercise of this Agreement will constitute a transaction exempt from (i) the registration requirements of Section 5 of the Act, in reliance upon Section 4(a)(2) thereof, and (ii) the qualification requirements of the applicable state securities laws.

(e)  Information Rights. At all times (if any) prior to the earlier to occur of (x) the date on which all shares of Common Stock issued on exercise of this Warrant have been sold, or (y) the expiration or earlier termination of this Warrant, when the Company shall not be required to file reports pursuant to Section 13 or 15(d) of the Exchange Act or shall not have timely filed all such required reports, the Warrantholder shall be entitled to the information rights contained in Section 7.1(b) – (f) of the Loan Agreement, and in any such event Section 7.1(b) – (f) of the Loan Agreement is hereby incorporated into this Agreement by this reference as though fully set forth herein, provided, however, that the Company shall not be required to deliver a Compliance Certificate once all Indebtedness (as defined in the Loan Agreement) owed by the Company to Warrantholder has been repaid.

(f)  Rule 144 Compliance.  The Company shall, at all times prior to the earlier to occur of (i) the date of sale or other disposition by Warrantholder of this Warrant or all shares of Common Stock issued on exercise of this Warrant, or (ii) the expiration or earlier termination of this Warrant if the Warrant has not been exercised in full or in part on such date, use all commercially reasonable efforts to timely file all reports required under the Exchange Act and otherwise timely take all actions necessary to permit the Warrantholder to sell or otherwise dispose of this Warrant and the shares of Common Stock issued on exercise hereof pursuant to Rule 144 promulgated under the Act (“Rule 144”), provided that the foregoing shall not apply in the event of a Merger Event following which the successor or surviving entity is not subject to the reporting requirements of the Exchange Act. If the Warrantholder proposes to sell Common Stock issuable upon the exercise of this Agreement in compliance with Rule 144, then, upon the Warrantholder’s written request to the Company, the Company shall furnish to the Warrantholder, within five (5) business days after receipt of such request, a written statement confirming the Company’s compliance with the filing and other requirements of such Rule 144.

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SECTION 10.
	
REPRESENTATIONS AND COVENANTS OF THE WARRANTHOLDER.

This Agreement has been entered into by the Company in reliance upon the following representations and covenants of the Warrantholder:

(a)  Investment Purpose. This Warrant and the shares issued on exercise hereof will be acquired for investment and not with a view to the sale or distribution of any part thereof in violation of applicable federal and state securities laws, and the Warrantholder has no present intention of selling or engaging in any public distribution of the same except pursuant to a registration or exemption.

(b)  Private Issue.  The Warrantholder understands that (i) the Common Stock issuable upon exercise of this Agreement is not, as of the Effective Date, registered under the Act or qualified under applicable state securities laws on the grounds that the issuance contemplated by this Agreement will be exempt from the registration and qualifications requirements thereof, and (ii) the Company’s reliance on exemption from such registration is predicated on the representations set forth in this Section 10.

(c)  Financial Risk.  The Warrantholder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment, and has the ability to bear the economic risks of its investment.

(d)  Accredited Investor. The Warrantholder is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Act, as presently in effect (“Regulation D”).

(e)  No Short Sales.  The Warrantholder has not at any time on or prior to the Effective Date engaged in any short sales or equivalent transactions in the Common Stock. Warrantholder agrees that at all times from and after the Effective Date and on or before the expiration or earlier termination of this Warrant, it shall not engage in any short sales or equivalent transactions in the Common Stock.

	
 
	
SECTION 11.
	
TRANSFERS.

Subject to compliance with applicable federal and state securities laws, this Agreement and all rights hereunder are transferable, in whole or in part, without charge to the holder hereof (except for transfer taxes) upon surrender of this Agreement properly endorsed. Each taker and holder of this Agreement, by taking or holding the same, consents and agrees that this Agreement, when endorsed in blank, shall be deemed negotiable, and that the holder hereof, when this Agreement shall have been so endorsed and its transfer recorded on the Company’s books, shall be treated by the Company and all other persons dealing with this Agreement as the absolute owner hereof for any purpose and as the person entitled to exercise the rights represented by this Agreement. The transfer of this Agreement shall be recorded on the books of the Company upon receipt by the Company of a notice of transfer in the form attached hereto as Exhibit III (the “Transfer Notice”), at its principal offices and the payment to the Company of all transfer taxes and other governmental charges imposed on such transfer. Until the Company receives such Transfer Notice, the Company may treat the registered owner hereof as the owner for all purposes.

	
 
	
SECTION 12.
	
MISCELLANEOUS.

(a)  Effective Date. The provisions of this Agreement shall be construed and shall be given effect in all respects as if it had been executed and delivered by the Company on the date hereof. This Agreement shall be binding upon any successors or assigns of the Company.

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(b)  Remedies. In the event of any default hereunder, the non-defaulting party may proceed to protect and enforce its rights either by suit in equity and/or by action at law, including but not limited to an action for damages as a result of any such default, and/or an action for specific performance for any default where the Warrantholder will not have an adequate remedy at law and where damages will not be readily ascertainable.

(c)  No Impairment of Rights. The Company will not, by amendment of its Charter or through any other means, avoid or seek to avoid the observance or performance of any of the terms of this Agreement, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate in order to protect the rights of the Warrantholder against impairment.

(d)  Additional Documents. The Company agrees to supply such other documents as the Warrantholder may from time-to-time reasonably request.

(e)  Attorneys’ Fees.  In any litigation, arbitration or court proceeding between the Company and the Warrantholder relating hereto, the prevailing party shall be entitled to attorneys’ fees and expenses and all costs of proceedings incurred in enforcing this Agreement. For the purposes of this Section 12(e), attorneys’ fees shall include without limitation fees incurred in connection with the following: (i) contempt proceedings; (ii) discovery; (iii) any motion, proceeding or other activity of any kind in connection with an insolvency proceeding; (iv) garnishment, levy, and debtor and third-party examinations; and (v) post-judgment motions and proceedings of any kind, including without limitation any activity taken to collect or enforce any judgment.

(f)  Severability.  In the event any one or more of the provisions of this Agreement shall for any reason be held invalid, illegal or unenforceable, the remaining provisions of this Agreement shall be unimpaired, and the invalid, illegal or unenforceable provision shall be replaced by a mutually acceptable valid, legal and enforceable provision, which comes closest to the intention of the parties underlying the invalid, illegal or unenforceable provision.

(g)  Notices.  Except as otherwise provided herein, any notice, demand, request, consent, approval, declaration, service of process or other communication that is required, contemplated, or permitted under this Agreement or with respect to the subject matter hereof shall be in writing, and shall be deemed to have been validly served, given, delivered, and received upon the earlier of: (i) personal delivery to the party to be notified, (ii) when sent by confirmed telex, electronic transmission or facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt, and shall be addressed to the party to be notified as follows:

If to the Warrantholder:

HERCULES CAPITAL, INC.

Legal Department

Attention: Chief Legal Officer

400 Hamilton Avenue, Suite 310

Palo Alto, CA 94301

Facsimile: 650-473-9194

Telephone: [****]

With a copy to:

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DLA PIPER LLP (US)

401 B Street, Suite 1700

San Diego, California 92101-4297

Attn: Matt Schwartz, Esq.

Facsimile: 858-638-5134

Telephone: [****]

If to the Company:

LUCIRA HEALTH, INC.

Attention: Chief Financial Officer

1412 62nd Street

Emeryville, California 94608

Email: [****]

With a copy to:

Cooley LLP

Attention: Josh Seidenfeld 

3175 Hanover Street

Palo Alto, CA 94304-1130

Telephone: [****]

Email: [****]

or to such other address as each party may designate for itself by like notice.

