Document:

Exhibit 10.21

 

 

 

 

 

SUPREME COURT OF BRITISH COLUMBIA

IN THE MATTER OF A PLAN OF ARRANGEMENT
UNDER

SECTION 288 OF THE BUSINESS CORPORATIONS ACT, S.B.C. 2002, c.57

AND IN THE MATTER OF A PROPOSED ARRANGEMENT
OF IANTHUS CAPITAL HOLDINGS, INC. 

AND IANTHUS CAPITAL MANAGEMENT, LLC, AND
INVOLVING S8 RENTAL SERVICES, LLC, 

MPX BIOCEUTICAL ULC, BERGAMOT PROPERTIES,
LLC, IANTHUS HOLDINGS FLORIDA, LLC, 

GROWHEALTHY PROPERTIES, LLC, FALL RIVER DEVELOPMENT
COMPANY, LLC, CGX LIFE 

SCIENCES INC., GTL HOLDINGS, LLC, IANTHUS
EMPIRE HOLDINGS, LLC, AMBARY, LLC, 

PAKALOLO, LLC, IANTHUS ARIZONA, LLC, S8 MANAGEMENT,
LLC, SCARLET GLOBEMALLOW, LLC, GHHIA MANAGEMENT, INC., MCCRORY’S 

SUNNY HILL NURSERY, LLC, 

IA IT, LLC, PILGRIM ROCK MANAGEMENT, LLC,
MAYFLOWER 

MEDICINALS, INC., IMT, LLC, 

GREENMART OF NEVADA NLV, LLC, IANTHUS NEW
JERSEY, LLC, IA CBD, LLC, CITIVA MEDICAL, LLC, GRASSROOTS VERMONT MANAGEMENT SERVICES, LLC, AND FWR, INC.

 

 

IANTHUS CAPITAL HOLDINGS, INC. AND
IANTHUS CAPITAL MANAGEMENT, LLC

    	 

    	 

    

 

 

 

 

AMENDED AND RESTATED PLAN OF
ARRANGEMENT

 

 

August 6, 2020

 

    	 

    	 

    

TABLE OF CONTENTS

 

	 	 	Page
	ARTICLE 1 INTERPRETATION	1
	1.1	Definitions	1
	1.2	Certain Rules of Interpretation	10
	1.3	Governing Law	11
	1.4	Currency	11
	1.5	Date for Any Action	11
	1.6	Time	11
	ARTICLE 2 TREATMENT OF AFFECTED PARTIES	11
	2.1	Treatment of Secured Noteholders	11
	2.2	Treatment of Unsecured Debenture Holders	12
	2.3	Treatment of Interim Lenders	13
	2.4	Treatment of Existing Equity Holders	13
	ARTICLE 3 ISSUANCES, DISTRIBUTIONS AND PAYMENTS	14
	3.1	Delivery of New Secured Notes and New Unsecured Notes	14
	3.2	Issuance and Delivery of Debt Exchange Common Shares	14
	3.3	No Liability in respect of Deliveries	15
	3.4	Surrender and Cancellation of Secured Notes, Interim Financing Secured Notes and Unsecured Debentures	15
	3.5	Application of Plan Distributions	15
	3.6	Withholding Rights	15
	3.7	No Novation	15
	ARTICLE 4 IMPLEMENTATION	16
	4.1	Corporate Authorizations	16
	4.2	Fractional Interests	16
	4.3	Effective Date Transactions	16
	ARTICLE 5 RELEASES	19
	5.1	Release of Released Parties	19
	ARTICLE 6 CONDITIONS PRECEDENT AND IMPLEMENTATION	20
	6.1	Conditions to Plan Implementation	20
	6.2	Waiver of Conditions	21

 

 

    -i-

     

    

 

 

 

 

 

 

	6.3	Effectiveness	21
	ARTICLE 7 GENERAL	21
	7.1	Deemed Consents, Waivers and Agreements	21
	7.2	Waiver of Defaults	22
	7.3	Paramountcy	22
	7.4	Deeming Provisions	22
	7.5	Modification of Plan	23
	7.6	Notices	23
	7.7	Different Capacities	26
	7.8	Consent of Requisite Consenting Parties	26
	7.9	Further Assurances	26

 

 

    -ii-

     

    

 

 

 

PLAN OF ARRANGEMENT

ARTICLE 1

INTERPRETATION

1.1       Definitions

In this Plan, unless otherwise stated:

“Affected Equity”
means all Existing Equity other than the Existing Shares;

“Affected Equity Claim”
means an equity claim (as defined in Section 2(1) of the Companies’ Creditors Arrangement Act, R.S.C. 1985 c.C-36)
in respect of any iAnthus Party;

“Affected Equityholders”
means the holders of any Affected Equity (including, for greater certainty, the holders of Options and Warrants);

“Amended and Restated
Secured Note Purchase Agreement” means the third amended and restated secured note purchase agreement to be entered into
between ICM, the New Secured Note Guarantors, the New Secured Noteholders and the Collateral Agent, each acting reasonably, which
shall govern the issue of the New Secured Notes with an aggregate principal amount equal to the New Secured Notes Aggregate Principal
Amount, and become effective on the Effective Date in accordance with the sequence set out in Section 4.3;

“Arrangement”
means an arrangement under Section 288 of the BCBCA on the terms and subject to the conditions set out in this Plan, subject to
any amendments or variations thereto made in accordance with the Arrangement Agreement and Section 7.5 of this Plan or made at
the direction of the Court in the Interim Order or the Final Order and with the consent of the Petitioners and the Requisite Consenting
Parties, each acting reasonably;

“Arrangement Agreement”
means the arrangement agreement dated August 6, 2020, between ICH and ICM, as amended, modified and/or supplemented from time to
time in accordance with its terms;

“BCBCA” means
the Business Corporations Act, SBC 2002, c 57, as amended;

“BCBCA Proceedings”
means the proceedings commenced by the Petitioners under the BCBCA in connection with this Plan;

“Business Day”
means any day, other than a Saturday, Sunday or a statutory or civic holiday, on which banks are generally open for business in
Toronto, Ontario, Vancouver, British Columbia or New York, New York;

“CDS” means
the CDS Clearing and Depository Services Inc. and its successors and assigns;

    -1-

     

    

 

 

“Circular”
means the notice for each of the Secured Noteholders’ Meeting, the Unsecured Debenture Holders’ Meeting and the Equityholders’
Meeting, and accompanying management information circular, including all schedules, appendices and exhibits to, and information
incorporated by reference in, such management information circular, to be sent by ICH to the Secured Noteholders, Unsecured Debenture
Holder and Equityholders in connection with the Secured Noteholders’ Meeting the Unsecured Debenture Holders Meeting and
the Equityholders Meeting, respectively, in form and substance acceptable to the Petitioners and the Requisite Consenting Parties;

“Claim” means
any right or claim of any Person that may be asserted or made in whole or in part against the iAnthus Parties, in any capacity,
whether or not asserted or made, in connection with any indebtedness, liability or obligation of any kind whatsoever, and any interest
accrued thereon or costs payable in respect thereof, whether at law or in equity, including by reason of the commission of a tort
(intentional or unintentional), by reason of any breach of contract or other agreement (oral or written), by reason of any breach
of duty (including, any legal, statutory, equitable or fiduciary duty) or by reason of any equity interest, right of ownership
of or title to property or assets or right to a trust or deemed trust (statutory, express, implied, resulting, constructive or
otherwise), and together with any security enforcement costs or legal costs associated with any such claim, and whether or not
any indebtedness, liability or obligation is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured, unsecured, perfected, unperfected, present or future, known or unknown, by guarantee,
warranty, surety or otherwise, and whether or not any right or claim is executory or anticipatory in nature, including any claim
made or asserted against the iAnthus Parties through any affiliate, subsidiary, associated or related person, or any right or ability
of any Person to advance a claim for an accounting, reconciliation, contribution, indemnity, restitution or otherwise with respect
to any matter, grievance, action (including any class action or proceeding before an administrative tribunal), cause or chose in
action, whether existing at present or commenced in the future;

“Closing Certificate”
means a certificate in the form attached hereto as Appendix “A” which, when signed by an authorized representative
of the Petitioners, each of the Initial Supporting Unsecured Debenture Holders and the Collateral Agent (for and on behalf of the
Secured Lenders), will constitute acknowledgment by such Persons that this Plan has been implemented to their respective satisfaction;

“Collateral Agent”
means the collateral agent for the Secured Notes or New Secured Notes, as the context requires, being Gotham Green Admin 1, LLC,
or its successors or assigns;

“Company Advisors”
means McMillan LLP, Duane Morris LLP, Lax O’Sullivan Lisus Gottlieb LLP, FTI Consulting Canada Inc. and its counsel, and
Canaccord Genuity Corp.;

“Court” means
the Supreme Court of British Columbia;

“CSE” means
the Canadian Securities Exchange;

    -2-

     

    

 

 

“Debt Exchange Common
Shares” means the 6,072,579,699 common shares in the capital of ICH to be issued to the Secured Lenders and Unsecured
Debenture Holders pursuant to the Plan;

“Debtholder Claims”
means, collectively, the Interim Lender Claims, the Secured Noteholder Claims and the Unsecured Debenture Holder Claims;

“Direct Registration
System” means an electronic register of the Shares maintained by a transfer agent selected by ICH;

“Distribution Record
Date” means a date to be mutually determined by ICH and the Requisite Consenting Parties for purposes of distributions
under this Plan;

“DTC” means
the Depository Trust & Clearing Corporation and its successors and assigns;

“Effective Date”
means the date shown on the Closing Certificate;

“Effective Time”
means the time on the Effective Date specified as the “Effective Time” on the Closing Certificate;

“Equityholders”
means the Shareholders, the holders of Options and the holders of Warrants;

“Equityholders’
Arrangement Resolution” means the resolution of the Equityholders relating to the Arrangement considered at the Equityholders’
Meeting, substantially in the form attached as Appendix C to the Circular;

“Equityholders’
Meeting” means the meeting of the Equityholders as of the Record Date to be called and held pursuant to the Interim Order
for the purpose of considering and voting on the Equityholders’ Arrangement Resolution and to consider such other matters
as may properly come before such meeting and includes any adjournment(s) or postponements) of such meeting;

“Existing Board”
means the board of directors of ICH as at the date hereof. For the avoidance of doubt, the Existing Board is comprised of eight
directors with three vacancies and the following five directors in place: (i) Joy Chen, (ii) Dianne M. Ellis, (iii) Randy Maslow
(iv) Michael P. Muldowney, and (v) Robert M. Whelan Jr.;

“Existing Equity”
means all of the equity of ICH and any other interest in or entitlement to shares or units in the capital of ICH existing immediately
prior to the Effective Time, including, without limitation, any and all Existing Shares, Options, Warrants, preferred shares, conversion
privileges, calls, subscriptions, exchangeable securities or other rights, plans (including stock option plans, restricted share
unit plans and deferred share unit plans), agreements, arrangements or commitments (pre-emptive, contingent or otherwise) obligating
ICH to issue or sell shares in the capital of ICH or any securities or obligations of any kind convertible into or exchangeable
from such shares;

“Existing Equity Holders”
means the holders of any Existing Equity;

    -3-

     

    

 

 

“Existing Shareholders”
means, as the context requires, Registered Shareholders or beneficial holders of the Existing Shares, in their capacities as such;

“Existing Shares”
means all Shares that are issued and outstanding prior to the Effective Time;

“Final Order”
means the Order of the Court approving the Arrangement under Section 291 of the BCBCA, which shall include such terms as may be
necessary or appropriate to give effect to the Arrangement and this Plan, in form and substance acceptable to the Petitioners and
the Requisite Consenting Parties, each acting reasonably;

“Governmental Entity”
means any government, regulatory authority, governmental department, agency, commission, bureau, official, minister, Crown corporation,
court, board, tribunal or dispute settlement panel or other law, rule or regulation-making organization or entity: (i) having or
purporting to have jurisdiction on behalf of any nation, province, territory, state, municipality or any other geographic or political
subdivision of any of them; or (ii) exercising, or entitled or purporting to exercise any administrative, executive, judicial,
legislative, policy, regulatory or taxing authority or power;

“Guarantors”
means the guarantors under the Secured Note Purchase Agreement, being collectively, ICH, S8 Rental Services, LLC, MPX Bioceutical
ULC, Bergamot Properties, LLC, iAnthus Holdings Florida, LLC, GrowHealthy Properties, LLC, Fall River Development Company, LLC,
CGX Life Sciences Inc., GTL Holdings, LLC, iAnthus Empire Holdings, LLC, Ambary, LLC, Pakalolo, LLC, iAnthus Arizona, LLC, S8 Management,
LLC, Scarlet Globemallow, LLC, GHHIA Management, Inc., McCrory’s Sunny Hill Nursery, LLC, iA IT, LLC, Pilgrim Rock Management,
LLC, Mayflower Medicinals, Inc., IMT, LLC, GreenMart of Nevada NLV, LLC, iAnthus New Jersey, LLC, iA CBD, LLC, Citiva Medical,
LLC, Grassroots Vermont Management Services, LLC, and FWR, Inc.;

“iAnthus Parties”
means, collectively, ICH, ICM, the other Guarantors and any non-Guarantor subsidiaries of ICH or ICM;

“iAnthus Released Parties”
means, collectively, (i) the iAnthus Parties, (ii) each of their respective officers, directors, employees holding office or employed
as of the commencement of the Strategic Review Process (as defined in Affidavit #1 of Julius Kalcevich dated August 4,2020) on
April 6, 2020, in each case, including in any such individual’s former capacity as an officer, director or employee of any
iAnthus Party, and (iii) each financial advisor and legal counsel that advised the iAnthus Parties in respect of the Strategic
Review Process (as defined in Affidavit #1 of Julius Kalcevich dated August 4, 2020), Support Agreement, Plan and BCBCA Proceedings;

“ICH” means
iAnthus Capital Holdings, Inc.;

“ICM” means
iAnthus Capital Management, LLC;

“ICM Membership Interests”
means the membership interests in ICM;

    -4-

     

    

 

 

“Initial Supporting Unsecured
Debenture Holder Advisors” means Cassels Brock & Blackwell LLP, Stikeman Elliott LLP and such other advisors to the
Initial Supporting Unsecured Debenture Holders as agreed to with ICH from time to time;

“Initial Supporting Unsecured
Debenture Holders” means those Unsecured Debenture Holders who were initial signatories to the Support Agreement, being
each of (i) Senvest Master Fund, L.P., Senvest Global (KY), LP (together, “Senvest”), (ii) Oasis Investments
II Master Fund Ltd. (“Oasis”), and (iii) Hadron Alpha PLC - Hadron Alpha Select Fund, and Hadron Healthcare
and Consumer Special Opportunities Master Fund (together, “Hadron”), which holders hold in aggregate not less
than 75% of the aggregate principal amount of Unsecured Debentures held by all Unsecured Debenture Holders;

“Interim Financing”
means the secured non-revolving credit facility provided by the Interim Lenders to ICM pursuant to the Secured Note Purchase Agreement
and the issuance of the Interim Financing Secured Notes with an initial principal amount equal to the Interim Financing Principal
Amount;

“Interim Financing Principal
Amount” means $14,736,842.11;

“Interim Financing Secured
Notes” means the 8.0% senior secured notes, due July 13, 2025 issued under the Secured Note Purchase Agreement;

“Interim Lender Claims”
means any Claim of the Interim Lenders for amounts payable to it under the Secured Note Purchase Agreement, including all principal,
accrued interest, make-whole premium and other amounts owing under the Secured Note Purchase Agreement;

“Interim Lenders”
means Gotham Green Fund II, L.P., Gotham Green Fund II (Q), L.P. and Gotham Green Partners SPV V, L.P. and their permitted successors
and assigns;

“Interim Order”
means the interim order of the Court in respect of the Petitioners pursuant to the BCBCA, in form and substance acceptable to the
Requisite Consenting Parties, which, among other things, calls and sets the date for the Meetings, as such order may be amended
from time to time in a manner acceptable to the Requisite Consenting Parties;

“Intermediary”
means a broker, custodian, investment dealer, nominee, bank, trust company or other intermediary;

“Law” means
any law, statute, order, decree, consent decree, judgment, rule regulation, ordinance or other pronouncement having the effect
of law whether in Canada, the United States, or any other country, or any domestic or foreign state, county, province, city or
other political subdivision or of any Governmental Entity, but excluding all U.S. federal and Canadian federal, provincial or territorial
laws, statutes, codes, ordinances, decrees, rules and regulations which apply to the production, trafficking, distribution, processing,
extraction, sale or any transactions promoting the business or involving the proceeds of marijuana (cannabis) and related substances
(collectively, the “Excluded Laws”), provided, however, that Excluded Laws shall not include any provision of
the U.S. Internal Revenue Code, as amended (the “Code”), including, without limitation, Section 280E of the
Code;

    -5-

     

    

 

 

“Meetings”
means, collectively, (i) the Secured Noteholders’ Meeting, (ii) the Unsecured Debenture Holders’ Meeting, and (iii)
the Equityholders’ Meeting;

“New Board”
means the reconstituted board of directors of ICH at the Effective Time, which shall be comprised of the New Directors;

“New Directors”
means seven (7) directors, comprised as follows: (i) three (3) nominees from the Secured Noteholders; (ii) (a) one (1) nominee
by Oasis, (b) one (1) nominee by Senvest, and (c) one (1) nominee by Hadron; and (iii) the Chief Executive Officer of ICH who shall
be agreed upon by the Secured Noteholders and the Initial Supporting Unsecured Debenture Holders and then appointed by the New
Board;

