Document:

ex_187264.htm

EXHIBIT 10.1 

 

Certain information identified by [******] in certain sections of the Agreement and attached Schedules are redacted because they contain information that is commercially sensitive, not material and would be competitively harmful if publicly disclosed.

 

DEVELOPMENT, SUPPLY AND COMMERCIALIZATION AGREEMENT

 

This Development, Supply and Commercialization Agreement (this “Agreement”), effective as of May 19, 2020 (the “Effective Date”), is by and between Kantaro Biosciences LLC, a Delaware limited liability company with a principal business address of 1460 Broadway, New York, NY 10036 (“Sponsor”) and Bio-Techne Corporation, a Minnesota corporation having a principal business address at 614 McKinley Place NE, Minneapolis, MN 55413 (“Bio-Techne”). Capitalized terms used and not defined elsewhere in this Agreement have the meanings set forth in Section 1 of this Agreement.

 

WHEREAS, Sponsor has been formed by and is majority owned and controlled by Icahn School of Medicine at Mount Sinai, a New York educational corporation (“ISMMS”);

 

WHEREAS, on February 4, 2020, pursuant to Section 564(b)(1)(C) of the FDC Act, the Secretary of the Department of Health and Human Services (“HHS”) determined that there is a public health emergency (the “Public Health Emergency”) that has a significant potential to affect national security or the health and security of United States citizens living abroad, and that involves the virus that causes Severe Acute Respiratory Syndrome Coronavirus 2 (“SARS-CoV-2”);

 

WHEREAS, pursuant to Section 564 of the FDC Act, and on the basis of the determination by the Secretary of the HHS, the Secretary of HHS declared that circumstances exist justifying the authorization of emergency use of in vitro diagnostics for detection and/or diagnosis of the virus that causes COVID-19 subject to the terms of an EUA;

 

WHEREAS, ISMMS developed the MS Lab Test in response to the Public Health Emergency, and on April 15, 2020, the FDA issued the MS Lab Test EUA;

 

WHEREAS, Sponsor and ISMMS entered into the ISMMS IP License Agreement and ISMMS TM License Agreement in order to enable Sponsor to enter into this Agreement and fulfill certain of its obligation under this Agreement;

 

WHEREAS, Bio-Techne is in the business of developing, manufacturing and supporting diagnostic tests and related products;

 

WHEREAS, subject to the terms and conditions of this Agreement, Sponsor desires to (i) collaborate with Bio-Techne to co-Develop the Co-Developed Test that is based on the MS Lab Test and that has the specifications and performance characteristics set forth on Schedule 3.1(a) and satisfies the other criteria set forth in this Agreement, (ii) obtain the necessary authorizations to commercialize the Co-Developed Test as described in this Agreement, and (iii) engage Bio-Techne to provide services in collaboration with Sponsor to Manufacture and Commercialize Co-Developed Test Kits containing the necessary components, labeling and instructions and meeting the other requirements of this Agreement so as to enable providers and reference laboratories to conduct testing that will rapidly and effectively support societal efforts to respond to the Public Health Emergency and advance public health; and

 

 

 

 

 

WHEREAS, the Parties desire to set forth the rights and obligations of each Party (and the rights of ISMMS to the extent provided herein) with respect to the Development of the Co-Developed Test, the Manufacturing of the Co-Developed Test Kits and the Commercialization of the Co-Developed Test Kits:

 

NOW THEREFORE, in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and wishing to be legally bound hereby, the Sponsor and Bio-Techne hereby agree as follows:

 

	
			1. 

				
			DEFINITIONS

			

 

The following terms have the meanings specified or referred to in this Section 1:

 

“Action” means any claim, action, suit, corrective action plan, cause of action, lawsuit, arbitration, audit, survey, investigation, intermediate or other sanction, fine or penalty, written notice of violation or noncompliance, administrative proceeding, litigation, citation, summons, subpoena, inquiry, or investigation of any nature, civil, criminal, administrative, regulatory, or otherwise, whether at law or in equity, before or by any Governmental Authority.

 

“Adjusted Gross Receipts” means for any calendar month (i) the amounts actually received in cash by Bio-Techne in consideration of the sale, licensing, use, lease, transfer or other disposition of Co-Developed Test Kits during such calendar month in accordance with this Agreement, less (ii) the amount of any credits or refunds for returns of or allowances for Co-Developed Test Kits granted by Bio-Techne during such calendar month in accordance with this Agreement and that were applied against amounts described in clause (i) of this definition, less (iii) any losses incurred by Bio-Techne in the conversion of a currency other than U.S. dollars in which any amount described in clause (i) of this definition is paid, plus (iv) any gains realized by Bio-Techne in the conversion of a currency other than U.S. dollars in which any amount described in clause (i) of this definition is paid.

 

“Affiliate” means any Person that controls, is controlled by, or is under common control with, a Party, directly or indirectly. For purposes of this definition, “control” and its various forms means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities, by contract or otherwise. Without limiting the generality of the foregoing, a Party will be deemed to control another Person if such Party owns or directly or indirectly controls more than fifty percent (50%) of the voting stock or other securities of the Person.

 

“Agreement” has the meaning set forth in the introductory paragraph.

 

“Approved Alternative Component” has the meaning set forth in Section 9.6.

 

“Bio-Techne” has the meaning set forth in the introductory paragraph.

 

“Bio-Techne Background IP” means all Intellectual Property of Bio-Techne related to the Development, Manufacture or Commercialization of serologic or similar tests that Bio-Techne possesses (other than as a result of the receipt by Bio-Techne prior to the date hereof of information communicated by ISMMS or Sponsor related to the MS Background IP) or that, after the date hereof, Bio-Techne develops without any contribution from ISMMS or Sponsor. Bio-Techne Background IP shall not include MS Background IP or Jointly Developed Intellectual Property.

 

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“Bio-Techne Indemnitees” has the meaning set forth in Section 17.1(b).

 

“Bio-Techne Licensed Marks” has the meaning set forth in Section 6.3(k).

 

“Bio-Techne NDA” means that certain Mutual Non-Disclosure Agreement entered into by and between Sponsor and Bio-Techne, effective as of the Effective Date, as the same may be amended from time to time.

 

“Calendar Year” means January 1 through December 31 of a given year.

 

“CLIA HC Lab” means a laboratory that is certified under Clinical Laboratory Improvement Amendments of 1988 (CLIA), 42 U.S.C. § 263a to perform high complexity tests.

 

“Co-Developed Test” means a serologic test or tests to detect and/or measure the presence of antibodies to the COVID-19 virus each of which is based on the MS Lab Test, and which in the case of any particular test has the applicable specifications and performance characteristics set forth on Schedule 3.1(a) and required by any applicable End User-Specific Requirements and that has been accepted by Sponsor pursuant to Section 3.1(a).

 

“Co-Developed Test Kits” means one or more assemblies of the Components and material that an End User needs to administer the Co-Developed Test, as Developed by Bio-Techne in accordance with this Agreement and any applicable End User-Specific Requirements and approved by the Steering Committee in accordance with Section 3.1(a), Section 3.1(c) and Section 8.1(a).

 

“Commercialization” means any and all activities related to the promotion, distribution, marketing, offering for sale and selling of or otherwise granting rights to the Co-Developed Test Kits, including advertising, educating, planning, supporting and adhering to pricing and reimbursement approvals and Regulatory Authorizations, investigating and responding to End User adverse events involving the Co-Developed Test Kits, pricing, price reporting, marketing, promoting, tracking, storing, handling, shipping, distributing, importing, exporting, using, offering for sale, or selling the Co-Developed Test Kits anywhere in the world, billing and collections and in each case as responsibility for each such activity is allocated between Sponsor and Bio-Techne in accordance with this Agreement. Commercialization excludes activities related to the Development and/or Manufacturing of the Co-Developed Test Kits. Without limiting the generality of the foregoing, “Commercialization” includes all of the activities described in Section 8.1(a). When used as a verb, “Commercialize” means to engage in Commercialization.

 

“Components” means the Original Components and any additions, replacements or changes in and to the Original Components that have been adopted pursuant to and as contemplated by Section 9.6, which is intended to be included as part of or used in the Manufacture of the finished, packaged, and labeled Co-Developed Test Kits.

 

“Confidential Information” means information that a Party owns or controls and maintains as confidential that such Party discloses to the other Party during the term of the Bio-Techne NDA, including without limitation, any such information regarding products, services, research, prototypes, samples, software, inventions, processes, formulas, technology, designs, drawings, hardware configurations, business, and marketing. For clarity, “Confidential Information” includes the foregoing information of a third party in possession of the disclosing Party, that disclosing Party has a legal right to disclose to the other Party under terms of confidentiality as set forth herein.

 

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“Contract” means any agreement, contract, lease, deed, mortgage, license, instrument, promissory note, evidence of indebtedness, security agreement, commitment, undertaking, indenture or joint venture, whether written or oral.

 

“COVID-19” means Coronavirus Disease 2019.

 

“Designated Executives” has the meaning set forth in Section 2.2(a).

 

“Development” means any and all activities related to researching or developing the Co-Developed Test and the Co-Developed Test Kits or process or service, including preclinical and clinical research, testing and development activities relating to the discovery and/or development of product or process candidates and submission of information and applications to a Regulatory Authority, including toxicology, pharmacology, and other discovery, optimization, and preclinical efforts, test method development and stability testing, manufacturing process development, formulation development, upscaling, Validation, delivery system development, quality assurance and quality control development, statistical analysis, clinical studies (including pre and post Regulatory Approval studies), and activities relating to obtaining Regulatory Approvals, but excluding Commercialization activities, in each case as responsibility for each such activity is allocated between Sponsor and Bio-Techne in accordance with this Agreement. When used as a verb, “Develop” means to engage in Development.

 

“Deviation” means departure from established procedure or specification.

 

“Effective Date” has the meaning set forth in the introductory paragraph.

 

“ELISA” means serological enzyme-linked immunosorbent assays.

 

“EMA” means the European Medicines Agency or any successor thereto.

 

“Embargoed Purchaser” has the meaning set forth in Section 8.3.

 

“Encumbrance” means any encumbrance, charge, claim, pledge, equitable interest, lien (statutory or other), option, security interest, mortgage, hypothecation, easement, encroachment, right of way, right of first refusal, restriction, levy or charge of any kind, including any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

 

“End of EUA Period” means the earlier of: (a) the effective date on which the declaration that circumstances exist justifying the authorization of the emergency use of in vitro diagnostic tests for detection and/or diagnosis of COVID-19 is terminated under Section 564(b)(2) of the FDC Act or (b) the effective date on which the EUA for any Co-Developed Test is revoked under Section 564(g) of the FDC Act.

 

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“End User” means with respect to the Co-Developed Test Kit, a healthcare provider, clinical laboratory, or other authorized Person that orders the Co-Developed Test Kit to detect if there has been an immune response to COVID-19 in the diagnosis of individuals suspected of prior SARS-CoV-2 infection; provided that the applicable healthcare provider, clinical laboratory or other authorized Person has satisfied any qualification requirements established by the FDA or other applicable Governmental Authority to purchase and utilize the applicable Co-Developed Test Kit.

 

“End User-Specific Requirements” means any requirements established pursuant to the terms of an agreement between Sponsor and any Governmental Authority or other End-User relating to the specifications, characteristics, manufacturing methodologies or other aspects of the Development, Manufacturing or Commercialization of any Co-Developed Test Kit and of which Sponsor has given Notice to Bio-Techne.

 

“Escalation Process” means the process described in Section 2.1 and Section 2.2.

 

“EUA” means an Emergency Use Authorization for emergency use of a product pursuant to Section 564 of the FDC Act and/or any equivalent authorization promulgated that pertains to a serological antibody test, in each case as the same may have been amended or supplemented as of the time of any reference thereto.

 

“EUA Compliance Protocol” has the meaning set forth in Section 9.3(a).

 

“FDA” means the United States Food and Drug Administration or any successor entities thereto.

 

“FDC Act” means the Federal Food, Drug and Cosmetic Act (21 U.S.C. § 301 et seq.), as amended as of the time of any reference thereto.

 

“Good Clinical Practices” means the then-current standards, practices and procedures for good clinical practices in the conduct of clinical trials, including adequate human subject protections, as promulgated or endorsed by the FDA and other applicable Governmental Authorities, such as set forth in, “International Conference on Harmonization - Guidance for Industry E6 Good Clinical Practice: Consolidated Guidance,” 21 C.F.R. Parts 50, 54, 56, and 812 and relevant FDA guidance, as applicable, or as otherwise required by applicable Law.

 

“Good Laboratory Practices” means the then-current standards, practices and procedures for good laboratory practices by facilities that perform non-clinical (including pre-clinical) laboratory studies, as promulgated or endorsed by the FDA and other applicable Governmental Authorities, including as set forth in 21 C.F.R. Part 58 and relevant FDA guidance, as applicable, or as otherwise required by applicable Law.

 

“Good Manufacturing Practices” means the then-current standards, practices and procedures for the manufacture of drugs or medical devices, as applicable to the Co-Developed Test Kits (including the practices of and methods to be used in, and the facilities or controls to be used for, the manufacture, processing, packaging, sterilizing, labeling, testing or holding of the Co-Developed Test Kits), as promulgated or endorsed by the FDA and other applicable Governmental Authorities, including, as applicable, as set forth in 21 C.F.R. Parts 210, 211, and 820 and relevant FDA guidance, as applicable, or as otherwise required by applicable Law.

 

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“Governmental Authority” means any supranational, national, federal, state, provincial, local or foreign Person of any nature exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any governmental authority, agency, department, board, commission, court, tribunal, judicial body or instrumentality of any union of nations, federation, nation, state, municipality, county, locality or other political subdivision thereof, whether of the United States or any other country.

 

“Health Care Laws” means all applicable Laws relating in any way to patient care and human health and safety, including such Laws pertaining to: (a) the Development, Manufacture and Commercialization of drugs, serologic tests and medical devices, including, without limitation, the FDC Act, the Public Health Service Act, 42 U.S.C. § 201 et seq., the regulations, rules, policies, orders, and guidance of the FDA administered, issued, or promulgated thereunder (including with respect to Good Clinical Practices, Good Laboratory Practices and Good Manufacturing Practices, in each case to the extent applicable), and equivalent applicable Laws of other Governmental Authorities; (b) the reimbursement and payment for health care products and services, including any United States federal health care program (as such term is defined in 42 U.S.C. § 1320a-7b(f)), and programs and arrangements pertaining to providers of health care products or services that are paid for by any Governmental Authority or other Person, including the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b)), the civil False Claims Act (31 U.S.C. § 3729 et seq.), the administrative False Claims Law (42 U.S.C. § 1320a-7b(a)), 42 U.S.C. § 1320a-7 and 42 U.S.C. § 1320a-7a, and the regulations promulgated pursuant to such statutes, Medicare (Title XVIII of the Social Security Act) and the regulations promulgated thereunder, Medicaid (Title XIX of the Social Security Act) and the regulations promulgated thereunder, and equivalent applicable Laws of other Governmental Authorities; (c) the privacy and security of patient-identifying information, including, without limitation, the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. § 1320d et seq.) and the regulations promulgated thereunder and equivalent applicable Laws of other Governmental Authorities; (d) to the extent required, registration and reporting of clinical trials in accordance with 42 U.S.C. § 282(j) in each of the foregoing (a) through (d), as may be amended from time to time and (e) state health care laws including those corresponding to the federal laws described in (a) through (d).

 

“HHS” has the meaning set forth in the recitals.

 

“Initial Term” has the meaning set forth in Section 18.1(a).

 

“Insurance Policies” has the meaning set forth in Section 14.6.

 

“Intellectual Property” means all intellectual property, intangible property and proprietary rights, title, interests and protections, however arising, pursuant to the Laws of any jurisdiction throughout the world, including all United States, foreign and international: (a) inventions (whether or not patentable), patents, patent applications and statutory invention registrations, utility models, reissues, divisionals, continuations, continuations-in-part, extensions and reexaminations thereof; (b) trademarks, service marks, trade dress, logos, trade names and corporate names, uniform resource locator addresses, symbols, slogans, and other indicia of source or origin, including the goodwill of the business symbolized thereby or associated therewith, common law rights, registrations and applications thereof; (c) internet domain names, website content, social media handles, tags, hashtags, social media accounts, or any other online indicia of source; (d) original works of authorship in any medium of expression (whether or not published), copyrights and copyrightable works, registrations and applications for registration of such copyrights, and all issuances, extensions and renewals of such registrations and applications; (e) trade secrets, formulas, designs, devices, technical data, technology, know-how, research and development, advertising and promotional materials, inventions and invention disclosures, methods or processes, and other confidential or proprietary technical, business and other information; (f) computer software (including source and object code) and computer programs and databases in any form, including firmware, development tools, algorithms, data, data files, records, database management code, utilities, graphic user interfaces, internet web sites, all versions, updates, corrections, enhancements and modifications of any of the foregoing, and all related documentation; (g) all rights and remedies against past, present and future infringement, misappropriation or any other violations relating to any of the foregoing; and (h) all tangible embodiments of any of the foregoing.

 

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“ISMMS” means Icahn School of Medicine at Mount Sinai, a New York educational corporation.

 

“ISMMS IP License Agreement” means that certain License and Collaboration Agreement entered into by and between ISMMS and Sponsor, dated as of May 4, 2020, pursuant to which ISMMS grants to Sponsor a non-exclusive license to use certain Intellectual Property related to the MS Lab Test, including the MS Background IP, for the purposes contemplated by this Agreement.

 

“ISMMS License Agreements” means the ISMMS IP License Agreement and the ISMMS TM License Agreement.

 

“ISMMS TM License Agreement” means that certain Trademark License Agreement entered into by and between ISMMS and Sponsor, dated as of May 4, 2020, pursuant to which ISMMS grants to Sponsor a non-exclusive license to use the Sponsor Licensed Marks for the purposes contemplated by this Agreement and as permitted by Section 6.3.

 

“ISO 13485:2016 Quality System Standards” means (i) the standards for a quality management system for medical devices established by the International Organization for Standards designated as ISO 13485:2016 by such organization, as the same may have been amended as of the time of any reference thereto and (ii) any corresponding standards imposed by any applicable End User-Specific Requirements.

 

“IVD” means in vitro diagnostic product as that term is defined in 21 C.F.R. § 809.3(a) and used by the FDA in its regulations, guidance, and procedures.

 

“Jointly Developed Intellectual Property” has the meaning set forth in Section 3.3(c).

 

“Jointly Owned Patents” means (a) the United States and foreign patents and/or patent applications relating to the Co-Developed Tests; (b) any and all patents issuing from the foregoing; (c) any and all claims of continuation-in-part applications that claim priority to the United States patent applications, in the case of each of (a), (b) and (c) to the extent relating to the Jointly Developed Intellectual Property, but only where such claims are directed to inventions disclosed in the manner provided in the first paragraph of 35 U.S.C. § 112 in such United States patent applications, and such claims in any patents issuing from such continuation-in-part applications; (d) any and all foreign patent applications, foreign patents, or related foreign patent documents that claim priority to the patents and/or patent applications relating to the Jointly Developed Intellectual Property; and (e) any and all divisionals, continuations, reissues, re-examinations, renewals, substitutions, and extensions of the foregoing.

 

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“Laws” means all active governmental constitutions, laws, statutes, ordinances, treaties, rules, common laws, rulings, regulations, orders, charges, directives, determinations, executive orders, writs, judgments, injunctions, decrees, restrictions or similar legally effective pronouncements of any Governmental Authority, including, without limiting the generality of the foregoing, Health Care Laws.

 

“Licensed Use” means for Bio-Techne to brand the Co-Developed Test Kits with the Sponsor Licensed Marks in accordance with the requirements of Section 6.2 and the other terms and conditions of this Agreement and for the Parties to market, promote, distribute and/or sell the Co-Developed Test Kits under this Agreement.

 

“Losses” means out-of-pocket losses, damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, Taxes, costs or expenses of whatever kind, including reasonable fees of accountants, attorneys and other similar professionals, the cost of enforcing any right to indemnification hereunder, and the cost of pursuing any insurance providers.

 

“Manufacturing” means all activities directed to sourcing of necessary Raw Materials, producing, processing, packaging, labeling, quality assurance testing, release of the Co-Developed Test Kits, whether for Development or Commercialization, in each case as responsibility for each such activity is allocated between Sponsor and Bio-Techne in accordance with this Agreement. When used as a verb, “Manufacture” means to engage in Manufacturing.

 

“Manufacturing Milestones” has the meaning set forth in Section 5.2(a).

 

“Marks” means and all trademarks whether registered or unregistered, trademark registrations, trademark applications, service marks whether registered or unregistered, service mark registrations and service mark applications, brand names, corporate names, trade names, logos, designs, slogans, trade dress, domain names, social media handles and user names, and other proprietary indicia of goods and services, and all registrations and applications for registration of the foregoing, all issuances, extensions and renewals of such registrations and applications, and all goodwill associated with any of the foregoing, of Mount Sinai Health System, Inc.  or any of the other Mount Sinai Entities and any derivative, translation, transliteration, or adaptation thereof, including, without limitation, the Sponsor Licensed Marks.

 

“Materials” means the tangible physical material, if any, delivered to Bio-Techne under this Agreement, and any progeny, derivatives, or improvements thereof developed by Bio-Techne or its Affiliates.

 

“Material Transfer Agreement” means that certain Material Transfer Agreement effective as of April 15, 2020, by and between ISMMS and Bio-Techne, as the same may be amended from time to time.

 

“MS Background IP” means all Intellectual Property of the Mount Sinai Entities embodying the MS Lab Test (and any improvements thereto made by ISMMS and/or any Affiliates of ISMMS to the extent that Bio-Techne has not contributed to such improvements) utilizing a 96-well plate ELISA technology, including without limitation, the Intellectual Property described in the “Authorized Product Details” set forth in the MS Lab Test EUA and the document entitled “Accelerated Emergency Use Authorization (EUA) Summary COVID-19 ELISA IgG Antibody Test (Mount Sinai Laboratory)” submitted by the MS Lab in connection with the obtaining of the MS Lab Test EUA and any future versions of the MS Lab Test that are developed by ISMMS and/or Affiliates of ISMMS to the extent that Bio-Techne has not contributed to such future versions, utilizing a 96-well plate ELISA technology. MS Background IP shall not include Bio-Techne Background IP or Jointly Developed Intellectual Property.

 

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“MS Lab” means the Mount Sinai Laboratory, Center for Clinical Laboratories, a division of the Department of Pathology, Molecular, and Cell-Based Medicine, New York, New York that is certified as a CLIA HC Lab.

 

“MS Lab Test” means the qualitative test for the detection of IgG antibodies against SARS-CoV-2 in serum and plasma specimens collected from individuals suspected of prior infection with the virus that causes COVID-19 by their healthcare provider as described in the MS Lab Test EUA.

 

“MS Lab Test EUA” means the EUA issued by the FDA to the MS Lab on April 15, 2020, with respect to the use of the MS Lab Test in the MS Lab, subject to the terms and conditions of such EUA.

 

“Mount Sinai Entities” means Mount Sinai Health System, Inc. and the Affiliates of Mount Sinai Health System, Inc., including, without limitation, The Mount Sinai Hospital, Beth Israel Medical Center, St. Luke’s-Roosevelt Hospital Center, The New York Eye and Ear Infirmary, South Nassau Communities Hospital and ISMMS.

 

“Notice” has the meaning set forth in Section 19.5.

 

“Notice Address” has the meaning set forth in Section 19.5.

 

“Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority but not including Permits.

 

“Original Components” means the Raw Material, substance, piece, part, software, firmware, labeling, or assembly or any other component of the Co-Developed Lab Test specified in the application for EUA, 510(k) clearance or de novo classification therefor, or the application submitted to any other applicable Regulatory Authority.

 

“Outside Date” means September 30, 2020.

 

“Part 820” means the regulations of the FDA at 21 C.F.R. Part 820, as the same may have been amended at the time of any reference thereto.

 

“Part 820 Compliance Protocol” has the meaning set forth in Section 9.3(b).

 

“Party” means (a) the Sponsor or any successor or permitted assign thereof or (b) Bio-Techne or any successor or permitted assign thereof.

 

“Permits” means all permits, licenses, franchises, clearances, approvals, authorizations, registrations, certificates, variances and similar rights obtained, or required to be obtained, from Governmental Authorities.

 

“Permitted Use” has the meaning set forth in Section 3.2(a).

 

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“Person” means a corporation, an association, a joint venture, a partnership, a trust, a business, an institution, an individual, a government or political subdivision thereof, including an agency, or any other organization that can exercise independent legal standing.

 

“Phase I” has the meaning set forth in Section 3.1(a).

 

“Phase II” has the meaning set forth in Section 5.1(a).

 

“Portal” has the meaning set forth in Section 8.6.

 

“Product” means a finished component, for example, a reagent or device.

 

“Prosecution” means the filing, preparation, prosecution (including any interferences, reissue proceedings, reexaminations, and oppositions), extension, term adjustment, and maintenance of any patents.  When used as a verb, “Prosecute” means to engage in Prosecution.

 

“Public Health Emergency” has the meaning set forth in the recitals.

 

“Quality Agreement” means the separate quality agreement, dated as of the date hereof, being executed by Sponsor and Bio-Techne in connection with this Agreement.

 

“Raw Materials” means the excipients, chemicals, processing aids necessary for processing or manufacture of Components or Products per specification.

 

“real time” for purposes of this Agreement does not mean that the applicable data or information is provided on an instantaneous basis but rather means that the applicable data or information is provided on a basis that is updated no less frequently than daily or as mutually agreed.

 

“Regulatory Approval” means, with respect to a country or other jurisdiction, all approvals, licenses, clearances, de novo classification request decisions, marks, registrations, authorizations certificates, exemptions, consents, franchises, concessions, notices or other like item of or issued by any Governmental Authority, from the relevant Governmental Authority necessary or useful to commercially distribute, sell or market the Co-Developed Test Kits in such country or other applicable jurisdiction (not including any applicable pricing and governmental reimbursement approvals unless legally required to market the Co-Developed Test Kits in a country or other applicable jurisdiction).

 

“Regulatory Authorities” means any applicable Governmental Authority involved in granting Regulatory Approval for, and responsible for the regulation of, the Co-Developed Test Kits in any Jurisdiction, including the FDA, EMA, or such other state or foreign country equivalent Governmental Authority as applicable. 

 

“Renewal Term” has the meaning set forth in Section 18.1(b).

 

“Research Use Only” or “RUO” has the meaning ascribed to the term “research use only” as defined in 21 C.F.R. § 809.10(c)(2)(i) and used by the FDA in its applicable regulations and guidance as of the time of any reference thereto.

 

“RUO Addendum” has the meaning set forth in Section 11.1.

 

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“SARS-CoV-2” has the meaning set forth in the recitals.

 

“Specification” means any requirement with which a product, process, service, or other activity must conform.

 

“Sponsor” means Kantaro Biosciences LLC, a Delaware limited liability company.

 

“Sponsor Indemnitees” has the meaning set forth in Section 17(a).

 

“Sponsor Licensed Marks” has the meaning set forth in Section 6.3(a).

 

“Sponsor Patent Option” has the meaning set forth in Section 3.3(c)(ii)(1).

 

“Steering Committee” has the meaning set forth in Section 2.1(a).

 

“Term” has the meaning set forth in Section 18.1(b).

 

“Transaction Documents” means this Agreement, the Material Transfer Agreement, the Bio-Techne NDA, and such other agreements, instruments and documents as the Parties may enter into from time to time in connection with the transactions contemplated by this Agreement.

 

“Working Group” has the meaning set forth in Section 2.1(e).

 

“Validation” means a documented program that provides a high degree of assurance that a specific process, method, or system will consistently produce results meeting predetermined acceptance criteria.

 

	
			2. 

				
			GOVERNANCE

			

 

2.1     Steering Committee

 

(a)     Establishment of Steering Committee. The Parties share a common objective of collaborating to enable the development of the Co-Developed Test Kit, obtaining EUA authorization to distribute and sell Co-Developed Test Kits (and, subject to the terms and conditions herein, obtaining a 510(k) clearance, de novo classification, or approval, as applicable) and, subject to the terms and conditions set forth herein, distributing and selling Co-Developed Test Kits in accordance with applicable Laws in a manner that most rapidly and effectively supports societal efforts to respond to the Public Health Emergency and advances public health. The Parties recognize that to do so will require the Parties to build into their relationship sufficient flexibility to respond to rapidly changing circumstances without compromising the Parties’ commitment to compliance with Law and appropriate risk management. Therefore, the Parties hereby establish a committee (the “Steering Committee”) to support the Parties efforts to achieve their common objective.

 

(b)     Authority of Steering Committee. The Steering Committee shall have the specific authorities ascribed to it in this Agreement. The Steering Committee shall also serve as a forum in which the Parties shall discuss any evolution in the terms of this Agreement that either Party believes is necessary, any matters affecting the Parties’ performance hereunder that were not foreseen as of the Effective Date, and any differences that may arise between the Parties. The Steering Committee shall not have any authority that is not expressly provided for in this Agreement.

 

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(c)     Composition and Requirements for Steering Committee Action. The Steering Committee shall be composed of an equal number of appointees of each Party. The initial appointees of each Party are listed on Schedule 2.1(c). Either Party may change any of its appointees to the Steering Committee, provided that such Party gives the other Party two (2) days’ prior Notice and the Designated Executive of the Party receiving such Notice approves the change in the requesting Party’s appointee(s) (such approval not to be unreasonably withheld). The Steering Committee may meet in person or by telephonic or electronic means. In order for the Steering Committee to act, the unanimous vote of all members of the Steering Committee appointed by each Party shall be required.

 

(d)     Establishment of Subcommittees of the Steering Committee. The Steering Committee may establish subcommittees to assist the Steering Committee in the fulfillment of its role under this Agreement, provided that no subcommittee of the Steering Committee shall have any authority that the Steering Committee does not itself have. The Steering Committee shall establish a written charter for each subcommittee established by the Steering Committee. Members of any subcommittee established by the Steering Committee need not be members of the Steering Committee. Unless the Steering Committee determines otherwise with respect to any given subcommittee, (i) each subcommittee shall be composed of an equal number of appointees of each Party and either Party may change any of its appointee to a subcommittee by notice given to the other Party, and (ii) in order for a subcommittee to act, the vote of a majority of all members of the subcommittee shall be required. Each subcommittee may meet in person or by telephonic or electronic means. If the vote of a majority of all members of a subcommittee is not able to be obtained as to any matter, the matter will be referred to the Steering Committee for resolution.

 

(e)     Establishment of Working Groups. The Steering Committee or any subcommittee may establish one or more working groups composed of individuals with specific subject matter expertise (each a “Working Group”) in order to assist the Steering Committee or any subcommittee in considering or developing approaches to or recommendations with respect to specific categories of work under this Agreement, provided that no Working Group shall have any authority that the Steering Committee or the subcommittee does not itself have. The Steering Committee or applicable subcommittee shall establish a written charter for each Working Group established by the Steering Committee or subcommittee. A Working Group may be established and have responsibilities relating to a discrete project, or may be established on a temporary basis. Members of any Working Group need not be members of the Steering Committee or any subcommittee. Unless the Steering Committee or subcommittee determines otherwise with respect to any given Working Group, (i) each Working Group shall be composed of subject matter expert appointees of each Party and either Party may change any of its appointee to a Working Group by notice given to the other Party, and (ii) the Working Group members are expected to make a written recommendation to the Steering Committee and any dissent within the group can be so noted. Each Working Group may meet in person or by telephonic or electronic means. The initial Working Groups are listed on Schedule 2.1(e).

 

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2.2     Designated Executives

 

(a)     Reference to Designated Executives. The Parties acknowledge that there may be matters that come before the Steering Committee that the Steering Committee is not able to resolve. The Steering Committee shall have the authority to refer any such matter to two senior executives (the “Designated Executives”), one appointed by each Party. Each Party agrees to appoint as its Designated Executive only a senior executive with the standing and authority within the organizational structure of such Party to be able to deal with and resolve matters referred to the Designated Executives by the Steering Committee. The initial Designated Executives are listed on Schedule 2.1(c). The Designated Executives shall not have the authority to determine matters that are not within the authority of the Steering Committee. However, the Designated Executives shall have the authority to recommend to the Parties amendments to this Agreement that the Designated Executives believe should be made.

 

(b)     Requirements for Designated Executives’ Action. The Designated Executives may meet in person or by telephonic or electronic means. In order for the Designated Executives to act the unanimous vote of both Designated Executives shall be required, provided that if a unanimous vote of both Designated Executives is not able to be obtained in respect of any matter, the determination of the Designated Executive appointed by Sponsor as the manufacturer of record of the Co-Developed Test Kits shall be deemed to be the determination of the Designated Executives.

 

	
			3. 

				
			DEVELOPMENT OF CO-DEVELOPED TEST

			

 

3.1     Development Process for Co-Developed Test.

 

(a)     Bio-Techne Development Responsibilities. During the period (“Phase I”) between the Effective Date and the date on which EUA is obtained for the Co-Developed Test Kit, Bio-Techne shall devote appropriate resources to (i) the Development of a Co-Developed Test that (A) is based on the MS Lab Test, (B) meets the specifications and has the performance characteristics set forth on Schedule 3.1(a), (C) is able to be Manufactured and Commercialized in quantities that meet the Manufacturing Milestones, (D) complies with Law and any End User-Specific Requirements and has the necessary attributes to be granted EUA and (E) is accepted by Sponsor as meeting the requirements of this Agreement and (ii) the Development of a prototype of the Co-Developed Test Kit that can be used for the purposes of obtaining EUA for the Co-Developed Test Kit and that has been accepted by Sponsor as meeting the requirements of this Agreement. Subject to contractual commitments existing prior to April 17, 2020 and subject to any contrary requirements of Law, during Phase I Bio-Techne shall not prioritize any other project over the Development of a Co-Developed Test.

