Document:

EX-10.1

 Exhibit 10.1 

Execution Version 
 TAX
MATTERS AGREEMENT 
 between 

McKesson Corporation, 
 on
behalf of itself 
 and the members 

of the Parent Group, 
 and 

PF2 SpinCo Inc., 
 on behalf
of itself 
 and the members 
 of
the SpinCo Group, 
 and 

Change Healthcare Inc., 
 on
behalf of itself 
 and the members 

of the Acquiror Group. 
 and 

Change Healthcare LLC, 
 on
behalf of itself 
 and the members 

of the Acquiror Group 
 (solely to
the extent 
 set forth herein), 

and 
 Change Healthcare
Holdings, LLC 
 Dated as of March 9, 2020 

 Table of Contents 

 
  

							
	 	    	 	  	Page	 
	 SECTION 1.
	    	Definitions	  	 	1	 
	 SECTION 2.
	    	Sole Tax Sharing Agreement	  	 	12	 
	 SECTION 3.
	    	Certain Pre-Closing Matters	  	 	13	 
	 SECTION 4.
	    	Allocation of Taxes	  	 	13	 
	 SECTION 5.
	    	Preparation and Filing of Tax Returns	  	 	16	 
	 SECTION 6.
	    	Apportionment of Earnings and Profits and Tax Attributes	  	 	19	 
	 SECTION 7.
	    	Utilization of Tax Attributes	  	 	19	 
	 SECTION 8.
	    	Tax Benefits	  	 	20	 
	 SECTION 9.
	    	Certain Representations and Covenants	  	 	21	 
	 SECTION 10.
	    	Procedures Relating to Opinions and Rulings	  	 	26	 
	 SECTION 11.
	    	Protective Section 336(e) Elections	  	 	26	 
	 SECTION 12.
	    	Indemnities	  	 	27	 
	 SECTION 13.
	    	Acquiror Shareholders Not Parties	  	 	29	 
	 SECTION 14.
	    	Payments	  	 	29	 
	 SECTION 15.
	    	Communication and Cooperation	  	 	30	 
	 SECTION 16.
	    	Audits and Contest	  	 	31	 
	 SECTION 17.
	    	Notices	  	 	32	 
	 SECTION 18.
	    	Costs and Expenses	  	 	33	 
	 SECTION 19.
	    	Effectiveness; Termination and Survival	  	 	33	 
	 SECTION 20.
	    	Specific Performance	  	 	33	 
	 SECTION 21.
	    	Construction	  	 	34	 
	 SECTION 22.
	    	Entire Agreement; Amendments and Waivers	  	 	34	 
	 SECTION 23.
	    	Governing Law and Interpretation	  	 	35	 
	 SECTION 24.
	    	Dispute Resolution	  	 	35	 
	 SECTION 25.
	    	Counterparts	  	 	36	 
	 SECTION 26.
	    	Successors and Assigns; Third Party Beneficiaries	  	 	36	 
	 SECTION 27.
	    	Authorization, Etc.	  	 	36	 
	 SECTION 28.
	    	Change in Tax Law	  	 	36	 
	 SECTION 29.
	    	Principles	  	 	37	 

  

  
 i 

 TAX MATTERS AGREEMENT 

This TAX MATTERS AGREEMENT (the “Agreement”) is entered into as of March 9, 2020 between McKesson Corporation
(“Parent”), a Delaware corporation, on behalf of itself and the members of the Parent Group, PF2 SpinCo Inc. (“SpinCo”), a Delaware corporation, on behalf of itself and the members of the SpinCo Group,
Change Healthcare Inc. (“Acquiror”), a Delaware corporation, on behalf of itself and the members of the Acquiror Group, Change Healthcare LLC (f/k/a PF2 NewCo LLC) (“JV”), a Delaware limited liability
company, on behalf of itself and the members of the Acquiror Group (solely for purposes of Section 2, Section 4(c), Section 5(g), Section 12, Section 15(d) and Section 19), and Change Healthcare Holdings, LLC (f/k/a PF2
NewCo Holdings, LLC) (“OpCo”), a Delaware limited liability company. 
 WITNESSETH: 

WHEREAS, Parent, SpinCo and Acquiror have entered into a Separation Agreement, dated as of the date hereof (the “Separation
Agreement”) and Parent, SpinCo and Acquiror have entered into an Agreement and Plan of Merger, dated as of December 20, 2016 (the “Merger Agreement”), pursuant to which the Internal Restructuring, the Controlled
Transfer, the Distribution and the Merger and other related transactions will be consummated; 
 WHEREAS, the Controlled Transfer, the
Distribution and the Merger are intended to qualify for the Intended Tax-Free Treatment; and 

WHEREAS, Parent, SpinCo and Acquiror desire to set forth their agreement on the rights and obligations of Parent, SpinCo, Acquiror and the
members of the Parent Group, the SpinCo Group and the Acquiror Group respectively, with respect to (a) the administration and allocation of federal, state, local and foreign Taxes incurred in Taxable periods beginning prior to the Distribution
Date, as defined below, (b) Taxes resulting from the Distribution and transactions effected in connection with the Distribution and (c) various other Tax matters. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the parties agree as follows: 

SECTION 1. Definitions. 

(a) As used in this Agreement:  

“Acquiror” has the meaning set forth in the preamble. 

“Acquiror Capital Stock” means, to the extent issued by Acquiror, any shares of common stock (including Acquiror Common
Stock), preferred stock, restricted stock, restricted stock units, stock appreciation rights, stock-based performance units, phantom units, capital stock equivalents, mandatorily convertible instruments or similar synthetic instruments or other
capital stock or nominal interests in Acquiror, including any stock, other securities or interests that are treated as equity for purposes of Section 355 of the Code, or that are treated as an option under Treasury regulations Section 1.355-7(e). 

  
 1 

 “Acquiror Common Stock” means the common stock, par value $0.001 per share,
of Acquiror. 
 “Acquiror Compensatory Equity Interests” means any options, stock appreciation rights, restricted stock,
stock units or other rights with respect to Acquiror Capital Stock that are granted on or prior to the Effective Time by any member of the Acquiror Group in connection with employee, independent contractor or director compensation or other employee
benefits (including, for the avoidance of doubt, options, stock appreciation rights, restricted stock, restricted stock units, performance share units or other rights issued in respect of any of the foregoing by reason of the Merger). 

“Acquiror Group” means Acquiror and each of its Subsidiaries, including, after the Closing, the SpinCo Group and the JV
Group. 
 “Acquiror Shareholder Acquisition” means any acquisition of shares of Parent common stock on or after
January 1, 2016 (in the case of clauses (i) and (ii) below) or on or after June 22, 2016 (in the case of clauses (iii) and (iv) below) and prior to the Distribution (which shares continue to be held at the time of the
Distribution and in respect of which shares SpinCo stock is received in the Distribution) by (i) Blackstone Capital Partners VI L.P., Blackstone Family Investment Partnership VI L.P., or Blackstone Family Investment Partnership VI – ESC
L.P., (each, a “BX Investor”), (ii) H&F Harrington AIV II, L.P., HFCP VI Domestic AIV, L.P., Hellman & Friedman Investors VI, L.P., Hellman & Friedman Capital Executives VI, L.P. or Hellman & Friedman
Capital Associates VI, L.P. each, an “H&F Investor”), (iii) any Person Under the Control of Blackstone and any Person Under the Control of H&F or (iv) any Person that is part of a coordinating group (within the meaning
of Section 1.355-7(h)(4) of the Treasury regulations) with any Person described in clause (i), (ii) or (iii) above. 

“Acquiror Tax Proceeding” has the meaning set forth in Section 16(d). 

“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under
common control with such other Person as of the date on which, or at any time during the period for which, the determination of affiliation is being made; provided, however, that (notwithstanding any other provision of this Agreement)
prior to the Closing no member of the JV Group shall be considered to be a member of the Acquiror Group, Parent Group or SpinCo Group or to be an Affiliate of Parent, Acquiror or SpinCo prior to the Closing. For purposes of this definition, the term
“control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any Person means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by Contract or otherwise. For the avoidance of doubt, (a) prior to the Closing, Affiliates of Parent will include SpinCo and
its Affiliates and (b) after the Closing, Affiliates of Acquiror will include SpinCo and its Affiliates and the members of the JV Group. 

“Agreement” has the meaning set forth in the preamble. 

  
 2 

 “Applicable Law” (or “Applicable Tax Law,” as the case may
be) means, with respect to any Person, any federal, state, county, municipal, local, multinational or foreign statute, treaty, law, common law, ordinance, rule, regulation, order, writ, injunction, judicial decision, decree, permit or other legally
binding requirement of any Governmental Authority applicable to such Person or any of its respective properties, assets, officers, directors, employees, consultants or agents (in connection with such officer’s, director’s, employee’s,
consultant’s or agent’s activities on behalf of such Person). 
 “Business” means the Retained Business or
the Controlled Business, as the case may be. 
 “Business Day” means any day that is not a Saturday, a Sunday or other day
that is a statutory holiday under the federal Laws of the United States. 
 “Closing” means the consummation of the Merger.

 “Closing of the Books Method” means the apportionment of items between portions of a Taxable period based on a closing
of the books and records at the close of the Distribution Date (and for purposes of such apportionment, the Taxable year of any partnership or other passthrough entity or any controlled foreign corporation within the meaning of Section 957(a)
of the Code or passive foreign investment company within the meaning of Section 1297 of the Code shall be deemed to terminate at the close of the Distribution Date); and in the event that the Distribution Date is not the last day of the Taxable
period, as if the Distribution Date were the last day of the Taxable period), subject to adjustment for items accrued on the Distribution Date that are properly allocable to the Taxable period following the Distribution, as determined by agreement
among Acquiror, SpinCo, and Parent, with any dispute among them to be resolved by the Tax Arbiter in accordance with Section 24; provided that Taxes not susceptible to such apportionment shall be apportioned between the Pre- and Post-Distribution Periods on a pro rata basis in accordance with the number of days in each Taxable period; and provided, further, that, for the avoidance of doubt, the Closing of the
Books Method shall not require a closing of the books and records of any member of the JV Group (i) that is, as of immediately prior to the Distribution Date, a “domestic corporation” (within the meaning of Section 7701(a) of the
Code) or (ii) all of the JV Group’s equity interests in which are owned, directly or indirectly, by members of the JV Group described in the preceding clause (i). 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Combined Group” means any group that filed or was required to file (or will file or be required to file) a Tax Return on an
affiliated, consolidated, combined, unitary, fiscal unity or other group basis (including as permitted by Section 1501 of the Code) that includes at least one member of the Parent Group and at least one member of the SpinCo Group. 

“Combined Tax Return” means a Tax Return filed or required to be filed in respect of federal, state, local or foreign income
Taxes for a Combined Group, or any other affiliated, consolidated, combined, unitary, fiscal unity or other group basis (including as permitted by Section 1501 of the Code) Tax Return of a Combined Group. 

  
 3 

 “Company” means Parent, SpinCo, Acquiror, or a Group, as appropriate. 

“Contribution Agreement” means the Agreement of Contribution and Sale, dated as of June 28, 2016, by and among JV,
Parent, Acquiror, Change Healthcare Performance, Inc. (formerly Change Healthcare, Inc.), Change Aggregator, L.P., H&F Echo Holdings, L.P. and the other parties thereto, as amended from time to time. 

“Controlled Business” means the Parent Group’s business known as the MHS business, which is engaged in the provision of
services, and the manufacture, marketing, distribution and sale of software products, designed to manage the cost and quality of care for payers, providers, hospitals and government organizations, provided that, for the avoidance of doubt, the
Controlled Business shall not include the Imaging and Workflow Solutions (the “IWS Business”). 
 “Controlled
Transfer” means, collectively, (i) the transfer by Parent to SpinCo of (x) 100% of the issued and outstanding equity interests of PF2 PST Services LLC and (y) 100 shares of SpinCo common stock and (ii) the transfer by Parent to
SpinCo of 100% of the issued and outstanding equity interests of PF2 IP LLC, in each case, solely in exchange for Parent’s receipt of shares of SpinCo Common Stock. 

“Covered Tax Distribution” means any distribution to which any member of the SpinCo Group is (or, but for an amendment to the
LLC Agreement after the Distribution, would have been) entitled to receive pursuant to Section 8.02(a) of the LLC Agreement after the Distribution to the extent attributable to Tax Items allocated to such member of the SpinCo Group for any Pre-Distribution Period, including as a result of an adjustment to any such Tax Items. 

“Disqualifying Action” means a Parent Disqualifying Action or Echo Disqualifying Action. 

“Distribution” means a transaction in which Parent will dispose of all of the shares of SpinCo Common Stock through
(1) one or more exchange offers pursuant to which Parent will redeem shares of Parent Common Stock for shares of SpinCo Common Stock (each, a “Split-Off Exchange”), (2) a distribution to
Parent shareholders of shares of SpinCo Common Stock to Parent shareholders without consideration on a pro rata basis (a “Spin-Off”) (3) one or more exchanges of SpinCo Common Stock for debt
of Parent (each, a “Debt Exchange”) or (4) any combination of the foregoing; provided that more than 80% of the SpinCo Common Stock shall be disposed of under a combination of the preceding clauses (1) and (2). 

“Distribution Date” means the first date on or after the date of the consummation of the first event described in clause
(1) or clause (2) of the definition of “Distribution” on which more than 80% of the SpinCo Common Stock has been disposed of under a combination of clause (1) or clause (2) of the definition of “Distribution.”

 “Distribution Effective Time” means the first time on or after the consummation of the first event described in clause
(1) or clause (2) of the definition of “Distribution” at which more than 80% of the SpinCo Common Stock has been disposed of under a combination of clause (1) or clause (2) of the definition of “Distribution.”

  
 4 

 “Distribution Taxes” means any Taxes incurred as a result of the failure of
the Intended Tax-Free Treatment of the Internal Restructuring, the Controlled Transfer or the Distribution. 

“Echo Cushion Percentage” means a percentage equal to the sum of (a) 50% of the difference between (i) 49.99% and
(ii) the percentage of the total Acquiror Capital Stock outstanding immediately after the Merger that is held immediately after the Merger by Persons who held such stock by reason of (A) having held Acquiror Capital Stock prior to the
Merger or (B) having acquired such Acquiror Capital Stock in the manner described in Section 3.3(b) of the Merger Agreement (the percentage described in this clause (a)(ii), the “Cushion Starting Percentage”), and (b) the
Cushion Starting Percentage. 
 “Echo Disqualifying Action” means (i) any Acquiror Shareholder Acquisition,
(ii) from and after the Effective Time, any action (or the failure to take any action) within Acquiror’s control by any member of the Acquiror Group (including (x) entering into any agreement, understanding or arrangement or any
negotiations with respect to any transaction or series of transactions or (y) any action resulting in an adjustment to the fixed settlement rate for any TEU Purchase Contract), (iii) from and after the Effective Time, any event (or series of
events) involving a transfer of the capital stock of Acquiror, (iv) any breach by any member of the Acquiror Group of any representation, warranty or covenant made by them in this Agreement, (v) from and after the Effective Time, any
coordinated acquisition of the stock of Acquiror by (x) any Person Under the Control of Blackstone with any BX Excluded Person or by (y) any Person Under the Control of H&F with any H&F Excluded Person; (vi) from and after the
Effective Time, the issuance by Acquiror (other than in a public offering) of its newly issued capital stock to any fund or other managed investment vehicle of Blackstone that is not a Person under the Control of Blackstone or to any fund or other
managed investment vehicle of H&F that is not a Person under the Control of H&F (vii) from and after the Effective Time, any acquisition (other than in a public offering) of the capital stock of Acquiror by any fund or other managed
investment vehicle of Blackstone that is not a Person under the Control of Blackstone, which acquisition is consummated, facilitated or otherwise executed due to the efforts or pursuant to the instructions of any Person under the Control of
Blackstone or (viii) from and after the Effective Time, any acquisition (other than in a public offering) of the capital stock of Acquiror by any fund or other managed investment vehicle of H&F that is not a Person under the Control of
H&F, which acquisition is consummated, facilitated or otherwise executed due to the efforts or pursuant to the instructions of any Person under the Control of H&F that, in each case ((i) through (viii)), is not a Parent Disqualifying Action
and would affect the Intended Tax-Free Treatment; provided, however, that the term “Echo Disqualifying Action” shall not include any action or event entered into pursuant to any
Transaction Document or that is undertaken pursuant to the Internal Restructuring, the Controlled Transfer, the Distribution (including a Debt Exchange) or the Merger. For the avoidance of doubt, a sale of Acquiror stock by any BX Investor or any
H&F Investor (or their Permitted Transferees) shall not constitute an Echo Disqualifying Action. 

  
 5 

 “Echo Tainted Stock” means Acquiror Equity Interests the issuance,
acquisition or disposition of which was consummated in a manner that did not constitute a breach of Section 9(a)(i)(D) solely because of the proviso thereto. 

“Effective Time” means the date and time of the filing with the Secretary of State of the State of Delaware of the
certificate of merger consummating the Merger, or such later time as is specified in such certificate of merger and as is agreed to by Parent and Acquiror. 

“Equity Interests” means any stock or other securities treated as equity for Tax purposes, options, warrants, rights,
convertible debt or any other instrument or security that affords any Person the right, whether conditional or otherwise, to acquire stock or to be paid an amount determined by reference to the value of stock. 

“Escheat Payment” means any payment required to be made to a Governmental Authority pursuant to an abandoned property,
escheat or similar law. 
 “Exit Transaction Documents” means, collectively, this Agreement, the Merger Agreement, the
Separation Agreement and the Transition Services Agreement. 
 “Final Determination” means (i) with respect to federal
income Taxes, (A) a “determination” as defined in Section 1313(a) of the Code (including, for the avoidance of doubt, an executed IRS Form 906) or (B) the execution of an IRS Form
870-AD (or any successor form thereto), as a final resolution of Tax liability for any Taxable period, except that a Form 870-AD (or successor form thereto) that
reserves the right of the taxpayer to file a claim for refund or the right of the IRS to assert a further deficiency shall not constitute a Final Determination with respect to the item or items so reserved; (ii) with respect to Taxes other than
federal income Taxes, any final determination of liability in respect of a Tax that, under Applicable Tax Law, is not subject to further appeal, review or modification through proceedings or otherwise; or (iii) with respect to any Tax, any
final disposition by reason of the expiration of the applicable statute of limitations (giving effect to any extension, waiver or mitigation thereof). 

“Governmental Authority” means any federal, state, local, provincial, foreign or international court, tribunal, judicial or
arbitral body, government, department, commission, board, bureau, agency, official or other regulatory, administrative or governmental authority or any national securities exchange. 

“Group” means the Parent Group, the Acquiror Group, the SpinCo Group or the JV Group, as the context requires. 

“Historic Acquiror Stock” means stock of Acquiror that Acquiror can demonstrate to have been (i) held by shareholders of
Acquiror immediately prior to the Merger and (ii) either (A) acquired by shareholders of Acquiror prior to the initial public offering of Acquiror, or (B) acquired by service providers of Acquiror prior to the Merger pursuant to
compensatory arrangements. 

  
 6 

 “Indemnifying Party” means the party from which another party is entitled
to seek indemnification pursuant to the provisions of Section 12. 
 “Indemnitee” means the party which
is entitled to seek indemnification from another party pursuant to the provisions of Section 12. 
 “Intended Tax-Free Treatment” means the qualification of (i) the Controlled Transfer, together with the Distribution as a reorganization described in Section 368(a)(1)(D) of the Code, pursuant to which
neither Parent nor SpinCo recognizes any gain or loss for U.S. federal income Tax purposes, and of each of Parent and SpinCo as a “party to the reorganization” within the meaning of Section 368(b) of the Code, (ii) the
Distribution, as such, as a distribution of SpinCo Common Stock to Parent’s shareholders and creditors pursuant to Section 355 of the Code (and, as applicable, Section 361 of the Code), pursuant to which neither Parent nor SpinCo nor
any of Parent’s shareholders recognizes any gain or loss for U.S. federal income Tax purposes, (iii) the Merger as a “reorganization” within the meaning of Section 368(a) of the Code pursuant to which neither Acquiror nor
SpinCo nor any of Acquiror’s or SpinCo’s shareholders recognizes any gain or loss for U.S. federal income Tax purposes, and of each of Acquiror and SpinCo as a “party to the reorganization” within the meaning of
Section 368(b) of the Code and (iv) the transactions described on Schedule A as being free from Tax to the extent set forth therein. 

“Internal Restructuring” has the meaning set forth in Schedule B. 

“IRS” means the United States Internal Revenue Service. 

“JV” has the meaning ascribed thereto in the preamble. 

“JV Corporate Group” means any member of the JV Group that (i) is treated as a corporation for U.S. federal income Tax
purposes, or (ii) (x) is a direct or indirect Subsidiary of a member of the JV Group described in clause (i) and (y) is wholly owned (directly or indirectly) by members of the JV Group described in clause (i) and/or Persons that are
not members of the JV Group. 
 “JV Group” means the JV and each of its Subsidiaries. 

“JV Group Tax” means any Tax of a member of the JV Group. 

“Letter Agreement” means the Amended and Restated Letter Agreement, dated as of September 28, 2018, by and among Parent,
the McKesson Members, Acquiror, JV and the other parties thereto, as amended from time to time. 
 “LLC Agreement” means
the Third Amended and Restated Limited Liability Company Agreement of Change Healthcare LLC, dated as of March 1, 2017, as amended from time to time. 

“Merger” has the meaning set forth in the Merger Agreement. 

  
 7 

 “Merger Agreement” has the meaning set forth in the recitals. 

“MCK Cushion Amount” means an amount of Acquiror Capital Stock equal to 50% of the difference between (x) 49.99% of the total
Acquiror Capital Stock outstanding and (y) the amount of Acquiror Capital Stock held immediately after the Merger by Persons who held such stock by reason of (i) having held Acquiror Capital Stock prior to the Merger or (ii) having
acquired such Acquiror Capital Stock in the manner described in Section 3.3(b) of the Merger Agreement, in each case as determined following the Merger. 

“Parent” has the meaning ascribed thereto in the preamble. 

“Parent Disqualifying Action” means (i) any action (or the failure to take any action) within Parent’s control by
any member of the Parent Group (or, to the extent the action is taken prior to the Effective Time, any member of the SpinCo Group) (including entering into any agreement, understanding or arrangement or any negotiations with respect to any
transaction or series of transactions), (ii) any event (or series of events) involving the transfer of the capital stock of Parent other than an Acquiror Shareholder Acquisition or (iii) any breach by any member of the Parent Group (or, to the
extent occurring prior to the Effective Time, by any member of the SpinCo Group) of any representation, warranty or covenant made by them in this Agreement, that, in each case ((i) through (iii)), would affect the Intended Tax-Free Treatment; provided, however, that the term “Parent Disqualifying Action” shall not include any action (or event otherwise described in clause (ii) above) undertaken pursuant to
any Transaction Document or pursuant to the Controlled Transfer, the Distribution (other than a Debt Exchange) or the Merger. 

“Parent Group” means Parent and each of its Subsidiaries, but excluding any member of the SpinCo Group. 

“Parent Separate Tax Return” means any Tax Return that is required to be filed by, or with respect to, a member of the Parent
Group that is not a Combined Tax Return. 
 “Person” has the meaning set forth in Section 7701(a)(1) of the Code. 

