Document:

EX-10.12

 Exhibit 10.12 
  

 
 EXECUTION VERSION 

Bank of America, N.A. 
 c/o Merrill Lynch, Pierce,
Fenner & Smith Incorporated 
 One Bryant Park 
 New
York, NY 10036 
 Attn:                   Gary Rosenblum, Managing
Director, Associate General Counsel 
 Telephone:         646-855-3684 

Facsimile:          704-208-2869 

January 27, 2017 
  

	To:	Horizon Global Corporation 

 2600 West Big Beaver Road, Suite 555 

Troy, Michigan 48084 
 Attention:
            Legal Director 
 Telephone No.:     248-593-8838

 Facsimile No.:      248-480-4175 
  

	Re:	Additional Warrants 

 The purpose of this letter agreement (this
“Confirmation”) is to confirm the terms and conditions of the Warrants issued by Horizon Global Corporation (“Company”) to Bank of America, N.A. (“Dealer”) as of the Trade Date specified below (the
“Transaction”). This letter agreement constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below. Each party further agrees that this Confirmation together with the Agreement evidence a
complete binding agreement between Company and Dealer as to the subject matter and terms of the Transaction to which this Confirmation relates, and shall supersede all prior or contemporaneous written or oral communications with respect thereto.

 The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”), are incorporated into this Confirmation. In the event of any inconsistency between the Equity Definitions and this
Confirmation, this Confirmation shall govern.  
 Each party is hereby advised, and each such party acknowledges, that the other
party has engaged in, or refrained from engaging in, substantial financial transactions and has taken other material actions in reliance upon the parties’ entry into the Transaction to which this Confirmation relates on the terms and conditions
set forth below. 
 1. This Confirmation evidences a complete and binding agreement between Dealer and Company as to the terms of the Transaction to which
this Confirmation relates. This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the “Agreement”) as if Dealer and Company had executed an agreement in such
form (but without any Schedule except for the election of the laws of the State of New York as the governing law (without reference to choice of law doctrine)) on the Trade Date. In the event of any inconsistency between provisions of that Agreement
and this Confirmation, this Confirmation will prevail for the purpose of the Transaction to which this Confirmation relates. The parties hereby agree that no Transaction other than the Transaction to which this Confirmation relates shall be governed
by the Agreement. 
 2. The Transaction is a Warrant Transaction, which shall be considered a Share Option Transaction for purposes of the Equity
Definitions. The terms of the particular Transaction to which this Confirmation relates are as follows: 
  

			
	 General Terms.
	  	
		
	 Trade Date:
	  	January 27, 2017
		
	 Effective Date:
	  	The third Exchange Business Day immediately prior to the Premium Payment Date

			
		
	 Warrants:
	  	Equity call warrants, each giving the holder the right to purchase a number of Shares equal to the Warrant Entitlement at a price per Share equal to the Strike Price, subject to the terms set forth under the caption
“Settlement Terms” below. For the purposes of the Equity Definitions, each reference to a Warrant herein shall be deemed to be a reference to a Call Option.
		
	 Warrant Style:
	  	European
		
	 Seller:
	  	Company
		
	 Buyer:
	  	Dealer
		
	 Shares:
	  	The common stock of Company, par value USD 0.01 per share (Exchange symbol “HZN”)
		
	 Number of Warrants:
	  	180,180. For the avoidance of doubt, the Number of Warrants shall be reduced by any Warrants exercised or deemed exercised hereunder. In no event will the Number of Warrants be less than zero.
		
	 Warrant Entitlement:
	  	One Share per Warrant
		
	 Strike Price:
	  	USD 29.6000.
		
		  	Notwithstanding anything to the contrary in the Agreement, this Confirmation or the Equity Definitions, in no event shall the Strike Price be subject to adjustment to the extent that, after giving effect to such adjustment, the
Strike Price would be less than USD 19.44, except for any adjustment pursuant to the terms of this Confirmation and the Equity Definitions in connection with stock splits or similar changes to Company’s capitalization.
		
	 Premium:
	  	USD 772,650
		
	 Premium Payment Date:
	  	February 1, 2017
		
	 Exchange:
	  	The New York Stock Exchange
		
	 Related Exchange(s):
	  	All Exchanges
		
	 Procedures for Exercise.
	  	
		
	 Expiration Time:
	  	The Valuation Time
		
	 Expiration Dates:
	  	Each Scheduled Trading Day during the period from, and including, the First Expiration Date to, but excluding, the 120th Scheduled Trading Day following the First Expiration
Date shall be an “Expiration Date” for a number of Warrants equal to the Daily Number of Warrants on such date; provided that, notwithstanding anything to the contrary in the Equity Definitions, if any such date is a Disrupted Day,
the Calculation Agent shall make adjustments, if applicable, to the Daily Number of Warrants or shall reduce such Daily Number of Warrants to zero for which such day shall be an Expiration Date

  
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		  	and shall designate a Scheduled Trading Day or a number of Scheduled Trading Days as the Expiration Date(s) for the remaining Daily Number of Warrants or a portion thereof for the originally scheduled Expiration Date; and
provided further that if such Expiration Date has not occurred pursuant to this clause as of the eighth Scheduled Trading Day following the last scheduled Expiration Date under the Transaction, the Calculation Agent shall have the right to
declare such Scheduled Trading Day to be the final Expiration Date and the Calculation Agent shall determine its good faith estimate of the fair market value for the Shares as of the Valuation Time on that eighth Scheduled Trading Day or on any
subsequent Scheduled Trading Day, as the Calculation Agent shall determine using commercially reasonable means.
		
	 First Expiration Date:
	  	October 1, 2022 (or if such day is not a Scheduled Trading Day, the next following Scheduled Trading Day), subject to Market Disruption Event below, and subject to earlier termination or “Cancellation and
Payment.”
		
	 Daily Number of Warrants:
	  	For any Expiration Date, the Number of Warrants that have not expired or been exercised as of such day, divided by the remaining number of Expiration Dates (including such day), rounded down to the nearest whole number,
subject to adjustment pursuant to the provisos to “Expiration Dates”.
		
	 Automatic Exercise:
	  	Applicable; and means that for each Expiration Date, a number of Warrants equal to the Daily Number of Warrants for such Expiration Date will be deemed to be automatically exercised at the Expiration Time on such Expiration
Date.
		
	 Market Disruption Event:
	  	Section 6.3(a) of the Equity Definitions is hereby amended by replacing clause (ii) in its entirety with “(ii) an Exchange Disruption, or” and inserting immediately following clause (iii) the phrase “; in each case
that the Calculation Agent determines is material.”
		
		  	Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the words “Scheduled Closing Time” in the fourth line thereof.
		
	 Valuation Terms.
	  	
		
	 Valuation Time:
	  	Scheduled Closing Time; provided that if the principal trading session is extended, the Calculation Agent shall determine the Valuation Time in its reasonable discretion.
		
	 Valuation Date:
	  	Each Exercise Date.
		
	 Settlement Terms.
	  	
		
	 Settlement Method:
	  	Net Share Settlement.

  
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	 Net Share Settlement:
	  	On the relevant Settlement Date, Company shall deliver to Dealer a number of Shares equal to the Share Delivery Quantity for such Settlement Date to the account specified herein free of payment through the Clearance System, and
Dealer shall be treated as the holder of record of such Shares at the time of delivery of such Shares or, if earlier, at 5:00 p.m. (New York City time) on such Settlement Date, and Company shall pay to Dealer cash in lieu of any fractional Share
based on the Settlement Price on the relevant Valuation Date.
		
	 Share Delivery Quantity:
	  	For any Settlement Date, a number of Shares, as calculated by the Calculation Agent, equal to the Net Share Settlement Amount for such Settlement Date divided by the Settlement Price on the Valuation Date for such
Settlement Date.
		
	 Net Share Settlement Amount:
	  	For any Settlement Date, an amount equal to the product of (i) the number of Warrants exercised or deemed exercised on the relevant Exercise Date, (ii) the Strike Price Differential for the relevant Valuation Date and (iii) the
Warrant Entitlement.
		
	 Settlement Price:
	  	For any Valuation Date, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page HZN <equity> AQR (or any successor thereto) in respect of the period from the
scheduled opening time of the Exchange to the Scheduled Closing Time on such Valuation Date (or if such volume-weighted average price is unavailable, the market value of one Share on such Valuation Date, as determined by the Calculation Agent).
Notwithstanding the foregoing, if (i) any Expiration Date is a Disrupted Day and (ii) the Calculation Agent determines that such Expiration Date shall be an Expiration Date for fewer than the Daily Number of Warrants, as described above, then the
Settlement Price for the relevant Valuation Date shall be the volume-weighted average price per Share on such Valuation Date on the Exchange, as determined by the Calculation Agent based on such sources as it deems appropriate using a
volume-weighted methodology, for the portion of such Valuation Date for which the Calculation Agent determines there is no Market Disruption Event.
		
	 Settlement Dates:
	  	As determined pursuant to Section 9.4 of the Equity Definitions, subject to Section 9(k)(i) hereof.
		
	 Other Applicable Provisions:
	  	The provisions of Sections 9.1(c), 9.8, 9.9, 9.11 and 9.12 of the Equity Definitions will be applicable, except that all references in such provisions to “Physically-settled” shall be read as references to “Net
Share Settled.” “Net Share Settled” in relation to any Warrant means that Net Share Settlement is applicable to that Warrant.
		
	 Representation and Agreement:
	  	Notwithstanding Section 9.11 of the Equity Definitions, the parties acknowledge that any Shares delivered to Dealer may be, upon delivery, subject to restrictions and limitations arising from Company’s status as issuer of
the Shares under applicable securities laws.

  
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	3.	Additional Terms applicable to the Transaction. 

  

			
	 Adjustments applicable to the Transaction:
	  	
		
	 Method of Adjustment:
	  	Calculation Agent Adjustment. For the avoidance of doubt, in making any adjustments under the Equity Definitions, the Calculation Agent may make adjustments, if any, to any one or more of the Strike Price, the Number of Warrants,
the Daily Number of Warrants and the Warrant Entitlement. Notwithstanding the foregoing, any cash dividends or distributions on the Shares, whether or not extraordinary, shall be governed by Section 9(f) of this Confirmation in lieu of Article 10 or
Section 11.2(c) of the Equity Definitions.
		
	 Extraordinary Events applicable to the Transaction:
	  	
		
	 New Shares:
	  	Section 12.1(i) of the Equity Definitions is hereby amended (a) by deleting the text in clause (i) thereof in its entirety (including the word “and” following clause (i)) and replacing it with the phrase “publicly
quoted, traded or listed (or whose related depositary receipts are publicly quoted, traded or listed) on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors)” and (b)
by inserting immediately prior to the period the phrase “and (iii) of an entity or person that is a corporation organized under the laws of the United States, any State thereof or the District of Columbia that also becomes Company under the
Transaction following such Merger Event or Tender Offer”.
		