 

(b)     Sponsor Development Responsibilities. To the extent not provided by ISMMS prior to the Effective Date, during Phase I, Sponsor shall (i) promptly provide all information that Bio-Techne requests in connection with the MS Background IP licensed to Bio-Techne hereunder, (ii) promptly cooperate with Bio-Techne in Bio-Techne’s efforts to Develop the Co-Developed Test and (iii) comply with the Material Transfer Agreement and use reasonable commercial efforts to facilitate Bio-Techne’s access to sources of supply for the development of the Co-Developed Test.

 

(c)     Sponsor Acceptance of Co-Developed Test and Test Kit. The determination that a test satisfies the criteria of this Agreement to constitute a Co-Developed Test and that a prototype of a Co-Developed Test Kit is ready to be submitted for EUA shall be made by Sponsor. Sponsor may undertake such Validation processes as Sponsor may determine are necessary or appropriate in connection with such determination, and Bio-Techne shall cooperate in any such processes. Sponsor shall use reasonable commercial efforts to complete such processes as promptly as is feasible.

 

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3.2     License Grant with Respect to MS Background IP.

 

(a)     License Grant to MS Background IP. Subject to the terms and conditions of this Agreement, Sponsor hereby grants Bio-Techne a non-exclusive, non-sublicensable, and non-transferable license to use the MS Background IP (i) during the Term, solely for the purpose of Developing the Co-Developed Test and Developing, Manufacturing and Commercializing the Co-Developed Test Kits in accordance with this Agreement, (ii) during the Term, solely to the extent the Co-Developed Test Kits are contemplated to be sold pursuant to the RUO Addendum, and (iii) after the Term in connection with Bio-Techne’s exploitation of Jointly Developed Intellectual Property provided that the Parties and ISMMS shall first have agreed, each in its own discretion, upon the economic terms of such license and exploitation (including in respect of any appropriate revenue share or other compensation payable to Sponsor in respect of such sublicense) (the uses described in (i), (ii) and (iiii), the “Permitted Use”).

 

(b)     Use Restrictions. Bio-Techne shall only use the MS Background IP for the Permitted Use and shall not disclose, release, distribute, or deliver the MS Background IP, or any portion thereof, to any other Person without Sponsor’s prior written consent. Any purpose or use not specifically authorized herein is prohibited unless otherwise agreed to in writing by Sponsor.

 

(c)     Delivery. To the extent not delivered by ISMMS prior to the Effective Date, Sponsor shall deliver the MS Background IP electronically, on tangible media, or by other means to Bio-Techne promptly following the Effective Date.

 

(d)     Confidentiality. The MS Background IP shall constitute Confidential Information of Sponsor and shall be subject to the requirements of the Bio-Techne NDA.

 

3.3     License Grant; Intellectual Property Ownership; Jointly Developed Intellectual Property.

 

(a)     Rights to MS Background IP. Bio-Techne acknowledges that all MS Background IP is and shall remain the sole property of ISMMS. Except for the limited rights and licenses expressly granted under this Agreement, nothing in this Agreement grants, by implication, waiver, estoppel, or otherwise, to Bio-Techne or any third party any Intellectual Property rights or other right, title or interest in or to the MS Background IP.

 

(b)     Rights to Bio-Techne Background IP. Sponsor acknowledges that all Bio-Techne Background IP is and shall remain the sole property of Bio-Techne. Except for the limited rights and licenses expressly granted under this Agreement, nothing in this Agreement grants, by implication, waiver, estoppel, or otherwise, to Sponsor or any third party any Intellectual Property rights or other right, title or interest in or to the Bio-Techne Background IP.

 

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(c)     Jointly Developed Intellectual Property Relating to the Co-Developed Test.

 

(i)     Ownership of Jointly Developed Intellectual Property. Each Party shall own an equal and undivided interest in (1) such Intellectual Property as does not constitute MS Background IP or Bio-Techne Background IP and as is discovered or created in the course of the Development of the Co-Developed Test and/or the Co-Developed Test Kits and (2) any related information, developments, improvements, and Intellectual Property as is jointly developed by the Parties in connection with the Manufacture and/or Commercialization of the Co-Developed Test Kits (the Intellectual Property, information, developments and improvements described in clause (1) and (2) of this sentence, the “Jointly Developed Intellectual Property”). Bio-Techne acknowledges that Sponsor has the right to enter into an agreement with ISMMS granting to ISMMS a perpetual, worldwide, royalty-free license to use the Jointly Developed Intellectual Property to the same extent that Sponsor itself would have the right to use the Jointly Developed Intellectual Property, provided that any such agreement expressly provides that Bio-Techne is a third party beneficiary of and is entitled to enforce the obligations of ISMMS thereunder to observe and adhere to the restrictions and limitations on the use of Jointly Developed Intellectual Property that are imposed on Sponsor by this Agreement and that Sponsor has provided to Bio-Techne a copy of such agreement.

 

(ii)     Right to Prosecute Jointly Owned Patents.

 

(1)     Sponsor shall have the first right, but shall not be obligated, to Prosecute any and all Jointly Owned Patents (the “Sponsor Patent Option”). If Sponsor exercises the Sponsor Patent Option, Sponsor will, in consultation with Bio-Techne, Prosecute the Jointly Owned Patents in the joint names of the Parties, and shall pay all expenses for Prosecuting the Jointly Owned Patents, including without limitation, any taxes, annuities or maintenance fees on such Jointly Owned Patents.

 

(2)     If at any time Sponsor has not exercised the Sponsor Patent Option with respect to a particular discovery that is part of the Jointly Developed Intellectual Property, and Bio-Techne wishes to Prosecute a Jointly Owned Patent with respect to such discovery, Bio-Techne shall consult with Sponsor regarding whether Sponsor wishes to Prosecute such Jointly Owned Patent, and if Sponsor declines to Prosecute such Jointly Owned Patent, then Bio-Techne shall have the right, in consultation with Sponsor, to Prosecute such Jointly Owned Patent in the joint names of the Parties, and Bio-Techne shall pay all expenses for Prosecuting such Jointly Owned Patent, including without limitation, any taxes, annuities or maintenance fees on such Jointly Owned Patent.

 

(3)     If at any time either Party indicates to the other Party by written notice that it no longer desires to Prosecute any Jointly Owned Patent(s), the other Party may take over the rights of such Party with respect to the applicable Jointly Owned Patent, and shall pay all expenses for Prosecuting such Jointly Owned Patent(s), including without limitation, any taxes, annuities or maintenance fees on such Jointly Owned Patent(s).

 

(iii)     Exploitation of Patent Rights. Each Party shall be entitled, on a royalty-free basis, to use the Jointly Owned Patent(s) for any purpose permitted by Law. Subject to the approval of the other Party, each Party shall have the right to grant license(s) under the Jointly Owned Patents to any third-party subject to mutual agreement on the applicable economic terms (including in respect of any appropriate revenue share or other compensation payable to each Party in respect of such license) of such license; provided, however, Bio-Techne agrees that Sponsor shall have the right to license any Jointly Owned Patents to ISMMS for research and education purposes for no consideration without the prior approval of Bio-Techne.

 

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(iv)     Cooperation of Parties. The Parties agree to cooperate fully with each other to provide any information or documentation necessary to support the Prosecution of a Jointly Owned Patent and each Party Prosecuting a Jointly Owned Patent shall provide such information regarding such Prosecution as the other Party shall reasonably request.

 

(v)     Limited License to Bio-Techne Background IP. Sponsor is hereby granted a non-exclusive, perpetual, worldwide, royalty-free paid-up license to use the Bio-Techne Background IP during and after the Term solely for the purpose of (A) using the Co-Developed Test and any modifications thereof and all Jointly Developed Intellectual Property for patient care, education and/or research purposes, (B) performing the obligations of Sponsor under this Agreement and applicable Law, and (C) subject to Section 3.4(a), Developing, Manufacturing and Commercializing serologic tests that have the same or similar functions as the Co-Developed Test Kits. Bio-Techne acknowledges that Sponsor has the right to enter into an agreement with ISMMS granting to ISMMS a perpetual, worldwide, royalty-free license to use the Bio-Techne Background IP to the same extent that Sponsor itself would have the right to use the Bio-Techne Background IP, provided that any such agreement expressly provides that Bio-Techne is a third party beneficiary of and is entitled to enforce the obligations of ISMMS thereunder to observe and adhere to the restrictions and limitations on the use of the Bio-Techne Background IP that are imposed on Sponsor by this Agreement and that Sponsor has provided to Bio-Techne a copy of such agreement.

 

3.4     Rights to Sublicense.

 

(a)     Sublicensing Rights of Sponsor. Other than the Bio-Techne Background IP, Sponsor shall have the right to freely sublicense any Intellectual Property in which Sponsor has rights hereunder, provided that it shall be a condition of the right of Sponsor to sublicense Jointly Developed Intellectual Property that the Parties shall first have agreed, each in its own discretion, upon the economic terms of such sublicense (including in respect of any appropriate revenue share or other compensation payable to Bio-Techne in respect of such sublicense); provided, however, Bio-Techne agrees that Sponsor shall have the right to license any Jointly Developed Intellectual Property to ISMMS for research and education purposes for no consideration without the prior approval of Bio-Techne. For the avoidance of doubt, Sponsor shall not have the right to sublicense Bio-Techne Background IP except as expressly provided in Section 3.3(c)(v).

 

(b)     Sublicensing Rights of Bio-Techne. Other than the MS Background IP, Bio-Techne shall have the right to freely sublicense any Intellectual Property in which Bio-Techne has rights hereunder, provided that it shall be a condition of the right of Bio-Techne to sublicense Jointly Developed Intellectual Property that the Parties shall first have agreed, each in its own discretion, upon the economic terms of such sublicense (including in respect of any appropriate revenue share or other compensation payable to Sponsor in respect of such sublicense). For the avoidance of doubt, Bio-Techne shall not have the right to sublicense MS Background IP.

 

3.5     Escrow of Bio-Techne Background IP. Within ninety (90) days after the date on which Sponsor confirms pursuant to Section 3.1(a) that it accepts the Co-Developed Test Kit as meeting the specifications and having the performance characteristics set forth on Schedule 3.1(a), the Parties shall negotiate in good faith an escrow of appropriate tangible materials describing the Bio-Techne Background IP that is necessary or useful for the Manufacture of the Co-Developed Test Kit that would be sufficient for Sponsor to utilize such Bio-Techne Background IP for the purposes contemplated by Section 18.2(d) in the event of a termination of this Agreement by Sponsor pursuant to Section 18.1(c)(i). To the extent that any such escrow requires a third party to hold tangible materials on behalf of Sponsor and Bio-Techne, Sponsor shall pay the fees of such third party.

 

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			4. 

				
			FDA REGULATORY PROCESS

			

 

4.1     FDA Regulatory Process Prior to EUA Issuance.

 

(a)     Responsibilities of Sponsor in Respect of EUA. Commencing no later than the date on which Sponsor accepts a Co-Developed Test and a prototype Co-Developed Test Kit pursuant to Section 3.1(a) and Section 3.1(c), Sponsor shall use all reasonable commercial efforts to obtain EUA for the Co-Developed Test Kit and shall pay all expenses relating to obtaining EUA for the Co-Developed Test Kits. Sponsor shall keep Bio-Techne reasonably informed of the process of applying for EUA in respect of the Co-Developed Test, and shall provide Bio-Techne with copies of any correspondence between Sponsor and the FDA with respect to the application for EUA in respect of the Co-Developed Test Kit reasonably promptly after such correspondence is received by Sponsor. Promptly upon obtaining EUA for the Co-Developed Test Kit, Sponsor shall notify Bio-Techne of such EUA and shall provide Bio-Techne with a copy of such EUA.

 

(b)     Responsibilities of Bio-Techne. Bio-Techne shall promptly provide to Sponsor such information, data and materials as Sponsor reasonably requests in order to obtain EUA in respect of the Co-Developed Test Kit.

 

(c)     No Other Responsibility to Seek Approvals of Government Authorities. Unless and until EUA is obtained in respect of a Co-Developed Test Kit, Sponsor shall have no obligation to seek 510(k) clearance, review of a de novo classification request, premarket approval (PMA), or any other type of required premarket review and authorization from the FDA of a Co-Developed Test Kit as an IVD or to seek or obtain any approval or clearance of any Governmental Authority for the Commercialization of a Co-Developed Test Kit in any country other than the United States. To the extent that Sponsor elects to undertake any such process or seek any such clearance, required premarket review and authorization, Bio-Techne shall promptly provide to Sponsor such information, data and materials as Sponsor reasonably requests in connection therewith.

 

4.2     FDA Regulatory Process After EUA Issuance.

 

(a)     Responsibilities of Sponsor After Issuance of EUA. Commencing no later than the date on which EUA is issued by the FDA in respect of a Co-Developed Test Kit and thereafter during the Term, Sponsor shall (i) seek 510(k) clearance, review of a de novo classification request, or other applicable type of required premarket review and authorization by the FDA of the Co-Developed Test Kit as an IVD and (ii) in such order and with such priorities as are determined by the Steering Committee, use reasonable commercial efforts to obtain the approval or clearance of the applicable Governmental Authorities in countries other than the United States for the Commercialization of a Co-Developed Test Kit in such countries. Sponsor shall keep Bio-Techne reasonably informed of the processes described in this Section 4.2(a). The Steering Committee shall have the authority to suspend or terminate the process of obtaining 510(k) clearance, review of a de novo classification request, or other applicable type of required premarket review and authorization by the FDA of the Co-Developed Test Kit and/or the process of obtaining the approval or clearance of the applicable Governmental Authorities in countries other than the United States for the Commercialization of a Co-Developed Test Kit in such countries, in each case to the extent the Steering Committee determines that market, regulatory or other conditions make such suspension or termination appropriate (and any difference of views in the Steering Committee with respect to such matters shall be resolved through the Escalation Process). Promptly upon obtaining clearance, de novo classification, or approval, as applicable, by the FDA of the Co-Developed Test Kit as an IVD, Sponsor shall notify Bio-Techne of such clearance, de novo classification, or approval and shall provide Bio-Techne with a copy of such clearance, de novo classification, or approval. Promptly upon obtaining the approval or clearance of an applicable Governmental Authority in a country other than the United States for the Commercialization of a Co-Developed Test Kit in such country, Sponsor shall notify Bio-Techne of such approval or clearance and shall provide Bio-Techne with a copy of such approval.

 

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(b)     Responsibilities of Bio-Techne After Issuance of EUA. Bio-Techne shall promptly provide to Sponsor such information, data and materials as Sponsor reasonably requests in order to obtain clearance, de novo classification, or approval by the FDA of the Co-Developed Test Kit as an IVD and/or to obtain the approval or clearance of an applicable Governmental Authority in a country other than the United States for the Commercialization of a Co-Developed Test Kit in such country.

 

	
			5. 

				
			MANUFACTURING OBLIGATIONS; MILESTONES

			

 

5.1     Manufacturing of Co-Developed Test Kits. 

 

(a)     Responsibilities of Bio-Techne. Subject to the terms and conditions of this Agreement, and without purporting to limit the legal responsibility of Sponsor as the manufacturer of record of the Co-Developed Test, commencing no later than the date on which EUA is obtained in respect of a Co-Developed Test Kit and thereafter throughout the Term (such being referred to as “Phase II”), as between Sponsor and Bio-Techne, Bio-Techne shall be responsible for the Manufacturing of the Co-Developed Test Kits in accordance with applicable Law and any End User-Specific Requirements; provided, however, Sponsor shall retain the oversight responsibilities provided for in Section 9 and all other applicable provisions of this Agreement. Without limiting the legal responsibility of Sponsor as the manufacturer of record of the Co-Developed Test, in the course of Manufacturing Co-Developed Test Kits, Bio-Techne shall observe, adhere to and comply with all obligations in relation to Manufacturing of the Co-Developed Test Kits that are imposed on Sponsor as the holder of the EUA in respect thereof (including without limitation the quality and compliance obligations described in Section 9) and any applicable End User-Specific Requirements. In the Manufacturing process, Bio-Techne shall not Deviate from the specifications set forth on Schedule 3.1(a) unless such Deviation is approved in writing by Sponsor in its sole discretion. Without limiting the legal responsibility of Sponsor as the manufacturer of record of the Co-Developed Test, as between Sponsor and Bio-Techne, Bio-Techne agrees that it shall be solely responsible for such obligations and that Sponsor shall have no obligations to Bio-Techne in respect thereof except as is expressly set forth in Section 5.1(b). In the event the Parties mutually determine to jointly engage a third party to provide increased Manufacturing capacity, the Parties shall do so only on mutually agreeable terms with each other, as well as with the selected third party manufacturer.

 

(b)     Responsibilities of Sponsor. Sponsor shall promptly provide to Bio-Techne such information as Bio-Techne reasonably requests in connection with Bio-Techne’s discharge of its responsibilities under Section 5.1(a) and as Sponsor can obtain without unreasonable effort or expense. Upon Sponsor’s receipt of any communication from any Governmental Authority or any End User that relates to or may affect the process of Manufacturing the Co-Developed Test Kits, Sponsor shall promptly provide a copy of such communication to Bio-Techne. Sponsor shall also retain the oversight responsibilities provided for in Section 9 and other applicable provisions of this Agreement.

 

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5.2     Manufacturing Milestones. 

 

(a)     Establishment and Achievement of Manufacturing Milestones. Subject to the terms and conditions of this Agreement and to any requirements of applicable Law, and subject to contractual commitments existing prior to April 17, 2020, to the extent necessary to satisfy demand for the Co-Developed Test Kits as of any applicable date, Bio-Techne shall prioritize the Manufacturing of the Co-Developed Test Kits over any other business arrangement of Bio-Techne in accordance with this Agreement in such volumes as to achieve the milestones (the “Manufacturing Milestones”) set forth on Schedule 5.2(a).

 

(b)     Modification of Manufacturing Milestones and Resolution of Differences with Respect Thereto. The Steering Committee shall have the authority to modify the Manufacturing Milestones. Any differences as to whether the Manufacturing Milestones should be modified shall be resolved through the Escalation Process.

 

5.3     Product Warranty. A Working Group shall be established to develop, prior to the first sale of a Co-Developed Test to an End User, the product warranty in respect of the Co-Developed Test Kits, taking into account the labelling insert in the Co-Developed Test Kits and the Certificate of Analysis in respect of the Co-Developed Test Kits. The Steering Committee shall have the authority to approve the product warranty, and once approved to modify the product warranty. Any differences as to whether the product warranty should be modified shall be resolved through the Escalation Process. As of the date of any shipment of a Co-Developed Test Kit to an End User, Bio-Techne shall be deemed to have made to Sponsor with respect to such Co-Developed Test Kit the same warranty as Bio-Techne makes to such End User.

 

6.     CO-DEVELOPED TEST KIT LABELING AND BRANDING

 

6.1     Labeling of Co-Developed Test Kits.

 

(a)     Establishment of Labeling. The labeling of the Co-Developed Test Kits shall be established in conformity with the EUA in respect thereof (and from and after any 510(k) clearance, de novo classification request, or other type of required premarket review and authorization of the Co-Developed test Kits, in conformity with the applicable requirements of the FDA in respect thereof) and such other labeling requirements as are imposed by the FDA or any other applicable Governmental Authority. The labeling of the Co-Developed Test Kits shall be established by the Steering Committee from time to time, and any differences shall be resolved through the Escalation Process.

 

(b)     Responsibilities of Sponsor in Respect of Labeling. Sponsor shall be responsible for providing Bio-Techne instructions as to the labeling of the Co-Developed Test Kits in order for the labeling to comply with applicable Law and any End User-Specific Requirements. Sponsor shall also be responsible for obtaining any necessary FDA approval with respect to the labeling of the Co-Developed Test Kits, including any changes to the labeling of the Co-Developed Test Kits.

 

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(c)     Responsibilities of Bio-Techne in Respect of Labeling. Without limiting the legal responsibility of Sponsor as the manufacturer of record of the Co-Developed Test Kits, as between Sponsor and Bio-Techne, Bio-Techne shall be responsible for promptly and accurately implementing all instructions of Sponsor relating to the labeling of the Co-Developed Test Kits pursuant to Section 6.1(b) without any Deviations or errors.   

 

6.2     Branding of the Co-Developed Test Kits. Subject to the terms of the licenses granted in Section 6.3, the Co-Developed Test Kits shall be branded in such manner as the Parties agree and is approved by the Steering Committee (with any differences being resolved through the Escalation Process), provided that such branding shall employ the marks, “Kantaro Biosciences”, “Mount Sinai” and “R&D Systems”.

 

6.3     License under the Sponsor Licensed Marks and the Bio-Techne Licensed Marks.

 

(a)     License Grant. Subject to the terms and conditions of this Agreement and the ISMMS TM License Agreement, Sponsor hereby grants to Bio-Techne during the Term a limited, revocable, non-assignable, non-transferable, non-exclusive, non-sublicensable license to use the trademarks depicted and described on Schedule 6.3(a) (the “Sponsor Licensed Marks”) throughout the world solely for the Licensed Use, solely in accordance with the design specifications set forth on Schedule 6.3(a) and solely in a manner that has been approved in advance by ISMMS. The rights granted herein do not include any right to (i) use any of the trademarks other than the Sponsor Licensed Marks, (ii) use the Sponsor Licensed Marks for any purpose other than the Licensed Use, (iii) use the Sponsor Licensed Marks as part of Bio-Techne’s legal name anywhere or in connection with any other facility or operation, or (iv) register any trade or assumed name that includes any of the Sponsor Licensed Marks. The rights granted herein do not grant Bio-Techne any authority either (y) to act as agent for, or on behalf of, Sponsor or any Mount Sinai Entity or (z) to represent or bind Sponsor or any Mount Sinai Entity in any manner whatsoever.

 

(b)     Quality Control. Bio-Techne acknowledges, and is familiar with, the high standards of quality, style, image, reputation and workmanship of Mount Sinai Entities and recognizes the substantial value and goodwill associated with the Marks; and that the Marks have acquired a secondary meaning as being synonymous with the Mount Sinai Entities’ medical services and education of the highest quality and pioneering health and medical research and related goods/services. Accordingly, Bio-Techne recognizes the vital importance of protecting the Mount Sinai Entities’ exclusive and valuable rights in and to the Marks and covenants that it will at all times during the Term (i) conduct its business in accordance with the highest medical, legal and ethical standards and in compliance with all applicable Laws; (ii) use the Sponsor Licensed Marks in accordance with the Mount Sinai Entities’ high standards and the requirements of this Agreement, and (iii) use its best efforts to protect and enhance the goodwill pertaining to the Sponsor Licensed Marks for the exclusive benefit of the Mount Sinai Entities. Notwithstanding anything to the contrary contained in this Agreement, Bio-Techne shall not use the Sponsor Licensed Marks in any manner that ISMMS, in its sole and absolute discretion, deems to be illegal, improper, obscene, undesirable or inconsistent with the professional image and reputation of the Mount Sinai Entities. Bio-Techne may not modify or change the Sponsor Licensed Marks in any manner.

 

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(c)     Marketing Activities. Bio-Techne agrees that any marketing, promotion or advertising of the Co-Developed Test Kits using the Sponsor Licensed Marks shall be pre-approved in writing by ISMMS in each instance. Bio-Techne shall submit complete and accurate samples of each applicable proposed marketing, promotional and advertising materials reflecting its intended use of the Sponsor Licensed Marks to ISMMS and Sponsor for ISMMS’s and Sponsor’s review prior to commencing any such use. In addition, ISMMS and/or Sponsor shall have the right to request at any time samples of Bio-Techne’s then current marketing, promotional and advertising materials that contain the Sponsor Licensed Marks and to reject any such materials by Notice given to Bio-Techne if in ISMMS’s and Sponsor’s reasonable discretion such materials would violate any term of this Agreement. Upon the giving of any such Notice of rejection of any such materials, Bio-Techne shall discontinue its use of such materials immediately and, if reasonably requested by Sponsor and/or ISMMS, Bio-Techne shall at its expense implement a corrective publicity program that has been approved by ISMMS and Sponsor (such approval not to be unreasonably withheld).

 

(d)     License Restrictions. Bio-Techne agrees and covenants that it will in no event use the Sponsor Licensed Marks in any way, or take any action (or fail to take any action) that (i) could impair the validity or distinctiveness of the Sponsor Licensed Marks, or otherwise that would tend to allow them to become generic or (ii) in ISMMS’s reasonable opinion, might mislead the public or be materially detrimental to, or inconsistent with the good name, goodwill, reputation and image of any Mount Sinai Entity. During the Term and thereafter (thus surviving termination or expiration of this Agreement for any reason), Bio-Techne agrees and covenants that it will not, directly or indirectly through any other Person (w) challenge the validity, enforceability, or any of the Mount Sinai Entities’ use, registration or attempted registration, or ownership of the Marks, whether or not registered, or cause any other Person (including any government or quasi-governmental agency, including but not limited to intellectual property organizations) to do so; (x) register, seek to register or cause to be registered, any trade names, logos, trademarks, service marks, trade dress, domain names, social media handles and user names, brand names, designs or other proprietary indicia of goods and services for the Marks or confusingly similar to the Marks even if used in conjunction with other words, phrases or designations; (y) otherwise compromise the Marks or dispute any rights of ISMMS or the other Mount Sinai Entities in and to the Marks; or (z) aid or encourage any other Person in any manner in doing any of the foregoing ((w), (x) or (y)), whether (under (w), (x) or (y)) anywhere in the world.

 

(e)     No Composite Mark Rights. Notwithstanding any of the foregoing, the Parties hereby agree and acknowledge that Bio-Techne’s use of the Sponsor Licensed Marks, which shall at all times be in compliance with the terms of this Agreement, shall in no event permit Bio-Techne to use, create, file or register any new or composite mark based on any Licensed Mark or which is confusingly similar to any Licensed Mark, or confer to Bio-Techne any right, title or interest in or to any of the Sponsor Licensed Marks (including any goodwill associated therewith), except for the limited license grant expressly granted herein, or any new or composite mark consisting of any Licensed Mark or which is confusingly similar to any Licensed Mark. Without limiting the foregoing provision, if Bio-Techne during the Term acquires any right, title or interest in or to any Licensed Mark (including any goodwill associated therewith) beyond the limited rights expressly granted herein, or any new or composite mark consisting of any Licensed Mark or which is confusingly similar to any Licensed Mark, Bio-Techne hereby irrevocably assigns to ISMMS, in each case without additional consideration, all right, title and interest throughout the world and in perpetuity in and to any such Licensed Mark or any new or composite mark consisting of any Licensed Mark or any confusingly similar variation thereof (including any goodwill associated therewith). Upon the request of ISMMS or Sponsor, Bio-Techne shall each promptly take such further actions, including execution and delivery of all appropriate instruments of conveyance, as may be necessary to assist ISMMS to prosecute, register, perfect, record or enforce its rights in any Licensed Mark or in any new or composite mark consisting of any Licensed Mark or any confusingly similar variation thereof. In the event ISMMS is unable, after reasonable effort, to obtain Bio-Techne’s signature on any such documents, ISMMS hereby irrevocably designates and appoints ISMMS as Bio-Techne’s agent and attorney-in-fact, to act for and on Bio-Techne’s behalf solely to execute and file any such application or other document and do all other lawfully permitted acts to further the prosecution and issuance of any Intellectual Property right related to the Sponsor Licensed Marks or to any new or composite mark consisting of any Licensed Mark with the same legal force and effect as if Bio-Techne had executed them.

 

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(f)     Reserved Rights. ISMMS and Sponsor expressly reserve all rights not expressly granted to Bio-Techne under this Agreement. Nothing in this Agreement shall be construed to prevent Sponsor or any Mount Sinai Entity from granting any other licenses for the use of the Sponsor Licensed Marks or from using the Sponsor Licensed Marks in any manner whatsoever. Any use of the Sponsor Licensed Marks in any manner that is not in complete conformity with the terms and conditions of this Agreement and that is not cured within the time permitted by this Agreement shall constitute a material breach of this Agreement. The license under this Agreement to use the Sponsor Licensed Marks in accordance with this Agreement does not confer any rights to any Marks other than the Sponsor Licensed Marks.

 

(g)     Ownership. Bio-Techne hereby acknowledges and agrees that ISMMS is and shall remain the exclusive owner of all right, title and interest in and to the Marks, and that Bio-Techne’s use of the Sponsor Licensed Marks under this Agreement and the goodwill associated therewith inures solely to the exclusive benefit of the Mount Sinai Entities. Bio-Techne hereby acknowledges and agrees that, other than the limited licenses granted hereunder, Bio-Techne has not acquired, and shall not acquire, any right, title or interest in or to the Marks anywhere in the world by virtue of this Agreement or Bio-Techne’s exercise of the rights granted hereunder. Notwithstanding the foregoing, to the extent that Bio-Techne acquires any right, title or interest in the Marks, including any Intellectual Property rights therein, Bio-Techne hereby irrevocably assigns to the applicable Mount Sinai Entity, for no additional consideration, Bio-Techne’s entire right, title or interest in the Marks and any Intellectual Property rights therein.

 

(h)     Enforcement. Bio-Techne shall immediately give Notice to ISMMS and Sponsor upon becoming aware of: (i) any applications or petitions before any intellectual property organizations, authorities or registrars seeking to invalidate or challenge the Marks; and (ii) any actual or suspected infringement of the License Marks. ISMMS shall have the sole and exclusive right (but not the obligation) in its sole discretion to prosecute and enforce the Marks and shall exclusively retain all recoveries, revenues and other remedies deriving therefrom. Bio-Techne covenants that it will cooperate in good faith with ISMMS at ISMMS’s expense in (y) the prosecution of any action, proceeding or claim brought before any intellectual property organizations, authorities or registrars, and (z) the defense or commencement of any judicial or administrative action, proceeding or claim brought to protect or enforce the Marks.

 

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(i)     Disclaimer of Representations and Warranties. BIO-TECHNE HEREBY AGREES AND ACKNOWLEDGES THAT SPONSOR AND ISMMS MAKE NO REPRESENTATION OR WARRANTY WHATSOEVER WITH RESPECT TO THE SPONSOR LICENSED MARKS, WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, THAT (I) ANY LICENSED MARK IS VALID; (II) ANY APPLICATION TO REGISTER A MARK WILL PROCEED TO REGISTRATION OR, IF SUCH REGISTRATION IS GRANTED, THAT SUCH REGISTRATION SHALL BE VALID; (III) THE EXERCISE BY BIO-TECHNE OF THE RIGHTS GRANTED WITH RESPECT TO THE SPONSOR LICENSED MARKS UNDER THIS AGREEMENT WILL NOT INFRINGE THE RIGHTS OF ANY PERSON.

 

(j)     Injunctive Relief. Bio-Techne hereby acknowledges and agrees that a material breach of this Agreement with respect to provisions relating to the Sponsor Licensed Marks or confidentiality provisions will cause Sponsor and ISMMS irreparable damages, for which an award of damages would not be adequate compensation and agrees that, in the event of such a breach, Sponsor and ISMMS will be entitled to immediately seek equitable relief, including a restraining order, injunctive relief, specific performance and any other relief that may be available from any court or arbitration proceeding to restrain or otherwise enjoin or compel the act or omission resulting in such breach, in addition to and without prejudice to any other right or remedy to which Sponsor or ISMMS may be entitled at law or in equity and, to the extent permitted by Law, Bio-Techne consents and agrees that such remedy may be granted without any requirement that Sponsor or ISMMS post a bond or other security or make a showing of irreparable harm or lack of an adequate remedy at law. The remedies described in this Section 6.3(j) shall not be deemed to be exclusive but shall be in addition to all other remedies available at law or in equity, subject to any express exclusions or limitations in this Agreement to the contrary.

 

(k)     Subject to the terms and conditions of this Agreement, Bio-Techne hereby grants to Sponsor during the Term a limited, revocable, non-assignable, non-transferable, non-exclusive, non-sublicensable license to use the trademarks depicted and described on Schedule 6.3(k) (the “Bio-Techne Licensed Marks”) throughout the world solely for the Licensed Use and in accordance with the design specifications set forth on Schedule 6.3(k), and solely in a manner that has been approved in advance by Bio-Techne.  Sponsor agrees that it is subject to the same terms, restrictions, acknowledgements and obligations set forth in Sections 6.3(a) through Section 6.3(j) regarding the Bio-Techne Licensed Marks as is required of Bio-Techne with respect to the Sponsor Licensed Marks.  Notwithstanding the foregoing, Bio-Techne agrees that all content in marketing, promotion or advertising of the Co-Developed Test Kits other than the Bio-Techne Licensed Marks shall be pre-approved in writing by ISMMS in each instance, which approval shall not be unreasonably withheld. 

 

(l)     Sponsor and Bio-Techne may by mutual agreement add to or delete trademarks from the definition of either of the Sponsor Licensed Marks or Bio-Techne Licensed Marks (provided that in the case of any such addition or deletion that affects the Marks of the Mount Sinai Entities, ISMMS shall first have consented to such addition or deletion in writing).

 

	
			7. 

				
			PRICING AND REIMBURSEMENT

			

 

7.1     Pricing and Terms of Sale of Co-Developed Test Kits. The Steering Committee shall establish the list prices for the Co-Developed Test Kits and shall establish (and approve any changes in) ranges and parameters for Bio-Techne’s authority to determine End User-specific pricing of the Co-Developed Test Kits (including any rebates, discounts or similar terms). Bio-Techne, in consultation with Sponsor, shall establish the terms of sale (e.g. shipping terms) for the Co-Developed Test Kits.

 

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7.2     Reimbursement Matters Affecting the Co-Developed Test Kits.

 

(a)     Responsibility of Sponsor. Sponsor shall use reasonable commercial efforts to make such documentary and informational submissions as are necessary in order for applicable Governmental Authorities to establish a rate at which End Users will be reimbursed under the Medicare program for the administration of the test contained in Co-Developed Test Kits.

 

(b)     Acknowledgements of Bio-Techne. Bio-Techne acknowledges that the determination of reimbursement rates under the Medicare program lies within the discretion of the applicable Governmental Authorities; that there can be no assurance that any such reimbursement rate will be established for the administration of the test contained in Co-Developed Test Kits or that if established such rate will not be changed; or if any such reimbursement rate is established for the administration of the test contained in Co-Developed Test Kits that any third party payor other than the Medicare program will agree to utilize such rate.

