A R TICLE I DE F INIT I ONS ............................................................... . .........................................1

 

SEC T I ON 1.01 Cert a in D e fin e d T e rms ...............................................................................1

SEC T I ON 1.02 I nte r pr e t a tion a nd Rules of Constru c tion .................................................11

 

A R TICLE II P U R CH A S E A N D SALE ............................................................... . .....................12

 

SEC T I ON 2.01 Pur c h a se a nd S a le of the E qui t y I n te re sts ................................................12

SEC T I ON 2.02 Pur c h a se a nd S a le of Pur c h a s e d A ssets ...................................................13

SEC T I ON 2.03 Assump t ion and E x c lusion of L i a bilities .................................................15

SEC T I ON 2.04 Closing .....................................................................................................16

SEC T I ON 2.05 Closing D e liv e ri e s b y S e ll e r ....................................................................16

SEC T I ON 2.06 Closing D e liv e ri e s b y B u y e r ....................................................................18

SEC T I ON 2.07 T a x Wi t hholding ......................................................................................18

 

A R TICLE III R E P RE S ENTATIONS A N D W A R R A N TI E S OF S ELLE R ..........................18

 

SEC T I ON 3.01 O r g a ni z ation, Autho r i t y a nd Qu a l i fi ca tion of S e ll e r ................................18

SEC T I ON 3.02 No Co n fli c t ...............................................................................................19

SEC T I ON 3.03 O wn e rs h ip of the E qui t y I nt e r e st s ............................................................20

SEC T I ON 3.04 Go v e rnment a l Cons e nts and A ppro va l s ...................................................20

SEC T I ON 3.05 F inan c i a l I n fo r matio n ...............................................................................20

SEC T I ON 3.06 B ooks a n d R ec ords; Control s ...................................................................20

SEC T I ON 3.07 Ab s e nce of U ndisclosed M a t e ri a l L iabiliti e s ...........................................20

SEC T I ON 3.08 Condu c t in the O r dina r y Course ..............................................................21

SEC T I ON 3.09 L it i g a ti o n ..................................................................................................22

SEC T I ON 3.10 Compli a n c e with L a w s .............................................................................22

SEC T I ON 3.11 I ntelle c t u a l Prop e r t y .................................................................................24

SEC T I ON 3.12 I nsur a n ce ..................................................................................................27

SEC T I ON 3.13 R e a l Prop e r t y............................................................................................27

SEC T I ON 3.14 Pur c h a sed Ass e ts ......................................................................................28

SEC T I ON 3.15 Suf f i c ie n cy o f A ssets ...............................................................................28

SEC T I ON 3.16 Condition of Ass e ts ..................................................................................28

SEC T I ON 3.17 I nv e ntor i e s ................................................................................................28

SEC T I ON 3.18 Empl o y e e s a nd Empl o y ee B e n e fit M a tt e rs ..............................................29

SEC T I ON 3.19 Enviro n ment a l Matt e r s .............................................................................32

SEC T I ON 3.20 T a x e s ........................................................................................................32

SEC T I ON 3.21 M a te r ial Contr ac ts . ...................................................................................35

SEC T I ON 3.22 Produ c t s ....................................................................................................35

SEC T I ON 3.23 R e l a tionships with Suppli e rs, Cu s tom e rs a nd Distributor s ......................36

SEC T I ON 3.24 R e l a tionships with A f filiat e s ....................................................................36

SEC T I ON 3.25 B rok e rs .....................................................................................................37

SEC T I ON 3.26 C a pit a liz a tion ...........................................................................................37

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A R TICLE IV RE P RE S ENTATIONS A N D WA R R A NTI E S OF BU Y E R ............................38

 

SEC T I ON 4.01 O r g a ni z ation a nd Autho r i t y of B u y er ......................................................38

SEC T I ON 4.02 No Co n fli c t ...............................................................................................38

SEC T I ON 4.03 Go v e rnment a l Cons e nts and A ppro va l s ...................................................39

SEC T I ON 4.04 L it i g a ti o n ..................................................................................................39

SEC T I ON 4.05 B rok e rs .....................................................................................................39

SEC T I ON 4.06 F inan c i a l C a p ac i t y ; Solven cy ...................................................................39

 

A R TICLE V A CTI O NS P RIOR TO THE C L O S ING D A T E ............................... . .................39

 

SEC T I ON 5.01 Thir d - Par t y Cons e nts ...............................................................................39

SEC T I ON 5.02 Condu c t of B usiness Prior to the Closing ................................................39

SEC T I ON 5.03 B e st E f forts ..............................................................................................40

SEC T I ON 5.04 Confid e n ti a li t y .........................................................................................40

SEC T I ON 5.05 Notif i ca t ion of Ce r tain Ev e nts .................................................................40

SEC T I ON 5.06 E x c lusivi t y ...............................................................................................40

SEC T I ON 5.07 A c c e ss to I n fo r mation ..............................................................................40

SEC T I ON 5.08 Cros s e d B ooks a nd Re c ords a nd Soft wa re ..............................................41

SEC T I ON 5.09 T e rmin a t ion of A f filiate Contr ac t s ...........................................................41

 

A R TICLE VI A D D I T IONAL A G RE E M EN T S ............................... . .......................................41

 

SEC T I ON 6.01 Confid e n ti a li t y .........................................................................................41

SEC T I ON 6.02 B usiness R e lationship s .............................................................................41

SEC T I ON 6.03 Cros s e d Pa y ments ....................................................................................42

SEC T I ON 6.04 F urther Assu ra nc e s ...................................................................................42

SEC T I ON 6.05 B ulk T r ansf e r L aw s ..................................................................................42

SEC T I ON 6.06 No n - C o mpetition .....................................................................................42

SEC T I ON 6.07 Cooper a t ion ..............................................................................................44

SEC T I ON 6.08 T e rmin a t ion of Cur re nt L i ce n s e A g r ee ment ............................................44

SEC T I ON 6.09 Empl o y e e s a nd Empl o y ee B e n e fi t s ..........................................................44

SEC T I ON 6.10 Third P a r t y Cons e nt s ................................................................................45

SEC T I ON 6.11 I nte rc o m p a n y I nd e bted n e s s ......................................................................45

 

A R TICLE VII TAX M AT T ERS ............................................................... . ................................46

 

SEC T I ON 7.01 Conv e y a n c e T a x e s ...................................................................................46

SEC T I ON 7.02 T a x Alloc a tio n ..........................................................................................46

SEC T I ON 7.03 T a x Co o p e r a tio n .......................................................................................46

SEC T I ON 7.04 T a x R e turns ..............................................................................................46

SEC T I ON 7.05 Pur c h a se Pri c e Alloc a tion ........................................................................47

 

A R TICLE VIII CON D I T IONS TO C L O S IN G ............................... . ........................................48

 

SEC T I ON 8.01 B u y er Closing Conditions ........................................................................48

SEC T I ON 8.02 S e ller Closing Conditions ........................................................................49

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A R TICLE IX IN D E M NI F I C ATI O N ............................................................... . .........................50

 

SEC T I ON 9.01 Surviv a l of R e pr e s e n t a tions a nd W a r ra nti e s ............................................50

SEC T I ON 9.02 I nd e mnific a tion b y S e ll e r .........................................................................50

SEC T I ON 9.03 I nd e mnific a tion b y B u y er ........................................................................51

SEC T I ON 9.04 L imits on I n d e mnifi ca tio n ........................................................................51

SEC T I ON 9.05 Noti c e of L oss; Third Pa r t y Claims .........................................................52

SEC T I ON 9.06 T a x T re atm e nt of I n d e mnifi ca tion Pa y ment s ...........................................53

SEC T I ON 9.07 E f f e c t of I n v e stig a tion; Ef fec t on I n d e mni t y ...........................................53

SEC T I ON 9.08 No Dou b le R ec ov e r y ................................................................................54

SEC T I ON 9.09 R e m e di e s ..................................................................................................54

 