“New Secured Note Guarantors”
means the guarantors under the Amended and Restated Secured Note Purchase Agreement, being collectively, the Guarantors;

“New Secured Noteholders”
means the holders of New Secured Notes after giving effect to the Plan and shall include the Interim Lenders and the Secured Noteholders;

“New Secured Notes”
means the 8.0% senior secured notes, as amended and restated, due on the date that is five years following the Effective Date,
to be issued by ICM under the Amended and Restated Secured Note Purchase Agreement;

“New Secured Notes Aggregate
Principal Amount” means $99,736,842.11, being the aggregate of the New Secured Notes Base Principal Amount and the Interim
Financing Principal Amount;

“New Secured Notes Base
Principal Amount” means $85,000,000;

“New Unsecured Notes”
means the $20,000,000 aggregate principal amount of 8.0% unsecured debentures, due on the date that is five years following the
Effective Date, to be issued by ICM in connection with the Plan;

“Options” means
options to purchase Shares issued and outstanding under the Stock Option Plan up to and including the Effective Date;

“Order” means
any order of the Court in the BCBCA Proceedings;

“Person” is
to be broadly interpreted and includes any individual, firm, corporation, limited or unlimited liability company, general or limited
partnership, association, trust, unincorporated organization, joint venture, Government Entity or any agency, officer or instrumentality
thereof or any other entity, wherever situate or domiciled, and whether or not having legal status;

“Petitioners”
means, collectively, ICH and ICM;

    -6-

     

    

 

 

“Plan” means
this amended and restated plan of arrangement and any amendments, modifications or supplements hereto made in accordance with the
terms hereof or made at the direction of the Court in the Interim Order or Final Order and with the consent of the Petitioners
and the Requisite Consenting Parties, each acting reasonably;

“Record Date”
means August 6, 2020;

“Registered Shareholder”
means the holder of Shares as recorded on the books and records of ICH or the Transfer Agent;

“Released Claims”
means, collectively, the matters that are subject to release and discharge pursuant to Section 5.1;

“Released Parties”
means, collectively, the iAnthus Released Parties and the Securityholders’ Released Parties;

“Requisite Consenting
Parties” means each of the Initial Supporting Unsecured Debenture Holders and the Secured Noteholders;

“Secured Lender Pro Rata
Share” means, for a Secured Lender, the percentage that (i) the aggregate of the principal amount of Secured Notes (plus
accrued and unpaid interest and fees) and the principal amount of Interim Financing Secured Notes (plus accrued and unpaid interest)
held by the Secured Lender, bears to (ii) the aggregate principal amount of all Secured Notes (plus accrued and unpaid interest
and fees) and the Interim Financing Principal Amount (plus accrued and unpaid interest), in each case as at the Distribution Record
Date;

“Secured Lender”
means each Secured Noteholder and each Interim Lender;

“Secured Note Amendments”
means the amendments to the Secured Note Purchase Agreement to be effected pursuant to the Amended and Restated Secured Note Purchase
Agreement, including those amendments described in the Circular and/or as may otherwise be agreed to by the Petitioners and the
Requisite Consenting Parties, each acting reasonably;

“Secured Note Documents”
means, collectively, (i) the Secured Note Purchase Agreement; and (ii) all related documentation, including, without limitation,
all guarantee and security documentation, certificates and other instruments, related to the foregoing;

“Secured Note Purchase
Agreement” means the second amended and restated secured debenture purchase agreement for the Secured Notes, dated July
10, 2020, by and among ICH, ICM, the other Guarantors, the Secured Noteholders and the Collateral Agent, as amended, modified and/or
supplemented from time to time as of the date hereof;

“Secured Noteholder Advisors”
means Davies Ward Phillips & Vineberg LLP, Honigman LLP, SkyLaw Professional Corporation, and such other advisors to the Secured
Noteholders as agreed to with ICH from time to time;

    -7-

     

    

 

 

“Secured Noteholder Claim”
means any Claim of a Secured Noteholder for amounts payable to it under the Secured Notes and the Secured Note Purchase Agreement,
including all principal, accrued interest, make-whole, premium and other amounts owing under the Secured Notes and the Secured
Note Documents;

“Secured Noteholders”
means the holders of the Secured Notes and their permitted successors and assigns;

“Secured Noteholders’
Arrangement Resolution” means the resolution of the Secured Noteholders relating to the Arrangement to be considered
at the Secured Noteholders’ Meeting, substantially in the form attached as Appendix A to the Circular;

“Secured Noteholders’
Meeting” means the meeting of the Secured Noteholders as of the Record Date to be called and held pursuant to the Interim
Order for the purpose of considering and voting on the Secured Noteholders’ Arrangement Resolution and to consider such other
matters as may properly come before such meeting and includes any adjournment(s) or postponement(s) of such meeting;

“Secured Notes”
means the 13.0% senior secured notes, due May 2021 issued under the Secured Note Purchase Agreement;

“Securityholders’
Released Parties” means, collectively, (i) the Secured Noteholders, the Interim Lenders, the Unsecured Debenture Holders,
the Initial Supporting Unsecured Debenture Holders, and the Collateral Agent and each of their respective limited partners, general
partners and affiliated management companies, (collectively, the “Securityholders”), (ii) each of their respective
officers, directors, employees and controlling persons holding office or employed as of the date of the Support Agreement, in each
case, including in any such individual’s former capacity as an officer, director, employee or controlling person of any Securityholders,
and (iii) the Initial Supporting Unsecured Debenture Holder Advisors and Secured Noteholder Advisors which advised the Securityholders
in respect of the Support Agreement, Plan and BCBCA Proceedings;

“Shareholder”
means a holder of Shares;

“Shares” means
the common shares in the capital of ICH, which, after giving effect to this Arrangement, shall be comprised of the Debt Exchange
Common Shares and the Existing Shares;

“Stock Option Plan”
means ICH’s equity compensation plan effective as of November 2015, as amended and restated on October 15, 2018, and as may
be further amended from time to time;

“Support Agreement”
means the restructuring support agreement among the iAnthus Parties, the Secured Noteholders and the Initial Supporting Unsecured
Debenture Holders dated July 10, 2020 (including, for certainty, the term sheet appended thereto), as may be amended or supplemented
from time to time pursuant to its terms;

“Transfer Agent”
means Computershare Investor Services Inc.;

    -8-

     

    

 

 

“Unsecured Debenture
Documents” means, collectively, (i) Unsecured Debenture Purchase Agreements; and (ii) all related documentation, including,
without limitation, all certificates and other instruments, related to the foregoing;

“Unsecured Debenture
Purchase Agreements” means the debenture purchase agreements for the Unsecured Debentures, dated March 15, 2019 or April
29, 2019, as applicable, by and among ICH and each Unsecured Debenture Holder, as amended, modified and/or supplemented from time
to time as of the date hereof;

“Unsecured Debenture
Holders” means the holders of Unsecured Debentures and their permitted successors and assigns;

“Unsecured Debenture
Holder Claim” means any Claim of an Unsecured Debenture Holder for amounts payable to it under the Unsecured Debentures
and the Unsecured Debenture Purchase Agreements, including all principal, accrued interest, make-whole, premium and other amounts
owing under the Unsecured Debentures and the Unsecured Debenture Documents;

“Unsecured Debenture
Holder Pro Rata Share” means the percentage that the principal amount of Unsecured Debentures held by an Unsecured Debenture
Holder bears to the aggregate principal amount of all Unsecured Debentures as at the Distribution Record Date;

“Unsecured Debenture
Holders’ Arrangement Resolution” means the resolution of the Unsecured Debenture Holders relating to the Arrangement
to be considered at the Unsecured Debenture Holders’ Meeting, substantially in the form attached as Appendix B to the Circular;

“Unsecured Debenture
Holders’ Meeting” means the meeting of the Unsecured Debenture Holders as of the Record Date to be called and held
pursuant to the Interim Order for the purpose of considering and voting on the Unsecured Debenture Holders’ Arrangement Resolution
and to consider such other matters as may properly come before such meeting and includes any adjournments) or postponements) of
such meeting;

“Unsecured Debentures”
means the 8.0% unsecured convertible debentures maturing on March 15, 2023 issued pursuant to one or more Unsecured Debenture Purchase
Agreements between each of the Unsecured Debenture Holders and ICH;

“US Dollars”
or “US$” means the lawful currency of the United States of America;

“US Securities Act”
means the United States Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder,
or any successor statute;

“Voting Agreement”
means the voting agreement to be entered into among ICH, ICM and the Secured Lenders and Initial Supporting Unsecured Debenture
Holders, in form and substance acceptable to the Secured Lenders and the Initial Supporting Unsecured Debenture Holders; and

    -9-

     

    

 

 

“Warrants”
means all of the issued and outstanding warrants to purchase Shares.

1.2       Certain
Rules of Interpretation

For the purposes of this Plan:

		(a)	Unless otherwise expressly provided herein, any reference in this Plan to an instrument, agreement
or an Order or an existing document or exhibit filed or to be filed means such instrument, agreement, Order, document or exhibit
as it may have been or may be amended, modified, or supplemented in accordance with its terms;

		(b)	The division of this Plan into Articles and Sections is for convenience of reference only and does
not affect the construction or interpretation of this Plan, nor are the descriptive headings of Articles and Sections intended
as complete or accurate descriptions of the content thereof;

		(c)	The use of words in the singular or plural, or with a particular gender, including a definition,
shall not limit the scope or exclude the application of any provision of this Plan to such Person (or Persons) or circumstances
as the context otherwise permits;

		(d)	The words “includes” and “including” and similar terms of inclusion shall
not, unless expressly modified by the words “only” or “solely”, be construed as terms of limitation, but
rather shall mean “includes but is not limited to” and “including but not limited to”, so that references
to included matters shall be regarded as illustrative without being either characterizing or exhaustive;

		(e)	Unless otherwise specified, time periods within or following which any payment is to be made or
act is to be done shall be calculated by excluding the day on which the period commences and including the day on which the period
ends;

		(f)	Unless otherwise provided, any reference to a statute or other enactment of parliament, a legislature
or other Government Entity includes all regulations made thereunder, all amendments to or reenactments of such statute or regulations
in force from time to time, and, if applicable, any statute or regulation that supplements or supersedes such statute or regulation;

		(g)	References to a specific Recital, Article or Section shall, unless something in the subject matter
or context is inconsistent therewith, be construed as references to that specific Recital, Article or Section of this Plan, whereas
the terms “this Plan”, “hereof’, “herein”, “hereto”, “hereunder” and
similar expressions shall be deemed to refer generally to this Plan and not to any particular Recital, Article, Section or other
portion of this Plan and include any documents supplemental hereto; and

		(h)	The word “or” is not exclusive.

    -10-

     

    

 

 

1.3       Governing
Law

This Plan shall be governed by and construed
in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein. All questions
as to the interpretation or application of this Plan and all proceedings taken in connection with this Plan and its provisions
shall be subject to the exclusive jurisdiction of the Court.

1.4       Currency

Unless otherwise stated, all references
in this Plan to sums of money are expressed in, and all payments provided for herein shall be made in, United States Dollars.

1.5       Date
for Any Action

If the date on which any action is required
to be taken hereunder by a Person is not a Business Day, such action shall be required to be taken on the next succeeding day which
is a Business Day.

1.6       Time

Time shall be of the essence in this
Plan. Unless otherwise specified, all references to time expressed in this Plan and in any document issued in connection with this
Plan mean local time in Toronto, Ontario, Canada, and any reference to an event occurring on a Business Day shall mean prior to
5:00 p.m. on such Business Day.

ARTICLE 2

TREATMENT OF AFFECTED PARTIES

2.1       Treatment
of Secured Noteholders

		(a)	On the Effective Date, and in accordance with the steps and in the sequence set forth in Section
4.3:

		(i)	the Secured Note Purchase Agreement shall be amended and restated as the Amended and Restated Secured
Note Purchase Agreement, which Amended and Restated Secured Note Purchase Agreement shall include the Secured Note Amendments;

		(ii)	the Secured Noteholders shall receive: (A) New Secured Notes in the amount of their Secured Lender
Pro Rata Share of the New Secured Notes Aggregate Principal Amount; (B) their Secured Lender Pro Rata Share of 25% of the New Unsecured
Notes issued in connection with the Arrangement; and (C) their Secured Lender Pro Rata Share of 50% of the Debt Exchange Common
Shares issued in connection with the Arrangement; and

		(iii)	the Secured Noteholders shall and shall be deemed to irrevocably and finally exchange their Secured
Notes (and all Secured Noteholder Claims thereon) for the number of New Secured Notes, New Unsecured Notes and Debt Exchange Common
Shares provided for in Section 2.1 (a)(ii)(A), (B) and (C);

    -11-

     

    

 

 

		(b)	the issuance of New Secured Notes, New Unsecured Notes and Debt Exchange Common Shares to the Secured
Noteholders pursuant to this Plan has not been and will not be registered under the US Securities Act or the securities laws of
any state of the United States, but will be issued pursuant to the exemption set forth in Section 3(a)(10) of the US Securities
Act.

		(c)	On the Effective Date, all of the reasonable and documented fees and expenses of the Secured Noteholder
Advisors up to and including the Effective Date shall have been paid in full in accordance with the Interim Financing Budget (as
defined in the Support Agreement).

2.2       Treatment
of Unsecured Debenture Holders

		(a)	On the Effective Date and in accordance with the steps and sequence as set forth in Section 4.3,
each Unsecured Debenture Holder shall receive:

		(i)	its Unsecured Debenture Holder Pro Rata Share of 75% of the New Unsecured Notes issued in connection
with the Arrangement; and

		(ii)	its Unsecured Debenture Holder Pro Rata Share of 50% of the Debt Exchange Common Shares issued
in connection with the Arrangement,

which shall, and shall be deemed
to, be received in full and final settlement of its Unsecured Debentures and Unsecured Debenture Holder Claims.

		(b)	After giving effect to the terms of this Section 2.2, the obligations of the iAnthus Parties with
respect to the Unsecured Debentures and the Unsecured Debenture Purchase Agreements shall, and shall be deemed to, have been irrevocably
and finally extinguished, each Unsecured Debenture Holder shall have no further right, title or interest in or to the Unsecured
Debentures or its Unsecured Debenture Holder Claim, and the Unsecured Debentures and the Unsecured Debenture Purchase Agreements
shall be cancelled.

		(c)	The issuance of New Unsecured Notes and Debt Exchange Common Shares in exchange for Unsecured Debentures
and Unsecured Debenture Holder Claims pursuant to this Plan has not been and will not be registered under the US Securities Act
or the securities laws of any state of the United States, but will be issued pursuant to the exemption set forth in Section 3(a)(10)
of the US Securities Act.

		(d)	On the Effective Date, all of the reasonable and documented fees and expenses of the Initial Supporting
Debenture Holders’ Advisors up to and including the Effective Date shall have been paid in full in accordance with the Interim
Financing Budget (as defined in the Support Agreement).

    -12-

     

    

 

 

2.3       Treatment
of Interim Lenders

		(a)	On the Effective Date, and in accordance with the steps and in the sequence set forth in Section
4.3:

		(i)	the Secured Note Purchase Agreement shall be amended and restated as the Amended and Restated Secured
Note Purchase Agreement, which Amended and Restated Secured Note Purchase Agreement shall include the Secured Note Amendments;

		(ii)	the Interim Lenders shall receive: (A) New Secured Notes in the amount of their Secured Lender
Pro Rata Share of the New Secured Notes Aggregate Principal Amount; (B) their Secured Lender Pro Rata Share of 25% of the New Unsecured
Notes issued in connection with the Arrangement; and (C) their Secured Lender Pro Rata Share of 50% of the Debt Exchange Common
Shares issued in connection with the Arrangement; and

		(iii)	the Interim Lenders shall and shall be deemed to irrevocably and finally exchange their Interim
Financing Secured Notes (and all Interim Lender Claims thereon) for the number of New Secured Notes, New Unsecured Notes and Debt
Exchange Common Shares provided for in Section 2.3(a)(ii)(A), (B) and (C).

		(b)	The issuance of New Secured Notes, New Unsecured Notes and Debt Exchange Common Shares to the Interim
Lenders in exchange for the Interim Financing Secured Notes and Interim Lender Claims pursuant to this Plan has not been and will
not be registered under the US Securities Act or the securities laws of any state of the United States, but will be issued pursuant
to the exemption set forth in Section 3(a)(10) of the US Securities Act.

2.4       Treatment
of Existing Equity Holders

		(a)	Each Existing Shareholder shall retain its Existing Shares, such that Existing Shareholders shall
hold in aggregate 2.75% of the Shares of ICH issued and outstanding immediately following the implementation of this Plan.

		(b)	Pursuant to this Plan and in accordance with the steps and sequences set forth herein, all of the
Affected Equity shall be terminated and cancelled and shall be deemed to be terminated and cancelled without the need for any repayment
of capital thereof or any other liability, payment or compensation therefor and, for greater certainty, no Affected Equityholders
shall be entitled to receive any interest, dividends, premium or other payment in connection therewith.

		(c)	The Affected Equity Claims shall be released in the manner set forth in Section 5.1.

    -13-

     

    

 

 

ARTICLE 3

ISSUANCES, DISTRIBUTIONS AND PAYMENTS

3.1       Delivery
of New Secured Notes and New Unsecured Notes

		(a)	The delivery of the New Secured Notes to be issued to the New Secured Noteholders pursuant to the
Plan shall be made by way of directly registered certificates in respect of the New Secured Notes and delivered directly to the
New Secured Noteholders.