 

	
			8. 

				
			SALES, DISTRIBUTION AND CUSTOMER SERVICE

			

 

8.1     Responsibilities for Commercialization Activities.

 

(a)     Responsibilities of Bio-Techne. Without limiting the legal responsibility of Sponsor as the manufacturer of record of the Co-Developed Test Kits, at all times during Phase II, as between Sponsor and Bio-Techne, Bio-Techne shall be solely responsible for all aspects of the Commercialization of the Co-Developed Test Kits that are not expressly ascribed to Sponsor under this Agreement; provided, however, Sponsor shall retain the oversight responsibilities provided for in Section 9 and the other applicable provisions of this Agreement. With the support of a number of Working Groups established by the Steering Committee the details of the responsibilities of Bio-Techne shall include, without limitation: (i) promoting the Co-Developed Tests through Bio-Techne’s website and other means that are in accordance with Law and that have been approved by the Steering Committee, provided that all such promotional activities shall be strictly in compliance with the advertising and labeling requirements established by the EUA and/or other applicable Governmental Authorities with Health Care Laws and other applicable Laws, and with the standards established by the Steering Committee; (ii) taking and fulfilling orders for Co-Developed Test Kits from End Users at prices established in accordance with this Agreement; (iii) developing packaging for the Co-Developed Test Kits that is of a quality and durability that is approved by the Steering Committee (with the understanding that any text appearing on the packaging shall be governed by the provisions of Section 6.1); (iv) developing and overseeing, including tracking of the Co-Developed Test Kits and lots, safe and secure shipping methods for the Co-Developed Test Kits and effectuating the delivery of Co-Developed Test Kits in accordance with the terms of sale approved by the Steering Committee; (v)Tracking and handling End User complaints and returns and adverse events arising from the use of the Co-Developed Test Kits and providing information and support to Sponsor in connection therewith in accordance with the requirements of Section 9; (vi) collecting and accounting for the purchase price payable by End Users in accordance with the pricing and other terms established pursuant to this Agreement; (vii) acting as a fiduciary for Sponsor with respect to the share of Adjusted Gross Receipts to which Sponsor is entitled pursuant to Section 10; (viii) keeping complete and accurate books and records with respect to all Commercialization activities relating to the Co-Developed Test Kits including the books and records required by Section 9; (ix) effectuating all reporting obligations ascribed to Bio-Techne pursuant to Section 9; (x) providing all tracking reporting and accounting information in real time as described in Section 8.6; and (xi) carrying out all aspects of the Commercialization of the Co-Developed Test Kits that are not expressly ascribed to Sponsor under this Agreement in an orderly and businesslike manner.

 

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(b)     Responsibilities of Sponsor. Sponsor shall refer to Bio-Techne all inquiries received by the Sponsor from any potential End User during the Term. Sponsor will provide technical support to Bio-Techne in responding to inquiries from potential End-Users.

 

8.2     Sponsor as End User. To the extent that Sponsor and/or its Affiliates are qualified to act as End Users, during Phase II Sponsor and such Affiliates shall be entitled to purchase Co-Developed Test Kits from Bio-Techne on the same pricing (taking into account applicable discounts for other End Users of similar volumes), and other terms and conditions as apply to other End Users. With respect to each production run of Co-Developed Test Kits, during the first two months of such production run, Sponsor shall have the right by Notice to Bio-Techne to designate up to [******] of such production run for purchase by Mount Sinai Entities or other End Users designated by Sponsor, and Bio-Techne shall adhere to such designation.

 

8.3     Embargoed Purchasers. Sponsor has advised Bio-Techne that ISMMS is subject to certain restrictions that require that Co-Developed Test Kits not be sold to certain entities in which a Mount Sinai Entity has a certain level of equity interest (“Embargoed Purchasers”). Bio-Techne agrees not to sell Co-Developed Test Kits to any End User that Sponsor has by Notice to Bio-Techne designated as an Embargoed Purchaser.

 

8.4     Responding to Priority Governmental Needs. Sponsor and Bio-Techne acknowledge and agree that the state and local Governmental Authorities in the areas served by the Mount Sinai Entities and Bio-Techne respectively may request or require priority in the supply of Co-Developed Test Kits, and that it will be the policy of Sponsor and Bio-Techne to use reasonable commercial efforts to respond to such requests and/or requirements to the extent permitted by Law. The Steering Committee shall administer the response to any such requests and/or requirements, and any differences will be resolved through the Escalation Process. To the extent that federal, state and/or local Governmental Authorities impose conflicting obligations on Bio-Techne with respect to the supply or distribution of Co-Develop Test Kits, the Parties will immediately meet to determine how best to comply with all applicable requirements of Law.

 

8.5     Policy with Respect to Back Orders. To the extent that the demand for Co-Developed Test Kits exceeds the available supply of inventory, the Steering Committee shall have the authority to determine (subject to the requirements of applicable Law, and taking into account the provisions of Section 8.3), the manner in which the available supply of inventory of the Co-Developed Test Kits will be allocated (and if the Steering Committee is unable to reach consensus, such determination will be made through the Escalation Process).

 

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8.6     Portal for Real-Time Commercialization Information. The Steering Committee shall establish a Working Group for the purpose of collaborating on the design and launch by Bio-Techne of an electronic data portal that is for the specific use of Sponsor in tracking Commercialization information with respect to the Co-Developed Test Kits (the “Portal”). The Working Group charged with the design of the Portal shall take into account the existing information technology infrastructure and data security needs of Bio-Techne so as to develop a Portal that is both practicable for Bio-Techne and that provides the real-time access to relevant information reasonably required by Sponsor. Within thirty (30) days of the Effective Date, Bio-Techne shall launch such Portal and during Phase II, Bio-Techne shall load into the Portal, on a daily basis, true, correct and complete information with respect to the Commercialization of the Co-Developed Test Kits in conformity with the requirements established by the Working Group. The Steering Committee shall have the authority to modify the Portal terms. Any differences as to whether the Portal design should be modified shall be resolved through the Escalation Process.

 

8.7     Sponsor Rights with respect to Commercialization Responsibilities.

 

(a)     If at any time during Phase II, Sponsor and Bio-Techne mutually determine and agree that a third-party distributor should be engaged to take on specific commercial functions relating to the Co-Developed Test Kits in order to accelerate distribution to specific marketplaces or to reallocate functions that were initially the responsibility of Bio-Techne pursuant to the terms of this Agreement, then the Parties shall jointly assign such functions to a mutually agreed upon third-party distributor on terms mutually acceptable to both of the Parties. The revenue received from any such third-party distributor shall be considered cash actually received in consideration of the sale, licensing, use, lease, transfer or other disposition of Co-Developed Test Kits for purposes of determining Adjusted Gross Receipts and shall be subject to the terms of Section 10.2.

 

(b)     If at any time during Phase II Bio-Techne determines or is concerned that it is unable or unwilling to discharge, or Sponsor reasonably determines or is concerned that Bio-Techne is not discharging, specific product fulfillment, billing, collections, customer service or similar obligations under this Agreement at a level that is at least equal to the level of industry standards for internationally-recognized manufacturers and distributors of in vitro medical devices, the Steering Committee shall promptly convene to consider the extent to which the issues that gave rise to such determinations and/or concerns are within Bio-Techne’s control and to that extent how such issues can be collaboratively addressed and resolved. The Steering Committee shall have the authority to recommend any necessary changes to this Agreement that the Steering Committee believes could resolve the applicable issues, but no change to this Agreement shall be made except in accordance with Section 19.3. If after reasonable efforts to collaboratively address the applicable issues the Sponsor continues to believe that deficiencies exist in Bio-Techne’s performance of specific product fulfillment, billing, collections, customer service or similar obligations, and that the correction of such deficiencies is within Bio-Techne’s control, then by Notice to Bio-Techne, Sponsor may require that any or all of the responsibilities of Bio-Techne relating to product fulfillment, billing, collections, customer service or similar functions ascribed to Bio-Techne in this Section 8 be contracted to a third party organization whose core business includes the Commercialization of in vitro medical devices on terms that correspond to the terms of this Section 8 (and any other applicable provisions of this Agreement), and, until Bio-Techne is able to demonstrate to the reasonable satisfaction of Sponsor that Bio-Techne is able to discharge the applicable functions at a level that is at least equal to the level of industry standards for internationally-recognized manufacturers and distributors of in vitro medical devices, Bio-Techne shall bear the reasonable costs charged by such third party organization for the performance of the applicable responsibilities without any right of reimbursement therefor.

 

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			9. 

				
			QUALITY, COMPLIANCE OBLIGATIONS AND CERTAIN FINANCIAL MATTERS

			

 

9.1     Sponsor Audit at Bio-Techne.

 

(a)     Right to Oversee and Audit. Sponsor shall have the right as the manufacturer of record of the Co-Developed Test Kits to take such action and exercise such authority as Sponsor deems necessary or appropriate to oversee and monitor the performance by Bio-Techne of its compliance with Health Care Laws and its obligations to Sponsor under this Agreement. Without limiting the generality of the foregoing, Bio-Techne agrees that Sponsor and/or any representative of Sponsor shall at any reasonable agreeable time be entitled to audit the quality systems of Bio-Techne insofar as they are pertinent to assess Bio-Techne’s compliance with Health Care Laws and with the provisions of this Agreement. Sponsor has the right to inspect and audit all of Bio-Techne’s equipment facilities, operations, procedures, and records directly related to any Sponsor product or to the system support used to process them, and to audit and certify Bio-Techne’s laboratory where quality control testing of the product is conducted. Terms and conditions for inspections and audits will be established by the Steering Committee (or if necessary through the Escalation Process).

 

(b)     Audit Process for Audits by Sponsor or Sponsor’s Authorized Contractor. Depending on the extent of the audit, the audit team will consist of one (1) or two (2) people, typically a lead auditor from quality assurance and a subject matter expert. The audit team will develop an audit protocol to use during the audit. The audit may last up to five (5) days and will include an opening meeting, audit activities with a daily wrap-up meeting held between the audit team and representatives of Bio-Techne to review audit progress, and a closing meeting to discuss the observations. Within five (5) days of the closing meeting, Sponsor will issue a draft audit finding report that includes recommended action items as a courtesy to Bio-Techne for review and comment within five (5) days of receipt to ensure that Bio-Techne is represented fairly. Sponsor will take the comments from Bio-Techne into consideration, but is not bound by the input, and may include agreed comments in the final report.

 

(c)     Report of Audit. Within fifteen (15) days of the conclusion of the audit, Sponsor will provide a final written report of their findings along with recommended action items to Bio-Techne. Bio-Techne will provide a written action plan to Sponsor’s report to Sponsor within fifteen (15) days after receipt of the report by Bio-Techne, unless Sponsor agrees to any extension.

 

(d)     Implementation of Action Items. Sponsor and Bio-Techne will agree to a suitable time period to implement any action items. Bio-Techne will submit progress reports to Sponsor on either a monthly or quarterly basis. At the end of this period, the Sponsor audit team will schedule a follow-up audit, if necessary, or obtain documented evidence of successful completion.

 

(e)     Follow-On Audit Activity. Subsequent audits may include an annual product review to recap quality issues occurring over the past year, product changes, and supplier performance. The continued suitability of this Agreement may also be discussed.

 

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(f)     Right to Audit Records Relating to Sale of Co-Developed Test Kits. Upon prior written notice to Bio-Techne and not more than once per Calendar Year, Sponsor shall have the right to access during normal business hours of Bio-Techne and on reasonable advance written notice, the applicable books and records of Bio-Techne, as may be reasonably necessary to verify the accuracy of the written report of the Adjusted Gross Receipts required to be delivered by Bio-Techne to Sponsor pursuant to Section 10.2(b) of this Agreement. If such audit shows any underpayment of Adjusted Gross Receipts by Bio-Techne, then, within seven (7) days after Bio-Techne’s receipt of such report, Bio-Techne shall remit to Sponsor:

 

(i)     the amount of such underpayment; and

 

(ii)     if such underpayment exceeds five percent (5%) of the total Adjusted Gross Receipts owed for the Calendar Year then being reviewed, the reasonably necessary fees and expenses of Sponsor relating to such audit, including, but not limited to, fees of a third-party auditing firm performing such audit.

 

9.2     Audit, Inspection or Investigation of Bio-Techne by a Regulatory Authority. Bio-Techne shall allow representatives of Regulatory Authorities to inspect and audit its facility, the quality systems of Bio-Techne insofar as they are pertinent to such Regulatory Authority’s audit in connection with the Co-Developed Test Kits. Bio-Techne shall cooperate with any inquiry or investigation by a Regulatory Authority with respect to Bio-Techne’s compliance with Law in relation to the Co-Developed Test Kits and Bio-Techne’s marketing or sale thereof. Bio-Techne shall immediately notify Sponsor of any inspection, audit, inquiry or investigation made by a Regulatory Authority that may involve the Co-Developed Test Kits, its facilities or business. Sponsor shall have the option of having its representatives on-site, by video conference or by phone during any such site visit by any Regulatory Authorities or meeting with such Regulatory Authorities to discuss the ongoing inquiries, questions and results of such inspection, audit, inquiry or investigation. Bio-Techne shall provide Sponsor in writing of the results of such inspection, audit, inquiry or investigation, immediately after such inspection, audit, inquiry or investigation has occurred, including without limitation providing to Sponsor copies of any resulting document of action (e.g., FDA Form 483 inspection observation report, regulatory letters, etc.) resulting there from to the extent relevant to Sponsor within five (5) days of their receipt. With the support of a Working Group established for this purpose, Sponsor and Bio-Techne shall collaborate in good faith in preparing responses to and plans of correction for any issues raised in the course of such inspection, audit, inquiry or investigation. The Working Group shall endeavor to fashion responses and plans of correction that both achieve the necessary compliance objectives as promptly as is reasonably practicable and that can be implemented by Bio-Techne on a cost-effective basis. Bio-Techne acknowledges, however, that ultimately the Sponsor is the manufacturer of record and therefore has legal responsibility for regulatory compliance, and that therefore in the event that a consensus cannot be achieved with respect to any response or plan of correction, Sponsor shall have the authority to determine the final form and content of the response or plan of correction, taking into account cost-effectiveness but also the need to maintain continuity of production, and Sponsor shall be responsible for submitting responses and plans of correction to the applicable Regulatory Authority. Sponsor shall provide a copy of each final response and plan of correction to Bio-Techne. If any Regulatory Authority determines that Bio-Techne is not in compliance with any applicable Laws, Bio-Techne shall promptly inform Sponsor of its plans to come into compliance with such Laws, to the extent the Co-Developed Test Kits are or may be affected, and shall continue to keep Sponsor informed of its progress until compliance has been attained.

 

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9.3     Quality Related Communication

 

(a)     Prior to 510(k) Clearance/Granting of de novo Classification Request. Prior to the issuance of a 510(k) clearance or the granting of a de novo classification request, with respect to the Co-Developed Test, and without limiting the legal responsibility of Sponsor as the manufacturer of record of the Co-Developed Test Kit, as between Sponsor and Bio-Techne, Bio-Techne shall Manufacture the Co-Developed Lab Test in accordance with any and all quality-related requirements imposed by the EUA, or the requirements of any other applicable Regulatory Authority, and any End User-Specific Requirements in respect of the Co-Developed Test Kit (including without limitation any requirements of 21 C.F.R. Part 820 that are not waived by such EUA); provided, however, Sponsor shall retain the oversight responsibilities provided for in Section 9 and the other applicable provisions of this Agreement . The Steering Committee shall have the authority to establish a compliance protocol (the “EUA Compliance Protocol”) based upon the terms of the EUA, and the requirements of any other applicable Regulatory Authority, in respect of the Co-Developed Test Kit and to amend the EUA Compliance Protocol from time to time as deemed necessary or appropriate by the Steering Committee (and any differences in the Steering Committee shall be resolved through the Escalation Process). Upon the establishment of the EUA Compliance Protocol, the EUA Compliance Protocol shall be deemed to be incorporated by reference into this Agreement and to form a part hereof.

 

(b)     Upon 510(k) Clearance / Granting of a de novo Classification Request. Upon the issuance of 510(k) clearance or the granting of a de novo classification request with respect to the Co-Developed Test, and without limiting the legal responsibility of Sponsor as the manufacturer of record of the Co-Developed Test Kit, as between Sponsor and Bio-Techne, Bio-Techne shall Manufacture the Co-Developed Lab Test in accordance with 21 C.F.R. Part 820 and any and all other applicable quality-related requirements imposed by the FDA, or the requirements of any other applicable Regulatory Authority, and any End User-Specific Requirements in respect of the Co-Developed Test Kit. The Steering Committee shall have the authority to establish a compliance protocol (the “Part 820 Compliance Protocol”) based upon the requirements of 21 C.F.R. Part 820, and the requirements of any other applicable Regulatory Authority, and to amend the Part 820 Compliance Protocol from time to time as deemed necessary or appropriate by the Steering Committee (and any differences in the Steering Committee shall be resolved through the Escalation Process). Upon the establishment of the Part 820 Compliance Protocol, the Part 820 Compliance Protocol shall be deemed to be incorporated by reference into this Agreement and to form a part hereof.

 

9.4     Quality Related Communication

 

(a)     Notification of Deviations. Bio-Techne shall notify Sponsor within two (2) days in the event of any procedural Deviation from product specification, the requirements of Section 9.3, or test failure for supplied product. Unless otherwise obligated by law or impractical due to requiring an immediate response, such as a spill, Bio-Techne shall consult with Sponsor before taking action in connection with these events.

 

(b)     Sponsor Contact Person. Should Deviations arise, Bio-Techne will contact Sponsor in accordance with this Agreement, to address the issues depending upon the state of urgency. In such instances, the management representative at Sponsor or designee will assign a contact person at Sponsor for further action. As of the Effective Date, such contact person shall be the person listed on Schedule 2.1(c).

 

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9.5     Resolution of Quality Issues. In accordance with this Agreement, representatives from both the Sponsor and the Bio-Techne Quality Department will be involved in resolution of quality issues, such as, but not limited to Deviations, errors, or out of specification/aberrant-suspect results, in an effort to reach a mutually agreeable decision. If a mutually agreeable resolution is not reached with respect to a given quality issue, the matter will be referred to the Steering Committee for resolution (if necessary through the Escalation Process).

 

9.6     Component Control. Bio-Techne and Sponsor shall mutually agree upon the specification of the Original Components and approved alternatives to the Components that can be substituted for an Original Component (the “Approved Alternative Components”) prior to the time of submission of applications for EUA, 510(k) clearance or de novo classification, or the submission to any other applicable Regulatory Authority. Bio-Techne shall have the authority on notice to but without any further approval of Sponsor to make changes to the Original Components to the extent such change is to an Approved Alternative Component. Any changes to the Original Components or Approved Alternative Components, and any changes to any Components that are substituted for Original Components through the following process (other than through the substitution of Approved Alternative Components), shall be determined as follows: (i) if Bio-Techne desires to propose changes to any Component or Approved Alternative Component, Bio-Techne shall provide Sponsor with a detailed description of such proposed changes, and no such changes to the Components or Approved Alternative Components, shall be introduced without Sponsor’s prior approval, (ii) if a Component or Approved Alternative Component becomes unavailable, Bio-Techne shall promptly provide Sponsor with a detailed description of a proposed replacement (and if Sponsor requests, alternative replacement approaches), and no such replacement shall be introduced without Sponsor’s prior approval, (iii) if Sponsor desires to change a Component or an Approved Alternative Component based on Sponsor’s belief that such change is required in order to comply with regulatory requirements for which Sponsor is responsible as a result of Sponsor’s position as manufacturer of record of the Co-Developed Test Kits, Sponsor and Bio-Techne shall consult together (if necessary with the support of a Working Group) to endeavor to achieve consensus on such change, however if consensus is not able to be achieved then Sponsor shall have the ultimate authority to require such change to be made, taking into consideration considerations of cost-effectiveness but ultimately prioritizing the need for regulatory compliance and quality, and (iv) if Sponsor desires to propose changes to any Component or Approved Alternative Component for reasons other than those described in clause (iii) of this sentence, then Sponsor shall provide Bio-Techne with a detailed description of such proposed changes, and no such changes to the Components or Approved Alternative Components shall be introduced without Bio-Techne’s prior approval. Bio-Techne agrees to promptly and precisely implement any changes to the Components or Approved Alternative Components that have been determined pursuant to the process that is described in this Section 9.6. Sponsor shall be responsible for making any submissions to any Regulatory Authority with respect to any changes in Components or Approved Alternative Components and Bio-Techne agrees to promptly make available to Sponsor any and all support and documentation necessary in connection with such filings. In addition, Bio-Techne shall notify Sponsor of changes in the Manufacturing processes and methods, including, but not limited to:

 

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(a)     changes in Manufacturing processes which could reasonably be expected to affect the function or quality of the Co-Developed Test Kits;

 

(b)     changes in Component or Approved Alternative Component suppliers which could reasonably be expected to affect the quality of the Co-Developed Test Kits; and

 

(c)     other changes which could reasonably be expected to affect the function or quality of the Co-Developed Test Kits.

 

9.7     Annual Product Review

 

(a)     Review Activities. Where appropriate, a periodic product review will be prepared and reviewed according to Bio-Techne’s policies and procedures. All review activities, which are the responsibility of Bio-Techne, will be completed and documented as per a mutually agreed timeframe. The annual product review documentation completed by Bio-Techne will be provided to Sponsor for review.

 

(b)     Quality Reviews. The Steering Committee will meet periodically to review quality issues related to the obligations and responsibilities as described in this Agreement. During this periodic review, quality issues related to the past production by Bio-Techne will be reviewed. The information presented and discussed during the review meeting will be documented by Bio-Techne as a part of the Annual Product Review. The Steering Committee will approve the final draft.

 

9.8     Regulatory Filing Requirements.

 

(a)     Bio-Techne Support of Sponsor Reporting Obligations. If Sponsor is required to submit to the Regulatory Authorities any information concerning the processing or Manufacturing of any of the Co-Developed Test Kits from Bio-Techne, Bio-Techne will promptly provide to Sponsor copies of documentation, data, and other information with respect to processing, packaging, and the facility as shall be reasonably necessary. Bio-Techne shall also make available its cooperation and consultation if reasonably requested by Sponsor and/or required by the Regulatory Authorities for development of additional data or performance of studies concerning Sponsor products. Bio-Techne shall also promptly provide, if required by the Regulatory Authorities, information concerning its production processes and quality control procedures with respect to the product. Bio-Techne shall promptly provide to Sponsor all documentation, data, and information reasonably in advance of their required submission to allow for Sponsor review. Bio-Techne shall endeavor in good faith to satisfactorily resolve all reasonable Sponsor comments raised during review prior to submission if such submission is to be made by Sponsor Terms for development of additional data or performance studies will be mutually agreed upon in writing.

 

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(b)     Submission of Regulatory Documentation. If Sponsor is required or intends to submit any documentation to, or otherwise communicate with the FDA, and those communications directly relate to the Co-Developed Test Kits in a material manner, prior to any submission or communication, Sponsor will discuss the submission of such documentation or communication with Bio-Techne; provided, however, Sponsor shall determine, in its sole discretion, the manner in which to submit such documentation or communicate to the FDA. Bio-Techne shall advise Sponsor in advance of any major planned changes to any documents, which directly relates to the Co-Developed Test Kits. Sponsor shall determine if the change requires FDA notification and, if appropriate, submit Sponsor-specific changes to the FDA. Bio-Techne shall notify Sponsor immediately of any adverse finding by the FDA that directly relates to the Co-Developed Test Kits or that could affect them. Sponsor agrees to inform Bio-Techne of any communication with the FDA which affect Bio-Techne’s obligations hereunder. For all other communications or submission of documentation to any Regulatory Authority other than the FDA, Sponsor shall determine, in its sole discretion, whether such communication or submission of documentation shall be made by the Sponsor, the Parties jointly or by Bio-Techne. Bio-Techne shall immediately Notify and keep Sponsor informed of any adverse finding by any Regulatory Authority that directly relates to the Co-Developed Test Kits or that could affect them.

 

9.9     Outsourcing and Vendor Qualification. Bio-Techne will notify Sponsor prior to outsourcing of any aspect of manufacturing or testing and has the responsibility to ensure that the agreed upon third party is compliant with all applicable regulations. Bio-Techne shall obtain written authorization from Sponsor prior to outsourcing.

 

9.10     Storage of Documentation by Bio-Techne.

 

(a)     Maintenance of Product Documentation. Upon Sponsor’s request, Bio-Techne agrees to promptly make available to Sponsor all documentation related to the Co-Developed Test Kits. Bio-Techne shall keep all documentation that relates to the Co-Developed Test Kits in a manner so as to protect and secure the documentation against damage, destruction, unintended changes, or disposal during the required time of storage. Bio-Techne shall keep and maintain all such documentation in accordance with Bio-Techne’s own policies and procedures and in compliance with 21 C.F.R. Part 820, and the requirements of any other applicable Regulatory Authority. Bio-Techne shall maintain records of test usage and ensure that any records associated with the EUA or any other clearance or approval of any Regulatory Authority are maintained until notified by Sponsor that such records may be disposed of. Bio-Techne shall not destroy any records described or referenced in this Section 9.10(a) unless and until so authorized by Sponsor.

 

(b)     Storage Requirements. In order for Sponsor to comply with its obligations under Law as manufacturer of record of the Co-Developed Test, Bio-Techne shall keep backup copies of all documentation relating to the Co-Developed Test and Co-Developed Test Kits until authorized by Sponsor to destroy such documentation. For the archiving of data, media, diskettes, and similar media, Bio-Techne shall keep the original media and back-up copies in separate locations protected against damage, destruction, and or disposal during the required time of storage.

 

9.11     Product Specifications. Bio-Techne has the responsibility to have an established specification control procedure. Sponsor requires that the Components and Product will have written Specifications or SOPs under change/revision control. Specifications or SOPs serve as a basis for component and product quality evaluation. For any Major Changes to the Specification or SOPs, Bio-Techne shall give Notice to Sponsor and shall not implement such changes unless and until Sponsor approves such changes. Bio-Techne shall use its internal Specifications (approved by Sponsor) to test Components and Product. No materials shall be released or used before the evaluation of Sponsor has been completed.

 

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9.12     Product Complaints. Without limiting the legal responsibility of Sponsor as the manufacturer of record of the Co-Developed Test, as between Sponsor and Bio-Techne, Bio-Techne shall be responsible for the collection and compilation in a compliant way of all information of which Bio-Techne becomes aware and that is necessary for compliance by Sponsor in respect of all known adverse event reporting and complaint-related requirements that are applicable to the Co-Developed Test Kits, with Sponsor retaining (i) the responsibility to provide to Bio-Techne any scientific or technical information that has been developed by ISMMS and that Bio-Techne requires to effectuate such compliant collection and compilation and (ii) oversight responsibility as provided in Section 9 and the other applicable provisions of this Agreement. Bio-Techne shall in compliance with applicable Law track all adverse events of which Bio-Techne becomes aware, including any occurrence of false results, and shall provide to Sponsor all information that Sponsor requires in order to fulfill its reporting obligations to FDA under 21 C.F.R. Part 803, and the requirements of any other applicable Regulatory Authority. Bio-Techne shall be responsible for the compliant collection and compilation of all information of which Bio-Techne becomes aware or that is requested by Sponsor and that is necessary to enable Sponsor to comply with adverse event or complaint information received (from End Users, patients and/or Regulatory Authorities) and shall deliver all such information to Sponsor promptly upon receipt by Bio-Techne. Upon request by Sponsor and to the extent required by Law, Bio-Techne will investigate each such adverse event and complaint and provide a written report on the results of the investigation to Sponsor within fifteen (15) days. To the extent that Sponsor, applicable Law or any Regulatory Authority so requires, Bio-Techne will conduct a root cause analysis of any such complaint and if required by the Steering Committee will involve the Steering Committee or a subcommittee thereof or a Working Group in the root cause analysis. Bio-Techne will communicate with the applicable End User the results of the complaints investigation, if necessary or required by Law or the Sponsor, provided that each such communication shall have been approved in advance by Sponsor.

 

9.13     Compliance Program. At all times during the Manufacturing process, Bio-Techne shall maintain with respect to the Co-Developed Test Kits a device master record and index, a quality management program and standard operating procedures that are (i) consistent with industry standards, (ii) no less stringent than those described in the applicable submissions for EUA, 510(k) clearance or de novo classification, or submissions to any other applicable Regulatory Authority and (iii) reasonably approved by Sponsor. A Working Group may oversee such quality programs and may recommend changes or additions thereto. In addition, at least ten (10) days prior to the sale of the first Co-Developed Test Kit, Bio-Techne shall provide to Sponsor a copy of Bio-Techne’s compliance program for compliance with Health Care Laws relating to fraud and abuse. Promptly upon receipt of such compliance program, Sponsor shall review and provide Bio-Techne with recommended changes to such compliance program, which Bio-Techne agrees to implement prior to the sale of the first Co-Developed Test Kit.

 

9.14     Compliance with Requirements Established by Non-U.S. Governmental Authorities. At such time as any non-U.S. Governmental Authority approves the sale and distribution of the Co-Developed Test Kit outside the U.S., upon reasonable consultation with Bio-Techne, Sponsor shall have the unilateral right by Notice given to Bio-Techne to supplement this Section 9 with any additional protocols and obligations of Bio-Techne necessary to satisfy any applicable requirements established by any non-U.S. Governmental Authority (and effective upon the giving of such Notice the terms of such additional protocols and obligations shall be deemed to have been incorporated by reference into this Agreement for all purposes).

 

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9.15     Quality Agreement. Simultaneously herewith, Sponsor and Bio-Techne are entering into the Quality Agreement. To the extent that any term of the Quality Agreement conflicts with any term of this Section 9, the applicable term of this Agreement shall prevail. To the extent that this Section 9 or the Quality Agreement addresses a subject that is not addressed in the other, the fact that the other agreement is silent as to such subject shall not affect the construction or interpretation of the terms of this Agreement or the Quality Agreement (as applicable) that apply to such subject. The Parties acknowledge that the Quality Agreement may provide for reporting and compliance terms and obligations that are not specifically set forth in this Section 9.

 

	
			10. 

				
			ECONOMIC OBLIGATIONS AND CASH MANAGEMENT.

			

 

10.1     Responsibility for Expenses. Each Party shall be responsible for its own expenses incurred by such Party in the performance of such Party’s obligations under this Agreement, without any right of reimbursement from the other Party or any right to recoup such expenses prior to the division of Adjusted Gross Receipts that is contemplated by this Section 10.

 

10.2     Sharing of Adjusted Gross Receipts.

 

(a)     Adjusted Gross Receipts from End Users of Co-Developed Test Kits. To the extent that during the Term Adjusted Gross Receipts arise from sales of Co-Developed Test Kits to End Users, Bio-Techne shall pay to Sponsor [******] of such Adjusted Gross Receipts.

 

(b)     Payment of Share of Adjusted Gross Receipts. For each month in Phase II, including the month in which the Term ends, Bio-Techne will pay the amounts due to Sponsor as set forth in Section 10.2(a) as follows: (i) in the case of the last month in Bio-Techne’s first, second and third fiscal quarter, within twenty-one (21) days after the end of such month, (ii) in the case of the last month in Bio-Techne’s fiscal year, within thirty (30) days after the end of such month and (iii) for all other months, within fifteen (15) days after the end of such month. Together with each payment, Bio-Techne shall account to Sponsor for all Adjusted Gross Receipts arising during the applicable calendar month and shall deliver to Sponsor a written report of all such Adjusted Gross Receipts in the form prescribed by Sponsor. Bio-Techne shall pay to Sponsor by wire transfer to the account of which Sponsor shall give Notice to Bio-Techne the amount required to be paid to Sponsor in respect of such Adjusted Gross Receipts by the terms of this Section 10. Sponsor and Bio-Techne shall, by mutual agreement, true-up and reconcile any differences in monthly accounting and payments on a calendar quarterly basis.

 

(c)     Sales at Below Cost of Production. To the extent that Governmental Authorities require the testing kits to be sold at below the cost of production, in lieu of the revenue sharing provisions of Section 10.2(b) through (d), Sponsor and Bio-Techne shall divide the applicable Adjusted Gross Receipts proportionately to each Party’s expenses in connection with the applicable sales.

 

(d)     Resolution of Payment Related Differences. If Sponsor has any differences with any calculation of any amount required to be paid to Sponsor pursuant to this Section 10, such differences shall promptly be referred to the Steering Committee, and any differences that the Steering Committee is unable to resolve shall be resolved through the Escalation Process.

 

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			11. 

				
			RUO MATTERS

			

 

11.1     Selling or Distributing Co-Developed Test Kits for Research Use Only. The Steering Committee shall establish a Working Group for the purpose of considering the timing and appropriate scope of distribution of Co-Developed Test Kits for Research Use Only and the conditions and terms under which such Co-Developed Test Kits will be sold. After deliberation and mutual agreement by the Working Group as to the conditions and terms under which such Co-Developed Test Kits will be sold, the Parties will memorialize such terms in an addendum (the “RUO Addendum”) to this Agreement, with the understanding that at a minimum the following terms will be included in the RUO Addendum:

 

(a)     Bio-Techne shall pay to Sponsor [******] of Adjusted Gross Receipts arising from sales of Co-Developed Test Kits for Research Use Only; and

 

(b)      Subject to the terms of Section 6.3, the Co-Developed Test Kits sold for Research Use Only shall be branded as “Mount Sinai ‘powered by’ R&D Systems” in such a manner as is approved by the Parties.

 

	
			12. 

				
			REPORTING

			

 

12.1     Required Bio-Techne Reports. During the Term, Bio-Techne shall provide to Sponsor in a timely manner all reports required to be provided by Bio-Techne to Sponsor under this Agreement. Except as may be determined by Sponsor under Section 9.8(b) or otherwise as expressly authorized under this Agreement, in no event shall Bio-Techne communicate directly with any Governmental Authority in respect of the Co-Developed Test Kits.