“Person Under the Control of Blackstone” means (i) the private side businesses controlled by The Blackstone Group Inc.
(“Blackstone”), which businesses are currently comprised of the Private Equity Business, the Tactical Opportunities Business, and the Real Estate Business (collectively, the “Existing Private Businesses”), and which
businesses shall include such other businesses that Blackstone may hereafter form or acquire and that are, at the time of any determination as to whether any such business is a Person Under the Control of Blackstone, managed within the same ethical
wall as the Existing Private Businesses and (ii) the employees, directors and officers of Blackstone or the businesses described in clause (i). For the avoidance of doubt, a Person Under the Control of Blackstone shall not include (each of the
following, a “BX Excluded Person”): (A) the public side businesses controlled by Blackstone (e.g. BAAM and GSO) and other businesses on the other side of the ethical wall from the private businesses described in clause (i), (B)
limited partners of any fund affiliated with Blackstone, (other than individuals who are limited partners that are described in clause (ii) or to the extent 

  
 8 

 
such individuals are acting in concert with a co-investment with a person described in clause (i) with respect to a
co-investment), (C) portfolio companies of the businesses described in clause (i), except to the extent such portfolio company is controlled by the applicable Blackstone business, and Blackstone actively
participates in or approves of the applicable acquisition of Parent common stock, (D) any company or business in which any business described in clause (A) of this sentence invests (other than a portfolio company described in the exception
to clause (C)), (E) with regard to any fund of funds controlled by Blackstone, any pooled investment vehicle or discretionary separate account in which such fund of funds invests, (F) any employee, director or officer referenced in clause
(ii) prior to or after such person has held such role, or (G) any investment accounts, estate planning or investment vehicles for the benefit of family members of Blackstone professionals or other employees or nonprofit organizations, with
respect to which the applicable Blackstone professional or employee does not have investment discretion. 
 “Person Under the
Control of H&F” means (i) the business entities controlled or managed by Hellman & Friedman LLC (“H&F”), which business entities consist of certain private equity investment funds formed for the
purpose of investing capital contributed by investors and that is affiliated with H&F (each, an “H&F Fund”), the general partners of such H&F Funds, and any entities formed or acquired by H&F in connection with any other
business that H&F may hereafter form or acquire, and (ii) employees, directors and officers of H&F or the business entities described in clause (i). For the avoidance of doubt, a Person Under the Control of H&F shall not include
(each of the following, an “H&F Excluded Person”) (A) limited partners of any H&F Fund (other than individuals who are limited partners and are described in clause (ii) or limited partners to the extent they are acting
in concert with an H&F Fund with respect to a co-investment), (B) portfolio companies of any H&F Fund except to the extent such portfolio company is controlled by the applicable H&F Fund, and
H&F actively participates in or approves of such portfolio company’s acquisition of Parent common stock, (C) any employee, director or officer referenced above prior to or after such person has held such role, and (D) any
investment accounts, estate planning or investment vehicles for the benefit of family members of H&F professionals or other employees or nonprofit organizations, with respect to which the applicable H&F professional or employee does not have
investment discretion. 
 “Post-Distribution Period” means any Taxable period (or portion thereof) beginning after the
Distribution Date. 
 “Pre-Distribution Period” means any Taxable period (or
portion thereof) ending on or before the Distribution Date. 
 “Principal Shareholder Letter” means the letters, dated as
of the date hereof, addressed to Parent by Blackstone and H&F, respectively, and delivered in connection with the execution of this Agreement. 

“Retained Business” means any business now, previously or hereafter conducted by Parent or any of its Subsidiaries or
Affiliates other than the Controlled Business and any other constituent business of the Core MTS Business (as defined in the Contribution Agreement). 

  
 9 

 “Separation Agreement” has the meaning set forth in the recitals. 

“SpinCo” has the meaning set forth in the preamble. 

“SpinCo Common Stock” means common stock, par value $0.001 per share, of SpinCo. 

“SpinCo Group” means SpinCo and each of its Subsidiaries. 

“SpinCo SAG” means a group made up of one or more chains of includible corporations (including SpinCo) connected through
stock ownership if SpinCo owns directly stock meeting the Stock Ownership Requirement in at least one other includible corporation and stock meeting the Stock Ownership Requirement in each of the includible corporations (except SpinCo) is owned
directly by one or more of the other includible corporations. 
 “SpinCo Separate Tax Return” means any Tax Return that is
filed or required to be filed by, or with respect to, any member of the SpinCo Group that is not a Combined Tax Return. 
 “Stock
Ownership Requirement” means, with respect to a corporation, stock owned representing at least 80% of the total voting power and at least 80% of the total value of the stock of such corporation. 

“Subsidiary” means, with respect to any specified Person, any other Person a majority of whose equity interests (whether by
voting power or by economic interest) are at the time directly or indirectly owned by such specified Person; provided that before the Effective Time, no member of the JV Group shall be a Subsidiary of Parent, SpinCo or Acquiror. 

“Tax” (and the correlative meaning, “Taxes,” “Taxing” and “Taxable”) means
(i) any tax, including any net income, gross income, gross receipts, recapture, alternative or add-on minimum, sales, use, business and occupation, value-added, trade, goods and services, ad valorem,
franchise, profits, license, business royalty, withholding, payroll, employment, capital, excise, transfer, recording, severance, stamp, occupation, premium, property, asset, real estate acquisition, environmental, custom duty, impost, obligation,
assessment, levy, tariff or other tax, governmental fee or other like assessment or charge of any kind whatsoever (including, but not limited to, any Escheat Payment), together with any interest and any penalty, addition to tax or additional amount
imposed by a Taxing Authority; or (ii) any liability of any member of the Parent Group, the SpinCo Group or the Acquiror Group for the payment of any amounts described in clause (i) as a result of any express or implied obligation to
indemnify any other Person (other than under the Transaction Documents). 
 “Tax Advisor” means Davis Polk &
Wardwell LLP and Ropes & Gray LLP, or another nationally recognized tax advisor reasonably acceptable to Acquiror, Parent, and SpinCo. 

“Tax Attribute” means a net operating loss, net capital loss, unused investment credit, unused foreign tax credit, excess
charitable contribution, unused general business credit, alternative minimum tax credit or any other Tax Item that could reduce a Tax liability. 

  
 10 

 “Tax Benefit” means
any refund, credit, offset or other reduction in otherwise required Tax payments. 
 “Tax Item” means any item of income,
gain, loss, deduction, credit, recapture of credit or any other item that can increase or decrease Taxes paid or payable. 
 “Tax
Proceeding” means any Tax audit, dispute, examination, contest, litigation, arbitration, action, suits, claim, cause of action, review, inquiry, assessment, hearing, complaint, demand, investigation or proceeding (whether administrative,
judicial or contractual). 
 “Tax Receivable Agreements” means the MCK Tax Receivable Agreement and the New Echo Tax
Receivable Agreement. 
 “Tax-Related Losses” means, with respect to any Taxes
imposed pursuant to any settlement, determination, or judgment, (i) all accounting, legal and other professional fees, and court costs incurred in connection with such settlement, determination, or judgment, as well as any other out-of-pocket costs incurred in connection with such settlement, determination, or judgment and (ii) all Damages, costs and expenses associated with stockholder
litigation or controversies and any amount paid by any member of the Parent Group, any member of the SpinCo Group or any member of the Acquiror Group in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any
other Taxing Authority, in each case, resulting from the failure of the Intended Tax-Free Treatment of the Internal Restructuring, the Controlled Transfer or the Distribution. 

“Tax Representation Letters (Distribution)” means the representations provided by Acquiror, SpinCo and Parent as contemplated
by Section 4.4(b)(ii) of the Merger Agreement, in the form delivered in connection with the filing of the Applicable SEC Filings and acknowledged by Parent and Acquiror by written notice in connection therewith to be final.

 “Tax Representation Letters (Merger)” means the representations provided by Acquiror and SpinCo as contemplated by
Section 4.4(b)(i) of the Merger Agreement, in the form delivered in connection with the filing of the Applicable SEC Filings and acknowledged by Parent and Acquiror by written notice in connection therewith to be final.

 “Tax Representation Letters” means, collectively, the Tax Representation Letters (Distribution) and the Tax
Representation Letters (Merger). 
 “Tax Return” means any Tax return, statement, report, form, election, certificate,
claim or surrender (including estimated Tax returns and reports, extension requests and forms, and information returns and reports), or statement or other document or written information filed or required to be filed with any Taxing Authority,
including any amendment thereof (solely for purposes of Section 4), appendix, schedule or attachment thereto. 
 “Taxing
Authority” means any Governmental Authority (domestic or foreign), including, without limitation, any state, municipality, political subdivision or governmental agency responsible for the imposition, assessment, administration, collection,
enforcement or determination of any Tax. 

  
 11 

 “TEU Purchase Contract” means a prepaid stock purchase contract
constituting a component of a tangible equity unit issued by Acquiror on or about July 1, 2019. 
 “Transaction
Documents” has the meaning set forth in the LLC Agreement. 
 “Transfer Taxes” means all U.S. federal, state,
local or foreign sales, use, privilege, transfer, documentary, stamp, duties, real estate transfer, controlling interest transfer, recording and similar Taxes and fees (including any penalties, interest or additions thereto) imposed upon any member
of the Parent Group, any member of the SpinCo Group, any member of the Acquiror Group or any member of the JV Group in connection with the Internal Restructuring, the Controlled Transfer, the Distribution or the Merger. 

(b) Each of the following terms is defined in the Section set forth opposite such term: 

 

			
	 Term
	  	 Section

	 Due Date
	  	 Section 14(a)

	 Final Allocation
	  	 Section 6(b)

	 Internal Tax-Free Transactions
	  	 Schedule A

	 Parent Tax Proceeding
	  	 Section 16(b)

	 Past Practices
	  	 Section 5(f)(i)

	 Proposed Allocation
	  	 Section 6(b)

	 Section 336(e) Election
	  	 Section 11(a)

	 Tax Arbiter
	  	 Section 24

	 Tax Benefit Recipient
	  	 Section 8(b)

 (c) All capitalized terms used but not defined herein shall have the same meanings as in the Contribution
Agreement. Any term used in this Agreement which is not defined in this Agreement or the Contribution Agreement shall, to the extent the context requires, have the meaning assigned to it in the Code or the applicable Treasury regulations thereunder
(as interpreted in administrative pronouncements and judicial decisions) or in comparable provisions of Applicable Tax Law. 

SECTION 2. Sole Tax Sharing Agreement. Except for this Agreement, the Tax
Receivable Agreements, the Letter Agreement, Section 11.04(e) of the LLC Agreement and Section 5.15 of the Contribution Agreement, any and all existing Tax sharing agreements or arrangements, written or unwritten, between any member of the
Parent Group, on the one hand, and any member of the SpinCo Group, the Acquiror Group or the JV Group, on the other hand, if not previously terminated, shall be terminated as of the Distribution Date without any further action by the parties
thereto. Following the Distribution, no member of the SpinCo Group, the Acquiror Group, the JV Group or the Parent Group shall have any further rights or liabilities thereunder, and, except for the Tax Receivable Agreements, the Letter Agreement,
Section 11.04(e) of the LLC Agreement and Section 5.15 of the Contribution Agreement, this Agreement shall be the sole Tax sharing agreement between the members of the SpinCo Group, the Acquiror Group or the JV Group, on the one hand, and
the members of the Parent Group, on the other hand. 

  
 12 

 SECTION 3. Certain Pre-Closing
Matters. From the date hereof until the Distribution Effective Time, Acquiror shall cooperate in good faith with any request by Parent to obtain a private letter ruling, closing agreement or similar determination to the effect that, in whole or
in part, the Controlled Transfer, the Distribution and/or the Merger will receive the Intended Tax-Free Treatment. 

SECTION 4. Allocation of Taxes. 

(a) General Allocation Principles. Except as provided in Section 4(c), all Taxes shall be allocated as
follows: 
 (i) Allocation of Taxes for Combined Tax Returns. Parent shall be allocated all Taxes reported, or
required to be reported, on any Combined Tax Return that any member of the Parent Group files or is required to file under the Code or other Applicable Tax Law; provided, however, that (A) to the extent any such Combined Tax
Return includes any Tax Item attributable to any member of the SpinCo Group or the Controlled Business in respect of any Post-Distribution Period, SpinCo shall be allocated all Taxes attributable to such Tax Items and (B) to the extent any such
Combined Tax Return includes any Tax Item in respect of any Pre-Distribution Period, SpinCo shall be allocated such Taxes to the extent a member of the SpinCo Group is (or, but for an amendment to, or waiver
under, the LLC Agreement occurring after the Distribution, would be) entitled to a Covered Tax Distribution (for the avoidance of doubt, other than a Covered Tax Distribution that has already been made) in respect of the Tax Items giving rise to
such Taxes. 
 (ii) Allocation of Taxes for Separate Tax Returns.  

(A) Except for Taxes allocated to SpinCo pursuant to Section 4(a)(ii)(B), Parent shall be allocated all Taxes reported, or
required to be reported, on a Parent Separate Tax Return or a SpinCo Separate Tax Return. 
 (B) SpinCo shall be allocated
all Taxes reported, or required to be reported, on (x) a Parent Separate Tax Return with respect to a Pre-Distribution Period to the extent a member of the SpinCo Group is (or would be) entitled to a
Covered Tax Distribution (for the avoidance of doubt, other than a Covered Tax Distribution that has already been made) in respect of the Tax Item(s) giving rise to such Taxes, (y) a SpinCo Separate Tax Return (including, for the avoidance of
doubt, a SpinCo Separate Tax Return filed or required to be filed in respect of federal, state, local or foreign income Taxes on an affiliated, consolidated, combined, unitary, fiscal unity or other group basis (including as permitted by
Section 1501 of the Code) with any member of the Acquiror Group) with respect to a Post-Distribution Period or (z) a SpinCo Separate Tax Return with respect to a Pre-Distribution Period, but in the
case of this clause (z), only to the extent a 

  
 13 

 
member of the SpinCo Group is (or, but for an amendment to, or waiver under, the LLC Agreement occurring after the Distribution, would be) entitled to a Covered Tax Distribution (for the
avoidance of doubt, other than a Covered Tax Distribution that has already been made) in respect of the Tax Item(s) giving rise to such Taxes. 

(b) Allocation Conventions. 

(i) All Taxes allocated pursuant to Section 4(a) shall be allocated in accordance with the Closing of
the Books Method; provided, however, that if Applicable Tax Law does not permit a SpinCo Group member to close its Taxable year on the Distribution Date, the Tax attributable to the operations of the members of the SpinCo Group for any
Pre-Distribution Period shall be the Tax computed using a hypothetical closing of the books consistent with the Closing of the Books Method. 

(ii) Any Tax Item of SpinCo, Acquiror or any member of their respective Groups arising from a transaction engaged in outside
the ordinary course of business on the Distribution Date after the Distribution Effective Time shall be properly allocable to SpinCo and any such transaction by or with respect to SpinCo, Acquiror or any member of their respective Groups occurring
after the Distribution Effective Time shall be treated for all Tax purposes (to the extent permitted by Applicable Tax Law) as occurring at the beginning of the day following the Distribution Date in accordance with the principles of Treasury
regulations Section 1.1502-76(b) (assuming no election is made under Section 1.1502-76(b)(2)(ii) of the Treasury regulations (relating to a ratable allocation
of a year’s Tax Items)); provided that the foregoing shall not include any action that is undertaken pursuant to the Internal Restructuring, the Controlled Transfer, the Distribution, the Merger or the Transaction Documents. 

(c) Special Allocation Rules. Notwithstanding any other provision in this Section 4, the following Taxes shall
be allocated as follows: 
 (i) Transfer Taxes. Transfer Taxes (other than those attributable to the Internal
Restructuring) shall be allocated to SpinCo. Any Transfer Taxes attributable to the Internal Restructuring shall be allocated to Parent. 

(ii) JV Group Taxes. JV Group Taxes shall be allocated to (A) SpinCo, if paid by a member of the Parent Group
pursuant to Section 5(g) and (B) the JV, otherwise. 
 (iii) Distribution Taxes and Tax-Related Losses. 
 (A) Any liability for Distribution Taxes (and any associated Tax-Related Losses) which would not have been incurred but for one or more Echo Disqualifying Actions (as determined by treating any acquisition of capital stock of Parent, SpinCo or Acquiror that constitutes a
Parent Disqualifying Action as if such acquisition did not occur) shall be allocated to SpinCo, subject to Section 4(c)(iii)(B) and Section 4(c)(iii)(C). 

  
 14 

 (B) Any liability for Distribution Taxes (and any associated Tax-Related Losses) solely by reason of the application of Section 355(e) which would not have been incurred if, instead of the occurrence of one or more Debt Exchanges that exceeds the MCK Cushion Amount, 100%
of the SpinCo Common Stock had been distributed in a Split-Off Exchange or Spin-Off on the Distribution Date to Persons whose acquisitions of such SpinCo Common Stock
were disregarded by reason of Section 355(e)(3)(A) of the Code, shall be allocated to Parent. 
 (C) Any liability for
Distribution Taxes (and any associated Tax-Related Losses) not described in Section 4(c)(iii)(B) which (x) would not have been incurred but for the occurrence of both one or more
Echo Disqualifying Actions and one or more Parent Disqualifying Actions, or which (y) both (I) would not have been incurred but for the occurrence of one or more Echo Disqualifying Actions (as determined by treating any Parent Disqualifying
Actions as if such Parent Disqualifying Actions did not occur) and (II) would not have been incurred but for the incurrence of one or more Parent Disqualifying Actions (as determined by treating any Echo Disqualifying Actions as if such Echo
Disqualifying Actions did not occur), shall be allocated to Parent. 
 (D) Any liability for Distribution Taxes (and any
associated Tax-Related Losses) not described in Section 4(c)(iii)(A), Section 4(c)(iii)(B) or Section 4(c)(iii)(C) shall be
allocated to Parent. 
 (iv) Internal Restructuring Taxes. Notwithstanding any other provision in this
Section 4, all Taxes with respect to the Internal Restructuring shall be allocated to Parent, except that any Taxes with respect to the Internal Restructuring to the extent attributable to the failure by the SpinCo Group to
preserve the Intended Tax-Free Treatment of the transaction described in clause (iv) of the definition of Intended Tax-Free Treatment, as a result of (a) the
failure of the SpinCo Group after the Effective Time to continue the historic business of the SpinCo Group or use a significant portion of the SpinCo Group’s business assets in a business, except as a result of any action that any member of the
SpinCo Group was, beginning at any time prior to the Effective Time, contractually bound to take (including pursuant to any Transaction Document or Exit Transaction Document), (b) the breach of the representations and covenants of the Acquiror Group
contained in this Agreement or (c) the breach of the covenants contained in this Agreement after the Effective Time by any member of the SpinCo Group, in each case, shall be allocated to SpinCo. 

  
 15 

 SECTION 5. Preparation and Filing of Tax Returns. 

(a) Parent Group Combined Tax Returns. 

(i) Parent shall prepare and file, or cause to be prepared and filed, Combined Tax Returns for which a member of the Parent
Group is required or, subject to Section 5(f)(iv), permitted, to file a Combined Tax Return. Each member of any such Combined Group shall execute and file such consents, elections and other documents as may be required or
requested by Parent in connection with the filing of such Combined Tax Returns. Items of income, gain, loss, deduction and credit of the JV for the taxable year which includes the Distribution Date shall be allocated to the Pre-Distribution Period and the Post-Distribution Period in accordance with Treasury regulations Section 1.1502-76(b)(2)(vi) (and any similar state or local provision of
Applicable Tax Law). Parent and Acquiror shall cooperate in determining the allocation described in the preceding sentence. 

(ii) The parties and their respective Affiliates shall elect to close the Taxable year of each SpinCo Group member on the
Distribution Date, to the extent permitted by Applicable Tax Law. For the avoidance of doubt, no member of the JV Group shall be treated as a member of the Spinco Group for this purpose. 

(b) SpinCo Separate Tax Returns. 

(i) Tax Returns to Be Prepared by Parent. Parent shall prepare (or cause to be prepared) and, to the extent permitted by
Applicable Law, file (or cause to be filed) all SpinCo Separate Tax Returns that relate in whole or in part to any Pre-Distribution Period for which Parent is liable for any Taxes not allocated to SpinCo under
this Agreement (excluding, for the avoidance of doubt, IRS Form 1065 (U.S. Return of Partnership Income) of JV and corresponding state or local Tax Returns (each, a “JV Income Tax Return”)); provided, however, that with
respect to any such Tax Return that is prepared by Parent but required to be filed by a member of the Acquiror Group under Applicable Law, Parent shall provide such Tax Returns to Acquiror at least thirty (30) days prior to the due date for
filing such Tax Returns (taking into account any applicable extension periods) with the amount of any Taxes shown as due thereon, and Acquiror shall execute and file (or cause to be executed and filed) the Tax Returns. 

(ii) Tax Returns to be Prepared by Acquiror. Acquiror shall prepare and file (or cause to be prepared and filed) all
SpinCo Separate Tax Returns that are not described in Section 5(b)(i) (including JV Income Tax Returns). 
 (c)
Provision of Information; Timing. SpinCo and Acquiror shall maintain all necessary information for Parent (or any of its Affiliates) to file any Tax Return that Parent is required or permitted to file under this Section 5, and
shall provide to Parent, upon reasonable request, all such necessary information to which it has access in accordance with the Parent Group’s past practice. Parent shall maintain all necessary information for Acquiror (or any of its Affiliates)
to file any Tax Return that Acquiror is required or permitted to file under this Section 5, and shall provide Acquiror with all such necessary information in accordance with the SpinCo Group’s past practice. 

(d) Review of SpinCo Separate Tax Returns. The party that is required to prepare a SpinCo Separate Tax Return (other than a SpinCo
Separate Tax Return that relates solely to a Post-Distribution Period and/or to JV Group Taxes) that is required to be filed after the Distribution Date shall submit a draft of such Tax Return to the
non-preparing party at least sixty 

  
 16 

 
(60) days prior to the earlier of (i) the due date for the filing of such Tax Return (taking into account any applicable extensions), or (ii) if applicable, the date on which such Tax
Return must be provided by Parent to Acquiror under Section 5(b)(i). The non-preparing party shall have the right to review such Tax Return, and to submit to the preparing party any reasonable changes to
such Tax Return no later than thirty (30) days prior to the earlier of (i) the due date for the filing of such Tax Return or (ii) if applicable, the date on which such Tax Return must be provided by Parent to Acquiror under
Section 5(b)(i) (and the preparing party agrees to consider in good faith any such changes submitted). The parties agree to consult and to attempt to resolve in good faith any issues arising as a result of the review of any such Tax Return. If
the parties are unable to resolve any such issues, the matter shall be submitted to the Tax Arbiter pursuant to Section 24. 
 (e)
Review and Approval of JV Income Tax Returns. Acquiror shall submit a draft of any JV Income Tax Return that it is required to prepare and file pursuant to Section 5(b)(ii) to Parent at least thirty (30) days prior to the due date
for the filing of such JV Income Tax Return (taking into account any applicable extensions). Parent shall have the right to review, comment on and approve any such JV Income Tax Return, such approval not to be unreasonably withheld, conditioned, or
delayed, and Acquiror agrees to consider in good faith any such changes submitted by Parent. The parties agree to consult and to attempt to resolve in good faith any issues arising as a result of the review of any such JV Income Tax Return. If the
parties are unable to resolve any such issues, the matter shall be submitted to the Tax Arbiter pursuant Section 24. 
 (f) Special
Rules Relating to the Preparation of Tax Returns. 
 (i) General Rule. Except as otherwise required by law, Parent
shall prepare (or cause to be prepared) any Tax Return for which it is responsible under this Section 5 in accordance with past practices, permissible accounting methods, elections or conventions (“Past Practices”) used
by the members of the Parent Group and the members of the SpinCo Group prior to the Distribution Date with respect to such Tax Return, and to the extent any items, methods or positions are not covered by Past Practices, in accordance with reasonable
Tax accounting practices selected by Parent. With respect to any Tax Return that Acquiror has the obligation and right to prepare, or cause to be prepared, under this Section 5 (other than a SpinCo Separate Tax Return that relates solely to a
Post-Distribution Period and/or to JV Group Taxes), except as otherwise required by law or with the consent of Parent (such consent not to be unreasonably withheld, conditioned, or delayed), such Tax Return shall be prepared in accordance with Past
Practices used by the members of the Parent Group and the members of the SpinCo Group (or, in the case of a JV Income Tax Return, JV) prior to the Distribution Date with respect to such Tax Return, and, with respect to any such Tax Return other than
a JV Income Tax Return, to the extent any items, methods or positions are not covered by Past Practices, in accordance with reasonable Tax accounting practices selected by Acquiror. 

  
 17 

 (ii) Consistency with Intended
Tax-Free Treatment. 
 (A) The parties shall report the Internal Restructuring in
the manner determined by Parent; provided that (x) Parent communicates its treatment of the Internal Restructuring to Acquiror no fewer than thirty (30) days prior to the due date (taking into account any applicable extensions) for
filing an applicable Tax Return that reflects the Internal Restructuring (y) such treatment is supported by substantial authority (within the meaning of Section 6662 of the Code), as determined by Acquiror in its reasonable discretion, in
each case, unless, and then only to the extent, an alternative position is required pursuant to a Final Determination, and (z) a member of the Acquiror Group may book reserves or make disclosures relating to the Internal Restructuring if
required to do so under applicable accounting principles or Tax law. 
 (B) The parties shall report the Controlled Transfer,
the Distribution and the Merger for all Tax purposes in a manner consistent with the Intended Tax-Free Treatment unless, and then only to the extent, an alternative position is required pursuant to a Final
Determination. 
 (iii) SpinCo Separate Tax Returns. With respect to any SpinCo Separate Tax Return for which Acquiror
is responsible pursuant to this Agreement, Acquiror and the other members of the Acquiror Group shall include such Tax Items in such SpinCo Separate Tax Return in a manner that is consistent with the inclusion of such Tax Items in any related Tax
Return for which Parent is responsible to the extent such Tax Items are allocated in accordance with this Agreement. 
 (iv)
Election to File Combined Tax Returns. Parent shall have sole discretion to file any Combined Tax Return if the filing of such Tax Return is elective under Applicable Tax Law. 