		(b)	The delivery of the New Unsecured Notes to be issued to the Secured Lenders and the Unsecured Debenture
Holders pursuant to the Plan shall be made by way of directly registered certificates in respect of the New Unsecured Notes and
delivered directly to the Secured Lenders and the Unsecured Debenture Holders.

3.2       Issuance
and Delivery of Debt Exchange Common Shares

		(a)	On the Effective Date, all Debt Exchange Common Shares issued in connection with this Plan shall
be deemed to be duly authorized, validly issued, fully paid and non-assessable.

		(b)	On the Effective Date, ICH shall deliver a treasury direction to the Transfer Agent that directs
the Transfer Agent to issue all Debt Exchange Common Shares to be distributed under this Plan and direct the Transfer Agent to
cause such Debt Exchange Common Shares to be distributed on the Effective Date (or such other date as the Petitioners and Requisite
Consenting Parties may agree, each acting reasonably).

		(c)	The delivery of Debt Exchange Common Shares will be made, at the recipient’s option, either
(i) through the facilities of DTC and/or CDS to Intermediaries who, in turn, will make delivery of the Debt Exchange Common Shares
to the ultimate beneficial recipients thereof pursuant to standing instructions and customary practices of DTC and/or CDS, or (ii)
by providing Direct Registration System advices or confirmations in the name of the applicable recipient thereof (or its Intermediary)
and registered electronically in ICH’s records which will be maintained by the Transfer Agent.

		(d)	The aggregate number of Debt Exchange Common Shares shall be equal to 6,072,579,699 Debt Exchange
Common Shares, subject to Section 4.2 of the Plan; provided that the aggregate number of Debt Exchange Common Shares is calculated
based on the 171,718,192 Existing Shares issued and outstanding as of the Record Date that shall, following the issuance of the
Debt Exchange Common Shares pursuant to this Plan, equal 2.75% of the Shares of ICH issued and outstanding immediately following
the implementation of the Plan. If the number of Existing Shares outstanding on the Distribution Record Date is not 171,718,192,
then the Aggregate Number of Debt Exchange Common Shares shall be amended proportionately by ICH to reflect the aggregate number
of Existing Shares to be actually issued and outstanding on the Effective Date prior to the Effective Time.

    -14-

     

    

 

 

3.3       No
Liability in respect of Deliveries

None of the iAnthus Parties, nor their
respective directors or officers, shall have any liability or obligation in respect of any deliveries, directly or indirectly,
from: (i) DTC and/or CDS, (ii) the Intermediaries; or (iii) any other duly appointed agent, in each case to the ultimate beneficial
recipients of any consideration payable or deliverable by the iAnthus Parties pursuant to this Plan.

3.4       Surrender
and Cancellation of Secured Notes, Interim Financing Secured Notes and Unsecured Debentures

		(a)	On the Effective Date, each of the Secured Noteholders shall surrender, or cause the surrender
of, the certificate(s) representing the Secured Notes to ICM for cancellation in exchange for the consideration payable to Secured
Noteholders under Section 2.1 of this Plan.

		(b)	On the Effective Date, each of the Unsecured Debenture Holders shall surrender, or cause the surrender
of, the certificate(s) representing the Unsecured Debentures to ICH for cancellation in exchange for the consideration payable
to Unsecured Debenture Holders under Section 2.2 of this Plan.

		(c)	On the Effective Date, each of the Interim Lenders shall surrender, or cause the surrender of,
the certificate(s) representing the Interim Financing Secured Notes to ICM for cancellation in exchange for the consideration payable
to Interim Lenders under Section 2.3 of this Plan.

3.5       Application
of Plan Distributions

All amounts paid or payable hereunder
on account of the Debtholder Claims (including, for greater certainty, any securities received hereunder) shall be applied in a
manner acceptable to the Petitioners, the Secured Lenders and the Initial Supporting Unsecured Debenture Holders.

3.6       Withholding
Rights

The Petitioners shall be entitled to
deduct and withhold from any consideration or other amount deliverable or otherwise payable to any Person hereunder such amounts
as the Petitioners are required to deduct or withhold with respect to such payment under the Income Tax Act (Canada), or any provision
of any applicable federal, provincial, state, local or foreign tax law or treaty, in each case, as amended. To the extent that
amounts are so deducted or withheld, such deducted or withheld amounts shall be treated for all purposes hereof as having been
paid to the relevant Person in respect of which such deduction and withholding was made, provided that such deducted or withheld
amounts are actually remitted to the appropriate Governmental Entity.

3.7       No
Novation

For greater certainty, the issuance
of the New Secured Notes pursuant to the Amended and Restated Secured Note Purchase Agreement in exchange for the Secured Notes
and the Interim Financing Secured Notes under this Plan is not intended to result in a novation or the issuance of new indebtedness
of ICH or ICM, but rather the same indebtedness as evidenced by the Remaining Secured Notes, subject to the Secured Note Amendments,
will continue to exist, with full force and effect, in amended form, under the New Secured Notes and the Amended and Restated Secured
Note Purchase Agreement.

    -15-

     

    

 

 

ARTICLE 4

IMPLEMENTATION

4.1       Corporate
Authorizations

The adoption, execution, delivery, implementation
and consummation of all matters contemplated under this Plan involving corporate action of any members of the iAnthus Parties will
occur and be effective as of the Effective Date (or such other date as the Petitioners and the Requisite Consenting Parties may
agree, each acting reasonably), and will be authorized and approved under this Plan and by the Court, where appropriate, as part
of the Final Order, in all respects and for all purposes without any requirement of further action by shareholders, directors or
officers of the iAnthus Parties. All necessary approvals to take actions shall be deemed to have been obtained from the directors
or the shareholders of the iAnthus Parties, as applicable.

4.2       Fractional
Interests

		(a)	No certificates representing fractional Shares shall be allocated under this Plan, and fractional
share interests shall not entitle the owner thereof to vote or to any rights of a Shareholder. Any legal, equitable, contractual
and any other rights or claims (whether actual or contingent, and whether or not previously asserted) of any Person with respect
to fractional Shares pursuant to this Plan shall be rounded up to the nearest whole number.

		(b)	The principal amount of New Secured Notes that each Secured Lender shall be entitled to under this
Plan shall in each case be rounded down to the nearest $0.01 without compensation therefor.

		(c)	The principal amount of New Unsecured Notes that each Secured Lender and each Unsecured Debenture
Holder shall be entitled to under this Plan shall in each case be rounded down to the nearest $0.01 without compensation therefor.

4.3       Effective
Date Transactions

Commencing at the Effective Time, the
following events or transactions will occur, or be deemed to have occurred and be taken and effected, in the following order, in
an uninterrupted sequence, in five minute increments (unless otherwise indicated) and at the times set out in this Section 4.3
(or in such other manner or order or at such other time or times as the Petitioners and the Requisite Consenting Parties may agree,
each acting reasonably), without any further act or formality required on the part of any Person, except as may be expressly provided
herein:

		(a)	All Affected Equity shall be cancelled and extinguished for no consideration.

		(b)	The following shall occur concurrently (unless otherwise indicated):

    -16-

     

    

 

 

		(i)	the aggregate outstanding principal amount of each Secured Lender’s Secured Notes and Interim
Financing Secured Notes, plus all accrued and unpaid interest on such principal amount, shall be forgiven, settled and extinguished
to the extent such amount exceeds the aggregate of: (A) the principal amount of the New Secured Notes to be issued to it in accordance
with Section 4.3(c)(ii)(A); (B) the principal amount of its Secured Lender Pro Rata Share of 25% of the New Unsecured Notes to
be issued to it in accordance with Section 4.3(c)(ii)(B); and (C) the fair market value on the Effective Date of its Secured Lender
Pro Rata Share of 50% of the Debt Exchange Common Shares to be issued to it in accordance with Section 4.3(c)(ii)(C) (the remaining
principal amount of each Secured Lender’s Secured Notes and Interim Financing Secured Notes following such forgiveness, settlement
and extinguishment being, collectively, the “Remaining Secured Notes”); and

		(ii)	the outstanding principal amount of each Unsecured Debenture Holder’s Unsecured Debentures,
plus all accrued and unpaid interest on such principal amount, shall be forgiven, settled and extinguished to the extent such amount
exceeds the aggregate of (A) the principal amount of its Unsecured Debenture Holder Pro Rata Share of 75% of the New Unsecured
Notes to be issued to it pursuant to in accordance with Section 4.3(d)(i); and (B) the fair market value on the Effective Date
of its Unsecured Debenture Holder Pro Rata share of 50% of the Debt Exchange Common Shares to be issued to it in accordance with
Section 4.3(d)(ii) (the remaining principal amount of each Unsecured Debenture Holder’s Unsecured Debentures following such
forgiveness, settlement and extinguishment being the “Remaining Unsecured Debentures”).

		(c)	The following shall occur consecutively:

		(i)	ICM, the New Secured Note Guarantors, the New Secured Noteholders and the Collateral Agent shall
enter into the Amended and Restated Secured Note Purchase Agreement together with all related documentation as agreed by ICM, the
New Secured Note Guarantors, the New Secured Noteholders, the Collateral Agent, and the Initial Supporting Unsecured Debenture
Holders each acting reasonably, which shall amend and restate the Secured Note Purchase Agreement;

		(ii)	in exchange for, and in full and final settlement of, the Remaining Secured Notes, ICH or ICM,
as applicable, shall pay to each Secured Lender:

		(A)	its New Secured Notes in an aggregate principal amount equal to its Secured Lender Pro Rata Share
of the New Secured Notes Aggregate Principal Amount, which New Secured Notes shall be distributed in the manner described in Section
3.1;

    -17-

     

    

 

 

		(B)	its Secured Lender Pro Rata Share of 25% of the New Unsecured Notes to be issued pursuant to the
Plan, which New Unsecured Notes shall be distributed in the manner described in Section 3.1; and

		(C)	its Secured Lender Pro Rata Share of 50% of the Debt Exchange Common Shares to be issued pursuant
to the Plan, which Debt Exchange Common Shares shall be distributed in the manner described in Section 3.2; and

		(d)	Concurrently with the steps set forth in Section 4.3(c) above, in exchange for, and in full and
final settlement of, the Remaining Unsecured Debentures, ICH or ICM, as applicable, shall pay to each Unsecured Debenture Holder:

		(i)	its Unsecured Debenture Holder Pro Rata Share of 75% of the New Unsecured Notes to be issued pursuant
to the Plan, which New Unsecured Notes shall be distributed in the manner described in Section 3.1; and

		(ii)	its Unsecured Debenture Holder Pro Rata Share of 50% of the Debt Exchange Common Shares to be issued
pursuant to the Plan, which Debt Exchange Common Shares shall be distributed in the manner described in Section 3.2.

		(e)	Concurrently with the delivery of the New Unsecured Notes and the Debt Exchange Common Shares to
be issued to the Unsecured Debenture Holders in accordance with Section 4.3(d):

		(i)	the Unsecured Debenture Holder Claims shall, and shall be deemed to be, irrevocably and finally
extinguished and such Unsecured Debenture Holder shall have no further right, title or interest in and to the Unsecured Debentures
or its Unsecured Debenture Holder Claim; and

		(ii)	the Unsecured Debentures and the Unsecured Debenture Documents shall be cancelled, provided that
the Unsecured Debenture Documents shall remain in effect solely to allow the applicable persons, as necessary, to make the distributions
set forth in this Plan.

		(f)	Concurrently with the steps set forth in Section 4.3(c)(ii) above, as consideration for ICH issuing
the Debt Exchange Common Shares to the Secured Lenders pursuant to Section 4.3(c)(ii)(C), ICM shall issue to ICH such number of
ICM Membership Interests as is equal in value to the fair market value on the Effective Date of the Debt Exchange Common Shares
issued to the Secured Lenders pursuant to Section 4.3(c)(ii)(C) of the Plan.

		(g)	Immediately following the issuance of the ICM Membership Interests provided for in Section 4.3(f),
the number of ICM Membership Interests shall be consolidated such that the number of issued and outstanding ICM Membership Interests
will equal the number of ICM Membership Interests that were issued and outstanding immediately prior to the issuances provided
for in Section 4.3(f).

    -18-

     

    

 

 

		(h)	IAH shall pay in full in cash the outstanding reasonable and documented fees and expenses of the
Secured Noteholder Advisors and the Initial Supporting Unsecured Debenture Holder Advisors pursuant to the terms and conditions
of set out in the Support Agreement (except as such terms relate to the timing for payment of such reasonable and documented outstanding
fees and expenses).

		(i)	IAH shall pay in full in cash the outstanding reasonable and documented fees and expenses of the
Company Advisors pursuant to the terms and conditions of applicable fee arrangements entered into by ICH with such advisors (except
as such terms relate to the timing for payment of such reasonable and documented outstanding fees and expenses).

		(j)	The releases referred to in Section 5.1 shall become effective.

		(k)	The Voting Agreement shall become effective.

		(l)	The Existing Board shall be reconstituted through the staggered resignations of all directors of
the Existing Board and the New Board shall be deemed to fill the vacancies created by such resignations without the necessity of
the holding of a further ICH shareholders’ meeting.

ARTICLE 5

RELEASES

5.1       Release
of Released Parties

At the applicable time pursuant to Section
4.3, each of the Released Parties shall be released and discharged from all present and future actions, causes of action, damages,
judgments, executions, obligations, liabilities and Claims of any kind or nature whatsoever (other than liabilities or claims attributable
to such Released Party’s gross negligence, fraud or wilful misconduct as determined by the final judgment of a court of competent
jurisdiction following the exhaustion of all rights of appeal), which:

		(a)	any Person now has, or may have against any of the Released Parties, arising on or prior to the
Effective Date in connection with the Support Agreement, this Plan, the BCBCA Proceedings, the transactions contemplated hereunder
and any proceedings commenced with respect to or in connection with this Plan;

		(b)	are Affected Equity Claims of any other Released Party or of any person that was an Affected Equityholder
or an Existing Shareholder on the Record Date to the extent such Affected Equity Claim arose on or prior to the Effective Date;

		(c)	any other Released Party, or any person that was an Affected Equityholder or an Existing Shareholder
on the Record Date now has, or may have against any of the Released Parties, arising on or prior to the Effective Date in connection
with the Secured Notes, the Secured Note Documents, the Interim Financing, the Interim Financing Secured Notes, the Unsecured Debentures,
the Unsecured Debenture Documents, and the Affected Equity; and

    -19-

     

    

 

 

		(d)	any Person ever had, now has, or may have against any of the iAnthus Released Parties for contribution
and indemnity with respect to all present and future actions, causes of action, damages, judgments, executions, obligations, liabilities
and Claims of any kind or nature whatsoever expressly released hereunder,

provided that, nothing in this paragraph
shall release or discharge any of the Released Parties from or in respect of its obligations under this Plan, the Support Agreement,
and the Amended and Restated Secured Note Purchase Agreement.

ARTICLE 6

CONDITIONS PRECEDENT AND IMPLEMENTATION

6.1       Conditions
to Plan Implementation

The implementation of this Plan shall
be conditional upon the fulfillment, satisfaction or waiver (to the extent permitted by Section 6.2) of the following conditions:

		(a)	The Court shall have granted the Final Order, the operation and effect of which shall not have
been stayed, reversed or amended, and in the event of an appeal or application for leave to appeal, final determination shall have
been made by the applicable appellate court;

		(b)	If determined necessary by ICH and the Requisite Consenting Parties, acting reasonably, the Final
Order shall have been recognized in recognition proceedings pursuant to applicable Law in the United States and all court materials
(including any recognition order granted) in connection with the recognition proceedings shall be in form and substance acceptable
to the Requisite Consenting Parties;

		(c)	No Law shall have been passed and become effective, the effect of which makes the consummation
of this Plan illegal or otherwise prohibited;

		(d)	All conditions to implementation of this Plan set out in the Support Agreement shall have been
satisfied or waived in accordance with their terms and the Support Agreement shall not have been terminated and the iAnthus Parties
and Requisite Consenting Parties shall have delivered a Closing Certificate respecting same;

		(e)	ICH shall be a public company following the implementation of the Plan and the Shares shall be
approved for trading on the CSE, or if necessary, the NEO Exchange Inc. or on another stock exchange acceptable to the Secured
Noteholders and the Initial Supporting Unsecured Debenture Holders, subject only to receipt of customary final documentation; and

		(f)	The Petitioners shall have paid the reasonable and documented fees and expenses of the Company
Advisors, the Secured Noteholder Advisors and the Initial Supporting Unsecured Debenture Holder Advisors up to and including the
Effective Date.

    -20-

     

    

 

 

6.2       Waiver
of Conditions

The Petitioners and the Requisite Consenting
Parties, upon unanimous agreement, may at any time and from time to time waive the fulfillment or satisfaction, in whole or in
part, of the conditions set out herein, to the extent and on such terms as such parties may agree, each acting reasonably, provided
however that the conditions set out in Sections 6.1(a), (c), and (f) cannot be waived.

6.3       Effectiveness

		(a)	This Plan will become effective in the sequence described in Section 4.3 on the execution of the
Closing Certificate, and shall be binding on and enure to the benefit of the iAnthus Parties, the Secured Noteholders, the Unsecured
Debenture Holders, the Interim Lenders, all Existing Equity Holders, the Released Parties, the directors and officers of the iAnthus
Parties and all other Persons named or referred to in, or subject to, this Plan and their respective successors and assigns and
their respective heirs, executors, administrators and other legal representatives, successors and assigns. The Closing Certificate
shall be conclusive evidence that the Arrangement has become effective and that each of the provisions in Section 4.3 has become
effective in the sequence set forth therein. No portion of this Plan shall take effect with respect to any party or Person until
the Effective Time.

