Exhibit 10.1


 


$150,000,000


 


Accelerate Diagnostics, Inc.


 


2.50% Convertible Senior Notes due 2023


 


Purchase Agreement


 


March 22, 2018


 


J.P. Morgan Securities LLC


383 Madison Avenue


New York, New York 10179


 


As Representative of the several Initial Purchasers listed in
Schedule 1 hereto


 


Ladies and Gentlemen:


 


Accelerate Diagnostics, Inc., a Delaware
corporation (the “Company”), proposes to issue and sell to the several initial purchasers listed in Schedule
1 hereto (the “Initial Purchasers”), for whom you are acting as representative (the “Representative”),
$150,000,000 aggregate principal amount of its 2.50% Convertible Senior Notes due 2023 (the “Underwritten Securities”)
and, at the option of the Initial Purchasers, up to an additional $22,500,000 aggregate principal amount of its 2.50% Convertible
Senior Notes due 2023 (the “Option Securities”) if and to the extent that the Initial Purchasers shall have
determined to exercise the option to purchase such Option Securities granted to the Initial Purchasers in Section 2 hereof. The
Underwritten Securities and the Option Securities are herein referred to as the “Securities”. The Securities
will be convertible into cash, shares (the “Underlying Securities”) of common stock of the Company, par value
$0.001 per share (the “Common Stock”), or a combination of cash and Underlying Securities, at the Company’s
election. The Securities will be issued pursuant to an Indenture to be dated as of the Closing Date (as defined below) (the “Indenture”)
between the Company and U.S. Bank National Association, as trustee (the “Trustee”).


 


An entity affiliated with a director of
the Company (the “Affiliated Purchaser”) has agreed to purchase $30,000,000 aggregate amount of the Underwritten
Securities (any such Underwritten Securities so purchased, the “Affiliate Securities”).


 


In connection with the placement of the
Securities, the Company is entering into a prepaid forward stock purchase transaction with JPMorgan Chase Bank, N.A., an affiliate
of the Representative (the “Prepaid Forward Agreement.”)


 


The Company hereby confirms its agreement
with the several Initial Purchasers concerning the purchase and sale of the Securities, as follows:


 




     


     


    

 


1.          Offering
Memorandum and Transaction Information. The Securities will be sold to the Initial Purchasers without being registered under
the Securities Act of 1933, as amended, and the rules and regulations of the Securities and Exchange Commission (the “Commission”)
thereunder (collectively, the “Securities Act”), in reliance upon an exemption therefrom. The Company has prepared
a preliminary offering memorandum dated March 22, 2018 (the “Preliminary Offering Memorandum”) and will
prepare an offering memorandum dated the date hereof (the “Offering Memorandum”) setting forth information concerning
the Company and the Securities. Copies of the Preliminary Offering Memorandum have been, and copies of the Offering Memorandum
will be, delivered by the Company to the Initial Purchasers pursuant to the terms of this purchase agreement (this “Agreement”).
The Company hereby confirms that it has authorized the use of the Preliminary Offering Memorandum, the other Time of Sale Information
(as defined below) and the Offering Memorandum in connection with the offering and resale of the Securities by the Initial Purchasers
in the manner contemplated by this Agreement. References herein to the Preliminary Offering Memorandum, the Time of Sale Information
and the Offering Memorandum shall be deemed to refer to and include any document incorporated by reference therein and any reference
to “amend,” “amendment” or “supplement” with respect to the Preliminary Offering Memorandum
and the Offering Memorandum shall be deemed to refer to and include any documents filed after such date and incorporated by reference
therein.


 


At or prior to the time when sales of the
Securities were first made (the “Time of Sale”), the Company had prepared the following information (collectively,
the “Time of Sale Information”): the Preliminary Offering Memorandum, as supplemented and amended by the written
communications listed on Annex A hereto.


 


2.          Purchase
and Resale of the Securities by the Initial Purchasers. (a) The Company agrees to issue and sell the Underwritten Securities
to the several Initial Purchasers as provided in this Agreement, and each Initial Purchaser, on the basis of the representations,
warranties and agreements set forth herein and subject to the conditions set forth herein, agrees, severally and not jointly, to
purchase from the Company the respective principal amount of Underwritten Securities set forth opposite such Initial Purchaser’s
name in Schedule 1 hereto at a price equal to (i) 97.0% of the principal amount thereof (the “Purchase Price”),
in the case of Underwritten Securities other than the Affiliate Securities and (ii) 100% of the principal amount of the Affiliate
Securities, in each case plus accrued interest, if any, from March 27, 2018 to the Closing Date (as defined below).


 


In addition, the Company agrees to issue
and sell the Option Securities to the several Initial Purchasers as provided in this Agreement, and the Initial Purchasers, on
the basis of the representations, warranties and agreements set forth herein and subject to the conditions set forth herein, shall
have the option to purchase, severally and not jointly, from the Company the Option Securities at the Purchase Price plus accrued
interest, if any, from March 27, 2018 to the date of payment and delivery.


 




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If any Option Securities are to be purchased,
the principal amount of Option Securities to be purchased by each Initial Purchaser shall be the principal amount of Option Securities
which bears the same ratio to the aggregate principal amount of Option Securities being purchased as the principal amount of Underwritten
Securities set forth opposite the name of such Initial Purchaser in Schedule 1 hereto (or such principal amount increased
as set forth in Section 10 hereof) bears to the aggregate principal amount of Underwritten Securities being purchased from the
Company by the several Initial Purchasers, subject, however, to such adjustments to eliminate Securities in denominations other
than $1,000 as the Representative in its sole discretion shall make.


 


The Initial Purchasers may exercise the
option to purchase the Option Securities at any time in whole, or from time to time in part, by written notice from the Representative
to the Company for the sole purpose of covering sales in excess of the aggregate principal amount of Underwritten Securities; provided
that any Additional Closing Date (as defined below) shall occur within a period (the “Exercise Period”) of thirteen
calendar days from, and including, the Closing Date (as defined below). Such notice shall set forth the aggregate principal amount
of Option Securities as to which the option is being exercised and the date and time during the Exercise Period when the Option
Securities are to be delivered and paid for which may be the same date and time as the Closing Date (as hereinafter defined) but
shall not be earlier than the Closing Date nor later than the fifth full business day (as hereinafter defined) after the date of
such notice (unless such time and date are postponed in accordance with the provisions of Section 10 hereof). Any such notice shall
be given at least two business days prior to the date and time of delivery specified therein; provided that any notice where
the Option Securities are to be delivered on the Closing Date shall be given at least one business day prior to the Closing Date.


 


The Company shall not be obligated to deliver
any Underwritten Securities or Option Securities except against payment of the applicable Purchase Price (plus accrued interest,
if any) therefor pursuant to this Section 2.


 


(b)          The
Company understands that the Initial Purchasers intend to offer the Securities for resale on the terms set forth in the Time of
Sale Information. Each Initial Purchaser, severally and not jointly, represents, warrants and agrees that:


 


(i)          it
is a qualified institutional buyer (a “QIB”) within the meaning of Rule 144A under the Securities Act (“Rule
144A”) and an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the Securities
Act (“Regulation D”);


 


(ii)         it
has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Securities in any manner
involving a public offering within the meaning of Section 4(a)(2) of the Securities Act; and


 


(iii)        it
has not sold the Securities as part of the initial offering except to persons whom it reasonably believes to be QIBs in transactions
pursuant to Rule 144A and in connection with each such sale, it has taken or will take reasonable steps to ensure that the
purchaser of the Securities is aware that such sale is being made in reliance on Rule 144A.


 




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(c)          Each
Initial Purchaser acknowledges and agrees that the Company and, for purposes of the “no registration” opinions to be
delivered to the Initial Purchasers pursuant to Sections 6(e) and 6(i), counsel for the Company and counsel for the Initial Purchasers,
respectively, may rely upon the accuracy of the representations and warranties of the Initial Purchasers, and compliance by the
Initial Purchasers with their agreements, contained in paragraph (b) above, and each Initial Purchaser hereby consents to such
reliance.


 


(d)          The
Company acknowledges and agrees that the Initial Purchasers may offer and sell Securities to or through any affiliate of an Initial
Purchaser and that any such affiliate may offer and sell Securities purchased by it to or through any Initial Purchaser.


 


(e)          Payment
for the Securities shall be made in the case of the Underwritten Securities, at the offices of Davis Polk & Wardwell LLP, 1600
El Camino Real, Menlo Park, California 94025, at 10:00 A.M. New York City time on March 27, 2018, or at such other time or
place on the same or such other date, not later than the fifth business day thereafter, as the Representative and the Company may
agree upon in writing or, in the case of the Option Securities, on the date and at the time and place specified by the Representative
in the written notice of the Initial Purchasers’ election to purchase such Option Securities in accordance with this Agreement.
The time and date of such payment for the Underwritten Securities is referred to herein as the “Closing Date”
and the time and date for such payment for the Option Securities, if other than the Closing Date, is herein referred to as the
“Additional Closing Date”.


 


Payment for the Securities to be purchased
on the Closing Date or the Additional Closing Date, as the case may be, shall be made by wire transfer in immediately available
funds to the account specified by the Company to the Representative against delivery to the nominee of The Depository Trust Company
(“DTC”), for the respective accounts of the several Initial Purchasers of the Securities to be purchased on
such date of (i) one or more global notes representing the Securities (collectively, the “Global Note”),
in the case of Securities other than the Affiliate Securities and (ii) a physical note representing the Affiliate Securities
(the “Affiliate Note”), in each case with any transfer taxes payable in connection with the sale of such Securities
duly paid by the Company. The Global Note and the Affiliate Note will be made available for inspection by the Representative at
the office of J.P. Morgan Securities LLC set forth above not later than 1:00 P.M., New York City time, on the business day prior
to the Closing Date or the Additional Closing Date, as the case may be.


 


(f)          The
Company acknowledges and agrees that each Initial Purchaser is acting solely in the capacity of an arm’s length contractual
counterparty to the Company with respect to the offering of Securities contemplated hereby (including in connection with determining
the terms of the offering) and not as a financial advisor or a fiduciary to, or an agent of, the Company or any other person. Additionally,
neither the Representative nor any other Initial Purchaser is advising the Company or any other person as to any legal, tax, investment,
accounting or regulatory matters in any jurisdiction. The Company shall consult with its own advisors concerning such matters and
shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and the
Initial Purchasers shall have no responsibility or liability to the Company with respect thereto. Any review by the Representative
or any other Initial Purchaser of the Company, the transactions contemplated hereby or other matters relating to such transactions
will be performed solely for the benefit of the Representative or Initial Purchaser and shall not be on behalf of the Company or
any other person.


 




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3.          Representations
and Warranties of the Company. The Company represents and warrants to each Initial Purchaser that:


 


(a)          Preliminary
Offering Memorandum. The Preliminary Offering Memorandum, as of its date, did 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; provided that the Company makes no representation or warranty with respect to any
statements or omissions made in reliance upon and in conformity with information relating to any Initial Purchaser furnished to
the Company in writing by such Initial Purchaser through the Representative expressly for use in any Preliminary Offering Memorandum,
it being understood and agreed that the only such information furnished by any Initial Purchaser consists of the information described
as such in Section 7(b) hereof.


 


(b)          Time
of Sale Information. The Time of Sale Information, at the Time of Sale, did not, and at the Closing Date and as of any Additional
Closing Date, as the case may be, 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; provided
that the Company makes no representation or warranty with respect to any statements or omissions made in reliance upon and in conformity
with information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representative
expressly for use in such Time of Sale Information, it being understood and agreed that the only such information furnished by
any Initial Purchaser consists of the information described as such in Section 7(b) hereof. No statement of material fact included
in the Offering Memorandum has been omitted from the Time of Sale Information and no statement of material fact included in the
Time of Sale Information that is required to be included in the Offering Memorandum has been omitted therefrom.