(h)  Entire Agreement; Amendments. This Agreement constitutes the entire agreement and understanding of the parties hereto in respect of the subject matter hereof, and supersedes and replaces in their entirety any prior proposals, term sheets, letters, negotiations or other documents or agreements, whether written or oral, with respect to the subject matter hereof. None of the terms of this Agreement may be amended except by an instrument executed by each of the parties hereto.

(i)  Headings. The various headings in this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any provisions hereof.

(j)  Advice of Counsel. Each of the parties represents to each other party hereto that it has discussed (or had an opportunity to discuss) with its counsel this Agreement and, specifically, the provisions of Sections 12(n), 12(o), 12(p), 12(q) and 12(r).

(k)  No Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

(l)  No Waiver.  No omission or delay by the Warrantholder at any time to enforce any right or remedy reserved to it, or to require performance of any of the terms, covenants or provisions hereof by the Company at any time designated, shall be a waiver of any such right or remedy to which the Warrantholder is entitled, nor shall it in any way affect the right of the Warrantholder to enforce such provisions thereafter during the term of this Agreement.

(m)  Survival. All agreements, representations and warranties contained in this Agreement or in any document delivered pursuant hereto shall be for the benefit of the Warrantholder and shall 

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survive the execution and delivery of this Agreement and the expiration or other termination of this Agreement.

(n)  Governing Law.  This Agreement has been negotiated and delivered to the Warrantholder in the State of California, and shall be deemed to have been accepted by the Warrantholder in the State of California. Delivery of Common Stock to the Warrantholder by the Company under this Agreement is due in the State of California. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction.

(o)  Consent to Jurisdiction and Venue. All judicial proceedings arising in or under or related to this Agreement may be brought in any state or federal court of competent jurisdiction located in the State of California. By execution and delivery of this Agreement, each party hereto generally and unconditionally: (i) consents to personal jurisdiction in Santa Clara County, State of California; (ii) waives any objection as to jurisdiction or venue in Santa Clara County, State of California; (iii) agrees not to assert any defense based on lack of jurisdiction or venue in the aforesaid courts; and (iv) irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement. Service of process on any party hereto in any action arising out of or relating to this Agreement shall be effective if given in accordance with the requirements for notice set forth in Section 12(g), and shall be deemed effective and received as set forth in Section 12(g). Nothing herein shall affect the right to serve process in any other manner permitted by law or shall limit the right of either party to bring proceedings in the courts of any other jurisdiction.

(p)  Mutual Waiver of Jury Trial. Because disputes arising in connection with complex financial transactions are most quickly and economically resolved by an experienced and expert person and the parties wish applicable state and federal laws to apply (rather than arbitration rules), the parties desire that their disputes arising under or in connection with this Warrant be resolved by a judge applying such applicable laws. EACH OF THE COMPANY AND THE WARRANTHOLDER SPECIFICALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY, “CLAIMS”) ASSERTED BY THE COMPANY AGAINST THE WARRANTHOLDER OR ITS ASSIGNEE OR BY THE WARRANTHOLDER OR ITS ASSIGNEE AGAINST THE COMPANY RELATING TO THIS WARRANT. This waiver extends to all such Claims, including Claims that involve persons or entities other the Company and the Warrantholder; Claims that arise out of or are in any way connected to the relationship between the Company and the Warrantholder; and any Claims for damages, breach of contract, specific performance, or any equitable or legal relief of any kind, arising out of this Agreement.

(q)  Arbitration. If the Mutual Waiver of Jury Trial set forth in Section 12(p) is ineffective or unenforceable, the parties agree that all Claims shall be submitted to binding arbitration in accordance with the commercial arbitration rules of JAMS (the “Rules”), such arbitration to occur before one arbitrator, which arbitrator shall be a retired California state judge or a retired Federal court judge. Such proceeding shall be conducted in Santa Clara County, State of California, with California rules of evidence and discovery applicable to such arbitration. The decision of the arbitrator shall be binding on the parties, and shall be final and nonappealable to the maximum extent permitted by law. Any judgment rendered by the arbitrator may be entered in a court of competent jurisdiction and enforced by the prevailing party as a final judgment of such court.

(r)  Pre-arbitration Relief. In the event Claims are to be resolved by arbitration, either party may seek from a court of competent jurisdiction identified in Section 12(o), any prejudgment order, writ or other relief and have such prejudgment order, writ or other relief enforced to the fullest 

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extent permitted by law notwithstanding that all Claims are otherwise subject to resolution by binding arbitration.

(s)  Counterparts.  This Agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts (including by facsimile or electronic delivery (PDF), and by different parties hereto in separate counterparts, each of which when so delivered shall be deemed an original, but all of which counterparts shall constitute but one and the same instrument.

(t)  Specific Performance.   The parties hereto hereby declare that it is impossible to measure in money the damages which will accrue to the Warrantholder by reason of the Company’s failure to perform any of the obligations under this Agreement and agree that the terms of this Agreement shall be specifically enforceable by the Warrantholder. If the Warrantholder institutes any action or proceeding to specifically enforce the provisions hereof, any person against whom such action or proceeding is brought hereby waives the claim or defense therein that the Warrantholder has an adequate remedy at law, and such person shall not offer in any such action or proceeding the claim or defense that such remedy at law exists.

(u)  Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute an original contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone.

(v)  Legends. To the extent required by applicable laws, this Warrant and the shares of Common Stock issuable hereunder (and the securities issuable, directly or indirectly, upon conversion of such shares of Common Stock, if any) may be imprinted with a restricted securities legend in substantially the following form:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION RELATED THERETO OR, SUBJECT TO SECTION 11 OF THE WARRANT AGREEMENT DATED FEBRUARY 4, 2022, BETWEEN THE COMPANY AND HERCULES CAPITAL, INC., AN OPINION OF COUNSEL (WHICH MAY BE COMPANY COUNSEL) REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACTOR ANY STATE SECURITIES LAWS.

[Remainder of Page Intentionally Left Blank]

 

 

 

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IN WITNESS WHEREOF. the parties hereto have caused this Warrant Agreement to be executed by its officers thereunto duly authorized as of the Effective Date.

COMPANY:LUCIRA HEALTH, INC.

By:  /s/ Daniel George

Name:  Daniel George

Title:Chief Financial Officer

 

 

 

 

Signature Page to Warrant

 
 

 

WARRANTHOLDER:HERCULES CAPITAL, INC.

By:  /s/ Seth Meyer

Name:  Seth Meyer

Title:CFO

 

 

 

 

 

 

Signature Page to Warrant

 
 

 

EXHIBIT I

NOTICE OF EXERCISE

To:LUCIRA HEALTH, INC.

	
(1)
	
The undersigned Warrantholder hereby elects to purchase [___________] shares of the Common Stock of LUCIRA HEALTH, INC., pursuant to the terms of the Warrant Agreement dated the 4th day of February, 2022 (the “Warrant Agreement”) between HERCULES CAPITAL, INC. and the Warrantholder, and [CASH PAYMENT: tenders herewith payment of the Purchase Price in full, together with all applicable transfer taxes, if any.] [NET ISSUANCE: elects pursuant to Section 3(a) of the Warrant Agreement to effect a Net Issuance.]

	
(2)
	
Please issue a certificate or certificates or book-entry credit(s) representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below.

 

(Name)

 

(Address)

WARRANTHOLDER:HERCULES CAPITAL, INC.

By:  

Name:  

Title:

 

 

 

 

 

 

 

 

EXHIBIT II 

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1.ACKNOWLEDGMENT OF EXERCISE

The undersigned LUCIRA HEALTH, INC., hereby acknowledges receipt of the “Notice of Exercise” from [______________] to purchase [______________] shares of the Common Stock of [_________________], pursuant to the terms of the Warrant Agreement by and between LUCIRA HEALTH, INC. and [_________] dated January [__], Warrant Agreement.

 

 

COMPANY:LUCIRA HEALTH, INC.

 

By: 

Title: 

Date: 

 

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EXHIBIT III

TRANSFER NOTICE

(To transfer or assign the foregoing Agreement execute this form and supply required information. Do not use this form to purchase shares.)