		(b)	Notwithstanding the foregoing, to the extent the approval, consent or authorization of any U.S.
state or local Governmental Entity is required under applicable Law to approve the transactions contemplated by this Plan with
respect to any Guarantor, this Plan shall not be effective with respect to such Guarantor until the approval, consent or authorization
of the applicable Governmental Entity(ies) is obtained.

ARTICLE 7

GENERAL

7.1       Deemed
Consents, Waivers and Agreements

At the Effective Time:

		(a)	each Secured Noteholder, Unsecured Debenture Holder, Interim Lender and Existing Equity Holder
shall be deemed to have consented and agreed to all of the provisions of this Plan in its entirety (both as a Secured Noteholder,
Unsecured Debenture Holder, Interim Lender and as a holder of Existing Equity, if applicable);

		(b)	each iAnthus Party, Secured Noteholder, Unsecured Debenture Holder, Interim Lender and Existing
Equity Holder shall be deemed to have executed and delivered to the other parties all consents, releases, assignments and waivers,
statutory or otherwise, required to implement and carry out this Plan in its entirety; and

    -21-

     

    

 

 

		(c)	all consents, releases, assignments and waivers, statutory or otherwise, required to implement
and carry out this Plan in its entirety shall be deemed to have been executed and delivered to the iAnthus Parties.

7.2       Waiver
of Defaults

From and after the Effective Time, all
Persons shall be deemed to have consented and agreed to all of the provisions of this Plan in its entirety. Without limiting the
foregoing, all Persons shall be deemed to have:

		(a)	waived any and all defaults or events of default or any non-compliance with any covenant, warranty,
representation, term, provision, condition or obligation, expressed or implied, in any contract, instrument, credit document, lease,
licence, guarantee, agreement for sale or other agreement, written or oral, in each case relating to, arising out of, or in connection
with, the Secured Notes or the Secured Note Purchase Agreement, the Unsecured Debentures, the Unsecured Debenture Purchase Agreement,
the Secured Note Documents, the Unsecured Debenture Documents, the Interim Financing Secured Notes, the Support Agreement, the
Arrangement, the Arrangement Agreement, this Plan, the transactions contemplated hereunder and any proceedings commenced with respect
to or in connection with this Plan and any and all amendments or supplements thereto. Any and all notices of default and demands
for payment or any step or proceeding taken or commenced in connection with any of the foregoing shall be deemed to have been rescinded
and of no further force or effect, provided that nothing shall be deemed to excuse the iAnthus Parties and their respective successors
from performing their obligations under this Plan; and

		(b)	agreed that, if there is any conflict between the provisions of any agreement or other arrangement,
written or oral, existing between such Person and the iAnthus Parties and the provisions of this Plan, then the provisions of this
Plan take precedence and priority and the provisions of such agreement or other arrangement are deemed to be amended accordingly.

7.3       Paramountcy

From and after the Effective Date, any
conflict between this Plan and the covenants, warranties, representations, terms, conditions, provisions or obligations, expressed
or implied, of any contract, mortgage, security agreement, indenture, trust indenture, loan agreement, commitment letter, by-laws
or other agreement, written or oral, and any and all amendments or supplements thereto existing between one or more of the Secured
Noteholders, the Interim Lenders or the Unsecured Debenture Holders, on the one hand, and any of the iAnthus Parties, on the other
hand, as at the Effective Date shall be deemed to be governed by the terms, conditions and provisions of this Plan and the Final
Order, which shall take precedence and priority.

7.4       Deeming
Provisions

In this Plan, the deeming provisions
are not rebuttable and are conclusive and irrevocable.

    -22-

     

    

 

 

7.5       Modification
of Plan

Subject to the terms and conditions
of the Support Agreement:

		(a)	the Petitioners reserve the right to amend, restate, modify and/or supplement this Plan at any
time and from time to time, provided that (except as provided in subsection (c) below) any such amendment, restatement, modification
or supplement must be contained in a written document that is (i) filed with the Court and, if made following the Meetings, approved
by the Court, (ii) agreed to by each of the Requisite Consenting Parties, and (iii) communicated to the Secured Noteholders, Unsecured
Debenture Holders and Existing Shareholders in the manner required by the Court (if so required);

		(b)	any amendment, modification or supplement to this Plan may be proposed by the Petitioners, with
the consent of each of the Requisite Consenting Parties, at any time prior to or at the Meetings, with or without any prior notice
or communication (other than as may be required under the Interim Order), and if so proposed and accepted at the Meetings, shall
become part of this Plan for all purposes; and

		(c)	any amendment, modification or supplement to this Plan may be made following the Meetings by the
Petitioners, with the consent of each of the Requisite Consenting Parties, and without requiring filing with, or approval of, the
Court, provided that it concerns a matter which is of an administrative nature and is required to better give effect to the implementation
of this Plan and is not materially adverse to the financial or economic interests of any of the Secured Noteholders, Unsecured
Debenture Holders and Existing Shareholders.

7.6       Notices

Any notice or other communication to
be delivered hereunder must be in writing and refer to this Plan and may, as hereinafter provided, be made or given by personal
delivery, ordinary mail or email addressed to the respective parties as follows:

		(a)	If to the Petitioners, or any other of the iAnthus Parties, at:

iAnthus Capital Holdings, Inc.

c/o McMillan LLP

Brookfield Place

181 Bay Street, Suite 4400

Toronto, Ontario

M5J 2T3

Attention:      Wael Rostom, Tushara
Weerasooriya and James Munro

Email:              [Redacted: Personal Contact Information]

    -23-

     

    

 

 

		(b)	If to any of the Secured Lenders or the Collateral Agent:

c/o Gotham Green Partners, LLC

1437 4th Street, Suite 200

Santa Monica, California 90401

Attention:    David Rosenthal

Email:            [Redacted: Personal Contact Information]

with a required copy (which shall
not be deemed notice) to:

Davies Ward Phillips & Vineberg
LLP

155 Wellington Street West

Toronto, Ontario M5V 3J7

Attention:    Robin B. Schwill

Email:            [Redacted: Personal Contact Information]

Honigman LLP

660 Woodward Avenue

2290 First National Building

Detroit, Michigan 48226

Attention:    Michael D. DuBay

Email:            [Redacted: Personal Contact Information]

SkyLaw Professional Corporation

Suite 204, 3 Bridgman Avenue

Toronto, Ontario M5R 3V4

Attention :  Kevin R. West

Email:           [Redacted: Personal Contact Information]

		(c)	If to any of the Supporting Unsecured Debenture Holders (except in respect of Oasis Investments
II Master Fund Ltd.):

Senvest Management LLC

540 Madison Avenue, 32nd Floor

New York, New York 10022

Attention:  Bobby Trahanas

Email:          [Redacted: Personal Contact Information]

and to:

Hadron Capital

5 Royal Exchange Buildings

London, United Kingdom Ec3V 3NL

Attention:  Marco D’Attansio

Email:          [Redacted: Personal Contact Information]

    -24-

     

    

 

 

with a required copy (except in
respect of Oasis Investments II Master Fund Ltd.) (which shall not be deemed notice) to:

Cassels Brock & Blackwell LLP

Suite 2100, 40 King Street West

Scotia Plaza

Toronto, Ontario M5H 3C2

Attention:    Ryan Jacobs, Michael
Wunder and Jeff Roy

Email:            [Redacted: Personal Contact Information]

If to Oasis Investments II Master
Fund Ltd.:

Oasis Management (Hong Kong)

21/F Man Yee Building

68 Des Voeux Road Central

Central, Hong Kong

Attention:  General Counsel

Email:          [Redacted: Personal Contact Information]

and in respect of Oasis Investments
II Master Fund Inc., with a required copy (which shall not be deemed notice) to:

Stikeman Elliott LLP

Suite 5300, 199 Bay Street

Commerce Court West

Toronto, Ontario M5L 1B9

Attention:    Brian M. Pukier and
Ashley Taylor

Email:            [Redacted: Personal Contact Information]

or to such other address as any party
above may from time to time notify the others in accordance with this Section 7.6. In the event of any strike, lock-out or other
event which interrupts postal service in any part of Canada, all notices and communications during such interruption may only be
given or made by personal delivery or by email and any notice or other communication given or made by prepaid mail within the five
Business Day period immediately preceding the commencement of such interruption, unless actually received, shall be deemed not
to have been given or made. Any such notices and communications so given or made shall be deemed to have been given or made and
to have been received on the day of delivery if delivered, or on the day of emailing, provided that such day in either event is
a Business Day and the communication is so delivered or emailed before 5:00 p.m. on such day. Otherwise, such communication shall
be deemed to have been given and made and to have been received on the next following Business Day. The unintentional failure by
the Petitioners to give a notice contemplated hereunder to any particular Noteholder shall not invalidate this Plan or any action
taken by any Person pursuant to this Plan.

    -25-

     

    

 

 

7.7       Different
Capacities

Subject to the Support Agreement and
the Interim Order, if any Person holds more than one type, series or class of Existing Shares, Secured Notes, Interim Financing
Secured Notes or Unsecured Debentures, as the case may be, such Person shall have all of the rights given to a holder of each particular
type, series or class of Existing Shares, Secured Notes, Interim Financing Secured Notes or Unsecured Debentures so held. Subject
to the Support Agreement and the Interim Order, nothing done by a Person acting in its capacity as a holder of a particular type,
series or class of Existing Shares, Secured Notes, Interim Financing Secured Notes or Unsecured Debentures, as the case may be,
affects such Person’s rights as a holder of another type, series or class of Existing Shares, Secured Notes, Interim Financing
Secured Notes or Unsecured Debentures.

7.8       Consent
of Requisite Consenting Parties

For the purposes of this Plan:

		(a)	any matter requiring the agreement, waiver, consent or approval of the Initial Supporting Unsecured
Debenture Holders shall be deemed to have been agreed to, waived, consented to or approved by such Initial Supporting Unsecured
Debenture Holders if such matter is agreed to, waived, consented to or approved in writing by Cassels Brock & Blackwell LLP
(except in respect of Oasis Investments II Master Fund Ltd.) and Stikeman Elliot LLP (only in respect of Oasis Investments II Master
Fund Ltd.), provided that each of Cassels Brock & Blackwell LLP and Stikeman Elliot LLP expressly confirms in writing (which
can be by way of e-mail) that it is providing such agreement, consent, waiver or approval on behalf of the applicable Initial Supporting
Unsecured Debenture Holders; and

		(b)	any matter requiring the agreement, waiver, consent or approval of the Secured Lenders shall be
deemed to have been agreed to, waived, consented to or approved by the Secured Lenders if such matter is agreed to, waived, consented
to or approved in writing by Davies Ward Phillips and Vineberg LLP, provided that Davies Ward Phillips and Vineberg LLP expressly
confirms in writing (which can be by way of e-mail) that it is providing such agreement, consent, waiver or approval on behalf
of the Secured Lender.

7.9       Further
Assurances

Notwithstanding that the transactions
and events set out herein will occur and be deemed to occur in the order set out in this Plan without any further act or formality,
each of the Persons named or referred to in, affected by or subject to, this Plan will make, do and execute, or cause to be made,
done and executed, all such further acts, deeds, agreements, transfers, assurances, instruments or documents as may reasonably
be required by any of them to carry out the full intent and meaning of this Plan and to give effect to the transactions contemplated
herein.

    -26-

     

    

 

APPENDIX “A”

FORM OF CLOSING CERTIFICATE

		RE:	Arrangement Agreement dated August 6, 2020 between iAnthus Capital Holdings, Inc. and iAnthus
Capital Management, LLC (the “Arrangement Agreement”)

 

Defined terms used but not defined in
this certificate shall have the meanings ascribed thereto in the Arrangement Agreement.

Each of the undersigned hereby confirms
that the undersigned is satisfied that the conditions precedent to its respective obligations to complete the Arrangement Agreement,
including but not limited to those conditions precedent set out in the Restructuring Support Agreement dated July 10, 2020 among,
inter alia, the undersigned, have been satisfied and that the Arrangement is completed as of _______________________ (am/pm Toronto
time) (the “Effective Time”) on ________________ (the “Effective Date”).

[signatures pages follow]

[Signatures to be added]

 

 

-27-frln-ex418_2532.htm

Exhibit 4.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REGISTRATION RIGHTS AGREEMENT 

dated as of August 11, 2020 

among 

FREELINE THERAPEUTICS HOLDINGS PLC 

And 

THE SHAREHOLDERS NAMED HEREIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS 

 

	
 
	
 
	
Page

	
 
	
 
	
 

	
Section 1.
	
Defined Terms; Rules of Construction
	
1

	
 
	
1.1
	
Defined Terms
	
1

	
 
	
1.2
	
Rules of Construction
	
8

	
Section 2.
	
Demand Registration
	
8

	
Section 3.
	
Registrations on Form S-3 or F-3
	
10

	
Section 4.
	
Piggyback Registration
	
12

	
Section 5.
	
[RESERVED]
	
13

	
Section 6.
	
Preparation and Filing
	
13

	
Section 7.
	
Expenses
	
16

	
Section 8.
	
Indemnification
	
16

	
Section 9.
	
Underwriting Agreement
	
18

	
Section 10.
	
Suspension
	
19

	
Section 11.
	
Information by Holder
	
19

	
Section 12.
	
Termination
	
20

	
Section 13.
	
Limitation On Other Registration Rights
	
20

	
Section 14.
	
Miscellaneous
	
21

	
 
	
14.1
	
Notices
	
21

	
 
	
14.2
	
Assignment
	
21

	
 
	
14.3
	
Entire Agreement
	
22

	
 
	
14.4
	
Modifications, Amendments and Waivers
	
22

	
 
	
14.5
	
Counterparts
	
22

	
 
	
14.6
	
Governing Law
	
22

	
 
	
14.7
	
Submission to Jurisdiction; Waiver of Jury Trial
	
22

	
 
	
14.8
	
Severability
	
23

	
 
	
14.9
	
No Third Party Beneficiary
	
23

	
 
	
14.10
	
Non-Recourse
	
24

	
 
	
14.11
	
Specific Performance
	
24

	
 
	
14.12
	
Business Days
	
24

	
 
	
14.13
	
Electronic Execution
	
24

	
 
	
14.14
	
Captions
	
24

 

 

 

 

i

 

This Registration Rights Agreement dated as of August 11, 2020 (this “Agreement”), is by and among Freeline Therapeutics Holdings plc (the “Company”) and the shareholders listed in Schedule A hereto (collectively, the “Shareholders”). Capitalized terms used but not defined elsewhere herein have the meanings assigned to them in Section 1.1. 

WHEREAS, the Shareholders are currently party to that certain Shareholders’ Agreement relating to Freeline Therapeutics Holdings Limited (“Freeline”) dated June 29, 2020 (the “Shareholders’ Agreement”) that provides for, among other things, Freeline and the Shareholders to enter into a registration rights agreement, effective no later than the consummation of an IPO (as defined in the Shareholders’ Agreement); 

WHEREAS, as part of the arrangements to enable the Company to consummate an IPO, the Shareholders and the Company desire to enter into this Agreement to set forth the registration rights of the Shareholders with respect to any Registrable Securities held by them. 

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

Section 1. DEFINED TERMS; RULES OF CONSTRUCTION. 

1.1DEFINED TERMS. Capitalized terms used and not otherwise defined in this Agreement have the meanings ascribed to them below: 

“Acorn” means Acorn Bioventures, L.P. a limited partnership registered in the State of Delaware whose registered office is at 420 Lexington Avenue, Suite 2626, New York, NY 10170. 

“Acorn Shareholder(s)” means Acorn and any other person who holds Registrable Securities who is a Member of the same Fund Group or a Member of the same Group as Acorn. 

“Act” means the U.K. Companies Act 2006 (as amended from time to time).  

“Affiliate” means, in relation to one Person, any Person that is, directly or indirectly, (i) Controlled by, (ii) Controlling, or (iii) under common Control with such other Person, as of the date on which, or at any time during the period in which, such affiliate status is determined. 

“Ample Plus” means Ample Plus Fund Limited Partnership, a limited partnership registered in the Cayman Islands (registered number 87824) whose registered office is at c/o Vistra (Cayman) Limited, 802 West Bay Road, Grand Pavilion Commercial Center, George Town, KY1-205, Cayman Islands. 

“Ample Plus Shareholder(s)” means Ample Plus and any other person who holds Registrable Securities who is a Member of the same Fund Group or a Member of the same Group as Ample Plus. 

“Articles” means the articles of association of the Company as amended or superseded from time to time. “Agreement” has the meaning set forth in the preamble hereof. 

“Biomedical” means Wellington Biomedical Innovation Master Investors (Cayman) I L.P., a limited partnership registered in the Cayman Islands having its principal place of business at c/o Wellington Management Company LLP, 280 Congress Street, Boston, MA 02210. 

“Board” means the board of directors of the Company as constituted from time to time. 

 

1

 

“Business Day” means any day other than Saturday, Sunday or a day on which commercial banks are required or authorized by law to remain closed in the City of London or New York, New York. 

“CHI III” means Cowen Healthcare Investments III LP, a limited partnership registered in the State of Delaware (registered number 7520886) whose registered office is at 599 Lexington Avenue, New York, NY 10022.  

“CHI EF” means CHI EF III LP, a limited partnership registered in the State of Delaware (registered number 7538559) whose registered office is at 599 Lexington Avenue, New York, NY 10022.  