 




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(c)          Additional
Written Communications; Permitted General Solicitation. Other than the Preliminary Offering Memorandum and the Offering Memorandum,
the Company (including its agents and representatives, other than the Initial Purchasers in their capacity as such) has not prepared,
made, used, authorized, approved or referred to and will not prepare, make, use, authorize, approve or refer to (x) any “written
communication” (as defined in Rule 405 under the Securities Act) that constitutes an offer to sell or solicitation of an
offer to buy the Securities (each such communication by the Company or its agents and representatives (other than a communication
referred to in clauses (i), (ii) and (iii) below) an “Issuer Written Communication”) other than (i) the Preliminary
Offering Memorandum, (ii) the Offering Memorandum, (iii) the documents listed on Annex A hereto, including a term sheet substantially
in the form of Annex B hereto, which constitute part of the Time of Sale Information, and (iv) each electronic road show and any
other written communications approved in writing in advance by the Representative (other than a Permitted General Solicitation
(as defined below)), in each case used in accordance with Section 4(c) or (y) any general solicitation other than (A) any such
solicitation listed on Annex C hereto or (B) in accordance with Section 4(o) hereof (each such solicitation referred to in clauses
(A) or (B), a “Permitted General Solicitation”). Each such Issuer Written Communication does not conflict with
the information contained in the Time of Sale Information, and when taken together with the Time of Sale Information, did not,
and at the Closing Date and as of any Additional Closing Date, as the case may be, 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; provided that the Company makes no representation or warranty with respect to
any statements or omissions made in each such Issuer Written Communication in reliance upon and in conformity with information
relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representative expressly
for use in such Issuer Written Communication, it being understood and agreed that the only such information furnished by any Initial
Purchaser consists of the information described as such in Section 7(b) hereof.


 


(d)          Offering
Memorandum. As of the date of the Offering Memorandum and as of the Closing Date and as of any Additional Closing Date, as
the case may be, the Offering Memorandum does 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; provided that the Company makes no representation or warranty with respect to any statements or omissions
made in reliance upon and in conformity with information relating to any Initial Purchaser furnished to the Company in writing
by such Initial Purchaser through the Representative expressly for use in the Offering Memorandum, it being understood and agreed
that the only such information furnished by any Initial Purchaser consists of the information described as such in Section 7(b)
hereof.


 











(e)          Incorporated
Documents. The documents incorporated by reference in the Offering
Memorandum or the Time of Sale Information, when filed with the Securities and Exchange Commission (the “Commission”)
conformed or will conform, as the case may be, in all material respects to the requirements of the Securities Exchange Act of 1934,
as amended, and the rules and regulations of the Commission thereunder (collectively, the “Exchange Act”) and
such documents did not and will 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.












  




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(f)          Financial
Statements. The financial statements (including the related notes thereto) of the Company and its consolidated subsidiaries
included or incorporated by reference in the Time of Sale Information and the Offering Memorandum present fairly in all material
respects the financial position of the Company and its consolidated subsidiaries as of the dates indicated and the results of their
operations and the changes in their cash flows for the periods specified; such financial statements have been prepared in conformity
with generally accepted accounting principles in the United States applied on a consistent basis throughout the periods covered
thereby, except as may be otherwise specified therein or to the extent unaudited interim financial statements exclude footnotes
or may be condensed or summary statements, and any supporting schedules included or incorporated by reference in the Time of Sale
Information and the Offering Memorandum present fairly the information required to be stated therein; and the other financial information
included or incorporated by reference in the Time of Sale Information and the Offering Memorandum has been derived from the accounting
records of the Company and its consolidated subsidiaries and presents fairly in all material respects the information shown thereby.


 


(g)          No
Material Adverse Change. Since the date of the most recent financial statements of the Company included or incorporated by
reference in each of the Time of Sale Information and the Offering Memorandum, (i) there has not been any change in the capital
stock (other than the issuance of shares of Common Stock upon the exercise of stock options and warrants, and the vesting of restricted
stock units and the grant of options and awards under existing equity incentive plans as described in the in the Time of Sale Information
and the Offering Memorandum or the issuance of the Securities or the entry into the Prepaid Forward Agreement), any debt of the
Company or any of its subsidiaries, or any dividend or distribution of any kind declared, set aside for payment, paid or made by
the Company on any class of capital stock, or any material adverse change, or any development involving a prospective material
adverse change, in or affecting the business, properties, management, financial position, stockholders’ equity, results of
operations or prospects of the Company and its subsidiaries taken as a whole; (ii) neither the Company nor any of its subsidiaries
has entered into any transaction or agreement (whether or not in the ordinary course of business) that is material to the Company
and its subsidiaries taken as a whole or incurred any liability or obligation, direct or contingent, that is material to the Company
and its subsidiaries taken as a whole; and (iii) neither the Company nor any of its subsidiaries has sustained any loss or interference
with its business that is material to the Company and its subsidiaries taken as a whole and that is either from fire, explosion,
flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or
decree of any court or arbitrator or governmental or regulatory authority, except, in each case, as otherwise disclosed in each
of the Time of Sale Information and the Offering Memorandum.


 




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(h)          Organization
and Good Standing. The Company and each of its subsidiaries have been duly organized and are validly existing and in good standing
under the laws of their respective jurisdictions of organization (to the extent such concepts or analog concepts are applicable
under such laws of any non-U.S. jurisdiction where any subsidiary of the Company is organized), are duly qualified to do business
and are in good standing in each jurisdiction in which their respective ownership or lease of property or the conduct of their
respective businesses requires such qualification, and have all power and authority necessary to own or hold their respective properties
and to conduct the businesses in which they are engaged, except where the failure to be so qualified or in good standing or have
such power or authority would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on
the business, properties, management, financial position, stockholders’ equity, results of operations or prospects of the
Company and its subsidiaries taken as a whole or on the performance by the Company of its obligations under the Transaction Documents
(as defined below) (a “Material Adverse Effect”). The subsidiaries listed in Schedule 2 to this Agreement are
the only significant subsidiaries of the Company within the meaning of Regulation S-X under the Exchange Act.


 


(i)          Capitalization.
The Company has an authorized capitalization as set forth in the Time of Sale Information and the Offering Memorandum under the
heading “Capitalization”; all the outstanding shares of capital stock of the Company have been duly and validly authorized
and issued and are fully paid and non-assessable and are not subject to any pre-emptive or similar rights; except as described
in or expressly contemplated by the Time of Sale Information and the Offering Memorandum, there are no outstanding rights (including,
without limitation, pre-emptive rights), warrants or options to acquire, or instruments convertible into or exchangeable for, any
shares of capital stock or other equity interest in the Company or any of its subsidiaries, or any contract, commitment, agreement,
understanding or arrangement of any kind relating to the issuance of any capital stock of the Company or any such subsidiary, any
such convertible or exchangeable securities or any such rights, warrants or options; the capital stock of the Company conforms
in all material respects to the description thereof contained in the Time of Sale Information and the Offering Memorandum; and
all the outstanding shares of capital stock or other equity interests of each subsidiary owned, directly or indirectly, by the
Company have been duly and validly authorized and issued, are fully paid and non-assessable (except, in the case of any foreign
subsidiary, for directors’ qualifying shares and except as otherwise described in each of the Time of Sale Information and
the Offering Memorandum) and are owned directly or indirectly by the Company, free and clear of any lien, charge, encumbrance,
security interest, restriction on voting or transfer or any other claim of any third party.


 


(j)          Stock
Options. With respect to the stock options (the “Stock Options”) granted pursuant to the stock-based compensation
plans of the Company and its subsidiaries (the “Company Stock Plans”), (i) each Stock Option intended to qualify as
an “incentive stock option” under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”),
so qualifies, (ii) each grant of a Stock Option was duly authorized no later than the date on which the grant of such Stock Option
was by its terms to be effective (the “Grant Date”) by all necessary corporate action, including, as applicable,
approval by the board of directors of the Company (or a duly constituted and authorized committee thereof) and any required stockholder
approval by the necessary number of votes or written consents, and the award agreement governing such grant (if any) was duly executed
and delivered by each party thereto, (iii) each such grant was made in accordance with the terms of the Company Stock Plans, the
Exchange Act and all other applicable laws and regulatory rules or requirements, including the rules of The Nasdaq Capital Market
(the “Exchange”) and any other exchange on which Company securities are traded, and (iv) each such grant was
properly accounted for in accordance with generally accepted accounting principles in the United States of America (“GAAP”)
in the financial statements (including the related notes) of the Company and disclosed in the Company's filings with the Commission
in accordance with the Exchange Act and all other applicable laws in all material respects. The Company has not knowingly granted,
and there is no and has been no policy or practice of the Company of granting, Stock Options prior to, or otherwise coordinating
the grant of Stock Options with, the release or other public announcement of material information regarding the Company or its
subsidiaries or their results of operations or prospects


 




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(k)          Due
Authorization. The Company has all necessary and sufficient power and authority to execute and deliver this Agreement, the
Indenture, the Securities and the Prepaid Forward Agreement (collectively, the “Transaction Documents”) and
to perform its obligations hereunder and thereunder; and all action required to be taken for the due and proper authorization,
execution and delivery by it of each of the Transaction Documents and the consummation by it of the transactions contemplated thereby
has been duly and validly taken.


 


(l)          Transaction
Documents. The execution, delivery and performance of each of the Indenture and the Securities and the Prepaid Forward Agreement
have been duly authorized by the Company and, when the Indenture and the Securities are duly executed and delivered in accordance
with their respective terms by each of the parties thereto, each will constitute a valid and legally binding agreement of the Company
enforceable against the Company in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency or similar laws affecting creditors’ rights generally or by equitable principles relating to enforceability (collectively,
the “Enforceability Exceptions”).


 


(m)          Authorization
of Agreement.  This Agreement has been duly authorized, executed and delivered by the Company.


 


(n)          The
Securities. The Securities have been duly authorized by the Company and, when duly executed, authenticated, issued and delivered
as provided in the Indenture and paid for as provided herein, will be duly and validly issued and outstanding and will constitute
valid and legally binding obligations of the Company enforceable against the Company in accordance with their terms, subject to
the Enforceability Exceptions, and will be entitled to the benefits of the Indenture.


 


(o)          The
Underlying Securities. Upon issuance and delivery of the Securities in accordance with this Agreement and the Indenture, the
Securities will be convertible at the option of the holder thereof into cash, shares of the Underlying Securities or a combination
of cash and Underlying Securities, at the Company’s election, in accordance with the terms of the Securities and the Indenture;
the maximum number of Underlying Securities initially issuable upon conversion of the Securities (assuming full physical settlement
of the Securities upon conversion and the maximum conversion rate under any “make-whole” adjustment applies) (the “Conversion
Shares”) have been duly authorized and reserved and, when and to the extent issued upon conversion of the Securities
in accordance with the terms of the Securities and the Indenture, will be validly issued, fully paid and non-assessable, and the
issuance of any Underlying Securities will not be subject to any preemptive or similar rights.


 




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(p)          Descriptions
of the Transaction Documents. Each Transaction Document conforms in all material respects to the description thereof contained
in the Time of Sale Information and the Offering Memorandum.


 


(q)          No
Violation or Default. Neither the Company nor any of its subsidiaries is (i) in violation of its charter or by-laws or similar
organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute
such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed
of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which
the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company or any of its subsidiaries
is subject; or (iii) in violation of any applicable law or statute or any judgment, order, rule or regulation of any court or arbitrator
or governmental or regulatory authority having jurisdiction over the Company or any of its subsidiaries, except, in the case of
clauses (ii) and (iii) above, for any such default or violation that would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.


 


(r)          No
Conflicts. The execution, delivery and performance by the Company of each of the Transaction Documents, the issuance and sale
of the Securities (including any issuance of the Underlying Securities upon conversion thereof), the entry into the Prepaid Forward
Agreement and the consummation of the transactions contemplated by the Transaction Documents will not (i) conflict with or
result in a breach or violation of any of the terms or provisions of, or constitute a 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, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its
subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of
the Company or any of its subsidiaries is subject, (ii) result in any violation of the provisions of the charter or by-laws
or similar organizational documents of the Company or any of its subsidiaries or (iii) result in the violation of any applicable
law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority having
jurisdiction over the Company or any of its subsidiaries, except, in the case of clauses (i) and (iii) above, for any such conflict, breach, violation, default, lien, charge or encumbrance that would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.


 


(s)          No
Consents Required. Assuming the accuracy of the representations and warranties of the Initial Purchasers contained in Section
2(b) hereto, and their compliance with their agreements set forth therein and in Section 5 hereof, no consent, approval, authorization,
order, license, registration or qualification of or with any court or arbitrator or governmental or regulatory authority is required
for the execution, delivery and performance by the Company of each of the Transaction Documents, the issuance and sale of the Securities
(including the issuance of the Underlying Securities upon conversion thereof), the entry into the Prepaid Forward Agreement and
the consummation of the transactions contemplated by the Transaction Documents, except for such consents, approvals, authorizations,
orders and registrations or qualifications as may be required under applicable state securities laws in connection with the purchase
and resale of the Securities by the Initial Purchasers.