 

12.2     Required Sponsor Reports. During the Term, Sponsor shall provide to Bio-Techne in a timely manner all reports required to be provided by Sponsor to Bio-Techne under this Agreement. Sponsor shall also file or submit in a timely manner all reports required to be filed or submitted by Sponsor to any Governmental Authority as the manufacturer of record of the Co-Developed Test Kits. Promptly upon the provision thereof to any Governmental Authority, Sponsor shall provide to Bio-Techne a copy of any report filed or submitted by Sponsor with any Governmental Authority by the terms of this Agreement or applicable Law with respect to the Co-Developed Test Kits.

 

12.3     Other Reports. The Steering Committee may from time to time prescribe other reports that are required to be provided by Bio-Techne to Sponsor or by Sponsor to Bio-Techne, including the content and the timing thereof.

 

	
			13. 

				
			OTHER COVENANTS OF THE PARTIES

			

 

13.1     ISO 13485. At all times during the Term, Bio-Techne covenants that it shall be certified to be in compliance with the ISO 13485:2016 Quality System Standards. The notified body that issues any certificate of compliance to Bio-Techne shall be a body that is authorized by FDA to conduct audits under the Medical Device Single Audit Program (MDSAP).

 

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13.2     [******]

 

13.3     Further Assurances. Each of Party hereto shall, and shall cause their respective Affiliates to, execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement and the other Transaction Documents.

 

13.4     Confidentiality. The Parties agree that all information communicated or provided by either Party to the other Party pursuant to or in connection with this Agreement is subject to the terms of the Bio-Techne NDA, which such terms are hereby incorporated by this reference.

 

13.5     Press Releases. Without limiting the provisions of Section 6, neither Party shall issue any press release that names the other Party or any Mount Sinai Entity or that specifically refers to the transactions contemplated by this Agreement without the express prior written consent of the other Party, provided that Bio-Techne shall have the right to issue a press release or make a securities filing that, in the opinion of counsel to Bio-Techne, Bio-Techne is required by federal securities laws to issue or file so long as Bio-Techne consults with Sponsor with respect thereto and (to the extent permitted by Law) provides to Sponsor a copy of such press release or securities filing as much in advance of the issuance or filing as is feasible. The Parties shall agree upon the form, content and release date of a joint press release to be issued upon the execution of this Agreement.

 

13.6     Independent Activities; Non-Exclusivity. The only obligations undertaken by the Parties are those expressly provided in this Agreement. Each Party may engage in whatever activities it chooses, whether or not the same be competitive with the activities contemplated herein, without having or incurring any obligation to offer any interest in such activities to the other Party, and the other Party hereby waives, relinquishes and renounces any such right or claim of participation. The Parties expressly confirm and agree that this Agreement is non-exclusive. Nothing herein shall be deemed to give rise to an obligation on the part of either Party to deal exclusively with the other Party, nor to any obligation of either party to take or refrain from taking any action that would have the effect of increasing the amount of Adjusted Gross Receipts that may be derived from the Commercialization of the Co-Developed Test. Without limiting the generality of the foregoing, Bio-Techne recognizes that (i) Sponsor has licensed and in the future may continue to license to third parties the same Intellectual Property as is licensed to Bio-Techne hereunder; (ii) Sponsor shall have the right to enter into agreements and arrangements with third parties that are similar to and/or have the same or similar objectives as this Agreement (even if such agreements and arrangements result in products being Commercialized that are competitive with the Co-Developed Test Kits); and (iii) nothing in this Agreement shall be construed in a manner that would limit the ability of ISMMS or any other Mount Sinai Entity to carry out its or their research, education or patient care charitable missions.

 

13.7     ISMMS License Agreements. During the Term, Sponsor hereby agrees not to amend, modify or terminate (or consent to or approve any amendment or modification of) the ISMMS License Agreements in any manner that would adversely affect the rights of Bio-Techne under this Agreement.

 

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			14. 

				
			REPRESENTATIONS AND WARRANTIES OF BIO-TECHNE

			

 

Bio-Techne hereby represents and warrants to Sponsor that the statements contained in this Section 14 are true and correct as of the Effective Date, except to the extent that any such representation or warranty refers to a specified date, in which event such representation or warranty shall be true and correct as of such specified date.

 

14.1     Organization and Qualification of Bio-Techne. Bio-Techne is duly organized, validly existing and in good standing under the Laws of the State of Minnesota and has all necessary corporate power and authority to own, operate or lease the properties and assets now owned, operated or leased by it and to carry on its business as currently conducted. Bio-Techne is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the operation of its business as currently conducted makes such license or qualification necessary.

 

14.2     Authority. Bio-Techne has all necessary corporate power and authority to enter into this Agreement and the other Transaction Documents to which it is or will be a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Bio-Techne of this Agreement and any other Transaction Document to which Bio-Techne is or will be a party, the performance by Bio-Techne of its obligations hereunder and thereunder and the consummation by Bio-Techne of the transaction contemplated hereunder and thereunder have been duly authorized by all requisite corporate action on the part of Bio-Techne, and no other proceedings on the part of Bio-Techne is required to authorize the execution, delivery and performance thereof by such Person. When each Transaction Document to which Bio-Techne is or will be a party has been duly executed and delivered by Bio-Techne (assuming due authorization, execution and delivery by each other party thereto), such Transaction Document will constitute a legal and binding obligation of Bio-Techne, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

14.3     No Conflicts; Consents. The execution and delivery by Bio-Techne of this Agreement and the other Transaction Documents to which it is or will be a party, and the consummation of the Transaction, and performance by Bio-Techne of the obligations hereunder and thereunder, do not and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the certificate of incorporation, bylaws or other organizational documents of Bio-Techne in any material respect; (b) conflict with or result in a violation or breach of any provision of any Law or Order applicable to Bio-Techne or its business as currently conducted; (c) require the consent, notice or other action by any Person under, conflict with, result in a violation or breach of, constitute a default or an event that, with or without notice or lapse of time or both, would constitute a material default under or result in the termination or acceleration of or create in any party a right of purchase, sale, acceleration, termination, modification or cancellation under, any material contract to which Bio-Techne is a party; or (d) result in the creation or imposition of any lien or encumbrance on the Co-Developed Test Kits. The execution and delivery by Bio-Techne of this Agreement and the other Transaction Documents to which it is or will be a party, and the consummation of the transactions contemplated herein and therein, and performance by Bio-Techne of the obligations hereunder and thereunder will not conflict with or result in a violation or breach of any provision of any Contract. Other than the Governmental Approvals, no consent, approval, Permit, Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect to Bio-Techne in connection with the execution and delivery of this Agreement the other Transaction Documents and the performance and consummation by Bio-Techne.

 

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14.4     Compliance With Laws; Permits.

 

(a)     Bio-Techne has materially complied, and is now in material compliance, with all Laws applicable to this Agreement, the Co-Developed Test Kits and to the conduct of its business as currently conducted.

 

(b)     All Permits required for Bio-Techne to conduct its business as currently conducted or for the ownership and use of its properties and assets to be used in connection with the Co-Developed Test Kits have been obtained by Bio-Techne and are valid and in full force and effect. All fees and charges with respect to such Permits as of the Effective Date have been paid in full. No event has occurred that, with or without notice or lapse of time or both, would reasonably be expected to result in the revocation, suspension, lapse or limitation of any of Bio-Techne’s Permits necessary for the Development, Manufacturing and Commercialization of the Co-Developed Test Kits pursuant to this Agreement and the other Transaction Documents.

 

14.5     Intellectual Property. Bio-Techne represents and warrants that (i) it is the sole and exclusive legal and beneficial owner of all right, title and interest in and to the Bio-Techne Background IP free and clear of Encumbrances, (ii) it has full and sufficient right, title and authority to grant the rights and licenses granted to Sponsor hereunder, (iii) the Bio-Techne Background IP does not contain any materials developed by a third party and used by Bio-Techne, except pursuant to a license agreement, and (iv) the Bio-Techne Background IP does not infringe any Intellectual Property rights of a third party.

 

14.6     Insurance. Bio-Techne or its Affiliates maintain fire, liability, product liability, umbrella liability, real and personal property, workers’ compensation, vehicular, fiduciary liability and other casualty and property insurance, including the insurance set forth on Schedule 17.2, relating to its business as currently conducted, its properties and assets (collectively, the “Insurance Policies”). There are no Actions related to Bio-Techne’s business as currently conducted, its properties and assets pending under any such Insurance Policies as to which coverage has been questioned, denied or disputed or in respect of which there is an outstanding reservation of rights. Neither Bio-Techne nor any of its Affiliates has received any written notice of cancellation of, premium increase with respect to, or alteration of coverage under, any of such Insurance Policies. All premiums due on such Insurance Policies have either been paid or, if not yet due, accrued. All such Insurance Policies (a) are in full force and effect and enforceable in accordance with their terms; (b) are provided by carriers who are financially solvent; and (c) have not been subject to any lapse in coverage. None of Bio-Techne or any of its Affiliates is in default under, or has otherwise failed to comply with, in any material respect, any provision contained in any such Insurance Policy. The Insurance Policies are of the type and in the amounts customarily carried by Persons conducting a business similar to Bio-Techne’s business as currently conducted and are sufficient for compliance with all applicable Laws and Contracts to which Bio-Techne is a party or by which it is bound.

 

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14.7     Due Diligence. All documents, data and materials delivered by Bio-Techne to Sponsor in connection with any due diligence request of Sponsor were true, correct and complete when delivered.

 

14.8     ISO 13485. Bio-Techne has been certified to be in compliance with the ISO 13485:2016 Quality System Standards by a notified body that FDA has authorized to conduct audits under the Medical Device Single Audit Program (MDSAP).

 

	
			15. 

				
			REPRESENTATIONS AND WARRANTIES OF SPONSOR

			

 

Sponsor hereby represents and warrants to Bio-Techne that the statements contained in this Section 15 are true and correct as of the Effective Date, except to the extent that any such representation or warranty refers to a specified date, in which event such representation or warranty shall be true and correct as of such specified date.

 

15.1     Organization and Qualification of Sponsor. Sponsor is duly organized, validly existing and in good standing under the Laws of the State of New York and has all necessary corporate power and authority to own, operate or lease the properties and assets now owned, operated or leased by it and to carry on its business as currently conducted. Sponsor is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the operation of its business as currently conducted makes such license or qualification necessary.

 

15.2     Authority. Sponsor has all necessary corporate power and authority to enter into this Agreement and the other Transaction Documents to which it is or will be a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Sponsor of this Agreement and any other Transaction Document to which Sponsor is or will be a party, the performance by Sponsor of its obligations hereunder and thereunder and the consummation by Sponsor of the transaction contemplated hereunder and thereunder have been duly authorized by all requisite corporate action on the part of Sponsor, and no other proceedings on the part of Sponsor is required to authorize the execution, delivery and performance thereof by such Person. When each Transaction Document to which Sponsor is or will be a party has been duly executed and delivered by Sponsor (assuming due authorization, execution and delivery by each other party thereto), such Transaction Document will constitute a legal and binding obligation of Sponsor, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

15.3     Intellectual Property. Sponsor represents and warrants that (i) the rights to use the MS Background IP have been duly and validly licensed by ISMMS to Sponsor for purposes of this Agreement pursuant to the ISMMS IP License Agreement, (ii) it has full and sufficient right, title and authority to grant the rights and licenses granted to Bio-Techne hereunder, (iii) the MS Background IP does not contain any materials developed by a third party and used by Sponsor, except pursuant to a license agreement, (iv) the MS Background IP does not infringe any Intellectual Property rights of a third party, and (v) the copies of the ISMMS License Agreements made available to Bio-Techne prior to the Effective Date are true, correct and complete copies, with the competitively sensitive and confidential terms thereof redacted. As of the Effective Date, each ISMMS License Agreement is in full force and effect.

 

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			16. 

				
			DISCLAIMER OF WARRANTIES; LIMITATION OF LIABILITIES

			

 

16.1     DISCLAIMER OF WARRANTIES. EXCEPT AS IS EXPRESSLY SET FORTH IN SECTION 15.3, SPONSOR AND ISMMS MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESSED OR IMPLIED, WITH RESPECT TO THE MS LAB TEST OR ANY MATERIAL DELIVERED BY SPONSOR TO BIO-TECHNE. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE USE OF THE MATERIAL WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER PROPRIETARY RIGHTS.  RECIPIENT ASSUMES ALL RISKS ASSOCIATED WITH THE USE OF THE MATERIAL UNDER THIS AGREEMENT.

 

16.2     CONSEQUENTIAL DAMAGES. NOTWITHSTANDING ANYTHING CONTAINED IN THIS AGREEMENT TO THE CONTRARY, NEITHER PARTY OR ITS AFFILIATES, MEMBERS, TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES, AND/OR FACULTY MEMBERS SHALL BE LIABLE IN ANY MANNER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES OF THE OTHER PARTY OR THE OTHER PARTY’S AFFILIATES, MEMBERS, TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES, AND/OR FACULTY MEMBERS, EVEN IF SUCH PARTY, AFFILIATE(S), MEMBER(S) TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES, AND/OR FACULTY MEMBERS HAS BEEN INFORMED IN ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES. EACH PARTY UNCONDITIONALLY AND IRREVOCABLY FOREVER WAIVES, ON BEHALF OF ITSELF, ITS AFFILIATES, MEMBERS, TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES, AND/OR FACULTIES, ANY RIGHT TO SEEK SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES HEREUNDER. THE LIMITATION IN THIS SECTION 16.2 SHALL NOT APPLY TO (I) THE PARTIES’ INDEMNIFICATION OBLIGATIONS (II) ANY BREACH BY EITHER PARTY OF SUCH PARTY’S OBLIGATIONS TO THE OTHER UNDER ANY WRITTEN CONFIDENTIALITY OR NON-DISCLOSURE AGREEMENT ENTERED INTO BY THE PARTIES WHETHER PRIOR TO OR AFTER THE DATE HEREOF, OR (III) ANY VIOLATION BY EITHER PARTY OF SUCH PARTY’S OBLIGATIONS UNDER THIS AGREEMENT WITH RESPECT TO THE INTELLECTUAL PROPERTY OF THE OTHER PARTY.

 

16.3     NO LIABILITY OF ISMMS. BIO-TECHNE HEREBY ACKNOWLEDGES AND AGREES THAT IN NO EVENT SHALL ISMMS HAVE ANY LIABILITY TO BIO-TECHNE FOR THE OBLIGATIONS OR LIABILITIES OF SPONSOR UNDER THIS AGREEMENT UNDER ANY THEORY OF VICARIOUS LIABILITY INCLUDING WITHOUT LIMITATION ANY THEORY IN THE NATURE OF ACTUAL OR APPARENT AGENCY OR ALTER EGO.

 

40

 

 

	
			17. 

				
			INDEMNITY AND INSURANCE

			

 

17.1     Indemnification.

 

(a)     Bio-Techne Indemnification. Bio-Techne, at its sole cost and expense, shall defend, indemnify and hold harmless Sponsor, its Affiliates, each of the Mount Sinai Entities and each and every one of their respective subsidiaries, parents, and Affiliates, and their respective trustees, directors, officers, members, shareholders, faculty members, medical staff, employees, students, agents and representatives (collectively, the “Sponsor Indemnitees”) from and against any third-party Action, and shall pay and reimburse each of them for, any and all related Losses incurred or sustained by, or imposed upon, the Sponsor Indemnitees in favor of any third party to the extent based upon, arising out of, with respect to or by reason of: (i) any negligent or more culpable act or omission of Bio-Techne (including any reckless or willful misconduct) in connection with the performance of its obligations under this Agreement; (ii) Bio-Techne and its Affiliates’ conduct of business activities that are unrelated to the activities contemplated by this Agreement; (iii) any bodily injury, death of any person, or damage to real or tangible personal property to the extent caused by the negligent or more culpable acts or omissions of Bio-Techne (including any reckless or willful misconduct); (iv) any breach or non-fulfillment of any of Bio-Techne’s representation, warranty, or covenant under this Agreement (including without limitation any responsibilities allocated to Bio-Techne under this Agreement); (v) any infringement of Intellectual Property rights of any Person relating to the Bio-Techne Background IP; or (vi) any failure by Bio-Techne to comply with any applicable Law in the performance of its obligations under this Agreement.

 

(b)     Sponsor Indemnification. Sponsor agrees, at its sole cost and expense, to indemnify and hold harmless Bio-Techne, Bio-Techne’s Affiliates, and each and every one of their respective directors, officers, members, shareholders, employees, agents and representatives (collectively, the “Bio-Techne Indemnitees”), from and against any third-party Action, and shall pay and reimburse each of them for, any and all related Losses incurred or sustained by, or imposed upon, the Bio-Techne Indemnitees in favor of any third party to the extent based upon, arising out of, with respect to or by reason of: (i) any negligent or more culpable act or omission of Sponsor (including any reckless or willful misconduct) in connection with the performance of its obligations under this Agreement; (ii) Sponsor’s and its Affiliates’ conduct of business activities that are unrelated to the activities contemplated by this Agreement; (iii) any breach or non-fulfillment of any of Sponsor’s representation, warranty, or covenant under this Agreement (including without limitation any responsibilities allocated to Sponsor under this Agreement); (iv) any infringement of Intellectual Property rights of any Person relating to the Sponsor Background IP or the Sponsor Licensed Marks; or (v) any failure by Sponsor to comply with any applicable Law in the performance of its obligations under this Agreement.

 

41

 

 

(c)     Indemnification Procedure. The indemnified Party agrees to provide the indemnifying Party with prompt written notice of any Action to which this indemnification applies, provided that a failure of the indemnified Party to give written notice shall not affect the indemnifying Party’s obligations hereunder to the indemnified Party except to the extent of actual prejudice suffered by the indemnifying Party due solely to the failure to give such written notice. The indemnifying Party shall have the exclusive right to control the defense of any such Action, at its sole expense and risk, provided that the indemnifying Party agrees in writing in connection with the Action that the indemnifying Party will fully indemnify and defend the other Party and the related indemnitees and shall comply with the following:

 

The indemnifying Party, upon the written request of such indemnified Party, shall, or upon written notice to such indemnified Party may elect to, assume the defense of such proceeding, at the indemnifying Party’s own expense, with counsel reasonably satisfactory to such indemnified Party. Such indemnified Party shall have the right to employ separate counsel in any such proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such indemnified Party unless (i) the indemnifying Party has agreed in writing to pay such reasonable fees and expenses, (ii) the indemnifying Party has failed to assume the defense, pursue the defense reasonably diligently or to employ counsel in a reasonably timely manner, (iii) outside counsel to such indemnified Party has advised such indemnified Party in writing that in such proceeding there is an actual or potential conflict of interest or a conflict on any material issue between the indemnifying Party’s position and the position of such indemnified Party, provided that the indemnifying Party shall be responsible for the reasonable fees and expenses of only one separate outside counsel at any time for all such indemnified Parties, which outside counsel shall be designated in writing by the indemnifying Party.

 

The indemnifying Party shall not settle, or consent to the entry of any judgment in, any Action without obtaining either: (y) an unconditional release of the indemnified Party and its related indemnitees from all liability with respect to all Actions underlying the applicable proceeding, such release not to include any limitation on the indemnified Party’s rights to do business or to its rights under this Agreement or any admission of wrongdoing; or any other injunctive relief; or (z) the prior written consent of the indemnified Party.

 

If the indemnifying Party fails to acknowledge in writing its obligation to defend against each proceeding, the indemnified Party shall be free to dispose of the matter, at the expense of the indemnifying Party, in any way in which the indemnified Party reasonably deems to be in its best interest.

 

An indemnified Party may obtain separate counsel of the indemnified Party’s choice if such indemnified Party reasonably believes the indemnifying Party’s and such indemnified Party’s interests may conflict. An indemnified Party’s undertaking of defense and/or settlement will in no way diminish the indemnifying Party’s obligation to indemnify such indemnified Party and to hold it harmless. In either case, the indemnifying Party will also reimburse such indemnified Party (and all other indemnified Parties) upon demand for all losses, including reasonable attorneys’ fees and court costs the indemnified Party incurs to protect itself, or to remedy the indemnifying Party’s defaults. Under no circumstances will the indemnified Parties be required to seek recovery from Third Parties or otherwise mitigate their losses to maintain an Action against the indemnifying Party, and their failure to do so will in no way reduce the amounts recoverable from the indemnifying Party by the indemnified Parties.

 

17.2     Insurance. During the Term and for a period of five years after the last date on which the applicable Party continues to exploit any Jointly Owned Intellectual Property, each Party will procure and maintain insurance policies, which initially shall be for the coverages, minimum premium amounts and other related requirements as set forth on Schedule 17.2; provided however that Sponsor shall not be required to procure and maintain such insurance until the date of shipment of the first Co-Developed Test to an End User. At any time during the Term, the Steering Committee shall have the authority by Notice given to both Parties to require both Parties to increase the insurance requirements set forth on Schedule 17.2. Within sixty (60) days after the giving of such Notice, each Party shall obtain and thereafter maintain such increased insurance for the period set forth in the first sentence of this Section 17.2.

 

42

 

 

	
			18. 

				
			TERM AND TERMINATION

			

 

18.1     Term and Termination.

 

(a)     Term. The term of this Agreement (the “Initial Term”) commences on the Effective Date and continues thereafter until the that date that is five (5) years following the Effective Date, unless and until sooner terminated as provided in  18.1(c).

 

(b)     Renewal. Upon expiration of the Initial Term, this Agreement shall automatically renew for an additional successive twelve (12) months unless either Party provides written notice of nonrenewal at least ninety (90) days prior to the end of the then-current term or unless sooner terminated as provided in Section 18.1(c) (such period, a “Renewal Term” and together with the Initial Term, the “Term”). If the Term is renewed for a Renewal Term pursuant to this Section 18.1(b), the terms and conditions of this Agreement during each such Renewal Term shall be the same as the terms and conditions in effect immediately prior to such renewal. If either Party provides timely notice of its intent not to renew this Agreement, then, unless otherwise sooner terminated in accordance with its terms, this Agreement shall terminate on the expiration of the then-current Term.

 

(c)     Termination.  

 

(i)     With Cause. This Agreement may be terminated before the expiration date of the Term on written notice:

 

(1)     by either Party, if the other Party materially breaches any provision of this Agreement and either the breach cannot be cured or, if the breach can be cured, it is not cured by the breaching Party within the following period after the giving by the non-breaching Party of notice of such breach to the breaching Party: (A) in the case of any breach that relates to any requirement of applicable Law and that under applicable Law must be cured or remediated by a specific date or that under applicable Law gives rise to an obligation to make a filing or submit a report by a specific date, the period that ends five (5) days before such date; or (B) in the case of any breach not described in clause (A) that with reasonable diligence can be cured within thirty (30) days, a period of thirty (30) days; or (C) in the case of any breach not described in clause (A) that with reasonable diligence cannot be cured within thirty (30) days, that period within which with reasonable diligence such breach could reasonably be cured but not more than a period of thirty (60) days; or

 

(2)     by either Party, if the other Party (A) becomes insolvent, (B) is generally unable to pay, or fails to pay, its debts as they become due, (C) files, or has filed against it, a petition for voluntary or involuntary bankruptcy or pursuant to any other insolvency law, (D) makes or seeks to make a general assignment for the benefit of its creditors, or (E) applies for, or consents to, the appointment of a trustee, receiver or custodian for a substantial part of its property or business.

 

(ii)     Failure to Obtain EUA. If, notwithstanding the compliance by the Parties with their obligations under this Agreement, EUA is not obtained in respect of a Co-Developed Test Kit by the Outside Date, either Party may terminate this Agreement by notice to the other Party.

 

43

 

 

(iii)     End of EUA Period. Notwithstanding anything to the contrary herein, at the End of the EUA Period the Parties shall assess in good faith the demand for and economics of the Co-Developed Test Kits, and within thirty (30) days after the End of the EUA Period, the Parties shall mutually determine whether to continue the efforts to obtain FDA 510(k) approval for the Co-Developed Test Kit as an IVD, the efforts to obtain the approval of the applicable Governmental Authorities in other countries for the sale of the Co-Developed Test Kits, and the Manufacturing and Commercialization of the Co-Developed Test Kits pursuant to this Agreement. Unless within such thirty (30) day period the Parties agree to continue the efforts to obtain FDA 510(k) approval for the Co-Developed Test Kit as an IVD, the efforts to obtain the approval of the applicable Governmental Authorities in other countries for the sale of the Co-Developed Test Kits, and the Manufacturing and Commercialization of the Co-Developed Test Kits pursuant to this Agreement, either Party shall have the right to terminate this Agreement effective as of the end of such thirty (30) period.

 

18.2     Effect of Termination.  

 

(a)     No Release. The expiration or termination of this Agreement, for any reason, shall not release either Party from any obligation or liability to the other Party, including any payment and delivery obligation, that: (i) has already accrued hereunder; (ii) comes into effect due to the expiration or termination of the Agreement; or (iii) otherwise survives the expiration or termination of this Agreement. The Party terminating this Agreement, or in the case of the expiration of this Agreement, each Party, shall not be liable to the other Party for any damage of any kind (whether direct or indirect) incurred by the other Party by reason of the expiration or termination of this Agreement.

 

(b)     Return of Materials and Property. Each Party shall promptly, following the expiration or termination of this Agreement: (i) return to the other Party all documents and tangible materials (and any copies) containing, reflecting, incorporating, or based on the other Party’s Confidential Information; provided, however, that Sponsor may retain copies of any Confidential Information of Bio-Techne incorporated in the Co-Developed Test Kits or to the extent necessary to allow it to make full use of the Co-Developed Test Kits; (ii) permanently erase all of the other Party’s Confidential Information from its computer systems, except for copies that are maintained as archive copies on its disaster recovery and information technology backup systems in which case such copies shall be destroyed upon the normal expiration of the backup files; and (iii) return to the other Party all tangible property in its possession or control, belonging to the other Party.

 

(c)     Sponsor Option to Acquire. If Sponsor terminates this Agreement pursuant to Section 18.1(d) as a result of a material breach by Bio-Techne or an event or occurrence described in Section 18.1(d)(ii) affecting Bio-Techne, then Sponsor shall have the option, but not the obligation, to acquire from Bio-Techne all unsold Co-Developed Test Kits and all work in progress related to the Co-Developed Test Kits in production for a purchase price equal to Bio-Techne’s cost of production therefor (which Sponsor may offset against any damages suffered or incurred by Sponsor as a result of such material breach or termination).

 

44

 

 

(d)     Negotiation of Sponsor Rights Upon Termination Under Section 18.1(c)(i). If Sponsor terminates this Agreement pursuant to Section 18.1(c)(i), then Sponsor shall have the right, by Notice given to Bio-Techne within thirty (30) days after such termination, to elect to enter into arrangements with other manufacturers to continue the Manufacture and Commercialization of the Co-Developed Test using the Bio-Techne Background IP to the extent necessary (and for such purpose to access and utilize the tangible materials describing the Bio-Techne Background IP that have been escrowed pursuant to Section 3.5), subject to the Parties reaching agreement (each in its sole discretion, but with the understanding that each Party will negotiate in good faith to endeavor to reach agreement) with respect to the terms on which Sponsor may exercise such right.

 

(e)     Negotiation of Bio-Techne Rights Upon Termination Under Section 18.1(c)(iii). If Sponsor exercises its right to terminate this Agreement pursuant to Section 18.1(c)(iii), then Bio-Techne shall have the right, by Notice given to Sponsor within thirty (30) days after such termination, to elect to pursue obtaining 510(k) approval for the Co-Developed Test Kit at its sole expense with Bio-Techne acting as the manufacturer of record, and thereafter to Manufacture and Commercialize Co-Developed Test Kits, subject to the Parties reaching agreement (each in its sole discretion, but with the understanding that each Party will negotiate in good faith to endeavor to reach agreement) with respect to the terms on which Bio-Techne may exercise such right.

 

18.3     Survival of Terms. In addition to any provision which by its terms contemplates performance after the Term, the following provisions shall survive the expiration or termination of this Agreement: Section 3.2(d); Section 3.3; Section 5.3; Section 6.3(d); Section 6.3(f); Section 6.3(g); Section 6.3(j); Section 9.8; Section 9.10; Section 10; Section 11; Section 13.3; Section 13.4; Section 16; Section 17; Section 18; Section 19.2; Section 19.8; Section 19.9; and Section 19.11.

 

	
			19. 

				
			ADDITIONAL PROVISIONS

			

 

19.1     Independent Contractors. The Parties are independent contractors. Nothing contained in this Agreement is intended to create an agency, partnership or joint venture between the Parties. At no time will either Party make commitments or incur any charges or expenses for or on behalf of the other Party.

 

19.2     Compliance with Laws. Bio-Techne shall comply with all prevailing Laws that apply to its activities or obligations under this Agreement. For example, Bio-Techne will comply with applicable United States export Laws. The transfer of certain technical data and commodities may require a license from the applicable agency of the United States government and/or written assurances by Bio-Techne that Bio-Techne will not export data or commodities to certain foreign countries without prior approval of the agency. Sponsor does not represent that no license is required, or that, if required, the license will issue.

 

19.3     Modification, Waiver and Remedies. This Agreement may only be modified by a written amendment that is executed by an authorized representative of each Party. Any waiver must be express and in writing. No waiver by either Party of a breach by the other Party will constitute a waiver of any different or succeeding breach. Unless otherwise specified, all remedies are cumulative.

 

45

 

 

19.4     Assignment.

 

(a)     General. Except as otherwise provided in this Section 19.4, neither Party may transfer, delegate or assign or otherwise dispose of this Agreement or any of its rights, duties, or obligations under this Agreement without the prior written consent of the other Party, which consent may be granted or denied in such Party’s sole discretion.

 

(b)     Assignment by Sponsor. Notwithstanding the provisions of Section 19.4(a), with the prior written consent of Bio-Techne (which Bio-Techne shall not unreasonably condition, withhold or delay), Sponsor may assign, delegate or subcontract Sponsor’s rights and obligations hereunder to an Affiliate of Sponsor or to a Person which succeeds to Sponsor’s business through a sale, merger, consolidation, corporate reorganization, sale of all or substantially all of Sponsor’s assets, change of name or like event, provided that no such assignment shall relieve Sponsor of any duty, liability or responsibility under this Agreement (for all of which Sponsor shall remain primarily liable).

 

(c)     Assignment by Bio-Techne. Notwithstanding the provisions of Section 19.4(a), with the prior written consent of Sponsor (which Sponsor shall not unreasonably condition, withhold or delay), Bio-Techne may assign, delegate or subcontract Bio-Techne’s rights and obligations hereunder to an Affiliate of Bio-Techne or to a Person which succeeds to Bio-Techne’s business through a sale, merger, consolidation, corporate reorganization, sale of all or substantially all of Bio-Techne’s assets, change of name or like event, provided that no such assignment shall relieve Bio-Techne of any duty, liability or responsibility under this Agreement (for all of which Bio-Techne shall remain primarily liable).

 

19.5     Notices. Except as otherwise expressly set forth herein, any notice or other required communication under this Agreement (each, a “Notice”) must be in writing, addressed to the Party’s respective Notice Address, and delivered personally or by globally recognized express delivery service, charges prepaid. A Notice will be deemed delivered and received: (a) in the case of personal delivery, on the date of such delivery; and (b) in the case of a globally recognized express delivery service, five (5) days from transmittal by Sponsor to the address below. Notwithstanding the foregoing, during the pendency of any federally- or state-declared disaster emergency, Notices may be given by email addressed to the email address(es) provided below, provided that a Notice given by email shall only be deemed to have been given upon affirmative acknowledgement of receipt by the recipient (which shall not be deemed to have occurred by the generation of a machine-generated acknowledgment). The “Notice Address” of each Party is as follows:

 

	
			if to Sponsor, to:

				
			Kantaro Biosciences LLC

			1460 Broadway

			New York, New York 10036

			Attn: Chief Operating Officer

			Email: [******]

			 

			Kantaro Biosciences LLC

			c/o Mount Sinai Innovation Partners

			One Gustave L. Levy Place

			Box 1675

			New York, New York 10029-6754

			Attn: President

			Email: [******] 

			

 

46

 

 

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

				
			Icahn School of Medicine at Mount Sinai

			One Gustave L. Levy Place

			Box 1099

			New York, New York 10029-6574

			Attn: General Counsel

			Email: [******] 

			
	 	 
	
			if to Bio-Techne, to:

				
			Bio-Techne Corporation

			Attn: President/CEO

			614 McKinley Place NE

			Minneapolis, MN 55413

			Email: legal@bio-techne.com

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

				
			Attn: Legal

			legal@bio-techne.com

			

 

19.6     Severability and Reformation. If any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, then the remaining provisions of this Agreement will remain in full force and effect. Such invalid or unenforceable provision will be revised by such court to be a valid or enforceable provision that comes as close as permitted by Law to the Parties’ original intent.

 

19.7     Headings and Counterparts. The headings of the articles and sections included in this Agreement are inserted for convenience only and are not intended to affect the meaning or interpretation of this Agreement. This Agreement may be executed in several counterparts, and execution signatures may be exchanged electronically including by facsimile or as scanned e-mail attachments, and signatures so exchanged shall be considered as original for all purposes and taken together will constitute one and the same instrument.

 

19.8     Governing Law. This Agreement will be governed and construed in accordance with the Laws of the State of New York, without giving effect to the conflict of law provisions of any jurisdiction.

 

19.9     Dispute Resolution; Venue. If a dispute arises between the Parties concerning any right or duty under this Agreement, then the Parties will attempt to resolve the dispute through the Escalation Process. If the Parties are unable to resolve the dispute amicably through the Escalation Process, the Parties each hereby irrevocably submit to the exclusive jurisdiction of the state and federal courts located in the borough of Manhattan, New York, New York.

 

19.10     Integration. This Agreement, together with all attached Schedules, and the other Transaction Documents contain the entire agreement between the Parties with respect to the Co-Developed Test Kits, and supersedes all other oral or written representations, statements, or agreements with respect to such subject matter, including but not limited to, the term sheet exchanged prior to this Agreement.

