Document:

Exhibit 4.6

 

 

EVERI HOLDINGS INC.

 

Debt Securities

 

Indenture

 

Dated as of [  ]

 

[                                 ].,

 

as Trustee

 

 

 

CROSS-REFERENCE TABLE

 

This Cross-Reference Table is not a part of the Indenture

 

	
TIA Section
    	
 
    	
Indenture Section
    
	
310(a)(1)
    	
 
    	
7.10
    
	
(a)(2)
    	
 
    	
7.10
    
	
(a)(3)
    	
 
    	
N.A.
    
	
(a)(4)
    	
 
    	
N.A.
    
	
(b)
    	
 
    	
7.08; 7.10; 12.02
    
	
 
    	
 
    	
 
    
	
311(a)
    	
 
    	
7.11
    
	
(b)
    	
 
    	
7.11
    
	
(c)
    	
 
    	
N.A.
    
	
 
    	
 
    	
 
    
	
312(a)
    	
 
    	
2.05
    
	
(b)
    	
 
    	
12.03
    
	
(c)
    	
 
    	
12.03
    
	
 
    	
 
    	
 
    
	
313(a)
    	
 
    	
7.06
    
	
(b)(1)
    	
 
    	
N.A.
    
	
(b)(2)
    	
 
    	
7.06
    
	
(c)
    	
 
    	
12.02
    
	
(d)
    	
 
    	
7.06
    
	
 
    	
 
    	
 
    
	
314(a)
    	
 
    	
4.03; 12.02
    
	
(b)
    	
 
    	
N.A.
    
	
(c)(1)
    	
 
    	
12.04
    
	
(c)(2)
    	
 
    	
12.04
    
	
(c)(3)
    	
 
    	
N.A.
    
	
(d)
    	
 
    	
N.A.
    
	
(e)
    	
 
    	
12.05
    
	
 
    	
 
    	
 
    
	
315(a)
    	
 
    	
7.01(b)
    
	
(b)
    	
 
    	
7.05; 12.02
    
	
(c)
    	
 
    	
7.01(a)
    
	
(d)
    	
 
    	
7.01(c)
    
	
(e)
    	
 
    	
6.11
    
	
 
    	
 
    	
 
    
	
316(a)(last sentence)
    	
 
    	
12.06
    
	
(a)(1)(A)
    	
 
    	
6.05
    
	
(a)(1)(B)
    	
 
    	
6.04
    
	
(a)(2)
    	
 
    	
N.A.
    
	
(b)
    	
 
    	
6.07
    
	
 
    	
 
    	
 
    
	
317(a)(1)
    	
 
    	
6.08
    
	
(a)(2)
    	
 
    	
6.09
    
	
(b)d
    	
 
    	
2.04
    
	
 
    	
 
    	
 
    
	
318(a)
    	
 
    	
12.01
    
	
 
    	
 
    	
 
    
	
N.A. means Not   Applicable.
    

 

i

 

TABLE OF CONTENTS

 

This Table of Contents is not a part of the Indenture

 

	
 
    	
ARTICLE ONE
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DEFINITIONS AND   INCORPORATION BY REFERENCE
    	
 
    
	
 
    	
 
    	
 
    
	
Section 1.01
    	
Definitions
    	
1
    
	
Section 1.02
    	
Other Definitions
    	
5
    
	
Section 1.03
    	
Incorporation by   Reference of Trust Indenture Act
    	
5
    
	
Section 1.04
    	
Rules of   Construction
    	
5
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE TWO
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE SECURITIES
    	
 
    
	
 
    	
 
    	
 
    
	
Section 2.01
    	
Form and Dating
    	
6
    
	
Section 2.02
    	
Execution and   Authentication
    	
8
    
	
Section 2.03
    	
Registrar and Paying   Agent
    	
8
    
	
Section 2.04
    	
Paying Agent to Hold Money   in Trust.
    	
9
    
	
Section 2.05
    	
Securityholder Lists
    	
9
    
	
Section 2.06
    	
Transfer and Exchange
    	
9
    
	
Section 2.07
    	
Replacement Securities
    	
9
    
	
Section 2.08
    	
Outstanding Securities
    	
9
    
	
Section 2.09
    	
Temporary Securities
    	
10
    
	
Section 2.10
    	
Cancellation
    	
10
    
	
Section 2.11
    	
Defaulted Interest
    	
10
    
	
Section 2.12
    	
Treasury Securities
    	
10
    
	
Section 2.13
    	
CUSIP/ISIN Numbers
    	
11
    
	
Section 2.14
    	
Deposit of Moneys
    	
11
    
	
Section 2.15
    	
Book-Entry Provisions   for Global Security
    	
11
    
	
Section 2.16
    	
No Duty to Monitor
    	
12
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE THREE
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
REDEMPTION
    	
 
    
	
 
    	
 
    	
 
    
	
Section 3.01
    	
Notices to Trustee
    	
13
    
	
Section 3.02
    	
Selection of Securities   to be Redeemed
    	
13
    
	
Section 3.03
    	
Notice of Redemption
    	
13
    
	
Section 3.04
    	
Effect of Notice of   Redemption
    	
14
    
	
Section 3.05
    	
Deposit of Redemption   Price
    	
14
    
	
Section 3.06
    	
Securities Redeemed in   Part
    	
14
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE FOUR
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
COVENANTS
    	
 
    
	
 
    	
 
    	
 
    
	
Section 4.01
    	
Payment of Securities
    	
15
    
	
Section 4.02
    	
Maintenance of Office   or Agency
    	
15
    
	
Section 4.03
    	
Compliance Certificate
    	
15
    
	
Section 4.04
    	
Waiver of Stay,   Extension or Usury Laws
    	
15
    

 

ii

 

	
 
    	
ARTICLE FIVE
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SUCCESSOR   CORPORATION
    	
 
    
	
 
    	
 
    	
 
    
	
Section 5.01
    	
Company   May Merge, etc.
    	
15
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE SIX
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DEFAULTS AND   REMEDIES
    	
 
    
	
 
    	
 
    	
 
    
	
Section 6.01
    	
Events of Default
    	
16
    
	
Section 6.02
    	
Acceleration
    	
17
    
	
Section 6.03
    	
Other Remedies
    	
18
    
	
Section 6.04
    	
Waiver of Existing   Defaults
    	
18
    
	
Section 6.05
    	
Control by Majority
    	
18
    
	
Section 6.06
    	
Limitation on Suits
    	
18
    
	
Section 6.07
    	
Rights of Holders to   Receive Payment
    	
19
    
	
Section 6.08
    	
Collection Suit by   Trustee
    	
19
    
	
Section 6.09
    	
Trustee May File   Proofs of Claim
    	
19
    
	
Section 6.10
    	
Priorities
    	
19
    
	
Section 6.11
    	
Undertaking for Costs
    	
19
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE SEVEN
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TRUSTEE
    	
 
    
	
 
    	
 
    	
 
    
	
Section 7.01
    	
Duties of Trustee
    	
20
    
	
Section 7.02
    	
Rights of Trustee
    	
20
    
	
Section 7.03
    	
Individual Rights of   Trustee
    	
22
    
	
Section 7.04
    	
Trustee’s Disclaimer
    	
22
    
	
Section 7.05
    	
Notice of Defaults
    	
22
    
	
Section 7.06
    	
Reports by Trustee to   Holders
    	
22
    
	
Section 7.07
    	
Compensation and   Indemnity
    	
22
    
	
Section 7.08
    	
Replacement of Trustee
    	
23
    
	
Section 7.09
    	
Successor Trustee by   Merger, etc.
    	
23
    
	
Section 7.10
    	
Eligibility;   Disqualification
    	
24
    
	
Section 7.11
    	
Preferential Collection   of Claims Against Company
    	
24
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE EIGHT
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DISCHARGE OF   INDENTURE
    	
 
    
	
 
    	
 
    	
 
    
	
Section 8.01
    	
Defeasance upon Deposit   of Moneys or Government Obligations
    	
24
    
	
Section 8.02
    	
Survival of the   Company’s Obligations
    	
26
    
	
Section 8.03
    	
Application of Trust   Money
    	
26
    
	
Section 8.04
    	
Repayment to the   Company
    	
26
    
	
Section 8.05
    	
Reinstatement
    	
26
    

 

iii

 

	
 
    	
ARTICLE NINE
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
RESERVED
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE TEN
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AMENDMENTS,   SUPPLEMENTS AND WAIVERS
    	
 
    
	
 
    	
 
    	
 
    
	
Section 10.01
    	
Without Consent of   Holders
    	
27
    
	
Section 10.02
    	
With Consent of Holders
    	
27
    
	
Section 10.03
    	
Compliance with Trust Indenture   Act
    	
28
    
	
Section 10.04
    	
Revocation and Effect   of Consents
    	
28
    
	
Section 10.05
    	
Notation on or Exchange   of Securities
    	
29
    
	
Section 10.06
    	
Trustee to Sign   Amendments, etc.
    	
29
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE ELEVEN
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SECURITIES IN   FOREIGN CURRENCIES
    	
 
    
	
 
    	
 
    	
 
    
	
Section 11.01
    	
Applicability of   Article
    	
29
    
	
 
    	
 
    	
 
    
	
 
    	
ARTICLE TWELVE
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MISCELLANEOUS
    	
 
    
	
 
    	
 
    	
 
    
	
Section 12.01
    	
Trust Indenture Act   Controls
    	
30
    
	
Section 12.02
    	
Notices
    	
30
    
	
Section 12.03
    	
Communications by   Holders with Other Holders
    	
31
    
	
Section 12.04
    	
Certificate and Opinion   as to Conditions Precedent
    	
31
    
	
Section 12.05
    	
Statements Required in   Certificate or Opinion
    	
31
    
	
Section 12.06
    	
Rules by Trustee   and Agents
    	
31
    
	
Section 12.07
    	
Legal Holidays
    	
32
    
	
Section 12.08
    	
Governing Law
    	
32
    
	
Section 12.09
    	
No Adverse   Interpretation of Other Agreements
    	
32
    
	
Section 12.10
    	
No Recourse Against   Others
    	
32
    
	
Section 12.11
    	
Successors and Assigns
    	
32
    
	
Section 12.12
    	
Duplicate Originals
    	
32
    
	
Section 12.13
    	
Severability
    	
32
    
	
Section 12.14
    	
Waiver of Jury Trial
    	
32
    
	
Section 12.15
    	
Submission to   Jurisdiction
    	
32
    
	
 
    	
 
    	
 
    
	
SIGNATURES
    	
 
    

 

EXHIBIT A – Form of Security

 

iv

 

INDENTURE dated as of [  ], (the “Base Indenture”), by and among EVERI HOLDINGS INC., a Delaware corporation (the “Company”) and [             ]., as trustee (the “Trustee”).

 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Company’s debt securities issued under this Base Indenture:

 

ARTICLE ONE
 DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01                            Definitions.

 

“Affiliate” means, when used with reference to a specified person, any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Person specified.

 

“Agent” means any Registrar, Paying Agent or co-Registrar or agent for service of notices and demands.

 

“Authorizing Resolution” means a resolution adopted by the Board of Directors or by an Officer or committee of Officers pursuant to Board delegation authorizing a Series of Securities which shall be delivered to the Trustee.

 

“Bankruptcy Law” means Title 11 of the United States Code, as amended, or any similar federal or state law for the relief of debtors.

 

“Board of Directors” means the Board of Directors of the Company or any duly authorized committee thereof.

 

“Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated) of or in such Person’s capital stock or other equity interests.

 

“Capitalized Lease Obligations” of any Person means, at the time any determination thereof is to be made, the obligations of such Person to pay rent or other amounts under a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP, and the amount of such obligations will be the capitalized amount thereof determined in accordance with GAAP.

 

“Company” means the party named as such in this Indenture until a successor replaces it pursuant to the Indenture and thereafter means the successor.

 

“control” means, when used with respect to any Person, the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Currency Agreement” of any Person means any foreign exchange contract, currency swap agreement or other similar agreement or arrangement designed to protect such Person or any of its Subsidiaries against fluctuations in currency values.

 

“Default” means any event, act or condition that is, or after notice or the passage of time or both would be, an Event of Default.

 

“Definitive Security” means a certificated Security registered in the name of the Securityholder thereof.

 

“Depositary” means, with respect to Securities of any Series which the Company shall determine will be issued in whole or in part as a Global Security, DTC, another clearing agency, or any successor registered as a clearing agency under the Exchange Act, and any other applicable U.S. or foreign statute or regulation, which, in each case, shall be designated by the Company pursuant to Section 2.01.

 

1

 

“Dollars” and “$” mean United States Dollars.

 

“DTC” means The Depository Trust Company.

 

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

 

“Foreign Currency” means any currency, currency unit or composite currency, including, without limitation, the euro, issued by the government of one or more countries other than the United States of America or by any recognized confederation or association of such governments and reasonably acceptable to the Trustee.

 

“GAAP” means generally accepted accounting principles set forth in the accounting standards codification of the Financial Accounting Standards Board or in such other statements by such or any other entity as may be approved by a significant segment of the accounting profession of the United States, as in effect on the date of this Base Indenture.