 




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(t)          Legal
Proceedings. Except as described in each of the Time of Sale Information and the Offering Memorandum, there are no legal, governmental
or regulatory investigations, actions, suits or proceedings pending to which the Company or any of its subsidiaries is or may reasonably
be expected to be a party or to which any property of the Company or any of its subsidiaries is or may be the subject that, individually
or in the aggregate, if determined adversely to the Company or any of its subsidiaries, would reasonably be expected to have a
Material Adverse Effect; to the knowledge of the Company, no such investigations, actions, suits or proceedings are threatened
or contemplated by any governmental or regulatory authority or threatened by others.


 


(u)          Independent
Accountants. Ernst & Young LLP, who has certified certain financial statements of the Company and its subsidiaries, is
an independent registered public accounting firm with respect to the Company and its subsidiaries within the applicable rules and
regulations adopted by the Commission and the Public Company Accounting Oversight Board (United States) and as required by the
Securities Act.


 


(v)          Title
to Real and Personal Property. The Company and its subsidiaries have good and marketable title in fee simple (in the case of
real property) to, or have valid and marketable rights to lease or otherwise use, all items of real and personal property and assets
that are material to the respective businesses of the Company and its subsidiaries, in each case free and clear of all liens, encumbrances,
claims and defects and imperfections of title except those that (i) do not materially interfere with the use made and proposed
to be made of such property by the Company and its subsidiaries or (ii) would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect.


 




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(w)          Title
to Intellectual Property. The Company and its subsidiaries own, or possess valid and enforceable licensed rights to use, all
material patents, patent applications, trademarks, service marks, trade names, trademark registrations, service mark registrations,
copyrights, licenses and know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures) necessary for the conduct of their respective businesses as currently conducted and as proposed
to be conducted, including related to the commercialization of the Accelerate PhenoTM system and the Accelerate PhenoTestTM
BC Kit (collectively, the “Products”) as described in the Time of Sale Information and the Offering Memorandum
(“Disclosure Documents”) (collectively, “Intellectual Property”), except where the failure
to own, license, have or acquired such rights would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. The Company and its subsidiaries have not received any notice of any claim of infringement, misappropriation or
conflict with any intellectual property rights of another which would reasonably be expected to have a Material Adverse Effect.
To the Company’s knowledge: (i) there are no third parties who have rights to any Intellectual Property, including no liens,
security interests, or other encumbrances; except for customary reversionary rights of third-party licensors with respect to Intellectual
Property that is disclosed in the Disclosure Documents as licensed to the Company or its subsidiaries; and (ii) except as
would not reasonably be expected to have a Material Adverse Effect, there is no infringement by third parties of any Intellectual
Property. Except as disclosed in the Disclosure Documents, there is no pending or, to the Company’s knowledge, threatened
action, suit, proceeding or claim by others: (A) challenging the validity or the scope of the Company’s rights in or to any
Intellectual Property; (B) challenging the validity, enforceability or scope of any Intellectual Property; or (C) asserting that
the Company or its subsidiaries infringe, misappropriate, or otherwise violate, or would, infringe, misappropriate, or otherwise
violate, any intellectual property rights of others, except, in each case, as would not reasonably be expected to have a Material
Adverse Effect. No employee of the Company is or has been in violation of any term of any employment contract, patent disclosure
agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, nondisclosure agreement or any
restrictive covenant to or with a former employer where the basis of such violation relates to such employee’s employment
with the Company, except, in each case, as would not reasonably be expected to have a Material Adverse Effect. The Company and
its subsidiaries have complied in all material respects with the terms of each agreement pursuant to which Intellectual Property
has been licensed to the Company or its subsidiaries, and all such agreements are in full force and effect, except, in each case,
as would not reasonably be expected to have a Material Adverse Effect. To the Company’s knowledge, the duty of candor and
good faith, as required by the USPTO during prosecution of the United States patent applications within the Intellectual Property,
has been complied with; and in all foreign offices having similar requirements all such requirements have been complied with. The
Company’s Intellectual Property has not been adjudged by a court of competent jurisdiction invalid or unenforceable in whole
or in part. Except as set forth in the Disclosure Documents, to the Company’s knowledge, the Company and its subsidiaries
are not obligated or under any liability whatsoever to make any material payment by way of royalties, fees or otherwise to any
owner or licensee of, or other claimant to, any Intellectual Property, with respect to the use thereof or in connection with the
conduct of their respective businesses or otherwise. The Products described in the Disclosure Documents fall within the scope of
the claims of one or more patents or patent applications owned by, or exclusively licensed to, the Company or its subsidiaries.
To the Company’s knowledge, except as disclosed in the Disclosure Documents, the Company is not aware of any patent or published
patent application, in the U.S. or other jurisdiction, which, in the case of a patent, contains claims, or in the case of a published
patent application contains patentable claims, that dominate or may dominate the Company’s commercialization of the Products,
except as would not reasonably be expected to have a Material Adverse Effect. To the Company’s knowledge, the patents included
in the Intellectual Property are subsisting and have not lapsed and the patent applications in the Intellectual Property are subsisting
and have not been abandoned, except, in each case, as would not reasonably be expected to have a Material Adverse Effect.


 




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(x)          Trade
Secrets. The Company and its subsidiaries have taken reasonable and customary actions to protect their rights in and prevent
the unauthorized use and disclosure of material trade secrets and confidential business information (including confidential source
code, ideas, research and development information, know-how, formulas, compositions, technical data, designs, drawings, specifications,
research records, records of inventions, test information, financial, marketing and business data, customer and supplier lists
and information, pricing and cost information, business and marketing plans and proposals) owned by the Company and its subsidiaries,
and, to the knowledge of the Company, there has been no unauthorized use or disclosure, except, in each case, as would not reasonably
be expected to have a Material Adverse Effect.


 


(y)          IT
Assets. Except as would not reasonably be expected to have a Material Adverse Effect: (i) the computers, software, servers,
networks, data communications lines, and other information technology systems owned, licensed, leased or otherwise used by the
Company or its subsidiaries (excluding any public networks) (collectively, the “IT Assets”) operate and perform
as is necessary for the operation of the business of the Company and its subsidiaries as currently conducted and as proposed to
be conducted as described in the Time of Sale Information and the Offering Memorandum; and (ii) such IT Assets are not infected
by viruses, disabling code or other harmful code.


 


(z)          Data
Privacy and Security 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 the Health Insurance
Portability and Accountability Act of 1996 (“HIPAA”) as amended by the Health Information Technology for Economic
and Clinical Health Act (the “HITECH Act”) (collectively, the “Privacy Laws”). 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”). “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) Protected Health Information as defined by HIPAA; and (iv) 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. 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 of its subsidiaries:
(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 unauthorized use or disclosure of Personal Data or 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.


 




    	 	13	 



     


    

 


(aa)        No
Complaints. There is no complaint to or audit, proceeding, investigation (formal or informal) or claim currently pending against
the Company or its subsidiaries or, to the knowledge of the Company, any of its customers (specific to the customer’s use
of the products or services of the Company) by the Federal Trade Commission, the U.S. Department of Health and Human Services
and any office contained therein, or any similar authority in any jurisdiction other than the Unites States or any other governmental
entity, or by any person in respect of the collection, use or disclosure of Personal Data by the Company or its subsidiaries,
and, to the knowledge of the Company, no such complaint, audit, proceeding, investigation or claim is threatened.


 


(bb)       Clinical
Data. The descriptions of the results of any studies and tests conducted by or on behalf of, or sponsored by, the Company or
its subsidiaries, or in which the Company has participated, that are described in the Time of Sale Information and the Offering
Memorandum, or the results of which are referred to in the Time of Sale Information and the Offering Memorandum do not contain
any misstatement of a material fact or omit to state a material fact necessary to make such statements not misleading; the Company
has no knowledge of any studies or tests not described in the Time of Sale Information and the Offering Memorandum the results
of which reasonably call into question in any material respect the results of the studies, tests and trials described in the Time
of Sale Information and the Offering Memorandum.


 




    	 	14	 



     


    

 


(cc)       Compliance
with Health Care Laws. The Company and its subsidiaries are, and at all relevant times have been, in compliance with all Health
Care Laws in all material respects. For purposes of this Agreement, “Health Care Laws” means: (i) applicable
provisions of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. § 301 et seq.) and the applicable regulations promulgated
thereunder; (ii) all applicable federal, state, local and foreign health care laws, including, without limitation, the federal
Anti-Kickback Statute (42 U.S.C. Section 1320a-7b(b)), the Civil Monetary Penalties Law (42 U.S.C. § 1320a-7a), the federal
civil False Claims Act (31 U.S.C. Section 3729 et seq.), 18 U.S.C. Sections 286 and 287, the health care fraud criminal provisions
under HIPAA (42 U.S.C. Section 1320d et seq.), the exclusion laws (42 U.S.C.§ 1320a-7) , laws governing government funded
or sponsored healthcare programs, and the directives and regulations promulgated pursuant to such statutes and any state or non-U.S.
counterpart thereof; (iii) HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act (42
U.S.C. Section 17921 et seq.); (iv) the Patient Protection and Affordable Care Act of 2010 (Public Law 111-148), as amended
by the Health Care and Education Affordability Reconciliation Act of 2010 (Public Law 111-152), and the regulations promulgated
thereunder; (v) licensure, quality, safety and accreditation requirements under applicable state, local or foreign laws or
regulatory bodies; and (vi) all other local, state, federal, national, supranational and foreign laws, relating to the regulation
of the Company or its subsidiaries. Neither the Company, any of its subsidiaries, nor to the Company’s knowledge, any of
their respective officers, directors, employees or agents have engaged in activities which are, as applicable, cause for liability
under a Health Care Law. Neither the Company nor any of its subsidiaries has received written notice of any claim, action, suit,
proceeding, hearing, enforcement, 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 violation of any Health Care Laws nor, to the Company’s
knowledge, is any such claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action threatened.
The Company and its subsidiaries have filed, maintained or submitted all material reports, documents, forms, notices, applications,
records, claims, submissions and supplements or amendments as required by any Health Care Laws, and all such reports, documents,
forms, notices, applications, records, claims, submissions and supplements or amendments were complete and accurate on the date
filed in all material respects (or were corrected or supplemented by a subsequent submission). Neither the Company nor any of
its subsidiaries is a party to any corporate integrity agreements, monitoring agreements, consent decrees, settlement orders,
or similar agreements with or imposed by any governmental or regulatory authority. Additionally, neither the Company, any of its
subsidiaries nor, to the knowledge of the Company, any of their respective employees, officers, directors, or agents 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 would
reasonably be expected to result in debarment, suspension, or exclusion.


 


(dd)      Clinical
Laboratory Tests. The manufacture of the Company’s clinical laboratory tests and equipment by or on behalf of the Company
or its subsidiaries is being conducted in compliance in all material respects with all applicable Health Care Laws, and, to the
extent applicable, the respective counterparts thereof promulgated or adopted by governmental authorities in countries outside
the United States. The Company has not had any laboratory test, clinical laboratory equipment or manufacturing site (whether Company-owned
or that of a third-party manufacturer) subject to a governmental authority (including United States Food and Drug Administration
(the “FDA”)) shutdown or import or export prohibition, nor received any FDA Form 483 or other governmental authority
and/or accreditation authority notice of inspectional observations or deficiencies, “warning letters,” “untitled
letters,” requests to make changes to the Company products, processes or operations, or similar correspondence or notice
from the FDA or other governmental authority alleging or asserting material noncompliance with any applicable Health Care Laws.
The Company has received no written notice that either the FDA or any other governmental authority is considering such action.


 


(ee)      
No Undisclosed Relationships. No relationship, direct or indirect, exists between or among the Company or any of its subsidiaries,
on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company or any of its subsidiaries, on
the other, that would be required by the Securities Act to be described in a registration statement to be filed with the Commission
and that is not so described or incorporated by reference in each of the Time of Sale Information and the Offering Memorandum.


 




    	 	15	 



     


    

 


(ff)         Investment
Company Act. The Company is not and, after giving effect to the offering and sale of the Securities and the application of
the proceeds thereof as described in the Time of Sale Information and the Offering Memorandum will not be required to register
as an “investment company” or an entity “controlled” by an “investment company” within the
meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission thereunder (collectively,
the “Investment Company Act”).


 


(gg)      Taxes.
Subject to any permitted extensions, the Company and its subsidiaries have paid all federal, state, local and foreign taxes and
filed all tax returns required to be paid or filed through the date hereof; and except as otherwise disclosed in the Time of Sale
Information and the Offering Memorandum, there is no tax deficiency that has been, or would reasonably be expected to be, asserted
against the Company or any of its subsidiaries or any of their respective properties or assets, in each case except as would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.