 

47

 

 

 

19.11     Third Party Beneficiaries. Bio-Techne acknowledges and agrees that each provision in this Agreement that names or refers to ISMMS shall be deemed to be have been made for the benefit of ISMMS. ISMMS shall be a third party beneficiary of this Agreement and shall be entitled to enforce the provisions hereof.

 

19.12     Force Majeure. If either Party fails to fulfill its obligations hereunder (other than an obligation for the payment of money), when such failure is due to an act of God, or other circumstances beyond its reasonable control, including but not limited to fire, flood, civil commotion, riot, war (declared and undeclared), revolution, action of a Governmental Authority arising from a pandemic or other public health emergency, or embargoes, then said failure shall be excused for the duration of such event and for such a time thereafter as is reasonable to enable the parties to resume performance under this Agreement, provided however, that in no event shall such time extend for a period of more than one hundred eighty (180) days.

 

19.13     Certain Conventions. Any reference in this Agreement to an Article, Section, subsection, paragraph, clause, or Schedule shall be deemed to be a reference to an Article, Section, subsection, paragraph, clause, or Schedule of or to, as the case may be, this Agreement, unless otherwise indicated. Unless the context of this Agreement otherwise requires, (a) all definitions set forth herein shall be deemed applicable whether the words defined are used herein with initial capital letters in the singular or the plural, (b) the word “will” shall be construed to have the same meaning and effect as the word “shall,” (c) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (d) any reference herein to any Party shall be construed to include the Party’s successors and assigns, (e) the word “notice” shall mean notice in writing (whether or not specifically stated) and shall include notices, consents, approvals and other written communications contemplated under this Agreement, (f) provisions that require that a Party or the Parties “agree,” “consent” or “approve” or the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved minutes or otherwise (but excluding e-mail and instant messaging), (g) references to any specific Law, rule or regulation, or article, section or other division thereof, shall be deemed to include the then-current amendments thereto or any replacement or successor Law, rule or regulation thereof, (h) words of any gender include each other gender, (i) words such as “herein,” “hereof” and “hereunder” refer to this Agreement as a whole and not merely to the particular provision in which such words appear, (j) the words “include,” “includes” and “including” shall be deemed to be followed by the phrase “but not limited to,” “without limitation,” “inter alia” or words of similar import, and (k) “days” shall mean “calendar days.” In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.

 

19.14     Business Day Requirements. In the event that any notice or other action is required to be taken by a Party under this Agreement on a day that is not a business day, then such notice or other action shall be deemed to be required to be taken on the next occurring business day.

 

[Signature Page Follows]

 

 

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

 

	
			SPONSOR:

			 

			Kantaro Biosciences LLC

			 

			 

			 

			By:/S/ Erik Lium

			Name: Erik Lium

			Its: Chairman, Board of Managers

				
			BIO-TECHNE:

			 

			Bio-Techne Corporation

			 

			 

			 

			By:/S/ Chuck Kummeth

			Name: Chuck Kummeth

			Its: Chief Executive Officer

			

 

 

[Signature Page to Development, Supply and Commercialization Agreement]

 

 

 

Schedule 2.1(c)

 

Initial Steering Committee Members; Initial Designated Executives; Initial Sponsor Contact Person for Quality Issues

 

 

 

Initial Steering Committee Members:

 

Sponsor:

 

	 	
			●

				
			[******]

			

	 	
			●

				
			[******]

			

 

Bio-Techne:

 

	 	
			●

				
			[******]

			

	 	
			●

				
			[******]

			

 

 

Initial Designated Executives:

 

Sponsor:

 

	 	
			●

				
			[******]

			

 

Bio-Techne:

 

	 	
			●

				
			[******]

			

 

 

Initial Sponsor Contact Person for Quality Issues:

 

	 	
			●

				
			[******]

			

 

Schedule 2.1(c)

1

 

 

Schedule 2.1(e)

 

Initial Working Groups

 

	 	
			1.

				
			Commercial

			

	 	
			2.

				
			Logistics

			

	 	
			3.

				
			Customer Service

			

	 	
			4.

				
			Product Definition

			

	 	
			5.

				
			Regulatory and Quality

			

	 	
			6.

				
			Data Communications and IT

			

	 	
			7.

				
			Government Contracting

			

 

Schedule 2.1(e)

1

 

 

Schedule 3.1(a)

 

Specifications and Performance Standards

 

[To be supplied; Parties to agree on schedule as soon as practicable]

 

Schedule 3.1(a)

1

 

 

Schedule 5.2(a)

 

Manufacturing Milestones

 

[******]

 

 

Schedule 5.2(a)

1

 

 

Schedule 6.3(a)

 

Sponsor Licensed Marks and Design Specifications for Usage

 

 

 

	
			Mark

				
			Registration Number

			 

				
			Classes of Goods/Services

			
	
			MOUNT SINAI

				
			5,298,636

				
			41, 42, 44

			
	
			MOUNT SINAI

				
			5,234,607

				
			36, 41, 42, 44, 45

			
	
			MOUNT SINAI and Mountain Design

			

				
			5,234,608

				
			36, 41, 42, 44, 45

			
	
			MOUNTAIN Design

			

				
			4,558,806

				
			36, 41, 42, 44, 45

			

 

 

Brand and Style Guidelines. The Marks shall be used in accordance with ISMMS’s Brand Guidelines (the “Brand Guidelines”) published on www.mountsinaibrandcenter.org (the “Site”), which may be updated by ISMMS from time to time in its sole discretion. Such changes to the Brand Guidelines will be posted to the Site.

 

Schedule 6.3(a)

1

 

 

Schedule 6.3(k)

 

Bio-Techne Licensed Marks and Design Specifications for Usage

 

 

 

	
			Mark

				
			Registration Number

			 

				
			Classes of Goods/Services

			
	
			R&D SYSTEMS

				
			3,119,257

				
			001, 005

			
	
			BIO-TECHNE

				
			4,692,993

				
			001, 009

			
	
			

				
			4,842,997

				
			001

			
	
			

				
			4,932,928

				
			009

			

 

Schedule 6.3(k)

1

 

 

Schedule 17.2

 

Insurance

 

In accordance with the requirements of Section 17.2, the Parties shall maintain, at their own expense, in full force and effect the following insurance:

 

	 	
			●

				
			Commercial general liability insurance with a liability limit of [******] per occurrence and [******] in the annual aggregate and naming Sponsor and ISMMS as an additional insured covering personal and advertising injury, bodily injury and property damage.

			

 

	 	
			●

				
			Product liability insurance coverage with limits of [******] per claim and [******] in the aggregate covering products, completed operations, bodily injury and property damage. Bio-Techne’s coverage shall be written on a “claims made” basis and such insurance shall name, to the fullest extent permitted by Law, the Sponsor Indemnitees as additional insureds.

			

 

	 	
			●

				
			Life Sciences Errors & Omissions insurance with limits of [******] liability per claim and [******] in the aggregate for bodily injury, property damage and financial injury. Bio-Techne’s insurance shall name, to the fullest extent permitted by Law, the Sponsor Indemnitees as additional insureds.

			

 

	 	
			●

				
			Workers’ Compensation Insurance as required by laws and regulations applicable to Bio-Techne and covering any employees performing Bio-Techne’s obligations hereunder. 

			

 

	 	
			●

				
			Employers’ Liability Insurance with a limit of [******] protecting against liability for employee bodily injury arising out of an employee/employer relationship.

			

 

	 	
			●

				
			System Security/Cyber Liability insurance with limits of [******] per occurrence and [******] in the aggregate covering damages and expenses related to breaches of data security from Bio-Techne’s obligations hereunder. 

			

 

	 	
			●

				
			Bio-Techne to secure transit/warehouse insurance.

			

 

Schedule 17.2

1Exhibit 4.1

 

 

 

 

HEALTHCARE TRUST, INC.

 

and

 

COMPUTERSHARE TRUST COMPANY, N.A.

 

(Rights Agent)

 

Rights Agreement

 

Dated as of May 18, 2020

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	1.	Definitions	1
	2.	Appointment of Rights Agent	9
	3.	Issue of Right Certificates.	10
	4.	Form of Right Certificates	12
	5.	Countersignature and Registration	13
	6.	Transfer, Split-Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates.	13
	7.	Exercise of Rights; Purchase Price; Expiration Date of Rights.	14
	8.	Cancellation and Destruction of Right Certificates	16
	9.	Status and Availability of Common Shares.	16
	10.	Common Shares Record Date	18
	11.	Adjustment of Purchase Price, Number of Shares or Number of Rights.	18
	12.	Certificate of Adjustment	24
	13.	Consolidation, Merger, Sale or Transfer of Assets or Earning Power.	24
	14.	Fractional Rights and Fractional Shares.	26
	15.	Rights of Action	27
	16.	Agreement of Right Holders	27
	17.	Right Holder Not Deemed a Stockholder	28
	18.	Concerning the Rights Agent	28
	19.	Merger or Consolidation or Change of Name of Rights Agent	29
	20.	Duties of Rights Agent	29
	21.	Change of Rights Agent	32
	22.	Issuance of New Right Certificates	33
	23.	Redemption.	33
	24.	Exchange.	34
	25.	Notice of Certain Events.	35
	26.	Notices	36
	27.	Supplements and Amendments	37
	28.	Successors	37
	29.	Benefits of This Agreement	37
	30.	Severability	38

 

    	 	 i	 

     

    

 

	31.	Governing Law	38
	32.	Counterparts	38
	33.	Descriptive Headings	38
	34.	Administration	38
	35.	Force Majeure	38
	36.	REIT Status	39
	37.	Further Assurance by Company	39

 

	EXHIBIT A – Form of Right Certificate	A-1
	 	 
	EXHIBIT B – Summary of Rights to Purchase Preferred Shares	B-1

 

    	 	 ii	 

     

    

 

RIGHTS AGREEMENT

 

This Rights Agreement
(this “Agreement”), dated as of May 18, 2020, is made between Healthcare Trust, Inc., a Maryland corporation
(the “Company”), and Computershare Trust Company, N.A., a federally chartered trust company (the “Rights
Agent”).

 

The Board of Directors
of the Company intends to (a) authorize and declare a dividend of one common share purchase right (a “Right”)
for and on each share of common stock, par value $0.01 per share, of the Company (“Common Share”) outstanding
on the Close of Business (as defined below) on a date to be set by the Board of Directors in its discretion (the “Record
Date”) and (b) authorize the issuance of one Right (subject to adjustment) with respect to (A) each additional Common
Share issued by the Company between the Record Date and the earliest of (i) the Close of Business on the Distribution Date, (ii)
the Close of Business on the Redemption Date or (iii) the Close of Business on the Final Expiration Date (as all are defined below),
and (B) additional Common Shares that shall become outstanding after the Distribution Date as provided in Section 22 of this Agreement,
each Right initially representing the right to purchase one Common Share, subject to adjustment, upon the terms and subject to
the conditions below.

 

Accordingly, in consideration
of the premises and the mutual agreements herein set forth, the parties agree as follows:

 

		1.	Definitions.  For purposes of this Agreement, the following terms have the meanings indicated:

 

1.1             
“Acquiring Person” means any Person (other than an Exempt Person or a Passive Investor) who or which,
together with all Affiliates and Associates of the Person, is or becomes on or after the execution of this Agreement the Beneficial
Owner of 2.0% or more of the Common Shares then outstanding, but shall not include (i) the Company, (ii) any Subsidiary of the
Company, (iii) any employee benefit plan of the Company or any Subsidiary of the Company or the Company’s advisor, Healthcare
Trust Advisors, LLC (the “Advisor”), (iv) any entity or trustee holding (or acting in a fiduciary capacity in
respect of) Common Shares for or pursuant to the terms of any employee benefit plan or for the purpose of funding any plan or funding
other employee benefits for employees of the Company, any Subsidiary of the Company or the Advisor, (v) any Person who has been
permitted by the Board of Directors, or a committee thereof, to Beneficially Own 2.0% or more of the Common Shares then outstanding
by means of a written waiver or agreement, provided, that (x) the Person does not Beneficially Own Common Shares above the
permitted percentage and complies in all material respects with the terms and the conditions of the waiver or agreement, and (y)
the waiver or agreement remains in full force and effect, and (vi) any Person who or which, upon the execution of this Agreement,
is a Beneficial Owner of 2.0% or more of the Common Shares then outstanding, other than a Person who or which is not an Affiliate
or Associate of the Beneficial Owner upon the execution of this Agreement and who or which subsequently becomes an Affiliate or
Associate of the Beneficial Owner without the prior written approval of the Board of Directors (a “Grandfathered Stockholder”);
provided, however, that if a Grandfathered Stockholder becomes, after execution of this Agreement, the Beneficial
Owner of any additional Common Shares (in the case of any Person in clause (v), any additional Common Shares above the percentage
permitted by the Board of Directors, or a committee thereof) (other than Common Shares acquired solely as a result of corporate
action of the Company not caused, directly or indirectly, by the Person) at any time such that the Grandfathered Stockholder is
or thereby becomes the Beneficial Owner of 2.0% or more of the Common Shares then outstanding (or any other percentage as would
otherwise result in the Person becoming an Acquiring Person), then the Grandfathered Stockholder shall be deemed an Acquiring Person;
provided, further, that upon the first decrease of a Grandfathered Stockholder’s Beneficial Ownership below 2.0%,
the Grandfathered Stockholder shall no longer be considered a Grandfathered Stockholder and this clause (vi) shall have no further
force or effect with respect to the Grandfathered Stockholder; and provided, further, that for the purposes of calculating
an Acquiring Person’s Beneficial Ownership percentage, Common Shares that the Acquiring Person, its Affiliate(s) or Associate(s)
acquire(s) or attempt(s) to acquire in violation of Section 5.7 of the Charter, even if transferred to a trust, shall be included
in the numerator for purposes of the calculation and deemed as Beneficially Owned by the Acquiring Person or its Affiliate(s) or
Associate(s).

 

    	 	1	 

     

    

 

Notwithstanding the
foregoing, no Person shall become an Acquiring Person as the result of the Company acquiring Common Shares by repurchase, tender
or otherwise which, by reducing the number of shares outstanding, increases the proportionate number of Common Shares Beneficially
Owned by the Person to 2.0% or more of the then outstanding Common Shares (or any other percentage as would otherwise result in
the Person becoming an Acquiring Person); provided, however, that if a Person would, but for the provisions of this
paragraph, become an Acquiring Person by reason of an acquisition of Common Shares by the Company and shall, after the share acquisition
by the Company, become the Beneficial Owner of any additional Common Shares at any time such that the Person is or thereby becomes
the Beneficial Owner of 2.0% or more of the Common Shares then outstanding (or any other percentage as would otherwise result in
the Person becoming an Acquiring Person) (other than Common Shares acquired solely as a result of corporate action of the Company
not caused, directly or indirectly, by the Person), then the Person shall be deemed to be an Acquiring Person.

 

In the event the Common
Shares are listed on NYSE or NASDAQ, notwithstanding the foregoing paragraphs, effective upon the commencement of trading, all
references to the 2.0% threshold set forth in this Section 1.1 shall be deemed thereafter to refer to an increased threshold of
4.9% and the Beneficial Ownership of securities of the Company at the commencement of trading shall be used to determine whether
a Person is a Grandfathered Stockholder under the increased threshold.

 

Notwithstanding the
foregoing paragraphs of this Section 1.1, if the Board of Directors, or a committee thereof, determines that a Person who would
otherwise be an Acquiring Person, has become an Acquiring Person inadvertently (including, without limitation, because (A) the
Person establishes that it was unaware that it Beneficially Owned that number of Common Shares that would otherwise cause the Person
to be an “Acquiring Person” or (B) the Person establishes that it was aware of the extent of its Beneficial
Ownership of Common Shares but had no actual knowledge of the consequences of its Beneficial Ownership under this Agreement) and
without any intention of obtaining, changing or influencing control of the Company, and the Person divests as promptly as practicable,
as determined by the Board of Directors, or a committee thereof, a sufficient number of Common Shares so that the Person would
no longer be an Acquiring Person, then the Person shall not be deemed to have become an Acquiring Person for any purpose of this
Agreement. Notwithstanding the foregoing, if a bona fide swaps or derivatives dealer who would otherwise be an “Acquiring
Person” has become an Acquiring Person as a result of its actions in the ordinary course of its business that the Board of
Directors, or a committee thereof, determines, in its sole discretion, were taken without the intent or effect of evading or assisting
any other Person to evade the purposes and intent of this Agreement, or otherwise seeking to control or influence the management
or policies of the Company, then, and unless and until the Board of Directors shall otherwise determine, the Person shall not be
deemed to be an “Acquiring Person” for any purpose of this Agreement.

 

    	 	2	 

     

    

 

1.2             
A Person shall be deemed to be “Acting in Concert” with another Person if the Person acts (whether or
not pursuant to an express agreement, arrangement or understanding) in concert or in parallel with another Person, or towards a
common goal with another Person, relating to (i) acquiring, holding, voting or disposing of voting securities of the Company or
(ii) changing or influencing the control of the Company or in connection with or as a participant in any transaction having that
purpose or effect, where (x) each Person knows of the other Person’s conduct or intent and (y) at least one additional factor
supports a determination by the Board of Directors that the Persons intended to act in concert or in parallel, including, without
limitation, exchanging information, attending meetings, conducting discussions, or making or soliciting invitations to act in concert
or in parallel. A Person who is Acting in Concert with another Person shall also be deemed to be Acting in Concert with any third
Person who is also Acting in Concert with the other Person. Notwithstanding the foregoing, no Person shall be deemed to be Acting
in Concert with another Person solely as a result of (i) making or receiving a solicitation of, or granting or receiving, revocable
proxies or consents given in response to a public proxy or consent solicitation made pursuant to, and in accordance with, Section
14(a) of the Exchange Act by means of a proxy or solicitation statement filed on Schedule 14A, or (ii) soliciting or being solicited
for, or tendering or receiving tenders of securities in a public tender or exchange offer made pursuant to, and in accordance with,
Section 14(d) of the Exchange Act by means of a tender offer statement filed on Schedule TO.

 

1.3             
“Adjustment Shares” shall have the meaning set forth in Section 11.1.2 hereof.

 

1.4             
“Affiliate” shall mean a Person that directly, or indirectly through one or more intermediaries, controls,
or is controlled by, or is under common control with, the Person specified.

 

1.5             
“Associate” shall mean, when used to indicate a relationship with any Person, (i) any corporation or
organization (other than the registrant or a majority-owned subsidiary of the Person) of which the Person is an officer or partner
or is, directly or indirectly, the Beneficial Owner of 5.0% or more of any class of equity securities, (ii) any trust or other
estate in which the Person has a substantial beneficial interest or as to which the Person serves as trustee or in a similar fiduciary
capacity, and (iii) any relative or spouse of the Person, or any relative of the spouse, who has the same home as the Person or
who is a director or officer of the Person or any of its parents or subsidiaries.

 

1.6             
A Person shall be deemed the “Beneficial Owner” of, shall be deemed to have “Beneficial Ownership”
of and shall be deemed to “Beneficially Own” any securities:

 

    	 	3	 

     

    

 

1.6.1       
which the Person or any of the Person’s Affiliates or Associates beneficially owns, directly or indirectly, within
the meaning of Rule 13d-3 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement;

 

1.6.2       
which the Person or any of the Person’s Affiliates or Associates has (i) the right or the obligation to acquire (whether
the right is exercisable, or the obligation is required to be performed, immediately or only after the passage of time or upon
the satisfaction of conditions) pursuant to any agreement, arrangement or understanding (other than customary agreements with and
between underwriters and selling group members with respect to a bona fide public offering of securities), written or otherwise,
or upon the exercise of conversion rights, exchange rights, rights (other than the Rights), warrants or options, or otherwise;
provided, however, that a Person shall not be deemed to be the Beneficial Owner of, or to Beneficially Own, (w) securities
tendered pursuant to a tender or exchange offer made pursuant to, and in accordance with, the applicable rules and regulations
promulgated under the Exchange Act by or on behalf of the Person or any of the Person’s Affiliates or Associates until the
tendered securities are accepted for purchase or exchange, (x) securities which the Person has a right to acquire upon the exercise
of Rights at any time prior to the time that any Person becomes an Acquiring Person, (y) securities issuable upon the exercise
of Rights from and after the time that any other Person becomes an Acquiring Person if the Rights were acquired by the first Person
or any of the first Person’s Affiliates or Associates prior to the Distribution Date or pursuant to Section 3.1 or Section
22 hereof (“Original Rights”) or pursuant to Section 11.9 or Section 11.14 with respect to an adjustment to
Original Rights, or (z) securities which the Person or any of the Person’s Affiliates or Associates may acquire, does or
do acquire or may be deemed to have the right to acquire, pursuant to any merger or other acquisition agreement between the Company
and the Person (or one or more of the Person’s Affiliates or Associates) if the acquisition agreement has been approved by
the Board of Directors prior to the Person’s becoming an Acquiring Person; or (ii) the right to vote pursuant to any agreement,
arrangement or understanding; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to
Beneficially Own, any security if the agreement, arrangement or understanding to vote the security (A) arises solely from a revocable
proxy or consent given to the Person in response to a public proxy or consent solicitation made pursuant to, and in accordance
with, the applicable rules and regulations promulgated under the Exchange Act and (B) is not also then reportable on Schedule 13D
under the Exchange Act (or any comparable or successor report);

 

1.6.3       
which are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate of the other Person)
with which the first Person or any of the first Person’s Affiliates or Associates or any other Person (or any Affiliate or
Associate of the other Person) with whom the first Person (or any Affiliates or Associates of the first Person) is Acting in Concert,
has any agreement, arrangement or understanding, whether or not in writing, for the purpose of acquiring, holding, voting (except
pursuant to a revocable proxy as described in clause (ii) of Section 1.6.2) or disposing of any voting securities of the Company;
and

 

1.6.4       
which are the subject of, or the reference securities for, or that underlie, any Derivative Interest of the Person or any
of the Person’s Affiliates or Associates, with the number of Common Shares deemed Beneficially Owned being the notional or
other number of Common Shares specified in the documents evidencing the Derivative Interest as being subject to be acquired upon
the exercise or settlement of the Derivative Interest or as the basis upon which the value or settlement amount of the Derivative
Interest is to be calculated in whole or in part or, if the number of Common Shares is not specified in the applicable documents,
or as determined by the Board of Directors; provided, that a Unitholder shall not be deemed the Beneficial Owner of, or
to Beneficially Own, securities which may be issued to the Unitholder upon redemption of the Unitholder’s Partnership Units
pursuant to the terms and conditions of the Operating Partnership Agreement, unless the Unitholder actually receives the securities
in exchange therefor.

 

    	 	4	 

     

    

 

Notwithstanding anything in this definition
of Beneficial Owner to the contrary, the phrase “then outstanding,” when used with reference to a Person’s
beneficial ownership of securities of the Company, means the number of securities then issued and outstanding together with the
number of securities not then actually issued and outstanding which the Person would be deemed to beneficially own hereunder, but
the number of securities not outstanding that the Person is otherwise deemed to beneficially own for purposes of this Agreement
shall not be included for the purpose of computing the percentage of the outstanding securities beneficially owned by any other
Person (unless the other Person is also deemed to beneficially own for purposes of this Agreement the securities not outstanding).

 

1.7             
“Board of Directors” means the members of the Company’s board of directors.

 

1.8             
“Book Entry” shall mean an uncertificated share of Common Stock registered in book entry form by notation
in accounts reflecting the ownership of the Common Shares.

 

1.9             
“Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions in
the state of New York are authorized or obligated by law or executive order to close.

 

1.10         
“Bylaws” means the Company’s Amended and Restated Bylaws, dated as of March 15, 2018, as amended
or restated from time to time.

 

1.11         
“Cash Consideration” means the “Cash Amount” as defined in the Operating Partnership Agreement.

 

1.12         
“Charter” means the charter of the Company.

 

1.13         
“Close of Business” means 5:00 p.m., New York time, on any given date; provided, however,
that if the applicable date is not a Business Day, it means 5:00 p.m., New York time, on the next succeeding Business Day.

 

1.14         
“Common Shares” has the meaning set forth in the second introductory paragraph of this Agreement.

 

1.15         
“Common Stock” means common stock, par value $0.01 per share, of the Company. “Common Stock”
when used with reference to any Person other than the Company shall mean the capital stock (or equity interest) with the greatest
voting power of such other Person or, if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately
control such first-mentioned Person.

 

    	 	5	 

     

    

 

1.16         
“Common Stock Equivalents” has the meaning set forth in Section 11.1.3.

 

1.17         
“Company” has the meaning set forth in the introductory paragraph of this Agreement.

 

1.18         
“Continuing Director” means any member of the Board of Directors (while the Person is a member of the
Board of Directors) who is not an Acquiring Person, or an Affiliate or Associate of an Acquiring Person, or a representative or
nominee of an Acquiring Person or of any Affiliate or Associate of an Acquiring Person, and who either (i) was a member of the
Board of Directors immediately prior to the date of this Agreement or (ii) on or subsequent to the date of this Agreement became
a member of the Board and whose nomination for election or election to the Board of Directors is recommended or approved by a majority
of the Continuing Directors.

 

1.19         
“Current Per Share Market Price” has the meaning set forth in Sections 11.4.1 and 11.4.2.

 

1.20         
“Current Value” has the meaning set forth in Section 11.1.3.

 

1.21         
“Derivative Interest” shall mean any derivative securities (as defined under Rule 16a-1 under the Exchange
Act) that increase in value as the value of the underlying equity increases, including, but not limited to, a long convertible
security, a long call option and a short put option position, in each case, regardless of whether (x) the interest conveys any
voting rights in the underlying security, (y) the interest is required to be, or is capable of being, settled through delivery
of the underlying security or (z) transactions hedge the economic effect of the interest.

 

1.22         
“Distribution Date” has the meaning set forth in Section 3.1.

 

1.23         
“Earning Power” has the meaning set forth in Section 13.4.

 

1.24         
“Equivalent Common Shares” has the meaning set forth in Section 11.2.

 

1.25         
“Estimated Per-Share NAV of Common Stock” has the meaning set forth in Section 11.4.2.

 

1.26         
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

1.27         
“Exchange Factor” has the meaning ascribed to it in the Operating Partnership Agreement.

 

1.28         
“Exchange Property” has the meaning set forth in Section 24.6.

 

1.29         
“Exchange Ratio” has the meaning set forth in Section 24.1.

 

1.30         
“Exchange Recipients” has the meaning set forth in Section 24.6.

 

1.31         
“Exempt Person” shall mean any Person that the Board of Directors, or a committee thereof, determines
is exempt from this Agreement; provided that no Person shall qualify as an Exempt Person unless the determination is made,
prior to the time any Person becomes an Acquiring Person; provided further that any Person will cease to be an Exempt Person
if the Board of Directors, or a committee thereof, makes a contrary determination with respect to the Person.

 

    	 	6	 

     

    

 

1.32         
“Expiration Date” has the meaning set forth in Section 7.1.

 

1.33         
“Final Expiration Date” means the date upon which the Rights expire, which is, unless the Rights are
previously redeemed, exchanged or terminated, the earlier of May 18, 2023 or, if the Common Shares are listed on NYSE or NASDAQ,
364 days from the commencement of trading. The Rights Agent will not be deemed to have any knowledge of the Final Expiration Date
unless and until it has been notified that the Final Expiration Date has occurred.

 

1.34         
“Independent Directors” shall mean members of the Board who are not officers of the Company or any of
its Subsidiaries and who are not Acquiring Persons or representatives, nominees, Affiliates or Associates of Acquiring Persons.

 

1.35         
“MGCL” means the Maryland General Corporation Law.

 

1.36         
“NASDAQ” means The NASDAQ Stock Market LLC.

 

1.37         
“NYSE” means the New York Stock Exchange, Inc.

 

1.38         
“Operating Partnership” means Healthcare Trust Operating Partnership, L.P., a Delaware limited partnership.

 

1.39         
“Operating Partnership Agreement” means the Agreement of Limited Partnership of the Operating Partnership,
dated as of February 14, 2013, as amended from time to time.

 

1.40         
“Ownership Statements” means, with respect to any Book Entry Common Share, current ownership statements
issued to the record holders thereof in lieu of a certificate representing the Common Shares.

 

1.41         
“Partnership Unit” has the meaning set forth in Section 3.4 hereof.

 

1.42         
“Partnership Unit Redemption Rights” means the rights that a Unitholder has to require the Operating
Partnership to redeem from time to time part or all of the Unitholder’s Partnership Units for the consideration set forth
in the Operating Partnership Agreement.

 

1.43         
“Passive Investor” shall mean a Person, excluding any Person who makes a tender offer, mini or otherwise,
who (i) is the Beneficial Owner of Common Shares and either (a) has a Schedule 13G on file with the Securities and Exchange Commission
pursuant to the requirements of Rule 13d-1(b) or (c) under the Exchange Act with respect to its holdings (and does not subsequently
convert such filing to a Schedule 13D) or (b) has a Schedule 13D on file with the Securities and Exchange Commission and either
has stated in its filing that it has no plan or proposal that relates to or would result in any of the actions or events set forth
in Item 4 of Schedule 13D or otherwise has no intent to seek control of the Company or has certified to the Company that it has
no such plan, proposal or intent (other than by voting the shares of the Common Stock over which such Person has voting power),
(ii) acquires Beneficial Ownership of Common Shares pursuant to trading activities undertaken in the ordinary course of the Person’s
business and not with the purpose or the effect, either alone or Acting in Concert with any Person, of exercising the power to
direct or cause the direction of the management and policies of the Company or of otherwise changing or influencing the control
of the Company, nor in connection with or as a participant in any transaction having such purpose or effect, including any transaction
subject to Rule 13d-3(b) of the Exchange Act, and (iii) in the case of clause (i)(b) only, does not amend either its Schedule 13D
on file or its certification to the Company in a manner inconsistent with its representation that it has no plan or proposal that
relates to or would result in any of the actions or events set forth in Item 4 of Schedule 13D or otherwise has no intent to seek
control of the Company (other than by voting the Common Shares over which such Person has voting power). For the avoidance of any
doubt, in the event a Person ceases to be a Passive Investor, the Person will be an “Acquiring Person” if the
Person, together with its Affiliates and Associates, Beneficial Ownership exceeds the threshold set forth in Section 1.1 above
regardless of whether the Person acquired Common Shares while the Person was a Passive Investor.

 

    	 	7	 

     

    

 

1.44         
“Permitted Offer” shall mean a tender or exchange offer that is for all outstanding Common Shares at
a price and on terms determined, prior to the purchase of shares under such tender or exchange offer, by at least a majority of
the Board of Directors, to be (i) fair to the Company’s stockholders and not inadequate (taking into account all factors
that such Board of Directors deems relevant, including, without limitation, prices which could reasonably be achieved if the Company
or its assets were sold on an orderly basis designed to realize maximum value) and (ii) otherwise in the best interests of the
Company.

 

1.45         
“Person” means any individual, firm, corporation, partnership, limited partnership, limited liability
partnership, business trust, limited liability company, unincorporated association or other entity, and shall include any successor
(by merger or otherwise) of the applicable entity.

 

1.46         
“Purchase Price” has the meaning set forth in Section 7.2.

 

1.47         
“Record Date” has the meaning set forth in the second introductory paragraph of this Agreement.

 

1.48         
“Redemption Date” has the meaning set forth in Section 23.2.

 

1.49         
“Redemption Price” has the meaning set forth in Section 23.1.

 

1.50         
“REIT” shall mean a real estate investment trust under the Internal Revenue Code of 1986, as amended.

 

1.51         
“Right” has the meaning set forth in the second introductory paragraph of this Agreement.

 

1.52         
“Right Certificate” means a certificate representing a Right in substantially the form of Exhibit
A hereto.

 

    	 	8	 

     

    

 

1.53         
“Rights Agent” has the meaning set forth in the introductory paragraph of this Agreement.

 

1.54         
“Section 11.1.2 Event” has the meaning set forth in Section 11.1.2 hereof.

 

1.55         
“Section 13 Event” means any event described in Section 13.1 hereof.

 

1.56         
“Section 23.1 Event” means the event described in Section 23.3 hereof.

 

1.57         
“Securities Act” means the Securities Act of 1933, as amended.

 

1.58         
“Share Consideration” means “Common Stock Amount” as defined in the Operating Partnership
Agreement.

 

1.59         
“Spread” has the meaning set forth in Section 11.1.3.

 

1.60         
“Stock Acquisition Date” means the earlier of (i) the date of the public announcement (which, for purposes
of this definition, shall include, without limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by the Company
or a Person that results in the Person being an Acquiring Person hereunder or (ii) the date that a majority of the Board of Directors
shall become aware of the existence of an Acquiring Person.

 

1.61         
“Subsidiary” of any Person means any corporation or other entity of which securities or other ownership
interest having ordinary voting power sufficient to elect a majority of the board of directors or other person or body performing
similar functions are beneficially owned, directly or indirectly, by the Person and any corporation or other entity that is otherwise
controlled by the Person.

 

1.62         
“Summary of Rights” means the Summary of Rights to Purchase Common Shares in substantially the form of
Exhibit B hereto.

 

1.63         
“Trading Day” means a day on which the principal national securities exchange on which a security is
listed or admitted to trading is open for the transaction of business or, if a security is not listed or admitted to trading on
any national securities exchange, a Business Day.

 

1.64         
“Triggering Event” shall mean any Section 11.1.2 Event or any Section 13 Event.

 

1.65         
“Unitholders” has the meaning set forth in Section 3.4 hereof.

 

		2.	Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as agent
for the Company in accordance with the express terms and conditions hereof (and no implied terms or conditions), and the Rights
Agent hereby accepts the Company’s appointment. The Company may from time to time appoint any co-Rights Agents as it may
deem necessary or desirable, upon ten (10) calendar days’ prior written notice to the Rights Agent. In the event the Company
appoints one or more co-Rights Agents, the respective duties of the Rights Agent and any co-Rights Agents under the provisions
of this Agreement shall be as the Company shall reasonably determine and the Company shall notify in writing, the Rights Agent
and any co-Rights Agent of their respective duties. The Rights Agent shall have no duty to supervise, and shall in no event be
liable for, the acts or omissions of any co-Rights Agent.