“Civil Partner” means in relation to a Shareholder, a civil partner (as defined in the U.K. Civil Partnership Act 2004) of the Shareholder. 

“Company” has the meaning set forth in the preamble hereof. 

“Company Notice” has the meaning set forth in Section 2(a) hereof. 

“Control”  shall have the meaning ascribed in Rule 405 of the Securities Act. The terms “Controlled” and “Controlling” shall be construed accordingly with this definition. 

“Cowen” means, collectively, CHI III and CHI EF.  

“Cowen Shareholder(s)” means Cowen and any other person who holds Registrable Securities who is a Member of the same Fund Group or a Member of the same Group as Cowen. 

“Deemed Liquidation Event” means (a) a merger or consolidation of the Company involving the cessation of the Company’s existence as an independent body corporate (other than a merger or consolidation in which the Company’s shareholders immediately prior to completion of the merger or consolidation continue to be entitled to exercise a majority of the voting rights attaching to the shares or securities of the merged or consolidated entity immediately following completion of the merger or consolidation and in substantially the same proportions between them as they were entitled to exercise those voting rights in the share capital of the Company immediately prior to such merger or consolidation); (b) a disposal by the Company of all or substantially all of its undertakings and assets; or (c) the exclusive license or other disposition of all or substantially all of the assets of the Company. 

“Delay/Suspension Period” has the meaning set forth in Section 10 hereof. 

“Demand Notice” has the meaning set forth in Section 2(a) hereof. 

“Demand Registration” has the meaning set forth in Section 2(a) hereof. 

“Eligible Holders” has the meaning set forth in Section 2(a) hereof. 

“Eventide” means Eventide Healthcare & Life Sciences Fund, c/o Eventide Asset Management, LLC, One International Place Suite 4210, Boston, MA 02210. 

“Eventide Shareholder(s)” means Eventide and any other person who holds Registrable Securities who is a Member of the same Fund Group or a Member of the same Group as Eventide. 

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

 

2

 

“F-3” means such form under the Securities Act as in effect on the date of this Agreement or any successor registration form under the Securities Act subsequently adopted by the SEC that permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC in a similar or comparable manner. 

 “Family Trust” means as regards any particular individual member or deceased or former individual member who is an Original Shareholder, trusts (whether arising under a settlement, declaration of trust or other instrument by whomsoever or wheresoever made or under a testamentary disposition or on an intestacy) under which no immediate beneficial interest in any of the Ordinary Shares in question is for the time being vested in any person other than the individual member and/or Privileged Relations of that individual; and so that for this purpose a person shall be considered to be beneficially interested in an Ordinary Share if such Ordinary Share or the income thereof is liable to be transferred or paid or applied or appointed to or for the benefit of such person or any voting or other rights attaching thereto are exercisable by or as directed by such person pursuant to the terms of the relevant trusts or in consequence of an exercise of a power or discretion conferred thereby on any person or persons. 

“FINRA” means the Financial Industry Regulatory Authority, Inc. 

“Fund Manager” means a person whose principal business is to make, manage or advise upon investments in securities. 

“Governmental Authority” means (i) the federal government, any state or municipal government or other national or foreign political subdivision with jurisdiction over the applicable Person; (ii) an executive, regulatory, legislative, judicial or administrative government entity or authority with jurisdiction over the applicable Person, whether national or foreign, which includes, with respect to items (i) and (ii) above, their respective bodies, autonomous government entities, self-regulatory entities, divisions, departments, boards, representation offices, agencies or commissions, including the SEC; (iii) a single court, tribunal or judicial, administrative or arbitration body; or (iv) any stock exchange or organized over-the-counter market to which the applicable Person is subject. 

“Group Companies” means the Company and each and any of its subsidiary undertakings for the time being, and “Group” means all of them. 

“Holder” shall mean the Shareholders or any of their Affiliates, so long as such Person holds any Registrable Securities and any Person owning Registrable Securities who is a permitted transferee of rights under Section 14.2. 

“Initial Series C Registrable Securities” means the Registrable Securities issued to the Shareholders originally party hereto in exchange for the Series C Preferred Shares issued pursuant to the Subscription Agreement on June 29, 2020. 

 “Initiating Holder” has the meaning set forth in Section 2(a) hereof. 

“Insolvency Proceedings” means any insolvency related proceedings, whether in or out of court, including proceedings or steps leading to any form of bankruptcy, liquidation, administration, receivership, arrangement or scheme with creditors, moratorium, stay or limitation of creditors’ rights, interim or provisional supervision by a court or court appointee, winding up or striking off, or any distress, execution, commercial rent arrears recovery or other process levied or exercised, or any event similar to any such events in any jurisdiction outside England and Wales. 

 

3

 

“Investor Majority” means (a) Investor(s) holding more than 50% of the Registrable Securities held by Investor(s); and (b) in addition: (i) prior to a Material Transfer Event, Investor(s) holding more than 50% of the Registrable Securities held by Investor(s) and which in any event must include: (A) the Syncona Shareholder(s); and (B) one of (1) the Novo Shareholder(s), (2) the Eventide Shareholder(s) or (3) the Wellington Shareholder(s); and (ii) following the occurrence of a Material Transfer Event, Investor(s) holding more than 50% of the Registrable Securities held by the Investor(s) and which in any event must include: (A) the Syncona Shareholder(s); and (B) either: (I) one of (1) the Novo Shareholder(s), (2) the Eventide Shareholder(s) or (3) the Wellington Shareholder(s); or (II) Investor(s) set forth in clauses (b) to (g) of the definition of “Investors” who in aggregate hold a majority of the Registrable Securities in issue (excluding from this calculation any Registrable Securities held by the Syncona Shareholder(s)).  

“Investors” means each of: (a) each Syncona Shareholder and any other person to whom Registrable Securities previously held by a Syncona Shareholder are transferred in accordance with the Articles; (b) each Novo Shareholder and any other person to whom Registrable Securities previously held by a Novo Shareholder are transferred in accordance with the Articles; (c) each Eventide Shareholder and any other person to whom Registrable Securities previously held by a Eventide Shareholder are transferred in accordance with the Articles; (d) each Wellington Shareholder and any other person to whom Registrable Securities previously held by a Wellington Shareholder are transferred in accordance with the Articles; (e) each Cowen Shareholder and any other person to whom Registrable Securities previously held by a Cowen Shareholder are transferred in accordance with the Articles; (f) each Acorn Shareholder and any other person to whom Registrable Securities previously held by an Acorn Shareholder are transferred in accordance with the Articles; (g) each Ample Plus Shareholder and any other person to whom Registrable Securities previously held by an Ample Plus Shareholder are transferred in accordance with the Articles; (h) each UTF Shareholder and any other person to whom Registrable Securities previously held by an UTF Shareholder are transferred in accordance with the Articles; and (i) any other person who became a party to the Shareholders’ Agreement on or prior to the date hereof as an “Investor” by signing a deed of adherence in accordance with the terms of the Shareholders’ Agreement.  

“IPO” means the Company’s firm commitment underwritten initial public offering of American Depository Shares representing Ordinary Shares of the Company under the Securities Act, consummated on or about the date hereof, for listing on Nasdaq. 

“Material Adverse Change” means (1) in the opinion of an Investor Majority, there has been a material adverse change in the position or prospects of the Company; or (2) the Company has entered into any Insolvency Proceedings. 

“Material Transaction” means any material transaction in which the Company or any of its subsidiaries proposes to engage or is engaged, including a material purchase or sale of assets or securities, financing, merger, consolidation, tender offer or any other material transaction that would require disclosure pursuant to the Exchange Act, and with respect to which the board of directors of the Company reasonably has determined in good faith that compliance with this Agreement may reasonably be expected to either materially interfere with the Company’s or such subsidiary’s ability to consummate such transaction in a timely fashion or require the Company to disclose material, non-public information prior to such time as it would otherwise be required to be disclosed. 

“Material Transfer Event” means the transfer or other disposition (in one transaction or as a series of transactions) of interests in Registrable Securities: (a) by any Novo Shareholder(s) such that the Novo Shareholder(s) (in aggregate) cease to be beneficially interested in such number of Registrable Securities as is at least equal to 50% of the number of Initial Series C Registrable Securities originally allotted and issued to the Novo Shareholder(s) under the Subscription Agreement; (b) by any Eventide Shareholder(s) such that the Eventide Shareholder(s) (in aggregate) cease to be beneficially interested in such number of 

 

4

 

Registrable Securities as is at least equal to 50% of the number of Initial Series C Registrable Securities originally allotted and issued to the Eventide Shareholder(s) under the Subscription Agreement; or (c) by any Wellington Shareholder(s) such that the Wellington Shareholder(s) (in aggregate) cease to be beneficially interested in such number of Registrable Securities as is at least equal to 50% of the number of Initial Series C Registrable Securities originally allotted and issued to the Wellington Shareholder(s) under the Subscription Agreement. 

“Member of the same Fund Group” means if the Shareholder is a fund, partnership, company, syndicate or other entity whose business is managed by a Fund Manager (an “Investment Fund”) or a nominee of that person: (a) any participant or partner in or member of any such Investment Fund or the holders of any unit trust which is a participant or partner in or member of any Investment Fund (but only in connection with the dissolution of the Investment Fund or any distribution of assets of the Investment Fund pursuant to the operation of the Investment Fund in the ordinary course of business); (b) any Investment Fund managed by that Fund Manager; (c) any Subsidiary Undertaking or immediate Parent Undertaking of that Fund Manager, or any Subsidiary Undertaking of the immediate Parent Undertaking of that Fund Manager; or (d) any trustee, nominee or custodian of such Investment Fund and vice versa. 

“Member of the same Group” means as regards any person, a person which is from time to time a Parent Undertaking or a Subsidiary Undertaking of that person or a Subsidiary Undertaking of any such Parent Undertaking.  

“Novo” means Novo Holdings A/S, a limited liability company incorporated in Denmark. 

“Novo Shareholder(s)” means Novo and any other person who holds Registrable Securities who is a Member of the same Fund Group or a Member of the same Group as Novo. 

“Ordinary Shares” refer to the ordinary shares in the issued share capital of the Company following the closing of the IPO.  

“Original Shareholder” means in relation to a Permitted Transfer of Ordinary Shares, the transferor or (in the case of a series of Permitted Transfers) the first transferor in the series. 

“Other Securities” means with respect to a particular registration statement, any of the Ordinary Shares or ADSs that are to be included in such registration statement that are not Primary Securities or Registrable Securities. 

“Parent Undertaking” has the meaning set out in section 1162 of the Act. 

“Permitted Transfer of Ordinary Shares” means a transfer of Ordinary Shares in accordance with the Company’s Articles.  

“Permitted Transferees” means (a) in relation to a Shareholder who is an individual, any of his Privileged Relations or Trustees; (b) in relation to a Shareholder who is an individual, a nominee or custodian to whom that Shareholder is to transfer legal title to any of his Registrable Securities on terms approved by an Investor Majority; (c) in relation to a Shareholder which is an undertaking (as defined in section 1161(1) of the Act), any Member of the same Group as the Original Shareholder; and (d) in relation to a Shareholder which is an Investment Fund, any Member of the same Fund Group as the Original Shareholder. 

“Person” means an individual, company (whether incorporated or not), general or limited partnership, association, foundation, condominium, fund, consortia, joint venture, entity, trust, international or 

 

5

 

multilateral organization or other public, private or semi-public entity and any Governmental Authority as well as the successors thereof. 

“Primary Securities” means, with respect to a particular registration statement, any of the Ordinary Shares or ADSs, which may be sold by the Company in a registered offering pursuant to such registration statement. 

“Privileged Relation” means in relation to any transfer of Ordinary Shares, a spouse, Civil Partner or legitimate child or step or adopted child of the Original Shareholder. 

“Prospectus” means the prospectus included in a Registration Statement filed with the SEC, including any prospectus subject to completion, and any such prospectus as amended or supplemented by any prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities and, in each case, by all other amendments and supplements to such prospectus, including post-effective amendments, and in each case including all material incorporated by reference therein. 

“Registrable Securities” means, at any time, and with respect to any Shareholder, (a) Ordinary Shares held by the Shareholders immediately prior to the closing of the IPO and the completion of any related corporate reorganization, (b) any Ordinary Shares issued or issuable with respect to any Ordinary Shares described in the foregoing clause by way of a dividend or stock split or in exchange for or upon conversion of such shares or otherwise in connection with a combination of shares, distribution, recapitalization, merger, consolidation, or similar event and (c) any ADSs issued in respect of such Ordinary Shares described in the foregoing clauses (a) and (b); provided, however, that this definition of Registrable Securities excludes (i) any Registrable Securities sold by a person to the public pursuant either to an effective registration statement under the Securities Act or Rule 144, and (ii) any Registrable Securities sold by a person in a transaction in which the applicable rights pursuant to this Agreement are not assigned to a Permitted Transferee in accordance with the terms of this Agreement, or for which such registration rights have terminated.  

“Registration” means a registration with the SEC of the offer and sale to the public of ADS representing Ordinary Shares under a Registration Statement. The terms “Register,” “Registered” and “Registering” shall have a correlative meaning. 

“Registration Date” means the date on which the registration statement relating to the IPO shall have been declared effective. 

“Registration Statement” means any registration statement of the Company that registers any of the Registrable Securities under the Securities Act, and all amendments and supplements to any such Registration Statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein. 

“Rule 144” means Rule 144 promulgated under the Securities Act or any successor rule thereto. 

“S-3” means such form under the Securities Act as in effect on the date of this Agreement or any successor registration form under the Securities Act subsequently adopted by the SEC that permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the SEC in a similar or comparable manner. 

“SEC” means the United States Securities and Exchange Commission. 

“Securities Act” the United States Securities Act of 1933, as amended. 

 

6

 

“Series C Preferred Shares” means the series C preferred shares of £0.00001 each in the capital of the Company, which were exchanged for Ordinary Shares in connection with the IPO.  

“Shareholder Majority” means those Holders who hold in the aggregate in excess of 50% of the voting power of Registrable Securities outstanding from time to time. 

“Shareholder” means each of Amit Nathwani, UCLB, UTF, each Investor and any other Holder of Registrable Securities from time to time, collectively the “Shareholders”. 

“Shareholders Agreement” means the Shareholders Agreement dated as of June 29, 2020, among the Company and the Shareholders. 

“Shareholders’ Counsel” has the meaning set forth in Section 6(a)(ii) hereof. 

“Subscription Agreement” means the Subscription Agreement dated as of June 29, 2020 between the parties to the Shareholders’ Agreement other than Amit Nathwani, UCLB and UTF, with respect to the subscription of Series C Preferred Shares. 

“Subsidiary Undertaking” has the meaning set out in section 1159 of the Act. 

“Syncona” means a non-cellular company limited by shares incorporated in Guernsey with registered number 62778. 

“Syncona Shareholder(s)” means Syncona and any other person who holds Registrable Securities who is a Member of the same Fund Group or a Member of the same Group as Syncona. 

“Takedown Notice” has the meaning set forth in Section 3(a) hereof. 

“Transaction Documents” means this Agreement and the other agreements, instruments and documents contemplated hereby and thereby, including each exhibit hereto and thereto. 

“Trustees” in relation to a Shareholder means the trustee or the trustees of a Family Trust. 

“UCLB” means UCL Business Limited, a company registered in England and Wales (company number 02776963) whose registered office is at The Network Building, 97 Tottenham Court Road, London W1T 4TP, United Kingdom.  

“Underwritten Offering” means a Registration in which securities of the Company are sold to an underwriter or underwriters on a firm commitment basis for reoffering to the public in a widely distributed offering. 

“UTF” means UCL Technology Fund LP, a limited partnership registered in England and Wales (registered number LP017126) whose registered office is at 1 Benjamin Street, London, EC1M 5QL, United Kingdom.  

“UTF Shareholder(s)” means UTF and any other person who holds Registrable Securities who is a Member of the same Fund Group as UTF.  

“Wellington” means Wellington Management Company LLP and any successor or affiliated investment advisor or subadvisor thereof to the Wellington Shareholders. 

“Wellington Shareholder(s)” means Biomedical and any Permitted Transferee(s) of Biomedical that are advisory or sub-advisory clients of Wellington.  

 

7

 

 “$” means the lawful currency of the United States of America. 

1.2RULES OF CONSTRUCTION. The term “this Agreement” means this registration rights agreement together with all schedules and exhibits hereto, as the same may from time to time be amended, modified, supplemented or restated in accordance with the terms hereof. The use in this Agreement of the term “including” means “including, without limitation.” The words “herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a whole, including the schedules and exhibits, as the same may from time to time be amended, modified, supplemented or restated, and not to any particular section, subsection, paragraph, subparagraph or clause contained in this Agreement. All references to sections, schedules and exhibits mean the sections of this Agreement and the schedules and exhibits attached to this Agreement, except where otherwise stated. The title of and the section and paragraph headings in this Agreement are for convenience of reference only and shall not govern or affect the interpretation of any of the terms or provisions of this Agreement. Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates. Unless expressly provided otherwise, the measure of a period of one month or year for purposes of this Agreement shall be that date of the following month or year corresponding to the starting date, provided that if no corresponding date exists, the measure shall be that date of the following month or year corresponding to the next day following the starting date. For example, one month following February 18 is March 18, and one month following March 31 is May 1. 

Section 2. DEMAND REGISTRATION . 