 


(hh)      Licenses
and Permits. The Company and its subsidiaries possess all licenses, certificates, permits and other authorizations issued by,
and have made all declarations and filings with, the appropriate federal, state, local or foreign governmental or regulatory authorities
that are necessary for the ownership or lease of their respective properties or the conduct of their respective businesses as described
in the Time of Sale Information and the Offering Memorandum, except where the failure to possess or make the same would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect; and except as described in the Time of Sale Information
and the Offering Memorandum, neither the Company nor any of its subsidiaries has received written, or to the knowledge of the Company,
other notice of any revocation or modification of any such license, certificate, permit or authorization or has any reason to believe
that any such license, certificate, permit or authorization will not be renewed in the ordinary course. To the Company’s
knowledge, no party granting any such licenses, certificates, permits and other authorizations has taken any action to limit, suspend
or revoke the same in any material respect. The Company and its subsidiaries have filed, obtained, maintained or submitted all
material reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required
and that all such reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments
were materially complete and correct on the date filed (or were corrected or supplemented by a subsequent submission) as required
for maintenance of their licenses, certificates, permits and other authorizations that are necessary for the conduct of their respective
businesses, in each case except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.


 




    	 	16	 



     


    

 


(ii)         No
Labor Disputes. No labor disturbance by or dispute with employees of the Company or any of its subsidiaries exists or, to the
knowledge of the Company, is contemplated or threatened, and the Company is not aware of any existing or imminent labor disturbance
by, or dispute with, the employees of any of its or its subsidiaries’ principal suppliers, contractors or customers, except
as would not reasonably be expected to have a Material Adverse Effect.


 


(jj)         Possession
of Licenses and Permits. The Company and its subsidiaries possess all certificates, authorizations and permits issued by the
appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, including without
limitation all such certificates, authorizations and permits required by the FDA or any other federal, state or foreign agencies
or bodies engaged in the regulation of medical devices, except where the failure to so possess such certificates, authorizations
and permits, singly or in the aggregate, would not reasonably be expected to have a Material Adverse Effect; and neither the Company
nor any of its subsidiaries has received any notice of proceedings relating to the revocation or modification of any such certificate,
authorization or permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would
reasonably be expected to have a Material Adverse Effect.


 


(kk)       Clinical
Trials. Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, the
studies, tests and clinical trials, conducted by or on behalf of the Company that are described in the Time of Sale Information
and the Offering Memorandum were and, if still pending, are being, conducted in accordance with experimental protocols, procedures
and controls pursuant to, where applicable, accepted professional scientific standards; the descriptions of the results of such
studies, tests and trials contained in the Time of Sale Information and the Offering Memorandum are accurate in all material respects;
and neither the Company nor any of its subsidiaries has received any notices or correspondence from the FDA or any foreign, state
or local governmental body exercising comparable authority requiring the termination, suspension or material modification of any
studies, tests or preclinical or clinical trials conducted by or on behalf of the Company which termination, suspension or material
modification would reasonably be expected to have a Material Adverse Effect.


 




    	 	17	 



     


    

 


(ll)         Compliance
with FDA Regulations. Except as set forth in the Time of Sale Information and the Offering Memorandum, the Company and its
subsidiaries, and, to the Company’s knowledge, its distributors, manufacturers and sublicensees, are not subject to any obligation
arising under an administrative or regulatory action, FDA inspection, FDA warning letter, FDA notice of violation letter, recall
notice, or other notice or commitment made to or with the FDA or any other governmental authority (including without limitation
the U.S. Drug Enforcement Agency (the “DEA”)) regarding or impacting the Company’s FDA cleared products
(the “Company Products”), including without limitation any notice alleging a violation of any applicable law
or required registration, except for any such obligation that has not, and would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect. Except as described in the Time of Sale Information and the Offering Memorandum,
neither the Company nor its subsidiaries have received any written or other notice from the FDA, the DEA or a comparable governmental
authority alleging that the Company Products are the subject of any pending or, to the Company’s knowledge, threatened investigation
in any jurisdiction that has not been fully remedied. Except as described in the Time of Sale Information and the Offering Memorandum,
the Company and its subsidiaries are in compliance with all applicable laws administered or issued by the FDA or any other governmental
authority, including, without limitation, those requirements relating to the testing, handling, distribution, regulatory approval,
pricing approval, annual reporting, registration, good manufacturing practices, record-keeping, adverse event reporting, promotion,
sales, packaging, labeling and advertising of drugs and controlled substances (where applicable) in each case in all material respects.
The promotion, sale, manufacture, storage, packaging, labeling, handling, testing and distribution of the Company Products for
which registrations have been obtained by the Company and its subsidiaries is being, and at all times following such registration
has been, conducted in compliance in all material respects with the registrations, except for any failure that has not, and would
not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. All regulatory filings made by
the Company or its subsidiaries to any governmental authority with respect to any of the Company Products, when submitted to the
governmental authority were accurate in all material respects as of the date of submission, or as subsequently corrected or modified.
Neither the Company nor its subsidiaries (including their officers or employees) nor, to the Company’s knowledge, any principal
investigator or sub-investigator engaged in any clinical investigation conducted with respect to any Company Product (including
their officers or employees) has been convicted of any crime under 21 U.S.C. Section 335a(a) or any similar state or foreign law
or under 21 U.S.C. Section 335a(b) or any similar state or foreign law. To the Company’s knowledge, there are no facts which
would reasonably be expected to cause (i) the withdrawal or recall of any Company Product sold by or on behalf of the Company,
its subsidiaries, distributors or sublicensees, or (ii) a termination or suspension of marketing of any such Company Product.


 




    	 	18	 



     


    

 


(mm)     Compliance
with and Liability under Environmental Laws. (i) The Company and its subsidiaries (a) are, and at all times during the
last five years have been, in compliance in all material respects with any and all applicable federal, state, local and foreign
laws, rules, regulations, requirements, decisions, judgments, decrees, orders and the common law relating to pollution or the protection
of the environment, natural resources or human health or safety in respect of Hazardous Materials (defined below), including those
relating to the generation, storage, treatment, use, handling, transportation, Release (as defined below) or threat of Release
of Hazardous Materials (collectively, “Environmental Laws”), (b) have received and are in compliance with all
permits, licenses, certificates or other authorizations or approvals required of them under applicable Environmental Laws to conduct
their respective businesses, (c) have not received any written or, to the knowledge of the Company, other notice of any actual
or potential liability under or relating to, or actual or potential violation of, any Environmental Laws, including for the investigation
or remediation of any Release or threat of Release of Hazardous Materials, (d) are not conducting or paying for, in whole or in
part, any investigation, remediation or other corrective action pursuant to any Environmental Law at any location, and (e) are
not a party to any order, decree or agreement that imposes any obligation or liability under any Environmental Law, and (ii) there
are no costs or liabilities associated with Environmental Laws of or relating to the Company or its subsidiaries, except in the
case of each of (i) and (ii) above, for any such matter, as would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect; and (iii) except as described in the Time of Sale Information and the Offering Memorandum,
(a) there are no proceedings that are pending, or that are known to be contemplated, against the Company or any of its subsidiaries
under any Environmental Laws in which a governmental entity is also a party, other than such proceedings regarding which it is
reasonably believed no monetary sanctions of $100,000 or more will be imposed, (b) the Company and its subsidiaries are not aware
of any facts or issues regarding compliance with Environmental Laws, or liabilities or other obligations under Environmental Laws,
including the Release or threat of Release of Hazardous Materials, that would reasonably be expected to have a material effect
on the capital expenditures, earnings or competitive position of the Company and its subsidiaries, and (c) none of the Company
and its subsidiaries anticipates material capital expenditures relating to any Environmental Laws. “Hazardous Materials”
means any material, chemical, substance, waste, pollutant, contaminant, or constituent thereof, including petroleum (including
crude oil or any fraction thereof) and petroleum products and asbestos and asbestos containing materials, which are regulated or
for which liability is imposed under any Environmental Law. “Release” means any spilling, leaking, seepage,
pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing, depositing, dispersing in,
into or through the environment.


 


(nn)         Hazardous
Materials. There has been no storage, generation, transportation, use, handling, treatment, or Release of Hazardous Materials
by or caused by the Company or any of its subsidiaries (or, to the knowledge of the Company and its subsidiaries, any other entity
(including any predecessor) for whose acts or omissions the Company or any of its subsidiaries is or would reasonably be expected
to be liable) at, on, under or from any property or facility now or previously owned, operated or leased by the Company or any
of its subsidiaries, or at, on, under or from any other property or facility, in violation of any Environmental Laws or in a manner
or amount or to a location that would reasonably be expected to result in any liability under any Environmental Law on the part
of the Company or any subsidiary, except for any violation or liability which would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.


 




    	 	19	 



     


    

 


(oo)      Compliance
with ERISA. (i) Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”), for which the Company or any member of its “Controlled Group”
(defined as any organization which is a member of a controlled group of corporations within the meaning of Section 414 of the
Internal Revenue Code of 1986 (the “Code”)) would have any liability (each, a “Plan”) has
been maintained in all material respects in compliance with its terms and the requirements of any applicable statutes, orders,
rules and regulations, including but not limited to ERISA and the Code, except for noncompliance that would not reasonably be
expected to result in material liability to the Company or its subsidiaries; (ii) no prohibited transaction, within the meaning
of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any Plan excluding transactions effected pursuant
to a statutory or administrative exemption that would reasonably be expected to have a material liability to the Company or its
subsidiaries; (iii) for each Plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA,
the minimum funding standard of Section 412 of the Code or Section 302 of ERISA, as applicable, has been satisfied (without taking
into account any waiver thereof or extension of any amortization period) and is reasonably expected to be satisfied in the future
(without taking into account any waiver thereof or extension of any amortization period); (iv) the fair market value of the
assets of each Plan exceeds the present value of all benefits accrued under such Plan (determined based on those assumptions used
to fund such Plan); (v) no “reportable event” (within the meaning of Section 4043(c) of ERISA) has occurred or
is reasonably expected to occur that either has resulted, or would reasonably be expected to result, in material liability to
the Company or its subsidiaries; (vi) neither the Company nor any member of the Controlled Group has incurred, nor reasonably
expects to incur, any liability under Title IV of ERISA (other than contributions to the Plan or premiums to the PBGC, in the
ordinary course and without default) in respect of a Plan (including a “multiemployer plan”, within the meaning of
Section 4001(a)(3) of ERISA); and (vii) to the Company’s knowledge, there is no pending audit or investigation by the
Internal Revenue Service, the U.S. Department of Labor, the Pension Benefit Guaranty Corporation or any other governmental agency
or any foreign regulatory agency with respect to any Plan that would reasonably be expected to result in material liability to
the Company or its subsidiaries. None of the following events has occurred or is reasonably likely to occur: (x) a material increase
in the aggregate amount of contributions required to be made to all Plans by the Company or its subsidiaries in the current fiscal
year of the Company and its subsidiaries compared to the amount of such contributions made in the Company and its subsidiaries’
most recently completed fiscal year; or (y) a material increase in the Company and its subsidiaries’ “accumulated
post-retirement benefit obligations” (within the meaning of Statement of Financial Accounting Standards 106) compared to
the amount of such obligations in the Company and its subsidiaries’ most recently completed fiscal year.


 


(pp)      Disclosure
Controls. The Company and its subsidiaries maintain an effective system of “disclosure controls and procedures”
(as defined in Rule 13a-15(e) of the Exchange Act) that complies with the requirements of the Exchange Act and that has been designed
to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms, including
controls and procedures designed to ensure that such information is accumulated and communicated to the Company’s management
as appropriate to allow timely decisions regarding required disclosure. The Company and its subsidiaries have carried out evaluations
of the effectiveness of their disclosure controls and procedures as required by Rule 13a-15 of the Exchange Act.


 




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(qq)         Accounting
Controls. The Company and its subsidiaries maintain systems of “internal control over financial reporting” (as
defined in Rule 13a-15(f) of the Exchange Act) that comply with the requirements of the Exchange Act and have been designed by,
or under the supervision of, their respective principal executive and principal financial officers, or persons performing similar
functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles, including, but not limited to, internal accounting
controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements
in conformity with generally accepted accounting principles and to maintain asset accountability; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; (iv) the recorded accountability for
assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences;
and (v) interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Time of Sale
Information and the Offering Memorandum fairly presents the information called for in all material respects and is prepared in
accordance with the Commission’s rules and guidelines applicable thereto. Except as disclosed in the Time of Sale Information
and the Offering Memorandum, there are no material weaknesses in the Company’s internal controls. The Company’s auditors
and the Audit Committee of the Board of Directors of the Company have been advised of: (i) all significant deficiencies and material
weaknesses in the design or operation of internal controls over financial reporting which have adversely affected or are reasonably
likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and (ii)
any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s
internal controls over financial reporting.