 

    	 	9	 

     

    

 

		3.	Issue of Right Certificates.

 

3.1             
Until the Close of Business on the tenth (10th) Business Day after the Stock Acquisition Date or, in the event
the Board of Directors determines on or before the tenth (10th) Business Day to effect an exchange in accordance with
Section 24 and determines in accordance with Section 24.6 that a later date is advisable, then the later date determined by the
Board (including any date which is after the date of this Agreement and prior to the issuance of the Rights; the date being herein
referred to as the “Distribution Date,” provided, however, that the Distribution Date shall in
no event be prior to the Record Date; provided, further, that the Board of Directors may determine to delay the occurrence
of the Distribution Date until the Board of Directors determines based on the advice of counsel that the exercise or exercisability
of the Right would not result in the Company failing to qualify as a REIT), (x) the Rights will be represented (subject to the
provisions of Section 3.2) by the certificates for Common Shares (or by Book Entry Common Shares) registered in the names of the
holders thereof (which certificates shall also be deemed to be Right Certificates) and not by separate Right Certificates, and
(y) the Rights Certificates and the right to receive Right Certificates will be transferable only in connection with the transfer
of Common Shares. As soon as practicable after the Distribution Date, the Company will prepare and execute, and, at the request
of the Company, the Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if
so requested and provided with all necessary information and documents, will, at the expense of the Company, send) by first-class,
insured, postage-prepaid mail, to each record holder of Common Stock as of the Close of Business on the Distribution Date (other
than any Acquiring Person or any Associate or Affiliate of an Acquiring Person), at the address of each record holder shown on
the records of the Company, a Right Certificate, in substantially the form of Exhibit A hereto, representing one Right for
each Common Share so held, subject to adjustment as provided herein; provided, however, that notwithstanding anything to the contrary
herein, the Company may choose to use book entry in lieu of physical certificates, in which case “Rights Certificates”
shall be deemed to mean the uncertificated book entry representing the related Rights. In the event that an adjustment in the number
of Rights per Common Share has been made pursuant to Section 11.9 hereof, at the time of distribution of the Rights Certificates,
the Company shall make the necessary and appropriate rounding adjustments (in accordance with Section 14.1 hereof) so that Rights
Certificates representing only whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights. As of
and after the Distribution Date, the Rights will be represented solely by the Right Certificates. The Company shall promptly notify
the Rights Agent in writing upon the occurrence of the Distribution Date. Until the written notice is received by the Rights Agent,
the Rights Agent may presume conclusively for all purposes that the Distribution Date has not occurred.

 

3.2             
After the Record Date, or as soon as practicable thereafter, and before the Expiration Date, the Company will (directly
or, at the expense of the Company, through the Rights Agent or its transfer agent if the Rights Agent or transfer agent is so directed
by the Company and provided with all necessary information and documents) make available a copy of the Summary of Rights to any
Rights holder who so requests. With respect to certificates representing Common Shares (or Book Entry Common Shares) outstanding
as of the Record Date, until the Distribution Date, the Rights will be represented by these certificates (or such Book Entry Common
Shares) registered in the names of the holders thereof together with the Summary of Rights. Until the Distribution Date (or if
earlier, the Expiration Date), the surrender for transfer of any certificate representing Common Shares (or the transfer of any
Book Entry Common Shares) outstanding on the Record Date, with or without a copy of the Summary of Rights, shall also constitute
the transfer of the Rights associated with the Common Shares represented thereby. With respect to Book Entry Common Shares outstanding
as of the Record Date, until the Distribution Date, the Rights shall be represented by the balances indicated in the Book Entry
account system of the transfer agent for the Common Shares.

 

    	 	10	 

     

    

 

3.3             
If certificates for Common Shares are issued (including, without limitation, Common Shares acquired by the Company as noted
in this Section 3.3) after the Record Date but prior to the earliest of (i) the Close of Business on the Distribution Date, (ii)
the Redemption Date or (iii) the Close of Business on the Final Expiration Date, these certificates shall have impressed on, printed
on, written on or otherwise affixed to them, in addition to any legend required by the MGCL, Charter or Bylaws, a legend in substantially
the following form:

 

This certificate also represents
and entitles the holder hereof to certain Rights as set forth in a Rights Agreement between Healthcare Trust, Inc. and Computershare
Trust Company, N.A., as Rights Agent (or any successor Rights Agent), dated as of May 18, 2020, as it may from time to time be
amended or supplemented pursuant to its terms (the “Rights Agreement”), the terms of which are hereby incorporated
herein by reference and a copy of which is on file at the principal executive offices of Healthcare Trust, Inc. Under certain circumstances,
as set forth in the Rights Agreement, the Rights will be represented by separate certificates and will no longer be represented
by this certificate. Healthcare Trust, Inc. will mail to the holder of this certificate a copy of the Rights Agreement without
charge after receipt of a written request therefor. Under certain circumstances, as set forth in the Rights Agreement, Rights that
are or were acquired or Beneficially Owned (as defined in the Rights Agreement) by any Person (as defined in the Rights Agreement)
who becomes an Acquiring Person (as defined in the Rights Agreement) or an Associate or Affiliate (each as defined in the Rights
Agreement) thereof, among others, become null and void and will no longer be transferable.

 

With respect to any Book Entry Common Shares,
the foregoing legend shall be included in the Ownership Statement in respect of the Common Stock or in a notice to the record holder
of these shares in accordance with applicable law. With respect to certificates containing the foregoing legend, or any Ownership
Statement or notice containing the foregoing legend delivered to holders of Book Entry Common Shares, until the earliest of the
Distribution Date, the Redemption Date or the Final Expiration Date, the Rights associated with the Common Stock represented by
the certificates or Book Entry Common Shares shall be represented by the certificates or Book Entry Common Shares (including any
Ownership Statement) alone, and the surrender for transfer of any such certificate or the transfer of any Book Entry Common Shares
shall also constitute the transfer of the Rights associated with the Common Stock represented thereby. If the Company purchases
or acquires any Common Shares after the Record Date but prior to the Close of Business on the Distribution Date, any Rights associated
with these Common Shares shall be deemed canceled and retired so that the Company shall not be entitled to exercise any Rights
associated with the Common Shares which are no longer outstanding.

 

    	 	11	 

     

    

 

Notwithstanding this Section 3.3, neither
the omission of a legend nor the failure to deliver the notice of legend required hereby shall affect the enforceability of any
part of this Agreement or the rights of any holder of the Rights.

 

3.4             
Prior to the Distribution Date, holders (other than the Company) (“Unitholders”) of partnership units
of the Operating Partnership designated as “OP Units” (“Partnership Units”) shall not be deemed
as holding any Rights solely by reason of the Unitholders holding any Partnership Unit. On the Distribution Date, proper provision
shall be made by the Company in order to provide each Unitholder with the number of Rights, represented by Right Certificates,
as would be issued to the applicable Unitholder as if (i) the Unitholder had exercised its Partnership Unit Redemption Rights with
respect to all Partnership Units held by the Unitholder immediately prior to the Distribution Date and (ii) the Company had elected
to satisfy the Partnership Unit Redemption Rights by paying the Unitholder the Share Consideration (rather than the Cash Consideration)
(applying an Exchange Factor unaffected by the issuance, exercise or exchange of any Rights) immediately prior to the Distribution
Date pursuant to the terms and conditions of the Partnership Agreement. Each Unitholder shall thereafter have all of the rights,
privileges, benefits and obligations with respect to the Rights as are provided for herein with respect to holders of Common Shares.

 

		4.	Form of Right Certificates.

 

4.1             
The Right Certificates (and the forms of election to purchase Common Shares and of assignment to be printed on the reverse
thereof) shall be substantially the same as set forth on Exhibit A hereto and may have any marks of identification or designation
and any legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with
the provisions of this Agreement (but which do not affect the rights, duties, liabilities or responsibilities of the Rights Agent),
or as may be required to comply with any applicable law or with any applicable rule or regulation made pursuant thereto or with
any applicable rule or regulation of any stock exchange or quotation system on which the Rights may from time to time be listed
or the Financial Industry Regulatory Authority, or to conform to usage. Subject to the other provisions of this Agreement, the
Right Certificates, whenever distributed, shall be dated as of the Record Date and shall entitle the holders thereof to purchase
the number of Common Shares as shall be set forth therein at the Purchase Price, but the amount and type of securities issuable
upon exercise and payment of the Purchase Price shall be subject to adjustment as provided herein.

 

4.2             
Any Rights Certificate issued pursuant to Section 3.1 or Section 22 hereof that represents Rights which are null and void
pursuant to Section 7.6 hereof and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange,
replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain (to the extent feasible)
the following legend:

 

The Rights represented by this
Rights Certificate are or were beneficially owned by a Person who was or became an Acquiring Person or an Affiliate or Associate
of an Acquiring Person (as such terms are defined in the Rights Agreement). Accordingly, this Rights Certificate and the Rights
represented hereby are null and void in the circumstances specified in Section 7.6 of the Rights Agreement.

 

    	 	12	 

     

    

 

The provisions of Section 7.6 hereof shall
be operative whether or not the foregoing legend is contained on any Rights Certificate.

 

5.          Countersignature
and Registration. The Right Certificates shall be executed on behalf of the Company by the chief executive officer or the
chief financial officer of the Company or by any person authorized thereby, either manually or by facsimile signature; and shall
be attested by the secretary or any assistant secretary of the Company or the treasurer or any assistant treasurer of the Company,
either manually or by facsimile signature. The Right Certificates shall be countersigned by the Rights Agent and shall not be
valid for any purpose unless so countersigned, either manually or by facsimile. If any officer of the Company who shall have executed
or attested any of the Right Certificates shall cease to be an officer of the Company before countersignature by the Rights Agent
and issuance and delivery by the Company, the Right Certificates nevertheless may be countersigned by the Rights Agent and issued
and delivered by the Company with the same force and effect as though the Person who signed the Right Certificates had not ceased
to be an officer of the Company. Any Right Certificate may be executed or attested on behalf of the Company by any Person who,
at the actual date of the execution or attestation of the Right Certificate, is a proper officer of the Company to execute or
attest the Right Certificate, even if at the date of the execution of this Agreement the Person was not a proper officer.

 

Following the Distribution
Date, and receipt by the Rights Agent of written notice to that effect and other relevant and necessary information referred to
in Section 3.1, the Rights Agent will keep or cause to be kept, at its principal office, books for registration of the transfer
of the Right Certificates issued hereunder. These books shall show the names and addresses of the respective holders of the Right
Certificates, the number of Rights represented on its face by each of the Right Certificates, and the date of issuance of each
of the Right Certificates.

 

		6.	Transfer, Split-Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost
or Stolen Right Certificates.

 

6.1             
Subject to the provisions of Section 14, at any time after the Close of Business on the Distribution Date, and prior to
the earlier of the Redemption Date or the Close of Business on the Final Expiration Date, any Right Certificate (other than a Right
Certificate representing Rights that have become null and void pursuant to Section 7.6 or that have been exchanged pursuant to
Section 24) may be transferred, split up, combined or exchanged for another Right Certificate, entitling the registered holder
to purchase a like number of Common Shares (or, following a Triggering Event, other securities, cash or other assets, as the case
may be) as the Right Certificate surrendered theretofore entitled such holder to purchase. Any registered holder desiring to transfer,
split up, combine or exchange any Right Certificate shall make a request in writing delivered to the Rights Agent, and shall surrender
the Right Certificate to be transferred, split up, combined or exchanged at the office of the Rights Agent designated for such
purpose accompanied by signature guarantee (a “Signature Guarantee”) from an eligible guarantor institution participating
in a signature guarantee program approved by the Securities Transfer Association, and any other reasonable evidence of authority
that may be reasonably required by the Rights Agent. Thereupon, the Rights Agent shall countersign and deliver to the Person entitled
thereto a Right Certificate or Right Certificates, as the case may be, as so requested. The Company may require payment of a sum
sufficient for any tax or charge that may be imposed in connection with any transfer, split-up, combination or exchange of Right
Certificates. If and to the extent the Company does require payment of any taxes or charges, the Company shall give the Rights
Agent prompt written notice thereof and the Rights Agent shall not have any duty to deliver any Rights Certificate unless and until
the Rights Agent is satisfied that the required payments have been made, and the Rights Agent shall forward any sum collected by
it to the Company or to a Person or Persons specified by the Company in a written notice. The Rights Agent shall have no duty or
obligation to take any action with respect to a Rights holder under any Section of this Agreement which requires the payment by
the Rights holder of applicable taxes and charges unless and until the Rights Agent is reasonably satisfied that the required taxes
and charges have been paid.

 

    	 	13	 

     

    

 

6.2             
Subject to the provisions of Section 14, at any time after the Close of Business on the Distribution Date, and prior to
the earlier of the Redemption Date or the Close of Business on the Final Expiration Date, upon receipt by the Company and the Rights
Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and, in
case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and, at the Company’s or Rights
Agent’s request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and, in
case of mutilation, upon surrender to the Rights Agent and cancellation of the Right Certificate, the Company will make and deliver
a new Right Certificate of like tenor to the Rights Agent for delivery to the registered holder in lieu of the Right Certificate
so lost, stolen, destroyed or mutilated.

 

6.3             
Notwithstanding any other provisions hereof, the Company and the Rights Agent may amend this Rights Agreement to provide
for uncertificated Rights in addition to or in place of Rights represented by Rights Certificates, to the extent permitted by applicable
law.

 

		7.	Exercise of Rights; Purchase Price; Expiration Date of Rights.

 

7.1             
Except as otherwise provided herein, the Rights shall become exercisable on the Distribution Date, and thereafter the registered
holder of any Right Certificate (other than a holder whose Rights have become null and void pursuant to Section 7.6 or have been
exchanged pursuant to Section 24) may, subject to Section 11.1.2 and except as otherwise provided herein, exercise the Rights represented
thereby, in whole or in part, at any time after the Distribution Date upon surrender of the Right Certificate, with the form of
election to purchase on the reverse side thereof properly completed and duly executed, to the Rights Agent at the office of the
Rights Agent designated for such purpose, together with payment of the Purchase Price for each Common Share represented by a Right
that is exercised and an amount equal to any applicable tax or charge required to be paid pursuant to Section 9.3, prior to the
time (the “Expiration Date”) that is the earliest of (i) the Close of Business on the Final Expiration Date,
(ii) the time at which the Rights are redeemed pursuant to Section 23, (iii) the time at which the Rights are exchanged pursuant
to Section 24 or (iv) the Closing of any merger or other acquisition transaction involving the Company pursuant to an agreement
described in Section 13.3 at which time the Rights are terminated.

 

7.2             
The purchase price to be paid upon the exercise of each Right to purchase one Common Share represented by a Right shall
initially be $31.50 (the “Purchase Price”) and shall be payable in lawful money of the United States of America
in accordance with Section 7.3. Each Right shall initially entitle the holder to acquire one Common Share upon exercise of the
Right. The Purchase Price and the number of Common Shares or other securities for which a Right is exercisable shall be subject
to adjustment from time to time as provided in Sections 11 and 13.

 

    	 	14	 

     

    

 

7.3             
Except as otherwise provided herein, upon receipt of a Right Certificate representing exercisable Rights, with the form
of election to purchase properly completed and duly executed, accompanied by a Signature Guarantee and payment of the Purchase
Price for the number of Rights exercised and an amount equal to any applicable tax or charge required to be paid by the holder
of the applicable Right Certificate in accordance with Section 9.3 by cash, certified check, cashier’s check or money order
payable to the order of the Company, the Rights Agent shall thereupon promptly (i)(A) requisition from any transfer agent of the
Common Shares (or make available, if the Rights Agent is the transfer agent for the shares) certificates for the number of Common
Shares to be purchased (or, in the case of Book Entry Common Shares or other uncertificated securities, requisition from a transfer
agent a notice setting forth the number of shares or other securities to be purchased for which registration will be made on the
stock transfer books of the Company), and the Company hereby irrevocably authorizes its transfer agent to comply with all such
requests, or (B) requisition from any depositary agent for the Common Shares depositary receipts representing the number of Common
Shares to be purchased (in which case certificates for the Common Shares represented by the depositary receipts shall be deposited
by the transfer agent with the depositary agent), and the Company hereby directs the depositary agent to comply with such request;
(ii) when necessary to comply with this Agreement, requisition from the Company the amount of cash to be paid in lieu of issuance
of fractional Common Shares in accordance with Section 14; (iii) after receipt of the certificates or depositary receipts, cause
the same to be delivered to the registered holder of the applicable Right Certificate or, upon the order of the registered holder,
in the name or names as may be designated by the holder; and (iv) when necessary to comply with this Agreement, after receipt,
deliver cash to the registered holder of the applicable Right Certificate or, upon the order of the registered holder, the Person
or Persons as may be designated by the holder. The Company reserves the right to require that, upon any exercise of Rights, a number
of Rights be exercised so that only whole Common Shares would be issued.

 

7.4             
Except as otherwise provided herein, if the registered holder of any Right Certificate shall exercise less than all the
Rights represented thereby, a new Right Certificate representing Rights equivalent to the exercisable Rights remaining unexercised
shall be issued by the Rights Agent to the registered holder of the Right Certificate or to the holder’s duly authorized
assigns, subject to the provisions of Section 14.

 

7.5             
Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated
to undertake any action with respect to a registered holder of Rights upon the occurrence of any purported transfer or exercise
of Rights as set forth in Section 6 or this Section 7 unless the registered holder shall have (i) properly completed and signed
the certificate contained in the form of assignment or form of election to purchase set forth on the reverse side of the Right
Certificate surrendered for transfer or exercise, (ii) tendered the Purchase Price (and an amount equal to any applicable transfer
tax required to be paid by the holder of such Right Certificate in accordance with Section 9) to the Company in the manner set
forth in Section 7.3 and (iii) provided any additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner)
or Affiliates or Associates thereof as the Company and the Rights Agent shall reasonably request.

 

    	 	15	 

     

    

 

7.6             
Notwithstanding anything in this Agreement to the contrary, from and after a Person becomes an Acquiring Person, any Rights
that are or were acquired or Beneficially Owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person,
(ii) a transferee of an Acquiring Person (or of any Associate or Affiliate thereof) who becomes a transferee after the Acquiring
Person became such, or (iii) a transferee of an Acquiring Person (or of any Associate or Affiliate thereof) who becomes a transferee
prior to or concurrently with the Acquiring Person’s becoming such and receives such Rights pursuant to either (A) a transfer
(whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any
Person with whom the Acquiring Person has any continuing agreement, arrangement or understanding regarding the transferred Rights,
(B) a transfer which the Continuing Directors have determined, within one hundred and eighty (180) days for limiting the power
of future directors to vote in this regard following a Section 23.1 Event, by a majority of the Continuing Directors, or if such
determination is not made until after such period expires, by a majority of the Board, is part of a plan, arrangement or understanding
which has as a primary purpose or effect the avoidance of this Section 7.6 or (C) a transfer pursuant to Section 5.7 of the Charter
to a trust, shall become null and void without any further action and no holder of such Rights shall have any rights whatsoever
with respect to such Rights, whether under any provision of this Agreement or otherwise. The Company shall use all reasonable efforts
to insure that the provisions of this Section 7.6 and Section 4.2 hereof are complied with, but the Company and the Rights Agent
shall have no liability to any holder of Rights Certificates or other Person as a result of the Company’s failure to make
any determinations with respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder. For the avoidance
of any doubt, on and after the Distribution Date, any Right, the exercise or exchange of which would cause a Person to become an
Acquiring Person, shall become null and void without any further action and no holder of such Rights shall have any rights whatsoever
with respect to such Rights, whether under any provision of this Agreement or otherwise.

 

 8.           Cancellation and Destruction of Right Certificates. All Right Certificates surrendered for the purpose of exercise, transfer, split-up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent for cancellation or in canceled form, or, if surrendered to the Rights Agent, shall be canceled by it, and no Right Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Right Certificate representing Rights purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all canceled Right Certificates to the Company, or shall, at the written request of the Company, destroy the canceled Right Certificates, and in such case shall deliver a certificate of destruction thereof to the Company.

 

		9.	Status and Availability of Common Shares.

 

9.1             
The Company covenants and agrees that it will cause to be kept available out of its authorized and unissued Common Shares,
the number of Common Shares that will be sufficient to permit the exercise in full of all outstanding Rights in accordance with
Section 7.

 

    	 	16	 

     

    

 

9.2             
The Company shall take all action as may be reasonably necessary to ensure that all Common Shares (or other securities of
the Company) delivered upon exercise of Rights shall, at the time of delivery of the certificates (or by Book Entry) for the Common
Shares (or other securities of the Company), subject to payment of the Purchase Price, be duly and validly authorized and issued
and fully paid and non-assessable shares.

 

9.3             
The Company shall pay when due and payable any and all federal and state transfer taxes and charges which may be payable
in respect of the issuance or delivery of the Right Certificates or the issuance and delivery of any certificates or depository
receipts or entries in the Book Entry account system of the transfer agent for the Common Shares (or other securities of the Company)
upon the exercise of Rights. The Company shall not, however, be required to pay any transfer tax or charges which may be payable
in respect of any transfer or delivery of Right Certificates to a Person other than, or the issuance or delivery of certificates
or depositary receipts for the Common Shares (or other securities of the Company) in a name other than that of, the registered
holder of the Right Certificate representing Rights surrendered for exercise, and shall not be required to issue or deliver any
certificates or depositary receipts for Common Shares (or other securities of the Company) upon the exercise of any Rights until
any required tax or charge shall have been paid (any required tax or charge being payable by the holder of the Right Certificate
at the time of surrender) or until it has been established to the Company’s or Rights Agent’s reasonable satisfaction
that no transfer tax or charge is due.

 

9.4             
If the Common Shares (and, after the occurrence of a Section 11.1.2 Event, any other securities) issuable upon the exercise
of the Rights are listed on any national securities exchange, the Company shall use its best efforts to cause, from and after such
time as the Rights become exercisable, all shares reserved for such issuance to be listed on an exchange upon official notice of
issuance upon exercise of the Rights.

 

9.5             
The Company shall use all reasonable efforts to: (i) file, as soon as practicable following the earliest date after the
first occurrence of a Section 11.1.2 Event in which the consideration to be delivered by the Company upon exercise of the Rights
has been determined in accordance with this Agreement, a registration statement under the Securities Act with respect to the Rights
and the securities issuable upon exercise of the Rights on an appropriate form, (ii) cause the registration statement to become
effective as soon as practicable after filing the registration statement, (iii) cause the registration statement to remain effective
(with a prospectus at all times meeting the requirements of the Securities Act) until the earlier of (A) the date as of which the
Rights are no longer exercisable for securities or (B) the Expiration Date.  The Company will also take any action as may
be appropriate under, or to ensure compliance with, the securities or “blue sky” laws of the various jurisdictions
in connection with the exercise of the Rights.  The Company may, acting by resolution of the Board of Directors, temporarily
suspend, for a period of time not to exceed ninety (90) days after the date set forth in clause (i) of the first sentence of this
Section 9.5, the exercise of the Rights in order to prepare and file the registration statement stating that exercise of the Rights
has been temporarily suspended, as well as a public announcement at the time the suspension is no longer in effect.  In addition,
if the Company shall determine that a registration statement is required in other circumstances following the Distribution Date,
the Company may similarly temporarily suspend exercise of the Rights until such time as a registration statement has been declared
effective.  Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercised in any jurisdiction
if the requisite qualification in the applicable jurisdiction shall not have been obtained, the exercise thereof shall not otherwise
be permitted under applicable law or a registration statement shall not have been declared effective.

 

    	 	17	 

     

    

 

 10.           Common Shares Record Date. Each Person in whose name any certificate or entry in the Book Entry account system of the transfer agent for the Common Shares is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Common Shares (or other securities of the Company) represented thereby on, and the certificate (or Book Entry) shall be dated, the date upon which the Right Certificate representing the Rights was duly surrendered and payment of the Purchase Price (and any applicable taxes and charges) was made; provided, however, that, if the date of surrender and payment is a date upon which the Common Shares transfer books of the Company are closed, the Person shall be deemed to have become the record holder of the Common Shares on, and the certificate shall be dated, the next succeeding Business Day on which the Common Shares transfer books of the Company are open. Prior to the exercise of the Rights represented thereby, the holder of a Right Certificate shall not be entitled to any rights of a holder of Common Shares for which the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends or other distributions, or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein.

 

		11.	Adjustment of Purchase Price, Number of Shares or Number of Rights.

 

11.1         General. The Purchase Price, the number of Common Shares covered by each Right and the number of Rights outstanding
are subject to adjustment from time to time as provided in this Section 11.

 

11.1.1   
In the event the Company shall at any time after the date of this Agreement (i) declare a dividend on the Common Shares
payable in Common Shares, (ii) subdivide the outstanding Common Shares into a larger number of Common Shares, (iii) combine the
outstanding Common Shares into a smaller number of Common Shares or (iv) issue any shares of its capital stock in a reclassification
of the Common Shares (including any reclassification in connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), except as otherwise provided in this Section 11.1 and Section 7.6, the Purchase Price in effect, and
the number and kind of shares of capital stock issuable upon the exercise of each Right, after the record date for the dividend
or the effective date of the subdivision, combination or reclassification, as applicable, shall be proportionately adjusted so
that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of
capital stock which, if the Right had been exercised immediately prior to such date and at a time when the Common Shares transfer
books of the Company were open, the holder would have owned upon exercise of the Right and been entitled to receive by virtue of
the dividend, subdivision, combination or reclassification, as applicable; provided, however, that in no event shall
the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock
of the Company issuable upon exercise of one Right. If an event occurs which would require an adjustment under both Section 11.1.1
and Section 11.1.2 hereof, the adjustment provided for in this Section 11.1.1 shall be in addition to, and shall be made prior
to any adjustment required pursuant to Section 11.1.2 hereof.

 

    	 	18	 

     

    

 

11.1.2   
Subject to Section 7.6 and Section 24, in the event any Person becomes an Acquiring Person (other than by means of a Permitted
Offer or a Section 13 Event) and the Board of Directors authorizes the Company to issue Rights Certificates under Section 3.1 (the
 “Section 11.1.2 Event”), then, each holder of a Right (except as provided below and in Section 7.6 hereof) shall
thereafter have a right to receive (subject to the last sentence of Section 23.1 hereof), upon exercise thereof at a price equal
to the then current Purchase Price, in accordance with the terms of this Agreement and in lieu of the Common Shares issuable under
Section 7.1, a number of Common Shares equal to the result obtained by (x) multiplying the then current Purchase Price by the number
of Common Shares for which a Right was exercisable immediately prior to the first occurrence of a Section 11.1.2 Event, and (y)
dividing that product (which, following the first occurrence, shall thereafter be referred to as the “Purchase Price”
for each Right and for all purposes of this Agreement) by 50% of the then Current Per Share Market Price of the Common Shares (determined
pursuant to Section 11.4.2) on the date of the first occurrence (the number of shares of stock being referred to as the “Adjustment
Shares”); provided, however, that if the transaction that would otherwise give rise to the foregoing adjustment
is also subject to the provisions of Section 13 hereof, then only the provisions of Section 13 hereof shall apply and no adjustment
shall be made pursuant to this Section 11.1.2.

 

11.1.3   
In the event that the number of Common Shares authorized by the Charter (as the same may be amended and restated from time
to time) but not outstanding or reserved for issuance for purposes other than exercise of the Rights is not sufficient to permit
the exercise in full of the Rights in accordance with the foregoing Section 11.1.2 and the Board of Directors determines not to
amend the Charter to authorize additional Common Shares, the Company, acting by resolution of the Board of Directors, shall, to
the extent permitted by applicable law and any material agreements then in effect to which the Company is a party, (A) determine
the value of the Adjustment Shares issuable upon the exercise of a Right in accordance with the foregoing Section 11.1.2 (the “Current
Value”) and the amount by which it exceeds the Purchase Price attributable to each Right (the excess being referred to
as the “Spread”), and (B) with respect to each Right (other than Rights that have become void pursuant to Section
7.6), make adequate provision to substitute for the Adjustment Shares, upon the exercise of the Right and payment of the applicable
Purchase Price, (1) cash, (2) a reduction in Purchase Price, (3) equity securities of the Company other than Common Shares (including,
without limitation, shares, or units of shares, of preferred stock which the Board of Directors has deemed to have essentially
the same value or economic rights as Common Shares (“Common Stock Equivalents”), (4) debt securities of the
Company, (5) other assets or (6) any combination of any or all of the foregoing which, when added to the value of the Common Shares
issued upon exercise of the Right, have an aggregate value equal to the Current Value (less the amount of any reduction in the
Purchase Price), where the aggregate value has been determined by the Board of Directors; provided, however, if the Company
shall not have made adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following the later
of (x) the first occurrence of a Section 11.1.2 Event and (y) the date on which the Company’s right of redemption pursuant
to Section 23.1 hereof, as the date may be amended by Section 27 hereof, expires, then the Company shall be obligated to deliver,
to the extent permitted by applicable law and any material agreements then in effect to which the Company is a party, upon the
surrender for exercise of a Right and without requiring payment of the Purchase Price, Common Shares (to the extent available)
and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread.

 

    	 	19	 

     

    

 

11.2         
If the Board of Directors fixes a record date for the issuance of rights, options or warrants to all holders of Common Shares
entitling them (for a period expiring within forty-five (45) calendar days after the record date) to subscribe for or purchase
Common Shares, or shares having the same rights, privileges and preferences as the Common Shares (“Equivalent Common Shares”),
or securities convertible into Common Shares or Equivalent Common Shares at a price per Common Share or Equivalent Common Share
(or having a conversion price per share, if a security convertible into Common Shares or Equivalent Common Shares) less than the
then Current Per Share Market Price of the Common Shares (as determined pursuant to Section 11.4.2) on the record date, the Purchase
Price to be in effect after the record date shall be adjusted by multiplying the Purchase Price in effect immediately prior to
the record date by a fraction, (i) the numerator of which shall be (A) the number of Common Shares outstanding on the record date
plus (B) the number of Common Shares which the aggregate offering price of the total number of Common Shares or Equivalent Common
Shares to be offered (or the aggregate initial conversion price of the convertible securities to be offered) would purchase at
the then Current Per Share Market Price and (ii) the denominator of which shall be (A) the number of Common Shares outstanding
on the record date plus (B) the number of additional Common Shares or Equivalent Common Shares to be offered for subscription or
purchase (or into which the convertible securities to be offered are initially convertible); provided, however, that
in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares
of capital stock of the Company issuable upon exercise of one Right. If such subscription price may be paid in a consideration
part or all of which shall be in a form other than cash, the value of such consideration shall be as determined by the Board of
Directors, whose determination shall be described in a statement filed with the Rights Agent. Common Shares owned by or held for
the account of the Company or any Subsidiary of the Company shall not be deemed outstanding for the purpose of any such computation.
Such adjustment shall be made successively whenever a record date is fixed. If such rights, options or warrants are not so issued,
the Purchase Price shall be adjusted to be the Purchase Price that would then be in effect if the record date had not been fixed.

 

11.3         
If the Board of Directors fixes a record date for the making of a distribution to all holders of the Common Shares (including
any distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation)
of evidences of indebtedness or assets (other than a regular periodic cash dividend, if any, or a dividend payable in Common Shares)
or subscription rights or warrants (excluding those referred to in Section 11.2), the Purchase Price to be in effect after the
record date shall be determined by multiplying the Purchase Price in effect immediately prior to the record date by a fraction,
(i) the numerator of which shall be the then Current Per Share Market Price of the Common Shares (as determined pursuant to Section
11.4.2) on the record date, less the fair market value (as determined by the Board of Directors, whose determination shall be described
in a statement filed with the Rights Agent and shall be binding on the Rights Agent) of the portion of the assets or evidences
of indebtedness to be distributed or of such subscription rights or warrants applicable to one Common Share and (ii) the denominator
of which shall be the then Current Per Share Market Price of the Common Shares; provided, however, that in no event
shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital
stock of the Company to be issued upon exercise of one Right. These adjustments shall be made successively whenever a record date
is fixed. If a distribution is not so made, the Purchase Price shall again be adjusted to be the Purchase Price that would then
be in effect if the record date had not been fixed.

 

    	 	20	 

     

    

 

11.4         
Current Per Share Market Price.

 

11.4.1   
Except as otherwise provided herein, for the purpose of any computation hereunder, the “Current Per Share Market
Price” of any security (a “Security” for the purpose of this Section 11.4.1) on any date shall be
deemed to be the average of the daily closing prices per share of the Security for the thirty (30) consecutive Trading Days immediately
prior to but not including such date; provided, however, that if the Current Per Share Market Price of the Security
is determined during a period (i) following the announcement by the issuer of the Security of (A) a dividend or distribution on
the Security payable in shares of the Security or other securities convertible into shares of the Security, or (B) any subdivision,
combination or reclassification of the Security of other securities convertible into the Security, and (ii) prior to the expiration
of thirty (30) Trading Days after (but not including) the ex-dividend date for a dividend or distribution, or the record date for
a subdivision, combination or reclassification, then, and in each case, the Current Per Share Market Price shall be appropriately
adjusted to reflect the current market price per share equivalent of the Security. The closing
price for each day shall be the last sale price, regular way, or, in case no sale takes place on the applicable day, the average
of the closing bid and asked prices, regular way, in either case as reported by the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the NYSE or NASDAQ or, if the Security is not listed or admitted
to trading on the NYSE or NASDAQ, as reported in the principal consolidated transaction reporting system with respect to securities
listed on the principal national securities exchange on which the Security is listed or admitted to trading or, if the Security
is not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average
of the high and low asked prices in the over-the-counter market as reported by any system then in use, or, if not so quoted, the
average of the closing bid and asked prices as furnished by a professional market maker making a market in the Security selected
by the Board of Directors. If no market maker is making a market in the Security, the fair value of the Security on the
applicable date as determined by the Board of Directors shall be used.