(v) Preparation of Transfer Tax Returns. The Company required under Applicable Tax Law to file any Tax Returns in
respect of Transfer Taxes shall prepare and file (or cause to be prepared and filed) such Tax Returns. If required by Applicable Tax Law, Parent, SpinCo and Acquiror shall, and shall cause their respective Subsidiaries to, cooperate in preparing and
filing, and join the execution of, any such Tax Returns. 
 (g) Payment of Taxes. Parent shall pay (or cause to be paid) to the proper
Taxing Authority (or to Acquiror with respect to any SpinCo Separate Tax Return prepared by Parent but required to be filed by a member of the Acquiror Group under Applicable Tax Law) the Tax shown as due on any Tax Return for which a member of the
Parent Group is responsible under this Section 5, and the members of the JV Group shall be jointly and severally liable to pay to Acquiror, and Acquiror shall pay (or cause to be paid) to the proper Taxing Authority the Tax shown as due
on any Tax Return for which a member of the Acquiror Group is responsible under this Section 5. If any member of the Parent Group is required to make a payment to a Taxing Authority for JV Group Taxes, Acquiror shall pay the amount of
such Taxes to Parent in accordance with Section 12 and Section 13. If any member of the Acquiror Group is required to make a payment to a Taxing Authority for Taxes allocated to Parent under Section 4, Parent
shall pay the amount of such Taxes to Acquiror in accordance with Section 12 and Section 13. 

  
 18 

 SECTION 6. Apportionment of Earnings and Profits and Tax
Attributes.  
 (a) Tax Attributes arising in a
Pre-Distribution Period will be allocated to (and the benefits and burdens of such Tax Attributes will inure to) the members of the Parent Group and the members of the SpinCo Group in accordance with the Code,
Treasury regulations and any other Applicable Tax Law, and, in the absence of controlling legal authority or unless otherwise provided under this Agreement, Tax Attributes shall be allocated to the legal entity that created such Tax Attributes. 

(b) On or before the earlier of (i) eighteen (18) months after the Distribution Date or (ii) sixty (60) days prior to the extended
due date for the first U.S. federal income Tax Return of the Acquiror Group following the Distribution Date, Parent shall deliver to Acquiror its determination in writing of the portion, if any, of any earnings and profits, Tax Attributes, overall
foreign loss or other affiliated, consolidated, combined, unitary, fiscal unity or other group basis Tax Attribute which is allocated or apportioned to the members of the SpinCo Group under Applicable Tax Law and this Agreement (“Proposed
Allocation”). Acquiror shall have forty-five (45) days to review the Proposed Allocation and provide Parent any comments with respect thereto, and Parent agrees to consider such comments in good faith. If Acquiror either provides no
comments or provides comments to which Parent agrees in writing, such resulting determination will become final (“Final Allocation”). If Acquiror provides comments to the Proposed Allocation and Parent does not agree with such
comments, the Final Allocation will be determined in accordance with Section 24. All members of the Parent Group and Acquiror Group shall prepare all Tax Returns in accordance with the Final Allocation. In the event of an
adjustment to the earnings and profits, any Tax Attributes, overall foreign loss or other affiliated, consolidated, combined, unitary, fiscal unity or other group basis Tax Attribute, Parent shall promptly notify Acquiror in writing of such
adjustment. For the avoidance of doubt, Parent shall not be liable to any member of the Acquiror Group for any failure of any determination under this Section 6(b) to be accurate under Applicable Tax Law; provided
that such determination was made in good faith. 
 (c) Except as otherwise provided herein, to the extent that the amount of any Tax
Attribute is later reduced or increased by a Taxing Authority or as a result of a Tax Proceeding, such reduction or increase shall be allocated to the Company to which such Tax Attribute was allocated pursuant to this Section 6, as
agreed by the parties. 
 SECTION 7. Utilization of Tax Attributes. 

(a) Amended Returns. Any amended Tax Return or claim for a refund with respect to any member of the SpinCo Group may be made only
by the party responsible for preparing the original Tax Return with respect to such member of the SpinCo Group pursuant to Section 5. Such party shall not file or cause to be filed any such amended Tax Return or claim for a refund
without the prior written consent of the other party, which consent shall not be unreasonably withheld, conditioned or delayed, if such filing, assuming it is accepted, could reasonably be expected to change the Tax liability of such other party (or
any Affiliate of such other party) for any Taxable period (including, for the avoidance of doubt, the amount of any Tax Attributes allocable under Section 6 to such other party (or any Affiliate of such other party)). 

  
 19 

 (b) Carryback of Tax Attributes. 

(i) To the extent permitted by Applicable Tax Law, Acquiror shall cause the SpinCo Group to elect to forego carrybacks of any
Tax Attributes of the SpinCo Group to a Pre-Distribution Period. 
 (ii) If Acquiror
is unable to forego carrybacks of any Tax Attributes of the SpinCo Group to a Pre-Distribution Period, the Parent Group shall, at the request of Acquiror and at Acquiror’s sole expense, file any amended
Tax Returns reflecting such carryback (unless such filing, assuming it is accepted, could reasonably be expected to increase by more than a de minimis amount, the Tax liability of Parent or any of its Affiliates for any Taxable period). If the
Parent Group (or any member thereof) receives (or realizes) a refund as a result of such a carryback, Parent shall promptly remit the amount of such refund to Acquiror in accordance with Section 8(b). 

(c) Carryforwards to Separate Tax Returns. If a portion or all of any Tax Attribute is allocated to a member of a Combined Group
pursuant to Section 6, and is carried forward to a SpinCo Separate Tax Return, any Tax Benefits arising from such carryforward shall be retained by the Acquiror Group. If a portion or all of any Tax Attribute is allocated to a member of
a Combined Group pursuant to Section 6, and is carried forward to a Parent Separate Tax Return, any Tax Benefits arising from such carryforward shall be retained by the Parent Group. 

SECTION 8. Tax Benefits. 

(a) Parent Tax Benefits. Parent shall be entitled to any Tax Benefits (including, in the case of any refund received, any interest
thereon actually received) received by any member of the Parent Group or any member of the SpinCo Group, other than any Tax Benefits (or any amounts in respect of Tax Benefits) to which SpinCo or Acquiror is entitled pursuant to Section 8(b).
Neither SpinCo nor Acquiror shall be entitled to any Tax Benefits received by any member of the Parent Group or the SpinCo Group, except as set forth in Section 8(b). 

(b) SpinCo and Acquiror Tax Benefits. SpinCo or Acquiror, as the case may be, shall be entitled to any Tax Benefits (including, in the
case of any refund received, any interest thereon actually received) received (i) by any member of the Parent Group or any member of the SpinCo Group after the Distribution Date with respect to any Tax allocated to the JV or a member of the
SpinCo Group under this Agreement (including, for the avoidance of doubt, any amounts allocated to the JV pursuant to Section 4(c)(iii)), or (ii) by a member of the SpinCo Group in respect of a Post-Distribution Period. 

(c) A Company receiving (or realizing) a Tax Benefit (a “Tax Benefit Recipient”) to which another Company is entitled
hereunder shall pay over the amount of such Tax Benefit (including interest received from the relevant Taxing Authority, but net of any Taxes imposed with respect to such Tax Benefit and any other reasonable costs) within thirty (30) days of
receipt thereof (or from the due date for payment of any Tax reduced thereby); provided, however, that the other Company, upon the request of such Tax Benefit Recipient, shall repay the amount paid to the other Company (plus any
penalties, interest or other charges imposed by the relevant Taxing Authority) in the event that, as a result of a subsequent Final Determination, a Tax Benefit that gave rise to such payment is subsequently disallowed. 

  
 20 

 SECTION 9. Certain Representations and Covenants.

 (a) Representations. 

(i) Acquiror and each other member of the Acquiror Group represents that as of the date hereof, and covenants that as of
immediately after the Closing, except as expressly described in the Exit Transaction Documents, Acquiror has no plan or intention: 

(A) to liquidate or merge or consolidate with any other Person any member of the SpinCo Group or the JV Group subsequent to the
Closing, in each case, except (x) as provided for under the Merger Agreement or (y) liquidations, mergers, or consolidations of members of the JV Corporate Group with other members of the JV Corporate Group; 

(B) to sell or otherwise dispose of any material asset of (i) the Controlled Business held by any member of the SpinCo
Group to a Person other than a member of the SpinCo SAG or (ii) the Controlled Business held by any member of the JV Group to a Person other than another member of the JV Group that is a direct or indirect wholly owned Subsidiary of the JV, in
each case, subsequent to the Closing and except for (v) sales or dispositions by members of the JV Corporate Group to other members of the Acquiror Group, (w) sales or dispositions in the ordinary course of business, (x) any cash paid
to acquire assets in arm’s length transactions, (y) transactions that are disregarded for U.S. federal Tax purposes and (z) mandatory or optional repayment or prepayment of indebtedness; 

(C) to take or fail to take any action in a manner that is inconsistent with the written information and representations
furnished by SpinCo or Acquiror to the Tax Advisors in connection with the Tax Representation Letters; ; 
 (D) to repurchase
stock of Acquiror (except for Historic Acquiror Stock) other than in a manner that satisfies the requirements of Section 4.05(1)(b) of IRS Revenue Procedure 96-30 (as in effect prior to the amendment of
such Revenue Procedure by IRS Revenue Procedure 2003-48) and consistent with any representations made to the Tax Advisors in connection with the Tax Representation Letters ; or 

  
 21 

 (E) to enter into any negotiations, agreements or arrangements with respect
to transactions or events (including stock issuances, pursuant to the exercise of options or otherwise, option grants, the adoption of, or authorization of shares under, a stock option plan, capital contributions, or acquisitions, but not including
any action expressly contemplated by the Transaction Documents) that could reasonably be expected (assuming no Parent Disqualifying Action occurs) to cause the Distribution to be treated as part of a plan (within the meaning of Section 355(e)
of the Code) pursuant to which one or more Persons acquire directly or indirectly SpinCo stock representing a 50% or greater interest within the meaning of Section 355(d)(4) of the Code; provided that no negotiations, agreements or
arrangements with respect to transactions or events by Acquiror or any Member of Acquiror Group shall result in a breach of this Section 9(a)(i)(E) if (a) the percentage equal to the quotient of (I) the sum of (A) the
amount of Acquiror Capital Stock that is, or could be, directly or indirectly acquired as a result of all such negotiations, agreements or arrangements, and (B) the product of (x) the Cushion Starting Percentage and (y) the total
Acquiror Capital Stock outstanding immediately after the Merger, divided by (II) the sum of (A) the amount of Acquiror Capital Stock that would be issued in such transactions or events, and (B) the total Acquiror Capital Stock
outstanding immediately after the Merger, would not, in the aggregate, exceed (b) the Echo Cushion Percentage. 
 (ii)
Each member of the Acquiror Group represents that: 
 (A) as of the date hereof, the only outstanding Acquiror Capital Stock
is (x) shares of Acquiror Common Stock, in number equal to 127,429,058, (y) equity or equity-linked compensation awards under the HCIT Holdings Inc. Amended and Restated 2009 Equity Incentive Plan and the Change Healthcare Inc. 2019 Omnibus
Incentive Plan, pursuant to which 21,670,595 shares of Acquiror Common Stock may vest or be issued and (z) purchase contracts that are components of the 6.0% Tangible Equity Units, in number equal to 5,137,345 and pursuant to which a maximum
number of 19,758,743 shares of Acquiror Common Stock (subject to any required settlement rate adjustment occurring after the date hereof) may be issued; and 

(B) from the date hereof to the Effective Time, no other Acquiror Capital Stock will be issued. 

(iii) Each member of the Parent Group represents that: 

(A) as of the date hereof, and as of the Effective Time, neither Parent nor SpinCo has had “substantial negotiations”
(within the meaning of Treasury regulations Section 1.355-7(h)(1)(iv)) during the two-year period ending on the Effective Time with any Person (other than Acquiror
or its Affiliates and their respective financial, legal and tax advisors, consultants, accountants, and other representatives and agents, in each case in their capacity as advisors, representatives, or agents of Acquiror or its Affiliates) regarding
any acquisition of SpinCo stock or of a significant portion of the assets of the JV Group. 

  
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 (B) The Distribution is not and never has been motivated to any extent by a
desire on the part of any member of the Parent Group to facilitate a sale or other disposition of SpinCo, other than the Merger. 

(C) The Distribution is not and never has been motivated to any extent by a desire on the part of any member of the Parent
Group to facilitate acquisitions of any stock of SpinCo, other than (i) the Merger, (ii) issuing stock of SpinCo to management and employees as incentive compensation, (iii) the use of stock of SpinCo in Debt Exchanges, or
(iv) enhancing the ability of SpinCo to use SpinCo stock as an acquisition currency. 
 (D) At the time members of the
Parent Group entered into the Contribution Agreement, Parent was not aware of any Person having a plan or intention to effect a transaction (other than the Distribution or the Merger) that would involve a change of control of SpinCo. 

(b) Covenants. In each case from and after the Effective Time: 

(i) Each of Parent, SpinCo and Acquiror agrees that it shall not, and it will not permit any member of its respective Group to,
take or fail to take, as applicable, any action that constitutes a Disqualifying Action described in the definitions of Parent Disqualifying Action (in the case of Parent and the Parent Group) and Echo Disqualifying Action (in the case of Acquiror
for itself and as a successor to SpinCo and for the Acquiror Group), as applicable. 
 (ii) Each of SpinCo and Acquiror will
not, and will not permit any other member of their respective Groups to, take or fail to take any action that is inconsistent with the information and representations furnished by SpinCo or Acquiror to the Tax Advisors in connection with the Tax
Representation Letters. 
 (iii) No Person Under the Control of Blackstone will join with any BX Excluded Person in making
one or more coordinated acquisitions or dispositions of the stock of Acquiror, except for coordinated dispositions of Acquiror stock (i) consisting solely of Historic Acquiror Stock and (ii) resulting from public offerings by Acquiror or
other issuances by Acquirer otherwise permitted by this Agreement. 
 (iv) No Person Under the Control of H&F will join
with any H&F Excluded Person in making one or more coordinated acquisitions or dispositions of the stock of Acquiror, except for coordinated dispositions of Acquiror stock (i) consisting solely of Historic Acquiror Stock and
(ii) resulting from public offerings by Acquiror or other issuances by Acquiror otherwise permitted by this Agreement. 

  
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 (v) Each of SpinCo, Acquiror and each other member of their respective
Groups covenants to Parent that, without the prior written consent of Parent, during the two-year period following the Effective Time, except as described in the Exit Transaction Documents: 

(A) SpinCo will (w) maintain its status as a company engaged in the Controlled Business for purposes of
Section 355(b)(2) of the Code, (x) not engage in any transaction that would result in it ceasing to be a company engaged in the Controlled Business for purposes of Section 355(b)(2) of the Code, (y) cause each other member of the
SpinCo Group whose activities are relied upon for purposes of qualifying the Distribution for the Intended Tax-Free Treatment to take such actions as may be required to maintain SpinCo’s status as a
company engaged in the Controlled Business for purposes of Section 355(b)(2) of the Code and any such other Applicable Tax Law and (z) not engage in any transaction or permit any other member of the SpinCo Group to engage in any
transaction that would result in SpinCo ceasing to be a company engaged in the Controlled Business for purposes of Section 355(b)(2) of the Code or such other Applicable Tax Law, taking into account Section 355(b)(3) of the Code for
purposes of each of clauses (w) through (z) hereof; 
 (B) neither SpinCo nor Acquiror will repurchase stock of Acquiror
(except for Historic Acquiror Stock) in a manner contrary to the requirements of Section 4.05(1)(b) of IRS Revenue Procedure 96-30 (as in effect prior to the amendment of such Revenue Procedure by IRS
Revenue Procedure 2003-48) or inconsistent with any representations made by SpinCo to the Tax Advisors in connection with the Tax Representation Letters; 

(C) neither Acquiror nor SpinCo will, or will agree to, merge, consolidate or amalgamate with any other Person (except as
provided for under the Merger Agreement), unless, in the case of a merger or consolidation, Acquiror or SpinCo is the survivor of the merger, consolidation or amalgamation; 

(D) no member of the Acquiror Group will, or will agree to, sell or otherwise issue to any Person except as provided for under
the Merger Agreement, any Equity Interests of Acquiror or of any member of the Acquiror Group; provided, however, that (i) Acquiror shall be permitted to adopt, and issue stock pursuant to, a stockholder rights plan,
(ii) Acquiror may issue an unlimited amount of Equity Interests that satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan
of an employer) of Treasury regulations Section 1.355-7(d), and (iii) Acquiror may issue Equity Interests not described in clauses (i) or (ii) above to the extent such issuances would not cause
(a) the percentage equal to the quotient of (I) the sum of (A) the amount of such issuances taken together in the aggregate with all Echo Tainted Stock, and (B) the product of (x) the Cushion Starting Percentage and
(y) the total Acquiror Capital Stock outstanding immediately after the Merger, divided by (II) the sum of (A) the amount of such issuances taken together in the aggregate with all Echo Tainted Stock, and (B) the total
Acquiror Capital Stock outstanding immediately after the Merger, to exceed (b) the Echo Cushion Percentage; 

  
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 (E) no member of the Acquiror Group will agree to enter into (i) any
transaction or series of transactions, as a result of which one or more persons would directly or indirectly acquire, within the meaning of Section 355(e), a number of shares of Acquiror and/or SpinCo capital stock that would, when combined
with (ii) any other direct or indirect acquisitions of SpinCo capital stock pertinent for purposes of Section 355(e) of the Code (including the Merger) that have already occurred or will occur simultaneously with the transaction described
in clause (i), reasonably be expected to result in Distribution Taxes; provided that, notwithstanding the foregoing, SpinCo and/or Acquiror shall be permitted to (x) adopt, and issue stock pursuant to, a stockholder rights plan or
(y) issue securities that satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury regulations Section 1.355-7(d); provided further that any clarification of, or change in, the statute or regulations promulgated under Section 355(e) of the Code shall be incorporated in the restrictions in
this clause (E) and the interpretation thereof; as of the date of issuance or promulgation of such clarification or change (or, if later, the effective date thereof); 

(F) no member of the Acquiror Group will amend its certificate of incorporation (or other organizational documents), or take
any other action, whether through a stockholder vote or otherwise, affecting the voting rights of the Equity Interests of SpinCo or Acquiror (including, without limitation, through the conversion of one class of Equity Interests of SpinCo or
Acquiror into another class of Equity Interests of SpinCo or Acquiror); and 
 (G) no member of the Acquiror Group will take,
or permit to be taken, any action, whether by merger, liquidation, the making of an entity classification election or otherwise, that would result in JV ceasing to be treated as a partnership for U.S. federal income tax purposes. 

(c) Acquiror Covenants Exceptions. Notwithstanding the provisions of Section 9(b), SpinCo, Acquiror and the other members of their
respective Groups may: 
 (i) pay cash to acquire assets in arm’s length transactions, engage in transactions that are
disregarded for U.S. federal Tax purposes, and make mandatory or optional repayments or prepayments of indebtedness; 
 (ii)
dispose of assets of members of the JV Corporate Group; 
 (iii) dispose of assets (other than those described in
Section 9(c)(i) or Section 9(c)(ii)) that could otherwise be subject to Section 9(b)(i), (b)(ii) or (b)(v) if the aggregate fair value of all such
assets does not exceed $125 million; or 

  
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 (iv) in the case of any other action that would reasonably be expected to be
inconsistent with the covenants contained in (b), if either: (A) SpinCo or Acquiror notifies Parent of its proposal to take such action and Acquiror and Parent obtain a ruling from the IRS to the effect that such action will not affect
the Intended Tax-Free Treatment (a “Favorable Tax Ruling”), provided that Acquiror agrees in writing to bear any expenses associated with obtaining such a ruling and, provided
further that the Acquiror Group shall not be relieved of any liability under Section 12(a) of this Agreement by reason of seeking or having obtained such a ruling; or (B) SpinCo or Acquiror notifies Parent
of its proposal to take such action and obtains an unqualified opinion of counsel or from a “Big Four” accounting firm (x) from a Tax advisor recognized as an expert in federal income Tax matters and reasonably acceptable to Parent,
(y) on which Parent may rely and (z) to the effect that such action will not affect the Intended Tax-Free Treatment (assuming that the Internal Restructuring, the Controlled Transfer, the
Distribution and the Merger would otherwise qualify for the Intended Tax-Free Treatment) (a “Favorable Tax Opinion”), provided further that the Acquiror Group shall not be relieved of
any liability under Section 12(a) of this Agreement by reason of having obtained a Favorable Tax Opinion. 

SECTION 10. Procedures Relating to Opinions and Rulings. If a member of the Acquiror Group notifies Parent that it desires to
take an action that would reasonably be expected to be inconsistent with the covenants contained in Section 9(b), then the Parent Group shall cooperate in good faith with the Acquiror Group to obtain the Favorable Tax
Ruling and/or a Favorable Tax Opinion. The Acquiror Group shall reimburse Parent for all reasonable out-of-pocket expenses incurred by the Parent Group in connection
with such cooperation within fifteen (15) Business Days of receipt of an invoice from Parent therefor. 

SECTION 11. Protective Section 336(e) Elections.  

(a) Section 336(e) Election. Pursuant to Treasury regulations Sections 1.336-2(h)(1)(i) and 1.336-2(j), Parent, Acquiror and SpinCo agree that (if and to the extent determined by Parent) Parent shall make a timely protective election under Section 336(e) of the Code and the Treasury regulations issued
thereunder for any member of the SpinCo Group that is a domestic corporation for U.S. federal income Tax purposes with respect to the Distribution (a “Section 336(e) Election”). It is intended that a
Section 336(e) Election will have no effect unless the Distribution is a “qualified stock disposition,” as defined in Treasury regulations Section 1.336(e)-1(b)(6), by reason of the
application of Treasury regulations Section 1.336-1(b)(5)(i)(B) or Treasury regulations Section 1.336-1(b)(5)(ii). 

(b) Parent TRA. If and to the extent that there is a Disqualifying Action and the resulting Taxes (including any Taxes attributable to
the Section 336(e) Election) are allocated to Parent pursuant to Section 4, (i) Parent shall be entitled to periodic payments from SpinCo equal to the product of (x) 85% of the tax savings arising from the
step-up in tax basis resulting from the Section 336(e) Election and (y) the percentage of such Taxes that are allocated to Parent pursuant to Section 4, and (ii) the Parties shall negotiate
in good faith the terms of a tax receivable agreement to govern the calculation of such payments, with it being agreed that the terms of such agreement shall be substantially similar to the terms of the MCK Tax Receivable Agreement; provided
that any such tax saving in clause (i) shall be determined using a “with and without” methodology (treating any deductions or amortization attributable to the step-up in tax basis resulting from
the Section 336(e) Election as the last items claimed for any taxable year, including after the utilization of any carryforwards). 

  
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 SECTION 12. Indemnities. 

(a) Acquiror Indemnity to Parent. The Acquiror as successor to SpinCo shall be obligated to indemnify (and the JV and each other member
of the JV Group shall jointly and severally be obligated to pay to Acquiror all amounts necessary to allow Acquiror to indemnify) Parent and the other members of the Parent Group against, and hold them harmless, without duplication, from
(i) any payments by Parent of any Tax liability and any associated Tax-Related Losses allocated to SpinCo pursuant to Section 4; provided that, the amount of such indemnity shall
be limited to the amount of any payment of Tax or Tax Related Losses required to be made by Parent or any member of the Parent Group and, for the avoidance of doubt, shall be calculated without regard to any harm to Parent or any member of the
Parent Group relating to any equity or other interests in Parent or any other member of the Parent Group directly or indirectly in the JV Group or in the Acquiror Group and (ii) notwithstanding any provisions of this Agreement, the Separation
Agreement, the Merger Agreement, or otherwise, any Damages arising from or relating to, directly or indirectly, whether by operation of the provisions of this Agreement, the Separation Agreement, the Merger Agreement or otherwise, any failure of the
Effective Time to occur immediately following the Distribution Effective Time primarily as a result of any failure by Acquiror to perform its obligation to close the Merger in accordance with the Merger Areement. 

(b) Parent Indemnity to Acquiror. Except in the case of any liabilities described in Section 12(a), Parent and
each other member of the Parent Group will jointly and severally indemnify Acquiror and the other members of the Acquiror Group against, and hold them harmless, without duplication, from: 

(i) any Tax liability and any associated Tax-Related Losses allocated to Parent
pursuant to Section 4; 
 (ii) any Taxes imposed on any member of the SpinCo Group or Acquiror Group under
Treasury regulations Section 1.1502-6 (or similar or analogous provision of state, local or foreign law) as a result of any such member being or having been a member of a Combined Group; and 

(iii) notwithstanding any provisions of this Agreement, the Separation Agreement, the Merger Agreement, or otherwise, any
Damages arising from or relating to, directly or indirectly, whether by operation of the provisions of this Agreement, the Separation Agreement, the Merger Agreement or otherwise, any failure of the Effective Time to occur immediately following the
Distribution Effective Time primarily as a result of any failure by MCK or SpinCo to perform its obligation to close the Merger in accordance with the Merger Agreement. 