	 Consequence of Merger Events:
	  	
		
	 Merger Event:
	  	Applicable; provided that if an event occurs that constitutes both a Merger Event under Section 12.1(b) of the Equity Definitions and an Additional Termination Event under Section 9(h)(ii)(B) of this Confirmation, the
provisions of Section 9(h)(ii)(B) will apply.
		
	 Share-for-Share:
	  	Modified Calculation Agent Adjustment
		
	 Share-for-Other:
	  	Cancellation and Payment (Calculation Agent Determination)
		
	 Share-for-Combined:
	  	Component Adjustment (Calculation Agent Determination)
		
	 Consequence of Tender Offers:
	  	
		
	 Tender Offer:
	  	Applicable; provided that if an event occurs that constitutes both a Tender Offer under Section 12.1(d) of the Equity Definitions and Additional Termination Event under Section 9(h)(ii)(A) of this Confirmation, the
provisions of Section 9(h)(ii)(A) will apply.

  
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	 Share-for-Share:
	  	Modified Calculation Agent Adjustment
		
	 Share-for-Other:
	  	Modified Calculation Agent Adjustment
		
	 Share-for-Combined:
	  	Modified Calculation Agent Adjustment
		
	 Consequences of Announcement Events:
	  	Modified Calculation Agent Adjustment as set forth in Section 12.3(d) of the Equity Definitions; provided that, in respect of an Announcement Event, (x) references to “Tender Offer” shall be replaced by
references to “Announcement Event” and references to “Tender Offer Date” shall be replaced by references to “date of such Announcement Event”, (y) the word “shall” in the second line shall be replaced
with “may” and the fifth and sixth lines shall be deleted in their entirety and replaced with the words “effect on the Warrants of such Announcement Event solely to account for changes in volatility, expected dividends, stock loan
rate or liquidity relevant to the Shares or the Warrants”, and (z) for the avoidance of doubt, the Calculation Agent may determine whether the relevant Announcement Event has had a material effect on the Transaction (and, if so, adjust the
terms of the Transaction accordingly) on one or more occasions on or after the date of the Announcement Event up to, and including, the Expiration Date, any Early Termination Date and/or any other date of cancellation, it being understood that any
adjustment in respect of an Announcement Event shall take into account any earlier adjustment relating to the same Announcement Event. An Announcement Event shall be an “Extraordinary Event” for purposes of the Equity Definitions, to which
Article 12 of the Equity Definitions is applicable.
		
	 Announcement Event:
	  	(i) The public announcement by any entity of (x) any transaction or event that, if completed, would constitute a Merger Event or Tender Offer, (y) any potential acquisition by Issuer and/or its subsidiaries where the aggregate
consideration exceeds 25% of the market capitalization of Issuer as of the date of such announcement (an “Acquisition Transaction”) or (z) the intention to enter into a Merger Event or Tender Offer or an Acquisition
Transaction, (ii) the public announcement by Issuer of an intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, a Merger Event or Tender Offer or an Acquisition Transaction or (iii)
any subsequent public announcement by any entity of a change to a transaction or intention that is the subject of an announcement of the type described in clause (i) or (ii) of this sentence (including, without limitation, a new announcement,
whether or not by the same party, relating to such a transaction or intention or the announcement of a withdrawal from, or the abandonment or discontinuation of, such a transaction or intention), as determined by the

  
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		  	Calculation Agent. For the avoidance of doubt, the occurrence of an Announcement Event with respect to any transaction or intention shall not preclude the occurrence of a later Announcement Event with respect to such transaction
or intention. For purposes of this definition of “Announcement Event,” the remainder of the definition of “Merger Event” in Section 12.1(b) of the Equity Definitions following the definition of “Reverse Merger” therein
shall be disregarded.
		
	 Nationalization, Insolvency or Delisting:
	  	Cancellation and Payment (Calculation Agent Determination); provided that, in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it will also constitute a Delisting if the Exchange is located in
the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately
re-listed, re-traded or re-quoted on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors), such exchange or quotation system shall thereafter be deemed to be the
Exchange.
		
	Additional Disruption Events:	  	
		
	 Change in Law:
	  	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the word “Shares” with the phrase “Hedge Positions” in clause (X) thereof and
(ii) inserting the parenthetical “(including, for the avoidance of doubt and without limitation, adoption or promulgation of new regulations authorized or mandated by existing statute)” at the end of clause (A) thereof.
		
	 Failure to Deliver:
	  	Not Applicable
		
	 Insolvency Filing:
	  	Applicable
		
	 Hedging Disruption:
	  	Applicable; provided that:
		
		  	 (i)     Section 12.9(a)(v) of the Equity Definitions is hereby amended
by (a) inserting the following words at the end of clause (A) thereof: “in the manner contemplated by the Hedging Party on the Trade Date” and (b) inserting the following two phrases at the end of such Section:

		
		  	 “For the avoidance of doubt, the term “equity price risk” shall be deemed to include, but shall not
be limited to, stock price and volatility risk. And, for the further avoidance of doubt, any such transactions or assets referred to in phrases (A) or (B) above must be available on commercially reasonable pricing terms.”; and

		
		  	 (ii)    Section 12.9(b)(iii) of the Equity Definitions is hereby amended by
inserting in the third line thereof, after the words “to terminate the Transaction”, the words “or a portion of the Transaction affected by such Hedging Disruption”.

  
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	 Increased Cost of Hedging:
	  	Applicable; provided that Section 12.9(a)(vi) of the Equity Definitions is amended and restated in its entirety as follows: “(vi) “Increased Cost of Hedging” means that the Hedging Party would incur a
materially increased (as compared with the circumstances that existed on the Trade Date) amount of tax, duty, expense or fee (other than brokerage commissions) (a “Hedging Cost”) to (A) acquire, establish, re-establish, substitute,
maintain, unwind or dispose of its Hedge Position(s) or (B) realize, recover or remit the proceeds of its Hedge Position(s); provided that the Hedging Party shall use good faith efforts to avoid so incurring such a materially increased
Hedging Cost on terms reasonably acceptable to the Hedging Party, so long as (i) the Hedging Party would not incur a materially increased cost (including, without limitation, due to any increase in tax liability, decrease in tax benefit or other
adverse effect on its tax position, or any increase in margin or capital requirements), as reasonably determined by the Hedging Party, in doing so (in each case, within the context of the Transaction), (ii) the Hedging Party would not violate any
applicable law, rule, regulation or policy of the Hedging Party, as reasonably determined by the Hedging Party, in doing so, (iii) the Hedging Party would not suffer any penalty, injunction, non-financial burden, reputational harm or material
adverse consequence, as reasonably determined by the Hedging Party, in doing so, (iv) the Hedging Party would not incur any material operational or administrative burden (in each case, within the context of the Transaction), as reasonably determined
by the Hedging Party, in doing so and (v) the Hedging Party would not be required to enter into alternate Hedge Positions with any third party with whom it has no existing business relationship in respect of transactions similar to the Hedge
Positions, or third parties who would not meet the internal credit limits or other risk-based requirements of the Hedging Party; provided further that any such materially increased amount that is incurred solely due to the deterioration of
the creditworthiness of the Hedging Party shall not be deemed an Increased Cost of Hedging;”.
		
	 Loss of Stock Borrow:
	  	Applicable
		
	 Maximum Stock Loan Rate:
	  	100 basis points
		
	 Increased Cost of Stock Borrow:
	  	Applicable
		
	 Initial Stock Loan Rate:
	  	0 basis points until July 1, 2022 and 25 basis points thereafter.
		
	 Hedging Party:
	  	For all applicable Additional Disruption Events, Dealer; provided that, when making any calculation as “Hedging Party,” Dealer shall be bound by the same obligations

  
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		  	relating to required acts of the Calculation Agent as set forth in Section 1.40 of the Equity Definitions and this Confirmation as if the Hedging Party were the Calculation Agent.
		
		  	With respect to any Hedging Disruption or Increased Cost of Hedging, upon reasonable written request of Company following the occurrence of such Hedging Disruption or Increased Cost of Hedging, as the case may be, the Hedging
Party shall promptly provide to Company an explanation describing in reasonable detail: (i) the nature of such Hedging Disruption or (ii) any calculation made by the Hedging Party with respect to such Increased Cost of Hedging, as the case may be;
provided that in no event shall the Hedging Party be obligated to disclose (x) any proprietary or confidential models, positions or information or (y) any other information to the extent such disclosure, in the case of this clause (y), would
be in violation of any applicable law or regulation, or any applicable policies or contractual obligations, so long as such policies or contractual obligations are generally applicable in similar situations and consistently applied to the
Transaction.
		
	 Determining Party:
	  	For all applicable Extraordinary Events, Dealer; provided that, when making any calculation as “Determining Party,” Dealer shall be bound by the same obligations relating to required acts of the Calculation Agent
as set forth in Section 1.40 of the Equity Definitions and this Confirmation as if the Determining Party were the Calculation Agent.
		
	 Hedging Adjustments:
	  	For the avoidance of doubt, whenever the Calculation Agent, Determining Party or Hedging Party is called upon to make an adjustment pursuant to the terms of this Confirmation or the Equity Definitions to take into account the
effect of an event, the Calculation Agent, Determining Party or Hedging Party, as the case may be, shall make such adjustment by reference to the effect of such event on Dealer, assuming that Dealer maintains a commercially reasonable Hedge
Position.
		
	 Non-Reliance:
	  	Applicable
		
	Agreements and Acknowledgments Regarding Hedging Activities:	  	Applicable
		
	Additional Acknowledgments:	  	Applicable

  

			
		
	4.    Calculation Agent.	  	Dealer. All calculations and determinations by the Calculation Agent shall be made in good faith and in a commercially reasonable manner.
		
	5.    Account Details.	  	

  

	 	(a)	Account for payments to Company: 

 Bank: 

  
 9 

 ABA#: 

Acct No.: 
 Beneficiary: 

Ref: 
 Account for delivery of
Shares from Company: 
 To be provided by Company. 
  

	 	(b)	Account for payments to Dealer: 

 Bank of America, N.A. 

New York, NY 

SWIFT: 

Bank Routing: 

Account Name: 

Account No. : 

Account for delivery of Shares to Dealer: 

To be provided by Dealer. 
  

	6.	Offices. 

  

	 	(a)	The Office of Company for the Transaction is: Inapplicable, Company is not a Multibranch Party. 

  

	 	(b)	The Office of Dealer for the Transaction is: New York 

  

	7.	Notices.  

  

	 	(a)	Address for notices or communications to Company: 

[                     ]

  

	 	(b)	Address for notices or communications to Dealer: 

 To: 

Attn: 

Telephone: 

Facsimile: 
  

	8.	Representations and Warranties of Company. 

 Each of the representations
and warranties of Company set forth in Section 1(a) of the Underwriting Agreement (the “Underwriting Agreement”), dated as of January 26, 2017, among Company and J.P. Morgan Securities LLC and Wells Fargo Securities, LLC,
as representatives of the Underwriters party thereto (the “Underwriters”), are true and correct and are hereby deemed to be repeated to Dealer as if set forth herein. Company hereby further represents and warrants to Dealer on the
date hereof, on and as of the Premium Payment Date and, solely in the case of the representations in Section 8(d), at all times until termination of the Transaction, that: 
  

	 	(a)	Company has all necessary corporate power and authority to execute, deliver and perform its obligations in respect of the Transaction; such execution, delivery and performance have been duly authorized by all necessary
corporate action on Company’s part; and this Confirmation has been duly and validly executed and delivered by Company and constitutes its valid and binding obligation, enforceable against Company in accordance with its terms, subject to
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity, including principles
of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity) and except that rights to indemnification and contribution hereunder may be limited by federal or state
securities laws or public policy relating thereto. 