 

“Global Security” means, with respect to any Series of Securities, a Security executed by the Company and delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction, all in accordance with the Indenture, which shall be registered in the name of the Depositary or its nominee.

 

“Government Obligations” means securities which are (i) direct obligations of the United States or the other government or governments in the confederation which issued the Foreign Currency in which the principal of or any interest on the Security of the applicable Series shall be payable, in each case for the payment of which its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States or such other government or governments, in each case the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States or such other government or governments, which, in either case are not callable or redeemable at the option of the issuer or issuers thereof, and shall also include a depositary receipt issued by a bank or trust company as custodian with respect to any such Government Obligations or a specific payment of interest on or principal of any such Government Obligation held by such custodian for the account of the holder of a depositary receipt; provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Government Obligation or the specific payment of interest on or principal of the Government Obligation evidenced by such depositary receipt.

 

“Holder” or “Securityholder” means the Person in whose name a Security is registered on the Registrar’s books.

 

“Indebtedness” means, with respect to any specified Person, any indebtedness of such Person, whether or not contingent:

 

(1)                                 in respect of borrowed money;

 

(2)                                 evidenced by bonds, notes, debentures or similar instruments;

 

(3)                                 in respect of letters of credit (or reimbursement agreements in respect thereof) or banker’s acceptances;

 

(4)                                 representing Capitalized Lease Obligations;

 

(5)                                 in respect of the balance deferred and unpaid of the purchase price of any property, except (i) any such balance that constitutes an accrued expense or trade payable, or (ii) any obligation to pay a contingent purchase price as long as such obligation remains contingent; or

 

(6)                                 in respect of any Interest Protection Agreement or Currency Agreement,

 

2

 

if and to the extent any of the preceding items (other than letters of credit and any Interest Protection Agreement or Currency Agreement) would appear as a liability upon a balance sheet of the specified Person prepared in accordance with GAAP.  In addition, the term “Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the specified Person) and, to the extent not otherwise included, the guarantee by such Person of any indebtedness of any other Person.

 

Except as otherwise expressly provided in this Indenture, the amount of any Indebtedness outstanding as of any date shall be:

 

(a)                                 with respect to contingent obligations, the maximum liability upon the occurrence of the contingency giving rise to the obligation;

 

(b)                                 with respect to any Interest Protection Agreement or Currency Agreement, the net amount payable thereunder if such agreement were terminated at that time due to default by such Person;

 

(c)                                  the accreted value thereof, in the case of any Indebtedness issued at a discount to par; or

 

(d)                                 except as provided above, the principal amount or liquidation preference thereof, in the case of any other Indebtedness.

 

“Indenture” means this Base Indenture as amended or supplemented from time to time, including pursuant to any Authorizing Resolution or supplemental indenture pertaining to any Series, and including, for all purposes of this instrument and any such Authorizing Resolution or supplemental indenture, the provisions of the TIA that are deemed to be a part of and govern this Base Indenture and any such Authorizing Resolution or supplemental indenture, respectively.

 

“Interest Protection Agreement” of any Person means any interest rate swap agreement, interest rate collar agreement, option or futures contract or other similar agreement or arrangement designed to protect such Person or any of its Subsidiaries against fluctuations in interest rates with respect to Indebtedness.

 

“Issue Date” means, with respect to any Series of Securities, the date on which the Securities of such Series are originally issued under this Indenture.

 

“Lien” means, with respect to any Property, any mortgage, deed of trust, lien, pledge, charge, hypothecation, security interest or encumbrance of any kind in respect of such Property.  For purposes of this definition, a Person shall be deemed to own, subject to a Lien, any Property which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such Property.

 

“Non-Recourse Indebtedness” with respect to any Person means Indebtedness of such Person for which (i) the sole legal recourse for collection of principal and interest on such Indebtedness is against the specific Property identified in the instruments evidencing or securing such Indebtedness (and any accessions thereto and proceeds thereof) and such Property was acquired with the proceeds of such Indebtedness or such Indebtedness was incurred within 180 days after the acquisition of such Property and (ii) no other assets of such Person may be realized upon in collection of principal or interest on such Indebtedness.  Indebtedness which is otherwise Non-Recourse Indebtedness will not lose its character as Non-Recourse Indebtedness because there is recourse to the borrower, any guarantor or any other Person for (i) environmental or tax warranties and indemnities and such other representations, warranties, covenants and indemnities as are customarily required in such transactions, or (ii) indemnities for and liabilities arising from fraud, misrepresentation, misapplication or non-payment of rents, profits, insurance and condemnation proceeds and other sums actually received by the borrower from secured assets to be paid to the lender, waste and mechanics’ liens.

 

“NYUCC” means the New York Uniform Commercial Code, as in effect from time to time.

 

3

 

“Officer” means the Chairman of the Board, the President, any Vice President, the Treasurer, the Controller or the Secretary of the Company.

 

“Officers’ Certificate” means a certificate signed by two Officers or by an Officer and an Assistant Treasurer or an Assistant Secretary of the Company.

 

“Opinion of Counsel” means a written opinion, in form and substance reasonably satisfactory to the Trustee, from legal counsel.  The counsel may be an employee of or counsel to the Company.  Each such opinion shall include the statements provided for in Section 12.05 if and to the extent required by the provisions of such Section.

 

“Person” means any individual, corporation, partnership, limited liability company, joint venture, incorporated or unincorporated association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

 

“principal” of a debt security means the principal of the security plus, when appropriate, the premium, if any, on the security.

 

“Property” of any Person means all types of real, personal, tangible, intangible or mixed property owned by such Person, whether or not included in the most recent consolidated balance sheet of such Person and its Subsidiaries under GAAP.

 

“Restricted Subsidiary” means any Subsidiary of the Company which is not an Unrestricted Subsidiary.

 

“SEC” means the Securities and Exchange Commission or any successor agency performing the duties now assigned to it under the TIA.

 

“Securities” means any Securities that are issued under this Base Indenture.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Series” means a series of Securities established under this Base Indenture.

 

“Significant Subsidiary” means any Subsidiary of the Company which would constitute a “significant subsidiary” as defined in Rule 1.02 of Regulation S-X under the Securities Act and the Exchange Act.

 

“Subsidiary” of any Person means any corporation or other entity of which a majority of the Capital Stock having ordinary voting power to elect a majority of the board of directors of such entity or other persons performing similar functions is at the time directly or indirectly owned or controlled by such Person.

 

“TIA” means the Trust Indenture Act of 1939, as in effect from time to time, except as otherwise provided herein.

 

“Trustee” means the party named as such in this Base Indenture until a successor replaces it pursuant to this Base Indenture and thereafter means the successor serving hereunder; provided, however, that if at any time there is more than one such Person, “Trustee” as used with respect to the Securities of any Series shall mean only the Trustee with respect to Securities of that Series.

 

“Trust Officer” means, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, senior associate, associate, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture.

 

4

 

“United States” means the United States of America.

 

“Unrestricted Subsidiary” means, with respect to any Series, any Subsidiary of the Company (1) so designated by a resolution adopted by the Board of Directors of the Company as provided below and (2) any Subsidiary of an Unrestricted Subsidiary, subject, in each case, to such conditions as may be stated in the supplemental indenture or specified in the Authorizing Resolution with respect to such Series.

 

Section 1.02                            Other Definitions.

 

	
Term
    	
 
    	
Defined in Section
    
	
 
    	
 
    	
 
    
	
Agent Members
    	
 
    	
2.15
    
	
Base Indenture
    	
 
    	
Preamble
    
	
Business Day
    	
 
    	
12.07
    
	
Covenant Defeasance
    	
 
    	
8.01
    
	
Custodian
    	
 
    	
6.01
    
	
Event of Default
    	
 
    	
6.01
    
	
Legal Defeasance
    	
 
    	
8.01
    
	
Legal Holiday
    	
 
    	
12.07
    
	
Paying Agent
    	
 
    	
2.03
    
	
Payment Default
    	
 
    	
6.01
    
	
Registrar
    	
 
    	
2.03
    
	
Security Register
    	
 
    	
2.03
    
	
Successor
    	
 
    	
5.01
    

 

Section 1.03                            Incorporation by Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities of a particular Series.

 

“indenture security holder” means a Securityholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

“obligor” on the indenture securities means the Company or any other obligor on the Securities of a Series.

 

All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule have the meanings so assigned to them.

 

Section 1.04                            Rules of Construction.

 

Unless the context otherwise requires:

 

(1)                                 a term has the meaning assigned to it herein;

 

(2)                                 an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP and all accounting determinations shall be made in accordance with GAAP;

 

(3)                                 “or” is not exclusive and “including” means “including without limitation”;

 

5

 

(4)                                 words in the singular include the plural, and in the plural include the singular;

 

(5)                                 “herein,” “hereof” and “hereunder,” and other words of similar import, refer to this Indenture as a whole (including any Authorizing Resolution or supplemental indenture relating to the relevant Series) and not to any particular Article, Section or other subdivision;

 

(6)                                 all exhibits are incorporated by reference herein and expressly made a part of this Indenture; and

 

(7)                                 any transaction or event shall be considered “permitted by” or made “in accordance with” or “in compliance with” this Indenture or any particular provision thereof if such transaction or event is not expressly prohibited by this Indenture or such provision, as the case may be.

 

ARTICLE TWO
 THE SECURITIES

 

Section 2.01                            Form and Dating.

 

The aggregate principal amount of Securities that may be issued under this Base Indenture is unlimited.  The Securities may be issued from time to time in one or more Series.  Each Series shall be created by an Authorizing Resolution or a supplemental indenture that establishes the terms of the Series, which may include the following:

 

(1)                                 the title of the Series;

 

(2)                                 the aggregate principal amount (or any limit on the aggregate principal amount) of the Series and, if any Securities of a Series are to be issued at a discount from their face amount, the method of computing the accretion of such discount;

 

(3)                                 the interest rate or method of calculation of the interest rate;

 

(4)                                 the date from which interest will accrue;

 

(5)                                 the record dates for interest payable on Securities of the Series;

 

(6)                                 the dates when, places where and manner in which principal and interest are payable;

 

(7)                                 the Registrar and Paying Agent;

 

(8)                                 the terms of any mandatory (including any sinking fund requirements) or optional redemption by the Company;

 

(9)                                 the terms of any redemption at the option of Holders;

 

(10)                          the permissible denominations in which Securities of such Series are issuable, if different from $2,000 and multiples of $1,000 in excess thereof;

 

(11)                          whether Securities of such Series will be issued in registered or bearer form and the terms of any such forms of Securities;

 

(12)                          whether the Securities of the Series shall be issued in whole or in part in the form of a Global Security or Securities, the terms and conditions, if different from those contained in this Base Indenture, upon which such Global Security or Securities may be exchanged in whole or in part for Definitive Securities; the Depositary for such Global Security or Securities; the form of any legend or legends, if any, to be borne by any such Global Security or Securities in addition to or in lieu of the legends referred to in Section 2.15;

 

6

 

(13)                          the currency or currencies (including any composite currency) in which principal or interest or both may be paid;

 

(14)                          if payments of principal or interest may be made in a currency other than that in which Securities of such Series are denominated, the manner for determining such payments, including the time and manner of determining the exchange rate between the currency in which such Securities are denominated and the currency in which such Securities or any of them may be paid, and any deletions from or modifications of or additions to the terms of this Indenture to provide for or to facilitate the issuance of Securities denominated or payable, at the election of the Company or a Holder thereof or otherwise, in a Foreign Currency;

 

(15)                          provisions for electronic issuance of Securities or issuance of Securities of such Series in uncertificated form;

 

(16)                          any Events of Default, covenants and/or defined terms in addition to or in lieu of those set forth in this Base Indenture;

 

(17)                          whether and upon what terms Securities of such Series may be defeased or discharged if different from the provisions set forth in this Base Indenture;

 

(18)                          the form of the Securities of such Series, which, unless the Authorizing Resolution or supplemental indenture otherwise provides, shall be in the form of Exhibit A;

 

(19)                          any terms that may be required by or advisable under applicable law;

 

(20)                          the percentage of the principal amount of the Securities of such Series which is payable if the maturity of the Securities of such Series is accelerated in the case of Securities issued at a discount from their face amount;

 

(21)                          whether Securities of such Series will or will not have the benefit of guarantees and the Company’s Subsidiaries that will be the initial guarantors of such Series and, if applicable, the terms and conditions upon which such guarantees may be subordinated to other indebtedness of the respective guarantors;

 

(22)                          whether the Securities of such Series are senior or subordinated debt securities, and if subordinated debt securities, the terms of such subordination;

 

(23)                          whether the Securities of the Series will be convertible into or exchangeable for other Securities, common shares or other securities of any kind of the Company or another obligor, and, if so, the terms and conditions upon which such Securities will be so convertible or exchangeable, including the initial conversion or exchange price or rate or the method of calculation, how and when the conversion price or exchange ratio may be adjusted, whether conversion or exchange is mandatory, at the option of the holder or at the Company’s option, the conversion or exchange period, and any other provision in relation thereto; and

 

(24)                          any other terms in addition to or different from those contained in this Base Indenture applicable to such Series.