  
 27 

 (c) Discharge of Indemnity. Acquiror, the JV, Parent and the members of their
respective Groups shall discharge their obligations under Section 12(a) or Section 12(b) hereof, respectively, by paying the relevant amount in accordance with Section 13, within 30 Business Days of demand
therefor. Any such demand shall include a statement showing the amount due under Section 12(a) or Section 12(b), as the case may be. Notwithstanding the foregoing, if any member of the Acquiror Group or any member of
the Parent Group disputes in good faith the fact or the amount of its obligation under Section 12(a) or Section 12(b), then no payment of the amount in dispute shall be required until any such good faith dispute is
resolved in accordance with Section 24 hereof; provided, however, that any amount not paid within thirty (30) Business Days of demand therefor shall bear interest as provided in Section 14. 

(d) Tax Benefits. If an indemnification obligation of any Indemnifying Party under this Section 12 arises in respect of an
adjustment that makes allowable to an Indemnitee any Tax Benefit (other than a Tax Benefit resulting from a Section 336(e) Election, which shall be governed exclusively by Section 11) which would not, but for
such adjustment, be allowable, then any such indemnification obligation shall be an amount equal to (i) the amount otherwise due but for this Section 12(d) minus (ii) the reduction (attributable to such Tax
Benefit) in actual cash Taxes payable by the Indemnitee in the taxable year such indemnification obligation arises and the two taxable years following such year, determined on a “with and without” basis. 

(e) Sole Remedy. Parent (on behalf of itself and each member of the Parent Group) covenants and agrees that the remedies provided
for in Section 12(a) shall constitute the sole and exclusive remedy for all Damages, including any Tax liabilities and any associated Tax-Related Losses, that Parent or any member of the Parent Group may
suffer or incur arising from, or directly or indirectly relating to any breach or violation of any of the representations, warranties, covenants and agreements contained in this Agreement, the various Tax Representation Letters, under
Section 11.04(e) of the LLC Agreement, or Section 5.15 of the Contribution Agreement by the Acquiror, the JV, SpinCo, and any member of the Acquiror Group, JV Group or SpinCo Group, or otherwise relating to the failure of the Controlled
Transfer, the Distribution, or the Merger to occur or receive the Intended Tax-Free Treatment, and the Parent (on behalf of itself and each member of the Parent Group) hereby irrevocably waives any other
rights or remedies (whether at law or in equity and whether based on contract, tort, statute or otherwise) that it may otherwise have had, now have or may in the future have against the Acquiror, the JV, SpinCo, and any member of the Acquiror Group,
JV Group or SpinCo Group or any of their respective direct or indirect Affiliates, officers, managers, directors, employees, advisors, stockholders, members, consultants, investment bankers, brokers, controlling persons, partners or other
representatives or agents thereof arising from, or directly or indirectly relating to any breach or violation of any of the representations, warranties, covenants and agreements contained in this Agreement, the various Tax Representation Letters,
under Section 11.04(e) of the LLC Agreement, or Section 5.15 of the Contribution Agreement by the Acquiror, the JV, SpinCo, and any member of the Acquiror Group, JV Group or SpinCo Group and covenants not to sue or otherwise assert any
claim (or assist any Person in suing or otherwise asserting any claims) encompassed by the foregoing covenant, agreement and waiver; provided that the foregoing shall not apply to any party’s right to seek specific performance pursuant to
Section 20 hereof. 

  
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 SECTION 13. Acquiror Shareholders Not Parties. For the
avoidance of doubt, and notwithstanding any provision of this Agreement or any other Transaction Document to the contrary, (i) no Person who is a direct or indirect shareholder, member, or interest holder in Acquiror is a party to, or is bound
by, or makes any representations, warranties, or covenants, or indemnities pursuant to, this Agreement (unless such Person is Parent, SpinCo, Acquiror, or any of their respective Subsidiaries), and (ii) notwithstanding that certain Persons
described in the foregoing sentence make the representations, warranties, and covenants in the Principal Shareholder Letter, such Persons shall not be liable thereunder, under any Transaction Document, or otherwise by reason of having breached such
representations, warranties, or covenants. 
 SECTION 14. Payments. 

(a) Timing. All payments to be made under this Agreement (excluding, for the avoidance of doubt, any payments to a Taxing Authority
described herein) shall be made in immediately available funds. Except as otherwise provided, all such payments will be due thirty (30) Business Days after the receipt of notice of such payment or, where no notice is required, thirty
(30) Business Days after the fixing of liability or the resolution of a dispute (the “Due Date”). Payments shall be deemed made when received. Any payment that is not made on or before the Due Date shall bear interest at the
rate equal to the “prime” rate as published on such Due Date in the Wall Street Journal, Eastern Edition, for the period from and including the date immediately following the Due Date through and including the date of payment. With respect
to any payment required to be made under this Agreement, Parent has the right to designate, by written notice to Acquiror, which member of the Parent Group will make or receive such payment; and Acquiror has the right to designate, by written notice
to Parent, which member of the Acquiror Group will make or receive such payment. 
 (b) Treatment of Payments. To the extent permitted
by Applicable Tax Law, any payment made by Parent or any member of the Parent Group to Acquiror or any member of the Acquiror Group, or by Acquiror or any member of the Acquiror Group to Parent or any member of the Parent Group, pursuant to this
Agreement, the Separation Agreement, the Merger Agreement or any other Exit Transaction Document that relates to Taxable periods (or portions thereof) ending on or before the Distribution Date shall be treated by the parties hereto for all Tax
purposes as a distribution by SpinCo to Parent, or capital contribution from Parent to SpinCo, as the case may be; provided, however, that any payment made pursuant to the Transition Services Agreement shall instead be treated as a payment
for services. In the event that a Taxing Authority asserts that a party’s treatment of a payment described in this Section 14(b) should be other than as required herein, such party shall use its commercially reasonable
efforts to contest such assertion in a manner consistent with Section 16 of this Agreement. 
 (c) No Duplicative Payment.
It is intended that the provisions of this Agreement shall not result in a duplicative payment of any amount required to be paid under the Separation Agreement, the Merger Agreement or any other Exit Transaction Document, and this Agreement
shall be construed accordingly. 

  
 29 

 SECTION 15. Communication and Cooperation. 

(a) Consult and Cooperate. SpinCo, Parent and Acquiror shall consult and cooperate (and shall cause each other member of their
respective Groups to consult and cooperate) fully at such time and to the extent reasonably requested by the other party in connection with all matters subject to this Agreement. Such cooperation shall include, without limitation: 

(i) the retention, and provision on reasonable request, of any and all information including all books, records, documentation
or other information pertaining to Tax matters relating to the SpinCo Group (or, in the case of any Tax Return of the Parent Group, the portion of such return that relates to Taxes for which the SpinCo Group or the Acquiror Group may be liable
pursuant to this Agreement), any necessary explanations of information, and access to personnel, until one year after the expiration of the applicable statute of limitation (giving effect to any extension, waiver or mitigation thereof); 

(ii) the execution, to the extent commercially reasonable, of any document that may be necessary (including to give effect to
Section 16) or helpful in connection with any required Tax Return or in connection with any audit, proceeding, suit or action; and 

(iii) the use of the parties’ commercially reasonable efforts to obtain any documentation from a Governmental Authority or
a third party that may be necessary or helpful in connection with the foregoing. 
 (b) Provide Information. Except as set forth in
Section 16, Parent, SpinCo and Acquiror shall keep each other reasonably informed with respect to any material development relating to the matters subject to this Agreement. 

(c) Tax Attribute Matters. Parent, SpinCo and Acquiror shall promptly advise each other with respect to any proposed Tax adjustments
that are the subject of an audit or investigation, or are the subject of any proceeding or litigation, and that may affect any Tax liability or any Tax Attribute (including, but not limited to, basis in an asset or the amount of earnings and
profits) of any member of the Acquiror Group or any member of the Parent Group, respectively. 
 (d) Confidentiality. The parties
hereby agree that the provisions of Section 11.02 (Confidentiality) of the LLC Agreement (as in effect prior to any amendment to, or waiver under, the LLC Agreement occurring after the Distribution) shall apply, mutatis mutandis, to all
information and material furnished by any party or its representatives hereunder. Notwithstanding the foregoing or any other provision of this Agreement or any other agreement, (i) no member of the Parent Group or the Acquiror Group,
respectively, shall be required to provide any member of the Acquiror Group or the Parent Group, respectively, or any other Person access to or copies of any information or procedures other than information or procedures that relate solely to the
SpinCo Group or the JV Group, the business or assets of any member of the SpinCo Group or the JV Group, or matters for which Parent or Acquiror, respectively, has an obligation to indemnify under this Agreement, and (ii) in no event shall any
member of the Parent Group or the Acquiror Group, respectively, be required to provide any member of the 

  
 30 

 
Acquiror Group or the Parent Group, respectively, or any other Person access to or copies of any information if such action could reasonably be expected to result in the waiver of any privilege.
Notwithstanding the foregoing, in the event that Parent or Acquiror, respectively, determines that the provision of any information to any member of the Acquiror Group or the Parent Group, respectively, could be commercially detrimental or violate
any law or agreement to which Parent or Acquiror, respectively, is bound, or result in the waiver of any privilege, Parent and Acquiror, respectively, shall use reasonable best efforts to permit compliance with their obligations under this
Section 15 while avoiding such harm or consequence (and shall promptly provide notice to Parent or Acquiror, to the extent such access to or copies of any information is provided to a Person other than a member of the
Parent Group or the Acquiror Group (as applicable)). 
 SECTION 16. Audits and Contest. 

(a) Notice. Each of Parent, SpinCo and Acquiror shall promptly notify the other parties in writing upon the receipt from a relevant
Taxing Authority of any notice of a Tax Proceeding that may give rise to an indemnification obligation under this Agreement; provided that a party’s right to indemnification under this Agreement shall not be limited in any way by a
failure to so notify, except to the extent that the Indemnifying Party is prejudiced by such failure. 
 (b) Parent Control.
Notwithstanding anything in this Agreement to the contrary, but subject to Section 16(c), Parent shall have the right to control any Tax Proceeding with respect to any Tax matters of (i) a Combined Group or any member
of a Combined Group (as such), (ii) any member of the Parent Group and (iii) any member of the SpinCo Group relating solely to a Pre-Distribution Period (a “Parent Tax Proceeding”).
Parent shall have absolute discretion with respect to any decisions to be made, or the nature of any action to be taken, with respect to any Parent Tax Proceeding; provided, however, that to the extent that any Parent Tax Proceeding is
reasonably likely to give rise to an indemnity obligation of SpinCo or Acquiror under Section 12 hereof, materially increase the Taxes payable by or allocated to any member of the Acquiror Group pursuant to Section 4 or
materially affect the Tax Attributes allocated to any member of the SpinCo Group pursuant to Section 6, (i) Parent shall keep Acquiror informed of all material developments and events relating to any such Parent Tax
Proceeding, (ii) at its own cost and expense, Acquiror shall have the right to participate in (but not to control) the defense of any such Parent Tax Proceeding, and (iii) Parent shall not settle or compromise any such contest without
Acquiror’s written consent, which consent may not be unreasonably withheld, conditioned or delayed. If the Parent Group acknowledges in writing that it is liable for the Taxes at issue in any Parent Tax Proceeding subject to the proviso in the
previous sentence, the rights of Acquiror in such proviso shall not apply to such Parent Tax Proceeding to the extent such Parent Tax Proceeding relates to the Taxes that are the subject of such acknowledgment. 

(c) Distribution Taxes. If any Parent Tax Proceeding relating to Distribution Taxes is reasonably likely to give rise to an indemnity
obligation of the Acquiror as successor to SpinCo or the JV Group under Section 12 hereof, Acquiror and Parent shall exercise joint control over the disposition of such Parent Tax Proceeding (and, for the avoidance of doubt, shall keep each
other informed of all material developments with respect to such Parent Tax Proceeding to the extent the other party is not otherwise informed thereof). Parent shall otherwise have the right to elect to control any Parent Tax Proceeding relating to
Distribution Taxes; provided that Parent shall keep Acquiror informed of all material developments. 

  
 31 

 (d) Acquiror Control. Acquiror shall have the right to control any Tax Proceeding
with respect to SpinCo or any member of the SpinCo Group relating to one or more members of the SpinCo Group and to any Post-Distribution Period (an “Acquiror Tax Proceeding”). Acquiror shall have absolute discretion with respect to
any decisions to be made, or the nature of any action to be taken, with respect to any Acquiror Tax Proceeding; provided, however, that to the extent any such matter is reasonably likely to give rise to a claim for indemnity by SpinCo
or Acquiror against Parent under Section 12(b) of this Agreement, (i) Acquiror shall keep Parent informed of all material developments and events relating to such Acquiror Tax Proceeding, (ii) at its own cost and expense, Parent shall
have the right to participate in (but not to control) the defense of any such Acquiror Tax Proceeding and (iii) Acquiror shall not settle or compromise any such tax claim without the prior written consent of Parent (which shall not be
unreasonably withheld, conditioned or delayed). If the Acquiror Group acknowledges in writing that it is liable for the Taxes at issue in any Acquiror Tax Proceeding subject to the proviso in the previous sentence, the rights of Parent in such
proviso shall not apply to such Acquiror Tax Proceeding to the extent such Acquiror Tax Proceeding relates to the Taxes that are the subject of such acknowledgment. 

SECTION 17. Notices. All notices, requests, permissions, waivers and other communications hereunder will be in
writing and will be deemed to have been duly given (a) when sent, if sent by telecopy, (b) when delivered, if delivered personally to the intended recipient and (c) one Business Day following sending by overnight delivery via an
international courier service and, in each case, addressed to a Company at the following address for such Company, 
 if to Parent or the
Parent Group (or, prior to the Effective Time, to SpinCo or the SpinCo Group), to: 
 McKesson Corporation 

6555 State Hwy 161 
 Irving,
TX 75039 
 Attention: An Nguyen 

Telecopy: 
 with a copy (which
shall not constitute notice) to: 
 Davis Polk & Wardwell LLP 

450 Lexington Avenue 
 New York,
New York 10017 
 Attention: Patrick Sigmon 

Telecopy: 

  
 32 

 if to Acquiror or the Acquiror Group (or, after the Effective Time, to SpinCo or the SpinCo
Group), to: 
 Change Healthcare Inc. 

3055 Lebanon Pike 
 Suite 1000

 Nashville, Tennessee 37214 

Attention: General Counsel 

Telecopy: 
 with a copy (which
shall not constitute notice) to: 
 Ropes & Gray LLP 

Three Embarcadero Center 
 San
Francisco, California 94111-4006 
 Attention: Benjamin J. Rogers 

Telecopy: 
 or to such other address(es) as may
be furnished in writing by any such Company to the other Companies in accordance with the provisions of this Section 17. 

SECTION 18. Costs and Expenses. 

Except as expressly set forth in this Agreement, each party shall bear its own costs and expenses incurred pursuant to this Agreement. For
purposes of this Agreement, costs and expenses shall include, but not be limited to, reasonable attorneys’ fees, accountants’ fees and other related professional fees and disbursements. For the avoidance of doubt, unless otherwise
specifically provided in the Exit Transaction Documents, all liabilities, costs and expenses incurred in connection with this Agreement by or on behalf of SpinCo or any member of the SpinCo Group with respect to actions taken at or prior to the
Effective Time shall be the responsibility of Parent and shall be assumed in full by Parent. 
 SECTION 19. Effectiveness;
Termination and Survival. Except as expressly set forth in this Agreement, as between Parent, SpinCo Acquiror, and the JV Group, this Agreement shall become effective upon the consummation of the Merger. All rights and obligations arising
hereunder shall survive until they are fully effectuated or performed; provided that, notwithstanding anything in this Agreement to the contrary, this Agreement shall remain in effect and its provisions shall survive for one year after the
full period of all applicable statutes of limitation (giving effect to any extension, waiver or mitigation thereof) and, with respect to any claim hereunder initiated prior to the end of such period, until such claim has been satisfied or otherwise
resolved. This agreement shall terminate without any further action at any time before the Closing upon termination of the Merger Agreement. 

SECTION 20. Specific Performance. Each party hereto agrees that irreparable damage would occur if any
provision of this Agreement was not performed in accordance with its specific terms or was otherwise breached. It is accordingly agreed that the parties hereto will be entitled to an injunction or injunctions to prevent breaches of this Agreement
and to enforce 

  
 33 

 
specifically the performance of the terms and provisions of this Agreement without proof of actual Damages, this being in addition to any other remedy to which any such party is entitled at Law
or in equity. Each party hereto further agrees that no other party or any other Person will be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this
Section 20, and each party hereto irrevocably waives any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument. 

SECTION 21. Construction. The descriptive headings herein are inserted for convenience of reference only and
are not intended to be a substantive part of or to affect the meaning or interpretation of this Agreement. Reference to any agreement, document, or instrument means such agreement, document, or instrument as amended or otherwise modified from time
to time in accordance with the terms thereof, and if applicable hereof. References to any document, instrument or agreement (including this Agreement) includes and incorporates all exhibits, disclosure letters, schedules and other attachments
thereto. Unless the context otherwise requires, any references to a “Section” or “Schedule” will be to a Section or Schedule to or of this Agreement. The use of the words “include” or “including” in this
Agreement will be deemed to be followed by the words “without limitation.” The use of the word “covenant” will mean “covenant and agreement.” The use of the words “or,” “either” or “any”
will not be exclusive. Days means calendar days unless specified as Business Days. References to statutes will include all regulations promulgated thereunder, and references to statutes or regulations will be construed to include all statutory and
regulatory provisions consolidating, amending or replacing the statute or regulation, in each case, as of the date hereof. In the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted
jointly by the parties hereto, and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. Except as otherwise expressly provided elsewhere in this
Agreement or any other Exit Transaction Document, any provision herein which contemplates the agreement, approval or consent of, or exercise of any right of, a party, such party may give or withhold such agreement, approval or consent, or exercise
such right, in its sole and absolute discretion, the parties hereby expressly disclaiming any implied duty of good faith and fair dealing or similar concept. 

SECTION 22. Entire Agreement; Amendments and Waivers. 

(a) Entire Agreement. 

(i) This Agreement and the other Transaction Documents, including any related annexes, schedules and exhibits, as well as any
other agreements and documents referred to herein and therein, together constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all prior negotiations, agreements and understandings of
the parties of any nature, whether oral or written, with respect to such subject matter. If there is a conflict between any provision of this Agreement and a provision of any other Transaction Document, the provision of this Agreement will control
unless specifically provided otherwise in this Agreement. 

  
 34 

 (ii) THE PARTIES ACKNOWLEDGE AND AGREE THAT NO REPRESENTATION, WARRANTY,
PROMISE, INDUCEMENT, UNDERSTANDING, COVENANT OR AGREEMENT HAS BEEN MADE OR RELIED UPON BY ANY PARTY OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS AGREEMENT AND IN THE OTHER TRANSACTION DOCUMENTS, INCLUDING ANY CERTIFICATE ISSUED IN ACCORDANCE
THEREWITH. 
 (b) Amendments and Waivers. 

(i) This Agreement may be amended, and any provision of this Agreement may be waived, if and only if such amendment or waiver,
as the case may be, is in writing and signed, in the case of an amendment, by the parties or, in the case of a waiver, by the party against whom the waiver is to be effective. 

(ii) No failure or delay by either party in exercising any right, power or privilege under this Agreement shall operate as a
waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. Except as otherwise provided herein, no action taken pursuant to this Agreement,
including any investigation by or on behalf of any party, shall be deemed to constitute a waiver by the party taking such action of compliance with any representations, warranties, covenants or agreements contained in this Agreement. Any term,
covenant or condition of this Agreement may be waived at any time by the party that is entitled to the benefit thereof, but only by a written notice signed by such party expressly waiving such term, covenant or condition. The waiver by any party of
a breach of any provision hereunder shall not operate or be construed as a waiver of any prior or subsequent breach of the same or any other provision hereunder. 

SECTION 23. Governing Law and Interpretation. The validity, interpretation and
enforcement of this Agreement will be governed by the Laws of the State of Delaware, without regard to the conflict of Laws provisions thereof that would cause the Laws of another state to apply. 

SECTION 24. Dispute Resolution. In the event of any dispute relating to this Agreement, including but not limited to
whether a Tax liability is a liability of the Parent Group, the SpinCo Group or the Acquiror Group, the parties shall work together in good faith to resolve such dispute within thirty (30) days. In the event that such dispute is not resolved,
upon written notice by a party after such thirty (30)-day period, the matter shall be referred to a U.S. Tax counsel or other Tax advisor of recognized national standing (the “Tax Arbiter”)
that will be jointly chosen by the Parent and Acquiror; provided, however, that, if the Parent and the Acquiror do not agree on the selection of the Tax Arbiter after five (5) days of good faith negotiation, the Tax Arbiter shall consist
of a panel of three U.S. Tax counsel or other Tax advisor of recognized national standing with one member chosen by the Parent, one member chosen by the Acquiror, and a third member chosen by mutual agreement of the other members within the
following ten (10)-day period. Each decision of a panel Tax Arbiter shall be made by majority vote of the members. The Tax Arbiter may, in its discretion, obtain the services of any third party necessary to
assist it in resolving the dispute. The Tax Arbiter shall furnish written 

  
 35 

 
notice to the parties to the dispute of its resolution of the dispute as soon as practicable, but in any event no later than ninety (90) days after acceptance of the matter for resolution.
Any such resolution by the Tax Arbiter shall be binding on the parties, and the parties shall take, or cause to be taken, any action necessary to implement such resolution. All fees and expenses of the Tax Arbiter shall be shared equally by the
parties to the dispute. 
 SECTION 25. Counterparts. This Agreement may be executed in multiple counterparts (any one
of which need not contain the signatures of more than one party), each of which will be deemed to be an original but all of which taken together will constitute one and the same agreement. This Agreement, and any amendments hereto, to the extent
signed and delivered by means of a facsimile machine or other electronic transmission, will be treated in all manner and respects as an original agreement and will be considered to have the same binding legal effects as if it were the original
signed version thereof delivered in person. At the request of any party hereto, the other parties hereto will re-execute original forms thereof and deliver them to the requesting party. 

SECTION 26. Successors and Assigns; Third Party Beneficiaries. Except as provided below, this Agreement shall be binding
upon and shall inure only to the benefit of the parties hereto and their respective successors and assigns, by merger, acquisition of assets or otherwise (including but not limited to any successor of a party hereto succeeding to the Tax Attributes
of such party under Applicable Tax Law). This Agreement is not intended to benefit any Person other than the parties hereto and such successors and assigns, and no such other Person shall be a third party beneficiary hereof. Upon the Closing, this
Agreement shall be binding on Acquiror and Acquiror shall be subject to the obligations and restrictions imposed on SpinCo hereunder, including, without limitation, the indemnification obligations of SpinCo under Section 12. 

SECTION 27. Authorization, Etc. Each of the parties hereto hereby represents and warrants that it has the power
and authority to execute, deliver and perform this Agreement, that this Agreement has been duly authorized by all necessary corporate action on the part of such party, that this Agreement constitutes a legal, valid and binding obligation of each
such party, and that the execution, delivery and performance of this Agreement by such party does not contravene or conflict with any provision or law or of its charter or bylaws or any agreement, instrument or order binding on such party. 

SECTION 28. Change in Tax Law. In the event of a change in law or regulation following the date of this Agreement
that is or is believed by any of the parties hereto to be relevant to the interpretation or effect of this Agreement (including any change in any law or regulations expressly referenced herein), the parties will use reasonable best efforts to agree
upon such changes to this Agreement as may be necessary or advisable so as to give effect to the original intent, purposes and effect of such Agreement (based on law and regulation in effect as of the date of signing of this Agreement) as nearly as
practicable without altering the respective rights or obligations of the parties, or otherwise adversely affecting any party in any non-de minimis respect. 

  
 36 

 SECTION 29. Principles. This Agreement is intended to
calculate and allocate certain Tax liabilities of the members of the SpinCo Group and the members of the Parent Group to SpinCo, Parent and Acquiror (and their respective Groups), and any situation or circumstance concerning such calculation and
allocation that is not specifically contemplated by this Agreement shall be dealt with in a manner consistent with the underlying principles of calculation and allocation in this Agreement. 

[SIGNATURE PAGE FOLLOWS] 

  
 37 

 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the day and
year first written above. 
  