FOR VALUE RECEIVED, the foregoing Agreement and all rights evidenced thereby are hereby transferred and assigned to

 

(Please Print)

whose address is 

 

 

Dated:    

Holder’s Signature: 

Holder’s Address: 

 

Signature Guaranteed:

NOTE: The signature to this Transfer Notice must correspond with the name as it appears on the face of the Agreement, without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Agreement.

 

 

 

 

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Confidential – [****]

[****]

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [****], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

Exhibit 10.23

Distribution Agreement

This Distribution Agreement (this “Agreement”) is made and entered into as of July 14, 2021 (the “Effective Date”) by and between Lucira Health, Inc., a corporation organized under the laws of Delaware, with offices at 1412 62nd Street, Emeryville, CA, United States 94608 (“Lucira”) and Switch Health Solutions Inc., a corporation organized under the laws of Ontario, with offices at 163 Sterling Road, Unit M, Toronto ON, Canada, M6R 2B2 (the “Distributor”), each a “Party” and collectively referred to as the “Parties”.

Whereas, Lucira is in the business of manufacturing, packaging and selling medical devices and, in connection with its business, requires distribution and related services in the Territory (as defined below).

Whereas, the Distributor is experienced and qualified in providing such services and agrees to provide such services in accordance with this Agreement.

	
1.
	
Appointment and Term

1.1Appointment.  Subject to the terms and conditions of this Agreement, Lucira hereby appoints the Distributor as non-exclusive distributor with the right to import, distribute, offer for sale, sell, promote, and otherwise market, the products set forth in Exhibit A (the “Products”) solely in Canada (the “Territory”).  The Distributor accepts this appointment on the terms and conditions of this Agreement.  For the avoidance of doubt, Lucira reserves the right to import, distribute, offer for sale, sell, promote, and otherwise market the Products, itself or with any other third party in the Territory, subject to the restrictions herein.

1.2Term.  The term of this Agreement will commence on the Effective Date and will continue for one (1) year (the “Initial Term”), unless this Agreement is terminated earlier in accordance with this Agreement.

1.3Renewal.  Either Party shall have the right to renew this Agreement for successive periods of one (1) year each (the “Renewal Term” and together with the Initial Term, the “Term”) by providing written notice to the other Party at least [****] prior to the expiration of the Initial Term or Renewal Term, as applicable, subject to the rights of either Party to terminate the Agreement under Section 10.  If the Term is renewed, the terms and conditions of this Agreement during such Renewal Term are the same as the terms in effect immediately before the renewal, subject to any change agreed to by the Parties.

	
2.
	
Distribution of Products

2.1Purchase

(a)Lucira agrees to sell to the Distributor, and the Distributor agrees to purchase from Lucira, Products pursuant to purchase orders submitted to Lucira (each, a “Purchase Order”).  All Purchase Orders are subject to acceptance by Lucira.  The Distributor agrees that mere acknowledgement of receipt of a Purchase Order without an express acceptance of the Purchase Order in writing shall not be deemed acceptance of such Purchase Order.

 

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(b)Each Purchase Order shall specify a delivery date that is [****] from the date of Lucira’s receipt of the Purchase Order (unless otherwise agreed by the parties) (each, a “PO Delivery Date”) and include the Distributor’s contact information and ship to address, and the Distributor’s selected carrier.

(c)Each Purchase Order shall be subject to the terms and conditions of this Agreement, and any terms and conditions in any Purchase Order that are inconsistent with or supplemental to the terms and conditions of this Agreement shall be void and of no force or effect.  No additional terms shall be implied to any Purchase Order as a result of usage of trade, course of dealing or course of performance.

(d)Once submitted to Lucira, Distributor may not cancel or modify any such submitted Purchase Order without Lucira’s written consent.

(e)Lucira will use reasonable efforts to supply the exact quantities of Product that are the subject of an accepted Purchase Order, but Lucira shall not be liable to the Distributor for any failure to do so.

2.2Forecasts.  The Distributor will provide Lucira with a written, non-binding, rolling [****] forecast of Distributor’s good faith estimate of its demand for Products, which forecast shall be updated by the Distributor on a [****].  The initial forecast is set out in Exhibit B.

2.3No minimum or guaranteed volumes.  Distributor [****].  Lucira [****].

2.4Delivery and Shipping

(a)Lucira’s delivery of Products shall be [****] (“Delivery”).  Title to Products and risk of loss shall pass to Distributor [****].

(b)The Distributor will select the carrier.  The Distributor will be responsible for obtaining appropriate insurance to cover Product shipments, and shall pay all shipping, freight and handling fees and charges (“Shipping Costs”) in connection with delivery of Products to the Distributor.

(c)The Distributor shall be solely responsible for submitting any claims to insurance to cover any damage to or loss of Products, after Delivery to Distributor.

2.5Reports.  The Distributor shall submit written sales reports on a [****] basis to Lucira in such form as requested by Lucira, and shall [****] provide such further information regarding the Distributor’s sales and the inventory status as reasonably requested by Lucira.  Each Party will comply with all Applicable Law (as defined below), including any law relating to privacy, data protection, surveillance, direct marketing, data security or the handling of personal information, sensitive information, health information or similar data, in connection with providing such reports and further information.

	
3.
	
Obligations of the Distributor.

3.1General obligations.  The Distributor shall:

(a)store, handle and distribute the Products as required to maintain the quality and traceability of the Products, and in accordance with the Product labeling and any instructions provided by or on behalf of Lucira to the Distributor;

(b)[****] maintain a quantity of inventory for Product at all times during the Term to meet the requirements and demands of Distributor’s customers and potential customers;

 

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(c)comply with all applicable laws, rules and regulations, including all applicable good distribution practices (“Applicable Law”) in connection with its performance under this Agreement, including without limitation in relation to the importation, transportation, handling, distribution, offering for sale, sale, promotion, marketing, and commercialization of the Products;

(d)maintain a compliance program as required under its Establishment Licenses (as defined below) and Applicable Law to import, distribute, offer for sale, sell, promote, and otherwise market, the Products;

(e)not modify, adapt, alter or create derivative works from the Products (including the Product packaging and labeling) and shall not reverse engineer or disassemble any Product in any manner, in each case except as expressly directed by Lucira in writing;

(f)not recommend, market or promote the Products in any manner or make any representation, warranty or statement, including with respect to Product specifications, features or capabilities, in each case, which is inconsistent with the labeling of the Products, Lucira’s written instructions, Applicable Law, or this Agreement;

(g)not deliver, transfer, distribute, use, sell or otherwise divert the Product(s) for use outside the Territory;

(h)not deliver, transfer, distribute, or sell the Products to, or solicit any sales from, a customer if the Distributor knows or has reason to know that such customer intends to distribute or resell the Products outside of the Territory.  In the event that Distributor received any order for Products from a prospective customer based outside of the Territory, Distributor shall [****];

(i)conduct business in a professional and ethical manner and in a manner that reflects favorably at all times on the Products and the name, goodwill and reputation of Lucira;

(j)use suitably qualified personnel in accordance with good warehousing and distribution practices and ensure that the work areas at its applicable warehouse are safe and comply with all occupational health and safety standards set forth in Applicable Law;

(k)not distribute, transfer or sell any Product under Lucira’s name or trademark if such Product was not originally supplied by Lucira; and

(l)conduct all its obligations under this Agreement in connection with the Products in accordance with all Applicable Law in the Territory, including for certainty all of its obligations under the Food and Drugs Act, RSC 1985, c.  F-27, the Medical Device Regulations, SOR/98-282 and licenses issued thereunder.

3.2No Manufacturing.  The Distributor shall not have any right to manufacture or develop the Products, save for the right to re-package or re-label the Product as may be expressly agreed with Lucira in writing in advance.