 

All Securities of one Series need not be issued at the same time and, unless otherwise provided, a Series may be reopened for issuances of additional Securities of such Series pursuant to an Authorizing Resolution, an Officers’ Certificate or in any indenture supplemental hereto.

 

The creation and issuance of a Series and the authentication and delivery thereof are not subject to any conditions precedent.

 

7

 

Section 2.02                            Execution and Authentication.

 

One Officer shall sign the Securities for the Company by manual or facsimile signature.

 

If an Officer whose signature is on a Security no longer holds that office at the time the Trustee authenticates the Security, the Security shall nevertheless be valid.

 

A Security shall not be valid until the Trustee manually signs the certificate of authentication on the Security.  The signature shall be conclusive evidence that the Security has been authenticated under this Base Indenture.

 

At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication.  Each Security shall be dated the date of its authentication.  The Trustee shall authenticate Securities for original issue upon receipt of, and shall be fully protected in relying upon:

 

(a)                                 An order to the Trustee signed by an officer of the Company directing the Trustee to authenticate the Securities;

 

(b)                                 a copy of the resolution or resolutions of the Board of Directors in or pursuant to which the terms and form of the Securities were established, certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect as of the date of such certificate, and if the terms and form of such Securities are established by an Officers’ Certificate pursuant to general authorization of the Board of Directors, such Officers’ Certificate;

 

(c)                                  an Officers’ Certificate of the Company delivered in accordance with Section 12.04; and

 

(d)                                 an Opinion of Counsel delivered in accordance with Section 12.04, and that states that such Securities, when authenticated and delivered by Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company, enforceable in accordance with their terms, subject to bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting the enforcement of creditors’ rights and to general equity principles.

 

The Trustee shall have the right to decline to authenticate and deliver any Securities under this Section if the Trustee, being advised by counsel, determines that such action may not lawfully be taken or if the Trustee in good faith shall determine that such action would expose the Trustee to personal liability to existing Holders.

 

Section 2.03                            Registrar and Paying Agent.

 

The Company shall maintain an office or agency where Securities may be presented for registration of transfer or where Securities of a Series that are convertible or exchangeable may be surrendered for conversion or exchange (“Registrar”), an office or agency where Securities may be presented for payment (“Paying Agent”) and an office or agency where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served.  The Registrar shall keep a register of the Securities and of their transfer and exchange (the “Security Register”).  The Company may have one or more co-Registrars and one or more additional paying agents.  The term “Paying Agent” includes any additional paying agent.

 

The Company shall enter into an appropriate agency agreement with any Agent not a party to this Base Indenture.  The agreement shall implement the provisions of this Indenture that relate to such Agent.  The Company shall promptly notify the Trustee in writing of the name and address of any such Agent and the Trustee shall have the right to inspect the Securities Register at all reasonable times to obtain copies thereof, and the Trustee shall have the right to rely upon such register as to the names and addresses of the Holders and the principal amounts and certificate numbers thereof.  If the Company fails to maintain a Registrar or Paying Agent or fails to give the foregoing notice, the Trustee shall act as such.

 

8

 

The Company initially appoints the Trustee as Registrar and Paying Agent.

 

Section 2.04                            Paying Agent to Hold Money in Trust.

 

Each Paying Agent shall hold in trust for the benefit of Securityholders and the Trustee all money held by the Paying Agent for the payment of principal of or interest on the Securities, and shall notify the Trustee of any default by the Company in making any such payment.  If the Company or a Subsidiary acts as Paying Agent, it shall segregate the money and hold it as a separate trust fund.  The Company at any time may require a Paying Agent to pay all money held by it to the Trustee.  Upon doing so the Paying Agent shall have no further liability for the money.

 

Section 2.05                            Securityholder Lists.

 

The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders.  If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least five (5) Business Days before each semiannual interest payment date and at such other times as the Trustee may request in writing a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Securityholders.

 

Section 2.06                            Transfer and Exchange.

 

Where a Security is presented to the Registrar or a co-Registrar with a request to register a transfer, the Registrar shall register the transfer as requested if the other provisions of this Section 2.06 are satisfied.  Where Securities are presented to the Registrar or a co-Registrar with a request to exchange them for an equal principal amount of Securities of other denominations, the Registrar shall make the exchange as requested if the same requirements are met.  To permit transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request.  The Registrar need not transfer or exchange any Security selected for redemption or repurchase, except the unredeemed or repurchased part thereof if the Security is redeemed or repurchased in part, or transfer or exchange any Securities for a period of 15 days before a selection of Securities to be redeemed or repurchased.  Any exchange or transfer shall be without charge, except that the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto except in the case of exchanges pursuant to 2.09, 3.06, or 10.05 not involving any transfer.

 

Any Holder of a Global Security shall, by acceptance of such Global Security, agree that transfers of beneficial interests in such Global Security may be effected only through a book entry system maintained by the Holder of such Global Security (or its agent), and that ownership of a beneficial interest in the Security shall be required to be reflected in a book entry.

 

Section 2.07                            Replacement Securities.

 

If the Holder of a Security claims that the Security has been lost, destroyed, mutilated or wrongfully taken, the Company shall issue and execute a replacement security and, upon written request of any Officer of the Company, the Trustee shall authenticate such replacement Security.  If any such lost, destroyed, mutilated or wrongfully taken Security shall have matured or shall be about to mature, the Company may, instead of issuing a substitute Security therefor, pay such Security without requiring (except in the case of a mutilated Security) the surrender thereof.  An indemnity bond must be sufficient in the judgment of the Company and the Trustee to protect the Company, the Trustee and any Agent from any loss which any of them may suffer if a Security is replaced, including the acquisition of such Security by a bona fide purchaser.  The Company and the Trustee may charge for its expenses in replacing a Security.

 

Section 2.08                            Outstanding Securities.

 

Securities outstanding at any time are all Securities authenticated by the Trustee except for those cancelled by it and those described in this Section.  A Security does not cease to be outstanding because the Company or one of its Affiliates holds the Security.

 

9

 

If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee receives proof satisfactory to the Company that the replaced Security is held by a “protected purchaser” (as such term is defined in the NYUCC).

 

If the Paying Agent holds on a redemption date, purchase date or maturity date money sufficient to pay Securities payable on that date, then on and after that date such Securities cease to be outstanding and interest on them ceases to accrue.

 

Subject to the foregoing provisions of this Section, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security.

 

Section 2.09                            Temporary Securities.

 

Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities.  Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall prepare and, upon surrender for cancellation of the temporary Security, the Company shall execute and the Trustee shall authenticate definitive Securities in exchange for temporary Securities.  Until so exchanged, the temporary Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities authenticated and delivered hereunder.

 

Section 2.10                            Cancellation.

 

The Company at any time may deliver Securities to the Trustee for cancellation.  The Registrar and Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange, redemption, purchase or payment.  The Trustee and no one else shall cancel and dispose of such cancelled or tendered securities, or retain in accordance with its standard retention policy, all Securities surrendered for registration of transfer, exchange, redemption, purchase, payment or cancellation.  Unless the Authorizing Resolution or supplemental indenture so provides, the Company may not issue new Securities to replace Securities that it has previously paid or delivered to the Trustee for cancellation.

 

Section 2.11                            Defaulted Interest.

 

If the Company defaults in a payment of interest on the Securities of any Series, it shall pay the defaulted interest plus any interest payable on the defaulted interest to the persons who are Securityholders of such Series on a subsequent special record date.  The Company shall fix such special record date and a payment date which shall be reasonably satisfactory to the Trustee.  At least 15 days before such special record date, the Company shall send to each Securityholder of the relevant Series a notice that states the record date, the payment date and the amount of defaulted interest to be paid.  On or before the date such notice is sent, the Company shall deposit with the Paying Agent money sufficient to pay the amount of defaulted interest to be so paid.  The Company may pay defaulted interest in any other lawful manner if, after written notice given by the Company to the Trustee of the proposed payment, such manner of payment shall be deemed practicable by the Trustee.

 

Section 2.12                            Treasury Securities.

 

In determining whether the Holders of the required principal amount of Securities of a Series have concurred in any direction, waiver, consent or notice, Securities owned by the Company or any of its Affiliates shall be considered as though they are not outstanding, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which a Trust Officer of the Trustee actually knows are so owned shall be so considered.

 

10

 

Section 2.13                            CUSIP/ISIN Numbers.

 

The Company in issuing the Securities of any Series may use a “CUSIP” and/or “ISIN” or other similar number, and if so, the Trustee shall use the CUSIP and/or ISIN or other similar number in notices of redemption or exchange as a convenience to Holders of such Securities; provided that no representation is hereby deemed to be made by the Trustee as to the correctness or accuracy of any such CUSIP and/or ISIN or other similar number printed in the notice or on such Securities, and that reliance may be placed only on the other identification numbers printed on such Securities.  The Company shall promptly notify the Trustee in writing of any change in any CUSIP and/or ISIN or other similar number.

 

Section 2.14                            Deposit of Moneys.

 

Prior to 11:00 a.m. New York City time on each interest payment date and maturity date with respect to each Series of Securities, the Company shall have deposited with the Paying Agent in immediately available funds money in the applicable currency sufficient to make cash payments due on such interest payment date or maturity date, as the case may be, in a timely manner which permits the Paying Agent to remit payment to the Holders of such Series on such interest payment date or maturity date, as the case may be.

 

Section 2.15                            Book-Entry Provisions for Global Security.

 

(a)                                 Any Global Security of a Series initially shall (i) be registered in the name of the Depositary or the nominee of such Depositary, (ii) be delivered to the Trustee as custodian for such Depositary and (iii) bear any required legends.

 

Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under this Indenture with respect to any Global Security held on their behalf by the Depositary, or the Trustee as its custodian, or under the Global Security, and the Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of the Global Security for all purposes whatsoever.  Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a Holder of any Security.

 

(b)                                 Transfers of any Global Security shall be limited to transfers in whole, but not in part, to the Depositary, its successors or their respective nominees.  Interests of beneficial owners in the Global Security may be transferred or exchanged for Definitive Securities in accordance with the rules and procedures of the Depositary.  In addition, Definitive Securities shall be transferred to all beneficial owners in exchange for their beneficial interests in a Global Security if (i) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for the Global Security and a successor depository is not appointed by the Company within 90 days of such notice or (ii) an Event of Default has occurred and is continuing and the Registrar has received a request from the Depositary to issue Definitive Securities.

 

(c)                                  In connection with any transfer or exchange of a portion of the beneficial interest in any Global Security to beneficial owners pursuant to paragraph (b), the Registrar shall (if one or more Definitive Securities are to be issued) reflect on its books and records the date and a decrease in the principal amount of the Global Security in an amount equal to the principal amount of the beneficial interest in the Global Security to be transferred, and the Company shall execute, and the Trustee shall authenticate and deliver, one or more Definitive Securities of like Series and amount.

 

(d)                                 In connection with the transfer of an entire Global Security to beneficial owners pursuant to paragraph (b), the Global Security shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to each beneficial owner identified by the Depositary in exchange for its beneficial interest in the Global Security, an equal aggregate principal amount of Definitive Securities of the same Series in authorized denominations.

 

11

 

(e)                                  The Holder of any Global Security may grant proxies and otherwise authorize any person, including Agent Members and persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take under this Indenture or the Securities of such Series.

 

(f)                                   Unless otherwise provided in the Authorizing Resolution or supplemental indenture for a particular Series of Securities, each Global Security of such Series shall bear legends in substantially the following forms:

 

“THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE HOLDERS OF BENEFICIAL INTERESTS HEREIN, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE ANY SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06 OF THE INDENTURE, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO THE INDENTURE AND (IV) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.”

 

“UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR TO ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

 

Section 2.16                            No Duty to Monitor.

 

The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among Agent Members or beneficial owners of interests in any Global Security) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

 

Neither the Trustee nor any Agent shall have any responsibility for any actions taken or not taken by the Depositary.

 

12

 

ARTICLE THREE
 REDEMPTION

 

Section 3.01                            Notices to Trustee.

 

Securities of a Series that are redeemable prior to maturity shall be redeemable in accordance with their terms and, unless the Authorizing Resolution or supplemental indenture provides otherwise, in accordance with this Article Three.

 

If the Company wants to redeem Securities pursuant to Paragraph 4 of the Securities, it shall notify the Trustee in writing of the redemption date and the principal amount of Securities to be redeemed.  Any such notice may be cancelled at any time prior to notice of such redemption being sent to Holders.  Any such cancelled notice shall be void and of no effect.

 

If the Company wants to credit any Securities previously redeemed, retired or acquired against any redemption pursuant to Paragraph 5 of the Securities, it shall notify the Trustee of the amount of the credit and it shall deliver any Securities not previously delivered to the Trustee for cancellation with such notice.

 

The Company shall give each notice provided for in this Section 3.01 at least 15 days before the notice of any such redemption is to be delivered to Holders (unless a shorter notice shall be satisfactory to the Trustee).

 

Section 3.02                            Selection of Securities to be Redeemed.