 


(rr)         eXtensible
Business Reporting Language. The interactive data in eXtensible Business Reporting Language included or incorporated by reference
in the Time of Sale Information and the Offering Memorandum fairly presents the information called for in all material respects
and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto.


 


(ss)      Insurance.
The Company and its subsidiaries have insurance covering their respective properties, operations, personnel and businesses,
including business interruption insurance, which insurance is in amounts and insures against such losses and risks which the Company
reasonably believes are adequate to protect the Company and its subsidiaries and their respective businesses; and neither the Company
nor any of its subsidiaries has (i) received notice from any insurer or agent of such insurer that capital improvements or
other expenditures are required or necessary to be made in order to continue such insurance or (ii) any reason to believe
that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage
at reasonable cost from similar insurers as may be necessary to continue its business in all material respects.


 




    	 	21	 



     


    

 


(tt)        No
Unlawful Payments. Neither the Company nor any of its subsidiaries nor any director, officer or employee of the Company or
any of its subsidiaries nor, to the knowledge of the Company, any agent, affiliate or other person while acting for or on behalf
of the Company or any of its subsidiaries has (i) used any corporate funds for any unlawful contribution, gift, entertainment
or other unlawful expense relating to political activity; (ii) made or taken an 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 of a public international organization, or any person acting in an official capacity
for or on behalf of any of the foregoing, or any political party or party official or candidate for political office; (iii) violated
or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended, or any applicable law or regulation
implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, or committed
an offence under the Bribery Act 2010 of the United Kingdom or any other applicable anti-bribery or anti-corruption law; or (iv)
made, offered, agreed, requested or taken an act in furtherance of any unlawful bribe or other unlawful benefit, including, without
limitation, any rebate, payoff, influence payment, kickback or other unlawful or improper payment or benefit. The Company and its
subsidiaries have instituted, maintain and enforce policies and procedures designed to promote and ensure compliance with all applicable
anti-bribery and anti-corruption laws.


 


(uu)      Compliance
with Anti-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, including those of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the applicable money laundering statutes of all jurisdictions where the Company
or any of its subsidiaries conducts business, the rules and regulations thereunder and any related or similar rules, regulations
or guidelines issued, administered or enforced by any governmental agency (collectively, the “Anti-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 Anti-Money Laundering Laws is pending or, to the knowledge of the Company,
threatened.


 


(vv)      No
Conflicts with Sanctions Laws. Neither the Company nor any of its subsidiaries, directors, officers, or employees, nor, to
the knowledge of the Company, any agent, affiliate or other person authorized to act on behalf of the Company or any of its subsidiaries
is currently the subject or the target of any sanctions administered or enforced by the U.S. government, (including, without limitation,
the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State and including, without
limitation, the designation as a “specially designated national” or “blocked person”), the United Nations
Security Council, the European Union, Her Majesty’s Treasury or other relevant sanctions authority (collectively, “Sanctions”),
nor is the Company, any of its subsidiaries located, organized or resident in a country or territory that is the subject or target
of Sanctions, including, without limitation, Cuba, Iran, North Korea, Syria and Crimea (each, a “Sanctioned Country”);
and the Company will not directly or indirectly use the proceeds of the offering of the Securities hereunder, or lend, contribute
or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate
any activities of or business with any person that, at the time of such funding or facilitation, is the subject or target of Sanctions,
(ii) to fund or facilitate any activities of or business in any Sanctioned Country; or (iii) 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 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.


 




    	 	22	 



     


    

 


(ww)      No
Restrictions on Subsidiaries. No subsidiary of the Company is currently prohibited, directly or indirectly, under any agreement
or other instrument to which it is a party or is subject, from paying any dividends to the Company, from making any other distribution
on such subsidiary’s capital stock, from repaying to the Company any loans or advances to such subsidiary from the Company
or from transferring any of such subsidiary’s properties or assets to the Company or any other subsidiary of the Company.


 


(xx)       No
Broker’s Fees. Other than as contemplated by this Agreement or as disclosed in the Time of Sale Information and the Offering
Memorandum, 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.


 


(yy)      Rule
144A Eligibility. On the Closing Date, the Securities will not be of the same class as securities listed on a national securities
exchange registered under Section 6 of the Exchange Act or quoted in an automated inter-dealer quotation system; and each
of the Time of Sale Information, as of the Time of Sale, and the Offering Memorandum, as of its date, contains or will contain
all the information that, if requested by a prospective purchaser of the Securities, would be required to be provided to such prospective
purchaser pursuant to Rule 144A(d)(4) under the Securities Act.


 


(zz)        No
Integration. Neither the Company nor any of its affiliates (as defined in Rule 501(b) of Regulation D) has, directly or through
any agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in
the Securities Act), that is or will be integrated with the sale of the Securities in a manner that would require registration
of the Securities under the Securities Act.


 


(aaa)     No
General Solicitation. None of the Company or any of its affiliates or any other person acting on its or their behalf (other
than the Initial Purchasers, as to which no representation is made) has solicited offers for, or offered or sold, the Securities
by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D other than
by means of a Permitted General Solicitation or in any manner involving a public offering within the meaning of Section 4(a)(2)
of the Securities Act.


 


(bbb)    Securities
Law Exemptions. Assuming the accuracy of the representations and warranties of the Initial Purchasers contained in Section
2(b) and their compliance with their agreements set forth therein and in Section 5 hereof, it is not necessary, in connection with
the issuance and sale of the Securities to the Initial Purchasers and the offer, resale and delivery of the Securities by the Initial
Purchasers in the manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum, to register
the Securities under the Securities Act or to qualify the Indenture under the Trust Indenture Act.


 




    	 	23	 



     


    

 


(ccc)     No
Stabilization. The Company has not taken, directly or indirectly, any action designed to or that would reasonably be expected
to cause or result in any stabilization or manipulation of the price of the Securities or the Underlying Securities except as
otherwise permitted by Regulation M under the Exchange Act.


 


(ddd)    Margin
Rules. Neither the issuance, sale and delivery of the Securities nor the application of the proceeds thereof by the Company
as described in the Time of Sale Information and the Offering Memorandum will violate Regulation T, U or X of the Board of Governors
of the Federal Reserve System or any other regulation of such Board of Governors.


 


(eee)     Forward-Looking
Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange
Act) contained in the Time of Sale Information and the Offering Memorandum has been made or reaffirmed without a reasonable basis
or has been disclosed other than in good faith.


 


(fff)       Statistical
and Market Data. Nothing has come to the attention of the Company that has caused the Company to believe that the statistical
and market-related data included or incorporated by reference in the Time of Sale Information and the Offering Memorandum is not
based on or derived from sources that are reliable and accurate in all material respects.


 


(ggg)    Sarbanes-Oxley
Act. There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in their
capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002, as amended and the rules and regulations promulgated
in connection therewith, including Section 402 related to loans and Sections 302 and 906 related to certifications.


 


(hhh)   No
Ratings. There are (and prior to the Closing Date, will be) no debt securities or preferred stock issued or guaranteed by the
Company or any of its subsidiaries that are rated by a “nationally recognized statistical rating organization,” as
such term is defined in Section 3(a)(62) of the Exchange Act.


 


4.          Further
Agreements of the Company. The Company covenants and agrees with each Initial Purchaser that:


 


(a)         Delivery
of Copies. The Company will deliver to the Initial Purchasers as many copies of the Preliminary Offering Memorandum, any other
Time of Sale Information, any Issuer Written Communication and the Offering Memorandum (including all amendments and supplements
thereto) as the Representative may reasonably request.


 




    	 	24	 



     


    

 


(b)         Offering
Memorandum, Amendments or Supplements. Before finalizing the Offering Memorandum or making or distributing any amendment or
supplement to any of the Time of Sale Information or the Offering Memorandum or filing with the Commission any document that will
be incorporated by reference therein, the Company will furnish to the Representative and counsel for the Initial Purchasers a copy
of the proposed Offering Memorandum or such amendment or supplement or document to be incorporated by reference therein for review,
and, unless, in the case of reports under the Exchange Act, legally required to be filed in the opinion of counsel to the Company,
will not distribute any such proposed Offering Memorandum, amendment or supplement or file any such document with the Commission
to which the Representative reasonably objects.


 


(c)          Additional
Written Communications. Before making, preparing, using, authorizing, approving or referring to any Issuer Written Communication,
the Company will furnish to the Representative and counsel for the Initial Purchasers a copy of such written communication for
review and will not make, prepare, use, authorize, approve or refer to any such written communication to which the Representative
reasonably objects.


 


(d)         Notice
to the Representative. The Company will advise the Representative promptly, and confirm such advice in writing, (i) of
the issuance by any governmental or regulatory authority of any order preventing or suspending the use of any of the Time of Sale
Information, any Issuer Written Communication, any Permitted General Solicitation or the Offering Memorandum, or the initiation
or threatening of any proceeding for that purpose; (ii) of the occurrence or development of any event at any time prior to
the completion of the initial offering of the Securities as a result of which any of the Time of Sale Information, any Issuer Written
Communication, any Permitted General Solicitation or the Offering Memorandum, as then amended or supplemented, would include 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 existing when such Time of Sale Information, Issuer Written Communication, any Permitted General Solicitation
or the Offering Memorandum is delivered to a purchaser, not misleading; and (iii) of the receipt by the Company of any notice
with respect to any suspension of the qualification of the Securities for offer and sale in any jurisdiction or the initiation
or threatening of any proceeding for such purpose; and the Company will use its commercially reasonable efforts to prevent the
issuance of any such order preventing or suspending the use of any of the Time of Sale Information, any Issuer Written Communication,
any Permitted General Solicitation or the Offering Memorandum or suspending any such qualification of the Securities and, if any
such order is issued, will obtain as soon as possible the withdrawal thereof.


 




    	 	25	 



     


    

 


(e)          Ongoing
Compliance of the Offering Memorandum and Time of Sale Information. (i) If at any time prior to the completion of the
initial offering of the Securities (A) any event or development shall occur or condition shall exist as a result of which
the Offering Memorandum as then amended or supplemented would include any 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 existing when the Offering
Memorandum is delivered to a purchaser, not misleading or (B) it is necessary to amend or supplement the Offering Memorandum
to comply with law, the Company will immediately notify the Initial Purchasers thereof and forthwith prepare and, subject to paragraph
(b) above, furnish to the Initial Purchasers such amendments or supplements to the Offering Memorandum (or any document to be filed
with the Commission and incorporated by reference therein) as may be necessary so that the statements in the Offering Memorandum
as so amended or supplemented (including such document to be incorporated by reference therein) will not, in the light of the circumstances
existing when the Offering Memorandum is delivered to a purchaser, be misleading or so that the Offering Memorandum will comply
with law and (ii) if at any time prior to the Closing Date (A) any event or development shall occur or condition shall
exist as a result of which any of the Time of Sale Information as then amended or supplemented would include any 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, not misleading or (B) it is necessary to amend or supplement any of the Time of Sale Information
to comply with law, the Company will immediately notify the Initial Purchasers thereof and forthwith prepare and, subject to paragraph
(b) above, furnish to the Initial Purchasers such amendments or supplements to any of the Time of Sale Information (or any document
to be filed with the Commission and incorporated by reference therein) as may be necessary so that the statements in any of the
Time of Sale Information as so amended or supplemented (including such documents to be incorporated by reference therein) will
not, in light of the circumstances under which they were made, be misleading. The Representative will promptly notify the Company
of the completion of the initial offering of the Securities.


 


(f)          Blue
Sky Compliance. The Company will use its commercially reasonable efforts to qualify the Securities for offer and sale under
the securities or Blue Sky laws of such jurisdictions as the Representative shall reasonably request and will continue such qualifications
in effect so long as required for the offering and resale of the Securities; provided that the Company shall not be required
to (i) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not
otherwise be required to so qualify, (ii) file any general consent to service of process in any such jurisdiction or (iii) subject
itself to taxation in any such jurisdiction if it is not otherwise so subject.