3.3No Subcontracting.  The Distributor shall not subcontract any of its rights and obligations under this Agreement without Lucira’s prior written consent.  If Lucira does give the Distributor the right to sub-contract its rights and obligations under this Agreement, the Distributor shall remain responsible for all of its rights and obligations under this Agreement and if the acts or omissions of any such sub-contractor cause the Distributor to be in breach of this Agreement, the Distributor shall be responsible for them regardless of any remedy which the Distributor may have against the sub-contractor for breach of the subcontract.

 

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3.4Distributor’s Employees.  The Parties expressly acknowledge and agree that each Party is solely responsible for all of it’s employees and agents, and labor and other costs and expenses arising in connection therewith and for any and all claims, liabilities, damages, and debts of any type whatsoever that may arise on account of such Party’s activities, or those of such Party’s employees or agents, in the performance of this Agreement.  Lucira is in no manner associated or otherwise connected with the actual performance of this Agreement on the part of the Distributor, nor with the Distributor’s employment of other persons or incurring of other expenses.  Each Party will assume full responsibility for the proper reporting and payment of all taxes, contributions and special levies imposed or required under unemployment insurance, social security, income tax, and other laws or regulations, with respect to the performance of this Agreement by it and its employees and agents, and each Party agrees to indemnify and hold the other Party, its affiliates and their respective directors and officers, harmless from any liability, loss, damage, or claim arising against or incurred or paid by such other Party by reason of any failure by the Party to fully or timely to assume such responsibilities.

3.5Distributor Promotional Materials.  The Distributor shall be responsible, at its own cost and expense, for the production of promotional materials for use in the Territory.  Such promotional materials will be [****] promotional materials produced by Lucira, copies of which will be provided to the Distributor by Lucira [****].  The Distributor will provide Lucira with drafts (as well as all French translations) of all promotional material produced by the Distributor for Lucira’s approval as it relates to the Products and use of the Lucira Marks (as defined below).  The Distributor will make appropriate changes to the promotional material to reflect all comments provided by Lucira.  The Distributor shall ensure that all promotional material complies with Applicable Law relating to the promotion of the Products in the Territory and shall be solely responsible for such compliance.

3.6Promotion of the Product.  The Distributor shall [****] to maximize its sales of the Product in the Territory and to educate customers of the use of the Product in the Territory.

3.7Product Sales.  The Distributor will distribute and sell the Products [****].  All [****].  The Distributor shall [****] subject to compliance with the requirements of the regulatory and governmental agencies in the Territory and Applicable Law.  The Distributor shall not represent itself as an agent of Lucira for any purpose, nor pledge Lucira’s credit or give any condition or warranty or make any representation on Lucira’s behalf or commit Lucira to any contract, agreement or obligation.  The Distributor shall [****].

	
4.
	
Pricing and Payment

4.1Pricing; Taxes

(a)Distributor shall pay to Lucira the applicable prices in U.S. dollars set forth in Exhibit C for Products supplied by Lucira under this Agreement.  Lucira may adjust such prices from time to time in its discretion by [****].

(b)All amounts payable to Lucira under this Agreement are exclusive of all sales, use, value-added, withholding and other taxes and duties (collectively, “Taxes”).  The Distributor will pay all such Taxes assessed in connection with amounts payable to Lucira under this Agreement by any regulatory or governmental agency, except for taxes on Lucira’s net income.  The Distributor shall reimburse Lucira for all Taxes that Lucira may be required to pay in connection with amounts payable to Lucira under this Agreement (other than taxes on Lucira’s net income).

 

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[****]

 

4.2Payment.

(a)Once a Purchase Order has been accepted by Lucira, Distributor shall pay to Lucira [****].  After such payment by Distributor and [****] after the applicable PO Delivery Date, to the extent of there is any shortfall in Delivery of Products specified in a Purchase Order accepted by Lucira, Distributor may [****], and [****].  All amounts shall be paid to from one Party to the other Party in U.S. dollars.

(b)For certainty, Distributor may not set off or offset amounts that Distributor claims are due to it against any amounts payable to Lucira under this Agreement.  Payments made under this Agreement after their due date will incur interest at a rate equal to [****] or the highest rate permitted by Applicable Law, whichever is lower.  Distributor shall be responsible for all expenses of collection, including attorneys’ fees.  Except as expressly set forth herein, Lucira will not be responsible for any other costs or fees in connection with this Agreement, and Distributor shall be solely responsible for all costs and expenses related to the distribution or sale of Products.

4.3Credit risk and Distributor discounts to third party customers.  The Distributor will assume all credit risk on its third party customer accounts.  Any discount offered by the Distributor to its third party customers will be borne solely by the Distributor.

	
5.
	
Regulatory Matters

5.1Regulatory Licensing

(a)Lucira shall obtain and maintain, at its own expense, all authorizations, registrations, licenses, permits, markings and/or approvals necessary for Lucira to manufacture the Products and offer for sale, sell, promote and otherwise market the Products in the Territory (the “Product Licenses”).

(b)The Distributor shall obtain and maintain, at its own expense, all applicable registrations, licenses, permits, markings and/or approvals necessary for Distributor to import, distribute, offer for sale, sell, promote and otherwise market the Products in the Territory (the “Establishment Licenses”).

5.2Traceability.  Product supplied by Lucira shall be marked with a lot number for the purposes of traceability.  The Distributor shall ensure it records the lot number of each Product sold and shall maintain records of such in accordance with best practices, its obligations under the Establishment Licenses and Medical Device Regulations, SOR/98-282 and other Applicable Law.

5.3Complaint Handing.  The Distributor will promptly notify Lucira of any customer complaints concerning the Products which the Distributor becomes aware of, and shall provide copies of such complaints to Lucira as soon as possible and in any case [****] of becoming aware of any such complaint or incident that led to or had the potential to lead to the serious deterioration in the state of health of a patient, user or other person, or the death of a patient, user or other person, or that otherwise is required to be reported to any regulatory or governmental agency.  The Distributor shall provide all other complaints to Lucira [****] of becoming aware of such complaint or incident.  Lucira will decide the appropriate response to such customer complaints or incidents and shall be responsible for managing any related communications with regulatory or governmental agencies.  The Distributor will cooperate with Lucira and shall take all such actions as requested by Lucira to promptly investigate and resolve such complaints.  The Distributor recognizes that it may need to provide Lucira access to its customers so that Lucira may procure the necessary information in a timely fashion.

 

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5.4Other Product Issues.  Parties shall forward to the other Party copies of any written communication received by the Party from or prepared by the Party for any regulatory or governmental agencies, which relate to or may affect the quality and safety of the Products.  Each Party will immediately notify the other Party of any notification or other information which might affect the safety or effectiveness of Products and/or which might result in the recall or seizure of Products, of which that Party becomes aware.  Lucira shall be responsible for determining, directing and managing the appropriate response to communications received from any regulatory or governmental agency that has jurisdiction over the Products and Product Licenses.  Except as required by Applicable Law or as authorized by Lucira in writing, the Distributor shall not disclose any information regarding any adverse events or complaints to any third party, including without limitation, any regulatory or governmental agency.

5.5Recalls.  In the event a recall, suspension or withdrawal of a Product is required by any regulatory or governmental agency, or if such action is deemed advisable by Lucira (each a “Recall”), such Recall shall be implemented and administered [****], and in accordance with [****].  [****] directing and managing all related communications with regulatory or governmental agencies.  In the absence of an order of a regulatory or governmental agency, if the Parties are unable to agree upon a Recall, Lucira shall make the final decision on all matters related to such Recall (including matters relating to the method of implementation and related communications with regulatory and governmental agencies).  Subject to the foregoing, the Parties agree to cooperate to effectuate such Recall.  If applicable, the costs and expenses in connection with such Recall shall be paid by [****].  Where the liability cannot be determined, [****].  The Distributor shall have a total of [****] due under this Section 5.5 for a Recall, and any claims not submitted within such [****] shall be deemed waived.  Distributor will establish and maintain a tracing and recall system which will enable the Distributor, to the extent reasonably possible, to identify, as quickly as possible, customers that have been supplied with Product of any particular batch, and to Recall such Product from such customers.