 

If fewer than all of the Securities of a Series are to be redeemed, the Securities to be redeemed shall be selected pro rata, by lot, or such other method the Trustee (or depository, as applicable) considers fair and appropriate and, in the case of Global Securities, in a manner that complies with applicable requirements of the Depositary.  The Trustee (or depository, as applicable) shall make the selection from Securities outstanding not previously called for redemption and shall promptly notify the Company of the serial numbers or other identifying attributes of the Securities so selected.  The Trustee (or depository, as applicable) may select for redemption portions of the principal of Securities that have denominations larger than the minimum denomination for the Series.  Securities and portions of them it selects shall be in amounts equal to a permissible denomination for the Series.  Provisions of this Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption.

 

Unless otherwise provided in the Authorizing Resolution or supplemental indenture relating to a Series, if any Security selected for partial redemption is converted into or exchanged for Common Stock or other securities, cash or other property in part before termination of the conversion or exchange right with respect to the portion of the Security so selected, the converted portion of such Security shall be deemed (so far as may be) to be the portion selected for redemption.  Securities which have been converted or exchanged during a selection of Securities to be redeemed shall be treated by the Trustee as outstanding for the purpose of such selection.

 

Section 3.03                            Notice of Redemption.

 

At least 10 days but not more than 60 days before a redemption date, the Company shall mail a notice of redemption by first-class mail, postage prepaid (or in the case of Global Securities, deliver electronically in accordance with the applicable procedures of the Depositary), to each Holder of Securities to be redeemed.

 

The notice shall identify the Securities to be redeemed and shall state:

 

(1)                                 the redemption date;

 

(2)                                 the redemption price or the formula pursuant to which such price will be calculated;

 

(3)                                 if any Security is being redeemed in part, the portion of the principal amount of such Security to be redeemed and that, after the redemption date, upon surrender of such Security, a new Security

 

13

 

or Securities in principal amount equal to the unredeemed portion shall be issued upon cancellation of the original Security;

 

(4)                                 in the case of Securities of a Series that are convertible or exchangeable into shares of the Company’s common stock or other securities, cash or other property, the conversion or exchange price or rate, the date or dates on which the right to convert or exchange the principal of the Securities of such Series to be redeemed will commence or terminate and the place or places where such Securities may be surrendered for conversion or exchange;

 

(5)                                 the name and address of the Paying Agent;

 

(6)                                 that Securities called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

(7)                                 that interest on Securities called for redemption ceases to accrue on and after the redemption date;

 

(8)                                 that the Securities are being redeemed pursuant to the mandatory redemption or the optional redemption provisions, as applicable; and

 

(9)                                 the CUSIP number and that no representation is hereby deemed to be made be made by the Trustee as to the correctness or accuracy of any such CUSIP and/or ISIN or other similar number printed in the notice or on such Securities, and that reliance may be placed only on the other identification numbers printed on such Securities.

 

At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at its expense; provided, however, that the Company shall deliver to the Trustee at least 15 days prior to the date on which notice of redemption is to be sent or such shorter period as may be satisfactory to the Trustee, an Officers’ Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice as provided in the preceding paragraph.

 

Section 3.04                            Effect of Notice of Redemption.

 

Once notice of redemption is sent, Securities called for redemption become due and payable on the redemption date and at the redemption price as set forth in the notice of redemption.  Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price, plus accrued and unpaid interest to the redemption date.  Notices of redemption may be subject to one or more conditions.  In the event that any such conditions are not satisfied the Company may amend or revoke such notice of redemption by sending notice to Securityholders (with a copy to the Trustee) in accordance with the applicable procedures of the Depository.

 

Section 3.05                            Deposit of Redemption Price.

 

On or before the redemption date, the Company shall deposit with the Paying Agent immediately available funds in the applicable currency sufficient to pay the redemption price of and accrued interest on all Securities to be redeemed on that date.

 

Section 3.06                            Securities Redeemed in Part.

 

Upon surrender of a Security that is redeemed in part, the Company shall execute and the Trustee shall authenticate for each Holder a new Security of the same Series equal in principal amount to the unredeemed portion of the Security surrendered.

 

14

 

ARTICLE FOUR
 COVENANTS

 

Section 4.01                            Payment of Securities.

 

The Company shall pay the principal of and interest on a Series on the dates, in the currency and in the manner provided in the Securities of the Series.  An installment of principal or interest shall be considered paid on the date it is due if the Paying Agent holds on that date money in the applicable currency designated for and sufficient to pay the installment.

 

The Company shall pay interest on overdue principal at the rate borne by the Series; it shall pay interest on overdue installments of interest at the same rate.

 

Section 4.02                            Maintenance of Office or Agency.

 

The Company shall maintain the office or agency required under Section 2.03.  The Company shall give prior written notice to the Trustee of the location, and any change in the location, of such office or agency.  If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the address of the Trustee.

 

Section 4.03                            Compliance Certificate.

 

The Company shall deliver to the Trustee within 120 days after the end of each fiscal year of the Company an Officers’ Certificate stating whether or not the signers know of any continuing Default by the Company in performing any of its obligations under this Indenture.  If they do know of such a Default, the certificate shall describe the Default.  In addition, the Company will notify the Trustee within 5 business days upon the Company’s knowledge of a Default.

 

Section 4.04                            Waiver of Stay, Extension or Usury Laws.

 

The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury law or other law that would prohibit or forgive the Company from paying all or any portion of the principal of or interest on the Securities of any Series as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Indenture; and (to the extent that it may lawfully do so) the Company expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.

 

ARTICLE FIVE
 SUCCESSOR CORPORATION

 

Section 5.01                            Company May Merge, etc.

 

Nothing contained in this Indenture shall prevent any consolidation or merger of the Company with or into any other Person (whether or not affiliated with the Company) or successive consolidations or mergers in which the Company or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its successor or successors as an entirety, or substantially as an entirety, to any other Person (whether or not affiliated with the Company or its successor or successors); provided, however, the Company hereby covenants and agrees that, upon any such consolidation or merger (in each case, if the Company is not the survivor of such transaction) or any such sale, conveyance, transfer or other disposition (other than a sale, conveyance, transfer or other disposition to a Subsidiary of the Company), the due and punctual payment of the principal of (premium, if any) and interest on all of the Securities of all series in accordance with the terms of each series, according to their tenor, and the due and punctual performance and observance of all the

 

15

 

covenants and conditions of this Indenture with respect to each series or established with respect to such series pursuant to Section 2.01 to be kept or performed by the Company shall be expressly assumed, by supplemental indenture (which shall conform to the provisions of the Trust Indenture Act, as then in effect) reasonably satisfactory in form to the Trustee executed and delivered to the Trustee by the entity formed by such consolidation, or into which the Company shall have been merged, or by the entity which shall have acquired such property.

 

Upon any such consolidation, merger, sale, lease, conveyance or other disposition, the Successor will be substituted for the Company under the Indenture.  The Successor may then exercise every power and right of the Company under this Indenture, and except in the case of a lease, the Company will be released from all of its liabilities and obligations in respect of the Securities and the Indenture.  If the Company leases all or substantially all of its assets the Company will not be released from its obligations to pay the principal of and interest, if any, on the Securities.

 

ARTICLE SIX
 DEFAULTS AND REMEDIES

 

Section 6.01                            Events of Default.

 

An “Event of Default” on a Series occurs if, voluntarily or involuntarily, whether by operation of law or otherwise, any of the following occurs:

 

(1)                                 the failure by the Company to pay interest on any Security of such Series when the same becomes due and payable and the continuance of any such failure for a period of 30 days;

 

(2)                                 the failure by the Company to pay the principal of any Security of such Series when the same becomes due and payable at maturity, upon acceleration, redemption or otherwise;

 

(3)                                 the failure by the Company or any Restricted Subsidiary to comply with any of its agreements or covenants in, or provisions of, the Securities of such Series or this Indenture (as they relate thereto) and such failure continues for the period and after the notice specified below (except in the case of a default with respect to Article Five (or any other provision specified in the applicable supplemental indenture or Authorizing Resolution), which will constitute Events of Default with notice but without passage of time);

 

(4)                                 default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness (other than Non-Recourse Indebtedness) for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted Subsidiaries), whether such Indebtedness or guarantee now exists or is created after the Issue Date, if that default:

 

(A)                               is caused by a failure to pay at final stated maturity the principal amount of such Indebtedness prior to the expiration of the grace period provided in such Indebtedness on the date of such default (a “Payment Default”); or

 

(B)                               results in the acceleration of such Indebtedness prior to its express maturity without such Indebtedness having been discharged or such acceleration having been cured, waived, rescinded or annulled for the period and after the notice specified below,

 

and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $50 million or more;

 

(5)                                 the Company or any Restricted Subsidiary that is a Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

 

16

 

(A)                               commences a voluntary case,

 

(B)                               consents to the entry of an order for relief against it in an involuntary case,

 

(C)                               consents to the appointment of a Custodian of it or for all or substantially all of its Property, or

 

(D)                               makes a general assignment for the benefit of its creditors;

 

(6)                                 a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(A)                               is for relief against the Company or any Restricted Subsidiary that is a Significant Subsidiary as debtor in an involuntary case,

 

(B)                               appoints a Custodian of the Company or any Restricted Subsidiary that is a Significant Subsidiary or a Custodian for all or substantially all of the Property of the Company, or

 

(C)                               orders the liquidation of the Company or any Restricted Subsidiary that is a Significant Subsidiary, and the order or decree remains unstayed and in effect for 60 days.

 

A Default as described in subclause (3) or (4)(B) above will not be deemed an Event of Default until the Trustee notifies the Company, or the Holders of at least 25 percent in principal amount of the then outstanding Securities of the applicable Series notify the Company and the Trustee, of the Default and (except in the case of a default with respect to Article Five (or any other provision specified in the applicable supplemental indenture or Authorizing Resolution)) the Company does not cure the Default within (a) with respect to in subclause (3), 60 days after receipt of the notice and (b) with respect to subclause (4)(B), 30 days after receipt of the notice.  The notice must specify the Default, demand that it be remedied and state that the notice is a “Notice of Default.” If such a Default is cured within such time period, it ceases to exist, without any action by the Trustee or any other Person.

 

The term “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law.

 

Section 6.02                            Acceleration.

 

If an Event of Default (other than an Event of Default with respect to the Company resulting from subclause (5) or (6) above), shall have occurred and be continuing under the Indenture, the Trustee by notice to the Company, or the Holders of at least 25 percent in principal amount of the Securities of the applicable Series then outstanding by notice to the Company and the Trustee, may declare all Securities of such Series to be due and payable immediately.  Upon such declaration of acceleration, the amounts due and payable on the Securities of such Series will be due and payable immediately.  If an Event of Default with respect to the Company specified in subclauses (5) or (6) above occurs, all amounts due and payable on the Securities of such Series will ipso facto become and be immediately due and payable without any declaration, notice or other act on the part of the Trustee and the Company or any Holder.

 

Holders of a majority in principal amount of the then outstanding Securities of such Series may rescind an acceleration with respect to such Series and its consequence (except an acceleration due to nonpayment of principal or interest) if the rescission would not conflict with any judgment or decree and if all existing Events of Default (other than the non-payment of accelerated principal) have been cured or waived.

 

No such rescission shall extend to or shall affect any subsequent Event of Default, or shall impair any right or power consequent thereon.

 

17

 

Section 6.03                            Other Remedies.

 

If an Event of Default on a Series occurs and is continuing, the Trustee may pursue any available remedy by proceeding at law or in equity to collect the payment of principal of or interest on the Series or to enforce the performance of any provision in the Securities or this Indenture applicable to the Series.

 

The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default.  No remedy is exclusive of any other remedy.  All available remedies are cumulative.

 

Section 6.04                            Waiver of Existing Defaults.

 

Subject to Section 10.02, the Holders of a majority in principal amount of the outstanding Securities of a Series on behalf of all the Holders of the Series by written notice to the Trustee may waive an existing Default on such Series and its consequences.  When a Default is waived, it is cured and stops continuing, and any Event of Default arising therefrom shall be deemed to have been cured; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

Section 6.05                            Control by Majority.

 

The Holders of a majority in principal amount of the outstanding Securities of a Series may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on it with respect to such Series.  The Trustee, however, may refuse to follow any direction (i) that conflicts with law or this Indenture, (ii) that, subject to Section 7.01, the Trustee determines is unduly prejudicial to the rights of other Securityholders, (iii) that would involve the Trustee in personal liability, or (iv) if the Trustee shall not have been provided with indemnity satisfactory to it.

 

Section 6.06                            Limitation on Suits.

 

A Securityholder of a Series may not pursue any remedy with respect to this Indenture or the Series unless:

 

(1)                                 the Holder gives to the Trustee written notice of a continuing Event of Default on the Series;

 

(2)                                 the Holders of at least a majority in principal amount of the outstanding Securities of the Series make a written request to the Trustee to pursue the remedy;

 

(3)                                 such Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee against any loss, liability or expense;

 

(4)                                 the Trustee does not comply with the request within 60 days after receipt of the request and the offer of indemnity; and

 

(5)                                 no written request inconsistent with such written request shall have been given to the Trustee pursuant to this Section 6.06.