  
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	 	(b)	Neither the execution and delivery of this Confirmation nor the incurrence or performance of obligations of Company hereunder will conflict with or result in a breach of the certificate of incorporation or by-laws (or any equivalent documents) of Company, or any applicable law or regulation, or any order, writ, injunction or decree of any court or governmental authority or agency, or any agreement or instrument to
which Company or any of its subsidiaries is a party or by which Company or any of its subsidiaries is bound or to which Company or any of its subsidiaries is subject, or constitute a default under, or result in the creation of any lien under, any
such agreement or instrument. 

  

	 	(c)	No consent, approval, authorization, or order of, or filing with, any governmental agency or body or any court is required in connection with the execution, delivery or performance by Company of this Confirmation,
except such as have been obtained or made and such as may be required under the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or
state securities laws. 

  

	 	(d)	A number of Shares equal to the Maximum Number of Shares (as defined below) (the “Warrant Shares”) have been reserved for issuance by all required corporate action of Company. The Warrant Shares have
been duly authorized and, when delivered against payment therefor (which may include Net Share Settlement in lieu of cash) and otherwise as contemplated by the terms of the Warrants following the exercise of the Warrants in accordance with the terms
and conditions of the Warrants, will be validly issued, fully-paid and non-assessable, and the issuance of the Warrant Shares will not be subject to any preemptive rights. 

 

	 	(e)	Company is not and, after consummation of the transactions contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as
amended. 

  

	 	(f)	Company is an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended (the “CEA”), other than a person that is an eligible
contract participant under Section 1a(18)(C) of the CEA). 

  

	 	(g)	Company and each of its affiliates is not, on the date hereof, in possession of any material non-public information with respect to Company or the Shares. 

 

	 	(h)	No state or local (including any non-U.S. jurisdiction’s) law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including
without limitation a requirement to obtain prior approval from any person or entity) as a result of Dealer or its affiliates owning or holding (however defined) Shares. 

 

	 	(i)	Company (A) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; (B) will exercise
independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the broker-dealer in writing; and (C) has total assets of at least $50 million. 

Dealer hereby represents and warrants to Company on the date hereof and on and as of the Premium Payment Date that (a) Dealer is a
“qualified institutional buyer,” as defined in Rule 144A under the Securities Act, and (b) Dealer is an “eligible contract participant” (as such term is defined in Section 1a(18) of the CEA, other than a person that is
an eligible contract participant under Section 1a(18)(C) of the CEA). 

  
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	9.	Other Provisions. 

  

	 	(a)	Opinions. Company shall deliver to Dealer an opinion of counsel, dated as of the Premium Payment Date, with respect to the matters set forth in Sections 8(a) through (d) of this Confirmation. Delivery of
such opinion to Dealer shall be a condition precedent for the purpose of Section 2(a)(iii) of the Agreement with respect to each obligation of Dealer under Section 2(a)(i) of the Agreement. 

 

	 	(b)	Repurchase Notices. Company shall, on any day on which Company effects any repurchase of Shares, promptly give Dealer a written notice of such repurchase (a “Repurchase Notice”) on such
day if following such repurchase, the number of outstanding Shares on such day, subject to any adjustments provided herein, is (i) less than 19.9 million (in the case of the first such notice) or (ii) thereafter more than
0.9 million less than the number of Shares included in the immediately preceding Repurchase Notice. Company agrees to indemnify and hold harmless Dealer and its affiliates and their respective officers, directors, employees, affiliates,
advisors, agents and controlling persons (each, an “Indemnified Person”) from and against any and all losses (including losses relating to Dealer’s hedging activities as a consequence of becoming, or of the risk of becoming, a
Section 16 “insider”, including without limitation, any forbearance from hedging activities or cessation of hedging activities and any losses in connection therewith with respect to the Transaction), claims, damages, judgments,
liabilities and expenses (including reasonable attorney’s fees), joint or several, which an Indemnified Person actually may become subject to, as a result of Company’s failure to provide Dealer with a Repurchase Notice on the day and in
the manner specified in this paragraph, and to reimburse, within 30 days, upon written request, each of such Indemnified Persons for any reasonable legal or other expenses incurred in connection with investigating, preparing for, providing testimony
or other evidence in connection with or defending any of the foregoing; provided that Company shall not be liable for any failure to so reimburse such Indemnified Persons within 30 days of such written request if such failure to timely
reimburse is due to the existence of a good faith dispute, as to either the existence of the obligation of Company to indemnify such Indemnified Persons or the amount of such indemnification, so long as Company shall have notified such Indemnified
Persons of such dispute prior to such 30th day and Company promptly satisfies any reimbursement obligation following resolution of such dispute (if any such obligation is determined to exist). If
any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against the Indemnified Person, such Indemnified Person shall promptly notify Company in writing, and Company, upon
request of the Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others Company may designate in such proceeding and shall pay the reasonable fees and expenses of
such counsel related to such proceeding. Company shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, Company agrees to
indemnify any Indemnified Person from and against any loss or liability by reason of such settlement or judgment. Company shall not, without the prior written consent of the Indemnified Person, effect any settlement of any pending or threatened
proceeding in respect of which any Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Indemnified Person, unless such settlement includes an unconditional release of such Indemnified Person from
all liability on claims that are the subject matter of such proceeding on terms reasonably satisfactory to such Indemnified Person. If the indemnification provided for in this paragraph is unavailable to an Indemnified Person or insufficient in
respect of any losses, claims, damages or liabilities referred to therein, then Company under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a
result of such losses, claims, damages or liabilities. The remedies provided for in this paragraph are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in equity. The
indemnity and contribution agreements contained in this paragraph shall remain operative and in full force and effect regardless of the termination of the Transaction. 

 

	 	(c)	Regulation M. Company is not on the Trade Date engaged in a distribution, as such term is used in Regulation M under the Exchange Act, of any securities of Company, other than (i) a distribution
meeting the requirements of the exception set forth in Rules 101(b)(10) and 102(b)(7) of Regulation M, (ii) the distribution of up to USD 125,000,000 principal amount of 2.75% Convertible Senior Notes due July 1, 2022 and (iii) the
distribution of up to 4,600,000 Shares concurrently with the distribution of such 2.75% Convertible Senior Notes due July 1, 2022. Company shall not, until the second Scheduled Trading Day immediately following the Effective Date, engage in any
such distribution. 

  
 12 

	 	(d)	No Manipulation. Company is not entering into the Transaction to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or
depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares) or otherwise in violation of the Exchange Act. 

 

	 	(e)	 Transfer or Assignment. Company may not transfer any of its rights or obligations under the
Transaction without the prior written consent of Dealer. Dealer may, without Company’s consent, transfer or assign all or any part of its rights or obligations under the Transaction to any third party; provided that, at the time of such
transfer or assignment, (i) Company will not, as a result of such transfer or assignment, be required to pay the transferee on any payment date an amount under Section 2(d)(i)(4) of the Agreement greater than the amount, if any, that
Company would have been required to pay to Dealer in the absence of such transfer or assignment and (ii) no Event of Default, Potential Event of Default or Termination Event shall occur as a result of such transfer or assignment. If at any time
at which (A) the Section 16 Percentage exceeds 7.5%, (B) the Warrant Equity Percentage exceeds 14.5%, or (C) the Share Amount exceeds the Applicable Share Limit (if any applies) (any such condition described in clauses (A),
(B) or (C), an “Excess Ownership Position”), Dealer is unable after using its commercially reasonable efforts to effect a transfer or assignment of Warrants to a third party on pricing terms reasonably acceptable to Dealer and
within a time period reasonably acceptable to Dealer such that no Excess Ownership Position exists, then Dealer may designate any Exchange Business Day as an Early Termination Date with respect to a portion of the Transaction (the
“Terminated Portion”), such that following such partial termination no Excess Ownership Position exists. In the event that Dealer so designates an Early Termination Date with respect to a Terminated Portion, a payment shall be made
pursuant to Section 6 of the Agreement as if (1) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Transaction and a Number of Warrants equal to the number of Warrants underlying the
Terminated Portion, (2) Company were the sole Affected Party with respect to such partial termination and (3) the Terminated Portion were the sole Affected Transaction (and, for the avoidance of doubt, the provisions of Section 9(j) shall
apply to any amount that is payable by Company to Dealer pursuant to this sentence as if Company was not the Affected Party). The “Section 16 Percentage” as of any day is the fraction, expressed as a percentage, (A) the
numerator of which is the number of Shares that Dealer and any of its affiliates or any other person subject to aggregation with Dealer for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act, or any
“group” (within the meaning of Section 13 of the Exchange Act) of which Dealer is or may be deemed to be a part beneficially owns (within the meaning of Section 13 of the Exchange Act), without duplication, on such day (or, to
the extent that for any reason the equivalent calculation under Section 16 of the Exchange Act and the rules and regulations thereunder results in a higher number, such higher number) and (B) the denominator of which is the number of
Shares outstanding on such day. The “Warrant Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the sum of (1) the product of the Number of Warrants and the Warrant
Entitlement and (2) the aggregate number of Shares underlying any other warrants purchased by Dealer from Company, and (B) the denominator of which is the number of Shares outstanding. The “Share Amount” as of any day is
the number of Shares that Dealer and any person whose ownership position would be aggregated with that of Dealer (Dealer or any such person, a “Dealer Person”) under any law, rule, regulation, regulatory order or organizational
documents or contracts of Company that are, in each case, applicable to ownership of Shares (“Applicable Restrictions”), owns, beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a relevant
definition of ownership under any Applicable Restriction, as determined by Dealer in its reasonable discretion. The “Applicable Share Limit” means a number of Shares equal to (A) the minimum number of Shares that could give
rise to reporting or registration obligations or other requirements (including obtaining prior approval from any person or entity) of a Dealer Person, or could result in an adverse effect on a Dealer Person, under any Applicable Restriction, as
determined by Dealer in its reasonable discretion, minus (B) 1% of the 

  
 13 

	 	
number of Shares outstanding. Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other
securities, or make or receive any payment in cash, to or from Company, Dealer may designate any of its affiliates to purchase, sell, receive or deliver such Shares or other securities, or make or receive such payment in cash, and otherwise to
perform Dealer’s obligations in respect of the Transaction and any such designee may assume such obligations. Dealer shall be discharged of its obligations to Company to the extent of any such performance. 