			
	 Parent on its own behalf and on behalf of the members of

the Parent Group

		
	By:	 	 /s/ Britt J. Vitalone

	Name:	 	Britt J. Vitalone
	Title:	 	Executive Vice President and Chief Financial Officer
	
	 SpinCo on its own behalf and on behalf of

the members of the SpinCo Group

		
	By:	 	 /s/ Paul A. Smith

	Name:	 	Paul A. Smith
	Title:	 	President and Secretary
	
	 Acquiror on its own behalf and on behalf

of the members of the Acquiror Group

		
	By:	 	 /s/ Loretta A. Cecil

	Name:	 	Loretta A. Cecil
	Title:	 	Executive Vice President, 
General Counsel
	
	CHANGE HEALTHCARE, LLC
		
	By:	 	 /s/ Loretta A. Cecil

	Name:	 	Loretta A. Cecil
	Title:	 	Secretary
	
	 CHANGE HEALTHCARE HOLDINGS,

LLC

		
	By:	 	 /s/ Loretta A. Cecil

	Name:	 	Loretta A. Cecil
	Title:	 	Secretary

  
 [SIGNATURE PAGE TO TAX
MATTERS AGREEMENT]Exhibit 10.1

 

OPEN MARKET SALE AGREEMENT

 

March 13, 2020

 

JEFFERIES
LLC

520 Madison Avenue

New York, New York 10022

 

Ladies and Gentlemen:

 

Aclaris
Therapeutics, Inc., a Delaware corporation (the “Company”), proposes, subject to the terms and conditions
stated herein, to issue and sell from time to time through Jefferies LLC, as sales agent and/or principal (the “Agent”),
shares of the Company’s common stock, par value $0.00001 per share (the “Common Shares”), having an aggregate
offering price of up to $25,000,000 on the terms set forth in this agreement (this “Agreement”).

 

Section 1. DEFINITIONS

 

(a)            Certain
Definitions. For purposes of this Agreement, capitalized terms used herein and not otherwise defined shall have the following
respective meanings:

 

“Affiliate”
of a Person means another Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such first- mentioned Person. The term “control” (including the terms “controlling,”
 “controlled by” and “under common control with”) means the possession, direct or indirect, of the power
to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities,
by contract or otherwise.

 

“Agency Period”
means the period commencing on the date of this Agreement and expiring on the earliest to occur of (x) the date on which the
Agent shall have placed the Maximum Program Amount pursuant to this Agreement and (y) the date this Agreement is terminated
pursuant to Section 7.

 

“Commission”
means the U.S. Securities and Exchange Commission.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder.

 

“Floor Price”
means the minimum price set by the Company in the Issuance Notice below which the Agent shall not sell Shares during the applicable
period set forth in the Issuance Notice, which may be adjusted by the Company at any time during the period set forth in the Issuance
Notice by delivering written notice of such change to the Agent and which in no event shall be less than $1.00 without the prior
written consent of the Agent, which may be withheld in the Agent’s sole discretion.

 

“Issuance
Amount” means the aggregate Sales Price of the Shares to be sold by the Agent pursuant to any Issuance Notice.

 

SM “Open Market Sale Agreement” is a
service mark of Jefferies LLC

 

     

     

    

 

“Issuance
Notice” means a written notice delivered to the Agent by the Company in accordance with this Agreement in the form attached
hereto as Exhibit A that is executed by its Chief Executive Officer, President or Chief Financial Officer.

 

“Issuance
Notice Date” means any Trading Day during the Agency Period that an Issuance Notice is delivered pursuant to Section 3(b)(i).

 

“Issuance
Price” means the Sales Price less the Selling Commission.

 

“Maximum Program
Amount” means Common Shares with an aggregate Sales Price of the lesser of (a) the number or dollar amount of Common
Shares registered under the effective Registration Statement (defined below) pursuant to which the offering is being made, (b) the
number of authorized but unissued Common Shares (less Common Shares issuable upon exercise, conversion or exchange of any outstanding
securities of the Company or otherwise reserved from the Company’s authorized capital stock), (c) the number or dollar
amount of Common Shares permitted to be sold under Form S-3 (including General Instruction I.B.6 thereof, if applicable),
or (d) the number or dollar amount of Common Shares for which the Company has filed a Prospectus (defined below).

 

“Person”
means an individual or a corporation, partnership, limited liability company, trust, incorporated or unincorporated association,
joint venture, joint stock company, governmental authority or other entity of any kind.

 

“Principal
Market” means the Nasdaq Global Select Market or such other national securities exchange on which the Common Shares,
including any Shares, are then listed.

 

“Sales Price”
means the actual sale execution price of each Share placed by the Agent pursuant to this Agreement.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder.

 

“Selling Commission”
means three percent (3%) of the gross proceeds of Shares sold pursuant to this Agreement, or as otherwise agreed between the Company
and the Agent with respect to any Shares sold pursuant to this Agreement.

 

“Settlement
Date” means the second business day following each Trading Day during the period set forth in the Issuance Notice
on which Shares are sold pursuant to this Agreement, when the Company shall deliver to the Agent the amount of Shares sold on
such Trading Day and the Agent shall deliver to the Company the Issuance Price received on such sales.

 

“Shares”
shall mean the Company’s Common Shares issued or issuable pursuant to this Agreement.

 

“Trading Day”
means any day on which the Principal Market is open for trading.

 

    	 	2	 

     

    

 

Section 2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents
and warrants to, and agrees with, the Agent that as of (1) the date of this Agreement, (2) each Issuance Notice Date,
(3) each Settlement Date, (4) each Triggering Event Date and (5) as of each Time of Sale (each of the times referenced
above is referred to herein as a “Representation Date”), except as may be disclosed in the Prospectus (including
any documents incorporated by reference therein and any supplements thereto) on or before a Representation Date:

 

(a)            Registration
Statement. The Company has prepared and filed, or will file on the date of this Agreement, with the Commission a shelf registration
statement on Form S-3 that contains a base prospectus. Such registration statement registers the issuance and sale by
the Company of the Shares under the Securities Act. The Company may file one or more additional registration statements from time
to time that will contain a base prospectus and related prospectus or prospectus supplement, if applicable, with respect to the
Shares. Except where the context otherwise requires, such registration statement(s), including any information deemed to be a part
thereof pursuant to Rule 430B under the Securities Act, including all financial statements, exhibits and schedules thereto
and all documents incorporated or deemed to be incorporated therein by reference pursuant to Item 12 of Form S-3 under the
Securities Act as from time to time amended or supplemented, is herein referred to as the “Registration Statement,”
and the prospectus constituting a part of such registration statement(s), together with any prospectus supplement filed with the
Commission pursuant to Rule 424(b) under the Securities Act relating to a particular issuance of the Shares, including
all documents incorporated or deemed to be incorporated therein by reference pursuant to Item 12 of Form S-3 under the Securities
Act, in each case, as from time to time amended or supplemented, is referred to herein as the “Prospectus,”
except that if any revised prospectus is provided to the Agent by the Company for use in connection with the offering of the Shares
that is not required to be filed by the Company pursuant to Rule 424(b) under the Securities Act, the term “Prospectus”
shall refer to such revised prospectus from and after the time it is first provided to the Agent for such use. The Registration
Statement at the time it originally became effective is herein called the “Original Registration Statement.”
Any registration statement filed pursuant to Rule 462(b) under the Securities Act is herein called the “Rule 462(b) Registration
Statement” and, after such filing, the term “Registration Statement” shall include the Rule 462(b) Registration
Statement.

 

All
references in this Agreement to financial statements and schedules and other information which is “contained,” “included”
or “stated” in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed
to mean and include all such financial statements and schedules and other information which is or is deemed to be incorporated
by reference in or otherwise deemed under the Securities Act to be a part of or included in the Registration Statement or the Prospectus,
as the case may be, as of any specified date; and all references in this Agreement to amendments or supplements to the Registration
Statement or the Prospectus shall be deemed to mean and include, without limitation, the filing of any document under the Exchange
Act which is or is deemed to be incorporated by reference in or otherwise deemed under the Securities Act to be a part of or included
in the Registration Statement or the Prospectus, as the case may be, as of any specified date. The Company’s obligations
under this Agreement to furnish, provide, deliver or make available (and all other references of like import) copies of any report
or statement shall be deemed satisfied if the same is filed with the Commission through its Electronic Data Gathering, Analysis
and Retrieval system (“EDGAR”) (except that, upon the Agent’s request, the Company shall provide a signed
and printed copy of the Registration Statement and of any signed amendment or supplement thereto).

 

    	 	3	 

     

    

 

At the time the Registration
Statement was or will be originally declared effective and at the time the Company’s most recent annual report on Form 10-K
was filed with the Commission, if later, the Company met the then-applicable requirements for use of Form S-3 under the Securities
Act. During the Agency Period, each time the Company files an annual report on Form 10-K the Company will meet the then-applicable
requirements for use of Form S-3 under the Securities Act.

 

(b)            Compliance
with Registration Requirements. The Original Registration Statement has or will be declared effective by the Commission, and
any Rule 462(b) Registration Statement will be automatically effective under the Securities Act. The Company has complied
to the Commission’s satisfaction with all requests of the Commission for additional or supplemental information. No stop
order suspending the effectiveness of the Registration Statement or any Rule 462(b) Registration Statement is in effect
and no proceedings for such purpose have been instituted or are pending or, to the knowledge of the Company, contemplated or threatened
by the Commission.

 

The Prospectus will comply or, when filed,
complied, as applicable, in all material respects with the Securities Act and, if filed with the Commission through EDGAR (except
as may be permitted by Regulation S-T under the Securities Act), was identical to the copy thereof delivered to the Agent
for use in connection with the issuance and sale of the Shares. Each of the Registration Statement, any Rule 462(b) Registration
Statement and any post-effective amendment thereto, at the time it became effective and at all subsequent times, complied and will
comply in all material respects with the Securities Act and did not and will not contain any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. As of
the date of this Agreement, the Prospectus and any Free Writing Prospectus (as defined below) considered together (collectively,
the “Time of Sale Information”) did not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. The
Prospectus, as amended or supplemented, as of its date and at all subsequent times, did not and will not contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The representations and warranties set forth in the three immediately preceding sentences
do not apply to statements in or omissions from the Registration Statement, any Rule 462(b) Registration Statement, or
any post-effective amendment thereto, or the Prospectus, or any amendments or supplements thereto, made in reliance upon and in
conformity with information relating to the Agent furnished to the Company in writing by the Agent expressly for use therein, it
being understood and agreed that the only such information furnished by the Agent to the Company consists of the information described
in Section 6 below. There are no contracts or other documents required to be described in the Prospectus or to be filed
as exhibits to the Registration Statement which have not been described or filed as required. The Registration Statement and the
offer and sale of the Shares as contemplated hereby meet the requirements of Rule 415 under the Securities Act and comply
in all material respects with said rule.

 

    	 	4	 

     

    

 

(c)            Ineligible
Issuer Status. The Company is not an “ineligible issuer” in connection with the offering of the Shares pursuant
to Rules 164, 405 and 433 under the Securities Act. Any Free Writing Prospectus that the Company is required to file pursuant
to Rule 433(d) under the Securities Act has been, or will be, filed with the Commission in accordance with the requirements
of the Securities Act. Each Free Writing Prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) under
the Securities Act or that was prepared by or behalf of or used or referred to by the Company complies or will comply in all material
respects with the requirements of Rule 433 under the Securities Act including timely filing with the Commission or retention
where required and legending, and each such Free Writing Prospectus, as of its issue date and at all subsequent times through the
completion of the issuance and sale of the Shares did not, does not and will not include any information that conflicted, conflicts
with or will conflict with the information contained in the Registration Statement or the Prospectus, including any document incorporated
by reference therein. Except for the Free Writing Prospectuses, if any, and electronic road shows, if any, furnished to you before
first use, the Company has not prepared, used or referred to, and will not, without your prior consent, prepare, use or refer to,
any Free Writing Prospectus.

 

(d)            Incorporated
Documents. The documents incorporated or deemed to be incorporated by reference in the Registration Statement and the Prospectus,
at the time they were filed with the Commission, complied in all material respects with the requirements of the Exchange Act, as
applicable, and, when read together with the other information in the Prospectus, do not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

 

(e)            Exchange
Act Compliance. The documents incorporated or deemed to be incorporated by reference in the Prospectus, at the time they were
or hereafter are filed with the Commission, and any Free Writing Prospectus or amendment or supplement thereto complied and will
comply in all material respects with the requirements of the Exchange Act, and, when read together with the other information in
the Prospectus, at the time the Registration Statement and any amendments thereto become effective and at each Time of Sale (as
defined below), as the case may be, will not contain an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the fact required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

 

(f)             Statistical
and Market-Related Data. The statistical, demographic and market-related data included in the Registration Statement and the
Prospectus are based on or derived from sources that the Company believes to be reliable and accurate or represent the Company’s
good faith estimates that are made on the basis of data derived from such sources.

 

    	 	5	 

     

    

 

(g)            Disclosure
Controls and Procedures; Deficiencies in or Changes to Internal Control Over Financial Reporting. The Company has established
and maintains disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), which (i) are
designed to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to
the Company’s principal executive officer and its principal financial officer by others within those entities, particularly
during the periods in which the periodic reports required under the Exchange Act are being prepared; (ii) have been evaluated
by management of the Company for effectiveness as of the end of the Company’s most recent fiscal quarter; and (iii) are
effective in all material respects to perform the functions for which they were established. Based on the most recent evaluation
of its disclosure controls and procedures, the Company is not aware of (i) any significant deficiencies or material weaknesses
in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s
ability to record, process, summarize and report financial information; or (ii) any fraud, whether or not material, that involves
management or other employees who have a significant role in the Company’s internal control over financial reporting. The
Company is not aware of any change in its internal control over financial reporting that has occurred during its most recent fiscal
quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial
reporting.

 

(h)            This
Agreement. This Agreement has been duly authorized, executed and delivered by, and is a valid and binding agreement of, the
Company, enforceable in accordance with its terms, except as rights to indemnification hereunder may be limited by applicable law
and except as the enforcement hereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights and remedies of creditors or by general equitable principles.

 

(i)             Authorization
of the Shares. The Shares have been duly authorized for issuance and sale pursuant to this Agreement and, when issued and delivered
by the Company against payment therefor pursuant to this Agreement, will be validly issued, fully paid and nonassessable, and the
issuance and sale of the Shares is not subject to any preemptive rights, rights of first refusal or other similar rights to subscribe
for or purchase the Shares.

 

(j)             No
Applicable Registration or Other Similar Rights. There are no persons with registration or other similar rights to have any
equity or debt securities registered for sale under the Registration Statement or included in the offering contemplated by this
Agreement, except for such rights as have been duly waived.

 

(k)            No
Material Adverse Change. Except as otherwise disclosed in the Registration Statement and Prospectus, subsequent to the respective
dates as of which information is given in the Registration Statement and Prospectus: (i) there has been no material adverse
change, or any development that could reasonably be expected to result in a material adverse change, in the condition, financial
or otherwise, or in the earnings, business, operations or prospects, whether or not arising from transactions in the ordinary course
of business, of the Company and its subsidiaries, considered as one entity (any such change is called a “Material Adverse
Change”); (ii) the Company and its subsidiaries, considered as one entity, have not incurred any material liability
or obligation, indirect, direct or contingent, not in the ordinary course of business nor entered into any material transaction
or agreement not in the ordinary course of business: and (iii) there has been no dividend or distribution of any kind declared,
paid or made by the Company or, except for dividends paid to the Company or other subsidiaries, by any of its subsidiaries on any
class of capital stock or repurchase or redemption by the Company or any of its subsidiaries of any class of capital stock.

 

    	 	6	 

     

    

 

(l)             Independent
Accountants. The independent registered public accounting firms which have expressed their opinions with respect to the financial
statements (which term as used in this Agreement includes the related notes thereto) filed with the Commission or incorporated
by reference as a part of the Registration Statement and included in the Prospectus are (i) independent public or certified
public accountants as required by the Securities Act and the Exchange Act, (ii) in compliance with the applicable requirements
relating to the qualification of accountants under Rule 2-01 of Regulation S-X; and (iii) registered public accounting
firms as defined by the Public Company Accounting Oversight Board (the “PCAOB”) whose registration has not been
suspended or revoked and who has not requested such registration to be withdrawn.

 

(m)           Preparation
of the Financial Statements. The financial statements filed with the Commission as a part of or incorporated by reference in
the Registration Statement and included in the Prospectus present fairly, in all material respects, the consolidated financial
position of the Company and its subsidiaries as of and at the dates indicated and the results of their operations and cash flows
for the periods specified. Such financial statements have been prepared in conformity with generally accepted accounting principles
as applied in the United States applied on a consistent basis throughout the periods involved, except as may be expressly stated
in the related notes thereto and except in the case of unaudited financial statements, which are subject to normal and recurring
year-end adjustments and do not contain certain footnotes as permitted by the applicable rules of the Commission. No other
financial statements or supporting schedules are required to be included in or incorporated in the Registration Statement or the
Prospectus. The financial data set forth or incorporated in the Prospectus under the caption “Selected Consolidated Financial
Data”, if applicable, fairly present, in all material respects, the information set forth therein on a basis consistent with
that of the audited financial statements contained, incorporated or deemed to be incorporated in the Registration Statement and
the Prospectus. To the Company’s knowledge, no person who has been suspended or barred from being associated with a registered
public accounting firm, or who has failed to comply with any sanction pursuant to Rule 5300 promulgated by the PCAOB, has
participated in or otherwise aided the preparation of, or audited, the financial statements, supporting schedules or other financial
data filed with the Commission as a part of the Registration Statement and included in the Prospectus.

 

(n)            Company’s
Accounting System. The Company and each of its subsidiaries make and keep accurate books and records and maintain a system
of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance
with management’s general or specific authorization; (ii)  transactions are recorded as necessary to permit preparation
of financial statements in conformity with generally accepted accounting principles as applied in the United States and to maintain
accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and
appropriate action is taken with respect to any differences.

 

(o)            Incorporation
and Good Standing of the Company. The Company has been duly incorporated and is validly existing as a corporation in
good standing under the laws of the State of Delaware and has the power and authority (corporate or other) to own, lease and operate
its properties and to conduct its business as described in the Prospectus and to enter into and perform its obligations under this
Agreement. The Company is duly qualified as a foreign corporation to transact business and is in good standing in each jurisdiction
in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business,
except where the failure to so qualify or to be in good standing, individually or in the aggregate, would not reasonably be expected
to result in a Material Adverse Change.

 

    	 	7	 

     

    

 

(p)            Incorporation
and Good Standing of the Company’s Subsidiaries. Each subsidiary of the Company has been duly incorporated or organized,
as the case may be, and is validly existing as a corporation, partnership or limited liability company, as applicable, in good
standing under the laws of the jurisdiction of its incorporation or organization and has the power and authority (corporate or
other) to own, lease and operate its properties and to conduct its business as described in the Prospectus and is duly qualified
as a foreign corporation, partnership or limited liability company, as applicable, to transact business and is in good standing
in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure to so qualify or be in good standing would not reasonably be expected, individually
or in the aggregate, to result in a Material Adverse Change. All of the issued and outstanding capital stock or other equity or
ownership interests of each subsidiary have been duly authorized and validly issued, are fully paid and nonassessable and are owned
by the Company, directly or through subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance
or adverse claim. The Company does not own or control, directly or indirectly, any corporation, association or other entity other
than (i) the subsidiaries listed on Exhibit 21.1 to the Company’s most recent annual report on Form 10-K and
(ii) such other entities omitted from Exhibit 21.1 which, when such omitted entities are considered in the aggregate
as a single subsidiary, would not constitute a “significant subsidiary” within the meaning of Rule 1-02(w) of
Regulation S-X.

 

(q)            Capitalization
and Other Capital Stock Matters. The authorized, issued and outstanding capital stock of the Company is as set forth in the
Prospectus under the caption “Description of Capital Stock” (other than for subsequent issuances, if any, pursuant
to employee benefit plans described in the Prospectus or upon the exercise of outstanding options or warrants, in each case as
described in the Prospectus). The Common Shares (including the Shares) conform in all material respects to the description thereof
contained in the Prospectus. All of the issued and outstanding Common Shares have been duly authorized and validly issued, are
fully paid and nonassessable and have been issued in compliance with federal and state securities laws. None of the outstanding
Common Shares were issued in violation of any preemptive rights, rights of first refusal or other similar rights to subscribe for
or purchase securities of the Company that have not been duly waived or satisfied. There are no authorized or outstanding options,
warrants, preemptive rights, rights of first refusal or other rights to purchase, or equity or debt securities convertible into
or exchangeable or exercisable for, any capital stock of the Company or any of its subsidiaries other than those accurately described
in all material respects in the Prospectus. The description of the Company’s stock option, stock bonus and other stock plans
or arrangements, and the options or other rights granted thereunder, set forth in the Prospectus accurately and fairly presents
in all material respects the information required to be shown with respect to such plans, arrangements, options and rights.

 

(r)             Stock
Exchange Listing. The Company is subject to and in compliance in all material respects with the reporting requirements of Section 13
or Section 15(d) of the Exchange Act. The Common Shares are registered pursuant to Section 12(b) of the Exchange
Act and are listed on the Principal Market, and the Company has taken no action designed to, or reasonably likely to have the effect
of, terminating the registration of the Common Shares under the Exchange Act or delisting the Common Shares from the Principal
Market, nor has the Company received any notification that the Commission or the Principal Market is contemplating terminating
such registration or listing.

 

    	 	8	 

     

    

 

(s)            Non-Contravention
of Existing Instruments; No Further Authorizations or Approvals Required. Neither the Company nor any of its subsidiaries is
in violation of its charter or by-laws, partnership agreement or operating agreement or similar organizational document, as applicable,
or is in default (or, with the giving of notice or lapse of time, would be in default) (“Default”) under any
indenture, mortgage, loan or credit agreement, note, contract, franchise, lease or other instrument to which the Company or any
of its subsidiaries is a party or by which it or any of them may be bound (including, without limitation, any credit agreement,
indenture, pledge agreement, security agreement or other instrument or agreement evidencing, guaranteeing, securing or relating
to indebtedness of the Company or any of its subsidiaries ), or to which any of the property or assets of the Company or any
of its subsidiaries is subject (each, an “Existing Instrument”), except for such Defaults as would not, individually
or in the aggregate, result in a Material Adverse Change. The Company’s execution, delivery and performance of this Agreement,
consummation of the transactions contemplated hereby and by each applicable Prospectus and the issuance and sale of the Shares
(i) have been duly authorized by all necessary corporate action and will not result in any violation of the provisions of
the charter or by-laws, partnership agreement or operating agreement or similar organizational document of the Company or any subsidiary,
as applicable; (ii) will not conflict with or constitute a breach of, or Default under, or result in the creation or imposition
of any lien, charge or encumbrance upon any property or assets of the Company or any of its subsidiaries pursuant to, or require
the consent of any other party to, any Existing Instrument, except for such conflicts, breaches, Defaults, liens, charges or encumbrances
as would not, individually or in the aggregate, result in a Material Adverse Change; and (iii) will not result in any violation
of any law, administrative regulation or administrative or court decree applicable to the Company or any subsidiary, except as
would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Change. No consent, approval,
authorization or other order of, or registration or filing with, any court or other governmental or regulatory authority or agency,
is required for the Company’s execution, delivery and performance of this Agreement and consummation of the transactions
contemplated hereby and by the Prospectus, except (i) such as have been obtained or made by the Company and are in full force
and effect under the Securities Act, applicable state securities or blue sky laws and from the Financial Industry Regulatory Authority
(“FINRA”).

 

(t)             No
Material Actions or Proceedings. Except as otherwise disclosed in the Prospectus, there are no legal or governmental actions,
suits or proceedings pending or, to the Company’s knowledge, threatened (i) against or affecting the Company or any
of its subsidiaries; (ii) which have as the subject thereof any officer or director of, or property owned or leased by, the
Company or any of its subsidiaries; or (iii) relating to environmental or discrimination matters, where in any such case (A) there
is a reasonable possibility that such action, suit or proceeding might be determined adversely to the Company, such subsidiary
or such officer or director, (B) any such action, suit or proceeding, if so determined adversely, would reasonably be expected
to result in a Material Adverse Change or adversely affect the consummation of the transactions contemplated by this Agreement
or (C) any such action, suit or proceeding is or would be material in the context of the sale of Shares. Except as otherwise
disclosed in the Prospectus, no material labor dispute with the employees of the Company or any of its subsidiaries, or with the
employees of any principal supplier, manufacturer, customer or contractor of the Company, exists or, to the Company’s knowledge,
is threatened or imminent.