(a)At any time after one hundred eighty (180) days following the consummation of the IPO, for so long as any Registrable Securities are then outstanding, a Shareholder or Shareholders holding in the aggregate at least twenty percent (20%) of the Registrable Securities then outstanding shall have the right to request that the Company file and cause to become effective a Registration Statement with the SEC on the appropriate registration form for all or part of the Registrable Securities held by such Shareholder(s) once such Shareholder(s) are no longer subject to the lock-up applicable to them entered into in connection with the IPO (which may be due to the expiration or waiver of such lock-up with respect to such Registrable Securities) (a “Demand Notice”) by delivering a written request to the Company specifying the number of Registrable Securities such Shareholder(s) wish to Register and the intended method of distribution thereof (a “Demand Registration” and the Shareholder(s) submitting such Demand Registration, the “Initiating Holder” or “Initiating Holders”, collectively). The Company shall (i) within 10 Business Days of the receipt of such request, give written notice of such Demand Registration (the “Company Notice”) to all Shareholders other than the Initiating Holder(s) (the “Eligible Holders”), (ii) as soon as practicable, and in any event within forty-five (45) days of receipt of such request, file a Registration Statement in respect of such Demand Registration, provided that all necessary documents for the registration can be obtained and prepared within such 45-day period; and (iii) use its reasonable best efforts to cause such Registration Statement to become effective as soon as practicable thereafter. The Company shall include in such Registration all Registrable Securities that the Eligible Holders request to be included within the 10 Business Days following their receipt of the Company Notice. If the method of distributing the offering is an underwritten public offering, the Company may designate in its sole discretion, the managing underwriter for such offering. 

(b)The Company shall not be obligated to file and use its reasonable best efforts to cause to become effective: (i) more than two Registration Statements initiated pursuant to Section 2(a); or (ii) any Registration Statement pursuant to Section 2(a) (A) if the Company believes, in good faith, that it will file and cause to be effective a registration statement with respect to Primary Securities (other than on Form F4 or Form S-8 promulgated under the Securities Act or any successor forms thereto) within 60 days of such a demand or (B) if a registration statement with respect to Primary Securities (other than on Form F-4 or 

 

8

 

Form S-8 promulgated under the Securities Act or any successor forms thereto) has been declared effective and not withdrawn in the prior 180 days; provided that in connection with any such registration statement that has not been declared effective, the Company is in good faith using commercially reasonable efforts to cause such registration statement to become effective. The Registrable Securities requested to be Registered pursuant to Section 2(a) (including, for the avoidance of doubt, the Registrable Securities of Eligible Holders requested to be registered) must represent an aggregate price to the public of Registrable Securities that is reasonably expected to equal at least $10,000,000. 

(c)With respect to any registration pursuant to Section 2(a), the Company may include in such registration any Primary Securities or Other Securities; provided, however, that if the managing underwriter or underwriters formally advise(s) the Company in writing and with sufficient explanation that the inclusion of all Registrable Securities, Primary Securities and Other Securities proposed to be included in such registration would interfere with the successful marketing (including, but not limited to, pricing) of all such securities, then the number of Registrable Securities, Primary Securities and Other Securities proposed to be included in such registration shall be included in the following order: 

(i)first, the Registrable Securities held by the Shareholders requesting that their Registrable Securities be included in such registration pursuant to Section 2(a), pro rata based upon the number of Registrable Securities owned by each such Shareholder at the time of such registration; provided, however, that the number of Registrable Securities held by the Shareholders to be included in such underwriting shall not be reduced unless all Primary Securities and Other Securities are first entirely excluded from the underwriting, provided that for purposes of this Subsection 2(c) concerning apportionment, any selling Shareholder and all Members of the same Fund Group and Member of the same Group as that Selling Shareholder shall be deemed to be a single “selling Shareholder,” and any pro rata reduction with respect to such “selling Shareholder” shall be based upon the aggregate number of Registrable Securities owned by all persons included in such “selling Shareholder,” as defined in this sentence;

(ii)second, the Primary Securities; and

(iii)third, the Other Securities. 

(d)A requested registration under this Section 2 may be rescinded at any time prior to such registration being declared effective by the SEC by written notice to the Company from those Shareholders who initiated the request, at their discretion; provided, however, that such rescinded registration shall not count as a registration initiated pursuant to this Section 2 for purposes of Section 2(b)(i) above if (i) such request to rescind the registration is during a period the Company has deferred taking action pursuant to Section 2(b)(ii) above or Section 10 below or (ii) if the Company shall have been reimbursed (pro rata by the Shareholders requesting registration or in such other proportion as they may agree) for all reasonable and documented out-of-pocket expenses incurred by the Company in connection with such rescinded registration; provided, further, however, that if, at the time of such rescission, the Shareholders who initiated the request shall have learned of an event that is, or is reasonably likely to result in, a Material Adverse Change from that known to such Shareholders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information then the Shareholders shall not be required to reimburse the Company for any out-of-pocket expenses incurred by the Company in connection with such rescinded registration and such rescinded registration shall not count as a registration initiated pursuant to this Section 2 for purposes of clause (i) of subsection (b). 

(e)The Company shall be deemed to have effected a Registration for purposes of Section 2(a) only if the applicable Registration Statement (i) is declared effective by the SEC or becomes effective upon 

 

9

 

filing with the SEC, or (ii) is withdrawn at the request of the requesting Shareholders (other than as a result of a Material Adverse Change to the Company).  

(f)In the event that the Company intends to effect a Registration for purposes of Section 2(a) by means of an Underwritten Offering, no Holder may include Registrable Securities in such Registration unless such Holder, subject to the limitations set forth in Section 9, (i) agrees to sell its Registrable Securities on the basis provided in the applicable underwriting arrangements; (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required and in customary form under the terms of such underwriting arrangements and (iii) cooperates with the Company’s reasonable and customary requests in connection with such Registration (it being understood that the Company’s failure to perform its obligations hereunder, which failure is caused by such Holder’s failure to cooperate, will not constitute a breach by the Company of this Agreement). 

Section 3. REGISTRATIONS ON FORM S-3 OR F-3. 

(a)Subject to Section 3(b), at any time after the date hereof when the Company is eligible to Register the applicable Registrable Securities on Form S-3 or Form F-3 (or a successor form), a Shareholder or Shareholders holding in the aggregate at least ten percent (10%) of the Registrable Securities then outstanding is entitled to request a Demand Registration  pursuant to which the Company shall, as soon as practicable and in any event within forty-five (45) days after the date such request is given, file and use its commercially reasonable efforts to cause to become effective as soon as practicable thereafter a registration statement on Form S-3 or Form F-3 (or a successor thereto) for all or part of the Registrable Securities on such Form S-3 or Form F-3 (or a successor thereto) pursuant to this Section 3 (a “Shelf Registration”). For the avoidance of doubt, the requirement that (i) the Company deliver a Company Notice within 10 Business Days in connection with a Demand Registration and (ii) the right of Eligible Holders to request that their Registrable Securities be included in a Registration Statement filed in connection with a Demand Registration, each as set forth in Section 2(a), shall apply to a Demand Registration that is effected as a Shelf Registration. There shall be no limitations on the number of Shelf Registration or shelf takedowns pursuant to such Shelf Registrations; provided, however, that the Shareholders may not require the Company to effect more than two Shelf Registrations or cooperate in more than two shelf takedowns pursuant to this Section 3 in a 12-month period. If any Initiating Holder holds Registrable Securities included on a Shelf Registration, it shall have the right to request that the Company cooperate in a shelf takedown at any time, including an Underwritten Offering, by delivering a written request thereof to the Company specifying the kind and number of Registrable Securities such Initiating Holder wishes to include in the shelf takedown (“Takedown Notice”). The Company shall (i) within five (5) Business Days of the receipt of a Takedown Notice, give written notice of such Takedown Notice to all Holders of Registrable Securities included on such Shelf Registration (the “Company Takedown Notice”), and (ii) take all actions reasonably requested by the Initiating Holder who submitted the Takedown Notice, including the filing of a Prospectus supplement and the other actions described in Section 6, in accordance with the intended method of distribution set forth in the Takedown Notice as expeditiously as practicable, and in any case, within 45 days of receipt of such Takedown Notice. If the shelf takedown is an Underwritten Offering, the Company shall include in such Underwritten Offering all Registrable Securities that the Holders of Registrable Securities included in the Registration Statement for such Shelf Registration request be included within the five Business Days following such Holders’ receipt of the Company Takedown Notice. The Registrable Securities requested to be included in a Shelf Registration or in a Takedown Notice must represent a price to the public of Registrable Securities that is reasonably expected to equal at least $10,000,000. With respect to any Shelf Registration and subsequent shelf takedown pursuant to this Section 3(a), the Company may include in such Shelf Registration or shelf takedown any Primary Securities or Other Securities; provided, however, that if in connection with any shelf takedown the managing underwriter or underwriters formally advise(s) the Company in writing and with sufficient explanation that the inclusion of all Registrable Securities, Primary Securities and Other Securities proposed to be included 

 

10

 

in such shelf takedown would interfere with the successful marketing (including, but not limited to, pricing) of all such securities, then the number of Registrable Securities, Primary Securities and Other Securities proposed to be included in such shelf takedown shall be included in the following order: 

(i)first, the Registrable Securities held by the Shareholders requesting that their Registrable Securities be included in such shelf takedown pursuant to Section 3(a), pro rata based upon the number of Registrable Securities owned by each such Shareholder and included in the Shelf Registration at the time of such shelf takedown; provided, however, that the number of Registrable Securities held by the Shareholders to be included in such underwriting shall not be reduced unless all Primary Securities and Other Securities are first entirely excluded from the underwriting, provided that for purposes of this Subsection 3(a) concerning apportionment, any selling Shareholder and all Members of the same Fund Group and Member of the same Group as that Selling Shareholder shall be deemed to be a single “selling Shareholder,” and any pro rata reduction with respect to such “selling Shareholder” shall be based upon the aggregate number of Registrable Securities included in the Shelf Registration owned by all persons included in such “selling Shareholder,” as defined in this sentence;

(ii)second, the Primary Securities; and

(iii)third, the Other Securities. 

(b)The Company shall not be obligated file and use its commercially reasonable efforts to cause to become effective any Shelf Registration Statement or to cooperate in any shelf takedown pursuant to Section 3(a): (i) if the Company believes, in good faith, that it will file and cause to be effective a registration statement with respect to Primary Securities (other than on Form F-4 or Form S-8 promulgated under the Securities Act or any successor forms thereto) within 30 days of such a demand or (ii) if a registration statement with respect to Primary Securities (other than on Form F-4 or Form S-8 promulgated under the Securities Act or any successor forms thereto) has been declared effective and not withdrawn in the prior 90 days; provided that in connection with any such registration statement that has not been declared effective, the Company is in good faith using commercially reasonable efforts to cause such registration statement to become effective.  

(c)A requested registration under this Section 3 may be rescinded at any time prior to such registration being declared effective by the SEC by written notice to the Company from those Shareholders who initiated the request, at their discretion; provided, however, that such rescinded registration shall not count as a registration initiated pursuant to this Section 3 for purposes of this subsection (c) if (i) such request to rescind the registration is during a period the Company has deferred taking action pursuant to Section 3(b) above or Section 10 below or (ii) if the Company shall have been reimbursed (pro rata by the Shareholders requesting registration or in such other proportion as they may agree) for all reasonable and documented out-of-pocket expenses incurred by the Company in connection with such rescinded registration; provided, further, however, that if, at the time of such rescission, the Shareholders who initiated the request shall have learned of an event that is, or is reasonably likely to result in, a Material Adverse Change from that known to such Shareholders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information then the Shareholders shall not be required to reimburse the Company for any out-of-pocket expenses incurred by the Company in connection with such rescinded registration and such rescinded registration shall not count as a registration initiated pursuant to this Section 3 for purposes of subsection (c).  

 

11

 

Section 4. PIGGYBACK REGISTRATION. 

(a)If the Company at any time proposes, for any reason, to file: a Registration Statement on Form S-1, F-1, F-3 or S-3 promulgated under the Securities Act or any successor forms thereto, any Primary Securities or Other Securities under the Securities Act (other than on Form F-4 or Form S-8 promulgated under the Securities Act or any successor forms thereto), it shall promptly give written notice to each Shareholder of its intention so to register such Primary Securities or Other Securities and, upon the written request, given no later than 10 Business Days prior to such registration of Primary Securities or Other Securities, of any such Shareholder to include in such registration Registrable Securities owned by such Shareholder (which request shall specify the number of the Registrable Securities proposed to be included in such registration), the Company shall cause all such Registrable Securities to be included in such registration on the same terms and conditions as the securities otherwise being sold in such registration (such registration, a “Piggyback Registration”); provided, however, that if such registration is an Underwritten Offering and the managing underwriter formally advises the Company in writing and with sufficient explanation that the inclusion of all Primary Securities, Registrable Securities and Other Securities proposed to be included in such registration would interfere with the successful marketing (including pricing) of the ADSs proposed to be registered by the Company, then the number of Primary Securities, Registrable Securities and Other Securities proposed to be included in such registration shall be included in the following order: 

(i)first, Primary Securities; 

(ii)second, Registrable Securities held by the Shareholders requesting that Registrable Securities be included in such registration, pro rata based upon the number of Registrable Securities owned by each such Shareholder at the time of such registration, provided that for purposes of this Section 4(a) concerning apportionment, any selling Shareholder and all Members of the same Fund Group and Member of the same Group as that Selling Shareholder shall be deemed to be a single “selling Shareholder,” and any pro rata reduction with respect to such “selling Shareholder” shall be based upon the aggregate number of Registrable Securities owned by all persons included in such “selling Shareholder,” as defined in this sentence; provided, however that the Company and the underwriters in such a transaction may reduce the number of Registrable Securities proposed to be registered to a minimum of 25% of the total number of securities to be registered pursuant to any such Piggyback Registration; and 

(iii)third, the Other Securities held by shareholders requesting that Other Securities be included in such registration, pro rata based on the number of Other Securities owned by each such shareholder at the time of such registration of Other Securities (or among such shareholders in such other proportion as they shall otherwise agree);  

provided, further, however, that if, at any time after giving written notice of its intention to Register any securities pursuant to this Section 4 and prior to the effective date of the Registration Statement filed in connection with such Registration, the Company shall determine for any reason not to Register or to delay Registration of such securities, the Company may, at its election, give written notice of such determination to each such Holder and, thereupon, (i) in the case of a determination not to Register, shall be relieved of its obligation to Register any Registrable Securities in connection with such Registration and shall have no liability to any Holder in connection with such termination, and (ii) in the case of a determination to delay Registration, shall be permitted to delay Registering any Registrable Securities for the same period as the delay in Registering such other Registrable Securities.  

(b)For the avoidance of doubt, no Registration effected under this Section 4 shall relieve the Company of its obligations to effect any Demand Registration under Section 2 or 3 (for the avoidance of 

 

12

 

doubt, subject to the limitations on registration set forth in Sections 2(b), 3(b) and 10 hereof). If the offering pursuant to a Registration Statement pursuant to this Section 4 is to be an Underwritten Offering, then each Shareholder making a request for a Piggyback Registration pursuant to this Section 4 shall, and the Company shall use reasonable best efforts to coordinate arrangements with the underwriters so that each such Shareholder may, participate in such Underwritten Offering. If the offering pursuant to such Registration Statement is to be on any other basis, then each Shareholder making a request for a Piggyback Registration pursuant to this Section 4 shall, and the Company shall use reasonable best efforts to coordinate arrangements so that each such Shareholder may, participate in such offering on such basis. If the Company files a Shelf Registration for its own account and/or for the account of any other Persons, the Company agrees that it shall use its reasonable best efforts to include in such Registration Statement such disclosures as may be required by Rule 430B under the Securities Act in order to ensure that the Shareholders may be added to such Shelf Registration at a later time through the filing of a Prospectus supplement rather than a post-effective amendment. Any such Shareholder may withdraw its request for inclusion at any time prior to executing the underwriting agreement, or if none, prior to the applicable registration statement or prospectus supplement, as applicable, being filed publicly with the SEC. For certainty, any such Shareholder who has withdrawn its request for inclusion shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be filed by the Company with respect to offerings of its securities, all upon the terms and conditions set forth herein. 

Section 5. [RESERVED]. 

Section 6. PREPARATION AND FILING. 