A R TICLE X T E R M IN A TION ............................................................... . ...................................54

 

SEC T I ON 10.01 T e rmi n a tion ............................................................................................54

SEC T I ON 10.02 E f f e c t o f Te rmin a tion .............................................................................55

 

A R TICLE XI G ENER A L P RO V I S IONS ............................................................... . .................55

 

SEC T I ON 11.01 E x p e n s e s .................................................................................................55

SEC T I ON 11.02 Noti c e s ...................................................................................................55

SEC T I ON 11.03 Public Announ ce ments ..........................................................................56

SEC T I ON 11.04 S e v e r a b ili t y ............................................................................................57

SEC T I ON 11.05 Entire Ag ree ment ...................................................................................57

SEC T I ON 11.06 Ass i g n men t .............................................................................................57

SEC T I ON 11.07 A m e n d ment; R e medi e s Cumul a tive ......................................................57

SEC T I ON 11.08 W a iv e r ....................................................................................................58

SEC T I ON 11.09 No Thi rd - P a r t y B e n e fi c i a ri e s .................................................................58

SEC T I ON 11.10 Curr e ncy .................................................................................................58

SEC T I ON 11.11 G o v e rning L a w ......................................................................................58

SEC T I ON 11.12 W a iv e r of J ury T r ial ...............................................................................58

SEC T I ON 11.13 Attor n e y s ’ F e e s ......................................................................................59

SEC T I ON 11.14 Time o f Ess e n c e .....................................................................................59

SEC T I ON 11.15 Counterp a rts ...........................................................................................59

SEC T I ON 11.16 Spe c if i c P e r f orm a n c e .............................................................................59

 

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EXHI B I T S

 

E x hib i t A       F orm of S e l l e r L i ce nse A g r ee ment E x hib i t B       F orm of B u y e r L i ce nse Ag ree ment E x hib i t C       S upp l y A g re e ment T e r m s

 

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IN D EX OF D E F INED TER M S

 

 

 

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P a tents	6	S e ll e r I nd e mnifi e d P a r t y	50
P e rmit	8	S e ll e r L i ce nse A gre e me n t	10
P e rmitt e d En c umbr a nc e s	8	S e ll e r R e turns	46
P e rson	8	S e ll e r ’ s Kno w le d ge	10
Plans	31	Soft wa re	10
Post - Closing T a x P e riod	9	Str a ddle Period	10
Pr e- Closing T a x P e riod	9	Supp l y A g re e ment	10
Pur c h a se Price	9	T a n g ib l e Pe rson a l P rop e r t y	10
Pur c h a s e d Ass e ts	13	T a x	10
Pur c h a s e d P e rmits	9	T a x R e turn	11
RCRA	3	T a x e s	10
R ea l P rop e r t y	9	T a x ing Autho r i t y	11
R e f e r e n c e D a te	9	T e rmin a t i on of the A f filiate Contr ac ts	41
R e g is t e r e d I ntell e c tual P rop e r t y	9	T e r r i t o r y	11
R e le a se	9	Third Pa r t y Claim	51
R e quir e d Consents	48	T ra de Se c r e ts	6
R e solu t ion P e riod	47	T ra d e m a rks	6
R e strict e d B usiness	42	T ra ns ac t i on E x p e ns e s	11
R e strict e d P a rti e s	42	T ra nsf e r re d Empl o y e es	44
R e view P e riod	47	T ra nsi t ion S e rvi ce s A g re e ment	9, 11
SEC	9	T rea su r y R e gulations	11
S ec urities T ra ns f e r Agre e ment	9	WARN Ac t	44
S e ll e r	1

 

 

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This AS S ET A N D EQUI T Y P U R C HA S E A G R EE M ENT (this “ A g re e men t ” ), d a ted a s of M a r c h 29, 2019, is b y a nd a mo n g C y t ori Th e r a p e ut i c s, I n c ., a D e la w a re c orp o r a t i on (“ S e l l e r ” ), L o r e m V a s c u l a r P te. L td., a c ompa n y i n c orpo ra t e d in S i n g a po r e ( “ B u y e r ” ) , a nd with r e sp ec t to Se c t i on 6.06 o n l y , C y tori Th e r a p e ut i c s, K .K., a k a bushiki k a is h a o r g a ni z e d un d e r the la w s of J a p a n.

 

S e ll e r a nd B u y er a re s om e times r e f e rr e d to h e rein individual l y a s a “ Par t y ” a nd

col l ect i ve l y as the “ Pa rti e s .”

 

RECITALS

 

WH E REA S , S e l l e r owns a ll of the is s u e d a nd outs t a nding e qui t y in te r e sts of

C y tori L td., a priv a te l i m i ted c ompa n y re g is t e r e d in the United K in g dom ( “ C y t o ri U K ” );

 

WH E REA S , S e l l e r a nd C y t o ri U K a re e n g a g e d i n the B usiness;

 

WH E REA S , S e l l e r d e s i r e s to s e ll to B u y e r, a nd B u y e r d e sir e s to pur c h a s e f r om S e l l e r, the P ur c h a s e d As s e ts, a nd in c onn e c t i on the re with, B u y e r is w i l l ing t o a ssu m e f r om S e l l e r the A ssu m e d L i a bi l i t ies, a ll upon the t e rms a nd s u bje c t t o the c ondi t ions s e t fo r th he re in;

 

WH E REA S , S e l l e r d e s i r e s to s e ll to B u y e r, a nd B u y e r d e sir e s to pur c h a s e f r om S e l l e r, a ll of the is s u e d a nd outs t a nding e qui t y i nte re sts of C y tori UK ( su c h e qui t y in t e r e st s , c ol l ec t i v e l y , t h e “ Equi t y I nt e r e s ts ” ) a nd

 

WH E REA S , c on c ur re n t l y with the Clos i n g , t he P a rti e s (or C y tori UK, a s a ppl i ca ble) s h a ll e nter in t o the A n c i l la r y A g r ee m e nts.

 

NOW, TH E RE F OR E , in c onside r a t i on of the mu t u a l b e n e fits to b e d e riv e d f r o m th i s A g r ee ment, the r e p r e s e ntations, w a r ra nt i e s, c ondi t ions, a g r ee ments a n d promises c on t a ined h e r e in a nd other g ood a nd v a luable c onsid e r a t i on, the r e ce ipt a nd suf f ici e n c y of whi c h a r e h e r e b y a c knowl e d g e d, the Pa r t i e s, in t e nding to b e leg a l l y bound, h e r e b y a g r e e a s follows:

 

A R TICLE I DE F INIT I ONS

SEC T I ON 1.01 C e rt a in D e fin e d T e rm s . F or p u rpo s e s of this A g re e ment:

 

“ A c t i o n ”   means   a n y   claim,   act i on,   g rieva n ce,   sui t ,   arbitrat i on,   i nqui r y , pro c eedi n g , in v est i gat i on, a udi t , heari n g o r l i t i g a t ion b y or bef o re a n y G o vernmental Authori t y or a rbitrator.

 

“ A f filiat e ” means, with r e spect to a P erson, a n y other P erson that, dir e ct l y or ind i r e ct l y , thro u g h one or more in t ermediaries, controls, is controlled by or is under com m on control with such first P erso n , for so lo n g as s u c h P erson controls, is co n trolled b y or is un d er com m on control with such first P erson.

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“ An c i l la r y A g re e ment s ” me a ns the B u y e r L i c e n s e A g r ee ment, the S e l l e r L i c e nse Ag ree ment, the S upp l y Ag ree ment, the T r a nsi t ion S e rvi ce s A g r ee ment, the R e v e rse T r a nsi t ion S e rvi ce s A g r ee ment, t h e Assi g nment a nd Assump t ion A g r ee ment, the Assi g nment of L ea s e , the I ntell e c tual P rop e r t y Ass i g nment, a nd Se c urities T r a nsf e r A g r ee men t .