 

    	 	9	 

     

    

 

(u)            Intellectual
Property Rights. The Company and its subsidiaries own or possess the valid right to use all (i) patents, patent applications,
trademarks, trademark registrations, service marks, service mark registrations, Internet domain name registrations, copyrights,
copyright registrations, licenses, trade secret rights (“Intellectual Property Rights”) and (ii) inventions,
software, works of authorships, trademarks, service marks, trade names, databases, formulae, know how, Internet domain names
and other intellectual property (including trade secrets and other unpatented and/or unpatentable proprietary confidential information,
systems, or procedures) (collectively, “Intellectual Property Assets”) necessary to conduct their respective
businesses described in the Prospectus, except where the failure to own or possess the valid right to use the Intellectual Property
Assets would not, individually or in the aggregate, result in a Material Adverse Change. The Company and its subsidiaries have
not received any opinion from their legal counsel concluding that any activities of their respective businesses infringe, misappropriate,
or otherwise violate, valid and enforceable Intellectual Property Rights of any other person. The Company and its subsidiaries
have not received written notice of any challenge, which is to their knowledge still pending, by any other person to the rights
of the Company and its subsidiaries with respect to any Intellectual Property Rights or Intellectual Property Assets owned or used
by the Company or its subsidiaries that would reasonably be expected to result in a Material Adverse Change. To the knowledge of
the Company, the Company and its subsidiaries’ respective businesses as now conducted do not give rise to any infringement
of, any misappropriation of, or other violation of, any valid and enforceable Intellectual Property Rights of any other person.
All licenses for the use of the Intellectual Property Rights described in the Prospectus are valid, binding upon, and enforceable
by or against the parties thereto in accordance to its terms. The Company has complied in all material respects with, and is not
in breach nor has received any asserted or threatened claim of breach of any Intellectual Property Rights license, and the Company
has no knowledge of any breach or anticipated breach by any other person to any Intellectual Property Rights license. Except as
described in the Prospectus, no claim has been made against the Company alleging the infringement by the Company of any patent,
trademark, service mark, trade name, copyright, trade secret, license in or other intellectual property right or franchise right
of any person that would reasonably be expected to result in a Material Adverse Change. The Company has taken all reasonable steps
to protect, maintain and safeguard its Intellectual Property Rights, including the execution of appropriate nondisclosure and confidentiality
agreements. The consummation of the transactions contemplated by this Agreement will not result in the loss or impairment of or
payment of any additional amounts with respect to, nor require the consent of any other person in respect of, the Company’s
right to own, use, or hold for use any of the Intellectual Property Rights as owned, used or held for use in the conduct of the
business as currently conducted.

 

(v)            All
Necessary Permits, etc. Except as otherwise disclosed in the Prospectus, the Company and each subsidiary possess such
valid and current certificates, authorizations or permits issued by the appropriate state, federal or foreign regulatory agencies
or bodies necessary for the ownership or lease of its properties or the conduct of its businesses (“Permits”)
as described in the Registration, Statement and the Prospectus, or to permit all clinical and nonclinical studies and trials conducted
by or on behalf of the Company and its subsidiaries, except where failure to so possess would not reasonably be expected to, individually
or in the aggregate, result in a Material Adverse Change; and neither the Company nor any subsidiary has received, or has
any reason to believe that it will receive, any notice of proceedings relating to the revocation or modification of, or non-compliance
with, any such certificate, authorization or permit which, singly or in the aggregate, if the subject of an unfavorable decision,
ruling or finding, could result in a Material Adverse Change.

 

    	 	10	 

     

    

 

(w)           Title
to Properties. The Company and its subsidiaries have good and marketable title to all of the real and personal property and
other assets reflected as owned in the financial statements referred to in Section 2(m) above (or elsewhere in the Registration
Statement or the Prospectus), in each case free and clear of any security interests, mortgages, liens, encumbrances, equities,
adverse claims and other defects, except such as would not reasonably be expected, individually or in the aggregate, to have a
Material Adverse Change. The real property, improvements, equipment and personal property held under lease by the Company or any
of its subsidiaries are held under valid and enforceable leases, with such exceptions as are not material and do not materially
interfere with the use made or proposed to be made of such real property, improvements, equipment or personal property by the Company
or such subsidiary.

 

(x)            Tax
Law Compliance. The Company and its consolidated subsidiaries have filed all necessary federal, state and foreign income, property
and franchise tax returns (or have properly requested extensions thereof) and have paid all taxes required to be paid by any of
them and, if due and payable, any related or similar assessment, fine or penalty levied against any of them except as may be being
contested in good faith and by appropriate proceedings. The Company has made adequate charges, accruals and reserves in the applicable
financial statements referred to in Section 2(m) above in respect of all federal, state and foreign income, property
and franchise taxes for all periods as to which the tax liability of the Company or any of its consolidated subsidiaries has not
been finally determined.

 

(y)            Company
Not an “Investment Company.” The Company is not, and after receipt of payment for the Shares will not be, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended (the “Investment Company Act”).

 

(z)            Insurance.
Except as otherwise disclosed in the Prospectus, each of the Company and its subsidiaries are insured by recognized, financially
sound and reputable institutions with policies in such amounts and with such deductibles and covering such risks as are generally
deemed adequate and customary for their businesses including, but not limited to, policies covering real and personal property
owned or leased by the Company and its subsidiaries against theft, damage, destruction, acts of vandalism and earthquakes and policies
covering the Company and its subsidiaries for product liability claims and clinical trial liability claims. The Company has no
reason to believe that it or any subsidiary will not be able (i) to renew its existing insurance coverage as and when such
policies expire; or (ii) to obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct
its business as now conducted and at a cost that would not result in a Material Adverse Change. Neither of the Company nor any
subsidiary has been denied any insurance coverage which it has sought or for which it has applied.

 

    	 	11	 

     

    

 

(aa)          No
Price Stabilization or Manipulation; Compliance with Regulation M. Neither the Company nor any of its subsidiaries has taken,
directly or indirectly, any action designed to or that would reasonably be expected to cause or result in stabilization or manipulation
of the price of the Common Shares or any other “reference security” (as defined in Rule 100 of Regulation M under
the Exchange Act (“Regulation M”)), whether to facilitate the sale or resale of the Shares or otherwise, and
has taken no action which would directly or indirectly violate Regulation M. The Company acknowledges that the Agent may engage
in passive market making transactions in the Shares on the Principal Market in accordance with Regulation M. The Common Shares
are “actively traded securities” (as defined in Regulation M).

 

(bb)          Related
Party Transactions. There are no business relationships or related-party transactions involving the Company or any of its subsidiaries
or any other person required to be described in the Prospectus which have not been described as required.

 

(cc)          FINRA
Matters. All of the information provided to the Agent or to counsel for the Agent by the Company, its officers and directors
and the holders of any securities (debt or equity) or options to acquire any securities of the Company in connection with letters,
filings or other supplemental information provided to FINRA pursuant to FINRA Rules 5110, 5190 and 5121 is true, complete
and correct. The Company meets the requirements for use of Form S-3 under the Securities Act specified in FINRA Rule 5110(b)(7)(C)(i).
Neither the Company nor any of its Affiliates directly, or indirectly through one or more intermediaries, controls, or is controlled
by, or is under common control with, or is a person associated with any member firm of FINRA.

 

(dd)          No
Unlawful Contributions or Other Payments. Except as otherwise disclosed in the Prospectus, neither the Company nor any of its
subsidiaries nor, to the Company’s knowledge, any employee or agent of the Company or any subsidiary, has made any contribution
or other payment to any official of, or candidate for, any federal, state or foreign office in violation of any law or of the character
required to be disclosed in the Registration Statement and the Prospectus.

 

(ee)          Compliance
with Environmental Laws. Except as otherwise described in the Prospectus, and except as would not, individually or in the aggregate,
result in a Material Adverse Change (i) neither the Company nor any of its subsidiaries is in violation of any federal, state,
local or foreign law or regulation relating to pollution or protection of human health or the environment (including, without limitation,
ambient air, surface water, groundwater, land surface or subsurface strata) or wildlife, including without limitation, laws and
regulations relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, wastes,
toxic substances, hazardous substances, petroleum and petroleum products (collectively, “Materials of Environmental Concern”),
or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of
Materials of Environmental Concern (collectively, “Environmental Laws”), which violation includes, but is not
limited to, noncompliance with any permits or other governmental authorizations required for the operation of the business of the
Company or its subsidiaries under applicable Environmental Laws, or noncompliance with the terms and conditions thereof, nor has
the Company or any of its subsidiaries received any written communication, whether from a governmental authority, citizens group,
employee or otherwise, that alleges that the Company or any of its subsidiaries is in violation of any Environmental Law; (ii) there
is no claim, action or cause of action filed with a court or governmental authority, no investigation with respect to which the
Company has received written notice, and no written notice by any person or entity alleging potential liability for investigatory
costs, cleanup costs, governmental responses costs, natural resources damages, property damages, personal injuries, attorneys’
fees or penalties arising out of, based on or resulting from the presence, or release into the environment, of any Material of
Environmental Concern at any location owned, leased or operated by the Company or any of its subsidiaries, now or in the past (collectively,
 “Environmental Claims”), pending or, to the Company’s knowledge, threatened against the Company or any
of its subsidiaries or any person or entity whose liability for any Environmental Claim the Company or any of its subsidiaries
has retained or assumed either contractually or by operation of law; and (iii) to the Company’s knowledge, there are
no past or present actions, activities, circumstances, conditions, events or incidents, including, without limitation, the release,
emission, discharge, presence or disposal of any Material of Environmental Concern, that reasonably could result in a violation
of any Environmental Law or form the basis of a potential Environmental Claim against the Company or any of its subsidiaries or
against any person or entity whose liability for any Environmental Claim the Company or any of its subsidiaries has retained or
assumed either contractually or by operation of law.

 

    	 	12	 

     

    

 

(ff)           ERISA
Compliance. The Company and its subsidiaries and any “employee benefit plan” (as defined under the Employee Retirement
Income Security Act of 1974, as amended, and the regulations and published interpretations thereunder (collectively, “ERISA”))
established or maintained by the Company, its subsidiaries or their “ERISA Affiliates” (as defined below), are
in compliance in all material respects with ERISA. “ERISA Affiliate” means, with respect to the Company or any of its
subsidiaries, any member of any group of organizations described in Sections 414(b), (c), (m) or (o) of the Internal
Revenue Code of 1986, as amended, and the regulations and published interpretations thereunder (the “Code”)
of which the Company or such subsidiary is a member. No “reportable event” (as defined under ERISA) has occurred or
is reasonably expected to occur with respect to any “employee benefit plan” established or maintained by the Company,
its subsidiaries or any of their ERISA Affiliates. Except as would not reasonably be expected, individually or in the aggregate,
to result in a Material Adverse Change, no “employee benefit plan” established or maintained by the Company, its subsidiaries
or any of their ERISA Affiliates, if such “employee benefit plan” were terminated, would have any “amount of
unfunded benefit liabilities” (as defined under ERISA). Neither the Company, its subsidiaries nor any of their ERISA Affiliates
has incurred or reasonably expects to incur any liability under (i) Title IV of ERISA with respect to termination of, or withdrawal
from, any “employee benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of the Code. Each employee benefit
plan established or maintained by the Company, its subsidiaries or any of their ERISA Affiliates that is intended to be qualified
under Section 401(a) of the Code is so qualified and nothing has occurred, whether by action or failure to act, which
would cause the loss of such qualification.

 

(gg)         Brokers.
Except for the Agent, there is no broker, finder or other party that is entitled to receive from the Company any brokerage or finder’s
fee or other fee or commission as a result of any transactions contemplated by this Agreement.

 

(hh)          No
Outstanding Loans or Other Extensions of Credit. Except as described in the Prospectus, there are no outstanding loans, advances
(except normal advances for business expenses in the ordinary course of business) or guarantees or indebtedness by the Company
to or for the benefit of any of the officers or directors of the Company or any of the immediate family members of any of them.

 

    	 	13	 

     

    

 

(ii)            Compliance
with Laws. The Company has not been advised, and has no reason to believe, that it and each of its subsidiaries are not conducting
business in compliance with all applicable laws, rules and regulations of the jurisdictions in which it is conducting business,
except where failure to be so in compliance would not be reasonably expected to result in a Material Adverse Change.

 

(jj)            Dividend
Restrictions. Except as disclosed in the Prospectus, no subsidiary of the Company is prohibited or restricted, directly or
indirectly, from paying dividends to the Company, or from making any other distribution with respect to such subsidiary’s
equity securities or from repaying to the Company or any other subsidiary of the Company any amounts that may from time to time
become due under any loans or advances to such subsidiary from the Company or from transferring any property or assets to the Company
or to any other subsidiary.

 

(kk)          Anti-Corruption
and Anti-Bribery Laws. Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company, any director,
officer, agent, employee, affiliate or other person acting on behalf of the Company or any of its subsidiaries has, in the course
of its actions for, or on behalf of, the Company or any of its subsidiaries (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made or taken any act in
furtherance of an offer, promise, or authorization of any direct or indirect unlawful payment or benefit to any foreign or domestic
government official or employee, including of any government-owned or controlled entity or public international organization, or
any political party, party official, or candidate for political office; (iii) violated or is in violation of any provision
of the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), the UK Bribery Act 2010, or any
other applicable anti-bribery or anti-corruption law; or (iv) made, offered, authorized, requested, or taken an act in furtherance
of any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment or benefit. The Company and its subsidiaries
and, to the knowledge of the Company, the Company’s affiliates have conducted their respective businesses in compliance with
the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue
to ensure, continued compliance therewith.

 

(ll)            Money
Laundering Laws. The operations of the Company and its subsidiaries are, and have been conducted at all times, in compliance
with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related
or similar applicable rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively,
the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws
is pending or, to the knowledge of the Company, threatened.

 

    	 	14	 

     

    

 

(mm)        Clinical
Studies. The preclinical tests and clinical trials, and other studies (collectively, “studies”) conducted
by or on behalf of or sponsored by the Company or any of its subsidiaries or in which the Company or any of its subsidiaries or
their products or product candidates have participated were and, if still pending, are being conducted in all material respects
in accordance with the protocols, procedures and controls designed and approved for such studies and all applicable laws and regulations,
including, without limitation, 21 C.F.R. Parts 50, 54, 56, 58, 312 and 812; each description of the results of such studies is
accurate and complete in all material respects and fairly presents the data derived from such studies, and the Company and its
subsidiaries have no knowledge of any other studies the results of which are inconsistent with, or otherwise call into question,
the results described or referred to in the Registration Statement or the Prospectus; no investigational new drug application filed
by or on behalf of the Company or any of its subsidiaries with the U.S. Food and Drug Administration (“FDA”)
has been terminated or suspended by the FDA, and neither the FDA nor any applicable foreign regulatory agency has commenced, or,
to the knowledge of the Company, threatened to initiate, any action to place a clinical hold order on, or otherwise terminate,
delay or suspend, any proposed or ongoing studies conducted or proposed to be conducted by or on behalf of the Company or any of
its subsidiaries; the Company and its subsidiaries have made all such filings and hold all such Permits for the operation of its
business required by the FDA or any committee thereof or from any other U.S. or foreign government or drug or medical device regulatory
agency, or health care facility Institutional Review Board (collectively, the “Regulatory Agencies”); and the
Company and its subsidiaries have fulfilled and performed all of their material obligations with respect to such Permits, and no
event has occurred which allows, or after notice or lapse of time would allow, revocation or termination thereof or results in
any other material impairment of the rights of the holder of any such Permit.

 

(nn)         Compliance
with Health Care Laws. The Company and its subsidiaries are, and at all times have been, in compliance in all respects
with all applicable Health Care Laws, and have not engaged in activities which are, as applicable, cause for false claims
liability, civil penalties, or mandatory or permissive exclusion from Medicare, Medicaid, or any other state health care
program or federal health care program, except as would not reasonably be expected, individually or in the aggregate, to have
a Material Adverse Change. For purposes of this Agreement, “Health Care Laws” means: (i) the Federal
Food, Drug, and Cosmetic Act and the regulations promulgated thereunder; (ii) all applicable federal, state, local and
all applicable foreign health care related fraud and abuse laws, including, without limitation, the U.S. Anti-Kickback
Statute (42 U.S.C. Section 1320a-7b(b)), the U.S. Physician Payments Sunshine Act (42 U.S.C. § 1320a-7h), the
U.S. Civil False Claims Act (31 U.S.C. Section 3729 et seq.), the criminal False Claims Law (42 U.S.C. §
1320a-7b(a)), all criminal laws relating to health care fraud and abuse, including but not limited to 18 U.S.C. Sections 286
and 287, and the health care fraud criminal provisions under the U.S. Health Insurance Portability and Accountability Act of
1996 (42 U.S.C. Section 1320d et seq.), the exclusions law (42 U.S.C. § 1320a-7), the civil monetary penalties law
(42 U.S.C. § 1320a-7a), HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act (42
U.S.C. Section 17921 et seq.)  (“HIPAA”), and the regulations promulgated pursuant to such statutes; (iii) Medicare (Title
XVIII of the Social Security Act); (iv) Medicaid (Title XIX of the Social Security Act); and (v) any and all other
applicable health care laws and regulations. Neither the Company nor any of its subsidiaries have received notice of any
claim, action, suit, proceeding, hearing, enforcement, audit, investigation, arbitration or other action from any court or
arbitrator or governmental or regulatory authority or third party alleging that any product operation or activity is in
material violation of any Health Care Laws, and, to the Company’s knowledge, no such claim, action, suit, proceeding,
hearing, enforcement, audit, investigation, arbitration or other action is threatened. Neither the Company nor any of its
subsidiaries are a party to or have any ongoing reporting obligations pursuant to any corporate integrity agreements,
deferred prosecution agreements, monitoring agreements, consent decrees, settlement orders, plans of correction or similar
agreements with or imposed by any Regulatory Agency or other governmental or regulatory authority. Additionally, neither the
Company nor any of its subsidiaries, nor any of their respective employees, officers or directors has been excluded,
suspended or debarred from participation in any U.S. federal health care program or human clinical research or, to the
knowledge of the Company, is subject to a governmental inquiry, investigation, proceeding, or other similar action that could
reasonably be expected to result in debarment, suspension, or exclusion.

 

    	 	15	 

     

    

 

(oo)         [Reserved.]

 

(pp)         Sanctions.
Neither the Company nor any of its subsidiaries, directors, officers, or employees, nor, to the knowledge of the Company, after
due inquiry, any agent, affiliate or other person acting on behalf of the Company or any of its subsidiaries is currently the subject
or the target of any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury
(“OFAC”) or the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s
Treasury of the United Kingdom, or other relevant sanctions authority (collectively, “Sanctions”); nor is the
Company or any of its subsidiaries located, organized or resident in a country or territory that is the subject or the target of
Sanctions, including, without limitation, Crimea, Cuba, Iran, North Korea, and Syria; and the Company will not directly or
indirectly use the proceeds of this offering, or lend, contribute or otherwise make available such proceeds to any subsidiary,
or any joint venture partner or other person or entity, for the purpose of financing the activities of or business with any person,
or in any country or territory, that at the time of such financing, is the subject or the target of Sanctions or in any other manner
that will result in a violation by any person (including any person participating in the transaction whether as underwriter, advisor,
investor or otherwise) of applicable Sanctions. For the past five years, the Company and its subsidiaries have not knowingly engaged
in and are not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction
is or was the subject or the target of Sanctions or with any Sanctioned Country.

 

(qq)         Sarbanes-Oxley.
The Company is in compliance, in all material respects, with all applicable provisions of the Sarbanes-Oxley Act of 2002 and the
rules and regulations promulgated thereunder.

 

(rr)           Duties,
Transfer Taxes, Etc. No stamp or other issuance or transfer taxes or duties and no capital gains, income, withholding or other
taxes are payable by the Agent in the United States or any political subdivision or taxing authority thereof or therein in connection
with the execution, delivery or performance of this Agreement by the Company or the sale and delivery by the Company of the Shares.

 

    	 	16	 

     

    

 

(ss)          Cybersecurity.
To the Company’s knowledge, the Company and its subsidiaries’ information technology assets and equipment, computers,
systems, networks, hardware, software, websites, applications, and databases (collectively, “IT Systems”) are
adequate for, and operate and perform in all material respects as required in connection with the operation of the business of
the Company and its subsidiaries as currently conducted, free and clear of all material bugs, errors, defects, Trojan horses,
time bombs, malware and other corruptants. The Company and its subsidiaries have implemented and maintained commercially reasonable
physical, technical and administrative controls, policies, procedures, and safeguards to maintain and protect their material confidential
information and the integrity, continuous operation, redundancy and security of all IT Systems and data, including “Personal
Data,” used in connection with their businesses. “Personal Data” means (i) a natural person’s
name, street address, telephone number, e-mail address, photograph, social security number or tax identification number, driver’s
license number, passport number, credit card number, bank information, or customer or account number; (ii) any information
which would qualify as “personally identifying information” under the Federal Trade Commission Act, as amended; (iii) if
applicable to the Company, “personal data” as defined by GDPR (as defined below); (iv) if applicable to the Company,
any information which would qualify as “protected health information” under HIPAA; and (v) any other piece of
information that allows the identification of such natural person, or his or her family, or permits the collection or analysis
of any data related to an identified person’s health or sexual orientation. To the Company’s knowledge, there have
been no breaches, violations, outages or unauthorized uses of or accesses to same, except for those that have been remedied without
material cost or liability or the duty to notify any other person, and there are no incidents under internal review or investigations
relating to the same. The Company and its subsidiaries are presently in material compliance with all applicable laws or statutes
and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal
policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and to the protection
of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification.

 

(tt)           Compliance
with Data Privacy Laws. The Company and its subsidiaries are, and at all prior times were, in material compliance with all
applicable state and federal data privacy and security laws and regulations, including without limitation HIPAA, and the Company
and its subsidiaries have taken commercially reasonable actions to prepare to comply with, and since May 25, 2018, have been
and currently are in compliance with, the European Union General Data Protection Regulation (“GDPR”) (EU 2016/679)
(collectively, the “Privacy Laws”) in all material respects. To ensure compliance with the Privacy Laws, the
Company and its subsidiaries have in place, comply with, and take appropriate steps reasonably designed to ensure compliance in
all material respects with their policies and procedures relating to data privacy and security and the collection, storage, use,
disclosure, handling, and analysis of Personal Data (the “Policies”). The Company and its subsidiaries have
at all times made all disclosures to users or customers required by applicable laws and regulatory rules or requirements,
and none of such disclosures made or contained in any Policy have, to the knowledge of the Company, been inaccurate or in violation
of any applicable laws and regulatory rules or requirements in any material respect. The Company further certifies that neither
it nor any subsidiary: (i) has received notice of any actual or potential liability under or relating to, or actual or potential
violation of, any of the Privacy Laws, and has no knowledge of any event or condition that would reasonably be expected to result
in any such notice; (ii) is currently conducting or paying for, in whole or in part, any investigation, remediation, or other
corrective action pursuant to any Privacy Law; or (iii) is a party to any order, decree, or agreement that imposes any obligation
or liability under any Privacy Law.

 

(uu)         No
Reliance. The Company has not relied upon the Agent or the Agent’s legal counsel for any legal, tax or accounting advice
in connection with the offering and sale of the Shares.

 

    	 	17	 

     

    

 

(vv)         Other
Underwriting Agreements. The Company is not a party to any agreement with an agent or underwriter for any other “at the
market” or continuous equity transaction.

 

Any certificate signed
by any officer or representative of the Company or any of its subsidiaries and delivered to the Agent or counsel for the Agent
in connection with an issuance of Shares shall be deemed a representation and warranty by the Company to the Agent as to the matters
covered thereby on the date of such certificate.

 

The Company acknowledges
that the Agent and, for purposes of the opinions to be delivered pursuant to Section 4(o) hereof, counsel to the
Company and counsel to the Agent, will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents
to such reliance.

 

Section 3. ISSUANCE AND SALE OF COMMON SHARES

 

(a)            Sale
of Securities. On the basis of the representations, warranties and agreements herein contained, but subject to the terms and
conditions herein set forth, the Company and the Agent agree that the Company may from time to time seek to sell Shares through
the Agent, acting as sales agent, or directly to the Agent, acting as principal, as follows, with an aggregate Sales Price of up
to the Maximum Program Amount, based on and in accordance with Issuance Notices as the Company may deliver, during the Agency Period.

 

(b)            Mechanics
of Issuances.