 


(g)          Clear
Market. For a period of 90 days after the date of the Offering Memorandum, the Company will not (i) offer, pledge, sell, contract
to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to
purchase, or otherwise transfer or dispose of, directly or indirectly, or file with or confidentially submit to the Commission
a registration statement under the Securities Act relating to, any shares of Common Stock or any securities convertible into or
exercisable or exchangeable for Common Stock, or publicly disclose the intention to make any offer, sale, pledge, disposition or
filing, or (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of
ownership of the Common Stock or any such other securities, whether any such transaction described in clause (i) or (ii) above
is to be settled by delivery of Common Stock or such other securities, in cash or otherwise, without the prior written consent
of J.P. Morgan Securities LLC, other than (1) the Securities to be sold hereunder or the issuance of any Underlying Securities;
(2) the grant by the Company of employee or director stock options, restricted stock, restricted stock units or other awards pursuant
to the Company’s equity incentive plans existing on the date hereof and disclosed or incorporated by reference in the Time
of Sale Information and the Offering Memorandum (the “Equity Plans”); (3) the issuance by the Company of
any shares of Common Stock upon (x) the exercise of any option or warrant or the conversion of a security outstanding on the
date hereof of which the Representative has been advised in writing or under any Equity Plans or (y) the vesting of or removal
or lapse of restrictions on restricted stock, restricted stock units or other awards under the Equity Plans in accordance with
the terms of such plans; or (4) the filing by the Company of any registration statement on Form S-8 in respect of securities offered
pursuant to the terms of the Equity Plans. For the avoidance of doubt, the restrictions in this paragraph do not apply to the Company’s
entry into and performance under or termination of the Prepaid Forward Agreement.


 




    	 	26	 



     


    

 


(h)         Use
of Proceeds. The Company will apply the net proceeds from the sale of the Securities as described in the Time of Sale Information
and the Offering Memorandum under the heading “Use of Proceeds”.


 


(i)          No
Stabilization. The Company will not take, directly or indirectly, any action designed to or that would reasonably be expected
to cause or result in any stabilization or manipulation of the price of the Securities or the Underlying Securities and will not
take any action prohibited by Regulation M under the Exchange Act in connection with the distribution of the Securities contemplated
hereby.


 


(j)          Underlying
Securities. The Company will reserve and keep available at all times, free of pre-emptive rights, the Conversion Shares for
the purpose of enabling the Company to satisfy all obligations to issue any Underlying Securities upon conversion of the Securities.
The Company will use its best efforts to cause the Conversion Shares to be listed and to maintain the listing of the Conversion
Shares on the Exchange.


 


(k)          Supplying
Information. While the Securities remain outstanding and are “restricted securities” within the meaning of Rule
144(a)(3) under the Securities Act, the Company will, during any period in which the Company is not subject to and in compliance
with Section 13 or 15(d) of the Exchange Act, furnish to holders of the Securities and prospective purchasers of the Securities
designated by such holders, in each case upon request, the information required to be delivered pursuant to Rule 144A(d)(4) under
the Securities Act.


 


(l)          DTC.
The Company will assist the Initial Purchasers in arranging for the Securities to be eligible for clearance and settlement through
DTC.


 


(m)          No
Resales by the Company. The Company will not, and will not permit any of its controlled “affiliates” (as defined
in Rule 144 under the Securities Act) to, resell any of the Securities that have been acquired by any of them, except for Securities
purchased by the Company or any such affiliates and resold in a transaction registered under the Securities Act. The Company will
use its commerically reasonable efforts to ensure that the Affiliated Purchaser does not purchase any Securities other than the
Affiliate Securities, and does not resell any Affiliate Securities other than pursuant to the terms (including the restrictions
on transfer) set forth in such Affiliate Securities.


 




    	 	27	 



     


    

 


(n)          No
Integration. Neither the Company nor any of its affiliates (as defined in Rule 501(b) of Regulation D) will, directly or through
any agent, sell, offer for sale, solicit offers to buy or otherwise negotiate in respect of, any security (as defined in the Securities
Act), that is or will be integrated with the sale of the Securities in a manner that would require registration of the Securities
under the Securities Act.


 


(o)          No
General Solicitation. None of the Company or any of its affiliates or any other person acting on its or their behalf (other
than the Initial Purchasers, as to which no covenant is given) will solicit offers for, or offer or sell, the Securities by means
of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D without the prior
written consent of the Representative or in any manner involving a public offering within the meaning of Section 4(a)(2) of the
Securities Act.


 


5.          Certain
Agreements of the Initial Purchasers. Each Initial Purchaser hereby represents and agrees that it has not and will not use,
authorize use of, refer to, or participate in the planning for use of, any written communication that constitutes an offer to sell
or the solicitation of an offer to buy the Securities other than (i) the Preliminary Offering Memorandum and the Offering Memorandum,
(ii) a written communication that contains no “issuer information” (as defined in Rule 433(h)(2) under the Securities
Act) that was not included (including through incorporation by reference) in the Time of Sale Information or the Offering Memorandum,
(iii) any written communication listed on Annex A or Annex D or prepared pursuant to Section 4(c) above (including any electronic
road show) or 4(o) above, (iv) any written communication prepared by such Initial Purchaser and approved by the Company in advance
in writing or (v) any written communication relating to or that contains the terms of the Securities and/or other information that
was included (including through incorporation by reference) in the Time of Sale Information or the Offering Memorandum.


 


6.          Conditions
of Initial Purchasers’ Obligations. The obligation of each Initial Purchaser to purchase the Underwritten Securities
on the Closing Date or the Option Securities on any Additional Closing Date, as the case may be as provided herein is subject
to the performance by the Company of its covenants and other obligations hereunder and to the following additional conditions:


 


(a)          Representations
and Warranties. The representations and warranties of the Company contained in Section 3 hereof shall be true and correct
on the date hereof and on and as of the Closing Date or any Additional Closing Date, as the case may be; and the statements of
the Company and its officers made in any certificates delivered pursuant to this Agreement shall be true and correct on and as
of the Closing Date or any Additional Closing Date, as the case may be.


 


(b)          No
Material Adverse Change. No event or condition of a type described in Section 3(g) hereof shall have occurred or shall exist,
which event or condition is not described or incorporated by reference in the Time of Sale Information (excluding any amendment
or supplement thereto) and the Offering Memorandum (excluding any amendment or supplement thereto) and the effect of which in the
judgment of the Representative makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities
on the Closing Date or the Additional Closing Date, as the case may be, on the terms and in the manner contemplated by this Agreement,
the Time of Sale Information and the Offering Memorandum.


 




    	 	28	 



     


    

 


(c)          Officer’s
Certificate. The Representative shall have received on and as of the Closing Date or any Additional Closing Date, as the case
may be, a certificate of the chief financial officer or chief accounting officer of the Company and one additional senior executive
officer of the Company who is satisfactory to the Representative (i) confirming that such officers have carefully reviewed
the Time of Sale Information and the Offering Memorandum and, to the best knowledge of such officers, the representations set forth
in Sections 3(b) and 3(d) hereof are true and correct, (ii) confirming that the other representations and warranties of the
Company in this Agreement are true and correct and that the Company has complied with all agreements and satisfied all conditions
on its part to be performed or satisfied hereunder at or prior to such Closing Date, and (iii) to the effect set forth in
paragraph (b) above.


 


(d)          Comfort
Letters. (i) On the date of this Agreement and on the Closing Date or the Additional Closing Date, as the case may be,
Ernst & Young LLP shall have furnished to the Representative, at the request of the Company, letters, dated the respective
dates of delivery thereof and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to the Representative,
containing statements and information of the type customarily included in accountants’ “comfort letters” to underwriters
with respect to the financial statements and certain financial information contained or incorporated by reference in the Time of
Sale Information and the Offering Memorandum; provided, that the letter delivered on the Closing Date or the Additional
Closing Date, as the case may be, shall use a “cut-off” date no more than three business days prior to such Closing
Date or such Additional Closing Date, as the case may be; and (ii) On the date of this Agreement and on the Closing Date or the
Additional Closing Date, as the case may be, the Company shall have furnished to the Representative a certificate, dated the respective
dates of delivery thereof and addressed to the Initial Purchasers, of its chief financial officer with respect to certain financial
data contained in the Time of Sale Information and the Offering Memorandum, providing “management comfort” with respect
to such information, in form and substance reasonably satisfactory to the Representative.


 


(e)          Opinion
and 10b-5 Statement of Counsel for the Company. Snell & Wilmer L.L.P., counsel for the Company, shall have furnished to
the Representative, at the request of the Company, their written opinion and 10b-5 statement, dated the Closing Date or the Additional
Closing Date, as the case may be, and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to the
Representative.


 


(f)          Opinion
of Special Counsel for the Company. Wilson Sonsini Goodrich & Rosati, Professional Corporation, special counsel for the
Company, shall have furnished to the Representative, at the request of the Company, their written opinion, dated the Closing Date
or the Additional Closing Date, as the case may be, and addressed to the Initial Purchasers, in form and substance reasonably satisfactory
to the Representative.


 




    	 	29	 



     


    

 


(g)         Opinion
of Intellectual Property Counsel for the Company. Klarquist Sparkman, LLP, intellectual property counsel for the Company,
shall have furnished to the Representative, at the request of the Company, their written opinion, dated the Closing Date or the
Additional Closing Date, as the case may be, and addressed to the Initial Purchasers, in form and substance reasonably satisfactory
to the Representative.


 


(h)          Opinion
of Regulatory Counsel for the Company. Snell & Wilmer L.L.P., regulatory counsel for the Company, shall have furnished
to the Representative, at the request of the Company, their written opinion, dated the Closing Date or the Additional Closing Date,
as the case may be, and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to the Representative.


 


(i)          Opinion
and 10b-5 Statement of Counsel for the Initial Purchasers. The Representative shall have received on and as of the Closing
Date or any Additional Closing Date, as the case may be, an opinion and 10b-5 statement of Davis Polk & Wardwell LLP, counsel
for the Initial Purchasers, with respect to such matters as the Representative may reasonably request, and such counsel shall have
received such documents and information as they may reasonably request to enable them to pass upon such matters.


 


(j)          No
Legal Impediment to Issuance. No action shall have been taken and no statute, rule, regulation or order shall have been enacted,
adopted or issued by any federal, state or foreign governmental or regulatory authority that would, as of the Closing Date or any
Additional Closing Date, as the case may be, prevent the issuance or sale of the Securities; and no injunction or order of any
federal, state or foreign court shall have been issued that would, as of the Closing Date or any Additional Closing Date, as the
case may be, prevent the issuance or sale of the Securities.


 


(k)          Good
Standing. The Representative shall have received on and as of the Closing Date or any Additional Closing Date, as the case
may be, satisfactory evidence of the good standing of the Company and its significant subsidiaries in their respective jurisdictions
of organization and their good standing as foreign entities in such other jurisdictions as the Representative may reasonably request,
in each case in writing or any standard form of telecommunication from the appropriate governmental authorities of such jurisdictions.


 


(l)          DTC.
The Securities shall be eligible for clearance and settlement through DTC.


 


(m)        Exchange
Listing. A “Listing of Additional Shares Notification Form” relating to the Conversion Shares shall have been submitted
to the Exchange, and the Exchange shall have informed the Company that it has completed its review of such form.


 


(n)          Lock-up
Agreements. The “lock-up” agreements each substantially in the form of Exhibit A hereto, between you, and certain
shareholders, officers and directors of the Company relating to sales and certain other dispositions of shares of Common Stock
or certain other securities, delivered to you on or before the date hereof, shall be in full force and effect on the Closing Date
or Additional Closing Date, as the case may be.


 




    	 	30	 



     


    

 


(o)          Additional
Documents. On or prior to the Closing Date or any Additional Closing Date, as the case may be, the Company shall have furnished
to the Representative such further certificates and documents as the Representative may reasonably request.


 


All opinions, letters, certificates and
evidence mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if
they are in form and substance reasonably satisfactory to counsel for the Initial Purchasers.


 


7.           Indemnification
and Contribution.


 


(a)          Indemnification
of the Initial Purchasers. The Company agrees to indemnify and hold harmless each Initial Purchaser, its affiliates, its directors
and officers and each person, if any, who controls such Initial Purchaser within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation,
reasonable legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such
fees and expenses are incurred), joint or several, that arise out of, or are based upon, any untrue statement or alleged untrue
statement of a material fact contained in the Preliminary Offering Memorandum, any of the other Time of Sale Information, any Issuer
Written Communication, any Permitted General Solicitation, any road show as defined in Rule 433(h) under the Securities Act (a
“road show”) or the Offering Memorandum (or any amendment or supplement thereto) or any omission or alleged
omission to state therein a material fact necessary in order to make the statements therein, in light of the circumstances under
which they were made, not misleading, in each case except insofar as such losses, claims, damages or liabilities arise out of,
or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity
with any information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the
Representative expressly for use therein, it being understood and agreed that the only such information furnished by any Initial
Purchaser consists of the information described as such in subsection (b) below.