 

“ Assi g nment a nd Assu m pt i on A g re e men t ” means the B i l l of S ale and Ass ig nment and Assump t ion Agre e ment to be e x ecuted b y S el l er and B u y er at t h e Clos i n g , in form and subs t ance reasonab l y a c c eptable to B u y e r.

 

“ Assi g nment o f L ea s e ” means the Ass i g nment o f L ea s e to be e x ecuted b y S el l er at the Clos i ng with r esp e ct to the L ea s ed Real P r o per t y (other than such L e ased Real P ro p er t y of C y t o ri U K, which will b e ind i rect l y t r a ns f er r ed to B u y e r th r o u g h the sale o f C y t o ri U K ) , in form and subs t ance r e aso n ab l y ac c eptable to B u y e r.

 

“ B ooks a nd R ec ord s ”) means the books of ac c ount, g en e r a l, financial r e cords, invo i ces, shipping reco r ds, supplier, correspon d ence and other docum e n ts, r e cords and files, sales and promotional l i t er a tu r e, custo m er l i sts a n d other sales r e lated material s , electronic mail, electronic r ecords, all other books and r e cords o f S el l er and a n y r i g hts theret o , in each c as e , e x clud i ng the Clin i cal Fi l e s , a n y Contracts and a n y P lan s .

 

“ B usines s ” means S el le r’s c ell thera p y busine s s of e x tract i ng a unique m i x ed population of stem, pr o geni t or and re g en e r a t i ve c el l s from human and/or ani m al adipose t i ssue for the t r eat m ent of dis e ase and for oth e r p u rpo s es ut i l iz ing proprieta r y h ardw a re and softw a r e - based devi c es and sin g l e -use r e a g ents and cons u mable set s , includi n g but not l i m i ted to S el l er’s cell banki n g e x pertise a n d technolo g y .

 

“ B usiness D a y ” m eans a n y d a y that is not a S at u r d a y , a S un d a y or oth e r d a y on which banks a r e closed i n S an Die g o, C al i fornia.

 

“ B usiness I ntell e c tual P rop e r t y ”   means all I nt e l l ectual P rop e r t y ow n ed b y , or filed b y or on behalf of, S el l er or a n y of i t s Affiliates t hat is being or has been used in or cr e a t ed for use in the B usiness in the Terri t o r y .

 

“ B u y e r L i ce nse A gr e e men t ” means the L i c en s e Agree m ent to be e x ecuted b y C y t o ri J apan and B u y e r at t he Clos i ng wh e r e b y B u y e r wi l l l i c ense cer t ain Intel l ectual P roper t y to C y t o ri J apa n , in form at t ached h er e to as E x hib i t A .

 

“ C a pi t a l S toc k ” m e ans (a ) a n y sh a r e s, in te r e st s , p a rticipations or other equ i valents (howev e r des i g nate d ) of capi t al stock of a c o rp o r a t i on; (b) a n y ow n ersh i p in t er e sts in a P erson other than a corpo r at i on, including memb e rship in t er e st s , partn e rship in t er e st s , jo i nt venture in t er e sts and beneficial in t er e st s ; and ( c ) a n y w arrants, opt i ons, conver t ib l e or e x chan g e able securities, subs c riptions, ri g h t s (i n clud i ng a n y p reemp t ive or si m i l ar ri g ht s ), cal l s o r oth e r r i g hts to purchase or acqui r e a n y of the for e going.

 

“ Cl i nic a l F i l e s ”  mea n s ( a ) all cl i nical and r eg u l ato r y files, filin g s, correspon d ences and r eports (includ i ng sub m is s i on information) wi t h a n y Go v ernmental Authori t y ; ( b ) all p recl i nical r e s ea r ch, testi n g , v a l i dat i ons and data; and ( c) all cl i nical trial or

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stu d y do c u m e nts, proto c ols, r e ports, tri a l d a te (i n c lud i ng c omp l e te mast e r fil e s, c l i nic a l sum m a r y r e ports, d a ta li s t i n g s, d a ta t a bles, a nd a ll r a w d a t a us e d to gen e r a te su c h ta b les a nd l i st i n g s ) .

 

“ Code ” means t h e Unit e d S tates I nt e rn a l R even u e Code of 1986, as ame n ded.

 

“ Contr ac t ” m e ans a n y agreement, contr a c t , L e ase, obl i g at i on, pr o m i se or undertaki n g (w h ether w ritten or or a l and w h ether e x pr e ss or impl i ed).

 

“ Contro l ” (includ i n g  t h e terms “ c ontroll e d b y ” and “ und e r c om m on c ontrol with ”), with r e sp e ct to the r e lationship betw e en or amo n g two or mo r e P ersons, means t h e possession, direct l y o r ind i r e ct l y or as trustee, pe r sonal r e pr e sentative or e x ecutor, of the power to direct or c ause the d i r e ct i on of the af f airs or man a g ement of a P erso n , whether thro u g h the ownership of vot i n g s e c u rities, as trust e e, p ersonal r e p r esentative or e x ecu t or, b y Cont r act, cr e dit arra n gement or oth e rwis e .

 

“ Conv e y a n c e T a x e s ” means a n y and all sales, use, value added, g o o ds and services, trans f er, doc u menta r y , stam p , r e cord i ng and si m i l ar ta x es, f e es and cha r g es, together with a n y in t e r est, penal t i es, or addi t ions t o tax wi t h r e spect t h e r e to.

 

“ Cur re nt Good M a nufa c turing P ra c t i c e ” m e a n s current g ood man u facturing pr a ct i ce for the methods used in, and the f a ci l i t ies and controls used f o r , the manufactu r e of S el l er’s prod u cts, all as s et forth from t i me to t i me b y the F D A purs u ant to the F D C A (includ i n g re g ulations, rules, g uida n ce, and pol i c i e s ), and si m i l ar re g ulation s , rules, standards, and pol i c i es as pres c ribed b y Gov e r n mental Autho r i t ies in other jurisd i ct i ons.

 

“ C y tori J a p a n ” m e ans C y t ori T h e r apeut i cs, K .K. , a k abushi k i k aisha o r gani z ed under the laws o f J apan.

 

“ Dis c losure S c h e dul e ” m eans the Disclosure S ch e dule at t ac h ed h er e to, d at e d as of the date he r eof, d el i ver e d b y S el l er to B u y er in co nnect i on with t his A g r e e ment.

 

“ En c umbr a n c e ” means a n y s e curi t y in t e r est, pledge, h y pot h ecat i on, mort g a ge, l i en, encumbra n ce, c h a r g e, claim, com m uni t y or other mari t al pro p er t y in t e r est, condi t ion, equi t able in t er e st, opt i on, ri g ht of w a y , e asement, encroachment, servitud e , ri g ht of first opt i on, ri g ht of first r e fusal or si m i l ar r e striction, includ i ng a n y r e striction on use, vot i ng (in the case of a n y s e curi t y or equi t y in t er e st), trans f er, r i g ht to r e ceipt of income or right to e x er c ise of a n y other at t ribute of ow n er s hi p .

 

“ Environm e n t ” means s oi l , land surface or subsurfa c e strata, sur f ace waters (includ i ng n av i g able w a ters and oc e an w aters), g roun d waters, d r ink i n g water supp l y , stream sedi m ents, amb i ent air ( i nclud i ng indoor a i r), pl a nt and ani m al l i fe and a n y other environmental medium or natural reso u r ce.