 

(i)             Issuance
Notice. Upon the terms and subject to the conditions set forth herein, on any Trading Day during the Agency Period on which
the conditions set forth in Section 5(a) and Section 5(b) shall have been satisfied, the Company
may exercise its right to request an issuance of Shares by delivering to the Agent an Issuance Notice; provided, however,
that (A) in no event may the Company deliver an Issuance Notice to the extent that (I) the sum of (x) the aggregate
Sales Price of the requested Issuance Amount, plus (y) the aggregate Sales Price of all Shares issued under all previous Issuance
Notices effected pursuant to this Agreement, would exceed the Maximum Program Amount; and (B) prior to delivery of any Issuance
Notice, the period set forth for any previous Issuance Notice shall have expired or been terminated. An Issuance Notice shall be
considered delivered on the Trading Day that it is received by e-mail to the persons set forth in Schedule A hereto and confirmed
by the Company by telephone (including a voicemail message to the persons so identified), with the understanding that, with adequate
prior written notice, the Agent may modify the list of such persons from time to time.

 

(ii)            Agent
Efforts. Upon the terms and subject to the conditions set forth in this Agreement, upon the receipt of an Issuance Notice,
the Agent will use its commercially reasonable efforts consistent with its normal sales and trading practices to place the Shares
with respect to which the Agent has agreed to act as sales agent, subject to, and in accordance with the information specified
in, the Issuance Notice, unless the sale of the Shares described therein has been suspended, cancelled or otherwise terminated
in accordance with the terms of this Agreement. For the avoidance of doubt, the parties to this Agreement may modify an Issuance
Notice at any time provided they both agree in writing to any such modification.

 

    	 	18	 

     

    

 

(iii)           Method
of Offer and Sale. The Shares may be offered and sold (A) in privately negotiated transactions with the consent of the
Company; (B) as block transactions; or (C) by any other method permitted by law deemed to be an “at the market
offering” as defined in Rule 415(a)(4) under the Securities Act, including sales made directly on the Principal
Market or sales made into any other existing trading market of the Common Shares. Nothing in this Agreement shall be deemed to
require either party to agree to the method of offer and sale specified in the preceding sentence, and (except as specified in
clauses (A) and (B) above) the method of placement of any Shares by the Agent shall be at the Agent’s discretion.

 

(iv)           Confirmation
to the Company. If acting as sales agent hereunder, the Agent will provide written confirmation to the Company no later than
the opening of the Trading Day next following the Trading Day on which it has placed Shares hereunder setting forth the number
of shares sold on such Trading Day, the corresponding Sales Price and the Issuance Price payable to the Company in respect thereof.

 

(v)            Settlement.
Each issuance of Shares will be settled on the applicable Settlement Date for such issuance of Shares and, subject to the provisions
of Section 5, on or before each Settlement Date, the Company will, or will cause its transfer agent to, electronically
transfer the Shares being sold by crediting the Agent or its designee’s account at The Depository Trust Company through its
Deposit/Withdrawal At Custodian (DWAC) System, or by such other means of delivery as may be mutually agreed upon by the parties
hereto and, upon receipt of such Shares, which in all cases shall be freely tradable, transferable, registered shares in good deliverable
form, the Agent will deliver, by wire transfer of immediately available funds, the related Issuance Price in same day funds delivered
to an account designated by the Company prior to the Settlement Date. The Company may sell Shares to the Agent as principal at
a price agreed upon at each relevant time Shares are sold pursuant to this Agreement (each, a “Time of Sale”).

 

(vi)           Suspension
or Termination of Sales. Consistent with standard market settlement practices, the Company or the Agent may, upon notice to
the other party hereto in writing or by telephone (confirmed immediately by verifiable email), suspend any sale of Shares, and
the period set forth in an Issuance Notice shall immediately terminate; provided, however, that (A) such suspension
and termination shall not affect or impair either party’s obligations with respect to any Shares placed or sold hereunder
prior to the receipt of such notice; (B) if the Company suspends or terminates any sale of Shares after the Agent confirms
such sale to the Company, the Company shall still be obligated to comply with Section 3(b)(v) with respect to
such Shares; and (C) if the Company defaults in its obligation to deliver Shares on a Settlement Date, the Company agrees
that it will hold the Agent harmless against any loss, claim, damage or expense (including, without limitation, penalties, interest
and reasonable legal fees and expenses), as incurred, arising out of or in connection with such default by the Company. The parties
hereto acknowledge and agree that, in performing its obligations under this Agreement, the Agent may borrow Common Shares from
stock lenders in the event that the Company has not delivered Shares to settle sales as required by subsection (v) above,
and may use the Shares to settle or close out such borrowings. The Company agrees that no such notice shall be effective against
the Agent unless it is made to the persons identified in writing by the Agent pursuant to Section 3(b)(i).

 

(vii)          No
Guarantee of Placement, Etc. The Company acknowledges and agrees that (A) there can be no assurance that the Agent will
be successful in placing Shares; (B) the Agent will incur no liability or obligation to the Company or any other Person if
it does not sell Shares; and (C) the Agent shall be under no obligation to purchase Shares on a principal basis pursuant to
this Agreement, except as otherwise specifically agreed by the Agent and the Company.

 

    	 	19	 

     

    

 

(viii)         Material
Non-Public Information. Notwithstanding any other provision of this Agreement, the Company and the Agent agree that the Company
shall not deliver any Issuance Notice to the Agent, and the Agent shall not be obligated to place any Shares, during any period
in which the Company is in possession of material non-public information.

 

(c)            Fees.
As compensation for services rendered, the Company shall pay to the Agent, on the applicable Settlement Date, the Selling Commission
for the applicable Issuance Amount (including with respect to any suspended or terminated sale pursuant to Section 3(b)(vi))
by the Agent deducting the Selling Commission from the applicable Issuance Amount.

 

(d)            Expenses.
The Company agrees to pay all costs, fees and expenses incurred in connection with the performance of its obligations hereunder
and in connection with the transactions contemplated hereby, including without limitation (i) all expenses incident to the
issuance and delivery of the Shares (including all printing and engraving costs); (ii) all fees and expenses of the registrar
and transfer agent of the Shares; (iii) all necessary issue, transfer and other stamp taxes in connection with the issuance
and sale of the Shares; (iv) all fees and expenses of the Company’s counsel, independent public or certified public
accountants and other advisors; (v) all costs and expenses incurred in connection with the preparation, printing, filing,
shipping and distribution of the Registration Statement (including financial statements, exhibits, schedules, consents and certificates
of experts), the Prospectus, any Free Writing Prospectus (as defined below) prepared by or on behalf of, used by, or referred to
by the Company, and all amendments and supplements thereto, and this Agreement; (vi) all filing fees, attorneys’ fees
and expenses incurred by the Company or the Agent in connection with qualifying or registering (or obtaining exemptions from the
qualification or registration of) all or any part of the Shares for offer and sale under the state securities or blue sky laws
or the provincial securities laws of Canada, and, if requested by the Agent, preparing and printing a “Blue Sky Survey”
or memorandum and a “Canadian wrapper”, and any supplements thereto, advising the Agent of such qualifications, registrations,
determinations and exemptions; (vii) the reasonable fees and disbursements of the Agent’s counsel, including the
reasonable fees and expenses of counsel for the Agent in connection with, FINRA review, if any, and approval of the Agent’s
participation in the offering and distribution of the Shares; (viii) the filing fees incident to FINRA review, if any; and
(ix) the fees and expenses associated with listing the Shares on the Principal Market. The fees and disbursements of Agent’s
counsel pursuant to subsections (vi) and (vii) above shall not exceed $60,000.

 

Section 4. ADDITIONAL COVENANTS

 

The Company covenants
and agrees with the Agent as follows, in addition to any other covenants and agreements made elsewhere in this Agreement:

 

(a)            Exchange
Act Compliance. During the Agency Period, the Company shall (i) file, on a timely basis, with the Commission all reports
and documents required to be filed under Section 13, 14 or 15 of the Exchange Act in the manner and within the time periods
required by the Exchange Act; and (ii) either (A) include in its quarterly reports on Form 10-Q and its annual reports
on Form 10-K, a summary detailing, for the relevant reporting period, (1) the number of Shares sold through the Agent
pursuant to this Agreement and (2) the net proceeds received by the Company from such sales or (B) prepare a prospectus
supplement containing, or include in such other filing permitted by the Securities Act or Exchange Act (each an “Interim
Prospectus Supplement”), such summary information and, at least once a quarter and subject to this Section 4, file
such Interim Prospectus Supplement pursuant to Rule 424(b) under the Securities Act (and within the time periods required
by Rule 424(b) and Rule 430B under the Securities Act)).

 

    	 	20	 

     

    

 

(b)            Securities
Act Compliance. After the date of this Agreement, the Company shall promptly advise the Agent in writing (i) of the receipt
of any comments of, or requests for additional or supplemental information from, the Commission; (ii) of the time and date
of any filing of any post-effective amendment to the Registration Statement, any Rule 462(b) Registration Statement or
any amendment or supplement to the Prospectus, any Free Writing Prospectus; (iii) of the time and date that any post-effective
amendment to the Registration Statement or any Rule 462(b) Registration Statement becomes effective; and (iv) of
the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any post-effective
amendment thereto, any Rule 462(b) Registration Statement or any amendment or supplement to the Prospectus or of any
order preventing or suspending the use of any Free Writing Prospectus or the Prospectus, or of any proceedings to remove, suspend
or terminate from listing or quotation the Common Shares from any securities exchange upon which they are listed for trading or
included or designated for quotation, or of the threatening or initiation of any proceedings for any of such purposes. If the Commission
shall enter any such stop order at any time, the Company will use its reasonable efforts to obtain the lifting of such order as
soon as practicable. Additionally, the Company agrees that it shall comply with the provisions of Rule 424(b) and Rule 433,
as applicable, under the Securities Act and will use its reasonable efforts to confirm that any filings made by the Company under
such Rule 424(b) or Rule 433 were received in a timely manner by the Commission.

 

(c)            Amendments
and Supplements to the Prospectus and Other Securities Act Matters. If any event shall occur or condition exist as a result
of which it is necessary to amend or supplement the Prospectus so that the Prospectus does not include an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances
when the Prospectus is delivered to a purchaser, not misleading, or if in the opinion of the Agent or counsel for the Agent it
is otherwise necessary to amend or supplement the Prospectus to comply with applicable law, including the Securities Act, the Company
agrees (subject to Section 4(d) and 4(f)) to promptly prepare, file with the Commission and furnish at its own expense
to the Agent, amendments or supplements to the Prospectus so that the statements in the Prospectus as so amended or supplemented
will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances when the Prospectus is delivered to a purchaser, be misleading or so that the Prospectus,
as amended or supplemented, will comply with applicable law including the Securities Act. Neither the Agent’s consent to,
or delivery of, any such amendment or supplement shall constitute a waiver of any of the Company’s obligations under Sections
4(d) and 4(f).

 

(d)            Agent’s
Review of Proposed Amendments and Supplements. Prior to amending or supplementing the Registration Statement (including any
registration statement filed under Rule 462(b) under the Securities Act) or the Prospectus (excluding any amendment or
supplement through incorporation of any report filed under the Exchange Act), the Company shall furnish to the Agent for review,
a reasonable amount of time prior to the proposed time of filing or use thereof, a copy of each such proposed amendment or supplement,
and, if such proposed amendment or supplement relates to the matters contemplated by this Agreement, the Company shall not file
or use any such proposed amendment or supplement without the Agent’s prior consent, and to file with the Commission within
the applicable period specified in Rule 424(b) under the Securities Act any prospectus required to be filed pursuant
to such Rule.

 

    	 	21	 

     

    

 

(e)            Use
of Free Writing Prospectus. Neither the Company nor the Agent has prepared, used, referred to or distributed, or will prepare,
use, refer to or distribute, without the other party’s prior written consent, any “written communication” that
constitutes a “free writing prospectus” as such terms are defined in Rule 405 under the Securities Act with respect
to the offering contemplated by this Agreement (any such free writing prospectus being referred to herein as a “Free
Writing Prospectus”).

 

(f)             Free
Writing Prospectuses. The Company shall furnish to the Agent for review, a reasonable amount of time prior to the proposed
time of filing or use thereof, a copy of each proposed free writing prospectus or any amendment or supplement thereto to be prepared
by or on behalf of, used by, or referred to by the Company and the Company shall not file, use or refer to any proposed free writing
prospectus or any amendment or supplement thereto without the Agent’s consent. The Company shall furnish to the Agent, without
charge, as many copies of any free writing prospectus prepared by or on behalf of, or used by the Company, as the Agent may reasonably
request. If at any time when a prospectus is required by the Securities Act (including, without limitation, pursuant to Rule 173(d))
to be delivered in connection with sales of the Shares (but in any event if at any time through and including the date of this
Agreement) there occurred or occurs an event or development as a result of which any free writing prospectus prepared by or on
behalf of, used by, or referred to by the Company conflicted or would conflict with the information contained in the Registration
Statement or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances prevailing at that subsequent time, not misleading,
the Company shall promptly amend or supplement such free writing prospectus to eliminate or correct such conflict or so that the
statements in such free writing prospectus as so amended or supplemented will not include an untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing
at such subsequent time, not misleading, as the case may be; provided, however, that prior to amending or supplementing
any such free writing prospectus, the Company shall furnish to the Agent for review, a reasonable amount of time prior to the proposed
time of filing or use thereof, a copy of such proposed amended or supplemented free writing prospectus and the Company shall not
file, use or refer to any such amended or supplemented free writing prospectus without the Agent’s consent.

 

(g)            Filing
of Agent Free Writing Prospectuses. The Company shall not take any action that would result in the Agent or the Company being
required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus prepared
by or on behalf of the Agent that the Agent otherwise would not have been required to file thereunder.

 

    	 	22	 

     

    

 

(h)            Copies
of Registration Statement and Prospectus. After the date of this Agreement through the last time that a prospectus is required
by the Securities Act (including, without limitation, pursuant to Rule 173(d)) to be delivered in connection with sales of
the Shares, the Company agrees to furnish the Agent with copies (which may be electronic copies) of the Registration Statement
and each amendment thereto, and with copies of the Prospectus and each amendment or supplement thereto in the form in which it
is filed with the Commission pursuant to the Securities Act or Rule 424(b) under the Securities Act, both in such quantities
as the Agent may reasonably request from time to time; and, if the delivery of a prospectus is required under the Securities Act
or under the blue sky or securities laws of any jurisdiction at any time on or prior to the applicable Settlement Date for any
period set forth in an Issuance Notice in connection with the offering or sale of the Shares and if at such time any event has
occurred as a result of which the Prospectus as then amended or supplemented would include an untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made when such Prospectus is delivered, not misleading, or, if for any other reason it is necessary during such same
period to amend or supplement the Prospectus or to file under the Exchange Act any document incorporated by reference in the Prospectus
in order to comply with the Securities Act or the Exchange Act, to notify the Agent and to request that the Agent suspend offers
to sell Shares (and, if so notified, the Agent shall cease such offers as soon as practicable); and if the Company decides to amend
or supplement the Registration Statement or the Prospectus as then amended or supplemented, to advise the Agent promptly by telephone
(with confirmation in writing) and to prepare and cause to be filed promptly with the Commission an amendment or supplement to
the Registration Statement or the Prospectus as then amended or supplemented that will correct such statement or omission or effect
such compliance; provided, however, that if during such same period the Agent is required to deliver a prospectus in respect of
transactions in the Shares, the Company shall promptly prepare and file with the Commission such an amendment or supplement.

 

(i)             Blue
Sky Compliance. The Company shall cooperate with the Agent and counsel for the Agent to qualify or register the Shares for
sale under (or obtain exemptions from the application of) the state securities or blue sky laws or Canadian provincial securities
laws of those jurisdictions designated by the Agent, shall comply with such laws and shall continue such qualifications, registrations
and exemptions in effect so long as required for the distribution of the Shares. The Company shall not be required to qualify as
a foreign corporation or to take any action that would subject it to general service of process in any such jurisdiction where
it is not presently qualified or where it would be subject to taxation as a foreign corporation. The Company will advise the Agent
promptly of the suspension of the qualification or registration of (or any such exemption relating to) the Shares for offering,
sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the
issuance of any order suspending such qualification, registration or exemption, the Company shall use its reasonable efforts to
obtain the withdrawal thereof as soon as practicable.

 

(j)             Earnings
Statement. As soon as practicable, the Company will make generally available to its security holders and to the Agent an earnings
statement (which need not be audited) covering a period of at least twelve months beginning with the first fiscal quarter of the
Company occurring after the date of this Agreement which shall satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 under the Securities Act.

 

    	 	23	 

     

    

 

(k)            Listing;
Reservation of Shares. (a)  The Company will maintain the listing of the Shares on the Principal Market; and (b) the
Company will reserve and keep available at all times, free of preemptive rights, Shares for the purpose of enabling the Company
to satisfy its obligations under this Agreement.

 

(l)             Transfer
Agent. The Company shall engage and maintain, at its expense, a registrar and transfer agent for the Shares.

 

(m)           Due
Diligence. During the term of this Agreement, the Company will reasonably cooperate with any reasonable due diligence review
conducted by the Agent in connection with the transactions contemplated hereby, including, without limitation, providing information
and making available documents and senior corporate officers, during normal business hours and at the Company’s principal
offices, as the Agent may reasonably request from time to time.

 

(n)            Representations
and Warranties. The Company acknowledges that each delivery of an Issuance Notice and each delivery of Shares on a Settlement
Date shall be deemed to be (i) an affirmation to the Agent that the representations and warranties of the Company contained
in or made pursuant to this Agreement are true and correct as of the date of such Issuance Notice or of such Settlement Date, as
the case may be, as though made at and as of each such date, except as may be disclosed in the Prospectus (including any documents
incorporated by reference therein and any supplements thereto); and (ii) an undertaking that the Company will advise the Agent
if any of such representations and warranties will not be true and correct as of the Settlement Date for the Shares relating to
such Issuance Notice, as though made at and as of each such date (except that such representations and warranties shall be deemed
to relate to the Registration Statement and the Prospectus as amended and supplemented relating to such Shares).

 

(o)            Deliverables
at Triggering Event Dates; Certificates. The Company agrees that on or prior to the date of the first Issuance Notice and,
during the term of this Agreement after the date of the first Issuance Notice, upon:

 

(A)            the
filing of the Prospectus or the amendment or supplement of any Registration Statement or Prospectus (other than a prospectus supplement
relating solely to an offering of securities other than the Shares or a prospectus filed pursuant to Section 4(a)(ii)(B)),
by means of a post-effective amendment, sticker or supplement, but not by means of incorporation of documents by reference into
the Registration Statement or Prospectus;

 

(B)            the
filing with the Commission of an annual report on Form 10-K or a quarterly report on Form 10-Q (including any Form 10-K/A
or Form 10-Q/A containing amended financial information or a material amendment to the previously filed annual report on Form 10-K
or quarterly report on Form 10-Q), in each case, of the Company; or

 

(C)            the
filing with the Commission of a current report on Form 8-K of the Company containing amended financial information (other
than information “furnished” pursuant to Item 2.02 or 7.01 of Form 8-K or to provide disclosure pursuant to Item
8.01 of Form 8-K relating to reclassification of certain properties as discontinued operations in accordance with Statement
of Financial Accounting Standards No. 144) that is material to the offering of securities of the Company in the Agent’s
reasonable discretion;

 

    	 	24	 

     

    

 

(any such event, a “Triggering
Event Date”), the Company shall furnish the Agent (but in the case of clause (C) above only if the Agent reasonably
determines that the information contained in such current report on Form 8-K of the Company is material) with a certificate
as of the Triggering Event Date, in the form and substance satisfactory to the Agent and its counsel, substantially similar to
the form previously provided to the Agent and its counsel, modified, as necessary, to relate to the Registration Statement and
the Prospectus as amended or supplemented, (A) confirming that the representations and warranties of the Company contained
in this Agreement are true and correct, (B) that the Company has performed all of its obligations hereunder to be performed
on or prior to the date of such certificate and as to the matters set forth in Section 5(a)(iii) hereof, and (C) containing
any other certification that the Agent shall reasonably request. The requirement to provide a certificate under this Section 4(o) shall
be waived for any Triggering Event Date occurring at a time when no Issuance Notice is pending or a suspension is in effect, which
waiver shall continue until the earlier to occur of the date the Company delivers instructions for the sale of Shares hereunder
(which for such calendar quarter shall be considered a Triggering Event Date) and the next occurring Triggering Event Date. Notwithstanding
the foregoing, if the Company subsequently decides to sell Shares following a Triggering Event Date when a suspension was in effect
and did not provide the Agent with a certificate under this Section 4(o), then before the Company delivers the instructions
for the sale of Shares or the Agent sells any Shares pursuant to such instructions, the Company shall provide the Agent with a
certificate in conformity with this Section 4(o) dated as of the date that the instructions for the sale of Shares are
issued.

 

(p)            Legal
Opinions. On or prior to the date of the first Issuance Notice and on or prior to each Triggering Event Date with respect to
which the Company is obligated to deliver a certificate pursuant to Section 4(o) for which no waiver is applicable and
excluding the date of this Agreement, a negative assurance letter and the written legal opinion of Cooley LLP (the “Corporate
Opinion”), counsel to the Company, and Pepper Hamilton LLP, intellectual property counsel to the Company (the “IP
Opinion”), each dated the date of delivery, in form and substance reasonably satisfactory to Agent and its counsel, substantially
similar to the form previously provided to the Agent and its counsel, modified, as necessary, to relate to the Registration Statement
and the Prospectus as then amended or supplemented shall be furnished to the Agent; provided, however, the Company shall be required
to furnish no more than one Corporate Opinion hereunder per calendar year and shall otherwise be required to only furnish a negative
assurance letter and one IP Opinion hereunder per calendar year. In lieu of such opinions for subsequent periodic filings, in the
discretion of the Agent, the Company may furnish a reliance letter from such counsel to the Agent, permitting the Agent to rely
on a previously delivered opinion letter, modified as appropriate for any passage of time or Triggering Event Date (except that
statements in such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus as amended or supplemented
as of such Triggering Event Date).

 

(q)            Comfort
Letter. On or prior to the date of the first Issuance Notice and on or prior to each Triggering Event Date with respect to
which the Company is obligated to deliver a certificate pursuant to Section 4(o) for which no waiver is applicable and
excluding the date of this Agreement, the Company shall cause PricewaterhouseCoopers LLP, the independent registered public accounting
firm who has audited the financial statements included or incorporated by reference in the Registration Statement, to furnish the
Agent a comfort letter, dated the date of delivery, in form and substance reasonably satisfactory to the Agent and its counsel,
substantially similar to the form previously provided to the Agent and its counsel; provided, however, that any such comfort letter
will only be required on the Triggering Event Date specified to the extent that it contains financial statements filed with the
Commission under the Exchange Act and incorporated or deemed to be incorporated by reference into a Prospectus. If requested by
the Agent, the Company shall also cause a comfort letter to be furnished to the Agent within ten (10) Trading Days of the
date of occurrence of any material transaction or event requiring the filing of a current report on Form 8-K containing material
amended financial information of the Company, including the restatement of the Company’s financial statements. The Company
shall be required to furnish no more than one comfort letter hereunder per calendar quarter.

 

    	 	25	 

     

    

 

(r)             Secretary’s
Certificate. On or prior to the date of the first Issuance Notice and on or prior to each Triggering Event Date, the Company
shall furnish the Agent a certificate executed by the Secretary of the Company, signing in such capacity, dated the date of delivery
(i) certifying that attached thereto are true and complete copies of the resolutions duly adopted by the Board of Directors
of the Company authorizing the execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby (including, without limitation, the issuance of the Shares pursuant to this Agreement), which authorization shall be in
full force and effect on and as of the date of such certificate, (ii) certifying and attesting to the office, incumbency,
due authority and specimen signatures of each Person who executed this Agreement for or on behalf of the Company, and (iii) containing
any other certification that the Agent shall reasonably request.

 

(s)            Agent’s
Own Account; Clients’ Account. The Company consents to the Agent trading, in compliance with applicable law, in the Common
Shares for the Agent’s own account and for the account of its clients at the same time as sales of the Shares occur pursuant
to this Agreement.

 

(t)             Investment
Limitation. The Company shall not invest, or otherwise use the proceeds received by the Company from its sale of the Shares
in such a manner as would require the Company or any of its subsidiaries to register as an investment company under the Investment
Company Act.

 

(u)            Market
Activities. The Company will not take, directly or indirectly, any action designed to or that might be reasonably expected
to cause or result in stabilization or manipulation of the price of the Shares or any other reference security, whether to facilitate
the sale or resale of the Shares or otherwise, and the Company will, and shall cause each of its affiliates to, comply with all
applicable provisions of Regulation M. If the limitations of Rule 102 of Regulation M (“Rule 102”)
do not apply with respect to the Shares or any other reference security pursuant to any exception set forth in Section (d) of
Rule 102, then promptly upon notice from the Agent (or, if later, at the time stated in the notice), the Company will, and
shall cause each of its affiliates to, comply with Rule 102 as though such exception were not available but the other provisions
of Rule 102 (as interpreted by the Commission) did apply. The Company shall promptly notify the Agent if it no longer meets
the requirements set forth in Section (d) of Rule 102.