 

	 	(f)	Dividends. If at any time during the period from and including the Effective Date, to and including the last Expiration Date, an ex-dividend date for a cash dividend occurs with respect to the Shares, then
the Calculation Agent will adjust any of the Strike Price, Number of Warrants, Daily Number of Warrants and/or any other variable relevant to the exercise, settlement or payment of the Transaction to preserve the fair value of the Warrants to Dealer
after taking into account such dividend. 

  

	 	(g)	[Reserved] 

  

	 	(h)	Additional Provisions. 

  

	 	(i)	Amendments to the Equity Definitions: 

  

	 	(A)	Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative” and replacing them with the words “an”; and adding the phrase “or
Warrants” at the end of the sentence. 

  

	 	(B)	Section 11.2(c) of the Equity Definitions is hereby amended by (w) replacing the words “a diluting or concentrative” with “an” in the fifth line thereof, (x) adding the phrase “or
Warrants” after the words “the relevant Shares” in the same sentence, (y) deleting the words “diluting or concentrative” in the sixth to last line thereof and (z) deleting the phrase “(provided that no
adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)” and replacing it with the phrase “(and, for the avoidance of doubt, adjustments may be
made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares).” 

  

	 	(C)	Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative” and replacing them with the word “a material”; and adding the phrase “or
Warrants” at the end of the sentence. 

  

	 	(D)	[Reserved] 

  

	 	(E)	Section 12.9(b)(iv) of the Equity Definitions is hereby amended by: 

  

	 	(x)	deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)” following subsection (A) and (3) the phrase “in each case” in subsection (B); and 

 

	 	(y)	replacing the phrase “neither the Non-Hedging Party nor the Lending Party lends Shares” with the phrase “such Lending Party does not lend Shares” in the penultimate sentence. 

 

	 	(F)	Section 12.9(b)(v) of the Equity Definitions is hereby amended by: 

  

	 	(x)	adding the word “or” immediately before subsection “(B)” and deleting the comma at the end of subsection (A); and 

  
 14 

	 	(y)	(1) deleting subsection (C) in its entirety, (2) deleting the word “or” immediately preceding subsection (C), (3) deleting the penultimate sentence in its entirety and replacing it with the
sentence “The Hedging Party will determine the Cancellation Amount payable by one party to the other.” and (4) deleting clause (X) in the final sentence. 

 

	 	(G)	Section 12.9(b)(vi) of the Equity Definitions is hereby amended by (1) adding to the end of clause (C) of the second sentence thereof the words “if, in the case of any such election to terminate by
Company, Company represents that (x) it is not in possession of any material nonpublic information with respect to the Issuer or the Shares and (y) Company is electing to terminate the Transaction in good faith and not as part of a plan or
scheme to evade the U.S. securities laws” and (2) adding to the last sentence after the words “terminate the Transaction” the words “in accordance with the above”. 

 

	 	(ii)	Notwithstanding anything to the contrary in this Confirmation, upon the occurrence of one of the following events, with respect to the Transaction, (1) Dealer shall have the right to designate such event an
Additional Termination Event and designate an Early Termination Date pursuant to Section 6(b) of the Agreement, (2) Company shall be deemed the sole Affected Party with respect to such Additional Termination Event and (3) the
Transaction, or, at the election of Dealer in its sole discretion, any portion of the Transaction, shall be deemed the sole Affected Transaction; provided that if Dealer so designates an Early Termination Date with respect to a portion of the
Transaction, (a) a payment shall be made pursuant to Section 6 of the Agreement as if an Early Termination Date had been designated in respect of a Transaction having terms identical to the Transaction and a Number of Warrants equal to the
number of Warrants included in the terminated portion of the Transaction, and (b) for the avoidance of doubt, the Transaction shall remain in full force and effect except that the Number of Warrants shall be reduced by the number of Warrants
included in such terminated portion: 

  

	 	(A)	A “person” or “group” within the meaning of Section 13(d) of the Exchange Act, other than Company, its wholly owned subsidiaries and its and their employee benefit plans, has become the direct
or indirect “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of Shares representing more than 50% of the voting power of the Shares. 

 

	 	(B)	Consummation of (I) any recapitalization, reclassification or change of the Shares (other than changes resulting from a subdivision or combination) as a result of which the Shares would be converted into, or
exchanged for, stock, other securities, other property or assets, (II) any share exchange, consolidation or merger of Company pursuant to which the Shares will be converted into cash, securities or other property or assets or (III) any sale,
lease or other transfer in one transaction or a series of transactions of all or substantially all of the consolidated assets of Company and its subsidiaries, taken as a whole, to any person other than one of Company’s wholly owned
subsidiaries. Notwithstanding the foregoing, any transaction or transactions set forth in clause (A) above or this clause (B) shall not constitute an Additional Termination Event if (x) at least 90% of the consideration received or to
be received by holders of the Shares, excluding cash payments for fractional Shares, in connection with such transaction or transactions consists of shares of common stock that are listed or quoted on any of The New York Stock Exchange, The NASDAQ
Global Select Market or The NASDAQ Global Market (or any of their respective successors) or will be so listed or quoted when issued or exchanged in connection with such transaction or transactions, and (y) as a result of such transaction or
transactions, the Shares will consist of such consideration, excluding cash payments for fractional Shares. 

  
 15 

	 	(C)	Default by Company or any of its subsidiaries with respect to any mortgage, agreement or other instrument under which there may be outstanding, or by which there may be secured or evidenced, any indebtedness for money
borrowed in excess of $25,000,000 (or its foreign currency equivalent) in the aggregate of Company and/or any such subsidiary, whether such indebtedness now exists or shall hereafter be created (i) resulting in such indebtedness becoming or
being declared due and payable or (ii) constituting a failure to pay the principal or interest of any such debt when due and payable at its stated maturity, upon required repurchase, upon declaration of acceleration or otherwise, and such
acceleration or failure to pay is not cured, waived, rescinded, stayed or annulled or such indebtedness is not discharged, as applicable, within a period of 30 days after written notice of such indebtedness becoming due and payable or such failure,
as the case may be, has been received by Company. 

  

	 	(D)	A final judgment or judgments for the payment of $5,000,000 (or its foreign currency equivalent) or more (excluding any amounts covered by insurance) in the aggregate rendered against Company or any of its subsidiaries,
which judgment is not discharged, bonded, paid, waived or stayed within 60 days after (I) the date on which the right to appeal thereof has expired if no such appeal has commenced, or (II) the date on which all rights to appeal have been
extinguished. 

  

	 	(E)	Dealer, despite using commercially reasonable efforts, is unable or reasonably determines that it is impractical or, based on the advice of counsel, illegal, to hedge its exposure with respect to the Transaction in the
public market without registration under the Securities Act or as a result of any legal, regulatory or self-regulatory requirements or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or
have been voluntarily adopted by Dealer). 

  

	 	(i)	No Collateral or Setoff. Notwithstanding any provision of the Agreement or any other agreement between the parties to the contrary, the obligations of each party hereunder are not secured by any
collateral. Neither party shall have the right to set off any obligations that it may have to the other party under the Transaction against any obligations such other party may have to it, whether arising under the Agreement, this Confirmation or
any other agreement between the parties hereto, by operation of law or otherwise. The provisions of Section 2(c) of the Agreement shall not apply to the Transaction. 

 

	 	(j)	Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events. 

If (a) an Early Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is designated with respect
to the Transaction or (b) the Transaction is cancelled or terminated upon the occurrence of an Extraordinary Event (except as a result of (i) a Nationalization, Insolvency or Merger Event in which the consideration to be paid to all
holders of Shares consists solely of cash, (ii) a Merger Event or Tender Offer that is within Company’s control, or (iii) an Event of Default in which Company is the Defaulting Party or a Termination Event in which Company is the
Affected Party other than an Event of Default of the type described in Section 5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a Termination Event of the type described in Section 5(b) of the Agreement, in each case
that resulted from an event or events outside Company’s control), and if Company would owe any amount to Dealer pursuant to Section 6(d)(ii) of the Agreement or any Cancellation Amount pursuant to Article 12 of the Equity Definitions (any
such amount, a “Payment Obligation”), then Company shall satisfy the Payment Obligation by the Share Termination Alternative (as defined below), unless (a) Company gives irrevocable telephonic notice to Dealer, confirmed in
writing within one Scheduled Trading Day, no later than 12:00 p.m. (New York City time) on the Merger Date, Tender Offer Date, Announcement Date (in the case of a Nationalization, Insolvency or Delisting), Early Termination

  
 16 

 
Date or date of cancellation, as applicable, of its election that the Share Termination Alternative shall not apply, (b) Company remakes the representation set forth in Section 8(g) as of
the date of such election and (c) Dealer agrees, in its commercially reasonable discretion, to such election, in which case the provisions of Section 12.7 or Section 12.9 of the Equity Definitions, or the provisions of
Section 6(d)(ii) of the Agreement, as the case may be, shall apply. 
  

					
		 	Share Termination Alternative:	    	 If applicable, Company shall deliver to Dealer the Share Termination Delivery Property on the date (the “Share Termination Payment
Date”) on which the Payment Obligation would otherwise be due pursuant to Section 12.7 or Section 12.9 of the Equity Definitions or Section 6(d)(ii) of the Agreement, as applicable, subject to Section 9(k)(i) below, in satisfaction, subject
to Section 9(k)(ii) below, of the relevant Payment Obligation, in the manner reasonably requested by Dealer free of payment.
  

		 	 Share Termination Delivery
	    	
		 	Property:	    	 A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the relevant Payment Obligation divided
by the Share Termination Unit Price. The Calculation Agent shall adjust the amount of Share Termination Delivery Property by replacing any fractional portion of a security therein with an amount of cash equal to the value of such fractional
security based on the values used to calculate the Share Termination Unit Price (without giving effect to any discount pursuant to Section 9(k)(i)).
  

		 	Share Termination Unit Price:	    	 The value of property contained in one Share Termination Delivery Unit on the date such Share Termination Delivery Units are to be delivered
as Share Termination Delivery Property, as determined by the Calculation Agent by commercially reasonable means. In the case of a Private Placement of Share Termination Delivery Units that are Restricted Shares (as defined below), as set forth in
Section 9(k)(i) below, the Share Termination Unit Price shall be determined by the discounted price applicable to such Share Termination Delivery Units. In the case of a Registration Settlement of Share Termination Delivery Units that are Restricted
Shares (as defined below) as set forth in Section 9(k)(ii) below, notwithstanding the foregoing, the Share Termination Unit Price shall be the Settlement Price on the Merger Date, Tender Offer Date, Announcement Date (in the case of a
Nationalization, Insolvency or Delisting), Early Termination Date or date of cancellation, as applicable. The Calculation Agent shall notify Company of the Share Termination Unit Price at the time of notification of such Payment Obligation to
Company or, if applicable, at the time the discounted price applicable to the relevant Share Termination Units is determined pursuant to Section 9(k)(i).
  