 

“ Environm e ntal L a w s ”   shall mean a n y L a w r e l at i ng to pol l ut i on, protect i on or cleanup of t h e Environ m en t , includin g , CER C L A, the Resources C ons e rv a t ion and Recov e r y Act of 1976, as amended (“ RCR A ”), and a n y other f e d er a l, state, and l o cal l e g al r e qui r ements r e lating t o :   ( a ) a Rel e ase or the Cleanup of a Ha z ardous Ma t erial; (b) the manufactu r e, g e n er a t i on, formu l at i on, pro c ess i n g , la b el i n g , d is t ribution, in t rodu c t i on in t o com m er c e, use,

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tr ea t m e nt, h a ndl i n g , sto r a g e , or tr a nsport a t i on of a H a z a rdous M a te r ial; a nd ( c ) e x posure of P e rsons, including e mp l o y e e s, to a H a z a r d ous M a te r ial, includin g , wi t hout l i m i tation, those r e lating to the m a n a g e m e nt, us e , stor a g e , dispo s a l, c le a nup or r e moval of a sb e sto s , a sb e sto s - c ontaining ma t e ri a ls, pol y c hlori n a ted biph e n y ls or a n y ot h e r Ha za rdous M a te r ial.

 

“ Environm e ntal L i a bi l i t ie s ” means a n y L i abi l i t ies or l osses arising from or under a n y Environ m ental L aw, includin g , without l i m i t at i on, those consist i ng of or r e lating t o : ( a ) a n y fine, penal t y , ju d g ment, aw a rd, set t lement, l e gal or adm i nis t r a t i ve p r oc eedi n g , L oss, claim, demand or r e sponse, re medial or inspect i on cost or e x pense arising under a n y Environmental L a w; (b) fina n cial r e sp o nsib i l i t y under a n y Env i ronmental L aw for c l ea n up costs or correct i ve act i on, includi n g a n y cl e anup, r e mo v al, a b ateme n t, containment or other remediat i on or r esponse act i ons (“ Cle a nup ” ) r e q u ired b y a n y Environmen t al L a w (wheth e r or not such Cleanup has been r e quired o r r e q u ested b y a n y Govern m ental A u thori t y or a n y other P e r son); or ( c) a n y other comp l iance, co r r e ct i ve o r r e medial measu r e r e qu i r e d under a n y Environ m ental L a w . The terms “r e moval,” “ r e media l ” and “r e sponse act i o n ” include the t y pes of act i v i t ies cover e d b y the United S tates Compre h e nsive Environmental Re s ponse, Compensat i on a n d L i abi l i t y Act o f 1980 (“ CER C L A ”).

 

“ F D C A ” means the F ed e r a l Foo d , Dr u g , and Cosmetic Act and F D A re g u lations promul g ated p u rsuant t h e r e to.

 

“ F und a m e ntal Rep re s e n t a t i on s ” means the r e p r e s enta t ions and w a rrant i es set forth in S ec t i on 3.01 (O r g ani z at i on, Authori t y and Qu a l i ficat i on of S el l er), Se c t i on 3.03 (Own e rship of the Equi t y I nte r est s) , Se c t i on 3.14 (Purchased A ssets), S ec t i on 3.19 (Environmental Mat t ers), S ec t i on 3.20    (Ta x es),   S ec t i on 3.25    ( B ro k ers),   S ec t i on 3.26    (Capi t al iz at i on),   S ec t i on 4.01 (O r g ani z at i on and Aut h ori t y  of B u y e r ), S ec t i o n 4.05 ( B ro k ers), and S ec t i on 4.06 (Fina n cial Capaci t y ; S olven c y ) .

 

“ GAA P ” means United S tates g ene r al l y  ac c epted account i n g  princip le s as in eff e ct from t i m e to t i me and appl i ed consistent l y throu g hout t he p eriods invo l ved.

 

“ Gov e rnm e n t a l Autho r i t y ” m e ans a n y fore i g n, domestic, f e der a l, ter r i t orial, nat i onal, supranat i onal, state, provincial, l o cal o r other g o v ernment, g o v ernmental, re g ulato r y , self-re g u l ato r y o r adm i nis t r a t i ve authori t y , not i fied bo d y , a gen c y or co m m i ss i on or a n y co u rt, tribunal, board, bur e au or jud i cial or arbitral bo d y .

 

“ Gov e rnm e n t a l O r d e r ” means a n y or d er, w rit, jud g ment, in j unct i on, d e cree, assessment, st i pulation, determ i nat i on or a w ard e ntered b y or with a n y G overnmental Authori t y or a rbitrator.

 

“ H a z a rdous M a t e ri a l ” s hall mean a n y to x ic subs t ance or ha z ardous waste, pol l utant, or subs t ance, contaminant, or a n y to x ic or ha z ardous consti t uent o f a n y s u ch subs t ance or waste, includ i n g a n y s ubstance re g ulated und e r or d e fined b y Environ m ental L aws.

 

“ I nd e bted n e s s ” of a n y P e rson me a ns, without d upli ca tion, ( a ) a ll obli g a t ions of su c h P e rson for b o r r o w e d mon e y , (b) a ll obl i g ati o ns of su c h Person e v iden ce d b y , or whi c h c ustom a ri l y would be eviden ce d b y , bonds, deb e ntur e s, notes or simil a r instrum e nts, ( c ) a ll r e imburs e ment oblig a tions of su c h P e rson with r e sp ec t to lette r s of c r e dit a nd simil a r

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instruments, (d) a ll obl i g a t i ons of su c h Pe rson und e r c ondi t ional s a le o r other t i t l e r e tention a gr e e m e nts r e l a t i ng to p rop e r t y o r a s s e ts pur c h a s e d b y su c h P e rson, ( e ) a ll obl i g a t i ons o f su c h P e rson incu r r e d, is s u e d or a ssu m e d a s the d e f e r r e d pur c h a se pri c e o f prop e r t y  other than acc ounts p a y a b l e incu r re d a nd p a id on te r ms c usto m a r y in the busin e ss of su c h P e rson (it b e ing und e rstood that the “ d ef e r re d p u r c h a s e pri ce ” in c onn ec t i on with a n y p u r c h a se o f proper t y or a ssets sh a ll include on l y that portion of the pur c h a se pri c e whi c h is d e f e r r e d b e y ond the d a te on whi c h the pur c h a se is a c tual l y c onsummat e d), ( f) a ll obl i g a t i ons s ec ur e d b y ( o r for wh i c h the holder of s u c h I nd e b t e d n e ss h a s a n e x is t ing r i g ht, c ont i n g e nt o r othe r wis e , to be s ec u r e d b y ) a n y l i e n on prop e r t y ow n e d or ac qui r e d b y su c h P e rson, wh e t h e r or not t he obl i g a t i ons s e c ur e d the re b y h a v e b ee n a ss u med, (g) a ll obl i g a t i ons of su c h P e rson und e r fo r w a rd s a les, futu re s, opt i ons a nd other si m i l a r h e d g i n g a r r a n g e ments (in c lud i ng in t e r e st r a te h e d g i n g o r p r ote c t i on a gr e e m e nts), (h) a ll obl i g a t i ons of su c h P e rson t o pur c h a se or othe r wise p a y f o r me rc h a ndise, mat e ri a ls, s uppl i e s, se r v i ce s or oth e r p r o p e r t y un d e r a n a r r a n g e ment wh i c h provid e s that p a y ment for su c h me rc h a ndise, mat e ri a ls, supplies, s e rvi c e s or o ther prop e r t y sh a ll be made reg a rdl e ss o f wh e ther d e l i v e r y of s u c h me rc h a ndise, ma t e ri a l s, supplies, s e rvi c e s or other pro p e r t y is e v e r made or tend e r e d, (i) a ll ca pi t a l iz e d l e a se obl i g a t i ons of su c h P e rson, (j) a cc r u e d b ut un p a id T a x e s, a nd ( k ) a ll g u a r a n t i e s b y s u c h P e rson of a n y obl i g a t i on mentioned in the fo re g oi n g c laus e s (a) th r o u g h (j ).

 

“ I nd e mn i fi e d P a r t y ” m e a ns a B u y er I nd e mnified P a r t y or a S e ll e r I n d emnifi e d

P a r t y , a s t h e ca s e m a y be.