 

    	 	26	 

     

    

 

(v)            Notice
of Other Sale. Without the written consent of the Agent, the Company will not, directly or indirectly, offer to sell, sell,
contract to sell, grant any option to sell or otherwise dispose of any Common Shares or securities convertible into or exchangeable
for Common Shares (other than Shares hereunder), warrants or any rights to purchase or acquire Common Shares, during the period
beginning on the third Trading Day immediately prior to the date on which any Issuance Notice is delivered to the Agent hereunder
and ending on the third Trading Day immediately following the Settlement Date with respect to Shares sold pursuant to such Issuance
Notice; and will not directly or indirectly enter into any other “at the market” or continuous equity transaction to
offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Shares (other than the Shares
offered pursuant to this Agreement) or securities convertible into or exchangeable for Common Shares, warrants or any rights to
purchase or acquire Common Shares prior to the termination of this Agreement; provided, however, that such restrictions will not
be required in connection with the Company’s (i) issuance or sale of Common Shares, options to purchase Common Shares
or Common Shares issuable upon the exercise of options or other equity awards pursuant to any employee or director share option,
incentive or benefit plan, share purchase or ownership plan, long-term incentive plan, dividend reinvestment plan, inducement award
under Nasdaq rules or other compensation plan of the Company or its subsidiaries, as in effect on the date of this Agreement,
(ii) issuance or sale of Common Shares issuable upon exchange, conversion or redemption of securities or the exercise or vesting
of warrants, options or other equity awards outstanding at the date of this Agreement, (iii) issuance or sale of Common Shares
or securities convertible into or exchangeable for Common Shares as consideration for mergers, acquisitions, other business combinations,
joint ventures or strategic alliances (each a “Business Transaction”) occurring after the date of this Agreement
which are not used for capital raising purposes; provided, that the aggregate number of Common Shares issued, or issuable pursuant
to the conversion or exchange of securities convertible into or exchangeable for Common Shares, in connection with such Business
Transaction does not exceed 5% of the aggregate number of Common Shares outstanding immediately prior to such Business Transaction
and (iv) modification of any outstanding options, warrants of any rights to purchase or acquire Common Shares.

 

Section 5. CONDITIONS TO DELIVERY OF ISSUANCE NOTICES
AND TO SETTLEMENT

 

(a)            Conditions
Precedent to the Right of the Company to Deliver an Issuance Notice and the Obligation of the Agent to Sell Shares. The right
of the Company to deliver an Issuance Notice hereunder is subject to the satisfaction, on the date of delivery of such Issuance
Notice, and the obligation of the Agent to use its commercially reasonable efforts to place Shares during the applicable period
set forth in the Issuance Notice is subject to the satisfaction, on each Trading Day during the applicable period set forth in
the Issuance, of each of the following conditions:

 

		(i)	Accuracy of the Company’s Representations and Warranties; Performance by the Company.
The Company shall have delivered the certificate required to be delivered pursuant to Section 4(o) on or before
the date on which delivery of such certificate is required pursuant to Section 4(o). The Company shall have performed,
satisfied and complied with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to such date, including, but not limited to, the covenants contained in Section 4(p),
Section 4(q) and Section 4(r).

 

		(ii)	No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction
shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction or any
self-regulatory organization having authority over the matters contemplated hereby that prohibits or directly and materially adversely
affects any of the transactions contemplated by this Agreement, and no proceeding shall have been commenced that may have the effect
of prohibiting or materially adversely affecting any of the transactions contemplated by this Agreement.

 

    	 	27	 

     

    

 

		(iii)	Material Adverse Changes. Except as disclosed in the Prospectus and the Time of Sale Information,
(a) in the judgment of the Agent there shall not have occurred any Material Adverse Change; and (b) there shall not have
occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a
possible change that does not indicate the direction of the possible change, in the rating accorded any securities of the Company
or any of its subsidiaries by any “nationally recognized statistical rating organization” as such term is defined for
purposes of Section 3(a)(62) of the Exchange Act.

 

		(iv)	No Suspension of Trading in or Delisting of Common Shares; Other Events. The trading of
the Common Shares (including without limitation the Shares) shall not have been suspended by the Commission, the Principal Market
or FINRA and the Common Shares (including without limitation the Shares) shall have been approved for listing or quotation on and
shall not have been delisted from the Nasdaq Stock Market, the New York Stock Exchange or any of their constituent markets. There
shall not have occurred (and be continuing in the case of occurrences under clauses (i) and (ii) below) any of the
following: (i) trading or quotation in any of the Company’s securities shall have been suspended or limited by the Commission
or by the Principal Market or trading in securities generally on either the Principal Market shall have been suspended or limited,
or minimum or maximum prices shall have been generally established on any of such stock exchanges by the Commission or FINRA; (ii) a
general banking moratorium shall have been declared by any of federal or New York, authorities; or (iii) there shall have
occurred any outbreak or escalation of national or international hostilities or any crisis or calamity, or any change in the United
States or international financial markets, or any substantial change or development involving a prospective substantial change
in United States’ or international political, financial or economic conditions, as in the judgment of the Agent is material
and adverse and makes it impracticable to market the Shares in the manner and on the terms described in the Prospectus or to enforce
contracts for the sale of securities.

 

(b)            Documents
Required to be Delivered on each Issuance Notice Date. The Agent’s obligation to use its commercially reasonable efforts
to place Shares hereunder shall additionally be conditioned upon the delivery to the Agent on or before the Issuance Notice Date
of a certificate in form and substance reasonably satisfactory to the Agent, executed by the Chief Executive Officer, President
or Chief Financial Officer of the Company, to the effect that all conditions to the delivery of such Issuance Notice shall have
been satisfied as at the date of such certificate (which certificate shall not be required if the foregoing representations shall
be set forth in the Issuance Notice).

 

    	 	28	 

     

    

 

(c)            No
Misstatement or Material Omission. Agent shall not have advised the Company that the Registration Statement, the Prospectus
or the Time of Sale Information, or any amendment or supplement thereto, contains an untrue statement of fact that in the Agent’s
reasonable opinion is material, or omits to state a fact that in the Agent’s reasonable opinion is material and is required
to be stated therein or is necessary to make the statements therein not misleading.

 

Section 6. INDEMNIFICATION AND CONTRIBUTION

 

(a)            Indemnification
of the Agent. The Company agrees to indemnify and hold harmless the Agent, its officers and employees, and each person, if
any, who controls the Agent within the meaning of the Securities Act or the Exchange Act against any loss, claim, damage, liability
or expense, as incurred, to which the Agent or such officer, employee or controlling person may become subject, under the Securities
Act, the Exchange Act, other federal or state statutory law or regulation, or the laws or regulations of foreign jurisdictions
where Shares have been offered or sold or at common law or otherwise (including in settlement of any litigation), insofar as such
loss, claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or is based upon
(i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment
thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the Securities Act, or the omission
or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not
misleading; (ii) any untrue statement or alleged untrue statement of a material fact contained in any Free Writing Prospectus
that the Company has used, referred to or filed, or is required to file, pursuant to Rule 433(d) of the Securities Act
or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; or (iii) any
act or failure to act or any alleged act or failure to act by the Agent in connection with, or relating in any manner to, the Common
Shares or the offering contemplated hereby, and which is included as part of or referred to in any loss, claim, damage, liability
or action arising out of or based upon any matter covered by clause (i) or (ii) above, provided that the Company shall
not be liable under this clause (iii) to the extent that a court of competent jurisdiction shall have determined by a final
judgment that such loss, claim, damage, liability or action resulted directly from any such acts or failures to act undertaken
or omitted to be taken by the Agent through its bad faith or willful misconduct, and to reimburse the Agent and each such officer,
employee and controlling person for any and all documented expenses (including the fees and disbursements of counsel chosen by
the Agent) as such expenses are reasonably incurred by the Agent or such officer, employee or controlling person in connection
with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided,
however, that the foregoing indemnity agreement shall not apply to any loss, claim, damage, liability or expense to the extent,
but only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission
made in reliance upon and in conformity with written information furnished to the Company by the Agent expressly for use in the
Registration Statement, any such Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto), it being understood
and agreed that the only such information furnished by the Agent to the Company consists solely of the name of the Agent and the
first sentence of the ninth paragraph under the caption “Plan of Distribution” in the Prospectus (collectively, the
 “Agent Information”). The indemnity agreement set forth in this Section 6(a)  shall be in addition
to any liabilities that the Company may otherwise have.

 

    	 	29	 

     

    

 

(b)            Indemnification
of the Company, its Directors and Officers. The Agent agrees to indemnify and hold harmless the Company, each of its directors,
each of its officers who signed the Registration Statement and each person, if any, who controls the Company within the meaning
of the Securities Act or the Exchange Act against any loss, claim, damage, liability or expense, as incurred, to which the Company
or any such director, officer or controlling person may become subject, under the Securities Act, the Exchange Act, or other federal
or state statutory law or regulation, or the laws or regulations of foreign jurisdictions where Shares have been offered or sold
or at common law or otherwise (including in settlement of any litigation), insofar as such loss, claim, damage, liability or expense
arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement, or any amendment thereto, including any information deemed to be a part thereof pursuant to Rule 430B under the
Securities Act, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to
make the statements therein not misleading, or (ii) any untrue statement or alleged untrue statement of a material fact contained
in any Free Writing Prospectus that the Company has used, referred to or filed, or is required to file, pursuant to Rule 433(d) of
the Securities Act or the Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom of
a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, but only to the extent arising out of or based upon any untrue statement or alleged untrue statement or omission
or alleged omission made in reliance upon and in conformity with written information furnished to the Company by the Agent expressly
for use in the Registration Statement, any such Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto),
it being understood and agreed that the only such information furnished by the Agent to the Company consists solely of the Agent
Information, and to reimburse the Company and each such director, officer and controlling person for any and all documented expenses
(including the fees and disbursements of counsel chosen by the Company) as such expenses are reasonably incurred by the Company
or such officer, director or controlling person in connection with investigating, defending, settling, compromising or paying any
such loss, claim, damage, liability, expense or action. The indemnity agreement set forth in this Section 6(b) shall
be in addition to any liabilities that the Agent or the Company may otherwise have.

 

(c)            Notifications
and Other Indemnification Procedures. Promptly after receipt by an indemnified party under this Section 6 of notice
of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying
party under this Section 6, notify the indemnifying party in writing of the commencement thereof, but the omission
so to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party for contribution
or otherwise than under the indemnity agreement contained in this Section 6 or to the extent it is not prejudiced as
a proximate result of such failure. In case any such action is brought against any indemnified party and such indemnified party
seeks or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate in, and,
to the extent that it shall elect, jointly with all other indemnifying parties similarly notified, by written notice delivered
to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof
with counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants in any such action include
both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that a conflict
may arise between the positions of the indemnifying party and the indemnified party in conducting the defense of any such action
or that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to
those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to
assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties.
Upon receipt of notice from the indemnifying party to such indemnified party of such indemnifying party’s election so to
assume the defense of such action and approval by the indemnified party of counsel (not to be unreasonably withheld, delayed or
conditioned), the indemnifying party will not be liable to such indemnified party under this Section 6 for any legal
or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified
party shall have employed separate counsel in accordance with the proviso to the preceding sentence (it being understood, however,
that the indemnifying party shall not be liable for the fees and expenses of more than one separate counsel (together with local
counsel), representing the indemnified parties who are parties to such action), which counsel (together with any local counsel)
for the indemnified parties shall be selected by the Agent (in the case of counsel for the indemnified parties referred to in Section 6(a) above)
or the Company (in the case of counsel for the indemnified parties referred to in Section 6(b) above), (ii) the
indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after notice of commencement of the action or (iii) the indemnifying party has authorized in
writing the employment of counsel for the indemnified party at the expense of the indemnifying party, in each of which cases the
fees and expenses of counsel shall be at the expense of the indemnifying party and shall be paid as they are incurred.

 

    	 	30	 

     

    

 

(d)            Settlements.
The indemnifying party under this Section 6 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, the indemnifying party
agrees to indemnify the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party
to reimburse the indemnified party for fees and expenses of counsel as contemplated by Section 6(c) hereof, the
indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if
(i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request;
and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to
the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any
settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect of
which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified
party, unless such settlement, compromise or consent includes an unconditional release of such indemnified party from all liability
on claims that are the subject matter of such action, suit or proceeding.

 

(e)            Contribution.
If the indemnification provided for in this Section 6 is for any reason held to be unavailable to or otherwise insufficient
to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities or expenses referred to therein, then
each indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified party, as incurred, as a result
of any losses, claims, damages, liabilities or expenses referred to therein (i) in such proportion as is appropriate to reflect
the relative benefits received by the Company, on the one hand, and the Agent, on the other hand, from the offering of the Shares
pursuant to this Agreement; or (ii) if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but
also the relative fault of the Company, on the one hand, and the Agent, on the other hand, in connection with the statements or
omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations.
The relative benefits received by the Company, on the one hand, and the Agent, on the other hand, in connection with the offering
of the Shares pursuant to this Agreement shall be deemed to be in the same respective proportions as the total gross proceeds from
the offering of the Shares (before deducting expenses) received by the Company bear to the total commissions received by the Agent.
The relative fault of the Company, on the one hand, and the Agent, on the other hand, shall be determined by reference to, among
other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by the Company, on the one hand, or the Agent, on the other hand, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

    	 	31	 

     

    

 

The amount paid or
payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include,
subject to the limitations set forth in Section 6(c), any documented legal or other fees or expenses reasonably incurred
by such party in connection with investigating or defending any action or claim. The provisions set forth in Section 6(c) with
respect to notice of commencement of any action shall apply if a claim for contribution is to be made under this Section 6(e);
provided, however, that no additional notice shall be required with respect to any action for which notice has been given
under Section 6(c) for purposes of indemnification.

 

The Company and the Agent agree that it
would not be just and equitable if contribution pursuant to this Section 6(e) were determined by pro rata allocation
or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 6(e).

 

Notwithstanding the
provisions of this Section 6(e), the Agent shall not be required to contribute any amount in excess of the agent fees
received by the Agent in connection with the offering contemplated hereby. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty
of such fraudulent misrepresentation. For purposes of this Section 6(e), each officer and employee of the Agent and
each person, if any, who controls the Agent within the meaning of the Securities Act or the Exchange Act shall have the same rights
to contribution as the Agent, and each director of the Company, each officer of the Company who signed the Registration Statement,
and each person, if any, who controls the Company with the meaning of the Securities Act and the Exchange Act shall have the same
rights to contribution as the Company.

 

    	 	32	 

     

    

 

Section 7. TERMINATION & SURVIVAL

 

(a)            Term.
Subject to the provisions of this Section 7, the term of this Agreement shall continue from the date of this Agreement
until the end of the Agency Period, unless earlier terminated by the parties to this Agreement pursuant to this Section 7.

 

(b)            Termination;
Survival Following Termination.

 

		(i)	Either party may terminate this Agreement prior to the end of the Agency Period, by giving written
notice as required by this Agreement, upon ten (10) Trading Days’ notice to the other party; provided that, (A) if
the Company terminates this Agreement after the Agent confirms to the Company any sale of Shares, the Company shall remain obligated
to comply with Section 3(b)(v) with respect to such Shares and (B) Section 2, Section 6,
Section 7 and Section 8 shall survive termination of this Agreement. If termination shall occur prior to
the Settlement Date for any sale of Shares, such sale shall nevertheless settle in accordance with the terms of this Agreement.

 

		(ii)	In addition to the survival provision of Section 7(b)(i),
the respective indemnities, agreements, representations, warranties and other statements of the Company, of its officers and of
the Agent set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation
made by or on behalf of the Agent or the Company or any of its or their partners, officers or directors or any controlling person,
as the case may be, and, anything herein to the contrary notwithstanding, will survive delivery of and payment for the Shares
sold hereunder and any termination of this Agreement.

 

Section 8. MISCELLANEOUS

 

(a)            Press
Releases and Disclosure. The Company may issue a press release describing the material terms of the transactions contemplated
hereby as soon as practicable following the date of this Agreement, and may file with the Commission a Current Report on Form 8-K,
with this Agreement attached as an exhibit thereto, describing the material terms of the transactions contemplated hereby, and
the Company shall consult with the Agent prior to making such disclosures, and the parties hereto shall use all commercially reasonable
efforts, acting in good faith, to agree upon a text for such disclosures that is reasonably satisfactory to all parties hereto.
No party hereto shall issue thereafter any press release or like public statement (including, without limitation, any disclosure
required in reports filed with the Commission pursuant to the Exchange Act) related to this Agreement or any of the transactions
contemplated hereby without the prior written approval of the other party hereto, except as may be necessary or appropriate in
the reasonable opinion of the party seeking to make disclosure to comply with the requirements of applicable law or stock exchange
rules. If any such press release or like public statement is so required, the party making such disclosure shall consult with the
other party prior to making such disclosure, and the parties shall use all commercially reasonable efforts, acting in good faith,
to agree upon a text for such disclosure that is reasonably satisfactory to all parties hereto.

 

    	 	33	 

     

    

 

(b)            No
Advisory or Fiduciary Relationship. The Company acknowledges and agrees that (i) the transactions contemplated by this
Agreement, including the determination of any fees, are arm’s-length commercial transactions between the Company and the
Agent, (ii) when acting as a principal under this Agreement, the Agent is and has been acting solely as a principal is not
the agent or fiduciary of the Company, or its stockholders, creditors, employees or any other party, (iii) the Agent has not
assumed nor will assume an advisory or fiduciary responsibility in favor of the Company with respect to the transactions contemplated
hereby or the process leading thereto (irrespective of whether the Agent has advised or is currently advising the Company on other
matters) and the Agent does not have any obligation to the Company with respect to the transactions contemplated hereby except
the obligations expressly set forth in this Agreement, (iv) the Agent and its respective affiliates may be engaged in a broad
range of transactions that involve interests that differ from those of the Company, and (v) the Agent has not provided any
legal, accounting, regulatory or tax advice with respect to the transactions contemplated hereby and the Company has consulted
its own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.

 

(c)            Research
Analyst Independence. The Company acknowledges that the Agent’s research analysts and research departments are required
to and should be independent from their respective investment banking divisions and are subject to certain regulations and internal
policies, and as such the Agent’s research analysts may hold views and make statements or investment recommendations and/or
publish research reports with respect to the Company or the offering that differ from the views of their respective investment
banking divisions. The Company understands that the Agent is a full service securities firm and as such from time to time, subject
to applicable securities laws, may effect transactions for its own account or the account of its customers and hold long or short
positions in debt or equity securities of the companies that may be the subject of the transactions contemplated by this Agreement.

 

(d)            Notices.
All communications hereunder shall be in writing and shall be mailed, hand delivered, e-mailed or telecopied and confirmed to the
parties hereto as follows:

 

If
to the Agent:

 

Jefferies LLC

520 Madison Avenue

New York, NY 10022

Attention: General Counsel

 

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

 

Latham & Watkins LLP

200 Clarendon Street

27th Floor

Boston, Massachusetts 02116

Facsimile: (617) 948-6001

Attention: Peter Handrinos, Esq.

Email: peter.handrinos@lw.com

 

    	 	34	 

     

    

 

If to the Company:

 

Aclaris Therapeutics, Inc.

640 Lee Road

Suite 200

Wayne, Pennsylvania 19087

Attention: Kamil Ali-Jackson

Email: kalijackson@aclaristx.com

 

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

 

Cooley
LLP

11951 Freedom Drive

14th Floor

Reston,
Virginia 20190-5640

Facsimile:
(703) 456-8100

Attention:
Brian F. Leaf, Esq.

Email: bleaf@cooley.com

 

Any party hereto may change the address
for receipt of communications by giving written notice to the others in accordance with this Section 8(d).

 

(e)            Successors.
This Agreement will inure to the benefit of and be binding upon the parties hereto, and to the benefit of the employees, officers
and directors and controlling persons referred to in Section 6, and in each case their respective successors, and no
other person will have any right or obligation hereunder. The term “successors” shall not include any purchaser of
the Shares as such from the Agent merely by reason of such purchase.

 

(f)             Partial
Unenforceability. The invalidity or unenforceability of any Article, Section, paragraph or provision of this Agreement shall
not affect the validity or enforceability of any other Article, Section, paragraph or provision hereof. If any Article, Section,
paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to
be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

 

(g)            Governing
Law Provisions. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New
York applicable to agreements made and to be performed in such state. Any legal suit, action or proceeding arising out of or based
upon this Agreement or the transactions contemplated hereby (“Related Proceedings”) may be instituted in the
federal courts of the United States of America located in the Borough of Manhattan in the City of New York or the courts of the
State of New York in each case located in the Borough of Manhattan in the City of New York (collectively, the “Specified
Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard
to the enforcement of a judgment of any such court (a “Related Judgment”), as to which such jurisdiction is
non-exclusive) of such courts in any such suit, action or proceeding. Service of any process, summons, notice or document by mail
to such party’s address set forth above shall be effective service of process for any suit, action or other proceeding brought
in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or
other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such
court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum.

 

    	 	35	 

     

    

 

(h)            General
Provisions. This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written
or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof. This
Agreement may be executed in two or more counterparts, each one of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument, and may be delivered by facsimile transmission or by electronic delivery of a
portable document format (PDF) file. This Agreement may not be amended or modified unless in writing by all of the parties hereto,
and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to
benefit. The Article and Section headings herein are for the convenience of the parties only and shall not affect the
construction or interpretation of this Agreement.

 

[Signature Page Immediately Follows]

 

    	 	36	 

     

    

 

If the foregoing is
in accordance with your understanding of our agreement, kindly sign and return to the Company the enclosed copies hereof, whereupon
this instrument, along with all counterparts hereof, shall become a binding agreement in accordance with its terms

 

 

	 	Very truly yours,
	 	 	 
	 	ACLARIS THERAPEUTICS, INC.
	 	 	 
	 	By:	/s/ Neal Walker
	 	 	Name:	Neal Walker
	 	 	Title:	President & CEO

 

The foregoing Agreement is hereby confirmed
and accepted by the Agent in New York, New York as of the date first above written.

 

 

	JEFFERIES LLC	 
	 	 	 
	By:	/s/ Donald Lynaugh	 
	 	Name:	Donald Lynaugh	 
	 	Title:	Managing Director	 

 

     

     

    

 

EXHIBIT A

 

ISSUANCE NOTICE

 

[Date]

 

Jefferies LLC

520 Madison Avenue

New York, New York 10022

 

Attn: [__________]

 

Reference is made to the Open Market Sale
Agreement between Aclaris Therapeutics, Inc. (the “Company”) and Jefferies LLC (the “Agent”)
dated as of March [13], 2020. The Company confirms that all conditions to the delivery of this Issuance Notice are satisfied
as of the date hereof.

 

Date of Delivery of Issuance Notice (determined pursuant to
Section 3(b)(i)): _______________________

 

Issuance Amount (equal to the total Sales Price for such Shares):

 

$______________________

 

	Number of days in selling period:	_______________________

 

	First date of selling period:	_______________________

 

	Last date of selling period:	_______________________

 

Settlement Date(s) if other than standard T+2 settlement:

 

_______________________

 

Floor Price Limitation (in no event less
than $1.00 without the prior written consent of the Agent, which consent may be withheld in the Agent’s sole discretion):
$ ____ per share

 

Comments: ____________________________________________________________________________________________

 

 
	 	_______________________
	 	 	 
	 	By:	                                             
	 	 	Name:
	 	 	Title:

 

    	 	A-1	 

     

    

 

Schedule A

 

Notice Parties

 

The Company

 

Aclaris Therapeutics, Inc.

640 Lee Road

Suite 200

Wayne, Pennsylvania 19087

Telephone: (484) 324-7933

Attention: Kamil Ali-Jackson

Email: kalijackson@aclaristx.com

 

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

 

Cooley
LLP

11951 Freedom Drive

14th Floor

Reston,
Virginia 20190-5640
 Facsimile: (703) 456-8100
 Attention: Brian F. Leaf, Esq.

Email: bleaf@cooley.com

 

The Agent

 

Jefferies LLC

520 Madison Avenue

New York, NY 10022

Attention: Donald Lynaugh, Michael Magarro, and Jack Fabbri

Email:
dlynaugh@jefferies.com, mmagarro@jefferies.com, and JFABBRI@Jefferies.com

 

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

 

Latham & Watkins LLP

200 Clarendon Street

27th Floor

Boston, Massachusetts 02116

Facsimile: (617) 948-6001

Attention: Peter Handrinos, Esq.

Email: peter.handrinos@lw.com

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