 

11.4.2   
For the purpose of any computation hereunder, the “Current Per Share Market Price” of the Common Shares,
if the Common Shares are not listed on a national securities exchange, shall be conclusively deemed to be the Company’s estimated
net asset value per share of its Common Stock (the “Estimated Per-Share NAV of Common Stock”) in effect as of
the applicable date, calculated pursuant to the valuation guidelines adopted by the Board of Directors and published by the Company
(appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof and not
otherwise reflected in the Estimated Per-Share NAV of Common Stock as of the applicable date); provided, however, that,
if the Board of Directors believes that the Estimated Per-Share NAV of Common Stock is not representative of the fair value per
Common Share, the “Current Per Share Market Price” of the Common Shares shall be the fair value per share as
determined by the Board of Directors, whose determination shall be described in a statement filed with the Rights Agent and shall
be binding on the Rights Agent. If the Common Shares are listed on a national securities exchange, the “Current Per Share
Market Price” of the Common Shares shall be determined in accordance with the method set forth in Section 11.4.1.

 

    	 	21	 

     

    

 

11.5         
Notwithstanding anything herein to the contrary, no adjustment in the Purchase Price shall be required unless an adjustment
would require an increase or decrease of at least 1% in the Purchase Price; provided, however, that any adjustments
which by reason of this Section 11.5 are not required to be made shall be carried forward and taken into account in any subsequent
adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest one ten-thousandth of any
share or security as the case may be. Notwithstanding the first sentence of this Section 11.5, any adjustment required by this
Section 11 shall be made no later than the earlier of (i) three years from the date of the transaction which requires an adjustment
and (ii) the date of the expiration of the right to exercise any Rights.

 

11.6         
If, as a result of an adjustment made pursuant to Section 11.1 or Section 13.1, the holder of any Right thereafter exercised
shall become entitled to receive any shares of capital stock of the Company other than Common Shares, the Purchase Price and number
of any other shares so receivable upon exercise of any Right shall thereafter be subject to adjustment from time to time in a manner
and on terms as nearly equivalent as practicable to the provisions with respect to the Common Shares contained in Sections 11.1,
11.2, 11.3, 11.5, 11.8, 11.9, 11.10, 11.11, 11.12, 11.13 and the provisions of Sections 7, 9, 10, 13 and 14 with respect to the
Common Shares shall apply on like terms to any other shares; provided, however, that the Company shall not be liable for its inability
to keep available for issuance upon exercise of the Rights pursuant to Section 11.1.2 a number of Common Shares greater than the
number then authorized by the Charter but not outstanding or reserved for any other purpose.

 

11.7         
All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence
the right to purchase, at the adjusted Purchase Price, the number of Common Shares purchasable from time to time hereunder upon
exercise of the Rights, all subject to further adjustment as provided herein.

 

11.8         
Unless the Company exercises its election as provided in Section 11.9, upon each adjustment of the Purchase Price as a result
of the calculations made in Sections 11.2 and 11.3, each Right outstanding immediately prior to the making of any adjustment shall
thereafter constitute the right to purchase, at the adjusted Purchase Price, that number of Common Shares (calculated to the nearest
one ten-thousandth of a Common Share) obtained by (i) multiplying the number of Common Shares into which the Right is exercisable
immediately prior to this adjustment by the Purchase Price in effect immediately prior to adjusting the Purchase Price and (ii)
dividing the product by the Purchase Price in effect immediately after adjusting the Purchase Price.

 

11.9         
The Company may elect on or after the date of any adjustment of the Purchase Price to adjust the number of Rights in substitution
for any adjustment in the number of Common Shares issuable upon the exercise of a Right. Each of the Rights outstanding after adjusting
the number of Rights shall be exercisable for the number of Common Shares for which a Right was exercisable immediately prior to
the adjustment. Each Right held of record prior to adjusting the number of Rights shall become that number of Rights (calculated
to the nearest one one-hundredth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase
Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement
of its election to adjust the number of Rights (with written notice thereof to the Rights Agent), indicating the record date for
the adjustment and, if known at the time, the amount of the adjustment to be made. The record date may be the date on which the
Purchase Price is adjusted or any day thereafter but, if the Right Certificates have been distributed, shall be at least ten (10)
days after the date of the public announcement. If Right Certificates have been distributed, upon each adjustment of the number
of Rights pursuant to this Section 11.9, the Company shall, as promptly as practicable, cause to be distributed to holders of record
of Rights on the applicable record date Right Certificates representing, subject to Section 14, the additional Rights to which
these holders shall be entitled as a result of the adjustment or, at the option of the Company, shall cause to be distributed to
the holders of record in substitution and replacement for the Right Certificates held by these holders prior to the date of adjustment,
and upon surrender thereof if required by the Company, new Right Certificates representing all the Rights to which these holders
shall be entitled after the adjustment. Right Certificates to be so distributed shall be issued, executed and delivered by the
Company, and countersigned and delivered by the Rights Agent, in the manner provided for herein and shall be registered in the
names of the holders of record of Rights on the record date specified in the public announcement.

 

    	 	22	 

     

    

 

11.10     
Irrespective of any adjustment or change in the Purchase Price or the number of Common Shares issuable upon the exercise
of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number
of Common Shares which were expressed in the initial Right Certificates issued hereunder.

 

11.11     
Before taking any action that would cause an adjustment reducing the Purchase Price below the then par value of the fraction
of Common Shares or other shares of capital stock issuable upon exercise of the Rights, the Company shall take any corporate action
which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid and non-assessable
Common Shares or any other shares at the adjusted Purchase Price.

 

11.12     
If this Section 11 requires that an adjustment in the Purchase Price be made effective as of a record date for a specified
event, the Company may elect to defer (with notice thereof to the Rights Agent), until the occurrence of the specified event, issuing
to the holder of any Right exercised after the record date of the number of Common Shares and other capital stock or securities
of the Company, if any, issuable upon the exercise over and above the number of Common Shares and other capital stock or securities
of the Company, if any, issuable upon the exercise on the basis of the Purchase Price in effect prior to the adjustment; provided,
however, that the Company shall deliver to the applicable holder a due bill or other appropriate instrument evidencing the
holder’s right to receive additional securities upon the occurrence of the event requiring an adjustment.

 

11.13     
Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make any adjustments in the
Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that the Board of
Directors, in its sole discretion, shall determine to be advisable in order that any (i) combination, consolidation or subdivision
of the Common Shares, (ii) issuance wholly for cash of any Common Shares at less than the Current Per Share Market Price, (iii)
issuance wholly for cash of Common Shares or securities which by their terms are convertible into or exchangeable for Common Shares,
(iv) dividends on Common Shares payable in Common Shares, or (v) issuance of any rights, options or warrants referred to in Section
11.2 made by the Company after the date of this Agreement to holders of its Common Shares shall not be taxable to these stockholders.

 

    	 	23	 

     

    

 

11.14     
If, at any time after the date of this Agreement and prior to the Distribution Date, the Company (i) declares or pays any
dividend on the Common Shares payable in Common Shares or (ii) effects a subdivision, combination or consolidation of the Common
Shares (by reclassification or otherwise other than by payment of dividends in Common Shares) into a greater or lesser number of
Common Shares, then (i) the number of Common Shares purchasable after the applicable event upon exercise of each Right shall be
determined by multiplying the number of Common Shares so purchasable immediately prior to the applicable event by a fraction, the
numerator of which is the number of Common Shares outstanding immediately before the applicable event and the denominator of which
is the number of Common Shares outstanding immediately after the applicable event, and (ii) each Common Share outstanding immediately
after the applicable event shall have issued with respect to it that number of Rights which each Common Share outstanding immediately
prior to the applicable event had issued with respect to it. The adjustments provided for in this Section 11.14 shall be made successively
whenever a dividend is declared or paid or a subdivision, combination or consolidation is effected. If an event occurs that would
require an adjustment under Section 11.1.2 and this Section 11.14, the adjustment provided in this Section 11.14 shall be in addition
and prior to any adjustment required pursuant to Section 11.1.2.

 

 12.           Certificate of Adjustment. Whenever an adjustment is made as provided in Section 11 or Section 13, the Company shall promptly (i) prepare a certificate setting forth the adjustment and a brief statement of the facts accounting for the adjustment in reasonable detail, (ii) file with the Rights Agent and with each transfer agent for the Common Shares a copy of the certificate, and (iii) if the adjustment occurs following a Distribution Date, mail a brief summary thereof to each holder of a Right Certificate in accordance with Section 25 (if so required under Section 25) and Section 26. Notwithstanding the foregoing sentence, the failure of the Company to make a certification or give notice shall not affect the validity of an adjustment or the force or effect of the requirement for an adjustment. The Rights Agent shall be fully protected in relying on any certificate of adjustment and on any adjustment therein contained and shall not be obligated or responsible for calculating any adjustment, nor shall the Rights Agent be deemed to have any liability therefor or knowledge of any adjustment, unless and until it shall have received the certificate.

 

		13.	Consolidation, Merger, Sale or Transfer of Assets or Earning Power.

 

13.1         
If, at any time after a Stock Acquisition Date, (i) the Company consolidates with, or merges with and into, any other Person;
(ii) any Person consolidates with the Company, or merges with and into the Company, and the Company is the continuing or surviving
corporation of the transaction and, in connection with the transaction, all or part of the Common Shares are or will be changed
into or exchanged for stock or other securities of any other Person (or the Company) or cash or any other property; or (iii) the
Company sells or otherwise transfers (or one or more of its Subsidiaries sell or otherwise transfer), in one or more transactions,
assets or Earning Power aggregating 50% or more of the assets or Earning Power of the Company and its Subsidiaries (taken as a
whole) to any other Person other than the Company or one or more of its wholly owned Subsidiaries (each of the foregoing events,
a “Section 13 Event”), then, upon the first occurrence of any Section 13 Events, proper provision shall be made
so that (A) each holder of a Right (except for Rights which have become null and void pursuant to Section 7.6) shall thereafter
have the right to receive, upon the exercise of a Right, at a price equal to the then current Purchase Price, in accordance with
the terms of this Agreement and in lieu of the Common Shares issuable under Section 7.1, the number of shares of Common Stock of
such other Person (including the Company as successor thereto or as the surviving corporation) equal to the result obtained by
(1) multiplying the then current Purchase Price by the number of Common Shares for which a Right is exercisable immediately prior
to the first occurrence of a Section 13 Event (or, if a Section 11.1.2 Event has occurred prior to the first occurrence of a Section
13 Event, multiplying the number of Common Shares for which a Right was exercisable prior to the occurrence of a Section 11.1.2
Event by the Purchase Price in effect prior to the occurrence of a Section 11.1.2 Event), and (2) dividing that product (which,
following the occurrence of a Section 13 Event, shall be referred to as the “Purchase Price” for each Right
and for all purposes of this Agreement) by fifty percent (50%) of the then Current Per Share Market Price of the shares of Common
Stock of the other Person (determined pursuant to Section 11.4.1 hereof) on the date of consummation of such Section 13 Event;
(B) the issuer of the shares of Common Stock shall thereafter be liable for, and shall assume, by virtue of the Section 13 Event,
all the obligations and duties of the Company pursuant to this Agreement; (C) the term “Company” shall thereafter be
deemed to refer to the issuer of the shares of Common Stock; and (D) the issuer shall take steps in connection with the consummation
of the applicable transaction as may be necessary to ensure that the provisions hereof shall thereafter be applicable, as nearly
as reasonably may be, in relation to the Common Stock thereafter deliverable upon the exercise of the Rights; provided that, upon
the subsequent occurrence of any consolidation, merger, sale or transfer of assets or other extraordinary transaction in respect
of the issuer, each holder of a Right shall thereupon be entitled to receive, upon exercise of a Right and payment of the Purchase
Price as provided in this Section 13.1, cash, shares, rights, warrants and other property which the holder would have been entitled
to receive had the holder, at the time of the applicable transaction, owned shares of Common Stock of the issuer receivable upon
the exercise of a Right pursuant to this Section 13.1, and the issuer shall take all steps (including, but not limited to, reservation
of shares of stock) necessary to permit the subsequent exercise of the Rights in accordance with the terms hereof for cash, shares,
rights, warrants and other property.

 

    	 	24	 

     

    

 

13.2         
The Company shall not consummate any consolidation, merger, sale or transfer unless prior thereto the Company and the issuer
of the shares of Common Stock shall have executed and delivered to the Rights Agent a supplemental agreement providing for the
issuer’s compliance with this Section 13. The Company shall not enter into any transaction of the kind referred to in this
Section 13 if, at the time of the applicable transaction, there are any rights, warrants, instruments or securities outstanding
or any agreements or arrangements which, as a result of the consummation of the applicable transaction, would eliminate or substantially
diminish the benefits intended to be afforded by the Rights. The provisions of this Section 13 shall apply to successive mergers,
consolidations or sales or other transfers. In the event that a Section 13 Event shall occur at any time after the occurrence of
a Section 11.1.2 Event, the Rights that have not theretofore been exercised shall thereafter become exercisable in the manner described
in Section 13.1.

 

13.3         
Notwithstanding anything contained herein to the contrary, in the event of any merger or other acquisition transaction involving
the Company pursuant to a merger or other acquisition agreement between the Company and any Person (or one or more of the Person’s
Affiliates or Associates) which agreement has been approved by the Board of Directors prior to any Person becoming an Acquiring
Person, this Agreement and the rights of holders of Rights hereunder shall be terminated in accordance with Section 7.1.

 

    	 	25	 

     

    

 

13.4         
For purposes hereof, the “Earning Power” of the Company and its Subsidiaries shall be determined in good
faith by the Board of Directors on the basis of the operating earnings of each business operated by the Company and its Subsidiaries
during the three fiscal years preceding the date of determination (or, in the case of any business not operated by the Company
or any of its Subsidiaries during three full fiscal years preceding the date of determination, during the period the applicable
business was operated by the Company or any of its Subsidiaries).

 

		14.	Fractional Rights and Fractional Shares.

 

14.1         
The Company shall not be required to issue fractions of Rights or to distribute Right Certificates which represent fractional
Rights. In lieu of issuing fractional Rights, the Company has the option to pay to each registered holder of the Right Certificates
with regard to which the fractional Rights would otherwise be issuable an amount in cash equal to the same fraction of the current
market value of a whole Right. For the purposes of this Section 14.1, the current market value of a whole Right shall be the closing
price (as determined in accordance with Section 11.4.1) of the Rights for the Trading Day immediately prior to the date on which
the fractional Rights would have been otherwise issuable.

 

14.2         
The Company shall not be required to issue fractions of shares of its stock upon the exercise of the Rights or to distribute
certificates which represent fractional shares. In lieu of fractional shares, the Company has the option to pay to each registered
holder of Right Certificates at the time the Rights are exercised or exchanged as herein provided an amount in cash equal to the
same fraction of the current market value of a whole share of its stock. For the purposes of this Section 14.2, the current market
value of a whole share of stock shall be the closing price (as determined in accordance with the second sentence of Section 11.4.1)
of the applicable share of stock for the Trading Day immediately prior to the date of exercise or exchange; provided, however,
that, with respect to the current market value of a Common Share, if the Common Shares are not listed on a national securities
exchange, the current market value shall be the Current Per Share Market Price of Common Stock (as determined in accordance with
the first sentence of Section 11.4.2) for the Business Day immediately prior to the date of exercise or exchange. 

 

14.3         
[Reserved]

 

14.4         
The holder of a Right by the acceptance of the Right expressly waives any right to receive fractional Rights or fractional
shares upon exercise of a Right (except as provided in this Section 14).

 

14.5         
Whenever a payment for fractional Rights or fractional shares is to be made by the Rights Agent, the Company shall (i) promptly
prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to the payments and
the prices or formulas utilized in calculating the payments, and (ii) provide sufficient monies to the Rights Agent in the form
of fully collected funds to make the payments. The Rights Agent shall be fully protected in relying upon the Company’s certificate
and shall have no duty with respect to, and shall not be deemed to have knowledge of any payment for fractional Rights or fractional
shares under any Section of this Agreement relating to the payment of fractional Rights or fractional shares unless and until the
Rights Agent shall have received the certificate and sufficient monies.

 

    	 	26	 

     

    

 

 15.           Rights of Action. All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent under Section 18, are vested in the respective registered holders of the Rights. Any holder of Right may, without the consent of the Rights Agent or of the holder of any other Right, on the holder’s own behalf and for the holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, the holder’s right to exercise the Rights represented by the Right Certificate in the manner provided in the Right Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that holders of Rights would not have an adequate remedy at law for any breach by the Company of this Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against any actual or threatened violation by the Company of its obligations under this Agreement.

 

 16.           Agreement of Right Holders. Every holder of a Right, by accepting the same, consents and agrees with the Company and the Rights Agent and with every other holder of a Right that:

 

16.1         
prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of the Common Shares;

 

16.2         
after the Distribution Date, the Rights are transferable only on the registry books maintained by the Rights Agent if the
Rights Certificate representing the Rights is surrendered at office of the Rights Agent designated for such purpose accompanied
by a Signature Guarantee, duly endorsed or accompanied by a proper instrument of transfer; and

 

16.3         
the Company and the Rights Agent may deem and treat the Person in whose name the Right Certificate (or, prior to the Distribution
Date, the associated Common Stock certificate or Book Entry shares in respect of Common Stock) is registered as the absolute owner
thereof and of the Rights represented thereby (notwithstanding any notations of ownership or writing on the Right Certificates
or the associated Common Stock certificate (or Ownership Statements or notices provided to holders of Book Entry Common Shares)
made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights
Agent, subject to Section 7.5 hereof, shall be affected by any notice to the contrary.

 

16.4         
notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability
to any holder of a Right or other Person as a result of the inability of the Company or the Rights Agent to perform any of its
or their obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree, judgment
or ruling issued by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission,
or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority prohibiting or otherwise
restraining performance of an obligation; provided, however, that the Company must use its best efforts to have any order,
decree, judgment or ruling lifted or otherwise overturned as soon as practicable.

 

    	 	27	 

     

    

 

 17.           Right Holder Not Deemed a Stockholder. No holder, as such, of any Right shall be entitled to vote or receive dividends, or be deemed for any purpose the holder of the Common Shares or any other securities of the Company that may at any time be issuable on the exercise or exchange of the Rights represented thereby, nor shall anything contained herein or in any Right Certificate be construed to confer upon the holder of any Right, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, to give or withhold consent to any corporate action, to receive notice of meetings or other actions affecting stockholders (except as provided in Section 25), or to receive dividends or subscription rights, or otherwise, until the Rights represented by the Right Certificate shall have been exercised or exchanged in accordance with the provisions hereof.

 

 18.           Concerning the Rights Agent. The Company shall pay to the Rights Agent reasonable compensation for all services rendered by it hereunder in accordance with a mutually agreed upon fee schedule and, from time to time, on demand of the Rights Agent, reimburse the Rights Agent for its reasonable expenses and counsel fees and other disbursements incurred in the preparation, delivery, amendment, administration and execution of this Agreement and the exercise and performance of its duties hereunder. The Company shall also indemnify the Rights Agent for, and hold it harmless against, any and all loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or expense (including, without limitation, the reasonable fees and expenses of legal counsel) that may be paid, incurred or suffered by it, or which it may become subject, without gross negligence, bad faith or willful misconduct on the part of the Rights Agent (which gross negligence, bad faith, or willful misconduct must be determined by a final, non-appealable judgment of a court of competent jurisdiction), for any action taken, suffered, or omitted to be taken by the Rights Agent in connection with the execution, acceptance, administration, exercise and performance of its duties under this Agreement, including the costs and expenses of defending against any claim or liability arising therefrom, directly or indirectly, or enforcing its rights hereunder; provided, however, that the Rights Agent shall not settle or dispose of any claims in a manner that affects the Company’s rights or interests without the prior written consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed.

 

The Rights Agent shall
be protected and shall incur no liability for or in respect of any action taken, suffered or omitted to be taken by it in connection
with its administration of this Agreement in reliance upon any Right Certificate or certificate for the Common Shares or any other
securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction,
consent, certificate, statement, or other paper or document believed in the absence of bad faith by it to be genuine and to be
signed, executed and, where necessary, verified or acknowledged by the proper Person or Persons, or otherwise upon the advice of
counsel as set forth in Section 20 hereof. The Rights Agent shall not be deemed to have knowledge of any event of which it was
supposed to receive written notice thereof hereunder, but for which it has not received a written notice, and the Rights Agent
shall be fully protected and shall incur no liability for failing to take action in connection therewith unless and until it has
received a written notice.

 

    	 	28	 

     

    

 

 19.           Merger or Consolidation or Change of Name of Rights Agent. Any entity into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any entity resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any entity succeeding to the shareholder service business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided that such entity would be eligible for appointment as a successor Rights Agent under the provisions of Section 21. If, at the time the successor Rights Agent shall succeed to the agency created by this Agreement, any of the Right Certificates shall have been countersigned but not delivered, any successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned. If, at that time, any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign the Right Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent. In all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement.

 

If, at any time, the
name of the Rights Agent changes and any of the Right Certificates have been countersigned but not delivered, the Rights Agent
may adopt the countersignature under its prior name and deliver Right Certificates so countersigned. If, at that time, any of the
Right Certificates have not been countersigned, the Rights Agent may countersign such Right Certificates either in its prior name
or in its changed name. In all such cases such Right Certificates shall have the full force provided in the Right Certificates
and in this Agreement.

 

The provisions of Section
18, this Section 19 and Section 20 below shall survive the termination of this Agreement, the resignation, replacement or removal
of the Rights Agent and the exercise, termination and the expiration of the Rights. In no event shall the Rights Agent be liable
for special, punitive, incidental, indirect or consequential loss or damage of any kind whatsoever (including but not limited to
lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damage and regardless of the form of
the action; and the Company shall indemnify the Rights Agent and hold it harmless to the fullest extent permitted by law against
any loss, liability or expense incurred as a result of third party claims for special, punitive, incidental, indirect or consequential
loss or damages of any kind whatsoever.

 

 20.           Duties of Rights Agent. The Rights Agent undertakes the duties and obligations expressly set forth in this Agreement (and no implied duties or obligations). The Rights Agent shall perform those duties and obligations upon the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, shall be bound:

 

20.1         
The Rights Agent may consult with legal counsel selected by it (who may be outside legal counsel for the Rights Agent or
the Company), and the advice or opinion of legal counsel shall be full and complete authorization and protection to the Rights
Agent and the Rights Agent will have no liability for or in respect of any action taken, suffered or omitted to be taken by it
in the absence of bad faith and in accordance with the advice or opinion of legal counsel.

 

    	 	29	 

     

    

 

20.2         
Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that
any fact or matter (including the identity of any Acquiring Person and the determination of Current Per Share Market Price) be
proved or established by the Company prior to taking, suffering, or omitting to take any action hereunder, such fact or matter
(unless other evidence in respect thereof is specifically prescribed herein) may be deemed to be conclusively proved and established
by a certificate signed by the chief executive officer or the chief financial officer of the Company or by any person authorized
thereby and delivered to the Rights Agent, and the certificate shall be full and complete authorization and protection to the Rights
Agent and the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted to be taken by it,
in the absence of bad faith, under the provisions of this Agreement in reliance upon the certificate.

 

20.3         
The Rights Agent shall be liable to the Company and any other Person hereunder only for its own gross negligence, bad faith
or willful misconduct (which gross negligence, bad faith or willful misconduct must be determined by a final judgment of a court
of competent jurisdiction). Any liability of the Rights Agent under this Agreement shall be limited to the amount of annual fees
(not including reimbursed expenses) paid by the Company to the Rights Agent during the twelve (12) months immediately preceding
the event for which recovery from the Rights Agent is being sought.

 

20.4         
The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement
or in the Right Certificates (except as to its countersignature thereof) or be required to verify the same. All such statements
and recitals are and shall be deemed to have been made by the Company only.

 

20.5         
The Rights Agent shall not have any liability for nor be under any responsibility in respect of the validity of this Agreement
or the execution and delivery hereof (except the due execution and delivery hereof by the Rights Agent) or in respect of the validity
or execution of any Right Certificate (except its countersignature thereof); nor shall it be liable or responsible for any breach
by the Company of any covenant or failure by the Company to satisfy any condition contained in this Agreement or in any Right Certificate;
nor shall it be responsible for any adjustment required under the provisions of Sections 11 or 13 or for the manner, method or
amount of any adjustment or the ascertaining of the existence of facts that would require any adjustment (except with respect to
the exercise of Rights represented by Right Certificates after receipt of a certificate furnished pursuant to Section 12 describing
the adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or
reservation of any shares of Common Shares or other securities to be issued pursuant to this Agreement or any Right Certificate
or as to whether any Common Shares or other securities will, when so issued, be validly authorized and issued, fully paid, and
non-assessable.

 

20.6         
The Company shall perform, execute, acknowledge and deliver, or cause to be performed, executed, acknowledged and delivered,
all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying
out or performing by the Rights Agent of the provisions of this Agreement.

 

20.7         
The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties
hereunder and certificates delivered pursuant to any provision hereof from the chief executive officer or chief financial officer,
and to apply to these officers for advice or instructions in connection with its duties. The Rights Agent shall not be liable for
any action taken or suffered to be taken by it, in the absence of bad faith, in accordance with instructions of any such officer
and such advice or instruction shall be full authorization and protection to the Rights Agent and the Rights Agent shall incur
no liability for or in respect of any action taken or suffered or omitted to be taken by it, in the absence of bad faith, in accordance
with advice or instructions of any such officer or for any delay in acting while waiting for those instructions.

 

    	 	30	 

     

    

 

20.8         
Subject to applicable law, rules and regulations, the Rights Agent and any stockholder, director, officer or employee of
the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company, or become pecuniarily interested
in any transaction in which the Company may be interested, or contract with or lend money to the Company, or otherwise act as fully
and freely as though it were not the Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent from acting
in any other capacity for the Company or for any other legal entity.

 

20.9         
The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder
either itself (through its directors, officers and employees) or by or through its attorneys or agents. The Rights Agent shall
not be answerable or accountable for any act, default, neglect, or misconduct of any of its attorneys or agents or for any loss
to the Company resulting from any act, default, neglect or misconduct, absent gross negligence, willful misconduct or bad faith
(each as determined by a final judgment of a court of competent jurisdiction) in the selection and continued employment of its
attorneys or agents.

 

20.10     
No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder or in the exercise of its rights if there shall be reasonable grounds
for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured
to it.

 

20.11     
The Rights Agent shall not be required to take notice or be deemed to have notice of any fact, event or determination (including,
without limitation, any dates or events defined in this Agreement or the designation of any Person as an Acquiring Person, Affiliate
or Associate) under this Agreement unless and until the Rights Agent shall be specifically notified in writing by the Company of
such fact, event or determination.

 

20.12     
The Rights Agent shall have no responsibility to the Company, any holders of Rights, any holders of Common Shares or any
other Person for interest or earnings on any moneys held by the Rights Agent pursuant to this Agreement.

 

20.13     
In the event the Rights Agent believes any ambiguity or uncertainty exists hereunder or in any notice, instruction, direction,
request or other communication, paper or document received by the Rights Agent hereunder, the Rights Agent shall promptly notify
the Company thereof, and the Rights Agent, may, in its sole discretion, refrain from taking any action, and shall be fully protected
and shall not be liable in any way to Company, the holder of any Rights Certificate or Book-Entry shares or any other Person for
refraining from taking such action, unless the Rights Agent receives written instructions signed by the Company which eliminates
such ambiguity or uncertainty to the satisfaction of Rights Agent.

 

    	 	31	 

     

    

 

20.14     
The Rights Agent shall act hereunder solely as agent for the Company. The Rights Agent shall not assume any obligations
or relationship of agency or trust with any of the owners or holders of the Rights or Common Stock.

 

20.15     
The Rights Agent may rely on and be fully authorized and protected in acting or failing to act upon (a) any guaranty of
signature by an "eligible guarantor institution" that is a member or participant in the Securities Transfer Agents Medallion
Program or other comparable "signature guarantee program" or insurance program in addition to, or in substitution for,
the foregoing; or (b) any related law, act, regulation or any interpretation of the same even though such law, act, or regulation
may thereafter have been altered, changed, amended or repealed.

 

 21.          Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this Agreement upon thirty (30) days’ prior notice in writing mailed to the Company and, in the event that the Rights Agent or one of its Affiliates is not also the transfer agent for the Company, to the transfer agent of Common Shares by registered or certified mail. In the event the transfer agency relationship in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to have resigned automatically and be discharged from its duties under this Agreement as of the effective date of termination, and the Company shall be responsible for sending any required notice. The Company may remove the Rights Agent or any successor Rights Agent upon thirty (30) days’ prior notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to the transfer agent of Common Shares by registered or certified mail, and, after the Distribution Date, to the holders of the Right Certificates by first class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to appoint a successor within a period of thirty (30) days after giving notice of removal or after it has been notified in writing of the Rights Agent’s resignation or incapacity by the resigning or incapacitated Rights Agent, then the registered holder of any Right Certificate (who shall, with the notice, submit the holder’s Right Certificate for inspection by the Company) may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by a court, shall be a Person organized and doing business under the laws of the United States or of any state of the United States, in good standing, which is authorized under the applicable laws to exercise corporate trust or stock transfer powers, is subject to supervision or examination by federal or state authority, and has, along with its Affiliates, at the time of its appointment as Rights Agent a combined capital and surplus of at least $50 million. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed, and the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and shall execute and deliver any further assurance, conveyance, act or deed necessary for the purpose, but such predecessor Rights Agent shall not be required to make any additional expenditure or assume any additional liability in connection with the foregoing. Not later than the effective date of any appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and the transfer agent of Common Shares, and, after the Distribution Date, mail a notice in writing to the registered holders of the Rights. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be.

 

    	 	32	 

     

    

 

22.           Issuance of New Right Certificates. Notwithstanding any of the provisions of this Agreement or of the Right Certificates
to the contrary, the Company may, at its option, issue new Right Certificates representing Rights in such form as may be approved
by its Board of Directors to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or
other securities or property purchasable under the Right Certificates made in accordance with the provisions of this Agreement.
In addition, in connection with the issuance or sale of Common Shares following the Distribution Date and prior to the earlier
of the Redemption Date and the Close of Business on the Final Expiration Date, the Company may, with respect to Common Shares so
issued or sold (i) pursuant to the exercise of stock options; (ii) under any employee plan or arrangement; (iii) upon the exercise,
conversion or exchange of securities, notes or debentures issued by the Company, or (iv) pursuant to a contractual obligation of
the Company, in each case existing prior to the Distribution Date, issue Right Certificates representing the appropriate number
of Rights in connection with such issuance or sale; provided, however, that (i) no Right Certificate shall be issued if,
and to the extent that, the Company shall be advised by counsel that the issuance would create a significant risk of material adverse
tax consequences to the Company or the Person to whom the Right Certificate would be issued or would create a significant risk
of or result in such options’ or employee plans’ or arrangements’ failing to qualify for otherwise available
special tax treatment, (ii) no Right Certificate shall be issued if, and to the extent that, appropriate adjustment shall otherwise
have been made in lieu of the issuance thereof and (iii) no Right Certificate shall be issued to an Acquiring Person or an Affiliate
or Associate of an Acquiring Person.

 

		23.	Redemption.

 

23.1         
The Board of Directors may, at its option, at any time prior to the earlier of (i) the Close of Business on the fifth (5th)
Business Day following the Distribution Date, or (ii) the Final Expiration Date, redeem all but not less than all of the then outstanding
Rights at a redemption price of $0.000001 per Right, as appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof (the “Redemption Price”). The redemption of the Rights by the Company
may be made effective at any time, on any basis and subject to any conditions as the Board of Directors in its sole discretion
may establish. The Company may, at its option, pay the Redemption Price in cash, Common Shares (based on the Current Per Share
Market Price at the time of redemption as determined pursuant to Section 11.4.2 hereof) or any other form of consideration deemed
appropriate by the Board of Directors. Notwithstanding anything contained in this Agreement to the contrary, the Rights shall not
be exercisable after the first occurrence of a Section 11.1.2 Event until such time as the Company's right of redemption set forth
in the first sentence of this Section 23.1 has expired.

 

23.2         
Immediately upon the action of the Board of Directors (with, if required, the concurrence of a majority of the Continuing
Directors) ordering the redemption of the Rights pursuant to Section 23.1 (or at a later time as the Board of Directors may establish
for the effectiveness of the redemption) (the “Redemption Date”), evidence of which shall have been filed with
the Rights Agent, and without any further action and without any notice, the right to exercise the Rights will terminate and the
only right thereafter of the holders of Rights shall be to receive the Redemption Price for each Right so held. Promptly after
the action of the Board ordering the redemption of the Rights, the Company shall give notice of redemption to the Rights Agent
and the holders of the then outstanding Rights by mailing such notice to all such holders at each holder’s last address as
it appears upon the registry books of the Rights Agent or, prior to the Distribution Date, the registry books for the Common Stock;
provided, however, that failure to give, or any defect in, any notice shall not affect the validity of the redemption. Any
notice that is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each
such notice of redemption will state the method by which the payment of the Redemption Price will be made. With respect to each
holder of Rights, the Redemption Price shall be rounded to the nearest cent for the aggregate Rights held by the holder.

 

    	 	33	 

     

    

 

23.3         
Notwithstanding the provisions of Section 23.1 hereof, in the event that a majority of the Board of Directors does not consist
of Continuing Directors (the first occurrence of such an event referred to herein as a “Section 23.1 Event”),
then for a period of one hundred and eighty (180) days following the Section 23.1 Event, the Rights shall not be redeemed unless
there are Continuing Directors and a majority of the Continuing Directors concur with the Board’s decision to redeem the
Rights.