5.6Return Authorizations.  The Distributor shall inspect all received Products.  The Distributor shall submit a claim for Products that do not conform to the Product Warranty (as defined in Section 7.3) or that were shipped in error (“Non-Conforming Products”) by requesting a returned materials authorization (“RMA”) from Lucira with an explanation of the alleged warranty breach or shipping error prior to that date.  Upon receipt of any such request, Lucira shall deliver an RMA to Distributor.  The Distributor may not return Products to Lucira without having obtained an RMA.  Within [****] after Distributor’s receipt of an RMA from Lucira, the Distributor shall return the applicable Products (“Returned Products”) together with the RMA to Lucira [****] in accordance with Lucira’s instructions (including without limitation as to delivery location, packing of the Product, method of shipment and carrier).  Title to Returned Products and risk of loss shall pass to Lucira at the time of delivery of the Products to such location.  The Distributor shall pay all Shipping Costs in connection with the delivery of Returned Products.  If Lucira determines that the Returned Products are Non-Conforming Products, then as the Distributor’s sole remedy and Lucira’s sole and exclusive liability with respect to the Non-Conforming Products, Lucira shall, at Lucira’s sole discretion and within a commercially reasonable timeframe, [****].  If Lucira determines that the Returned Products are conforming, then Lucira may retain the Returned Products and [****].  Any dispute between the Parties as to whether a Product is a Non-Conforming Product shall be determined in accordance with Section 11.7.

5.7Returned Products.  The Distributor understands and agrees that except for Returned Products, Lucira shall not accept any Product returns from the Distributor, and that Distributor shall be solely responsible for any and all liabilities, costs and expenses associated with any customer-returned Product accepted by the Distributor that are not Returned Products.  The Distributor will direct its customers to the terms of Lucira’s current return policy that accompanies each provided Product.  In the event that any customer returns a Product to the Distributor as a Non-Conforming Product that breaches the Product Warranty, the Distributor shall immediately notify Lucira of the same, and shall comply with the process set forth in Section 5.6 above.  In no event shall Lucira have any responsibility or liability for [****].

 

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5.8Audits.  During the Term and for a period of [****] thereafter, or longer as may be required by Applicable Law, both Parties will maintain complete, accurate, and legible records, accounts, notes, reports and data pertaining to its obligations hereunder in an organized manner, including but not limited to pricing, pricing tiers, discounts, and rebates, to establish and verify the Parties’ compliance with this Agreement (collectively, “Records”).  All Records shall be maintained and stored in a secure area reasonably protected from fire, other natural hazards, theft and destruction.  [****], Lucira or its designee shall have the right, upon reasonable advance notice and during normal business hours, to review and verify the Distributor’s compliance with this Agreement, including without limitation physical inspection of the Records, audit of the conditions in which Product inventory is stored, handled and distributed, and review of all policies, procedures and practices used to maintain the privacy, security and confidentiality of all Confidential Information (as defined below), including any personal information.  The Distributor will cooperate in any audit conducted hereunder, including providing reasonable access to any and all of its respective employees, agents and other representatives.

5.9Regulatory Audits.  In the event that the Distributor or its premises is audited or inspected or Distributor is notified of an upcoming audit or inspection by any regulatory or governmental agency with jurisdiction over Distributor, the Products, the Product Licenses or the Establishment Licenses, Distributor shall [****], notify Lucira of such notice, audit or inspection as well as of any information reasonably required in connection therewith, including any alleged violations or deficiencies relating to the Products.  The Distributor shall [****] disclose to Lucira all materials, correspondence and documents that the Distributor receives, obtains or generates pursuant to any such audit or inspection, including any relevant portions of any notice of observations or potential violations, as well as a copy of the Distributor’s response thereto.  Distributor shall correct all identified deficiencies in a timely manner, and shall provide Lucira with periodic updates on the progress being made, as well as when all deficiencies have been corrected.  The Distributor shall [****] disclose to Lucira any threat to the good-standing of its Establishment Licenses or ability to import, distribute, offer for sale, sell, promote, and otherwise market the Products in the Territory in compliance with Applicable Law.

5.10Legal Compliance and Disclosures.  Each Party shall be responsible for accurately reporting the payments provided hereunder to regulatory or governmental agencies and to customers to the extent that it has obligations to report the same under Applicable Law, including federal and state anti-kickback statutes and regulations.

5.11Product Changes.  For the avoidance of doubt, Lucira has the right, in its business judgment, to supplement, modify and update the Product specifications from time to time.  Lucira will provide the Distributor with advance written notice of any such changes, including those that should be communicated to end-users of the Product.

	
6.
	
Proprietary Rights

6.1Lucira’s Ownership.  All information regarding the Product provided by or on behalf of Lucira (collectively, “Product Materials”), Lucira’s trademarks, trade names, service marks and service names (collectively, “Lucira Marks”), patents, patent applications, copyrights, industrial designs, software and any other registered or unregistered intellectual property and proprietary rights held or licensed to Lucira (collectively, “Lucira IP”) are and will remain Lucira’s sole and exclusive property, notwithstanding any term or condition of this Agreement or any sale of a physical Product unit.  Except as otherwise provided herein, Lucira shall not be deemed by this Agreement to have granted any licenses or other rights to patent rights, trademark rights, know-how or other proprietary or intellectual property rights of Lucira (or its licensors) or otherwise relating to the Product Materials, Lucira Marks, Products or Lucira IP, and all rights and licenses not expressly granted to Distributor are expressly reserved to Lucira.

 

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6.2Distributor’s Ownership.  All information regarding all of Distributor’s trademarks, trade names, service marks and service names (collectively, “Distributor Marks”)], patents, patent applications, copyrights, industrial designs, software and any other registered or unregistered intellectual property and proprietary rights held or licensed to the Distributor (collectively, “Distributor IP”) are and will remain Distributor’s sole and exclusive property, notwithstanding any term or condition of this Agreement.  Except as otherwise provided herein, Distributor shall not be deemed by this Agreement to have granted any licenses or other rights to patent rights, trademark rights, know-how or other proprietary or intellectual property rights of Distributor (or its licensors) or otherwise relating to the Distributor Marks or Distributor IP and all rights and licenses not expressly granted to Lucira are expressly reserved to Distributor.

6.3Third Party Infringement.  The Distributor will [****] protect Lucira’s intellectual property and proprietary rights in the Product Materials, Lucira Marks, Lucira IP and Products and will report promptly to Lucira any infringement of such rights of which Distributor becomes aware.  Lucira reserves the sole and exclusive right at its discretion to assert claims against third parties for infringement or misappropriation of its rights in the Product Materials, Lucira Marks, Lucira IP or Products.

6.4Promotion and Co-Promotion.

(a)Subject to Section 6.4(b), the Distributor shall distribute and sell the Products solely under Lucira Marks and branding and using the Product Materials, and not under any other mark or branding or with promotional materials of Distributor or any third party.

(b)Notwithstanding Section 6.4(a), the materials identified in Exhibit D (“Co-Promotional Materials”) may include both Lucira Marks and Distributor Marks as set out in Exhibit D and agreed to by the Parties, and Distributor may distribute and sell the Products using such Co-Promotional Materials, provided that the use or distribution of any such Co-Promotional Materials will be subject to the Parties’ prior written approval.