 

A Securityholder may not use this Indenture to prejudice the rights of another Holder of Securities of the same Series or to obtain a preference or priority over another Holder of Securities of the same Series (it being understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances by such Holder are unduly prejudicial to another Holder).

 

18

 

Section 6.07                            Rights of Holders to Receive Payment.

 

Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of principal of and interest on any Security, on or after the respective due dates expressed in the Security, or to bring suit for the enforcement of any such payment on or after such respective dates, is absolute and unconditional and shall not be impaired or affected without the consent of the Holder.

 

Section 6.08                            Collection Suit by Trustee.

 

If an Event of Default in payment of interest or principal specified in Section 6.01(1) or (2) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount of principal and interest remaining unpaid.

 

Section 6.09                            Trustee May File Proofs of Claim.

 

The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements, and advances of the Trustee, its agents and counsel) and the Securityholders allowed in any judicial proceedings relative to the Company or its creditors or Property, and unless prohibited by applicable law or regulation, may vote on behalf of the Holders in any election of a Custodian, and shall be entitled and empowered to collect and receive any moneys or other Property payable or deliverable on any such claims and to distribute the same and any Custodian in any such judicial proceeding is hereby authorized by each Securityholder to make such payments to the Trustee.  Nothing herein shall be deemed to authorize the Trustee to authorize or consent to or vote for or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder or to authorize the Trustee to vote in respect of the claim of any Securityholder except as aforesaid for the election of the Custodian.

 

Section 6.10                            Priorities.

 

If the Trustee collects any money pursuant to this Article with respect to Securities of any Series, it shall pay out the money in the following order:

 

First:                                                      to the Trustee for amounts due under Section 7.07;

 

Second:                                        to Securityholders of the Series for amounts due and unpaid on the Series for principal and interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Series for principal and interest, respectively; and

 

Third:                                                  to the Company or as a court of competent jurisdiction shall direct.

 

The Trustee may fix a record date and payment date for any payment to Securityholders pursuant to this Section 6.10.

 

Section 6.11                            Undertaking for Costs.

 

In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having the due regard to the merits and good faith of the claims or defenses made by the party litigant.  This Section does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by Holders of more than 10% in principal amount of the Series.

 

19

 

ARTICLE SEVEN
 TRUSTEE

 

Section 7.01                            Duties of Trustee.

 

(a)                                 If an Event of Default has occurred and is continuing with respect to Securities of any Series, the Trustee shall exercise its rights and powers and use the same degree of care and skill in their exercise as a prudent man would exercise or use under the circumstances in the conduct of his own affairs.

 

(b)                                 Except during the continuance of an Event of Default:

 

(1)                                 The Trustee need perform only those duties that are specifically set forth in this Indenture and no others and no implied covenants or obligations shall be read into this Indenture against the Trustee.

 

(2)                                 In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture.  The Trustee, however, in the case of certificates or opinions specifically required by any provision hereof to be furnished to it, shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture but need not confirm or investigate the accuracy of mathematical calculations or other facts or matters stated therein.

 

(c)                                  The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:

 

(1)                                 This paragraph does not limit the effect of paragraph (b) of this Section.

 

(2)                                 The Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts.

 

(3)                                 The Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.05 or any other direction of the Holders permitted hereunder.

 

(d)                                 Every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section.

 

(e)                                  The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against any loss, liability or expense.

 

(f)                                   The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree with the Company.  Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

 

(g)                                  None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there shall be reasonable grounds for believing that the repayment of such funds or adequate indemnity against such liability is not reasonably assured to it.

 

Section 7.02                            Rights of Trustee.

 

Subject to Section 7.01:

 

(a)                                 The Trustee may conclusively rely and shall be fully protected in acting or refraining from acting on any document, resolution, certificate, instrument, report, or direction believed by it to be genuine and to have

 

20

 

been signed or presented by the proper person.  The Trustee need not investigate any fact or matter stated in the document, resolution, certificate, instrument, report, or direction.

 

(b)                                 Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel or both, which shall conform to Sections 12.04 and 12.05 hereof and containing such other statements as the Trustee reasonably deems necessary to perform its duties hereunder.  The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on the Officers’ Certificate, Opinion of Counsel or any other direction of the Company permitted hereunder.

 

(c)                                  The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.

 

(d)                                 The Trustee shall not be liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture.

 

(e)                                  The Trustee may consult with counsel of its selection, and the advice of such counsel or any Opinion of Counsel as to matters of law shall be full and complete authorization and protection in respect of any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel.

 

(f)                                   Unless otherwise specifically provided in the Indenture, any demand, request, direction or notice from the Company shall be sufficient if signed by an Officer of the Company.

 

(g)                                  For all purposes under this Indenture, the Trustee shall not be deemed to have notice or knowledge of any Event of Default unless written notice of any Event of Default is received by the Trustee at its address specified in Section 12.02 hereof and such notice references the Securities generally, the Company and this Indenture.

 

(h)                                 The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity reasonably satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

 

(i)                                     The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation.

 

(j)                                    In no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

(k)                                 The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder.

 

(l)                                     The Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture.

 

(m)                             In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear

 

21

 

or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

Section 7.03                            Individual Rights of Trustee.

 

The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or its affiliates with the same rights it would have if it were not Trustee.  Any Agent may do the same with like rights.  The Trustee, however, must comply with Sections 7.10 and 7.11.

 

Section 7.04                            Trustee’s Disclaimer.

 

The Trustee makes no representation as to the validity or adequacy of this Indenture, the Securities or of any prospectus used to sell the Securities of any Series; it shall not be accountable for the Company’s use of the proceeds from the Securities; it shall not be accountable for any money paid to the Company, or upon the Company’s direction, if made under and in accordance with any provision of this Indenture; it shall not be responsible for the use or application of any money received by any Paying Agent other than the Trustee; and it shall not be responsible for any statement of the Company in this Indenture or in the Securities other than its certificate of authentication.

 

Section 7.05                            Notice of Defaults.

 

If a Default on a Series occurs and is continuing and if a responsible officer of the Trustee has actual knowledge of such Default, the Trustee shall deliver to each Securityholder of the Series notice of the Default (which shall specify any uncured Default known to it) within 90 days after the Trustee obtains such knowledge.  Except in the case of a default in payment of principal of or interest on a Series, the Trustee may withhold the notice if and so long as the board of directors of the Trustee, the executive or any trust committee of such directors and/or responsible officers of the Trustee in good faith determine(s) that withholding the notice is in the interests of Holders of the Series.

 

Section 7.06                            Reports by Trustee to Holders.

 

Within 60 days after each May 15 beginning with the May 15 following the date of this Base Indenture, the Trustee shall mail to each Securityholder a brief report dated as of such May 15 that complies with TIA § 313(a) (but if no event described in TIA § 313(1) through (8) has occurred within the twelve months preceding the reporting date no report in relation thereto need be transmitted).  The Trustee also shall comply with TIA § 313(b).

 

A copy of each report at the time of its mailing to Securityholders shall be delivered to the Company and filed by the Trustee with the SEC and each national securities exchange on which the Securities are listed.  The Company agrees to notify the Trustee of each national securities exchange on which the Securities are listed.

 

Section 7.07                            Compensation and Indemnity.

 

The Company shall pay to the Trustee from time to time reasonable compensation for its services subject to any written agreement between the Trustee and the Company (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust).  The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred by it.  Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel.  The Company shall indemnify the Trustee, its officers, directors, employees and agents and hold it harmless against any loss, liability, claim, damage or expense incurred or made by or on behalf of it in connection with the administration of this Indenture or the trust hereunder and its duties hereunder including the costs and expenses of defending itself against or investigating any claim in the premises.  The Trustee shall notify the Company promptly of any claim of which it has received written notice and for which it may seek indemnity.  The Company need not reimburse any expense or indemnify against

 

22

 

any loss or liability incurred by the Trustee through the Trustee’s, or its officers’, directors’, or employees’ negligence or willful misconduct.

 

Unless otherwise provided in any supplemental indenture or Authorizing Resolution relating to any Series, to ensure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities of all Series on all money or Property held or collected by the Trustee, except that held in trust to pay principal of or interest on particular Securities.  When the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 6.01 or in connection with Article Six hereof, the expenses (including the reasonable fees and expenses of its counsel) and the compensation for services in connection therewith are to constitute expenses of administration under any Bankruptcy Law.  Section 7.07 shall survive the discharge of the Indenture or resignation or removal of Trustee.

 

Section 7.08                            Replacement of Trustee.

 

The Trustee may resign with respect to Securities of any or all Series by so notifying the Company.  The Holders of a majority in principal amount of the outstanding Securities (or of the relevant Series) may remove the Trustee by so notifying the removed Trustee in writing (at any time when the Trustee holds funds on behalf of the Company, upon 30 days’ prior written notice) and may appoint a successor trustee with the Company’s consent.  Such resignation or removal shall not take effect until the appointment by the Securityholders of the relevant Series or the Company as hereinafter provided of a successor trustee and the acceptance of such appointment by such successor trustee.  The Company (at any time when the Trustee holds funds on behalf of the Company, upon 30 days’ prior written notice) may remove the Trustee and any Securityholder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee for any or no reason, including if:

 

(1)                                 the Trustee fails to comply with Section 7.10 after written request by the Company or any bona fide Securityholder who has been a Securityholder for at least six months;

 

(2)                                 the Trustee is adjudged a bankrupt or an insolvent;

 

(3)                                 a receiver or other public officer takes charge of the Trustee or its Property; or

 

(4)                                 the Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor trustee with respect to the Securities of the relevant Series.  If a successor trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee at the expense of the Company, the Company or any Holder may petition any court of competent jurisdiction for the appointment of a successor trustee.

 

A successor trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company.  Immediately after that, the retiring Trustee shall, upon payment of its fees and expenses (including, without limitation, reasonable fees and expenses of counsel) hereunder, transfer all Property held by it as Trustee to the successor trustee, the resignation or removal of the retiring Trustee shall become effective, and the successor trustee shall have all the rights, powers and duties of the Trustee under this Indenture.  A successor trustee shall mail notice of its succession to each Securityholder.

 

Section 7.09                            Successor Trustee by Merger, etc.

 

If the Trustee consolidates with, merges with or into or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor trustee.

 

23

 

Section 7.10                            Eligibility; Disqualification.

 

This Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1).  The Trustee shall have a combined capital and surplus of at least $10,000,000 as set forth in its most recent published annual report of condition.  The Trustee shall comply with TIA § 310(b).

 

Section 7.11                            Preferential Collection of Claims Against Company.

 

The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b).  A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated therein.

 

ARTICLE EIGHT
 DISCHARGE OF INDENTURE

 

Section 8.01                            Defeasance upon Deposit of Moneys or Government Obligations.

 

(a)                                 The Company may, at its option and at any time, elect to have either paragraph (b) or paragraph (c) below be applied to the outstanding Securities of any Series upon compliance with the applicable conditions set forth in paragraph (d).

 

(b)                                 Upon the Company’s exercise under paragraph (a) of the option applicable to this paragraph (b) with respect to any Series, the Company shall be deemed to have been released and discharged from its obligations with respect to the outstanding Securities of the Series on the date the applicable conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, such Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Securities of a Series, which shall thereafter be deemed to be “outstanding” only for the purposes of the Sections and matters under this Indenture referred to in (i) and (ii) below, and the Company shall be deemed to have satisfied all its other obligations under such Securities and this Indenture insofar as such Securities are concerned, except for the following which shall survive until otherwise terminated or discharged hereunder: (i) the rights of Holders of outstanding Securities of a Series to receive solely from the trust fund described in paragraph (d) below and as more fully set forth in such paragraph, payments in respect of the principal of and interest on such Securities when such payments are due and (ii) obligations listed in Section 8.02, subject to compliance with this Section 8.01.  The Company may exercise its option under this paragraph (b) with respect to a Series notwithstanding the prior exercise of its option under paragraph (c) below with respect to the Securities of the Series.

 

(c)                                  Upon the Company’s exercise under paragraph (a) of the option applicable to this paragraph (c) with respect to a Series, the Company shall be released and discharged from the obligations under any covenant contained in Articles Four and Five and any other covenant contained in or referenced in the Authorizing Resolution or supplemental indenture relating to such Series (to the extent such release and discharge shall not be prohibited thereby), on and after the date the conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”), and the Securities of such Series shall thereafter be deemed to be not “outstanding” for the purpose of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder.  For this purpose, such Covenant Defeasance means that, with respect to the outstanding Securities of a Series, the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 6.01(3) or otherwise, but, except as specified above, the remainder of this Indenture and such Securities shall be unaffected thereby.