 

		24.	Exchange.

 

24.1         
The Company may, at its option, upon authorization of the Board of Directors, at any time after a Person becomes an Acquiring
Person, exchange all or part of the then outstanding and exercisable Rights (excluding Rights that have become null and void pursuant
to Section 7.6) for Common Shares at an exchange ratio of one Common Share per Right, appropriately adjusted to reflect any stock
split, stock dividend or similar transaction occurring after the date hereof (the “Exchange Ratio”). Notwithstanding
the foregoing, to the extent prohibited by Maryland law, the Board of Directors shall not be empowered to authorize an exchange
at any time after an Acquiring Person becomes the Beneficial Owner of a majority of the Common Shares then outstanding. From and
after the occurrence of a Section 13 Event, any Rights that theretofore have not been exchanged pursuant to this Section 24 shall
thereafter be exercisable only in accordance with Section 13 and may not be exchanged pursuant to this Section 24. The Board of
Directors may provide that the exchange of the Rights by the Company may be made effective at a time, on any basis and with any
terms and conditions as the Board of Directors in its sole discretion may establish.

 

24.2         
Immediately upon effectiveness of the action of the Board of Directors authorizing the exchange of any Rights pursuant to
Section 24.1, and without any further action and without any notice, the right to exercise the Rights so exchanged shall terminate
and the only right thereafter of a holder shall be to receive a number of Common Shares equal to the number of the Rights held
by the holder which are exchanged multiplied by the Exchange Ratio. The Company shall promptly give public notice of any exchange
(as well as prompt written notice thereof to the Rights Agent); provided, however, that the failure to give, or any
defect in, an exchange notice shall not affect the validity of the exchange. The Company promptly shall mail a notice of any exchange
to all of the holders of the Rights so exchanged at their last addresses as they appear upon the registry books of the Rights Agent.
Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice.
Each notice of exchange will state the method by which the exchange of the Common Shares for Rights will be effected and, in the
event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata
based on the number of Rights (other than Rights which have become null and void pursuant to the provisions of Section 7.6) held
by each holder of Rights.

 

    	 	34	 

     

    

 

24.3         
In any exchange pursuant to this Section 24, the Board of Directors may provide, at its option, that the Company may substitute
Common Stock Equivalents for Common Shares exchangeable for Rights.

 

24.4         
If there shall not be sufficient Common Shares or Common Stock Equivalents authorized but unissued to permit any exchange
of Rights as contemplated in accordance with this Section 24, the Company shall take all action as may be necessary to authorize
additional Common Shares or Common Stock Equivalents for issuance upon exchange of the Rights.

 

24.5         
[Reserved] 

 

24.6         
Notwithstanding anything in this Section 24 to the contrary, the exchange of the Rights may be made effective at a time,
on any basis and with any terms and conditions as the Board of Directors in its sole discretion may establish. Without limiting
the preceding sentence, the Board of Directors may (i) in lieu of issuing Common Shares or any other securities contemplated by
this Section 24 to the Persons entitled thereto in connection with the exchange (the Persons, the “Exchange Recipients,”
and the Common Shares and other securities, together with any dividends or distributions made on the Common Shares or other securities,
the “Exchange Property”) issue, transfer or deposit the Exchange Property to or into a trust or other entity
that may hold the Exchange Property for the benefit of the Exchange Recipients (provided that the trust or other entity may not
be controlled by the Company or any of its Affiliates or Associates and provided further that the trustee or similar fiduciary
of the trust or other entity will attempt to distribute the Exchange Property to the Exchange Recipients as promptly as practicable),
(ii) permit the trust or other entity to exercise all of the rights that a stockholder of record would possess with respect to
any shares deposited in the trust or other entity and (iii) impose any procedures necessary to verify that the Exchange Recipients
are not Acquiring Persons or Affiliates or Associates of Acquiring Persons as of any time periods established by the Board of Directors
or the trust or other entity. In the event the Board of Directors determines to issue, transfer or deposit the Exchange Property
to or into a trust or other entity, all stockholders entitled to receive shares pursuant to the exchange shall be entitled to receive
such shares (and any dividends or other distributions made thereon after the date on which such shares are deposited in the trust
or other entity) only from the trust or other entity and solely upon compliance with the relevant terms and provisions of any agreement
between the Company and the trust or other entity. In the event the Board of Directors determines, before the Distribution Date,
to effect an exchange, the Board of Directors may delay the occurrence of the Distribution Date to a time as the Board of Directors
deems advisable.

 

		25.	Notice of Certain Events.

 

    	 	35	 

     

    

 

25.1         
If the Company shall after the Distribution Date propose (i) to pay any dividend payable in stock of any class to the holders
of its Common Shares or to make any other distribution to the holders of its Common Shares (other than a regular periodic cash
dividend, if any); (ii) to offer to the holders of its Common Shares rights or warrants to subscribe for or to purchase any additional
Common Shares or shares of stock of any class or any other securities, rights or options; (iii) to effect any reclassification
of its Common Shares (other than a reclassification involving only the subdivision of outstanding Common Shares); (iv) to effect
any consolidation or merger into or with any other Person, or to effect any sale or other transfer (or to permit one or more of
its Subsidiaries to effect any sale or other transfer), in one or more transactions, of 50% or more of the assets or Earning Power
of the Company and its Subsidiaries (taken as a whole) to any other Person; (v) to effect the liquidation, dissolution or winding
up of the Company; or (vi) to declare or pay any dividend on the Common Shares payable in Common Shares, or to effect a subdivision,
combination or consolidation of the Common Shares (by reclassification or otherwise than by payment of dividends in Common Shares),
then, in each case, the Company shall give to the Rights Agent and to each holder of a Right, in accordance with Section 26, a
notice of the proposed action, which shall specify the record date for the purposes of a stock dividend, or distribution of rights
or warrants, or the date on which a reclassification, consolidation, merger, sale, transfer, liquidation, dissolution or winding
up is to take place and the date of participation therein by the holders of Common Shares, if any date is to be fixed, and the
notice shall be so given, in the case of any action covered by clause (i) or (ii) above, at least ten (10) days prior to the record
date for determining holders of the Common Shares and, in the case of any action covered by clauses (iii) to (vi) above, at least
ten (10) days prior to the date of the taking of the proposed action or the date of participation therein by the holders of the
Common Shares, whichever shall be the earlier. The failure to give notice required by this Section 25.1 or any defect therein shall
not affect the legality or validity of the action taken by the Company or the vote upon any such action.

 

25.2         
In case any Section 11.1.2 Event shall occur, then the Company shall as soon as practicable thereafter give to each holder
of a Rights Certificate, in accordance with Section 26 hereof, a notice of the occurrence of the event, which notice shall specify
the event and the consequences of the event to holders of Rights under Section 11.1.2 hereof.

 

26.         
Notices. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of
any Right Certificate to or on the Company shall be in writing and shall be sufficiently given or made if sent by overnight delivery
service or first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows:

 

Healthcare Trust, Inc.

650 Fifth Avenue – 30th Floor

New York, NY 10019

Attention: Legal Department

 

Copy to:

 

Proskauer Rose LLP

70 West Madison #3800

Chicago, Illinois 60602

Attn: Michael J. Choate, Esq.

 

    	 	36	 

     

    

 

Subject to the provisions of Section 21,
any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Right Certificate
to or on the Rights Agent shall be in writing and shall be deemed given upon receipt and shall be sufficiently given or made if
sent by overnight delivery service or registered or certified mail addressed (until another address is filed in writing with the
Company) as follows:

 

Computershare Trust Company, N.A.

150 Royall Street

Canton, Massachusetts 02021

Attention: Legal Department

 

Notices or demands authorized by this Agreement
to be given or made by the Company or the Rights Agent to a holder of any Right shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed to the holder at the address of the holder as shown on the registry books of the Company.

 

27.          Supplements and Amendments. The Company may from time to time, and the Rights Agent shall if the Company so directs,
supplement or amend this Agreement without the approval of any holders of Rights in order to cure any ambiguity, to correct or
supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, or to make any
change to or delete any provision hereof or to adopt any other provisions with respect to the Rights which the Company may deem
necessary or desirable, including, among other things, to change the Final Expiration Date to either increase or decrease the term
of this Agreement; provided, however, that, from and after the Distribution Date, this Agreement shall not be amended
or supplemented in any manner which would adversely affect the interests of the holders of Rights (other than an Acquiring Person
and its Affiliates and Associates). Any supplement or amendment authorized by this Section 27 will be evidenced by a writing signed
by the Company and the Rights Agent. Upon the delivery of a certificate from the chief executive officer or chief financial officer
that states that the proposed supplement or amendment is in compliance with the terms of this Section 27, an authorized signatory
of the Rights Agent shall execute such supplement or amendment; provided, however, that notwithstanding anything in this Agreement
to the contrary, no supplement, modification or amendment will be effective without the execution of such supplement or amendment
by the Rights Agent and the Rights Agent shall have no duty to execute such supplement, amendment or modification to this Agreement
that it has determined would adversely affect its own rights, duties, obligations or immunities under this Agreement.

 

 28.           Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder.

 

 29.           Benefits of This Agreement. Nothing in this Agreement shall be construed to give to any Person or entity other than the Company, the Rights Agent and the registered holders of the Rights (and, if prior to the Distribution Date, the holders of Common Shares and, if on the Distribution Date, the Unitholders) any legal or equitable right, remedy or claim under this Agreement. This Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the Rights (and, if prior to the Distribution Date, the holders of Common Shares and, if on the Distribution Date, the Unitholders).

 

    	 	37	 

     

    

 

 30.           Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, null and void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided, that if any excluded terms, provisions, covenants or restrictions shall materially and adversely affect the rights, immunities, liabilities, duties, responsibilities or obligations of the Rights Agent, the Rights Agent shall be entitled to resign upon ten (10) Business Days’ written notice to the Company.

 

 31.           Governing Law. This Agreement and each Right Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Maryland and for all purposes shall be governed by and construed in accordance with the laws of such state applicable to contracts to be made and performed entirely within such state, except that the rights, duties, immunities and obligations of the Rights Agent shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within the State of New York.

 

 32.           Counterparts. This Agreement may be executed in any number of counterparts, and each counterparts shall for all purposes be deemed to be an original, and all counterparts shall together constitute but one and the same instrument. A signature to this Agreement transmitted electronically shall have the same authority, effect and enforceability as an original signature.

 

 33.           Descriptive Headings. Descriptive headings of the sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.

 

 34.           Administration. Without limiting any of the rights, duties, immunities and obligations of the Rights Agent, the Board of Directors shall have the exclusive power and authority to administer and interpret the provisions of this Agreement and to exercise all rights and powers specifically granted to the Board of Directors or the Company or as may be necessary or advisable in the administration of this Agreement. Without limiting any of the rights, duties, immunities and obligations of the Rights Agent, all such actions, calculations, determinations and interpretations which are done or made by the Board of Directors in good faith shall be final, conclusive and binding on the Company, the Rights Agent, holders of the Rights and all other parties and shall not subject the Board of Directors to any liability to the holders of the Rights. The Rights Agent shall always be entitled to assume that the Board of Directors acted in good faith and shall be fully protected and incur no liability in reliance thereon.

 

 35.           Force Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent will not have any liability for not performing, or a delay in the performance of, any act, duty, obligation or responsibility by reason of any occurrence beyond the reasonable control of the Rights Agent (including, without limitation, any act or provision of any present or future law or regulation or government authority, any act of God, pandemic, epidemic, war, civil or military disobedience or disorder, riot, terrorism, fire, earthquake, storm, flood, strike, work stoppage or similar occurrence).

 

    	 	38	 

     

    

 

 36.           REIT Status. Notwithstanding anything in this Agreement to the contrary, no Right shall be exercisable if the exercise or exercisability of the Right could, in the judgment of the Board of Directors based on the advice of counsel, result in the Company failing to qualify as a REIT.

 

 37.           Further Assurance by Company. The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement.

 

[Signature Pages Follow] 

 

    	 	39	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

 

	 	Healthcare Trust, Inc.
	 	 	 
	 	By:	/s/ Edward M. Weil, Jr.
	 	 	Name:	Edward M. Weil, Jr.
	 	 	Title:	Chief Executive Officer and President
	 	 	 
	 	Computershare Trust Company, N.A., as Rights Agent
	 	 	 
	 	By:	/s/ Cosmo Zagare
	 	 	Name:	Cosmo Zagare
	 	 	Title:	Vice President, Client Services

 

 

 

[Signature Page to Rights Agreement]

 

     

     

    

 

EXHIBIT A

 

Form of Right Certificate

 

	
        Certificate No. R-
	
         

        
	
        Rights

 

NOT EXERCISABLE AFTER THE FINAL EXPIRATION
DATE (AS SUCH TERM IS DEFINED IN THE RIGHTS AGREEMENT) OR EARLIER IF REDEMPTION, EXCHANGE OR TERMINATION OCCURS. THE RIGHTS ARE
SUBJECT TO REDEMPTION AT $0.000001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES,
AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS THAT ARE OR WERE ACQUIRED OR BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR ANY ASSOCIATE
OR AFFILIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL
AND VOID AND WILL NO LONGER BE TRANSFERABLE.

 

Right Certificate

 

Healthcare Trust, Inc.,

 

a Maryland corporation

 

This certifies that ,
or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof,
subject to the terms, provisions and conditions of the Rights Agreement dated as of May 18, 2020, as may be amended from time to
time (the “Rights Agreement”), between Healthcare Trust, Inc., a Maryland corporation (the “Company”),
and Computershare Trust Company, N.A., a federally chartered trust company (and any successor rights agent thereto, the “Rights
Agent”), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights
Agreement) and prior to the Final Expiration Date (as such term is defined in the Rights Agreement) or earlier under certain circumstances
set forth in the Rights Agreement, at the office of the Rights Agent designated for such purposes, or at the office of its successor
as Rights Agent, one fully paid non-assessable share of common stock, par value $0.01 per share (the “Common Share”),
of the Company, at a purchase price of $31.50 per Common Share (the “Purchase Price”), upon presentation and
surrender of this Right Certificate with the Form of Election to Purchase duly executed. The number of Rights represented by this
Right Certificate (and the number of Common Shares which may be purchased upon exercise hereof) set forth above, and the Purchase
Price set forth above, are the number and Purchase Price as of May 18, 2020, based on the Common Shares as constituted at such
date. As provided in the Rights Agreement, the Purchase Price and the number of Common Shares (or other securities or property)
which may be purchased upon the exercise of the Rights represented by this Right Certificate are subject to modification and adjustment
upon the happening of certain events.

 

From and after a person
or entity becomes an Acquiring Person (as such term is defined in the Rights Agreement), if the Rights evidenced by this Rights
Certificate are beneficially owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person (as such terms
are defined in the Rights Agreement), (ii) a transferee of an Acquiring Person (or of any Associate or Affiliate thereof) who becomes
a transferee after the Acquiring Person became such or (iii) under certain circumstances specified in the Rights Agreement, a transferee
of an Acquiring Person (or of any Associate or Affiliate thereof) who becomes a transferee prior to or concurrently with the Acquiring
Person’s becoming such, these Rights shall become null and void and no holder hereof shall have any right with respect to
such Rights. On and after the Distribution Date, any Right, the exercise or exchange of which would cause a Person to become an
Acquiring Person, shall become null and void.

 

    	 	A-1	 

     

    

 

This Right Certificate
is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are incorporated
herein by this reference and made a part hereof, and to which Rights Agreement reference is made for a full description of the
rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of
the Right Certificates. Copies of the Rights Agreement are on file at the principal executive offices of the Company and the offices
of the Rights Agent. The Company will mail to the holder(s) of this Rights Certificate a copy of the Rights Agreement without charge
after receipt of a written request therefor.

 

This Right Certificate,
with or without other Right Certificates, upon surrender at the office of the Rights Agent designated for such purpose, may be
exchanged for another Right Certificate or Right Certificates of like tenor and date representing Rights entitling the holder to
purchase a like aggregate number of Common Shares as the Rights represented by the Right Certificate or Right Certificates surrendered
shall have entitled such holder to purchase. If this Right Certificate shall be exercised in part, the holder shall be entitled
to receive upon surrender hereof another Right Certificate or Right Certificates for the number Rights not exercised, subject to
the Section 14 of the Rights Agreement relating to fractional shares.

 

Subject to the provisions
of the Rights Agreement, at the Company’s option, the Rights represented by this Certificate may be redeemed or exchanged
in accordance with Section 23 and Section 24, respectively, of the Rights Agreement.

 

The Company is not required
to issue fractional Common Shares upon the exercise of any Right or Rights represented hereby, and in lieu thereof a cash payment
will be made, as provided in the Rights Agreement.

 

No holder of this Right
Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Common Shares
or of any other securities of the Company which may at any time be issuable on the exercise or exchange hereof, nor shall anything
contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder
of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders
(except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or
Rights represented by this Right Certificate shall have been exercised or exchanged as provided in the Rights Agreement.

 

This Right Certificate
shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent.

 

    	 	A-2	 

     

    

 

IN WITNESS the facsimile
signature of the proper officers of the Company and its corporate seal. Dated as of                      ,                  .

 

	Attest: 	Healthcare Trust, Inc. 
	 	 
	 	 
	 	 	By: 	 	(Seal) 
	 	 	 
	 	 	 
	Countersigned: 	 	 
	 	 	 
	 	 	 	 
	Rights Agent 	 	 
	 	 	 
	 	 	 
	By: 	 	 	 	 
	 	Authorized Signature 	 	 
	 	 	 	 	 	 

 

    	 	A-3	 

     

    

 

Form of Reverse Side of Right Certificate

 

FORM OF ASSIGNMENT

 

(To be executed by the registered holder
if such holder desires to transfer the Rights represented by the Rights Certificate.)

 

FOR VALUE RECEIVED, ___________
hereby sells, assigns and transfers unto

 

_____________________________________________________________________

(Please print name and address of transferee)

 

[all] [ ] of the Rights represented by
this Right Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint
__________, Attorney, to transfer said Rights on the books of the within-named Company, with full power of substitution.

 

	Date: 	 	 	 
	 	Signature 

  

Signature Guaranteed:

 

Signatures must be guaranteed
by an eligible guarantor institution (bank, stock broker or savings and loan association with membership in an approved signature
medallion program).

 

	
        
	
         

 

The undersigned hereby
certifies that the Rights represented by this Right Certificate are not beneficially owned by and were not acquired by the undersigned
from, and are not being assigned to, an Acquiring Person or an Affiliate or Associate thereof and are not issued with respect to
notional Common Shares related to a Derivative Interest described in Section 1.6.4 of the definition of Beneficial Owner (as such
terms are defined in the Rights Agreement).

 

	 	 
	 	Signature 

 

	 	 

 

    	 	A-4	 

     

    

 

Form of Reverse Side of Right Certificate
 — continued

 

FORM OF ELECTION TO PURCHASE

 

(To be executed if holder desires to exercise
Rights represented by the Right Certificate.)

 

To Healthcare Trust, Inc.:

 

The undersigned hereby
irrevocably elects to exercise Rights represented by this Right Certificate to purchase the Common Shares (or other securities
or property) issuable upon the exercise of such Rights and requests that certificates for such Common Shares (or other securities
or property) be issued in the name of:

 

Please insert Social Security or other identifying number: _______________________________

	
          

         

	
        (Please print
name and address)

         

        Exercise of Rights (select applicable provision)

 ̈pursuant to Section 7.1 of the Rights Agreement

 ̈pursuant to Section 11.1.2 of the Rights Agreement

 ̈pursuant to Section 13 of the Rights Agreement

 

If such number of Rights shall not be all
the Rights represented by this Right Certificate, a new Right Certificate for the balance remaining of such Rights shall be registered
in the name of and delivered to:

 

Please insert Social Security or other identifying number: _______________________________

	
         

         

	
        (Please print name and address)

         

	 

 

 

	
        Dated: ____________, ___________

         
	 
	 	Signature 

(Signature must conform to the holder specified
on the Right Certificate)

 

Signature Guaranteed:

 

Signatures must be guaranteed
by an eligible guarantor institution (bank, stock broker or savings and loan association with membership in an approved signature
medallion program). 

 

    	 	A-5	 

     

    

 

Form of Reverse Side of Right Certificate
 — continued

 

	
         

         
	
         

         

 

The undersigned hereby
certifies that the Rights represented by this Right Certificate are not beneficially owned by, were not acquired by the undersigned
from and are not being assigned to, an Acquiring Person or an Affiliate or Associate thereof and are not issued with respect to
notional Common Shares related to a Derivative Interest described in Section 1.6.4 of the definition of Beneficial Owner (as such
terms are defined in the Rights Agreement).

 

 

	
         

         
	
        Signature

         

 

	
         

         
	
         

         

 

NOTICE

 

The signature in the
foregoing Forms of Assignment and Election to Purchase must conform to the name as written upon the face of this Right Certificate
in every particular, without alteration or enlargement or any change whatsoever.

 

In the event the certification
set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, such assignment
or election to purchase will not be honored.

 

    	 	A-6	 

     

    

 

EXHIBIT B

 

UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH
IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE
RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF, AMONG OTHERS, WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

 

SUMMARY OF RIGHTS TO PURCHASE

 

COMMON SHARES

 

On _________, Healthcare
Trust, Inc., a Maryland corporation (the “Company”), declared a dividend of one common share purchase right
(a “Right”) for each outstanding share of common stock, par value $0.01 per share (the “Common Stock”),
of the Company outstanding on _________ (the “Record Date”) to the holders of record of Common Stock on that
date. Each Right entitles the registered holder to purchase from the Company one share of Common Stock of the Company (the “Common
Share”), at a price of $31.50 per Common Share represented by a Right (the “Purchase Price”), subject
to adjustment. The description and terms of the Rights are set forth in a Rights Agreement (the “Rights Agreement”),
dated as of May 18, 2020, as the same may be amended from time to time, between the Company and Computershare Trust Company, N.A.,
a federally chartered trust company, as Rights Agent.

 

DETACHMENT AND TRANSFER OF RIGHTS

 

Until the close of
business on the 10th business day following a public announcement that a person or group of affiliated or associated persons has
become an “Acquiring Person” (as defined in the Rights Agreement) or when a majority of the Board of Directors
becomes aware of the existence of an Acquiring Person (the earlier of such dates, the “Stock Acquisition Date”),
or, in the event the Board of Directors determines on or before the 10th business day to effect an exchange in accordance
with Section 24 of the Rights Agreement and determines that a later date is advisable, then the later date determined by the Board
of Directors (the “Distribution Date,” provided, however, that the Distribution Date will in no event
be prior to the Record Date; provided, further, that the Board of Directors may determine to delay the occurrence of the
Distribution Date until the Board of Directors determines based on the advice of counsel that the exercise or exercisability of
the Right would not result in the Company failing to qualify as a REIT), the Rights will be represented, with respect to any of
the Common Stock certificates outstanding as of the Record Date, by the Common Stock certificate (or book-entry Common Shares)
with a copy of this Summary of Rights attached thereto. In general, an “Acquiring Person” is a person, the affiliates
or associates of the person, or a group, that has acquired beneficial ownership of 2.0% or more of the outstanding Common Shares,
subject to certain exceptions, including, among other things, that certain “Exempt Persons” and “Passive
Investors,” each as defined in the Rights Agreement, may have greater beneficial ownership without becoming an “Acquiring
Person.” In addition, certain inadvertent acquisitions will not trigger the occurrence of the Distribution Date. In the
event the Common Shares are listed on the New York Stock Exchange, Inc. or The NASDAQ Stock Market LLC, the 2.0% threshold will
increase to a threshold of 4.9% effective upon the commencement of trading.

 

    	 	B-1	 

     

    

 

Securities “Beneficial
Owned” by a person, together with its affiliates and associates, include (i) any securities beneficially owned, directly
or indirectly, within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934, as amended, (ii) except under limited circumstances,
securities with respect to which the person, or any of its affiliates or associates, has the right or obligation to acquire or
the right to vote pursuant to any agreement, arrangement or understanding, (iii) any securities which are beneficially owned, directly
or indirectly, by any other person (or any affiliate or associate of the other person) with which the person, or any of its affiliates
or associates, is Acting in Concert (as defined in the Rights Agreement) with or has any agreement, arrangement or understanding,
whether or not in writing, for the purpose of acquiring, holding, voting (subject to certain limited exceptions) or disposing of
any voting securities of the Company, and (iv) any securities which are the subject of, or the reference securities for, or that
underlie, any derivative securities (as defined under Rule 16a-1 under the Exchange Act) that increase in value as the value of
the underlying equity increases.

 

The Rights Agreement
provides that, until the Distribution Date (or earlier expiration of the Rights), the Rights will be transferred with and only
with the Common Shares. Until the Distribution Date (or earlier redemption or expiration of the Rights), any new Common Stock certificates
issued after the Record Date will contain a notation incorporating the Rights Agreement by reference. Until the Distribution Date
(or earlier redemption or expiration of the Rights), the surrender for transfer of any Common Shares outstanding as of the Record
Date, even without any notation or a copy of this Summary of Rights being attached thereto, will also constitute the transfer of
the Rights associated with the Common Stock. As soon as practicable following the Distribution Date, unless the Company chooses
to use book entry in lieu of physical certificates, separate certificates representing the Rights (“Right Certificates”)
will be mailed to holders of record of the Common Shares as of the close of business on the Distribution Date, and the separate
Right Certificates alone will represent the Rights. If the Company uses book entry in lieu of physical certificates, “Rights
Certificates” will be deemed to mean the uncertificated book entry representing the related Rights.

 

On the Distribution
Date, proper provision will be made by the Company in order to provide each holder (other than the Company) of partnership units
designated as “OP Units” of Healthcare Trust Operating Partnership, L.P., a Delaware limited partnership (the “Partnership”),
with the number of Rights, represented by Right Certificates, as would be issued to the applicable holder as if the Company had
redeemed all of the holder’s partnership units for Common Shares pursuant to the terms and conditions of the agreement of
limited partnership of the Partnership immediately prior to the Distribution Date.

 

EXERCISABILITY OF RIGHTS

 

The Rights are not
exercisable until the Distribution Date. The Rights will expire, unless the Rights are previously redeemed, exchanged or terminated,
on the earlier of May 18, 2023 or, if the Common Shares are listed on the New York Stock Exchange, Inc. or The NASDAQ Stock Market
LLC, 364 days from the commencement of trading.

 

The Purchase Price
payable, and the number of Common Shares or other securities or property issuable, upon exercise of the Rights is subject to adjustment
from time to time to prevent dilution (i) in the event the Company declares a dividend on the Common Shares payable in Common Shares
or effects a subdivision, combination or reclassification of the Common Shares; (ii) in the event the Board of Directors fixes
a record date for the issuance of rights, options or warrants to all holders of the Common Shares entitling them (for a period
expiring within forty-five (45) calendar days after the record date) to subscribe for or purchase Common Shares, or shares having
the same rights, privileges and preferences as the Common Shares (“Equivalent Common Shares”), at a price, or
securities convertible into Common Shares or Equivalent Common Shares with a conversion price, less than the then current market
price of the Common Shares on the record date; or (iii) in the event the Board of Directors fixes a record date for the making
of a distribution to all holders of the Common Shares of evidences of indebtedness or assets (other than a regular periodic cash
dividends, if any, or dividends payable in Common Shares) or subscription rights or warrants (other than those referred to above).

 

    	 	B-2	 

     

    

 

The number of outstanding
Rights and the number of Common Shares issuable upon exercise of each Right are also subject to adjustment in the event of a stock
split of Common Stock or a stock dividend on the Common Stock payable in Common Shares or subdivisions, consolidations or combinations
of the Common Shares occurring, in any such case, prior to the Distribution Date.

 

TRIGGER OF SECTION 11.1.2 AND SECTION 13 EVENTS

 

In the event that any
person becomes an Acquiring Person, unless the event causing the 2.0% threshold to be crossed is a Permitted Offer (as defined
in the Rights Agreement) or a Section 13 Event described below, and the Board of Directors authorizes the Company to issue Rights
Certificates under Section 3.1 of the Rights Agreement (a “Section 11.1.2 Event”), then, each holder of a Right
(except for Rights which have become null and void pursuant to Section 7.6 of the Rights Agreement) shall thereafter have the right
to receive, upon exercise thereof and in lieu of the Common Shares issuable under Section 7.1 of the Rights Agreement, a number
of Common Shares (or, in certain circumstances, cash, property or other securities of the Company) equal to the exercise price
of the Right divided by fifty percent (50%) of the Current Per Share Market Price (as defined in the Rights Agreement) of the Common
Shares at the date of the first occurrence of a Section 11.1.2 Event. However, these Rights will not be exercisable until the Rights
are no longer redeemable by the Company and are also subject to the Company’s exchange right described below. Notwithstanding
any of the foregoing, from and after a Person becomes an Acquiring Person, all Rights that are, or (under certain circumstances
specified in the Rights Agreement) were, Beneficially Owned by any Acquiring Person (or by certain related parties) will be null
and void. On and after the Distribution Date, any Right, the exercise or exchange of which would cause a Person to become an Acquiring
Person, shall become null and void.

 

For example, at an
exercise price of $31.50 per Right, each Right not owned by an Acquiring Person (or by certain related parties) following a Section
11.1.2 Event would entitle its holder to purchase for $31.50 a number of Common Shares (or other consideration, as noted above)
equal to $31.50 divided by one-half of the Current Per Share Market Price (as defined in the Rights Agreement) of the Common Shares.
Assuming that the Current Per Share Market Price of Common Stock is $15.75 at the applicable time, the holder of each valid Right
would be entitled to purchase 4 Common Shares, having an estimated market value of 4 x $15.75, or $63.00, for $31.50.

 

    	 	B-3	 

     

    

 

If, at any time after
the Stock Acquisition Date, (i) the Company consolidates with, or merges with and into, any other person; (ii) any person consolidates
with the Company, or merges with and into the Company, and the Company is the continuing or surviving corporation of the transaction
and, in connection with the transaction, all or part of the Common Shares are or will be changed into or exchanged for stock or
other securities of any other person (or the Company) or cash or any other property; or (iii) the Company sells or otherwise transfers
(or one or more of its subsidiaries sell or otherwise transfer), in one or more transactions, assets or Earning Power aggregating
50% or more of the assets or Earning Power (as defined in the Rights Agreement) of the Company and its subsidiaries (taken as a
whole) to any other person other than the Company or one or more of its wholly owned subsidiaries (each of the foregoing events,
a “Section 13 Event”), then upon the first occurrence of any Section 13 Events, proper provision will be made
so that each holder of a Right (except for Rights which have become null and void pursuant to Section 7.6 of the Rights Agreement)
will thereafter have the right to receive, upon the exercise of a Right and in lieu of the Common Shares issuable under Section
7.1 of the Rights Agreement, the number of shares of common stock of the acquiring company (including the Company as successor
thereto or as the surviving corporation) which equals the exercise price of the Right divided by fifty percent (50%) of the Current
Per Share Market Price (as defined in the Rights Agreement) of the shares of common stock of the acquiring company at the date
of the consummation of the Section 13 Event.

 

EXCHANGE AND REDEMPTION OF RIGHTS

 

At any time after any
person becomes an Acquiring Person, the Board of Directors may authorize the Company to exchange the Rights (except for Rights
which have become null and void pursuant to Section 7.6 of the Rights Agreement), in whole or in part, at an exchange ratio of
one Common Share per Right, subject to adjustment. Notwithstanding the foregoing, to the extent prohibited by Maryland law, the
Board of Directors shall not be empowered to authorize an exchange at any time after an Acquiring Person becomes the Beneficial
Owner of a majority of the Common Shares then outstanding.

 

With certain exceptions,
no adjustment in the Purchase Price will be required unless an adjustment would require an increase or decrease of at least 1%
in such Purchase Price. The Company is not required to issue fractional shares of its stock upon the exercise of Rights, and in
lieu thereof, an adjustment in cash will be made based on the market value of the applicable stock as determined pursuant to Section
14 of the Rights Agreement.

 

At any time prior to
the earlier of (i) the close of business on the fifth (5th) business day following the Distribution Date, or (ii) the Final Expiration
Date, the Company may redeem the Rights in whole, but not in part, at a price of $0.000001 per Right, subject to adjustment (payable
in cash, Common Shares or other consideration deemed appropriate by the Board of Directors). In the event that Continuing Directors
no longer comprise a majority of the Board (a “Section 23.1 Event”), then for a period of 180 days following
the first occurrence of a Section 23.1 Event, the Rights cannot be redeemed unless there are Continuing Directors and a majority
of the Continuing Directors concur with the Board of Directors’ decision to redeem the Rights. Immediately upon the action
of the Company’s Board of Directors ordering redemption of the Rights (with, if required, the concurrence of a majority of
the Continuing Directors), or at a later time as the Board of Directors may establish for the effectiveness of the redemption,
the Rights will terminate and the only right of the holders of Rights will be to receive the $0.000001 per Right redemption price.
The term “Continuing Directors” means any member of the Board of Directors who was a member of the Board of
Directors immediately prior to the date of the Rights Agreement, and any person who is subsequently elected to the Board of Directors
if the person is recommended or approved by a majority of the Continuing Directors, but shall not include an Acquiring Person,
or an affiliate or associate of an Acquiring Person, or any representative or nominee of the foregoing entities.

 

    	 	B-4	 

     

    

 

Until a Right is exercised
or exchanged, the holder thereof, as such, will have no rights as a holder of the Common Stock for which the Right is exercisable
or exchangeable, including, without limitation, the right to vote or to receive dividends.

 

AMENDMENT OF RIGHTS

 

The terms of the Rights
Agreement may be amended by the Board of Directors without the consent of the holders of the Rights provided that, from and after
the Distribution Date, the Rights Agreement may not be amended or supplemented in any manner which would adversely affect the interests
of the holders of Rights (other than an Acquiring Person and its affiliates and associates).

 

ADDITIONAL INFORMATION

 

A copy of the Rights
Agreement has been filed with the Securities and Exchange Commission as an Exhibit to a Current Report on Form 8-K dated May 18,
2020. A copy of the Rights Agreement is available free of charge from the Company. This summary description of the Rights does
not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, which is hereby incorporated
herein by reference.

 

    	 	B-5

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