 

“ I nd e mn i fi e d T a x e s ” m e a ns ( a ) a ll T a x e s (or the no n - pa y m e nt the re of) impos e d on or with r e sp ec t to the S e ll e r, (b) a ll T a x e s (or the no n - p a y m e nt the re o f) impos e d on or with r e sp ec t to C y tori UK wi t h r e sp ec t to a n y Pre - Closing T a x P e riod ( a s d e termin e d, with r e sp ec t t o a n y Str a ddle P e riod, in acc ord a nce with the provisions of S ec t i on 7.02 ); ( c ) a ll T a x e s of a n y a f f iliat e d, c onsolidat e d, combin e d or unit a ry group of whi c h the S e ll e r or C y t o ri UK is or w a s a memb e r on or prior to the Closing D a te, including pursu a nt to T r e a su r y  Re g ulations S ec tion 1.1502 - 6 or a n y a n a l o g ous or similar sta t e , loc a l, or no n -U.S. L a w ; (d) a ll T a x e s impos e d upon the S e ll e r or C y t o ri UK a s a tr a nsfer e e or su cce ssor, or b y c ontra c t, L aw or othe r wi s e whi c h T a x e s r e late to an e v e nt or t r a ns ac tion o cc ur r i n g b e fore the C l osing; (e) the c ost o f pr e p a ri n g , filin g , a men d ing a nd d e f e ndi n g a n y T a x R e turn for a Pr e - C losing T a x P e riod or Str a ddle P e riod; ( f ) a ll T a x e s a ttribut a ble to a n y i n c lusion und e r S ec tion 9 51 or S ec tion 951A of the Code b y B u y e r or i t s A f filiat e s a t the e nd of t he ta x a ble y ea r of C y t o ri UK that includ e s, but do e s not e nd on the Cl o sing D a te, a risi n g out of income acc ru e d or tr a n s ac tions und e rt a k e n b y C y t o ri UK on or prior to the Closing D a te, ( g ) a n y T a x impos e d on the S e ll e r or C y tori UK a s a r e sult of a n e l e c tion made b y s u c h S e ll e r or C y tori UK on or b e fore the Closing D a te un d e r S ec tion 108(i) of the C o d e ; a nd ( h) a n y T a x e s for a Pos t - Closing T a x P e riod with r e sp ec t to a n y a djustment to income und e r Code S ec tion 481 of the Code (or a n y simil a r provision of L a w) or othe r wise a s a r e sult of a n y c h a n g e in method of acc ounti n g of C y tori U K to the a c c ru a l method of a cc ounti n g from the c a sh r e c e ipts a nd disbursements m e thod of acc oun t in g .

 

“ I nd e mn i f y i n g P a r t y ” me a ns S e ll e r pursu a nt to S ec t i on 9.02 a nd B u y er pursu a nt to S ec t i on 9.03 , a s the c ase m a y b e .

 

“ I ntelle c tual P rop e r t y ” me a ns a ll wo r ldwide int e ll ec tual prop e r t y a nd all ri g ht, title a nd int e r e st th e r e i n , includin g , without lim i ta t ion, ( a ) a ll p a tents a n d p a tent a pplic a tions,

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ut i l i t y models, d e si g n re g is t r a t i ons a nd c e rtifi ca t e s of invention a nd other g ov e rnm e ntal g r a nts for the prot ec t i on of i nv e nt i ons or industri a l d e si g ns (in c lud i n g a ll r e lat e d c ont i nu a t i ons, c ont i nu a t i on s - in - p a rt, div i sionals, r e is s u e s a nd r e e x a m i n a t i ons), invention disclosur e s, ut i l i t y models, invention discl o sur e s, inventions a nd di s c ov e ri e s, wh e t h e r or not p a tent e d or p a tent a ble a nd wh e ther o r not r e du c e d to pr a c t i ce , i m prov e m e nts the re to, a nd other r i g hts of invention (the i t e ms in c lause ( a ), c ol le c t i v e l y , “ P a tent s ”) ; (b) r e g is te r e d a nd un re g is t e red tr a d e ma r ks, s e rvi c e ma r ks, tr a de n a mes, tr a d e dr e ss, b r a nd ma r ks, b r a nd n a mes, l o g os, prod u c t n a mes a nd sl o g a ns, including a n y c om m on law r i g hts, re g is tr a t i ons a nd a ppl i ca t i ons for t h e f ore g oing (the i t e ms in c lause (b ) , c ol l ec t i v e l y , “ T ra d e ma r ks ” ) ; ( c ) a ll r eg is te r e d a nd un re g is t e r e d c o p y r i g hts, in both publ i sh e d a nd unpubl i sh e d wo r ks includi n g c op y r i g hts in c ompu t e r s oft wa r e , c o p y r i g htable wo r ks, w e bsi t e c ontent, other ri g hts of a utho r ship a nd e x pl o i t a t i on, a nd a n y a ppl ic a t i ons, re g is t r a t i ons a nd r e n e w a ls in c onn e c t i on the r e with (the i t e ms in c l a use (c), c ol le c t i v e l y , “ Co p y r i g ht s ” ) ; (d) a ll ri g hts in mask wo r k s ; ( e ) a ll know - how, tr a de s ec r e ts, c onfid e nt i a l or prop r iet a r y inf o rm a t i on, c usto m e r l i st s , te c hnic a l info r mation, d a ta, c o n fid e nt i a l or prop r iet a r y pro c e ss t e c hnolo g y , pla n s, dr a wi n g s a nd bl u e pr i nts (the i t e ms in c lause ( e ), c ol le c t i v e l y , “ T r a de S ec r e t s ”) ; ( f) a ll S oft wa r e ; (g) a ll r i g hts in in t e rn e t w e b si t e s a nd in t e rn e t domain n a mes (su c h w e b si t e s a nd in t e rn e t d omain n a mes c ol l ec t i v e ly ref e r r e d to a s “ Dom a in N a mes ” ) ; a nd (h) ri g hts to e x c lude othe r s f r om a p p rop r iati n g a n y of su c h I ntell e c tual P rop e r t y , includi n g the ri g ht to  sue for a n   r e medi e s a g a inst p a st,  p r e s e nt a nd futu r e in f ring e ments of a n y o r a ll   o f the fo r e g oi n g a nd r i g hts of prio r i t y a nd prot e c t i on o f in t e r e sts th e r e in, a nd a n y oth e r pro p ri e ta r y , intelle c tual prop e r t y a nd other r i g hts r e lati n g to a n y o r a ll of the fo r e going a n y w h e r e in the wo r ld.

 

“ I ntelle c tual P rop e r t y A ss i g nmen t ” me a ns the assi g nment ( s) tr a ns f e r r i n g a ll of S e ll e r ’ s ri g ht, title a nd i n te re st i n a nd to the B usiness I ntell e c tual Prop e r t y of S e ll e r , in fo r m a nd subst a n c e re a son a b l y a c c e ptable to B u y er.

 

“ I nv e ntori e s ” me a ns a n y a nd a ll prod uc t invent o ri e s of the B usines s , w h e r e ver loc a ted, including a ll finished g oods, wo r k - in - p r o ce ss, r a w mat e r i a ls, sp a re p a rts a nd a ll other mat e ri a ls a nd supplies t o be us e d o r c onsu m e d b y S e ller or its A f f iliates in the prod uc tion of finished g oods for the B u sines s .

 

“ I R S ” m ea ns the I n t e rn a l R e v e nue S e rvice of the United St a tes.

 

“ L a w ” me a ns a n y  appli ca ble for e i g n, int e rn a tion a l, f e d e r a l, n a tion a l, supr a n a tion a l, stat e , p rovinci a l, loc a l, muni c ipal or simil a r statute, la w , ordin a n ce , re g ulation, rul e , c o d e , ord e r, r e qui r ement or ru l e of law (in c l uding c ommon la w ), in eac h of t h e fore g oi n g ca s e s, a s a mend e d o r may be a mend e d.

 

“ L ea s e ” m e a ns a n y l e a s e of R ea l P rop e r t y or o t h e r le a s e or r e ntal agr e ement, or li ce ns e , r i g ht to use o r i n stallm e nt a nd c onditional s a le a g re e ment to whi c h S e ll e r is a p a r t y and a n y ot h e r Contr ac t p e rt a i ning to the le a si n g or u s e of a n y T a n g ible P e rso n al Prop e r t y .