		 	Share Termination Delivery Unit:	    	One Share or, if the Shares have changed into cash or any other property or the right to receive cash or any other property as the result of a Nationalization, Insolvency or Merger Event (any such cash or other property, the
“Exchange Property”), a unit consisting of the type and amount of Exchange Property received by all holders of one Share (without consideration of any requirement to pay cash

  
 17 

							
		 		 		    	or other consideration in lieu of fractional amounts of any securities) in such Nationalization, Insolvency or Merger Event. If such Nationalization, Insolvency or Merger Event involves a choice of Exchange Property to be received
by holders, such holder shall be deemed to have elected to receive the maximum possible amount of cash.
				
		 		 	Failure to Deliver:	    	Inapplicable
				
		 		 	Other applicable provisions:	    	If Share Termination Alternative is applicable, the provisions of Sections 9.8, 9.9, 9.11 and 9.12 (as modified above) of the Equity Definitions will be applicable, except that all references in such provisions to
“Physically-settled” shall be read as references to “Share Termination Settled” and all references to “Shares” shall be read as references to “Share Termination Delivery Units”. “Share Termination
Settled” in relation to the Transaction means that the Share Termination Alternative is applicable to the Transaction.

  

	 	(k)	Registration/Private Placement Procedures. If, in the reasonable opinion of Dealer, based on the advice of counsel, following any delivery of Shares or Share Termination Delivery Property to Dealer
hereunder, such Shares or Share Termination Delivery Property would be in the hands of Dealer subject to any applicable restrictions with respect to any registration or qualification requirement or prospectus delivery requirement for such Shares or
Share Termination Delivery Property pursuant to any applicable federal or state securities law (including, without limitation, any such requirement arising under Section 5 of the Securities Act as a result of such Shares or Share Termination
Delivery Property being “restricted securities”, as such term is defined in Rule 144 under the Securities Act, or as a result of the sale of such Shares or Share Termination Delivery Property being subject to paragraph (c) of Rule 145
under the Securities Act) (such Shares or Share Termination Delivery Property, “Restricted Shares”), then delivery of such Restricted Shares shall be effected pursuant to either clause (i) or (ii) below at the election of
Company, unless Dealer waives the need for registration/private placement procedures set forth in (i) and (ii) below. Notwithstanding the foregoing, solely in respect of any Daily Number of Warrants exercised or deemed exercised on any
Expiration Date, Company shall elect, prior to the first Settlement Date for the first applicable Expiration Date, a Private Placement Settlement or Registration Settlement for all deliveries of Restricted Shares for all such Expiration Dates which
election shall be applicable to all remaining Settlement Dates for such Warrants and the procedures in clause (i) or clause (ii) below shall apply for all such delivered Restricted Shares on an aggregate basis commencing after the final
Settlement Date for such Warrants. The Calculation Agent shall make reasonable adjustments to settlement terms and provisions under this Confirmation to reflect a single Private Placement or Registration Settlement for such aggregate Restricted
Shares delivered hereunder. 

  

	 	(i)	 If Company elects to settle the Transaction pursuant to this clause (i) (a “Private Placement
Settlement”), then delivery of Restricted Shares by Company shall be effected in customary private placement procedures with respect to such Restricted Shares reasonably acceptable to Dealer; provided that Company may not elect a
Private Placement Settlement if, on the date of its election, it has taken, or caused to be taken, any action that would make unavailable either the exemption pursuant to Section 4(a)(2) of the Securities Act for the sale by Company to Dealer
(or any affiliate designated by Dealer) of the Restricted Shares or the exemption pursuant to Section 4(a)(1) or Section 4(a)(3) of the Securities Act for resales of the Restricted Shares by Dealer (or any such affiliate of Dealer). The
Private Placement Settlement of such Restricted Shares shall include reasonable and customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Dealer, due diligence rights (for Dealer or any
designated buyer of the Restricted Shares by Dealer), opinions and certificates, and such other documentation as is customary for private placement 

  
 18 

	 	
agreements, all reasonably acceptable to Dealer. In the case of a Private Placement Settlement, Dealer shall determine the appropriate discount to the Share Termination Unit Price (in the case of
settlement of Share Termination Delivery Units pursuant to Section 9(j) above) or premium to any Settlement Price (in the case of settlement of Shares pursuant to Section 2 above) applicable to such Restricted Shares in a commercially reasonable
manner and appropriately adjust the number of such Restricted Shares to be delivered to Dealer hereunder. Notwithstanding anything to the contrary in the Agreement or this Confirmation, the date of delivery of such Restricted Shares shall be the
Exchange Business Day following notice by Dealer to Company of such applicable discount or premium, as the case may be, and the number of Restricted Shares to be delivered pursuant to this clause (i). For the avoidance of doubt, delivery of
Restricted Shares shall be due as set forth in the previous sentence and not be due on the Share Termination Payment Date (in the case of settlement of Share Termination Delivery Units pursuant to Section 9(j) above) or on the Settlement Date for
such Restricted Shares (in the case of settlement in Shares pursuant to Section 2 above). 

  

	 	(ii)	If Company elects to settle the Transaction pursuant to this clause (ii) (a “Registration Settlement”), then Company shall promptly (but in any event no later than the beginning of the Resale
Period) file and use its reasonable best efforts to make effective under the Securities Act a registration statement or supplement or amend an outstanding registration statement in form and substance reasonably satisfactory to Dealer, to cover the
resale of such Restricted Shares in accordance with customary resale registration procedures, including covenants, conditions, representations, underwriting discounts (if applicable), commissions (if applicable), indemnities due diligence rights,
opinions and certificates, and such other documentation as is customary for equity resale underwriting agreements for companies of a similar size in a similar industry, all reasonably acceptable to Dealer. If Dealer, in its reasonable discretion, is
not satisfied with such procedures and documentation Private Placement Settlement shall apply. If Dealer is satisfied with such procedures and documentation, it shall sell the Restricted Shares pursuant to such registration statement during a period
(the “Resale Period”) commencing on the Exchange Business Day following delivery of such Restricted Shares (which, for the avoidance of doubt, shall be (x) the Share Termination Payment Date in case of settlement in Share
Termination Delivery Units pursuant to Section 9(j) above or (y) the Settlement Date in respect of the final Expiration Date for all Daily Number of Warrants) and ending on the Exchange Business Day on which Dealer completes the sale of all
Restricted Shares or, in the case of settlement of Share Termination Delivery Units, a sufficient number of Restricted Shares so that the realized net proceeds of such sales equals or exceeds the Payment Obligation (as defined above). If the Payment
Obligation exceeds the realized net proceeds from such resale, Company shall transfer to Dealer by the open of the regular trading session on the Exchange on the Exchange Business Day immediately following such resale the amount of such excess (the
“Additional Amount”) in cash or in a number of Shares (“Make-whole Shares”) in an amount that, based on the Settlement Price on such day (as if such day was the “Valuation Date” for purposes of computing
such Settlement Price), has a dollar value equal to the Additional Amount. The Resale Period shall continue to enable the sale of the Make-whole Shares. If Company elects to pay the Additional Amount in Shares, the requirements and provisions for
Registration Settlement shall apply. This provision shall be applied successively until the Additional Amount is equal to zero. In no event shall Company deliver a number of Restricted Shares greater than the Maximum Number of Shares.

  

	 	(iii)	 Without limiting the generality of the foregoing, Company agrees that (A) any Restricted Shares delivered to
Dealer may be transferred by and among Dealer and its affiliates and Company shall effect such transfer without any further action by Dealer and (B) after the period of 6 months from the Trade Date (or 1 year from the Trade Date if, at such
time, informational requirements of Rule 144(c) under the Securities Act are not satisfied with respect to Company) has elapsed in respect of any Restricted Shares delivered to Dealer, Company shall promptly remove, or cause the transfer agent for
such Restricted Shares to 

  
 19 

	 	
remove, any legends referring to any such restrictions or requirements from such Restricted Shares upon request by Dealer (or such affiliate of Dealer) to Company or such transfer agent, without
any requirement for the delivery of any certificate, consent, agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action by Dealer (or such affiliate of Dealer).
Notwithstanding anything to the contrary herein, to the extent the provisions of Rule 144 of the Securities Act or any successor rule are amended, or the applicable interpretation thereof by the Securities and Exchange Commission or any court change
after the Trade Date, the agreements of Company herein shall be deemed modified to the extent necessary, in the opinion of outside counsel of Company, to comply with Rule 144 of the Securities Act, as in effect at the time of delivery of the
relevant Shares or Share Termination Delivery Property. 

  

	 	(iv)	If the Private Placement Settlement or the Registration Settlement shall not be effected as set forth in clauses (i) or (ii), as applicable, then failure to effect such Private Placement Settlement or such
Registration Settlement shall constitute an Event of Default with respect to which Company shall be the Defaulting Party. 

  

	 	(l)	Limit on Beneficial Ownership. Notwithstanding any other provisions hereof, Dealer may not exercise any Warrant hereunder or be entitled to take delivery of any Shares deliverable hereunder, and Automatic
Exercise shall not apply with respect to any Warrant hereunder, to the extent (but only to the extent) that, after such receipt of any Shares upon the exercise of such Warrant or otherwise hereunder and after taking into account any Shares
deliverable to Dealer under the letter agreement dated January 26, 2017 between Dealer and Company regarding Base Warrants (the “Base Warrant Confirmation”), (i) the Section 16 Percentage would exceed 7.5%, or
(ii) the Share Amount would exceed the Applicable Share Limit. Any purported delivery hereunder shall be void and have no effect to the extent (but only to the extent) that, after such delivery and after taking into account any Shares
deliverable to Dealer under the Base Warrant Confirmation, (i) the Section 16 Percentage would exceed 7.5%, or (ii) the Share Amount would exceed the Applicable Share Limit. If any delivery owed to Dealer hereunder is not made, in
whole or in part, as a result of this provision, Company’s obligation to make such delivery shall not be extinguished and Company shall make such delivery as promptly as practicable after, but in no event later than one Business Day after,
Dealer gives notice to Company that, after such delivery, (i) the Section 16 Percentage would not exceed 7.5%, and (ii) the Share Amount would not exceed the Applicable Share Limit (and, for the avoidance of doubt, nothing in this
Section 9(l) shall require Company to make such delivery in cash). 

  

	 	(m)	Share Deliveries. Notwithstanding anything to the contrary herein, Company agrees that any delivery of Shares or Share Termination Delivery Property shall be effected by book-entry transfer through the
facilities of DTC, or any successor depositary, if at the time of delivery, such class of Shares or class of Share Termination Delivery Property is in book-entry form at DTC or such successor depositary. 

 

	 	(n)	Waiver of Jury Trial. Each party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit, action or proceeding relating to the
Transaction. Each party (i) certifies that no representative, agent or attorney of the other party has represented, expressly or otherwise, that such other party would not, in the event of such a suit, action or proceeding, seek to enforce the
foregoing waiver and (ii) acknowledges that it and the other party have been induced to enter into the Transaction, as applicable, by, among other things, the mutual waivers and certifications provided herein. 

 

	 	(o)	Tax Disclosure. Effective from the date of commencement of discussions concerning the Transaction, Company and each of its employees, representatives, or other agents may disclose to any and all persons,
without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are provided to Company relating to such tax treatment and tax structure.