 


(b)         Indemnification
of the Company. Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless the Company, its directors,
its officers and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses,
claims, damages or liabilities that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement
or omission made in reliance upon and in conformity with any information relating to such Initial Purchaser furnished to the Company
in writing by such Initial Purchaser through the Representative expressly for use in the Preliminary Offering Memorandum, any of
the other Time of Sale Information (including any of the other Time of Sale Information that has subsequently been amended), any
Issuer Written Communication, any Permitted General Solicitation, any road show or the Offering Memorandum (or any amendment or
supplement thereto), it being understood and agreed that the only such information furnished by any Initial Purchaser consists
of the following information in the Offering Memorandum furnished on behalf of each Initial Purchaser: the information contained
in the fourth sentence in the third paragraph under the heading “Plan of distribution—New issue of notes” (which
third sentence begin with the words “The initial purchasers have advised us that they intend to make a market in the notes
...”; and the  first paragraph under the heading “Plan of distribution—Price stabilization and short
positions; repurchase of common stock” under the caption “Plan of Distribution”).


 




    	 	31	 



     


    

 


(c)          Notice
and Procedures. If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall
be brought or asserted against any person in respect of which indemnification may be sought pursuant to either paragraph (a) or
(b) above, such person (the “Indemnified Person”) shall promptly notify the person against whom such indemnification
may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the
Indemnifying Person shall not relieve it from any liability that it may have under paragraph (a) or (b) above except to the extent
that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided,
further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to
an Indemnified Person otherwise than under paragraph (a) or (b) above. If any such proceeding shall be brought or asserted against
an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person (who shall not, without the consent of the Indemnified Person, be counsel to
the Indemnifying Person) to represent the Indemnified Person in such proceeding and shall pay the fees and expenses of such counsel
related to such proceeding, as incurred. In any such proceeding, any Indemnified Person shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying
Person and the Indemnified Person shall have mutually agreed in writing to the contrary; (ii) the Indemnifying Person has failed
within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall
have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available
to the Indemnifying Person that would make separate representation advisable under the circumstances; or (iv) the named parties
in any such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation
of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood
and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction,
be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons,
and that all such fees and expenses shall be paid or reimbursed as they are incurred. Any such separate firm for any Initial Purchaser,
its affiliates, directors and officers and any control persons of such Initial Purchaser shall be designated in writing by J.P.
Morgan Securities LLC and any such separate firm for the Company, its directors, its officers and any control persons of the Company
shall be designated in writing by the Company. The Indemnifying Person 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 for which
the Indemnified Person is entitled to indemnification pursuant to this Section 7, the Indemnifying Person agrees to indemnify each
Indemnified Person from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing
sentence, if at any time an Indemnified Person shall have requested that an Indemnifying Person reimburse the Indemnified Person
for fees and expenses of counsel as contemplated by this paragraph, the Indemnifying Person shall be liable for any settlement
of any proceeding effected without its written consent if (A) such settlement is entered into more than 30 days after receipt by
the Indemnifying Person of such request and (B) the Indemnifying Person shall not have reimbursed the Indemnified Person in accordance
with such request prior to the date of such settlement. No Indemnifying Person shall, without the written consent of the Indemnified
Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have
been a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (x) includes
an unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person,
from all liability on claims that are the subject matter of such proceeding and (y) does not include any statement as to or any
admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.


 




    	 	32	 



     


    

 


(d)          Contribution.
If the indemnification provided for in paragraphs (a) or (b) above is unavailable to an Indemnified Person or insufficient in respect
of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu
of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as
a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits
received by the Company, on the one hand, and the Initial Purchasers, on the other, from the offering of the Securities or (ii)
if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) but also the relative fault of the Company, on the one hand, and the Initial
Purchasers, on the other, in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities,
as well as any other relevant equitable considerations. The relative benefits received by the Company, on the one hand, and the
Initial Purchasers, on the other, shall be deemed to be in the same respective proportions as the net proceeds (after deducting
discounts and commissions received by the Initial Purchasers but before deducting expenses) received by the Company from the sale
of the Securities and the total discounts and commissions received by the Initial Purchasers in connection therewith, as provided
in this Agreement, bear to the aggregate offering price of the Securities. The relative fault of the Company, on the one hand,
and the Initial Purchasers, on the other, shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied
by the Company or by the Initial Purchasers and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission.


 




    	 	33	 



     


    

 


(e)          Limitation
on Liability. The Company and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant
to this Section 7 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for
such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in paragraph
(d) above. The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred
to in paragraph (d) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred
by such Indemnified Person in connection with any such action or claim. Notwithstanding the provisions of this Section 7, in no
event shall an Initial Purchaser be required to contribute any amount in excess of the amount by which the total discounts and
commissions received by such Initial Purchaser with respect to the offering of the Securities exceeds the amount of any damages
that such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. 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. The Initial Purchasers’
obligations to contribute pursuant to this Section 7 are several in proportion to their respective purchase obligations hereunder
and not joint.


 


(f)          Non-Exclusive
Remedies. The remedies provided for in this Section 7 are not exclusive and shall not limit any rights or remedies which may
otherwise be available to any Indemnified Person at law or in equity.


 


8.           Effectiveness
of Agreement. This Agreement shall become effective upon the execution and delivery hereof by the parties hereto.


 


9.          Termination.
This Agreement may be terminated in the absolute discretion of the Representative, by notice to the Company, if after the execution
and delivery of this Agreement and prior to the Closing Date or, in the case of the Option Securities, prior to any Additional
Closing Date: (a) there has been, in the judgment of the Representative, since the time of execution of this Agreement or since
the respective dates as of which information is given in the Time of Sale Information or the Offering Memorandum, any material
adverse change in the business, properties, management, financial position, stockholders’ equity, results of operations or
prospects of the Company and its subsidiaries taken as a whole, (b) trading generally shall have been suspended or materially limited
on or by either the New York Stock Exchange or the Exchange; (c) trading of any securities issued or guaranteed by the Company
shall have been suspended on any exchange or in any over-the-counter market; (d) a general moratorium on commercial banking activities
shall have been declared by federal or New York State authorities; (e) there shall have occurred any major disruption of settlements
of securities, payment or clearance services in the United States or any other country where such securities are listed; or (f)
there shall have occurred any outbreak or escalation of hostilities or declaration by the United States of a national emergency
or war, or any change in financial markets or any calamity or crisis, either within or outside the United States, that, in the
judgment of the Representative, is material and adverse and makes it impracticable or inadvisable to proceed with the offering,
sale or delivery of the Securities on the Closing Date or the Additional Closing Date, as the case may be, on the terms and in
the manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum.


 




    	 	34	 



     


    

 


10.         Defaulting
Initial Purchaser. (a) If, on the Closing Date or any Additional Closing Date, as the case may be, any Initial Purchaser defaults
on its obligation to purchase the Securities that it has agreed to purchase hereunder on such date, the non-defaulting Initial
Purchasers may in their discretion arrange for the purchase of such Securities by other persons satisfactory to the Company on
the terms contained in this Agreement. If, within 36 hours after any such default by any Initial Purchaser, the non-defaulting
Initial Purchasers do not arrange for the purchase of such Securities, then the Company shall be entitled to a further period of
36 hours within which to procure other persons satisfactory to the non-defaulting Initial Purchasers to purchase such Securities
on such terms. If other persons become obligated or agree to purchase the Securities of a defaulting Initial Purchaser, either
the non-defaulting Initial Purchasers or the Company may postpone the Closing Date or any Additional Closing Date, as the case
may be, for up to five full business days in order to effect any changes that in the opinion of counsel for the Company or counsel
for the Initial Purchasers may be necessary in the Time of Sale Information, the Offering Memorandum or in any other document or
arrangement, and the Company agrees to promptly prepare any amendment or supplement to the Time of Sale Information or the Offering
Memorandum that effects any such changes; provided that any Additional Closing Date may not be postponed such that it would
fall outside the Exercise Period. As used in this Agreement, the term “Initial Purchaser” includes, for all
purposes of this Agreement unless the context otherwise requires, any person not listed in Schedule 1 hereto that, pursuant to
this Section 10, purchases Securities that a defaulting Initial Purchaser agreed but failed to purchase.


 


(b)          If,
after giving effect to any arrangements for the purchase of the Securities of a defaulting Initial Purchaser or Initial Purchasers
by the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate number of Securities
that remain unpurchased on the Closing Date or any Additional Closing Date, as the case may be does not exceed one-eleventh of
the aggregate number of Securities to be purchased on such date, then the Company shall have the right to require each non-defaulting
Initial Purchaser to purchase the number of Securities that such Initial Purchaser agreed to purchase hereunder on such date plus
such Initial Purchaser’s pro rata share (based on the number of Securities that such Initial Purchaser agreed to purchase
on such date) of the Securities of such defaulting Initial Purchaser or Initial Purchasers for which such arrangements have not
been made.


 




    	 	35	 



     


    

 


(c)          If,
after giving effect to any arrangements for the purchase of the Securities of a defaulting Initial Purchaser or Initial Purchasers
by the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate number of Securities
that remain unpurchased on the Closing Date or the Additional Closing Date, as the case may be, exceeds one-eleventh of the aggregate
amount of Securities to be purchased on such date, or if the Company shall not exercise the right described in paragraph (b) above,
then this Agreement or, with respect to any Additional Closing Date, the obligation of the Initial Purchasers to purchase Securities
on the Additional Closing Date, as the case may be, shall terminate without liability on the part of the non-defaulting Initial
Purchasers. Any termination of this Agreement pursuant to this Section 10 shall be without liability on the part of the Company,
except that the Company will continue to be liable for the payment of expenses as set forth in Section 11 hereof and except
that the provisions of Section 7 hereof shall not terminate and shall remain in effect.


 


(d)          Nothing
contained herein shall relieve a defaulting Initial Purchaser of any liability it may have to the Company or any non-defaulting
Initial Purchaser for damages caused by its default.


 


11.         Payment
of Expenses. (a) Whether or not the transactions contemplated by this Agreement are consummated or this Agreement is
terminated, the Company will pay or cause to be paid all costs and expenses of the Company incident to the performance of its obligations
hereunder, including without limitation, (i) the costs incident to the authorization, issuance, sale, preparation and delivery
of the Securities and any taxes payable in that connection; (ii) the costs incident to the preparation and printing of the
Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer Written Communication, any Permitted General Solicitation
and the Offering Memorandum (including any amendments and supplements thereto) and the distribution thereof; (iii) the costs
of reproducing and distributing each of the Transaction Documents; (iv) the fees and expenses of the Company’s counsel and
independent accountants; (v) the fees and expenses reasonably incurred in connection with the registration or qualification and
determination of eligibility for investment of the Securities under the state or foreign securities or blue sky laws of such jurisdictions
as the Representative may designate (including the related reasonable fees and expenses of counsel for the Initial Purchasers (not
to exceed $5,000 in the aggregate)); (vi) the fees and expenses of the Trustee and any paying agent (including the documented
related fees and expenses of any counsel to such parties); (vii) all expenses and application fees incurred in connection with
the application for the approval of the Securities for book-entry transfer by DTC; (viii) all expenses incurred by the Company
in connection with any “road show” presentation to potential investors; and (ix) all expenses and application fees
related to the listing of the Conversion Shares on the Exchange. Except as provided in this Section 11 and Section 7 hereof, the
several Underwriters shall pay all of their own costs and expenses.


 


(b)          If
(i) this Agreement is terminated pursuant to Section 9 on account of an event described in clause (a) or (c) therein, (ii) the
Company for any reason fails to tender the Securities for delivery to the Initial Purchasers or (iii) the Initial Purchasers decline
to purchase the Securities for any reason permitted under this Agreement, the Company agrees to reimburse the Initial Purchasers
for all documented out-of-pocket costs and expenses (including the fees and expenses of their counsel) reasonably incurred by the
Initial Purchasers in connection with this Agreement and the offering contemplated hereby; provided, however, that
in the event any such termination is effected after the Closing Date but prior to any Additional Closing Date with respect to the
purchase of any Option Securities, the Company shall only reimburse the Initial Purchasers for all reasonable out-of-pocket expenses
(including the fees and expenses of their counsel) reasonably incurred by the Initial Purchasers after the Closing Date in connection
with the proposed purchase of any such Option Securities.


 




    	 	36	 



     


    

 


12.         Persons
Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective successors and the officers and directors and any controlling persons referred to in Section 7 hereof. Nothing in this
Agreement is intended or shall be construed to give any other person any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein. No purchaser of Securities from any Initial Purchaser shall be deemed
to be a successor merely by reason of such purchase.