6.5Lucira License.  Lucira grants Distributor, subject to the terms and conditions of this Agreement, a limited, non-exclusive, non-transferable, non-sublicensable license to use the Lucira Marks and Product Materials solely to the extent necessary to import, distribute, offer for sale, sell, promote, and otherwise market the Products in the Territory, provided that each such use shall be subject to Lucira’s prior written consent (not to be unreasonably withheld, conditioned or delayed).  All uses of the Lucira Marks shall be in accordance with Lucira’s trademark usage guidelines then in effect, and Lucira is entitled to inspect Distributor’s uses of the Lucira Marks to ensure compliance with such guidelines and this Agreement.  Such uses must reference the Lucira Marks as being owned by Lucira and will inure to Lucira’s benefit.  The rights granted to Distributor in this Section 6.5 will automatically terminate upon any expiration or termination of this Agreement [****].  Lucira will have the exclusive right to own, use, hold, apply for registration for, and register the Lucira Marks during the Term of, and after the expiration or termination of, this Agreement.  The Distributor will neither take nor authorize any activity inconsistent with such exclusive right.  The Distributor hereby assigns all its existing and future right, title and interest in and to any and all goodwill in the Product Materials and Lucira Marks to Lucira.

6.6Similar Marks.  Except as permitted under the terms of this Agreement, the Distributor shall not use or register any trademarks, trade names, service marks, services names or business names that are similar to, or likely to cause confusion with, any of the Lucira Marks.

6.7Distributor License.  Distributor shall grant to Lucira a limited, non-exclusive, non-transferable, non-sublicensable licence to use Distributor IP, for the sole purpose of fulfilling the Parties’ obligations under this Agreement.  Lucira shall not have any right to use or register any trademarks, trade names, service marks, services names or business names that are similar to, or likely to cause confusion with, any of the Distributor Marks.  Any use by Lucira of Distributor Marks shall be done so only with 

 

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prior approval by Distributor and such use will be on behalf of Distributor and all rights and goodwill of such use shall inure to Distributor’s benefit.

	
7.
	
Warranties

7.1Mutual Representations.  Each Party hereby represents and warrants to the other Party that as of the Effective Date, all requisite action on the part of such Party and its officers and directors necessary for the authorization, execution and delivery of this Agreement and the performance of all obligations of such Party hereunder has been validly taken.

7.2Warranties by the Distributor.  The Distributor represents, warrants, and covenants to Lucira that:

(a)it is highly skilled and experienced in performing the activities contemplated in this Agreement;

(b)its buildings, equipment, hardware, facilities and systems used in the performance of this Agreement are suitable for their respective purpose and adequately maintained by the Distributor to preserve such suitability;

(c)it has not been excluded from participation in any government healthcare program, debarred or suspended from or under any other federal program, convicted of any offense defined in 42 U.S.C. Section 1320a-7 or similar provision of Applicable Law, or otherwise deemed ineligible for participation in any healthcare programs, nor is aware of any pending or potential actions that would give rise to any such ineligibility,

(d)it will provide the distribution and other services contemplated hereunder in a timely, competent, efficient and professional manner, using its best efforts, in accordance with the highest industry standards, and in compliance with all Applicable Law, its Establishment Licenses and the terms and conditions of this Agreement,

(e)it has, and shall maintain throughout the Term, all training, licenses, approvals, certifications, equipment and information necessary for safely and properly performing the distribution and other services hereunder, including for greater certainty the Establishment Licenses,

(f)it shall not infringe, misappropriate or violate the rights of any third party.  The Distributor will immediately notify Lucira in writing if the Distributor is listed by any regulatory or governmental agency as excluded, debarred, suspended or otherwise ineligible to participate in any federal, national, international and/or state health care programs or if Lucira is convicted of any crime relating to any such program or is being investigated by any regulatory or governmental agency in relation thereto.  Upon any such occurrence, Lucira shall have the absolute right (without any obligation) to terminate this Agreement immediately upon notice.

7.3Product Warranty.  Lucira warrants to the Distributor that, as at the time of Delivery of the applicable Products, [****] (the “Product Warranty”).  The Product Warranty shall not apply to [****].

7.4Disclaimer.  EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT (INCLUDING SECTION 7.3) OR TO THE EXTENT PROHIBITED BY LAW, THE PRODUCTS ARE PROVIDED “AS IS” WITHOUT WARRANTIES, GUARANTEES, CONDITIONS OR REPRESENTATIONS OF ANY KIND, AND DISTRIBUTOR HEREBY DISCLAIMS ALL SUCH REPRESENTATIONS OR WARRANTIES IN CONNECTION WITH THIS AGREEMENT, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-

 

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INFRINGEMENT.  THE DISTRIBUTOR ACKNOWLEDGES AND AGREES THAT LUCIRA IS NOT, AND SHALL NOT BE DEEMED TO BE, A PROVIDER OF PATIENT HEALTH CARE SERVICES BY VIRTUE OF ITS SALE OF PRODUCTS OR ITS PERFORMANCE UNDER THIS AGREEMENT.  IF THE DISTRIBUTOR IS A HEALTH CARE PROVIDER AND FURTHER DISTRIBUTES PRODUCTS TO PATIENTS, DISTRIBUTOR IS SOLELY RESPONSIBLE FOR ANY AND ALL MEDICAL DECISIONS, ADVICE, ACTS AND OMISSIONS WITH RESPECT TO THE TREATMENT OF ANY PATIENT, INCLUDING WITHOUT LIMITATION ANY USE OF ANY PATIENT DATA GENERATED THROUGH THE USE OF THE PRODUCT (AND SHALL INDEMNIFY LUCIRA AGAINST PATIENT OR GOVERNMENTAL ACTIONS ARISING OUT OF THE FOREGOING).  THE DISTRIBUTOR ACKNOWLEDGES THAT ITS USE OF THE PRODUCTS DOES NOT RELIEVE THE DISTRIBUTOR FROM USING ITS BEST MEDICAL JUDGMENT TO DETERMINE THE APPROPRIATE COURSE OF TREATMENT FOR PATIENTS.

	
8.
	
Indemnification and Limitation of Liability

8.1Indemnity by Lucira.  Lucira shall defend, indemnify and hold harmless the Distributor, its affiliates, and their respective directors, officers, and employees (“Distributor Indemnitees”) of each of the foregoing from and against any and all liability, damages, loss, and expenses (including reasonable attorneys’ fees and expenses of litigation) (“Losses”) incurred as a result of any claim, suit or proceeding brought by a third party (“Claims”) to the extent resulting from (i) [****].

8.2Indemnity by Distributor.  The Distributor shall defend, indemnify and hold harmless Lucira, its affiliates, and their respective directors, officers and employees (“Lucira Indemnitees”) of each of the foregoing from and against any and all Losses incurred as a result of any Claims to the extent based on (i) [****].

8.3Claims Procedure.  The indemnified Party shall promptly notify the indemnifying Party of any Claim for which indemnification is sought hereunder (provided that any delay in giving such notification shall not relieve the indemnifying Party of its obligations hereunder except to the extent the indemnifying Party is actually prejudiced by such delay), and shall cooperate with the indemnifying Party in its defense of the Claim at the indemnifying Party’s expense.  The indemnifying Party shall have the right to exercise sole control over the defense and settlement of any such Claim, provided that the indemnifying Party shall not (i) enter into any non-monetary settlement, (ii) admit fault or liability on the indemnified Party’s behalf, or (iii) enter into any settlement for any amount in excess of the amount for which the indemnifying Party will indemnify the indemnified Party, without the prior written consent of the indemnified Party.  In addition, an indemnified Party shall not enter into any settlement or admit fault for any Claim for which it seeks indemnification under this Agreement without the prior written consent of the indemnifying Party, which consent shall not be unreasonably conditioned, withheld or delayed.