  
 20 

	 	(p)	Maximum Share Delivery. 

  

	 	(i)	Notwithstanding any other provision of this Confirmation, the Agreement or the Equity Definitions, in no event will Company at any time be required to deliver a number of Shares greater than 360,360 (the
“Maximum Number of Shares”) to Dealer in connection with the Transaction. 

  

	 	(ii)	In the event Company shall not have delivered to Dealer the full number of Shares or Restricted Shares otherwise deliverable by Company to Dealer pursuant to the terms of the Transaction because Company has insufficient
authorized but unissued Shares that are not reserved for other transactions (such deficit, the “Deficit Shares”), Company shall be continually obligated to deliver, from time to time, Shares or Restricted Shares, as the case may be,
to Dealer until the full number of Deficit Shares have been delivered pursuant to this Section 9(p)(ii), when, and to the extent that, (A) Shares are repurchased, acquired or otherwise received by Company or any of its subsidiaries after the
Trade Date (whether or not in exchange for cash, fair value or any other consideration), (B) authorized and unissued Shares previously reserved for issuance in respect of other transactions become no longer so reserved or (C) Company
additionally authorizes any unissued Shares that are not reserved for other transactions; provided that in no event shall Company deliver any Shares or Restricted Shares to Dealer pursuant to this Section 9(p)(ii) to the extent that such
delivery would cause the aggregate number of Shares and Restricted Shares delivered to Dealer to exceed the Maximum Number of Shares. Company shall immediately notify Dealer of the occurrence of any of the foregoing events (including the number of
Shares subject to clause (A), (B) or (C) and the corresponding number of Shares or Restricted Shares, as the case may be, to be delivered) and promptly deliver such Shares or Restricted Shares, as the case may be, thereafter.

  

	 	(q)	[Reserved] 

  

	 	(r)	Right to Extend. Dealer may postpone or add, in whole or in part, any Expiration Date or any other date of valuation or delivery with respect to some or all of the relevant Warrants (in which event the
Calculation Agent shall make appropriate adjustments to the Daily Number of Warrants with respect to one or more Expiration Dates) if Dealer determines, in its commercially reasonable judgment, that such extension is reasonably necessary or
appropriate to preserve Dealer’s hedging or hedge unwind activity hereunder in light of existing liquidity conditions or to enable Dealer to effect purchases of Shares in connection with its hedging, hedge unwind or settlement activity
hereunder in a manner that would, if Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures applicable to Dealer;
provided that no such Expiration Date or other date of valuation or delivery may be postponed or added more than 120 Exchange Business Days after the original Expiration Date or other date of valuation or delivery, as the case may be.

  

	 	(s)	Status of Claims in Bankruptcy. Dealer acknowledges and agrees that this Confirmation is not intended to convey to Dealer rights against Company with respect to the Transaction that are senior to the
claims of common stockholders of Company in any United States bankruptcy proceedings of Company; provided that nothing herein shall limit or shall be deemed to limit Dealer’s right to pursue remedies in the event of a breach by Company of its
obligations and agreements with respect to the Transaction; provided, further, that nothing herein shall limit or shall be deemed to limit Dealer’s rights in respect of any transactions other than the Transaction.

  

	 	(t)	 Securities Contract; Swap Agreement. The parties hereto intend for (i) the Transaction to be a
“securities contract” and a “swap agreement” as defined in the Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the parties hereto to be entitled to the protections afforded by,
among other Sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code, (ii) a party’s right to liquidate the Transaction and to exercise any other remedies upon the occurrence of any Event of Default
under the Agreement with respect 

  
 21 

	 	
to the other party to constitute a “contractual right” as described in the Bankruptcy Code, (iii) each payment and delivery of cash, securities or other property hereunder to
constitute a “margin payment” or “settlement payment” and a “transfer” as defined in the Bankruptcy Code, and (iv) the Transaction to be a “qualified financial contract” as that term is defined in the
Federal Deposit Insurance Act as amended by the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as such acts may be amended, modified or supplemented from time to time. 

 

	 	(u)	Wall Street Transparency and Accountability Act. In connection with Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”), the parties hereby agree that
neither the enactment of WSTAA or any regulation under the WSTAA, nor any requirement under WSTAA or an amendment made by WSTAA, shall limit or otherwise impair either party’s otherwise applicable rights to terminate, renegotiate, modify, amend
or supplement this Confirmation or the Agreement, as applicable, arising from a termination event, force majeure, illegality, increased costs, regulatory change or similar event under this Confirmation, the Equity Definitions incorporated herein, or
the Agreement (including, but not limited to, rights arising from Change in Law, Hedging Disruption, Increased Cost of Hedging, an Excess Ownership Position, or Illegality (as defined in the Agreement)). 

 

	 	(v)	Agreements and Acknowledgements Regarding Hedging. Company understands, acknowledges and agrees that: (A) at any time on and prior to the last Expiration Date, Dealer and its affiliates may buy or
sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to adjust its hedge position with respect to the Transaction; (B) Dealer and its affiliates also may be
active in the market for Shares other than in connection with hedging activities in relation to the Transaction; (C) Dealer shall make its own determination as to whether, when or in what manner any hedging or market activities in securities of
Issuer shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Settlement Prices; and (D) any market activities of Dealer and its affiliates with respect to Shares may
affect the market price and volatility of Shares, as well as the Settlement Prices, each in a manner that may be adverse to Company. 

  

	 	(w)	Early Unwind. In the event the sale of the “Option Securities” (as defined in the Underwriting Agreement) is not consummated with the Underwriters for any reason, or Company fails to deliver to
Dealer opinions of counsel as required pursuant to Section 9(a), in each case by 5:00 p.m. (New York City time) on the Premium Payment Date, or such later date as agreed upon by the parties (the Premium Payment Date or such later date the
“Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”), on the Early Unwind Date and (i) the Transaction and all of the respective rights and obligations of Dealer and Company
under the Transaction shall be cancelled and terminated and (ii) each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities of the
other party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date. Each of Dealer and Company represents and acknowledges to the other that, upon an Early Unwind, all obligations with
respect to the Transaction shall be deemed fully and finally discharged. 

  

	 	(x)	Payment by Dealer. In the event that (i) an Early Termination Date occurs or is designated with respect to the Transaction as a result of a Termination Event or an Event of Default (other than an
Event of Default arising under Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Dealer owes to Company an amount calculated under Section 6(e) of the Agreement, or (ii) Dealer owes to Company, pursuant to
Section 12.7 or Section 12.9 of the Equity Definitions, an amount calculated under Section 12.8 of the Equity Definitions, such amount shall be deemed to be zero. 

 

	 	(y)	Listing of Warrant Shares. Company shall have submitted an application for the listing of the Warrant Shares on the Exchange, and such application and listing shall have been approved by the Exchange,
subject only to official notice of issuance, in each case, on or prior to the Premium Payment Date. Company agrees and acknowledges that such submission and approval shall be a condition precedent for the purpose of Section 2(a)(iii) of the
Agreement with respect to each obligation of Dealer under Section 2(a)(i) of the Agreement. 

  
 22 

	 	(z)	Tax Documentation. For the purpose of Section 4(a)(i) of the Agreement, Company shall provide to Dealer a valid U.S. Internal Revenue Service Form W-9, or any successor thereto, (i) on or before
the date of execution of this Confirmation, (ii) promptly upon reasonable demand by Dealer and (iii) promptly upon learning that any such tax form previously provided by Company has become obsolete or incorrect. For the purpose of
Section 4(a)(i) of the Agreement, Dealer shall provide to Company a valid U.S. Internal Revenue Service Form W-9, or any successor thereto, (i) on or before the date of execution of this Confirmation, (ii) promptly upon reasonable
demand by Company and (iii) promptly upon learning that any such tax form previously provided by Dealer has become obsolete or incorrect. 

  

	 	(aa)	Tax Representations. For the purpose of Section 3(f) of the Agreement, Company is a corporation for U.S. federal income tax purposes and is organized under the laws of the State of Delaware. Company
is a “U.S. person” (as that term is used in section 1.1441-4(a)(3)(ii) of United States Treasury Regulations) for U.S. federal income tax purposes. 

  
 23 

 

 
 Company hereby agrees (a) to check this Confirmation carefully and immediately upon receipt so that
errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement between Dealer and Company with respect to the
Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Gary Rosenblum via email:
gary.rosenblum@bankofamerica.com. 

                        
              Very truly yours, 
  

			
	Bank of America, N.A.
		
	By:	 	/s/ Christopher A. Hutmaker
	Authorized Signatory
	Name:	 	Christopher A. Hutmaker

  

			
	Accepted and confirmed
as of the Trade Date:
	
	Horizon Global Corporation
		
	By:	 	/s/ David Rice
	Authorized Signatory
	Name:	 	David Riceiaso_ex102.htm

EXHIBIT 10.2

 

CONFIDENTIAL TREATEMENT

 

Portions of this exhibit have been omitted pursuant to a request for confidential treatment filed with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. Such Portions are marked “[*]” in this document; they have been filed separately with the Commission. 

 

RESEARCH AGREEMENT

 

THIS AGREEMENT, effective as of the date of the last duly authorized signature below (the “Effective Date”), is entered into by and among IASO BioMed, Inc., with a place of business located at 7315 East Peakview Avenue, Centennial, Colorado 80111 (“IASO BioMed, Inc.”), The Research Institute of the McGill University Health Centre, with an address of 2155 Guy Street, Suite 500, Montreal QC H3H 2R9 (the “Institution”) and Dr. Vassilios Papadopoulos, with an address of The Research Institute of the McGill University Health Centre, 1001 Decarie Blvd., Bloc E, Montreal QC H4A 3J1 (the “Principal Investigator”), governing a research study entitled: “Peptide-based pharmacological induction of androgen formation in male hypogonadism” (the “Study” or “Research Program”), to be conducted by the Principal Investigator at the Institution. IASO BioMed, Inc., Institution, and Principal Investigator shall collectively be referred to as “parties” and individually as a “party”.

 

WHEREAS, IASO BioMed, Inc., desires to provide certain funding as part of the research activities described above; 

 

WHEREAS, the Institution has the facilities and personnel to conduct the Research Program and the Principal Investigator has the expertise and is willing to perform same; and

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained and intending to be legally bound hereby, the parties hereto agree as follows:

 

	1.	CONDUCT OF THE RESEARCH PROGRAM
	

	
 

	

	
Institution and IASO BioMed, Inc., agree that the Research Program shall be conducted in accordance with Exhibit A, which is attached hereto and incorporated herein by reference, and under the direct supervision of the Principal Investigator. Animal care and use for any research undertaken with this grant will be carried out in accordance with applicable national and/or international guidelines for animal care. Institution represents and warrants that Institution’s Facility Animal Care Committee (FACC) has reviewed and approved the Study according to the regulations and guidelines of the Canadian Council on Animal Care (CCAC). The Research Program is an improvement, modification and development (collectively, “Improvements”) under patent number PCT/CA2014/050467 (the “Patent”) and subject to the terms and conditions of the licensing agreement (the “License Agreement”) contemplated by the Summary of Licensing Terms & Conditions (McGill ROI number 14007) and subject to all provisions regarding Improvements therein. 