 


13.         Survival.
The respective indemnities, rights of contribution, representations, warranties and agreements of the Company and the Initial Purchasers
contained in this Agreement or made by or on behalf of the Company or the Initial Purchasers pursuant to this Agreement or any
certificate delivered pursuant hereto shall survive the delivery of and payment for the Securities and shall remain in full force
and effect, regardless of any termination of this Agreement or any investigation made by or on behalf of the Company or the Initial
Purchasers.


 


14.         Certain
Defined Terms. For purposes of this Agreement, (a) except where otherwise expressly provided, the term “affiliate”
has the meaning set forth in Rule 405 under the Securities Act; (b) the term “business day” means
any day other than a day on which banks are permitted or required to be closed in New York City; and (c) the term “subsidiary”
has the meaning set forth in Rule 405 under the Securities Act; and (d) the term “significant subsidiary”
has the meaning set forth in Rule 1-02 of Regulation S-X under the Exchange Act.


 


15.         Compliance
with USA Patriot Act. In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)), the Initial Purchasers are required to obtain, verify and record information that identifies their respective
clients, including the Company, which information may include the name and address of their respective clients, as well as other
information that will allow the Initial Purchasers to properly identify their respective clients.         


 


16.         Miscellaneous.
(a) Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given
if mailed or transmitted and confirmed by any standard form of telecommunication. Notices to the Initial Purchasers shall be given
to the Representative c/o J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179 (fax: (212) 622-8358), Attention:
Equity Syndicate Desk. Notices to the Company shall be given to it at 3950 South Country Club Road, Suite 470, Tucson, Arizona
(fax (520) 269-6580); Attention: Steve Reichling, Chief Financial Officer.


 


(b)          Governing
Law. This Agreement and any claim, controversy or dispute arising under or related to this Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to agreements made and to be performed in such state.


 




    	 	37	 



     


    

 


(c)          Submission
to Jurisdiction. The Company hereby submits to the exclusive jurisdiction of the U.S. federal and New York state courts in
the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby. The Company waives any objection which it may now or hereafter have to the laying of venue of
any such suit or proceeding in such courts. The Company agrees that final judgment in any such suit, action or proceeding brought
in such court shall be conclusive and binding upon the Company and may be enforced in any court to the jurisdiction of which Company
is subject by a suit upon such judgment.


 


(d)          Waiver
of Jury Trial. The Company hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right
to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.


 


(e)          Counterparts.
This Agreement may be signed in counterparts (which may include counterparts delivered by any standard form of telecommunication),
each of which shall be an original and all of which together shall constitute one and the same instrument.


 


(f)          Amendments
or Waivers. No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure therefrom,
shall in any event be effective unless the same shall be in writing and signed by the parties hereto.


 


(g)          Headings.
The headings herein are included for convenience of reference only and are not intended to be part of, or to affect the meaning
or interpretation of, this Agreement.


 


(h)          Xtract
Research LLC. The Company hereby agrees that the Initial Purchasers may provide copies of the Preliminary Offering Memorandum
and the Offering Memorandum relating to the offering of the Securities and any other agreements or documents relating thereto,
including, without limitation, any trust indentures, to Xtract Research LLC (“Xtract”) following the completion
of the offering for inclusion in an online research service sponsored by Xtract, access to which is restricted to “qualified
institutional buyers” as defined in Rule 144A under the Securities Act.


 


(i)          Integration.
This Agreement supersedes all prior agreements and understandings (whether written or oral) between the Company and the Initial
Purchasers, or any of them, with respect to the subject matter hereof.


 




    	 	38	 



     


    

 


If the foregoing is in accordance with your
understanding, please indicate your acceptance of this Agreement by signing in the space provided below.


 


	 	Very truly yours,
	 	 
	 	ACCELERATE DIAGNOSTICS, INC.
	 	 
	 	By:	/s/Steve Reichling
	 	 	Name:	Steve Reichling
	 	 	Title:	CFO


 


[Signature Page to the Purchase Agreement]


 




     


     


    

 


Accepted: As of the date first written above


 


J.P. MORGAN SECURITIES LLC


 


Acting for itself and on behalf of

the several Initial Purchasers listed

in Schedule 1 hereto.


 










	 	By:	J.P. Morgan Securities LLC
	 	 	 
	 	By:	/s/Yun Xie
	 	 	Name:	Yun Xie
	 	 	Title:	Executive Director










  


[Signature Page to the Purchase Agreement]


 




     


     


    

  


Schedule 1


 


	Initial Purchaser	 	Principal Amount	 
	J.P. Morgan Securities LLC	 	$	105,000,000	 
	Piper Jaffray & Co.	 	 	21,000,000	 
	William Blair & Company, L.L.C.	 	 	21,000,000	 
	BTIG, LLC	 	 	3,000,000	 
	Total	 	$	150,000,000	 



 




     


     


    

 


Schedule 2


 


Significant Subsidiaries of the Company


 


		1)	Accelerate Diagnostics UK Limited



 


		2)	Accelerate Diagnostics S.L.



 


		3)	Accelerate Diagnostics GmbH



 


		4)	Accelerate Diagnostics SARL



 


		5)	Accelerate Diagnostics S.r.l



 


		6)	Accelerate Diagnostics B.V.



 


		7)	AX Diagnostics C.V.



 


		8)	Accelerate Diagnostics Holdings, LLC



 


		9)	Accelerate Diagnostics RUS Limited Liability Company



 




     


     


    

 


Annex A


 


Time of Sale Information


 


Term sheet containing the terms of the Securities,
substantially in the form of Annex B.


 




     


     


    

 


Annex B


 


ACCELERATE DIAGNOSTICS, INC.


 


Pricing Term Sheet


 




     


     


    

 


Annex C


 


Permitted General Solicitations


 


1. None.


 




     


     


    

 


Exhibit A


 


FORM OF LOCK-UP AGREEMENT


 


March       , 2018


 


J.P. MORGAN SECURITIES LLC


383 Madison Avenue


New York, New York 10179


 


As Representative of


the several Initial Purchasers listed in


Schedule 1 to the Purchase


Agreement referred to below


 


Re:Accelerate Diagnostics, Inc. – Rule 144A
Offering


 


Ladies and Gentlemen:


 


The undersigned understands that you, as
representative (the “Representative”) of the several Initial Purchasers, propose to enter into a Purchase Agreement
(the “Purchase Agreement”) with Accelerate Diagnostics, Inc., a Delaware corporation (the “Company”),
providing for the purchase and initial resale (the “Placement”) by the several Initial Purchasers named in Schedule
1 to the Purchase Agreement (the “Initial Purchasers”), of Convertible Senior Notes due 2023 of the Company
(the “Securities”).


 




     


     


    

 


In consideration of the Initial Purchasers’
agreement to purchase and make the Placement of the Securities, and for other good and valuable consideration receipt of which
is hereby acknowledged, the undersigned hereby agrees that, without the prior written consent of J.P. Morgan Securities LLC on
behalf of the Initial Purchasers, the undersigned will not, during the period (the “Lock-Up Period”) ending
90 days after the date of the final offering memorandum relating to the Placement (the “Offering Memorandum”),
(1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of common
stock, $0.001 per share par value, of the Company (the “Common Stock”) or any securities convertible into or
exercisable or exchangeable for Common Stock (including without limitation, Common Stock or such other securities which may be
deemed to be beneficially owned by the undersigned in accordance with the rules and regulations of the Securities and Exchange
Commission and securities which may be issued upon exercise of a stock option or warrant), or publicly disclose the intention to
make any such offer, sale, pledge or disposition, (2) enter into any swap or other agreement that transfers, in whole or in
part, any of the economic consequences of ownership of the Common Stock or such other securities, whether any such transaction
described in clause (1) or (2) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise
or (3) make any demand for or exercise any right with respect to the registration of any shares of Common Stock or any security
convertible into or exercisable or exchangeable for Common Stock (and, for the avoidance of doubt, the undersigned hereby waives
any and all notice requirements and rights with respect to the registration of any securities pursuant to any agreement, instrument,
understanding or otherwise, including any stockholders or registration rights agreement or similar agreement, to which the undersigned
is a party or under which the undersigned is entitled to any right or benefit), in each case other than (A) transfers of shares
of Common Stock as a bona fide gift or gifts, (B) transfers of shares of Common Stock either during the undersigned’s lifetime
or on death by will or intestacy to the undersigned’s immediate family or to a trust, the beneficiaries of which are the
undersigned and a member or members of the undersigned’s immediate family, (C) transfers of shares of Common Stock to an
affiliate (as that term is defined in Rule 405 under the Securities Act of 1933, as amended) of the undersigned or if the undersigned
is a partnership, limited liability company, trust, corporation or similar entity, as a transfer or distribution to its partners,
members or stockholders, (D) the exercise of options to purchase shares of Common Stock pursuant to employee stock option plans
of the Company disclosed or incorporated by reference in the Offering Memorandum, which options are outstanding on the date hereof;
provided that any shares of Common Stock issued upon exercise of such options shall continue to be subject to the restrictions
on transfer set forth in this letter agreement, (E) transfers of shares of Common Stock to the Company or sales in satisfaction
of any tax withholding obligation of the undersigned in payment of the exercise price for any stock option exercised by the undersigned
or vesting of restricted stock or similar equity-based award issued pursuant to stock plans of the Company disclosed or incorporated
by reference in the Offering Memorandum or (F) pursuant to a sale or an offer to purchase 100% of the outstanding Common Stock,
whether pursuant to a merger, tender offer or otherwise, to a third party or group of third parties resulting in a Change of Control
(as defined below) and approved by the Company’s board of directors, provided that, in the event that such a Change of Control
is not completed, the undersigned’s shares shall remain subject to the restrictions contained in this letter agreement and
title to the undersigned’s shares shall remain with the undersigned; provided that in the case of any transfer or distribution
pursuant to clause (A), (B) or (C), (i) each donee or distributee shall execute and deliver to the Representative a lock-up letter
in the form of this paragraph and (ii) such transfer shall not involve a disposition for value; and provided, further, that in
the case of any transfer or distribution pursuant to clause (A), (B), (C), (D) or (E), no filing by any party (donor, donee, transferor
or transferee) under the Securities Exchange Act of 1934, as amended, or other public announcement shall be required or shall be
made voluntarily in connection with such transfer or distribution (other than a filing on a Form 5 made after the expiration of
the Lock-Up Period). For the avoidance of doubt, the restrictions in this letter agreement shall not apply to any purchase by the
undersigned of Securities pursuant to the Offering Memorandum.


 


“Change of Control” means the
transfer (whether by tender offer, merger, consolidation or other similar transaction), in one transaction or a series of related
transactions approved by the Board of Directors of the Company, to a person or group of affiliated persons (other than an Initial
Purchaser pursuant to the Placement), of the Company’s voting securities if, after such transfer, such person or group of
affiliated persons would hold more than 50% of the outstanding voting securities of the Company (or the surviving entity).


 




     


     


    

 


In furtherance of the foregoing, the Company,
and any duly appointed transfer agent for the registration or transfer of the securities described herein, are hereby authorized
to decline to make any transfer of securities if such transfer would constitute a violation or breach of this letter agreement.


 


The undersigned hereby represents and warrants
that the undersigned has full power and authority to enter into this letter agreement. All authority herein conferred or agreed
to be conferred and any obligations of the undersigned shall be binding upon the successors, assigns, heirs or personal representatives
of the undersigned.


 


The undersigned understands that, if the
Purchase Agreement does not become effective by April 15, 2018, or if the Purchase Agreement (other than the provisions thereof
which survive termination) shall terminate or be terminated prior to payment for and delivery of the Securities to be sold thereunder,
the undersigned shall be released from all obligations under this letter agreement. The undersigned understands that the Initial
Purchasers are entering into the Purchase Agreement and proceeding with the Placement in reliance upon this letter agreement.


 




     


     


    

  


This Letter Agreement and any claim, controversy
or dispute arising under or related to this Letter Agreement shall be governed by and construed in accordance with the laws of
the State of New York, without regard to the conflict of laws principles thereof.


 


	 	Very truly yours,
	 	 
	 	 
	 	Name of Security Holder (Print exact name)
	 	 	 
	 	By:	 
	 	 	Signature
	 	 	 
	 	If not signing in an individual capacity:
	 	 
	 	 
	 	Name of Authorized Signatory (Print)
	 	 
	 	 
	 	Title of Authorized Signatory (Print)
	 	 
	 	(indicate capacity of person signing if signing as custodian, trustee, or on behalf of an entity)