(a)If and whenever the Company is under an obligation pursuant to the provisions of this Agreement to effect the registration of Registrable Securities, the Company shall, as expeditiously as practicable, and to the fullest extent permitted by applicable law: 

(i)prepare and file with the SEC a Registration Statement that registers such Registrable Securities and use its commercially reasonable efforts to cause such Registration Statement (or any post-effective amendment thereto) to become effective as promptly as practicable, and remain effective for a period of 120 days or until the distribution contemplated in such Registration Statement of all of such Registrable Securities have been completed (if earlier); provided, however, that: such 120 day period shall be extended for a period of time equal to the period a Shareholder refrains, at the request of an underwriter of the Company, from selling any securities included in such registration; provided, further, in the case of any registration of Registrable Securities on Form S-3 or Form F-3 that are intended to be offered on a continuous or delayed basis, subject to compliance with applicable SEC rules, such Registration Statement shall be kept effective until all such Registrable Securities are sold; 

(ii)furnish, in reasonable advance of any public filing, drafts of a Registration Statement that registers Registrable Securities, a Prospectus relating thereto and any amendments or supplements relating to such Registration Statement or Prospectus, to one special counsel selected by a Shareholder Majority (the “Shareholders’ Counsel”) copies of all such documents proposed to be filed, and consider in good faith any comments of any Shareholder selling Registrable Securities and their respective counsel on such documents; 

(iii)prepare and file with the SEC such amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement effective for the lesser of the period required pursuant to clause (i) of this Section 6(a) or until all of the Registrable Securities have been disposed of (if earlier) 

 

13

 

and to comply with the provisions of the Securities Act with respect to the sale or other disposition of such Registrable Securities; 

(iv)notify the Shareholders’ Counsel promptly in writing (A) of any comments by the SEC with respect to such Registration Statement or Prospectus, or any request by the SEC for the amending or supplementing thereof or for additional information with respect thereto, (B) of the effectiveness of such Registration Statement or any amendment thereto or of the filing of such Prospectus or any supplement thereto and the issuance by the SEC of any stop order suspending the effectiveness of such Registration Statement or any amendment thereto or the initiation of any proceedings for that purpose and (C) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purposes; 

(v)use its commercially reasonable efforts to register or qualify, or obtain exemption from the registration or qualification requirements for, Registrable Securities under such other securities or blue sky laws of such jurisdictions as any seller of the Registrable Securities reasonably requests and take any and all other measures and do all other things which may be reasonably necessary or advisable to enable such seller of the Registrable Securities to consummate the disposition thereof in such jurisdictions; provided, however, that the Company will not be required to qualify generally to do business, subject itself to general taxation or consent to general service of process in any jurisdiction where it would not otherwise be required so to do but for this clause (v); 

(vi)use its commercially reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, use its commercially reasonable best efforts to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify the Shareholders of the issuance of any such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose; 

(vii)furnish without charge to each seller of the Registrable Securities such number of copies of any Prospectus, including a preliminary Prospectus, in conformity with the requirements of the Securities Act, and such other documents as such seller of the Registrable Securities may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities; 

(viii)prepare, file and/or make available to the public and/or Shareholders any documents that comply with all relevant applicable regulations and that do not have any material omissions or misstatements;  

(ix)notify on a timely basis each seller of the Registrable Securities at any time when a Prospectus relating to the Registrable Securities is required to be delivered under the Securities Act within the appropriate period mentioned in clause (i) of Section 6(a) of the happening of any event as a result of which the Prospectus included in such Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, promptly prepare and file a supplement or amendment to such Prospectus as may be necessary so that, as supplemented or amended, such Prospectus shall cease to include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary 

 

14

 

to make the statements therein not misleading in light of the circumstances in which they were made; 

(x)make available for inspection by any seller of the Registrable Securities, any underwriter participating in any disposition pursuant to such Registration Statement and any attorney, accountant or other representative retained by any such seller or underwriter, all pertinent financial, business and other records and documents as shall be reasonably necessary to enable them to conduct appropriate due diligence, and cause the Company’s officers, directors and employees to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or other representative in connection with such Registration Statement; 

(xi)use its commercially reasonable efforts to obtain from its independent certified public accountants a “comfort” letter in customary form and covering such matters of the type customarily covered by comfort letters; 

(xii)use its commercially reasonable efforts to provide (A) a legal opinion of the 

Company’s outside counsel dated the effective date of such registration statement addressed to the Company and to each Shareholder selling Registrable Securities addressing the validity of the Registrable Securities being offered thereby, (B) on the date that such Registrable Securities are delivered to the underwriters for sale, if such Registrable Securities are being sold through underwriters, or, if such Registrable Securities are not being sold through underwriters, on the closing date of the applicable sale, (1) one or more legal opinions of the Company’s outside counsel, dated such date, in form and substance as customarily given to underwriters in an underwritten public offering or, in the case of a non-underwritten offering, to the broker, placement agent or other agent of the Holders assisting in the sale of the Registrable Securities and (2) one or more “negative assurances letters” of the Company’s outside counsel, dated such date, in form and substance as is customarily given to underwriters in an underwritten public offering or, in the case of a non-underwritten offering, to the broker, placement agent or other agent of the Shareholders assisting in the sale of the Registrable Securities, in each case, addressed to the underwriters, if any, or, if requested, in the case of a non-underwritten offering, to the broker, placement agent or other agent of the Shareholders assisting in the sale of the Registrable Securities and (C) customary certificates executed by authorized officers of the Company as may be requested by any Shareholder or any underwriter of such Registrable Securities;  

(xiii)obtain the approval of all Governmental Authorities and self-regulatory bodies as may be necessary to effect the registration of the Registrable Securities and consummate the disposition of such Registrable Securities pursuant to the Registration Statement; 

(xiv)provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and request the registrar to provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration; 

(xv)list the Registrable Securities on any United States national securities exchange on which any ADSs are listed; 

(xvi)notify each Shareholder, promptly after the Company receives notice thereof, of the time when such Registration Statement has been declared effective or a supplement to any Prospectus forming a part of such Registration Statement has been filed; 

 

15

 

(xvii)after such Registration Statement becomes effective, notify each Shareholder of any request by the SEC that the Company amend or supplement such registration statement or Prospectus;  

(xviii)make available one or more senior executives for participation in roadshows and other marketing activities in connection with any Underwritten Offering as the Company and the underwriters for such offering may reasonably agree, but in any event subject to the limitation that such officer’s or officers’ participation shall not negatively interfere with the Company’s normal course of business; and 

(xix)otherwise use its commercially reasonable efforts to take all other steps necessary to effect the registration of the Registrable Securities contemplated hereby. 

(b)Each Holder of Registrable Securities that sells Registrable Securities pursuant to a registration under this Agreement agrees that during such time as such seller may be engaged in a distribution of the Registrable Securities, such seller shall comply with Regulation M promulgated under the Exchange Act and pursuant thereto it shall, among other things: (i) distribute the Registrable Securities under the Registration Statement solely in the manner described in the Registration Statement covering such Registrable Securities; and (ii) cease distribution of the Registrable Securities pursuant to such Registration Statement upon receipt of written notice from the Company that the Prospectus covering the Registrable Securities contains any untrue statement of a material fact or omits a material fact required to be stated therein or necessary to make the statements therein not misleading. 

Section 7. EXPENSES.  

All expenses incurred by the Company in complying with Section 5, including all registration and filing fees (including all expenses incident to filing with FINRA), fees and expenses of complying with securities and blue sky laws, printing expenses, fees and expenses of the Company’s counsel and accountants and fees, as well as the reasonable fees and expenses of Shareholders’ Counsel not to exceed $50,000 (the “Shareholders’ Counsel Reimbursement Cap”), shall be paid by the Company to the fullest extent permitted by applicable law. All expenses incurred by any Shareholder in connection with any sale of Registrable Securities under this Agreement, including share transfer taxes and the underwriting discounts and commissions and brokerage fees and expenses incurred in connection with the sale of Registrable Securities by any Shareholder, such Shareholder’s pro rata share of the fees and expenses of Shareholders’ Counsel in excess of the Shareholders’ Counsel Reimbursement Cap and the out-of-pocket expenses incurred by the Company for which the Shareholders are responsible, if any, pursuant to Sections 2(d) and 3(c), shall be paid by such Shareholder, except that the Company shall pay the reasonable fees and expenses of Company’s counsel in each relevant jurisdiction, to the extent required by the underwriters or the rules and regulations of the SEC to deliver an opinion or other documentation in connection with an offering, in any offerings pursuant to Section 2, 3 or 4. 

Section 8. INDEMNIFICATION. 

(a)In connection with any registration of Registrable Securities under the Securities Act pursuant to this Agreement, the Company shall, to the fullest extent permitted by applicable law, indemnify and hold harmless the seller of such Registrable Securities, and each other Person, if any, who controls such seller and each officer, director, partner and member of any of the foregoing Persons (each an “Indemnified Seller”), against any losses, claims, damages or liabilities, joint or several, to which any of the foregoing Persons become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement under which Registrable Securities 

 

16

 

were registered, any preliminary Prospectus or final Prospectus contained therein, any amendment or supplement thereto, any free writing prospectus or any document incident to registration or qualification of Registrable Securities, including any marketing materials, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or, with respect to any Prospectus, necessary to make the statements therein in light of the circumstances under which they were made not misleading, and the Company shall promptly reimburse, to the fullest extent permitted by applicable law, such Indemnified Seller for any reasonable legal or other expenses actually incurred by any of them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable to any such Indemnified Seller to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in said Registration Statement, preliminary Prospectus, amendment, supplement, free writing prospectus or document incident to registration or qualification of any Registrable Securities in reliance upon and in conformity with written information furnished to the Company by such Indemnified Seller, or a Person duly acting on its behalf, specifically for use in the preparation thereof.  

(b)In connection with any registration of Registrable Securities under the Securities Act pursuant to this Agreement, each seller of Registrable Securities shall, severally and not jointly, indemnify and hold harmless the Company, to the fullest extent permitted by applicable law, each other seller of Registrable Securities under such registration, each Person who controls any of the foregoing Persons within the meaning of the Securities Act and each officer, director, partner, and member of any of the foregoing Persons, against any losses, claims, damages or liabilities to which any of the foregoing Persons may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement under which Registrable Securities were registered, any preliminary Prospectus or final Prospectus contained therein, any amendment or supplement thereto, any free writing prospectus or any document incident to registration or qualification of any Registrable Securities, if such statement or omission was made in reliance upon and in conformity with written information furnished to the Company by such seller specifically for use in connection with the preparation of such Registration Statement, preliminary Prospectus, final Prospectus, amendment or supplement; provided, however, that the maximum amount of liability in respect of such indemnification shall be limited, in the case of each seller of Registrable Securities, to an amount equal to the net proceeds (after the payment of underwriting discounts and commissions) actually received by such seller from the sale of Registrable Securities effected pursuant to such registration. 

(c)Promptly after receipt by an indemnified party of notice of the commencement of any action involving a claim referred to in the preceding paragraphs of this Section 8, such indemnified party will, if a claim in respect thereof is made against an indemnifying party, give written notice to the latter of the commencement of such action; provided, however, that an indemnified party’s failure to give such notice in a timely manner shall only relieve the indemnification obligations of an indemnifying party to the extent such indemnifying party is prejudiced or harmed by such failure. In case any such action is brought against an indemnified party, the indemnifying party will be entitled to participate in and to assume the defense thereof, jointly with any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be responsible for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof; provided, however, that if any indemnified party shall have reasonably concluded that there may be one or more legal or equitable defenses available to such indemnified party that conflict with those available to the indemnifying party, the indemnifying party shall not have the right to assume the defense of such action on behalf of such indemnified party and such indemnifying party shall reimburse such indemnified party and any Person controlling such indemnified party for that portion of the reasonably 

 

17

 

incurred and documented fees and expenses of any one lead counsel (plus one local counsel) retained by the indemnified party in connection with the matters covered by the indemnity agreement provided in this Section 8. If the defense is assumed by the indemnifying party, the indemnifying party shall not be liable for any settlement of any action, claim or proceeding effected by the indemnified party without its prior written consent; provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the indemnified party, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such action, claim or proceeding. 

(d)If, other than for the reason set forth in the proviso to the first sentence in Section 8(c), the indemnification provided for in this Section 8 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, claim, damage or liability referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall, to the fullest extent permitted by applicable law contribute to the amounts paid or payable by such indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other hand in connection with the statements or omissions which resulted in such loss, claim, damage or liability as well as any other relevant equitable considerations; provided, however, that the maximum amount of liability in respect of such contribution shall be limited, in the case of each seller of Registrable Securities, to an amount equal to the net proceeds (after the payment of underwriting discounts and commissions) actually received by such seller from the sale of Registrable Securities effected pursuant to such registration. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 8(d) were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in this Section 8(d). Further, no Person guilty of fraudulent misrepresentation (within the meaning of Section 10(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 

(e)The indemnification and contribution provided for under this Agreement will be in addition to any other rights to indemnification or contribution that any indemnified party may have pursuant to law or contract (and the Company and its subsidiaries shall be considered the indemnitors of first resort in all such circumstances to which this Section 8 applies) and will remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party. 

Section 9. UNDERWRITING AGREEMENT. 

(a)Notwithstanding the provisions of Sections 7 and 8, to the extent that the Shareholders selling Registrable Securities in a proposed registration shall, to the fullest extent permitted by applicable law, enter into an underwriting or similar agreement, which agreement contains provisions covering one or more issues addressed in such Sections of this Agreement (it is understood and agreed that, for purposes of this clause (a), any indemnification provisions in any such underwriting or similar agreement that does not provide for the indemnification by the Company of a seller of Registrable Securities and other Persons or the indemnification by the seller of Registrable Securities of the Company and other Persons shall not supersede Section 8(a) or 8(b) above), the provisions contained in such Sections of this Agreement addressing such issue or issues shall be of no force or effect with respect to such registration, but this 

 

18

 

provision shall not apply to the Company if the Company is not a party to the underwriting or similar agreement. 

(b)If any registration pursuant to Sections 2 or 3 is requested to be an Underwritten Offering, the Company shall negotiate in good faith to enter into a reasonable and customary underwriting agreement with the underwriters thereof. The Company shall, to the fullest extent permitted by applicable law, be entitled to receive indemnities from lead institutions, underwriters, dealer managers and similar securities industry professionals participating in the distribution, to the same extent as provided above with respect to information so furnished in writing by such Persons specifically for inclusion in any Prospectus or Registration Statement and to the extent customary given their role in such distribution. 

(c)No Shareholder may participate in any registration hereunder that is underwritten unless such Shareholder agrees to (i) sell Registrable Securities proposed to be included therein on the basis provided in any underwriting arrangements acceptable to the Company and a Shareholder Majority and (ii) as expeditiously as possible, notify the Company of the occurrence of any event concerning such Shareholder as a result of which the Prospectus relating to such registration contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. Notwithstanding the foregoing, no Shareholder shall be required to make any representations or warranties to the Company or the underwriters (other than representations and warranties regarding (i) such Shareholder’s ownership of Registrable Securities to be transferred free and clear of all liens, claims and encumbrances created by such Shareholder, (ii) such Shareholder’s power and authority to effect such transfer, (iii) such matters pertaining to such Shareholder’s compliance with securities laws as reasonably may be requested and (iv) such Shareholder’s intended method of distribution) or to undertake any indemnification obligations to the Company with respect thereto, except as otherwise provided in Section 8 hereof. 

Section 10. SUSPENSION.  

Anything contained in this Agreement to the contrary notwithstanding, the Company may by notice in writing to each Holder of Registrable Securities to which a Prospectus relates, delay, for up to 90 calendar days (the “Delay/Suspension Period”), the filing or the effectiveness of any Registration Statement filed (or to be filed) under Section 2, 3 or 4 or require such Holder to suspend, for up to the Delay/Suspension Period the use of any Prospectus included in a Registration Statement filed under Sections 2, 3 or 4 if at the time of such delay or suspension, the Company furnishes to the requesting Shareholders a certificate signed by the Company’s chief executive officer stating that in the good faith judgment of the Board, the Board considers that it would be materially detrimental for the Registration Statement to become or remain effective because such action would: (a) interfere with a Material Transaction, (b) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential or (c) render the Company unable to comply with requirements under the Securities Act or the Exchange Act; provided that the Company shall not register any securities for its own account or that of any other Shareholder during the Delay/Suspension Period; and provided, further, that the Company may not invoke this right more than once in any 12 month period. The period during which such registration must remain effective shall be extended by a period equal to the Delay/Suspension Period. The Company may (but shall not be obligated to) withdraw the effectiveness of any Registration Statement subject to this provision.  

Section 11. INFORMATION BY HOLDER.  

Each Holder of Registrable Securities to be included in any registration shall promptly furnish to the Company and the managing underwriter such customary written information regarding such Holder and 

 

19

 

the distribution proposed by such Holder as the Company or the managing underwriter may reasonably request in writing at least four Business Days prior to the first anticipated filing date of any Registration Statement or amendment thereto, or Prospectus, as applicable, and as shall be reasonably required in connection with any registration, qualification or compliance referred to in this Agreement. It is understood and agreed that the obligations of the Company under Sections 2, 3 and 4 with respect to any particular Holder are conditioned on the timely provisions of the foregoing information by each such Holder and, without limitation of the foregoing, will be conditioned on compliance by each such Holder with the following: 

(a)each such Holder will, and will cause its Affiliates to, cooperate with the Company as reasonably requested by the Company in connection with the preparation of the applicable registration statement, and for so long as the Company is obligated to keep such registration statement effective, such Holder will and will cause its Affiliates to, provide to the Company, in writing and in a timely manner, for use in such registration statement (and expressly identified in writing as such), all customary information reasonably requested by the Company regarding itself and its Affiliates and such other customary information as may reasonably be requested by the Company or required by applicable law to enable the Company to prepare such registration statement and the related prospectus covering the Registrable Securities owned by such Holder and to maintain the currency and effectiveness thereof; 

(b)each such Holder shall, and it shall cause its Affiliates to, supply to the Company, its representatives and agents in a timely manner any customary information regarding itself and its Affiliates as the Company, its representatives or agents may be reasonably requested to provide in connection with the offering or other distribution of Registrable Securities by such Holder; and 

(c)on receipt of written notice from the Company upon the occurrence of any of the events specified in Section 10, or that requires the suspension by such Holder and its Affiliates of the distribution of any Registrable Securities owned by such Holder pursuant to applicable law, then such Holder shall, and it shall cause its Affiliates to, cease offering or distributing such Registrable Securities owned by such Holder until the offering and distribution of Registrable Securities owned by such Holder may recommence in accordance with the terms hereof and applicable law. 

Section 12. TERMINATION.  