 

“ L ea s e d R ea l P rop e r t y ” me a ns (i) the R ea l Prop e r t y l ea s e d b y S e ll e r o r C y t o ri UK, a s te n a nt, d e scrib e d on S ec t i on 3.13( a ) o f t h e Dis c losure S c h e dul e , a nd (ii) a ll ea s e ments, li ce ns e s, r i g hts and a ppurten a n ce s r e lati n g to the fore g oin g .

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“ L i a bi l i t ie s ” me a ns a n y a nd a ll d e bts, l i a bi l i t ies a nd obl i g a t i ons, wh e ther acc r u e d or fi x e d, a bsolute or c ont i n g e nt, known or u nknown, disputed or u n d ispu t e d, matu re d or unmatu re d or d e te r m i n e d or d e te r m i n a b l e , incl u ding those a rising und e r a n y L a w, A c t i on or Gov e rnm e ntal O r d e r a nd those a rising under a n y Contr ac t, a g r ee ment, a r ran g e m e nt, comm i t m e nt or u n d e rt a ki n g .

 

“ L i ce ns e d   I ntelle c t u a l P rop e r t y ” m ea ns a ll I nte l le c tual Prop e r t y lic e nsed b y a P e rson to S e ll e r or a n y its A f filiat e s that is b e ing or h a s be e n us e d by S e ll e r or a n y of its A f filiat e s in the B usiness in the T e r r ito r y .

 

“ M a te r ial Adv e rse E f f ec t ” means (a) with r e sp e ct to S el l er, a n y circu m stance, cha n g e in or ef f ect on the B usi n ess in the T erri t o r y t h at is mat e rial l y a d verse to t h e r esul t s of oper a t i ons, as s ets, L iabil i t i es or the fina n cial condi t ion of the B usiness in t h e T e rrito r y ; provi d e d , how e v er , that “Mat e rial Adverse Ef f ec t ” shall not include the follow i n g , and none of the followin g , ei t her alone o r in comb i nat i on, shall b e consider e d in determ i n ing whether th e re has been a “ M aterial Adv e rse E f f e ct”: ( i ) events, ci r cu m stances, cha n ges or eff e cts that gene r al l y aff e ct the industries in which the B usiness o per a tes in t h e T e rri t o r y (includ i ng   l e g al and re g ulato r y cha n ges) to the e x tent such conditions do not disproport i onate l y i m p act the B usiness in the Terri t o r y compa re d to other businesses that oper a te in the same indust r y or industries as the B usiness in the T err i to r y and as compared to the indust r y as a who l e; (i i ) gene r al econom i c or pol i t i cal condi t ions or events, circums t an ce s, changes or ef f ects a ffect i n g  the secur i t i es markets or c r e dit mar k ets g en e r a l l y ; (ii i ) c h a n g es arisi n g from the c onsummation of the transact i ons contemplat e d b y , o r the annou n cem e nt of t h e e x ecut i on of, t h is A g r eement; (iv) a n y circums t an c e, c h a n g e or ef f ect t h at r e sul t s from a n y a ct i on taken p ursu a nt to or in a c cord a n ce with th i s A g r e ement or at r e quest of B u y e r; ( v ) cha n g es caused b y a material worseni n g of current condi t ions caus e d b y acts of terrorism or war (wheth e r or not declare d ) occu r ring a fter the date he r eof or a n y n a tural or m a n-made disas t er or acts of God; a n d (vi) a n y m at t er of which B u y er is a w are on the d ate her e o f sole l y to the e x tent set forth on the D i sclosure S chedule and (b) with r e s p ect to B u y e r, a n y ci r cums t an c e, ch a n g e or e ff e ct that is ma t erial l y adv e rse to the abi l i t y of B u y er to cons u m m ate ti m e l y the tran s a c t i ons contemplated b y th i s A g r eement.

 

“ N e utr a l A c c ount i ng F i r m ” means an inde p end e nt account i n g f i rm of n a t i onal l y r e c o g ni z ed standing that is not at the time it is to be eng a g ed he r e u nder re ndering s e rvices to a n y P ar t y , or a n y A f filiate of ei t her, a nd has not do n e so within t he two y e ar pe r iod prior ther e to.

 

“ O cc u p a t i on a l S a f e t y a n d H ea l t h L a w ” means a n y L aw d esi g n ed to provide safe and hea l thful worki n g c o ndi t ions and to r e du c e o c cupat i onal sa f e t y and he a l t h ha z ards, includi n g the Occupat i onal S af e t y and Heal t h Act, and a n y pr o g r am, whether g o vernmental or private (such as those promulg a ted or sponsored b y in d ust r y assoc i at i ons and insurance companies), desi g ned to p rovide sa f e and heal t hful worki n g c o ndi t ions.

 

“ Op e n S ource S oft wa r e ” means a n y S oft w are that is subject to, dis t r ibu t ed, transm i t t ed, l i censed or otherwise made avai l ab l e under a n y s o - cal l ed “ publ i c l i cense,” “open source l ic ense,” “f r ee l ic ense,” “indust r y standard l i cense,” “in t el l ectual p r oper t y pool l icens e ” or si m i l ar l i cense that r e quires, as a condi t ion of use, mod i ficat i on and/or dis t ribution of such S oftware that oth e r S of t ware i n corpo r ated in t o, derived f rom or dis t ributed with such S oftwa r e be ( a) disclosed or dis t ributed in sour c e c o de f orm, ( b) l i censed for t h e purpose of maki n g

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d e riv a t i ve w o rks, or ( c ) be r e dis t ribut a ble a t no c h ar g e , includi n g a n y v e rsion of a n y o f the following l i ce ns e s: G N U G e n e r a l P ubl i c L ic e ns e , G N U L ib r a r y or “ L e ss e r” P ubl i c L i c e ns e , or a n y subs t a nt i a l l y si m i l a r l i ce ns e .

 

“ O r dina r y Cour s e of Busines s ”   means, with r e spect to an act i on tak e n b y a P erson, that such a ct i on ( a ) is consis t ent i n nature, scope and m a g ni t ude with t he past pr a ct i ces o f such P erson and is ta k e n in the ordina r y course of the normal, d a y -to- d a y ope r at i ons of such P erson; (b) does not r e q uire authori z at i on b y t h e board of d i r e ctors o r shar e holders o f such P erson (or b y a n y Pe rs o n or g roup of P ersons e x er c is i n g si m i l ar authori t y ) and does not r e quire a n y other se p ar a te or sp e cial authori z at i on of a n y nature; and ( c ) is si m i lar in nature, scope and ma g ni t ude to act i ons c u sto m ari l y t aken, without a n y sep a r a te or sp e c i al authori z at i on, in the ordina r y course of the n o rmal, d a y -t o -d a y ope r at i ons of other P ersons that a re in the same l i ne of business as such P erso n . No vio l at i on of law or contractual obl i g at i ons shall be deemed in the Ordina r y Course o f B us i ness.

 

“ O r g a n iz a t i on a l Do c u m e nt s ” of a P erson m e a ns i t s articles of incor p or a t i on,

articles of o r gani z at i on, b y l aws and/or other or g a n i z at i onal documents, as appl i cabl e .

 

“ O w n e d R ea l P rop e r t y ” means the R eal P roper t y in which S el l er or i t s A ffi l iates (to the e x tent r e lated to the B usiness in the T e rri t o r y ) has f ee t i t l e (or equivalent) in t er e st, to g eth e r with all bui l din g s and oth e r structu r es, f aci l i t ies or i m prov e ments current l y or h e reafter located the r eon, all fi x tures, s y s t ems, equip m ent and i t ems of personal p r oper t y of S el l er (to the e x tent r e lated to the B usiness in the Terri t o r y ) at ta ched or appurte n ant the r eto and all easements, l i censes, r i g hts and appu r tenances r e lati n g to t he f ore g oin g .