	

	

	
2.
	
DURATION OF THE RESEARCH PROGRAM

	

	

	

	
It is expected that the Research Program contemplated hereunder shall continue for a period of one year from the Effective Date of this Agreement. At the end of such period, the parties hereto will evaluate the progress of the Research Program and shall jointly make an overall assessment thereof including a recommendation as to the necessity or desirability of continued research hereunder. The Research Program may be extended by the mutual written consent of Institution, Principal Investigator and IASO BioMed, Inc.

 
	 
	1

	

	 

 

	
3.
	
FUNDING

	
 
	
 

	
3.1.
	
IASO BioMed, Inc. desires to fund and support the Research Program as it relates to the activities conducted at Institution. Accordingly, in consideration of the obligations incurred by Institution hereunder, IASO BioMed, Inc., agrees to pay to Institution the amount of One Hundred and thirty Thousand USA Dollars (US$130,000.00) (the “Funding Amount”), which includes institutional overhead costs, as detailed in the Budget attached hereto as Exhibit B. Institution and Principal Investigator acknowledge that the Funding Amount is allocated for the Term of this Agreement only or as otherwise agreed upon in writing by all parties. The parties agree to consider adjusting the Funding Amount, the scope of the Research Program or the duration in order to accommodate for any changes in the exchange rate that may occur after the date hereof between the U.S. Dollar and Canadian Dollar that would adversely impact the Funding Amount.

	
 
	
 

	
3.2.
	
The Funding Amount will be paid in two installments as set forth below and within twenty (20) days of IASO BioMed, Inc.’s receipt of an invoice by the Institution: 

 

	
 
	
(a)
	
Fifty percent (50%) or Sixty-five Thousand US Dollars (US$65,000.00), of the Funding Amount, will be payable by IASO BioMed, Inc., as soon as practicable following execution of this Agreement and IASO BioMed, Inc.’s receipt of an invoice from Institution; and 

	
 
	
 
	
 

	
 
	
(b)
	
Fifty percent (50%) or Sixty-five Thousand US Dollars (US$65,000.00), of the Funding Amount, will be payable by IASO BioMed, Inc. at the Study midpoint as evidenced by an Interim Report satisfactory to IASO BioMed, Inc., delivered to IASO BioMed, Inc., but not later than three (3) months from the Effective Date.

 

	
3.3.
	
Payments shall be made payable to The Research Institute of the McGill University Health Centre and sent via wire transfer:

 

	
Name of Bank and address:
	

	
Beneficiary:
	

	
Account Number:
	

	
Branch No/Transit No:
	

	
Bank Code:
	

	
Swift Number:
	

	
Mandatory: Acknowledgement of the wire transfers is required. Please send an email correspondence to AccountsReceivable.RIMUHC@muhc.mcgill.ca.

 

Please indicate following in your email: 

-Doctor’s name’s, 

-Amount, 

-Project/study code 

-Invoice’s No. 

 

For information please contact: (514) 934-1934 ext 71455

 

	
 
	
It is understood that all payments by IASO BioMed, Inc., to Institution under this Agreement shall be made in full as agreed above without any deductions for taxes of any kind.

	
 
	
 

	4.	REPORTS AND CONSULTATION
	
 
	
 

	
4.1.
	
During the term of this Agreement, IASO BioMed, Inc.’s representatives may consult informally with Principal Investigator regarding the Research Program and expenses, both personally and by phone, and Principal Investigator shall be reasonably available for such discussions during regular business hours.

 
	 
	2

	

	 

 

	
4.2.
	
Principal Investigator, within six (6) weeks following the conclusion of the Research Program, shall issue a final written report to IASO BioMed, Inc. concerning the Research Program conducted hereunder and the results thereof, including a list of all inventions, a summary and interpretation of the data, and the results generated there under (“Final Report”).

 

	5.	CONFIDENTIAL INFORMATION
	
 
	
 

	5.1. 	“IASO BioMed, Inc., Confidential Information” shall mean, subject to the License Agreement, information, business or technical and the like (including the terms of this Agreement) necessary for Principal Investigator to conduct research under this Agreement which is disclosed by IASO BioMed, Inc., to Institution. Institution agrees that during the term of or any subsequent extension of this Agreement and for five (5) years thereafter, Institution will use its best efforts not to disclose to any third party any IASO BioMed, Inc. Confidential Information without the prior written consent of IASO BioMed, Inc. and not to use Confidential Information except as expressly set forth in this Agreement. Notwithstanding the foregoing, Institution shall have the right to disclose IASO BioMed, Inc. Confidential Information to its employees and students who have a “need-to-know” purpose for the conduct of the Study and who agree to be bound by the confidential terms of this Agreement.
	
 
	
 

	5.2. 	“Institution Confidential Information” shall mean, subject to the License Agreement, information, know-how, reagents, procedures, data, results, conclusions, and the like which is developed by Principal Investigator or becomes known to Principal Investigator as a result of the Research Program. IASO BioMed, Inc. agrees that during the term of or any subsequent extension of this Agreement and for five (5) years thereafter, IASO BioMed, Inc. will use reasonable efforts not to disclose to any third party any Institution Confidential Information without the prior written consent of Institution. Notwithstanding the foregoing, IASO BioMed, Inc. shall have the right to disclose Institution Confidential Information to its Affiliates (as defined in Paragraph 17 below) who agree to be bound by the same terms of confidentiality as apply to IASO BioMed, Inc., or as required by its filings with the Securities and Exchange Commission hereunder.
	
 
	
 

	5.3. 	Any Confidential Information disclosed by either party to the other shall be in writing and clearly identified as confidential at the time of disclosure, or if orally disclosed, will be reduced to writing by the disclosing party within thirty (30) days and a copy provided to the receiving party.
	
 
	
 

	5.4. 	Neither party shall have any obligation of confidentiality with respect to any portions of such Confidential Information which:

 

	
 
	(a)	Is, or later becomes, generally available to the public by use, publication or the like, through no fault of the receiving party; or
	
 
	
 
	
 

	
 
	(b)	is obtained from a third party who had the legal right to disclose the same; or
	
 
	
 
	
 

	
 
	(c)	the receiving party already possesses, as evidenced by its written records, predating receipt thereof from the disclosing party.

 
	 
	3

	

	 

 

	5.5. 	In the event that the receiving party is requested by a court of law, administrative agency or other governmental body to disclose another party’s Confidential Information, the receiving party shall immediately notify the disclosing party and cooperate with the disclosing party to obtain any and all protections available for disclosure of such information prior to any mutually made decision to so disclose it.

 

	6.	DISCLOSURE OF RESULTS
	
 
	
 

	6.1. 	Institution and Principal Investigator agree that the results of the Research Program (including all information and physical, chemical, or biological materials) will not be disclosed to any third party for a reasonable time (under normal circumstances forty-five (45) days, which time period may be extended by mutual consent), so as to identify any patentable inventions which may be jeopardized by the proposed disclosure and to enable the filing of appropriate patent applications relating to such inventions.
	
 
	
 

	6.2. 	Disclosure by any of the parties to this Agreement shall give proper credit to the other party, unless one of the parties hereto requests otherwise.
	
 
	
 

	7.	PUBLICATION 
	
 
	
 

	7.1. 	Principal Investigator shall have the complete freedom to publish or present the results of the Study and any background information provided by IASO BioMed, Inc. with permission to publish, that Principal Investigator desires to include in any publication or presentation. Prior to submission for publication or presentation, the Institution will provide IASO BioMed, Inc. forty-five (45) days for review of a manuscript, only for the purpose of determining if IASO BioMed, Inc. desires to file for patent protection and for verification that such publication contains no Confidential Information of IASO BioMed, Inc. If requested in writing, and with reasonable justification, Institution and Principal Investigator will withhold such publication for up to an additional sixty (60) days from receipt of request from IASO BioMed, Inc. to allow for filing of a patent application. Expedited reviews for abstracts, poster presentations or other such presentations will be granted by IASO BioMed, Inc. to Institution and Principal Investigator in good faith.
	
 
	
 

	8.	INVENTIONS AND PATENTS
	
 
	
 

	8.1. 	Any inventions or discoveries (whether patentable or copyrightable or not), innovations, suggestions, ideas, communications and reports, developed, made, conceived or otherwise reduced to practice by Institution, Principal Investigator or other personnel of Institution, as a result of conducting research related to the Research Program, shall be promptly disclosed to IASO BioMed, Inc. All Improvements shall be owned by IASO BioMed, Inc.
	
 
	
 

	8.2. 	Notwithstanding any obligation of confidentiality between IASO BioMed, Inc. and Institution under this Agreement, IASO BioMed, Inc., at its own expense, may elect to file and prosecute appropriate patent applications and maintain patents issuing therefrom covering such inventions, as well as any inventions conceived and reduced to practice jointly by employees of Institution and IASO BioMed, Inc. In the event IASO BioMed, Inc. elects not to file and prosecute such applications nor maintain the patents issuing therefrom, IASO BioMed, Inc. shall so notify Institution and Institution may, according to Institution’s internal policies and guidelines, and with the full cooperation of IASO BioMed, Inc., file and prosecute such application and maintain the patents issuing therefrom.

 
	 
	4

	

	 

 

	8.3. 	In the event the Research Program is not deemed an Improvement to the Patent, Institution and IASO BioMed, Inc. will negotiate, in good faith and on reasonable commercial terms, to determine the terms of an additional license agreement for the commercialization of such new invention or discovery and according to Institution’s internal policies and guidelines. IASO BioMed, Inc. will have one (1) year after Institution discloses such new invention or discovery to exercise the first right to refusal. If IASO BioMed, Inc. and Institution fail to execute a license agreement within one (1) year after disclosure of such new invention and discovery to IASO BioMed, Inc., or if IASO BioMed, Inc. fails to make payment for intellectual property expenses as they may be agreed upon, Institution and IASO BioMed, Inc. shall negotiate, in good faith and on reasonable commercial terms, full and final settlement of each party’s interest in such new invention or discovery and upon conclusion of same, the parties shall be free to license the new invention or discovery to any party upon such terms as Institution and IASO BioMed, Inc. deem appropriate, without having any further obligation to the other in respect of same.
	
 
	
 

	9.	TERM AND TERMINATION
	
 
	
 

	9.1. 	The term of this Agreement shall be for two (2) years or until the Research Program has been completed (as determined by receipt by IASO BioMed, Inc. of the Final Report pursuant to Paragraph 4.2 above), whichever occurs first. The term of this Agreement may also be extended by mutual written consent of all parties.
	
 
	
 

	9.2. 	This Agreement may be terminated without cause by any party at any time upon thirty (30) days advance written notice to the other party. Upon receipt of such notice of early termination by IASO BioMed, Inc., Institution shall use its best efforts to promptly limit or terminate any outstanding commitments and to conclude the Research Program.
	