 

(d)                                 The following shall be the conditions to application of either paragraph (b) or paragraph (c) above to the outstanding Securities of the applicable Series:

 

(1)                                 The Company shall have irrevocably deposited in trust with the Trustee (or another qualifying trustee), money in the currency in which the Securities of such Series are payable or Government

 

24

 

Obligations or a combination thereof in such amounts and at such times as are sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of and interest on the outstanding Securities of such Series to maturity or redemption; provided, however, that the Trustee (or other qualifying trustee) shall have received an irrevocable written order from the Company instructing the Trustee (or other qualifying trustee) to apply such money or the proceeds of such Government Obligations to said payments with respect to the Securities of such Series to maturity or redemption;

 

(2)                                 No Default or Event of Default (other than a Default or Event of Default resulting from non-compliance with any covenant from which the Company is released upon effectiveness of such Legal Defeasance or Covenant Defeasance pursuant to paragraph (b) or (c) hereof, as applicable) shall have occurred and be continuing on the date of such deposit or result therefrom;

 

(3)                                 Such deposit will not result in a breach or violation of, or constitute a default under, any other material instrument or agreement to which the Company or any of any of its Restricted Subsidiaries is a party or by which it or any of their Property is bound;

 

(4)                                 (i) In the event the Company elects paragraph (b) hereof, the Company shall deliver to the Trustee an Opinion of Counsel in the United States, in form and substance reasonably satisfactory to the Trustee, to the effect that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (B) since the Issue Date pertaining to such Series, there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall state that, or (ii) in the event the Company elects paragraph (c) hereof, the Company shall deliver to the Trustee an Opinion of Counsel in the United States, in form and substance reasonably satisfactory to the Trustee, to the effect that, in the case of clauses (i) and (ii), and subject to customary assumptions and exclusions, Holders of the Securities of such Series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and the defeasance contemplated hereby and will be subject to federal income tax in the same amounts and in the same manner and at the same times as would have been the case if such deposit and defeasance had not occurred;

 

(5)                                 The Company shall have delivered to the Trustee an Officers’ Certificate, stating that the deposit under clause (1) was not made by the Company with the intent of preferring the Holders of the Securities of such Series over any other creditors of the Company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company or others; and

 

(6)                                 The Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent specified herein relating to the defeasance contemplated by this Section 8.01 have been complied with.

 

In the event all or any portion of the Securities of a Series are to be redeemed through such irrevocable trust, the Company must make arrangements satisfactory to the Trustee, at the time of such deposit, for the giving of the notice of such redemption or redemptions by the Trustee in the name and at the expense of the Company.

 

(e)                                  In addition to the Company’s rights above under this Section 8.01, the Company may terminate all of its obligations under this Indenture with respect to a Series, when:

 

(1)                                 All Securities of such Series theretofore authenticated and delivered (other than Securities which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.07 and Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust) have been delivered to the Trustee for cancellation or all such Securities not theretofore delivered to the Trustee for cancellation (A) have become due and payable, (B) will become due and payable at maturity within one year or (C) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, and in each such case, the Company has irrevocably deposited or caused to be deposited with the Trustee (or another qualifying trustee) as trust funds in trust solely for that purpose an amount of money in the currency in which the Securities of such Series are payable or Government Obligations or a combination thereof sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay and discharge the entire Indebtedness on the Securities of such Series not theretofore delivered

 

25

 

to the Trustee for cancellation, for principal of and interest on the Securities of such Series, on the date of such deposit or to the maturity or redemption date, as the case may be;

 

(2)                                 The Company has paid or caused to be paid all other sums payable hereunder by the Company;

 

(3)                                 The Company has delivered irrevocable instructions to the Trustee (or such other qualifying trustee), to apply the deposited money toward the payment of the Securities of such Series at maturity or redemption, as the case may be; and

 

(4)                                 The Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, stating that all conditions precedent specified in this Section 8.01(e) relating to the satisfaction and discharge of this Indenture have been complied with.

 

Section 8.02                            Survival of the Company’s Obligations.

 

Notwithstanding the satisfaction and discharge of this Indenture under Section 8.01, the Company’s obligations in Paragraph 8 of the Securities and Sections 2.03 through 2.07, 4.01, 7.07, 7.08, 8.04 and 8.05, however, shall survive until the Securities of an applicable Series are no longer outstanding.  Thereafter, the Company’s obligations in Paragraph 8 of the Securities of such Series and Sections 7.02, 7.07, 8.04 and 8.05 shall survive (as they relate to such Series) such satisfaction and discharge.

 

Section 8.03                            Application of Trust Money.

 

The Trustee shall hold in trust money or Government Obligations deposited with it pursuant to Section 8.01.  It shall apply the deposited money and the money from Government Obligations in accordance with this Indenture to the payment of principal of and interest on the Securities of the defeased Series.

 

Section 8.04                            Repayment to the Company.

 

The Trustee and the Paying Agent shall promptly pay to the Company upon request any excess money or securities held by them at any time.  The Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal or interest that remains unclaimed for two years, provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once in a newspaper of general circulation in the City of New York or send to each such Holder notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication or mailing, any unclaimed balance of such money then remaining will be repaid to the Company.  After payment to the Company, Securityholders entitled to the money must look to the Company for payment as general creditors unless applicable abandoned property law designates another person and all liability of the Trustee or such Paying Agent with respect to such money shall cease.

 

Section 8.05                            Reinstatement.

 

If the Trustee is unable to apply any money or Government Obligations in accordance with Section 8.01 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture and the Securities relating to the Series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01 until such time as the Trustee is permitted to apply all such money or Government Obligations in accordance with Section 8.01; provided, however, that (a) if the Company has made any payment of interest on or principal of any Securities of the Series because of the reinstatement of its obligations hereunder, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money or Government Obligations held by the Trustee and (b) unless otherwise required by any legal proceeding or any order or judgment of any court or governmental authority, the Trustee shall return all such money or Government

 

26

 

Obligations to the Company promptly after receiving a written request therefor at any time, if such reinstatement of the Company’s obligations has occurred and continues to be in effect.

 

ARTICLE NINE
 RESERVED

 

ARTICLE TEN
 AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

Section 10.01                     Without Consent of Holders.

 

The Company and the Trustee may amend or supplement this Indenture or the Securities of a Series without notice to or consent of any Securityholder of such Series:

 

(1)                                 to cure any ambiguity, omission, defect or inconsistency;

 

(2)                                 to comply with Article Five;

 

(3)                                 to provide that specific provisions of this Indenture shall not apply to a Series not previously issued or to make a change to specific provisions of this Indenture that only applies to any Series not previously issued or to additional Securities of a Series not previously issued;

 

(4)                                 to create a Series and establish its terms;

 

(5)                                 to provide for uncertificated Securities in addition to or in place of certificated Securities;

 

(6)                                 to release a guarantor in respect of any Series which, in accordance with the terms of this Indenture applicable to the particular Series, ceases to be liable in respect of its guarantee;

 

(7)                                 to add a guarantor in respect of any Series;

 

(8)                                 to secure any Series;

 

(9)                                 to comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA;

 

(10)                          to make any other change that does not adversely affect the rights of Securityholders; and

 

(11)                          to conform the provisions of the Indenture to the final offering memorandum in respect of any Series.

 

After an amendment under this Section 10.01 becomes effective, the Company shall deliver notice of such amendment to the Securityholders.

 

Section 10.02                     With Consent of Holders.

 

The Company and the Trustee may amend or supplement this Indenture or the Securities of a Series without notice to any Securityholder of such Series but with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by the amendment (including consents obtained in connection with a purchase of, or tender offer or exchange offer for, Securities of such Series).  Each such Series shall vote as a separate class.  The Holders of a majority in principal amount of the outstanding Securities of any Series may waive compliance by the Company with any provision of the Securities of such Series or of this Indenture relating to such Series without notice to any Securityholder (including any waiver granted in

 

27

 

connection with a purchase of, or tender offer or exchange offer for, Securities of such Series).  Without the consent of each Holder of a Security affected thereby, however, an amendment, supplement or waiver, including a waiver pursuant to Section 6.04, may not:

 

(1)                                 reduce the amount of Securities of the relevant Series whose Holders must consent to an amendment, supplement or waiver;

 

(2)                                 reduce the rate of or extend the time for payment of interest, including defaulted interest, on any Security;

 

(3)                                 reduce the principal of or extend the fixed maturity of any Security or alter the provisions (including related definitions) with respect to redemption of any Security pursuant to Article Three hereof or with respect to any obligations on the part of the Company to offer to purchase or to redeem Securities of a Series pursuant to the Authorizing Resolution or supplemental indenture pertaining to such Series (it being understood that only the consent of the Holders of a majority of the principal amount of the applicable Series of Securities will be required in connection with the waiver or modification of any obligation by the Company to make an offer to purchase the Securities of such Series as a result of a change of control prior to the occurrence of a change of control);

 

(4)                                 make any change that adversely affects any right of a Holder to convert or exchange any Security into or for shares of the Company’s common stock or other securities, cash or other property in accordance with the terms of such Security;

 

(5)                                 modify the ranking or priority of the Securities of the relevant Series or any guarantee thereof;

 

(6)                                 release any guarantor of any Series from any of its obligations under its guarantee or this Indenture otherwise than in accordance with the terms of this Indenture;

 

(7)                                 make any change in Sections 6.04, 6.07 or this Section 10.02;

 

(8)                                 waive a continuing Default or Event of Default in the payment of the principal of or interest on any Security; or

 

(9)                                 make any Security payable at a place or in money other than that stated in the Security, or impair the right of any Securityholder to bring suit as permitted by Section 6.07.

 

An amendment of a provision included solely for the benefit of one or more Series does not affect the interests of Securityholders of any other Series.

 

It shall not be necessary for the consent of the Holders under this Section to approve the particular form of any proposed supplement, but it shall be sufficient if such consent approves the substance thereof.

 

Section 10.03                     Compliance with Trust Indenture Act.

 

Every amendment to or supplement of this Indenture or any Securities shall comply with the TIA as then in effect.

 

Section 10.04                     Revocation and Effect of Consents.

 

A consent to an amendment, supplement or waiver by a Holder shall bind the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security.  Unless otherwise provided in the consent or the consent solicitation statement or other document describing the terms of the consent, any Holder or subsequent Holder may revoke the consent as to its Security or portion of a Security.  Any revocation of a consent by the Holder of a

 

28

 

Security or any such subsequent Holder shall be effective only if the Trustee receives the notice of revocation before the date on which the Trustee receives an Officers’ Certificate from the Company certifying that the requisite number of consents have been received.

 

The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Holders of Securities of any Series entitled to consent to any amendment, supplement or waiver, which record date shall be at least 10 days prior to the first solicitation of such consent.  If a record date is fixed, and if Holders otherwise have a right to revoke their consent under the consent or the consent solicitation statement or other document describing the terms of the consent, then notwithstanding the second to last sentence of the immediately preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to revoke any consent previously given, whether or not such Persons continue to be Holders after such record date.  No such consent shall be valid or effective for more than 90 days after such record date.

 

An amendment, supplement or waiver with respect to a Series becomes effective upon the (i) receipt by the Company or the Trustee of the requisite consents, (ii) satisfaction of any conditions to effectiveness as set forth in this Indenture or any indenture supplemental hereto containing such amendment, supplement or waiver and (iii) execution of such amendment, supplement or waiver (or the related supplemental indenture) by the Company and the Trustee.  After an amendment, supplement or waiver with respect to a Series becomes effective, it shall bind every Holder of such Series, unless it makes a change described in any of clauses (1) through (9) of Section 10.02, in which case, the amendment, supplement or waiver shall bind a Holder of a Security who is affected thereby only if it has consented to such amendment, supplement or waiver and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security; provided that no such waiver shall impair or affect the right of any Holder to receive payment of principal of and interest on a Security, on or after the respective due dates expressed in such Security, or to bring suit for the enforcement of any such payment on or after such respective dates without the consent of such Holder.

 

Section 10.05                     Notation on or Exchange of Securities.

 

If an amendment, supplement or waiver changes the terms of a Security, the Company may require the Holder of the Security to deliver it to the Trustee, at which time the Trustee shall place an appropriate notation on the Security about the changed terms and return it to the Holder.  Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security that reflects the changed terms.

 

Section 10.06                     Trustee to Sign Amendments, etc.

 

Subject to Section 7.02(b), the Trustee shall sign any amendment, supplement or waiver authorized pursuant to this Article if the amendment, supplement or waiver does not adversely affect the rights, duties, liabilities or immunities of the Trustee.  If it does, the Trustee may but need not sign it.  In signing or refusing to sign such amendment or supplemental indenture, the Trustee shall be provided with and shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that such amendment, supplement or waiver is authorized or permitted by this Indenture, and (solely with respect to such Opinion of Counsel) that it will be valid and binding upon the Company and enforceable in accordance with its terms.

 

ARTICLE ELEVEN
 SECURITIES IN FOREIGN CURRENCIES

 

Section 11.01                     Applicability of Article.

 

Whenever this Indenture provides for (i) any action by, or the determination of any of the rights of, Holders of Securities of any Series in which not all of such Securities are denominated in the same currency, or (ii) any distribution to Holders of Securities, in the absence of any provision to the contrary pursuant to this Indenture or the Securities of any particular Series, any amount in respect of any Security denominated in a Foreign Currency shall be treated for any such action or distribution as that amount of Dollars that could be obtained for such amount on

 

29

 

such reasonable basis of exchange and as of the record date with respect to Securities of such Series (if any) for such action, determination of rights or distribution (or, if there shall be no applicable record date, such other date reasonably proximate to the date of such action, determination of rights or distribution) as the Company may specify in a written notice to the Trustee or, in the absence of such written notice, as the Trustee may determine.