 

“ P e rmi t ” means all app r ovals, authori z at i ons, cl e ar a n c es, not i fi c at i ons, c o nsen t s, l i censes, re g is t r a t i o n s, p ermi t s, permit appl i cat i ons, and other r i g hts is s ued, gr a nted, g iven o r otherwise made avai l ab l e b y or under the autho r i t y of a n y Go v ernment a l Authori t y or purs u ant to a n y L a w.

 

“ P e rmit t e d En c umbr a n c e s ” means ( a) statuto r y l ie ns for cu r r e nt Ta x es not y e t d u e and p a y able or the val i d i t y o r amount of which is being contested in g o o d f a i t h b y appro p riate pro c eedi n g s and f o r which adequate r eser v es ha v e been establi s hed in ac c ord a nce with GAA P , (b) mec h anics’, c a rrier s ’, workers’, r e p air e rs’ and other si m i l ar l i ens aris i ng or incur r ed in the Ordina r y Course of B us i ness r e lati n g to obl i g at i ons as to which th e re is n o def a ult on the p art of S el l er, as the case m a y b e, or the val i di t y or am o unt of which is being contested in g ood f a i t h b y appropriate pr o c e edin g s, or workers’ o r une m pl o y ment compensat i on l i ens arising  in the Ordina r y Cour s e of B us i ness, (c) z onin g , ent i t l ement, cons e rv a t i on r estriction and oth e r land use and environmental re g u l at i ons b y Go v ernmental Authori t ies which do n ot material l y in te rf e re with the p r esent use of the P u r chased Ass e ts, (d) all covenants, c ondi t ions, r e strictions, easements, ch ar g es, r i g h t s -of-w a y , oth e r Encumb r ances and si m i l ar matters of r e cord set forth in a n y state, provinc i al, local or mun i cipal franch i se of S el l er, which do n ot material l y in te rf e re with the pr e sent use of t he P ur c hased Assets, a n d ( e ) matters which wo u ld be disclosed b y a n accu r ate surv e y or ins p e c t i on of the R eal P ro p er t y which do not mat e rial l y i m pair the o ccupa n c y or c ur r ent use of such R e al P rop e r t y which th e y e ncumbe r .

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“ P e rson ” me a ns a n y ind i vidual, p a rtn e rship, fi r m, c orpo ra t i on, l i m i ted l i a bi l i t y c omp a n y , a ss o c iation, t r ust, uninco r por a ted o r g a ni z a t i on or other e nt i t y , a s w e ll a s a n y s y nd i ca te or g roup that would be d ee med to be a p e rson u n d e r S ec t i on 13(d ) ( 3 ) of the S ec urities E x c h a n g e A c t of 1934, a s a m e nd e d.

 

“ P os t - Clos i ng T a x P e ri o d ” means a n y t a x able period be g inn i n g aft e r the Clos i ng Date, and, with r e sp e ct to a n y S traddle P eriod, the portion of such S traddle P eriod be g inn i n g after the Clos i n g Date.

 

“ P r e- Clos i ng T a x   P e rio d ” means a n y t a x able period endi n g on or b e fore the Clos i ng Date, and, with r e spect to a n y S traddle P eriod, the portion of such S traddle P eriod ending on the Closi n g D a te.

 

“ P ur c h a s e d P e rmi t s ” m e ans all Pe rmits used in, or n e cessa r y to, the op er a t i on of the B usiness in the Terri t o r y , includin g , to test, manufactu r e, market, s u pp l y o r dis t ribute the products of the B usiness in the Terri t o r y , includ i n g , but not l i m i ted to, all P r e market Appro v al Applicat i ons, 510(k) not i ficat i ons, I nvest i g at i o nal D e vice E x emp t io n s, qual i t y and other certifi c ates is s ued b y not i fied bodies and all other market i ng aut h ori z at i ons is s ued b y Governmental Authori t i e s which are used b y S el l er or i t s Affiliates to test, sel l , manufacture and dis t ribute the products of the B u s iness in t he T e rr i to r y .

 

“ P ur c h a se P r i c e ” m e ans $3,000,000.

 

“ R ea l P rop e r t y ” m eans all land, bui l din g s, i m prov e ments and fi x tures er e c t ed thereon and all appurte n a nces re l ated the r eto.

 

“ R e f e r e n c e D a t e ” means Decem b er 31, 2018.

 

“ R e g is te r e d I n t e l l ec tual P rop e r t y ”   means all I ntellectual P rop e r t y consist i ng of f e de r al, state, in t er n at i onal, and other: ( a) P at e nts; (b) Trade m arks; (c) Co p y r i g hts; (d) mask work re g is tr at i ons and a ppl i cat i ons to re g is t er m ask works; ( e) Domain Names; and (f) other I ntell e ctual P ro p er t y as s e ts that a r e the subject of an appl ic at i on, c e rtificat e , filin g , re g is t r a t i on o r other document is s ued b y , filed with, or r e corded b y , a n y Go v ernmental Authori t y ow n e d , or filed b y or on b ehalf o f, or purp o rted to b e ow n ed b y S el l er or i t s Affi l iates and u s ed in the conduct of the B usiness in t he Terri t o r y .

 

“ R e le a s e ” shall m ean a n y spi l l i n g , leaki n g , pump i n g , pouri n g , em i t t in g , e mp t y i n g , discha r g i n g , e s capi n g , l eachi n g , dump i n g o r d ispo s ing of a Ha z ard o us Material in t o the Environment of a n y k i nd whatsoev e r, including the abandonment o r discardi n g of b ar r els, containers, tanks or ot h er r e cep t acles containing o r previous l y cont a in i n g Ha z ardous Mater i al.

 

“ R e v e rse T r a nsi t ion S e rvi ce s Ag ree m e n t ” means t he Reverse T r ansi t ion S ervices Agreement to b e e x ec u ted b y   S el le r and B u y er at the Clos i n g , in a form and subs t an c e r e asonab l y ac c eptable to B u y er.

 

“ S E C ” means the United S tates S ecurities and E x change Com m is s ion.

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“ S ec urities T r a ns f e r A g r ee men t ” me a ns t h e ins tr ument of t r a nsf e r tr a n s fer r ing a ll of S e l l e r ’ s r i g ht, t i t l e a n d in t e r e st in a nd to Eq u i t y I nt e r e sts to B u y e r, i n fo r m a nd subs t a n c e r e a son a b l y ac c e ptable to B u y e r.

 

“ S e l l e r ’ s Kno w le d g e ” “ Kno w le d g e of S e l ler ” or si m i l a r te r ms us e d in th i s Ag ree ment me a ns the a c tual or c onstru c t i ve kn o wl e dge o f e ac h of M a rc H e dri c k , Ti a g o G i r a o , J ohn F r a s e r, a nd Ch e ri R i c e, a ft e r due inqu i r y .

 

“ S e l l e r L i c e nse A gr e e m e n t ” means the L i c ense Agr e ement to be e x e c uted b y C y t o ri J apan and B u y e r at the C los i ng wher e b y C y tori J apan will l i ce n se certain I ntellectual P rop e r t y to B u y e r, in fo r m at t ached h e r e to as E x hib i t B .

 

“ S oft wa r e ” means a n y and all compu t er pr o g rams, whether in source code or object code; d ataba s es a nd comp i lations, wheth e r machine readable o r o t herwise; d e s criptions, flow-ch a rts and other work product used to d esi g n, plan, o r gani z e a n d develop a n y of the for e g oi n g ; and all doc u mentat i on including  us e r manuals and other t r ain i ng  d o cumentat i on r e lated to a n y o f the fo re g oi n g . F o r c l a ri t y , S oft w are does not inclu d e ema i ls.

 

“ S tr a ddle P e rio d ” m e ans a n y ta x able p eriod b e g i nning on or b efo r e the Clos i ng

D a te a nd e nding a ft e r the Clos i ng D a te.