This Agreement shall terminate and be of no further force or effect when (i) there shall not be any Registrable Securities, (ii) upon the occurrence of a Deemed Liquidation Event or (iii) all Registrable Securities are eligible to be sold pursuant to Rule 144 without limitation thereunder as to volume or manner of sale; provided, however, that Sections 8 and 9 shall survive the termination of this Agreement. In addition, the Company shall have no obligation pursuant to this Agreement with respect to any Registrable Securities proposed to be sold by a Holder in a Registration pursuant to this Agreement if all such securities proposed to be sold by such Holder are eligible to be sold pursuant to Rule 144 without limitation thereunder as to volume or manner of sale. 

Section 13. LIMITATION ON OTHER REGISTRATION RIGHTS.  

The Company agrees that it shall not enter into any agreement with any holder or prospective holder of any securities of the Company that is not a party to this Agreement so long as any Registrable Securities are outstanding without the consent of a Shareholder Majority (i) that would allow such holder or prospective holder to include such securities in any Demand Registration, Shelf Registration or Piggyback Registration unless, under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that their inclusion would not reduce the amount of the 

 

20

 

Registrable Securities of the Shareholders included therein or (ii) on terms otherwise more favorable than this Agreement. 

Section 14. MISCELLANEOUS. 

14.1NOTICES. All notices or other communications required or permitted hereunder shall be given in writing and given by certified or registered mail, return receipt requested, nationally recognized overnight delivery service, such as Federal Express, facsimile or e-mail with confirmation of transmission by the transmitting equipment or personal delivery against receipt to the party to whom it is given, in each case, at such party’s address, facsimile number or e-mail address set forth below or such other address, facsimile number or e-mail address as such party may hereafter specify by notice to the other parties hereto given in accordance herewith. Any such notice or other communication shall be deemed to have been given as of the date so personally delivered or transmitted by facsimile, e-mail or like transmission (or, if delivered or transmitted after normal business hours, on the next Business Day): 

if to the Company, to: 

 

Freeline Therapeutics Holdings plc 

Stevenage Bioscience Catalyst 

Gunnels Wood Road 

Stevenage, Hertfordshire SG1 2FX 

United Kingdom 

Telephone:  +44 (0) 1438 906870 e-mail:  brian.silver@freeline.life Attn.:  Brian Silver 

with a copy to: 

 

Davis Polk & Wardwell LLP 

450 Lexington Avenue 

New York, NY 10017 Telephone: +1 (212) 450 4389 e-mail: marcel.fausten@davispolk.com 

Attention: Marcel R. Fausten  

if to a Shareholder, to its address on a signature page hereto or, if none, in the books of the Company. 

14.2ASSIGNMENT. Except as otherwise expressly provided herein, this Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective heirs (in the case of any individual), successors and permitted assigns; provided, however, that neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by any Shareholder without the prior written consent of the Company; provided, further, however, that, notwithstanding the provisions of the foregoing proviso, to the extent that any Shareholder transfers any Registrable Securities to any Permitted Transferee in a transaction that does not violate the Articles and is otherwise permissible under applicable law, such Shareholder may transfer and assign, without the prior written consent of the Company, its rights, interests or obligations hereunder with respect to such Registrable Securities hereunder to such Permitted Transferee.  

Notwithstanding the foregoing, in each case, if such transfer is subject to covenants, agreements or other undertakings restricting transferability thereof, the registration rights provided for hereunder shall not be transferred in connection with such transfer unless such transferee complies with all such covenants, agreements and other undertakings.   

Any purported assignment or delegation in violation of this Agreement shall be null and void ab initio. 

 

21

 

14.3ENTIRE AGREEMENT. This Agreement embodies the entire agreement and understanding of the parties and their respective Affiliates with respect to the transactions contemplated hereby and supersedes and cancels all prior written or oral commitments, arrangements or understandings with respect thereto. There are no restrictions, agreements, promises, warranties, covenants or undertakings with respect to the transactions contemplated hereby other than those expressly set forth in this Agreement. 

14.4MODIFICATIONS, AMENDMENTS AND WAIVERS. This Agreement may not be modified or amended except by an instrument or instruments in writing that expressly states that it is modifying or amending this Agreement and that is signed by the Company and a Shareholder Majority. Any party hereto (or a Shareholder Majority) may, only by an instrument in writing that expressly states that it is waiving compliance with this Agreement, waive compliance by any other party or parties hereto with any term or provision hereof on the part of such other party or parties hereto to be performed or complied with. Notwithstanding the foregoing, the terms and conditions of this Agreement as they apply to any Holder of the Company’s securities or related parties may not be modified or amended in any manner that results in a non-pro rata material adverse effect on the rights of such Holder without the prior written consent of such Holder. No failure or delay of any party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor will any single or partial exercise of any right or power, or any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The waiver by any party hereto of a breach of any term or provision hereof shall not be construed as a waiver of any subsequent breach. The rights and remedies of the parties hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have hereunder. 

14.5COUNTERPARTS. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and each of which shall be deemed an original, and will become effective when one or more counterparts have been signed by a party and delivered to the other parties. Copies of executed counterparts transmitted by telecopy, telefax or other electronic transmission service shall be considered original executed counterparts for purposes of this Section 14.5, provided that receipt of copies of such counterparts is confirmed. 

14.6GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK THAT APPLY TO CONTRACTS MADE AND PERFORMED ENTIRELY IN SUCH STATE. 

14.7SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL. Each party to this Agreement, for itself and its Affiliates, hereby irrevocably and unconditionally: 

(a)(i) agrees that any suit, action or proceeding instituted against it by any other party with respect to this Agreement may be instituted, and that any suit, action or proceeding by it against any other party with respect to this Agreement shall be instituted, only in the courts of the State of New York, located in New York County or the U.S. District Court for the Southern District of New York (and appellate courts from any of the foregoing) as the party instituting such suit, action or proceeding may in its sole discretion elect, (ii) consents and submits, for itself and its property, to the jurisdiction of such courts for the purpose of any such suit, action or proceeding instituted against it by any other party and (iii) agrees that a final judgment in any such suit, action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law; 

(b)agrees that service of all writs, process and summonses in any suit, action or proceeding pursuant to Section 14.7(a) may be effected by the mailing of copies thereof by registered or certified mail, postage prepaid, to the Company or the applicable Shareholder, as the case may be, at the addresses for notices pursuant to Section 14.1 (with copies to such other Persons as specified therein); provided, however, 

 

22

 

that: (i) the Company agrees that the documents which start any proceedings and any other documents required to be served in relation to those proceedings may be served on it by being delivered to Freeline Therapeutics, Inc. or, if different, its registered office for the time being, and if such Person is not or ceases to be effectively appointed to accept service of process on behalf of the Company, the Company shall, appoint a further person in New York to accept service of process on its behalf and, failing such appointment within 30 days, the Shareholders jointly shall be entitled to appoint such a person by written notice addressed to the Company and delivered to the Company; provided, however, that a copy of any such documents shall in each instance be delivered to Davis Polk & Wardwell LLP at the address provided in Section 14.1, above; and (ii) nothing contained in this Section 14.7 shall affect the right of the Company or any Shareholder to serve process in any other manner permitted by law; 

(c)(i) waives any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement brought in any court specified in Section 14.7(a), (ii) waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum and (iii) agrees not to plead or claim either of the foregoing; 

(d)WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY; and 

(e)to the extent it has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself, or its property, hereby irrevocably waives such immunity in respect of its obligations with respect to this Agreement. 

14.8SEVERABILITY. To the fullest extent permissible under applicable law, the parties hereto hereby waive any provision of law which renders any provision of this Agreement invalid, illegal or unenforceable in any respect. Such parties further agree that any provision of this Agreement which, notwithstanding the preceding sentence, is rendered or held invalid, illegal or unenforceable in any respect in any jurisdiction shall be ineffective, but such ineffectiveness shall be limited as follows:  (a) if such provision is rendered or held invalid, illegal or unenforceable in such jurisdiction only as to a particular Person or Persons or under any particular circumstance or circumstances, such provision shall be ineffective, but only in such jurisdiction and only with respect to such particular Person or Persons or under such particular circumstance or circumstances, as the case may be; (b) without limitation of clause (a), such provision shall in any event be ineffective only as to such jurisdiction and only to the extent of such invalidity, illegality or unenforceability, and such invalidity, illegality or unenforceability in such jurisdiction shall not render invalid, illegal or unenforceable such provision in any other jurisdiction; and (c) without limitation of clause (a) or (b), such ineffectiveness shall not render invalid, illegal or unenforceable this Agreement or any of the remaining provisions hereof. 

14.9NO THIRD PARTY BENEFICIARY. Except for the Persons indemnified pursuant to Section 8(a) or 10(b), this Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement, except that any nominee holding Registrable Securities beneficially for an investor may enforce this Agreement as if it were a Shareholder, provided, however, that (i) the name of any such nominee shall be previously disclosed to the Company in writing, and (ii) such nominee will have no investment discretion with respect to the Registrable Securities, and such investor will remain the beneficial owner of the Registrable Securities for all purposes. 

 

23

 

14.10NON-RECOURSE. No past, present or future director, officer, employee, incorporator, member, manager, partner, shareholder, Affiliate, agent, attorney, consultant, representative or principal of the Company or any Affiliate of the Company shall have any liability for any liabilities of the Company under this Agreement or for any claim based on, in respect of, or by reason of, the transactions contemplated hereby. 

14.11SPECIFIC PERFORMANCE. Each of the parties hereto acknowledges that the others would not have an adequate remedy at law for money damages in the event that any of the covenants or agreements set forth in this Agreement were not performed in accordance with its terms and therefore, each of the parties agrees that the others shall be entitled to specific performance, injunctive and other equitable relief in addition to any other remedy to which it may be entitled at law or in equity (without the necessity of proving the inadequacy as a remedy of money damages or the posting of a bond). 

14.12BUSINESS DAYS. If any date provided for in this Agreement shall fall on a day that is not a Business Day, the date provided for shall be deemed to refer to the next Business Day. 

14.13ELECTRONIC EXECUTION. Delivery of an executed counterpart of a signature page of this Agreement and any other Transaction Document by telecopy or electronic format (including pdf) shall be effective as delivery of a manually executed counterpart of this Agreement or other Transaction Document. 

14.14CAPTIONS. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement, and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 

[Signature Pages Follow] 

 

 

 

24

 

The parties have executed and delivered this Registration Rights Agreement as of the date first written above.  

 

	
FREELINE THERAPEUTICS HOLDINGS PLC

	
 
	
 
	
 

	
By:
	
 
	
/s/ Brian Silver

	
 
	
 
	
Name:  Brian Silver

	
 
	
 
	
Title:    Chief Financial Officer

 

 

 

[Signature Page to Registration Rights Agreement] 

 

 

	
	
ACORN BIOVENTURES, L.P.

	
 

	
By:

	
 

	
ACORN CAPITAL ADVISORS GP, LLC,

	
A Delaware limited liability company 

	
Its: General Partner 

	
 

	
/s/ Anders Hove

	
Name: Anders Hove

	
Title: Member 

 

 

 

	
	
Contact information:

	
 

	
Acorn Bioventures, L.P.

	
Att: Anders Hove 

	
420 Lexington Avenue, Suite 2626

	
New York, NY 10170

	
 

	
Email: anders@acornca.com

	
Phone: 212299-4777

 

 

 

[Signature Page to Registration Rights Agreement]

 

 

	
Amit Nathwani

	
 
	
 
	
 

	
By:
	
 
	
/s/ Amit Nathwani

	
 
	
 
	
Name:  Amit Nathwani

	
 
	
 
	
 

	
Address:
	
 
	
The Coppice, Kingfisher Lure

	
 
	
 
	
Loudwater, Herts WD3 4ET

	
Email:
	
 
	
amit.nathwani@ucl.ac.uk

 

 

 

[Signature Page to Registration Rights Agreement] 

 

 

	
Ample Plus Fund Limited Partnership

	
 
	
 
	
 

	
By:
	
 
	
/s/ Luke Li, MD

	
 
	
 
	
Name:  Luke Li, MD

	
 
	
 
	
Title:    General Managing Partner

	
 
	
 
	
 

	
Address:
	
 
	
One Broadway, 9th Floor,

	
 
	
 
	
Cambridge, MA 02142

	
 
	
 
	
 

	
Email:
	
 
	
luke@ampleplus.fund

 

 

 

[Signature Page to Registration Rights Agreement]

 

 

	
CHI EF III LP

	
 
	
 
	
 

	
By: Cowen Healthcare Investments III GP LLC, its general partner

	
 
	
 
	
 

	
By:
	
 
	
/s/ Michael Benwitt

	
 
	
 
	
Name:  Michael Benwitt

	
 
	
 
	
Title:    Authorized Person

	
 
	
 
	
 

	
Address:
	
 
	
c/o CHI Advisors LLC

	
 
	
 
	
599 Lexington Avenue, 19th Floor

	
 
	
 
	
New York, NY 10022

	
 
	
 
	
United States

	
 
	
 
	
 

	
Email:
	
 
	
legal@cowen.com

 

 

[Signature Page to Registration Rights Agreement] 

 

 

	
Cowen Healthcare Investments III LP

	
 
	
 
	
 

	
By: Cowen Healthcare Investments III GP LLC, its general partner

	
 
	
 
	
 

	
By:
	
 
	
/s/ Michael Benwitt

	
 
	
 
	
Name:  Michael Benwitt

	
 
	
 
	
Title:    Authorized Person

	
 
	
 
	
 

	
Address:
	
 
	
c/o CHI Advisors LLC

	
 
	
 
	
599 Lexington Avenue, 19th Floor

	
 
	
 
	
New York, NY 10022

	
 
	
 
	
United States

	
 
	
 
	
 

	
Email:
	
 
	
legal@cowen.com

 

[Signature Page to Registration Rights Agreement] 

 

 

	
Eventide Healthcare & Life Sciences Fund

	
 
	
 
	
 

	
By:
	
 
	
/s/ Finny Kuruvilla

	
 
	
 
	
Name:  Finny Kuruvilla

	
 
	
 
	
Title:    CIO, Portfolio Manager

	
 
	
 
	
Date:    10/13/2020

	
 
	
 
	
 

	
Address:
	
 
	
One International Place

	
 
	
 
	
Suite 4210,

	
 
	
 
	
Boston, MA 02110

	
 
	
 
	
 

	
Email:
	
 
	
fkuruvilla@eventidefunds.com

 

 

 

[Signature Page to Registration Rights Agreement] 

 

 

	
Novo Holdings A/S

	
 
	
 
	
 

	
By:
	
 
	
/s/ Thomas Dyrberg

	
 
	
 
	
Name:  Thomas Dyrberg, under specific power of attorney

	
 
	
 
	
Title:    Managing Partner

	
 
	
 
	
 

	
Address:
	
 
	
Tuborg Havnevej 19, DK 2900 Hellerup

	
 
	
 
	
 

	
Email:
	
 
	
TDy@Novo.DK

 

 

 

[Signature Page to Registration Rights Agreement]

 

 

	
Syncona Portfolio Limited

	
 
	
 
	
 

	
By:
	
 
	
/s/ Chris Hollowood

	
 
	
 
	
Name:  Chris Hollowood

	
 
	
 
	
Title:    Chief Investment Officer 

	
 
	
 
	
 

	
Address:
	
 
	
Arnold House, PO Box 273

	
 
	
 
	
St Julian's Avenue, St Peter Port

	
 
	
 
	
Guernsey, GY1 3QL

	
 
	
 
	
 

	
Email:
	
 
	
c.hollowood@syconaltd.com

 

 

 

[Signature Page to Registration Rights Agreement]

 

 

	
UCL Technology Fund LP

	
 
	
 
	
 

	
By:
	
 
	
/s/ Christoph Ruedig

	
 
	
 
	
Name:  Christoph Ruedig

	
 
	
 
	
Title:    Partner, Albion Capital Group 

	
 
	
 
	
LLP in its capacity as manager of UCL

	
 
	
 
	
Technology Fund LP

	
 
	
 
	
 

	
Address:
	
 
	
1 Benjamin Street, London, EC1M

	
 
	
 
	
5QL, UK

	
 
	
 
	
 

	
Email:
	
 
	
cruedig@albion.vc

 

 

 

[Signature Page to Registration Rights Agreement]

 

 

	
[SHAREHOLDERS]

	
 
	
 
	
 

	
By:
	
 
	
/s/ Anne Lane

	
 
	
 
	
Name:  Anne Lane

	
 
	
 
	
Title:    CEO 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
Address:
	
 
	
97 Tottenham Court Rd W1T 4TP

	
 
	
 
	
 

	
Email:
	
 
	
a.lane@uclb.com

 

 

 

[Signature Page to Registration Rights Agreement]

 

 

	
Wellington Biomedical Innovation Master

	
Investors (Cayman) I L.P.

	
 
	
 
	
 

	
By:
	
 
	
/s/ Peter N. McIsaac

	
 
	
 
	
Name:  Peter N. McIsaac

	
 
	
 
	
Title:    Managing Director & Counsel

	
 
	
 
	
 

	
Address:
	
 
	
280 Congress Street

	
 
	
 
	
Boston, MA 02210

	
 
	
 
	
 

	
Email:
	
 
	
#Legal-ECM@wellington.com

 

 

 

[Signature Page to Registration Rights Agreement]

 

Schedule A 

 Syncona Portfolio Limited UCL Business Limited 

UCL Technology Fund LP 

Amit Nathwani 

Novo Holdings A/S 

Eventide Healthcare & Life Sciences Fund 

Wellington Biomedical Innovation Master Investors (Cayman) I L.P. 

Cowen Healthcare Investments III LP 

CHI EF III LP Acorn Bioventures, L.P. 

Ample Plus Fund Limited Partnership

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00325-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00325-of-00352.parquet"}]]