 

ARTICLE TWELVE
 MISCELLANEOUS

 

Section 12.01                     Trust Indenture Act Controls.

 

If any provision of this Indenture limits, qualifies or conflicts with another provision which is required to be included in this Indenture by the TIA, the required provision shall control.

 

Section 12.02                     Notices.

 

Any order, consent, notice or communication shall be sufficiently given if in writing and delivered in person or mailed by first class mail, postage prepaid, or delivered by commercial courier service, addressed as follows:

 

if to the Company:

 

Everi Holdings Inc.

7250 S. Tenaya Way, Suite 100

Las Vegas, Nevada 89113

(800) 833-7110

Attention: General Counsel

 

if to the Trustee:

 

[                               ]

[                               ]

[                               ]

 

The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

 

Any notice or communication mailed to a Securityholder shall be mailed to him by first class mail, or delivered by commercial courier service, at his address as it appears on the registration books of the Registrar, or, in the case of Global Securities sent electronically in accordance with the procedures of the Depositary, and shall be sufficiently given to him if so sent within the time prescribed.

 

Failure to send a notice or communication to a Securityholder or any defect in it shall not affect its sufficiency with respect to other Securityholders.  If a notice or communication is sent in the manner provided above, it is duly given, whether or not the addressee receives it except that notice to the Trustee shall only be effective upon receipt thereof by the Trustee.

 

If the Company sends notice or communications to the Securityholders, it shall send a copy to the Trustee at the same time.

 

In addition to the foregoing, the Trustee agrees to accept and act upon notice, instructions or directions pursuant to this Indenture sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods.  If the party elects to give the Trustee e-mail or facsimile instructions (or instructions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions, the Trustee’s understanding of such instructions shall be deemed controlling.  The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction.  The party providing electronic instructions agrees to assume all risks arising out of the use of such electronic methods to submit instructions and

 

30

 

directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, and the risk of interception and misuse by third parties.

 

Notwithstanding any other provision of this Indenture or any Security, where this Indenture or any Security provides for notice of any event to a Holder of a Global Security (whether by mail or otherwise), such notice shall be sufficiently given if given to the Depositary (or its designee) pursuant to the standing instructions from the Depositary or its designee.

 

Section 12.03                     Communications by Holders with Other Holders.

 

Securityholders may communicate pursuant to TIA § 312(b) with other Securityholders with respect to their rights under this Indenture or the Securities.  The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c).

 

Section 12.04                     Certificate and Opinion as to Conditions Precedent.

 

Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

 

(1)                                 an Officers’ Certificate (which shall include the statements set forth in Section 12.05) stating that, in the opinion of the signers (who may rely upon an Opinion of Counsel with respect to matters of law), all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and

 

(2)                                 an Opinion of Counsel (which shall include the statements set forth in Section 12.05) stating that, in the opinion of such counsel (who may rely upon an Officers’ Certificate or certificates of public officials as to matters of fact), all such conditions precedent and covenants, compliance with which constitutes a condition precedent, if any, provided for in this Indenture relating to the proposed action or inaction, have been complied with.

 

Section 12.05                     Statements Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include:

 

(1)                                 a statement that the person making such certificate or opinion has read such covenant or condition;

 

(2)                                 a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

 

(3)                                 a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(4)                                 a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

 

Section 12.06                     Rules by Trustee and Agents.

 

The Trustee may make reasonable rules for action by or a meeting of Securityholders.  The Registrar or Paying Agent may make reasonable rules for its functions.

 

31

 

Section 12.07                     Legal Holidays.

 

A “Legal Holiday” is a Saturday, a Sunday, a legal holiday or a day on which banking institutions in New York, New York or in the place of payment are not required to be open.  If a payment date is a Legal Holiday, payment may be made on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.  If this Indenture provides for a time period that ends or requires performance of any non-payment obligation by a day that is not a Business Day, then such time period shall instead be deemed to end on, and such obligation shall instead be performed by, the next succeeding Business Day.  A “Business Day” is any day other than a Legal Holiday.

 

Section 12.08                     Governing Law.

 

The laws of the State of New York shall govern this Indenture and the Securities of each Series.

 

Section 12.09                     No Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 12.10                     No Recourse Against Others.

 

All liability described in Paragraph 12 of the Securities of any director, officer, employee or stockholder, as such, of the Company is, to the fullest extent permitted by applicable law, waived and released.

 

Section 12.11                     Successors and Assigns.

 

All covenants and agreements of the Company in this Indenture and the Securities shall bind its successors and assigns.  All agreements of the Trustee in this Indenture shall bind its successors and assigns.

 

Section 12.12                     Duplicate Originals.

 

The parties may sign any number of copies of this Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  Signatures of the parties hereto transmitted by facsimile or other electronic transmission shall be deemed to be their original signatures for all purposes.

 

Section 12.13                     Severability.

 

In case any one or more of the provisions contained in this Indenture or in the Securities of a Series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such Securities.

 

Section 12.14                     Waiver of Jury Trial.

 

EACH OF THE COMPANY AND THE TRUSTEE (AND EACH HOLDER BY ITS ACCEPTANCE OF ANY NOTE) 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 INDENTURE, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.

 

Section 12.15                     Submission to Jurisdiction.

 

Any suit, action or proceeding against the Company or any of its properties, assets or revenues with respect to this Indenture or the Securities (a “Related Proceeding”) may be brought in any state or Federal court in the Borough of Manhattan in The City of New York, New York, as the Person bringing such Related Proceeding may elect in its sole discretion.  The Company hereby consents to the non-exclusive jurisdiction of each such court for the purpose of any Related Proceeding and has irrevocably waived any objection to the laying of venue of any Related Proceeding brought in any such court and to the fullest extent it may effectively do so and the defense of an inconvenient forum to the maintenance of any Related Proceeding or any such suit, action or proceeding in any such court.

 

32

 

SIGNATURES

 

IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed, all as of the date first above written.

 

	
 
    	
EVERI HOLDINGS INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[                                 ]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

EXHIBIT A

 

	
No.                            
    	
CUSIP/ISIN   No.:                 
    

 

[Title of Security]

 

EVERI HOLDINGS INC.
  a Delaware corporation

 

promises to pay to                                                    or registered assigns the principal sum of                                                  [Dollars]* on                               .

 

Interest Payment Dates:                                and                               

 

Record Dates:                               and                               

 

	
Authenticated:
    	
 
    	
 
    	
Dated:
    	
 
    
	
 
    	
 
    
	
 
    	
EVERI HOLDINGS INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
						

 

	
[                                  ],
    	
 
    
	
as   Trustee, certifies that this is one of the Securities referred to in the within   mentioned Indenture.
    	
 
    

 

	
By:
    	
 
    	
 
    
	
 
    	
Authorized   Signatory
    	
 
    

 

*                                         Or other currency.  Insert corresponding provisions on reverse side of Security in respect of foreign currency denomination or interest payment requirement.

 

A-1

 

EVERI HOLDINGS INC.

 

[Title of Security]

 

EVERI HOLDINGS INC., a Delaware corporation (together with its successors and assigns, the “Company”), issued this Security under an Indenture dated as of                      , (as amended, modified or supplemented from time to time in accordance therewith, the “Base Indenture”), as supplemented by the Supplemental Indenture dated as of                      , (the “Supplemental Indenture” and together with the Base Indenture, the “Indenture”), by and among the Company and                      , as trustee (in such capacity, the “Trustee”), to which reference is hereby made for a statement of the respective rights, obligations, duties and immunities thereunder of the Company, the Trustee and the Holders and of the terms upon which the Securities are, and are to be, authorized and delivered.  All terms used in this Security that are defined in the Indenture shall have the meanings assigned to them therein.

 

1.                                      Interest.  The Company promises to pay interest on the principal amount of this Security at the rate per annum shown above.  The Company will pay interest semiannually on                       and                       of each year, commencing                      ,       , until the principal is paid or made available for payment.  Interest on the Securities will accrue from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid, from                      ,         , provided that, if there is no existing default in the payment of interest, and if this Security is authenticated between a record date referred to on the face hereof and the next succeeding interest payment date, interest shall accrue from such interest payment date.  Interest will be computed on the basis of a 360-day year of twelve 30-day months.

 

2.                                      Method of Payment.  The Company will pay interest on the Securities (except defaulted interest, if any, which will be paid on such special payment date to Holders of record on such special record date as may be fixed by the Company or otherwise in accordance with the Indenture) to the persons who are registered Holders of Securities at the close of business on the [Insert record dates] immediately preceding the interest payment date.  Holders must surrender Securities to a Paying Agent to collect principal payments.  The Company will pay principal and interest in money of [Insert applicable country or currency] that at the time of payment is legal tender for payment of public and private debts.

 

3.                                      Paying Agent and Registrar.  Initially, the Trustee will act as Paying Agent and Registrar.  The Company may change or appoint any Paying Agent, Registrar or co-Registrar without notice.  The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Registrar or co-Registrar.

 

4.                                      Optional Redemption.(1)  The Company may redeem the Securities at any time on or after                      , in whole or in part, at the following redemption prices (expressed as a percentage of their principal amount) together with interest accrued and unpaid to the date fixed for redemption:

 

	
If redeemed during the twelve-month period
   commencing on                and ending on
                in each of the following years
    	
 
    	
Percentage
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

[Insert provisions relating to redemption at option of Holders, if any]

 

Notice of redemption will be sent at least 30 days but not more than 60 days before the redemption date to each Holder of Securities to be redeemed at its registered address.  Securities in denominations larger than                      (2) may be redeemed in part.  On and after the redemption date interest ceases to accrue on Securities or portions of them called for redemption, provided that if the Company shall default in the payment of

 

(1)         If applicable.

 

(2)         Insert applicable denominations and multiples.

 

A-2

 

such Securities at the redemption price together with accrued interest, interest shall continue to accrue at the rate borne by the Securities.

 

5.                                      Mandatory Redemption.(3)  The Company shall redeem [        ]% of the aggregate principal amount of Securities originally issued under the Indenture on each of [                ], which redemptions are calculated to retire [     ]% of the Securities originally issued prior to maturity.  Such redemptions shall be made at a redemption price equal to 100% of the principal amount thereof, together with accrued interest to the redemption date.  The Company may reduce the principal amount of Securities to be redeemed pursuant to this Paragraph 5 by the principal amount of any Securities previously redeemed, retired or acquired, otherwise than pursuant to this Paragraph 5, that the Company has delivered to the Trustee for cancellation and not previously credited to the Company’s obligations under this Paragraph 5.  Each such Security shall be received and credited for such purpose by the Trustee at the redemption price and the amount of such mandatory redemption payment shall be reduced accordingly.

 

6.                                      Denominations, Transfer, Exchange.  The Securities are in registered form only without coupons in denominations of                 (4) and integral multiples of                  in excess thereof.(5)  A Holder may transfer or exchange Securities by presentation of such Securities to the Registrar or a co-Registrar with a request to register the transfer or to exchange them for an equal principal amount of Securities of other denominations.  The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.  The Registrar need not transfer or exchange any Security selected for redemption or purchase, except the unredeemed or unpurchased part thereof if the Security is redeemed or purchased in part, or transfer or exchange any Securities for a period of 15 days before a selection of Securities to be redeemed or purchased.

 

7.                                      Persons Deemed Owners.  The registered Holder of this Security shall be treated as the owner of it for all purposes.

 

8.                                      Unclaimed Money.  Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay to the Company upon written request any money held by them for the payment of principal or interest that remains unclaimed for two years, and thereafter, Holders entitled to the money must look to the Company for payment as general creditors.

 

9.                                      Amendment, Supplement, Waiver.  Subject to certain exceptions, the Indenture or the Securities may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by the amendment and any past default or compliance with any provision relating to any Series of the Securities may be waived in a particular instance with the consent of the Holders of a majority in principal amount of the outstanding Securities of such Series.(6)  Without the consent of any Securityholder, the Company and the Trustee may amend or supplement the Indenture or the Securities in certain respects as specified in the Indenture.

 

10.                               Successor Corporation.  When a successor corporation assumes all the obligations of its predecessor under the Securities and the Indenture, the predecessor corporation will be released from those obligations.

 

11.                               Trustee Dealings With Company.  Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its affiliates, and may otherwise deal with the Company or its affiliates, as if it were not Trustee, including owning or pledging the Securities.

 

(3)         If applicable.

 

(4)         Insert applicable denominations and multiples.

 

(5)         Insert applicable denominations and multiples.

 

(6)         If different terms apply, insert a brief summary thereof.

 

A-3

 

12.                               No Recourse Against Others.  A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of, such obligations or their creation.  Each Holder by accepting a Security waives and releases all such liability.  The waiver and release are part of the consideration for the issue of the Securities.  The waiver may not be effective to waive liabilities under the federal securities laws.