 

“ S upp l y A g r ee men t ” m e ans the S upp l y A g r eem e nt to be e x ecuted b y S e l ler a n d B u y er at the Clos i n g , in form and subs t an c e rea s onab l y ac c eptable to B u y e r and consistent with the terms summari z ed in E x hib i t C .

 

“ T a n g ib l e   Pe rson a l   Pr op e r t y ”     means   all   f urniture,   fi x tures,   ma c hine r y , equip m ent, too l s, compu t er h a rdw a r e , supplies, m aterial s , lab equip m ent, manufacturi n g , t est i n g , storage and shippi n g r e l ated equip m en t , and other i t ems o f ta n g ib l e per s onal proper t y of e v e r y kind (in e a ch c ase oth e r t han I nvento r y , B ooks a n d Records, S oft w are and Cl i nical Fi l es) ow n ed or leased b y S el l er or a n y of i t s Affiliates and used in, or necessa r y t o , the B usiness in the Terri t o r y (wh e r e v e r lo c a ted and w hether or not carr i ed on S el le r ’s boo k s), together with a n y e x pr e ss or i m pl i ed wa r ran t y b y the manuf a ctur er s, sel l ers or less o rs of a n y i t em or component part of Tan g ib l e P erso n a l P rop e r t y ( a s otherwise defined) and all maintenance records and other documents relati n g the r eto.

 

“ T a x ” or “ T a x e s ” m e ans a n y  and all income, g ross r eceip t s, sa l es, use, product i on, ad valorem, transfer, f r a n chise, re g is t r a t i on, profi t s, l i cense, lease, serv i ce, serv i ce use, withho l din g , p a y ro l l, emp l o y ment, u n emp l o y m ent, est i mated, e x cis e , seve r ance, esc h ea t , abandoned o r unclaimed prop e r t y , environ m ental, stamp, occupat i on, p r em i u m , prop e r t y ( r e al o r personal), R eal P roper t y g ains, windfall pr o fits, c usto m s, dut i es or other t a x es, f e es, as s ess m ents or cha r ges of a n y ki n d w hatsoever, t o g eth e r with a n y in te r e st, addi t ions or penal t ies with r e spect thereto and a n y in t e r est i n r e spect o f such addi t i o ns or penal t ies, i m posed, assessed or col l ected b y o r und e r the author i t y of a n y T a x ing Aut h ori t y or p a y a ble purs u a nt to a n y Ta x -shari n g agr e e m ent or other a gre e ment r e lating to the p a y ment of a n y such ta x , f e e , assessment or ch ar g e, whether i m posed dire c t l y , under Tr e asu r y R e g u l at i ons S ect i on 1.1502-6 (or a n y si m i l ar provision of state, local o r fo r ei g n la w ), as a r e sult of bei n g a t r ansf e ree, s u ccessor or m ember o f an a f filiated, consolida t ed, uni t a r y o r comb i n e d group, b y C o nt r act ( other than com m er c i al

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Contr ac ts e nte r e d in t o in the O r dina r y Co u rse of B usiness that do not pr i ma r i l y r e late to T a x e s), pursu a nt t o L a w or oth e r wis e .

 

“ T a x R e tur n ” means a n y r eturn, r e p o rt, form, statement or claim for r e fund (includ i ng el e ct i ons, dec l ar a t i ons, schedules, info r mation r e turns or at t ac h ments thereto) filed or r e quired to be filed with a Ta x ing Authori t y wi t h r e spect to Ta x es, inc l uding a n y amendment thereof.

 

“ T a x ing Autho r i t y ” m e a ns, with r e s p e ct to a n y T a x , the Governmental A uthori t y that i m poses such Tax or is cha r g ed with t he col le ct i on of such Ta x .

 

“ T e r r i t o r y ” means the e n t i re world, o t her than J a p an.

 

“ T ra ns a c t i on E x p e ns e s ” means the a g g re g ate ( i ) amount of f e es and e x penses incurr e d b y S el l er, C y t o ri UK and their A ffi l iates incident to the n e g ot i at i on, pr e pa r at i on and e x ecut i on of th i s A g r eement, the A n ci l la r y  Agree m ents and the consummation of the transact i ons contempla t ed he r e b y and t h er e b y (other than Conv e y a n ce Ta x es, which a r e separ a t e l y al l o c ated in accor d an c e with Se c t i on 7.01 ), and (ii) amount p a y able under a n y emp l o y ment a gr e e m ent, sever a n ce plan o r a n y o t her a r r a n gemen t , in ef fe ct at a n y t i me prior to the Clos i n g , under which certain r i g hts a r e tr i g g e r ed sole l y b y a cha n ge in control or as a r esult of the trans a ct i ons cont e mp l ated her e i n .

 

“ T ra nsi t ion S e rvi c e s A g r ee men t ” means t h e T r a n si t ion S ervices A g r eem e nt to be e x ecuted b y S el l er and B u y er at t he Clos i n g , in form and subs t ance r e a sonab l y a c ceptab l e to B u y er.

 

“ T r e a su r y R e g ulation s ” means the re g ulations (includ i ng tempor a r y re g u lations) promul g ated b y the Un i ted S tates Dep a rtment o f Tr e asu r y with r espect to the Code o r other f e de r al Tax statutes.

 

SEC T I ON 1.02 I nt e rp re t a t i on a nd Rules of Constru c t i o n . I n this Ag ree ment:

 

( a )       e x ce pt to the e x tent othe r wise   p rovid e d or  t h a t the c onte x t othe r wi s e r e quir e s, wh e r e v e r us e d, the sin g ular includ e s the plur a l, the plur a l includ e s the sin g ula r , the use of a n y g e nd e r sh a ll be a p pl i ca ble to a ll g e nd e r s ;

 

(b)       the w ord “ o r ” is u s e d in t he inclusive s e nse ( a nd/ o r ) ;

 

( c )       the table o f c ontents a nd ca pt i ons of th i s A g r ee m e nt a r e f o r c onv e nie n c e of ref e r e n c e on l y a nd i n no w a y d e fin e , d e s c r i b e , e x tend or l i m i t the s c ope or in t e nt o f th i s Ag ree ment o r the in t e nt of a n y pro v is i on c ontain e d in t his A g re e ment;

 

(d)       the te r m “ includi n g ” o r i t s v a ri a t i ons a s us e d h e r e in do e s not l i m i t the g e n e r a l i t y of a n y d e s c ri p t i on pr e ce di n g su c h te r m a nd sh a ll be c onstru e d a s “ includin g , w i t hout l i m i tation”;

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( e )       the lan g u a g e   o f th i s A g r ee ment sh a ll b e  d ee med to be  the la n g u a ge mu t u a l l y c hos e n b y the P a rti e s a nd no rule of strict c onstru c t i on sh a ll be a ppl i e d a g a inst e i t h e r P a r t y ;

 

(f)       unless otherwise sp e cifi e d or whe r e the conte x t o t herwise r equir e s,

 

(i)        r e fer e n c e s in th i s A g r e e ment to a n y A r t i c l e , S e c t i on, S c h e dule or E x hib i t a re ref e r e n ce s t o su c h A r t i c le, S ec t i on, S c h e dule or E x hib i t of th i s A g re e ment, a nd r e fer e n c e s to th i s “ Ag re e ment” a re r e f e r e n ce s to th i s A g r ee ment a nd a ll e x hib i ts a nd s c h e dules h e r e to;

 

(ii)       r e fer e n c e s  in   a n y Se c t i on to   a n y c lause a r e ref e r e n ce s  to  su c h c lause of su c h S ec t i on;

 

(iii)       “ h e r e o f,” “ h e r e to,” “ h e re b y ,” “ h e r e i n ” a nd “ h e r e u nd e r” a nd wo r ds of si m i l a r i m port wh e n us e d in th i s A g re e ment r e f e r to th i s A g r ee ment a s a whole a nd not to a n y p a rti c ular pro v is i on of t h is A g r ee ment;