 
	
 

	9.3. 	If either party is in breach of this Agreement, and if such breach is not cured within thirty (30) days receipt of written notice of such breach from the other party, then the non-breaching party shall be entitled to terminate this Agreement for cause. In the event of termination by Institution for breach by IASO BioMed, Inc., Institution shall be entitled to full payment to the next anniversary of the Effective Date of this Agreement and, upon payment, the breach shall be cured. In the event of termination by IASO BioMed, Inc., for breach by Institution, all further payments by IASO BioMed, Inc. shall cease and the value of the contract shall be prorated on a per diem basis and repaid to IASO BioMed, Inc. If the calculated value of the contract to the date of termination exceeds the amount then paid by IASO BioMed, Inc under Section 3, IASO BioMed, Inc., shall pay the difference.
	
 
	
 

	9.4. 	Termination or expiration of this Agreement shall not affect the obligations of the parties hereto, which are intended to survive termination or expiration of this Agreement.
	
 
	
 

	10.	INDEPENDENT CONTRACTOR
	
 
	
 

		For the purposes of this Agreement and with regard to the Research Program to be conducted hereunder, Institution, Principal Investigator, and any employee participating in the Study shall be deemed to be independent contractors and not agents or employees of IASO BioMed, Inc. Institution shall have no authority to make any statements, representations, or commitments of any kind, or to take any action which shall be binding on IASO BioMed, Inc., without the prior written authorization of IASO BioMed, Inc. Institution shall be responsible for all taxes, withholding, insurance and payment of all benefits, social security costs and the like, if any, incurred by all personnel of the Institution and Principal Investigator participating in the Study.

 
	 
	5

	

	 

 

	11.	USE OF NAME
	
 
	
 

		Neither party will use the name, insignia or logo of the other party or of any personnel of the other party in any publicity or advertising with reference to the Research Program (except where such use of the name is legally required), without prior written consent of the other party.
	
 
	
 

	12.	WAIVERS
	
 
	
 

		No waiver of any term, provision or condition of this Agreement, whether by conduct or otherwise in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, provision or condition or of any other term, provision or condition of this Agreement.
	
 
	
 

	13.	SEVERABILITY
	
 
	
 

		If any one or more of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality, or enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby.
	
 
	
 

	14.	INTEGRATION CLAUSE
	
 
	
 

		This Agreement represents and embodies all of the agreements and negotiations between the parties hereto and no verbal agreements or correspondence prior to the date of execution of this Agreement shall be held to vary the provisions hereon.
	
 
	
 

	15.	MODIFICATIONS AND CHANGES
	
 
	
 

		This Agreement and the research contemplated hereunder may not be amended, modified or extended unless by the mutual written consent of the parties hereto. Such consent shall be in writing and shall be executed by the parties prior to the time such amendment, modification or extension shall take effect.
	
 
	
 

	16.	ASSIGNABILITY
	
 
	
 

		Institution may not assign this Agreement to any other party without the prior written consent of IASO BioMed, Inc. IASO BioMed, Inc. may assign its rights and obligations hereunder, by written notice to Institution, to (a) any Affiliate of IASO BioMed, Inc. and (b) to a successor or transferee of IASO BioMed, Inc. (whether by merger, consolidation, purchase or otherwise) of either (i) all or substantially all of the assets of IASO BioMed, Inc., (ii) all or substantially all of the assets of the business or any part of the business to which it pertains or (iii) a transfer of over 51% of the outstanding common stock of IASO BioMed. As used in this Agreement, “Affiliate” shall mean, with respect to a party, any individual, corporation or other business entity which, either directly or indirectly, controls such party, is controlled by such party, or is under common control with such party. As used herein, “control” means possession of the power to direct, or cause the direction of the management and policies of a corporation or other entity whether through the ownership of voting securities, by contract or otherwise.

 
	 
	6

	

	 

 

	17.	WARRANTY
	
 
	
 

		Institution warrants that the conduct of this research shall not conflict with any other agreement or understanding, express or implied, that Institution has with a third party. Institution warrants that no materials, ideas, reagents, methods, or supplies proprietary to any entity other than Institution shall be used in the course of the Research Program without the express written consent of IASO BioMed, Inc., unless Institution shall first obtain from such entity and be willing to grant to IASO BioMed, Inc., rights consistent with the provisions of Paragraph 8 above.
	
 
	
 

	18.	GOVERNING LAW
	
 
	
 

		Any disputes or claims arising under this Agreement shall be governed by the laws of the Province of Quebec and the laws of Canada applicable therein, without regard to conflicts of laws principles. The Parties hereby acknowledge that the Courts of the Province of Quebec, Canada, shall have exclusive and preferential jurisdiction to entertain any complaint, demand, claim or cause of action whatsoever arising out of this Agreement. The Parties hereby agree that if either of them commences any such legal proceedings, they will only be commenced in the Courts of the Province of Quebec, Canada, and hereby irrevocably submit to the exclusive jurisdiction of said Courts.
	
 
	
 

	19.	NOTICES
	
 
	
 

		All written communications including any notice, payment or report, required or permitted under this Agreement, shall be deemed to have been sufficiently given if mailed by prepaid, first-class mail to the following addresses or such other persons or addresses as shall hereafter be furnished by written notice to the other parties:

 

If to Institution:

 

The Research Institute of the McGill University Health Centre

2155 Guy Street, 5th Floor

Montreal QC H3H 2R9, Canada

Attention: Ms. Cinzia Raponi, CPA, CMA

General Director, Administration

 

If to Principal Investigator:

 

The Research Institute of the McGill University Health Centre

1001 Decarie Blvd, Bloc E

Montreal QC H4A 3J1, Canada. 

Attention: Dr. Vassilios Papadopoulos

 

If to IASO BioMed, Inc: 

 

7315 East Peakview Avenue, 

Centennial, 

Colorado 80111, USA 

Attention: Mr. Richard Schell

 

	20.	LANGUAGE
	
 
	
 

		The parties hereto acknowledge that they have requested that this Agreement be drafted in the English language. Les parties reconnaissent avoir exigé que cette convention soit rédigée en anglais.

 

SIGNATURE PAGE FOLLOWS

 
	 
	7

	

	 

 

IN WITNESS WHEREOF, this Agreement has been executed in triplicate by the duly authorized representatives of the parties hereto:

 

	
IASO BIOMED, INC.
		
THE RESEARCH INSTITUTE OF THE MCGILL UNIVERSITY HEALTH CENTRE 
	
		
 
			
 
	
	By: 	

/s/ Richard M. Schell
		By: 	

/s/ Cinzia Raponi
	
	Name: 	
Richard M. Schell
		Name:	
Cinzia Raponi, CPA, CMA
	
	Title: 	
Chief Executive Officer
		Title: 	
General Director, Administration
	
	Date: 	
January 8, 2016
		Date: 	
December 21, 2016
	
		 			
 
	
				

DR. VASSILIOS PAPADOPOULOS
	
		
 
			
 
	
		
 
		By: 	
/s/ Dr. Vassilios Papadopoulos
	
	
 
	
 
	
 
	Name: 	
Dr. Vassilios Papadopoulos
	
 

		
 
		Title: 	
Principal Investigator
	
		
 
		Date: 	
December 21, 2015
	

 
	 
	8

	

	 

 

EXHIBIT A

BRIEF DESCRIPTION OF RESEARCH PROJECT

 

Title 

 

Peptide-based pharmacological induction of androgen formation in male hypogonadism

 

Scientific rationale 

 

Testosterone (T) contributes to quality-of-life and well-being. Male development, virilization, sexual differentiation, and fertility rely on T production throughout life. Reduced serum T is common among (i) subfertile and infertile young men (primary and secondary hypogonadism); (ii) aging men because T levels decline after age 40 and are low in most men older than 60 (mainly primary but occasionally secondary hypogonadism); (iii) men with orchitis and following trauma (injury to genitalia, spinal cord injury), torsion, surgery, chemotherapy, irradiation, and in response to some medications (acquired hypogonadism). Reduced T is often associated with mood changes, fatigue, depression, decreased lean body mass, reduced bone mineral density, increased visceral fat, metabolic syndrome, decreased libido, and reduced sexual function. Testosterone replacement therapy (TRT) is used clinically to restore T levels. 

 

TRT can be used to treat many of the symptoms associated with low T. In general, TRT shows clinical benefit in patients with andropause. However, TRT can suppress luteinizing hormone (LH) production, making this approach inappropriate for men who wish to have children and it is not recommended for patients with identified risk of prostate or breast cancer. Fluctuating T levels, skin irritation, T transfer to others through skin contact, worsened sleep apnea and high hematocrit are additional disadvantages of TRT. Recent studies demonstrated increased risk of adverse cardiac outcomes, including myocardial infraction, associated with TRT leading to FDA imposing a warning label for TRT. These findings also brought to light the increased use/misuse of androgenic steroids by healthy individuals, used to enhance muscular mass and adjust to age-related decline of T levels. Considering the clinical benefits of TRT, but its significant side-effects and misuse, alternative strategies for increasing T are needed. 

 

Relevance of target to proposed indication 

 

In search of the mechanisms regulating T synthesis in testes, we identified the 14-3-3ε protein adaptor as a negative regulator of Leydig cell steroidogenesis. Steroidogenesis begins in mitochondria. 14-3-3ε interacts with the outer mitochondrial membrane VDAC1 protein, forming a scaffold that limits the availability of cholesterol for steroidogenesis. [*]

 

Aim of the project 

 

To undertake proof-of-principle in vivo preclinical study designed to assess the long-term effectiveness of TVS167 on restoring intra-testicular and serum T levels in hypogonadal young (LH-suppressed) and aged rats.

 

Work plan 

 

[*]

 
	 
	9

	

	 

 

EXHIBIT B

 

BUDGET

 

IASO BioMed, Inc., funding responsibility hereunder is limited to the Funding Amount. In the event that the Funding Amount does not cover all items included in the Budget, IASO BioMed, Inc., and the Investigator shall be able to make modifications in order to fund any additional studies agreed by both parties.

 

	

BUDGET ITEM
						

	
 
		
 
		
 
		
 

	
SALARIES R&D PERSONNEL
		
Effort (%) /
duration
		
Role on
Project
		
Amount

($ USD)

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
- 1 x FTE @ $70K incl 19% benefits
		
[*]
		
[*]
		
[*]

	
- 1 x FTE @ $50K incl 19% benefits
		
[*]
		
[*]
		
[*]

	
 
		
 
		
 
		
 

	
PROJECT ACTIVITIES
				

		
[*]

	
 
		
 
		
 
		
 

	
Animal studies: long term treatment with Testosterone peptide
				

		
[*]

	
T. Peptide production, supplies
				

		
[*]

	
Analyses of samples 
				

		
[*]

	
 
		
 
		
 
		
 

	
SUB-TOTAL BUDGET R&D WORK
				

		
[*]

	
 
		
 
		
 
		
 

	
Over- head (30%) host Institution RI MUHC
				

		
[*]

	
 
		
 
		
 
		
 

	
TOTAL BUDGET
				

		
[*]

 

 

	
10

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