8.4Limitation of Liability.  EXCEPT TO THE EXTENT PROHIBITED BY APPLICABLE LAW, (I) IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL, INDIRECT OR RELIANCE DAMAGES (INCLUDING WITHOUT LIMITATION, COSTS OF PROCUREMENT OF SUBSTITUTE GOODS) OR FOR PUNITIVE DAMAGES, LOST PROFITS OR BUSINESS OPPORTUNITIES, HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY, WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), OR OTHERWISE; AND (II) LUCIRA’S AGGREGATE LIABILITY TO DISTRIBUTOR HEREUNDER SHALL NOT EXCEED [****], REGARDLESS OF THE NUMBER OF CLAIMS.  THESE LIMITATIONS SHALL APPLY EVEN IF DISTRIBUTOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

8.5Insurance.  [****], each Party will procure and maintain insurance, including product liability insurance, with respect to its activities hereunder which is consistent with normal business practices 

 

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of prudent similarly situated companies, and sufficient to meet its obligations under this Agreement; for greater certainty, the Distributor shall maintain such insurance in an amount not less than [****], [****].  Any such insurance coverages shall not be construed to create a limit of either Party’s liability with respect to its indemnification obligations hereunder.  Each Party will provide the other Party with evidence of such insurance upon request.

	
9.
	
Confidentiality

9.1Confidential Information.  Each Party (as the “Receiving Party”) acknowledges that it may acquire knowledge or information which is the valuable, special or unique property of the other Party (the “Disclosing Party”) and which at the time of disclosure is either (i) marked as being “Confidential” or “Proprietary,” (ii) otherwise reasonably identifiable as the confidential or proprietary information of the Disclosing Party, or (iii) under the circumstances of disclosure should reasonably be considered as confidential or proprietary information of the Disclosing Party, including, but not limited to, intellectual property, knowledge, know-how, research and data, processes, formulas, development or experimental work, work-in-process, processes, trade secrets, or any other secret or confidential matter relating to the products, activities, services, advertising, marketing, research, programs, customer lists, customer information (including personal information and personal data), financial information, and product information or any other information or material or business of the Disclosing Party (collectively, “Confidential Information”).

9.2Exclusions.  Notwithstanding section 9.1, Confidential Information does not include information that (a) enters the public domain and becomes generally available to the public other than as a result of direct or indirect disclosure by the Receiving Party or any affiliate of the Receiving Party (including, without limitation, disclosure as a result of a violation of the terms and conditions of this Agreement by the Receiving Party or any affiliate of the Receiving Party); (b) is generally known to the public on the Effective Date or at the time of the disclosure of such information by the Disclosing Party to the Receiving Party or later becomes generally known to the public, in either case other than as a result of disclosure in violation of the terms of this Agreement by the Receiving Party or any affiliate of the Receiving Party after the Effective Date; (c) was developed by the Receiving Party independent of any disclosure by the Disclosing Party or was available to the Receiving Party on a non-confidential basis prior to its disclosure to the Receiving Party by the Disclosing Party; or (d) is available to the Receiving Party on a non-confidential basis prior to disclosure by the Disclosing Party or becomes available to the Receiving Party on a non-confidential basis from a person other than the Disclosing Party provided that such person is not then in violation of a confidentiality obligation owed to the Disclosing Party of which the Receiving Party is aware.

9.3Protection of Confidential Information.  The Receiving Party shall (a) protect and safeguard the confidentiality of the Disclosing Party’s Confidential Information with at least the same degree of care as the Receiving Party would protect its own Confidential Information, but in no event with less than a commercially reasonable degree of care; (b) not use the Disclosing Party’s Confidential Information, or permit it to be accessed or used, for any purpose other than to exercise its rights or perform its obligations under this Agreement; and (c) not disclose any such Confidential Information to any person or entity, except to the Receiving Party’s representatives and employees who need to know the Confidential Information to assist the Receiving Party, or act on its behalf, to exercise its rights or perform its obligations under this Agreement.

9.4Disclosures Required by Law.  If the Receiving Party is required by Applicable Law or legal process to disclose any Confidential Information of the Disclosing Party, it shall, prior to making such disclosure, notify the Disclosing Party of such requirements to afford the Disclosing Party the opportunity to seek, at the Disclosing Party’s sole cost and expense, a protective order or other remedy.

 

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9.5Expiration or Termination.  Upon the expiration or termination of this Agreement, the Receiving Party shall at its own expense and in compliance with the Disclosing Party’s request, either immediately deliver to the Disclosing Party or destroy (and certify in writing such destruction), all Confidential Information of the Disclosing Party, including all copies thereof in such Party’s possession or control; provided however, that the Receiving Party may retain a single copy of certain Confidential Information of the Disclosing Party to the extent necessary to comply with Applicable Law.  The expiration or termination of this Agreement shall not affect the rights and obligations of the Parties with respect to Confidential Information under this Section 9, which shall survive the expiration or termination of this Agreement.

	
10.
	
Termination

10.1Mutual Rights.  Either Party may terminate this Agreement:

(a)immediately for material breach by the other Party if: (i) such breach is capable of being cured within [****] and continues uncured for a period of [****] after receipt of written notice thereof, or (ii) such breach is incapable of cure;

(b)if the other Party enters into insolvency or bankruptcy or a trustee or receiver or the equivalent is appointed for the other Party, or proceedings are instituted against the other Party relating to dissolution, liquidation, winding up, bankruptcy, insolvency, etc., if such proceedings are not terminated or discharged within [****]; or

(c)for its convenience upon thirty (30) days’ notice to the other Party.

10.2Regulatory Termination Rights.  Either Party may terminate this Agreement immediately upon written notice if a regulatory or governmental agency or a court takes any action the result of which, in such Party’s reasonable judgment, would prohibit or significantly restrict the sale, distribution, use or manufacture of the Products in accordance with this Agreement.

10.3Effect of Termination.  Upon expiration or termination of this Agreement, (a) unless otherwise agreed by the Parties in writing, all Purchase Orders for which Delivery has not been made shall be cancelled immediately, (b) if applicable, all outstanding and unpaid invoices shall become immediately due and payable including credits and/or refunds owed by Lucira to Distributor, and (c) the Distributor shall [****].  Upon request, Distributor shall assist Lucira with the orderly transfer of any Distributor obligations as expeditiously as possible, and render all assistance reasonably requested in connection therewith.  The expiration or termination of this Agreement shall not relieve the Parties of any obligation accruing prior to the effective date of such expiration or termination.  The following sections shall survive expiration or termination of this Agreement for any reason: Sections 3.1(a), 3.1(c), 3.1(e), 3.1(f), 3.1(g), 3.1(h), 3.1(i), 3.1(k), 3.1(l), 3.3 (last sentence), 3.4, 3.7 (last sentence), 4.1(b), 4.2, 4.3, 5.2, 5.3, 5.4, 5.5, 5.8, 5.9, 6.1, 7, 8, 9, 11.6, 11.7, 11.9, 11.10, 11.11, 11.12, 11.15 and this Section 10.3, and any other provisions hereof which by their nature reasonably should survive such expiration or termination.

	
11.
	
Miscellaneous.

11.1Anti-bribery and anti-corruption.  Each Party will comply with all Applicable Law regarding anti-bribery and anti-corruption, including, if applicable, the U.S. Foreign Corrupt Practices Act, and will not (a) offer, promise, make, authorize or provide (directly or indirectly) a gift, payment or anything of value to any person (including any governmental official or private sector employee), for the purpose of corruptly obtaining or retaining business or securing any improper advantage or (b) engage in any act that might cause a reasonable person to infer that the other Party is making improper gifts or payments to any third party.  Each Party shall promptly inform the other Party in writing, if, during the course of this 

 

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Agreement, said Party is convicted of or pleads guilty to a criminal offence involving fraud or corruption, or receives notice that it is the subject of any government investigation for such offenses, or is listed by any regulatory or governmental agency as debarred, suspended, proposed for suspension or debarment, or otherwise ineligible for government programs.  Furthermore, each Party confirms that it does not have any interest which directly or indirectly conflicts with its proper and ethical performance of this Agreement; and agrees that it shall inform the other Party in writing at the earliest possible opportunity of any conflict of interest that arises during the performance of this Agreement.

11.2Proper Recording of Transactions.  Each Party shall ensure that all transactions under this Agreement are properly and accurately recorded in all material respects on its books and records and each document upon which entries such books and records are based is complete and accurate in all material respects.  Each Party shall maintain a system of internal accounting controls reasonably designed to ensure that it maintains no off-the-books accounts.

11.3Sanctions.  Each Party confirms that it is aware of and, in carrying out its obligations under this Agreement, will comply at all times with and not become exposed to penalties under all applicable sanctions, export control, and anti-boycott laws, regulations, orders, directives, designations, licenses, and decisions of the European Union, the United Kingdom, and the United States of America, and of any other country with jurisdiction over activities undertaken in connection with this Agreement (the “Sanctions and Trade Controls”).  Each Party shall perform its obligations under this Agreement in accordance with, and will not take any action that causes the other Party or its affiliates to violate or otherwise become exposed to penalties under, any Sanctions and Trade Controls.  Each Party agrees that it shall:

(a)screen and conduct other due diligence, as appropriate, with respect to the persons and entities with which it intends to engage or otherwise deal in connection with the performance of its obligations under this Agreement to ensure that such dealings are authorized under Sanctions and Trade Controls; and

(b)immediately notify the other Party in writing if any person or entity with which it intends to engage or otherwise deal in connection with the performance of its obligations under this Agreement becomes the target of any Sanctions and Trade Controls.

11.4Publicity.  Neither Party shall make any statement to the public regarding the execution or the subject matter of this Agreement without the prior written consent of the other Party (such consent not to be unreasonably withheld, conditioned or delayed) except to the extent required by Applicable Law, including disclosures required by any securities exchange regulation; provided that, in each such case where disclosure is required by Distributor pursuant to Applicable Law, the Distributor shall promptly notify Lucira of such required disclosure and Lucira shall have the right to review such disclosures prior to submission.

11.5Force Majeure.

(a)Failure of either Party to perform its obligations under this Agreement (other than of the obligations to make any payments or of confidentiality) shall not subject such Party to any liability or place them in breach of any term or condition of this Agreement to the other Party if such failure is caused by a Force Majeure Event (as defined below).  The corresponding obligations of the other Party will be suspended to the same extent.  The Party affected by a Force Majeure Event (“Affected Party”) shall promptly notify the other Party of the condition constituting a Force Majeure Event and shall exert commercially reasonable efforts to eliminate, cure and overcome any such causes and to resume performance of its obligations with all possible speed.  Notice of the commencement and termination of such Force Majeure Event will be provided by the Affected Party to the other Party.  Any obligations of the Affected Party will be extended for a period of time equal to the number of days of the delay, provided 

 

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however, that in the event that such Party is unable to overcome such Force Majeure Event within [****], the other Party may terminate this Agreement on written notice.

(b)“Force Majeure Event” means any unanticipated event beyond a Party’s reasonable control that could not be avoided by due care of such Affected Party, including without limitation, acts of God, fire, explosion, flood, earthquake, drought, war, hostility, revolution, riot, civil disturbance, national emergency, sabotage, embargo, including strikes, pandemic, epidemic, government imposed quarantine measures, or other labour trouble, governmental acts, orders or restrictions, shortages of materials or supply chain disruptions in each case to the extent it is unanticipated beyond a Party’s reasonable control that could not be avoided by due care of such Affected Party.

11.6Notices.  Any notice that is required to be provided under this Agreement must be made in writing, in the English language and shall be deemed given (a) on the date received as evidenced by the date indicated on the return receipt if mailed by certified mail, first class, postage prepaid, return receipt, (b) on the date received as evidenced by the date indicated on the courier’s receipt if sent by a national overnight courier or delivered personally, or (c) when sent, if by email if sent during the addressee’s normal business hours and on the next Business Day if sent after the addressee’s normal business hours; provided, further, that if any such date of receipt is not a Business Day, then notice shall be deemed given on the next Business Day.  Notices shall be sent as follows (or to such address subsequently provided in accordance with this section):

	
 
	
If to Lucira:
	
1412 62nd Street
Emeryville, CA 94608
U.S.A.
Attn: [****]

With a copy to [****]

	
 
	
If to Distributor:
	
2600 Matheson Blvd E
Mississauga, Ontario L4W 4J1 
Canada

Attn: [****]

Email: [****]

11.7Governing law.

(a)This Agreement shall be governed by and construed in accordance with the laws of [****], without reference to principles of conflicts of laws of any jurisdiction.

(b)Any dispute between the Parties arising out of or related to this Agreement shall be elevated to senior management of the Parties with the aim to resolve such dispute within [****] days of written notice by either Party requesting such resolution, provided that nothing shall prevent either Party from reverting to a competent court to obtain injunctive relief if in such Party’s opinion, such injunctive relief is necessary to prevent irreparable, material harm.

(c)Any dispute between the Parties arising out of or related to this Agreement that cannot be resolved in accordance with the provisions of Section 11.7(b), shall be submitted to the competent courts of [****], without prejudice to the right of either Party to seek injunctive relief an any place where an infringement of its rights occurs or threatens to occur.

 

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11.8Assignment.  Distributor may not assign or transfer this Agreement, in whole or in part, without Lucira’s consent, and any attempted assignment or transfer shall be void.  For clarity, Lucira may freely assign this Agreement without any consent.

11.9No third party beneficiaries.  This Agreement is solely between the Parties to this Agreement, and may not be construed to create any third-party beneficiary rights in any other individual, partnership, corporation or entity.

11.10Cooperation.  The Parties hereto hereby agree to take or cause to be taken such further actions as may be necessary or as may be reasonably requested in order to fully effectuate the purposes, terms, and conditions of this Agreement.

 

11.11Interpretation.  The term “Business Day” means any day except Saturday, Sunday, or any other day on which banks in California and Ontario are authorized or required to close by Applicable Law.

11.12Invalidity.  If any provision herein is held to be illegal, invalid or unenforceable by a court of competent jurisdiction, the Parties shall negotiate in good faith a substitute that most closely reflects the Parties’ intent while remaining enforceable.  All other provisions herein shall remain in full force and effect and be construed in accordance with the modified provision as if such illegal, invalid or unenforceable provision had not been contained herein.

11.13Waiver.  The delay or failure of a Party to enforce any provision of this Agreement shall not be construed to be a waiver of such Party’s right to thereafter enforce that provision or any other provision or right.

11.14Independent Contractors.  Distributor is an independent contractor and not an agent, employee, joint venturer or partner of Lucira.

11.15Entire Agreement.  This Agreement, including the attached exhibits, which are incorporated by reference herein, contains the entire agreement between the Parties with respect to the subject matter hereof and supersedes and prevails over any prior or contemporaneous understandings or agreements, whether written or oral, in respect of such subject matter.  Except as expressly set forth herein, no modification or addition to this Agreement will be binding unless authorized in writing by authorized representatives of the Parties.  The Parties hereby agree to expressly exclude the application of the United Nations Convention on Contracts for the International Sale of Goods, the 1974 Convention on the Limitation Period in the International Sale of Goods, and the April 11, 1980 Vienna Protocol amending that 1974 Convention.

11.16Counterparts.  This Agreement may be executed in counterparts, including by electronic signature, and delivered through portable document format or other electronic means, all of which taken together shall constitute one single Agreement between the Parties.

[Remainder of page left intentionally blank]

 

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above.

		
	
Lucira Health, Inc.

By: /s/ Kelly Lewis Brezoczky

Name:Kelly Lewis Brezoczky

Title:Executive Vice President

Date:July 14, 2021

 
	
Distributor

By: /s/ Mary Langley

Name:Mary Langley

Title:Chief Strategy Officer

Date:July 14, 2021

 

 

 

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Exhibit A 

Products

		
	
Product
	
SKU

	
Lucira CHECK✓IT COVID-19 Test Kit (Canada)
	
 

 

 

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[****]

 

 

Exhibit B

Initial Forecast

[****]

 

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[****]

 

 

Exhibit C 

Price List

[****]

 

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Exhibit D

Co-Promotional Materials

[****]

 

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