 

13.                               Discharge of Indenture.  The Indenture contains certain provisions pertaining to defeasance and discharge, which provisions shall for all purposes have the same effect as if set forth herein.

 

14.                               Authentication.  This Security shall not be valid until an authorized signatory of the Trustee signs the certificate of authentication on the other side of this Security.

 

15.                               Abbreviations.  Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= custodian), and U/G/M/A (= Uniform Gift to Minors Act).

 

16.                               GOVERNING LAW.  THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

17.                               CUSIP and ISIN Numbers.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP and ISIN numbers to be printed on the Securities and has directed the Trustee to use CUSIP and ISIN numbers in notices of repurchase as a convenience to Holders.  No representation is made as to the accuracy of such numbers either as printed on the Securities or as contained in any notice of repurchase and reliance may be placed only on the other identification numbers placed thereon.

 

18.                               Copies.  The Company will furnish to any Holder upon written request and without charge a copy of the Indenture and the applicable Authorizing Resolution or supplemental indenture.  Requests may be made to: Everi Holdings Inc.,  7250 S. Tenaya Way, Suite 100, Las Vegas, Nevada, 89113, (800) 833-7110, Attention: General Counsel.

 

A-4

 

ASSIGNMENT FORM

 

If you the Holder want to assign this Security, fill in the form below:

 

I or we assign and transfer this Security to                                                           (insert assignee’s social security or tax ID number)

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
(Print   or type assignee’s name, address, and zip code)
    	
 
    

 

and irrevocably appoint                                                                           agent to transfer this Security on the books of the Company.  The agent may substitute another to act for him.

 

	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
Your   signature
    
	
 
    	
(Sign   exactly as your name appears on the other side of this Security)
    
				

 

	
Signature   Guarantee:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

A-5Exhibit 4.6

 

EXECUTION VERSION

CREDIT AGREEMENT

 

by and among

 

SUPERCOM INC.,

as Borrower,

 

SUPERCOM LTD.,

as Parent,

 

SUPERCOM IP LLC,

as SPE Guarantor,

 

and

 

DBFIP SCL LLC,

as Lender

 

September 6, 2018

 

     

     

    

 

TABLE OF CONTENTS 

 

	 	Page
	 	 
	ARTICLE I.           DEFINITIONS AND ACCOUNTING TERMS	1
	 	 	 
	SECTION 1.01.	Defined Terms	1
	SECTION 1.02.	Other Interpretative Provisions	25
	SECTION 1.03.	Accounting Terms	26
	SECTION 1.04.	Rounding	26
	 	 	 
	ARTICLE II.          LOANS AND TERMS OF PAYMENT	27
	 	 	 
	SECTION 2.01.	Term Loans	27
	SECTION 2.02.	Interest; Fees; Payments	31
	SECTION 2.03.	Taxes	32
	SECTION 2.04.	Special LIBOR Provisions	35
	SECTION 2.05.	Incremental Term Loans	36
	 	 	 
	ARTICLE III.         CONDITIONS OF TERM LOANS	36
	 	 	 
	SECTION 3.01.	Initial Term Loan	36
	SECTION 3.02.	Delayed Draw Term Loan	39
	SECTION 3.03.	Incremental Term Loans	40
	 	 	 
	ARTICLE IV.         WARRANT	41
	 	 	 
	SECTION 4.01.	Warrant to Purchase Shares	41
	 	 	 
	ARTICLE V.          COLLATERAL	41
	 	 	 
	SECTION 5.01.	Security Interest in Collateral	41
	 	 	 
	ARTICLE VI.         REPRESENTATIONS AND WARRANTIES	41
	 	 	 
	SECTION 6.01.	Existence, Qualification and Power	41
	SECTION 6.02.	Authorization; No Contravention	41
	SECTION 6.03.	Governmental Authorization; Other Consents	41
	SECTION 6.04.	Binding Effect	42
	SECTION 6.05.	Financial Statements; No Material Adverse Effect	42
	SECTION 6.06.	Litigation	42
	SECTION 6.07.	No Default	42
	SECTION 6.08.	Ownership of Property; Liens	42
	SECTION 6.09.	Environmental Compliance	42
	SECTION 6.10.	Insurance	43
	SECTION 6.11.	Taxes	43
	SECTION 6.12.	ERISA Compliance	43
	SECTION 6.13.	Subsidiaries; Equity Interests	44
	SECTION 6.14.	Margin Regulations; Investment Company Act	44
	SECTION 6.15.	Disclosure	44

 

    i

     

    

 

	SECTION 6.16.	Compliance with Laws	44
	SECTION 6.17.	Intellectual Property	44
	SECTION 6.18.	Rights in Collateral; Priority of Liens	46
	SECTION 6.19.	Solvency	46
	SECTION 6.20.	Business Locations; Taxpayer Identification Number	46
	SECTION 6.21.	Collateral	46
	SECTION 6.22.	Patriot Act; Sanctions; Export Controls; FCPA	46
	 	 	 
	ARTICLE VII.       AFFIRMATIVE COVENANTS	48
	 	 	 
	SECTION 7.01.	Compliance with Laws	48
	SECTION 7.02.	Financial Statements	48
	SECTION 7.03.	Certificates; Other Information	48
	SECTION 7.04.	Notices	49
	SECTION 7.05.	Payment of Obligations	49
	SECTION 7.06.	Books and Records	50
	SECTION 7.07.	Inspection Rights	50
	SECTION 7.08.	Litigation Cooperation	50
	SECTION 7.09.	Use of Proceeds	50
	SECTION 7.10.	Preservation of Existence, Etc.	50
	SECTION 7.11.	Maintenance of Properties	50
	SECTION 7.12.	Formation or Acquisition of Subsidiaries	51
	SECTION 7.13.	Insurance	51
	SECTION 7.14.	Further Assurances	52
	SECTION 7.15.	SPE Compliance	52
	SECTION 7.16.	Post-Closing Obligations	52
	SECTION 7.17.	Financial Covenants	52
	SECTION 7.18.	Patents and Patent Rights	53
	 	 	 
	ARTICLE VIII.      NEGATIVE COVENANTS	54
	 	 	 
	SECTION 8.01.	Dispositions	54
	SECTION 8.02.	Changes in Business, Management, Ownership, or Business Locations	54
	SECTION 8.03.	Mergers or Acquisitions	55
	SECTION 8.04.	Liens	55
	SECTION 8.05.	Distributions; Investments	55
	SECTION 8.06.	Transactions with Affiliates	55
	SECTION 8.07.	Subordinated Debt	55
	SECTION 8.08.	Compliance	55
	SECTION 8.09.	Indebtedness	56
	SECTION 8.10.	Amendments to Organization Documents, Patent Assignment Agreement or Patent License Agreement	56
	SECTION 8.11.	Sanctions	56
	 	 	 
	ARTICLE IX.         EVENTS OF DEFAULT.	56
	 	 	 
	SECTION 9.01.	Events of Default	56

 

    ii

     

    

 

	ARTICLE X.          LENDER’S RIGHTS AND REMEDIES	59
	 	 	 
	SECTION 10.01.	Rights and Remedies	59
	SECTION 10.02.	Power of Attorney	62
	SECTION 10.03.	Protective Payments	62
	SECTION 10.04.	Application of Payments and Proceeds Upon Default	63
	SECTION 10.05.	No Waiver; Remedies Cumulative	63
	 	 	 
	ARTICLE XI.         NOTICES	63
	 	 	 
	ARTICLE XII.       GOVERNING LAW. SUBMISSION TO JURISDICTION. JURY TRIAL WAIVER. AND JUDICIAL REFERENCE	64
	 	 	 
	SECTION 12.01.	Governing Law; Submission to Jurisdiction	64
	SECTION 12.02.	Jury Trial Waiver	65
	SECTION 12.03.	Additional Waivers in the Event of Enforcement	65
	 	 	 
	ARTICLE XIII.      GENERAL PROVISIONS	65
	 	 	 
	SECTION 13.01.	Successors and Assigns	65
	SECTION 13.02.	Costs and Expenses; Indemnification	65
	SECTION 13.03.	Time of Essence	66
	SECTION 13.04.	Severability of Provisions	66
	SECTION 13.05.	Amendments in Writing; Waiver; Integration	67
	SECTION 13.06.	Counterparts	67
	SECTION 13.07.	Survival	67
	SECTION 13.08.	Confidentiality	67
	SECTION 13.09.	Electronic Execution of Documents	68
	SECTION 13.10.	Register	68
	SECTION 13.11.	Participant Register	68
	SECTION 13.12.	Captions	69
	SECTION 13.13.	Construction of Agreement	69
	SECTION 13.14.	Relationship	69
	SECTION 13.15.	Third Parties	69
	SECTION 13.16.	Payments Set Aside	69
	SECTION 13.17.	Right of Setoff	69
	SECTION 13.18.	Interest Rate Limitation	69
	SECTION 13.19.	Securitization of Loans; Appointment of Agent	70
	SECTION 13.20.	Certain Tax Matters	70

 

	SCHEDULES	 	 
	Schedule 1.1(a):	 	Alvarion Patents
	Schedule 1.1(b):	 	Collateral
	Schedule 1.1(c):	 	Permitted Indebtedness
	Schedule 1.1(d):	 	Permitted Investments
	Schedule 1.1(e):	 	Permitted Liens
	Schedule 1.1(f):	 	Non-Assigned Patents
	Schedule 6.03:	 	Governmental Authorization; Other Consents
	Schedule 6.05:	 	Financial Statements; No Material Adverse Effect

 

    iii

     

    

 

	Schedule 6.06:	 	Litigation
	Schedule 6.13:	 	Subsidiaries; Equity Interests
	Schedule 6.17:	 	Intellectual Property
	Schedule 6.20:	 	Business Locations; Taxpayer Identification Number
	Schedule 7.16:	 	Post-Closing Obligations
	 	 	 
	EXHIBITS	 	 
	Exhibit A:	 	Compliance Certificate
	Exhibit B:	 	Guaranty
	Exhibit C:	 	Patent Assignment Agreement
	Exhibit D:	 	Patent License Agreement (Fortress)
	Exhibit E:	 	Patent License Agreement (Loan Parties)
	Exhibit F:	 	Perfection Certificate
	Exhibit G:	 	Warrant
	Exhibit H:	 	[Intentionally Omitted]
	Exhibit I:	 	Security Agreement
	Exhibit J:	 	Conduct of Business Provisions
	Exhibit K:	 	Initial Term Loan Request
	Exhibit L:	 	Delayed Draw Term Loan Request
	Exhibit M:	 	Alvarion Valuation
	Exhibit N-1:	 	Form of U.S. Tax Compliance Certificate
	Exhibit N-2:	 	Form of U.S. Tax Compliance Certificate
	Exhibit N-3:	 	Form of U.S. Tax Compliance Certificate
	Exhibit N-4:	 	Form of U.S. Tax Compliance Certificate

 

    iv

     

    

 

CREDIT AGREEMENT

 

THIS CREDIT AGREEMENT
(as amended, restated, amended and restated, supplemented or otherwise modified from time to time, this “Agreement”)
entered into as of September 6, 2018, among DBFIP SCL LLC, a Delaware limited liability company (“Lender”),
SUPERCOM INC., a Delaware corporation (“Borrower”), SuperCom Ltd., an Israeli company (“Parent”)
and SUPERCOM IP LLC, a Nevada limited liability company (“SPE Guarantor”).

 

WITNESSETH

 

WHEREAS, (i)
on the Closing Date, Borrower has requested that Lender extend credit in the form of the Initial Term Loan (as defined herein)
in an aggregate principal amount of $10,000,000 and (ii) on each Increased Amount Date (as defined herein), Borrower may request
that Lender extend credit in the form of an Incremental Term Loan (as defined herein) in an aggregate additional principal amount
of up to $10,000,000, in each case upon the terms and conditions set forth in this Agreement.

 

NOW THEREFORE,
in consideration of the premises and mutual agreements and subject to the terms and conditions set forth herein, and intending
to be legally bound hereby, the parties agree as follows:

 

ARTICLE
I.   DEFINITIONS AND ACCOUNTING TERMS

 

SECTION 1.01.                      
Defined Terms. As used in this Agreement, the following terms shall have the meanings set forth below:

 

“II-A Funded
Know-How” means Intellectual Property that was developed with the support of, or from grants, incentives (including tax
incentives) or subsidies from, the Israeli National Authority for Technological Innovation (formerly known as the Office of the
Chief Scientist of the Israeli Ministry of the Economy) or any successor Governmental Authority.

 

“Affiliate”
means, as applied to any Person (the “Specified Person”), any other Person directly or indirectly controlling,
controlled by, or under common control with, the Specified Person. For the purposes of this definition, “control” (including,
with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”),
as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of the Specified Person, whether through the ownership of voting securities or by contract or otherwise.

 

“Alvarion
Patents” means those Patents set forth on Schedule 1.1(a).

 

“Alvarion
Patent Dispositions” means any Transfer by Borrower of any Alvarion Patent so long as: (a) the consideration received
by Borrower in respect of the Alvarion Patent(s) being transferred is no less than 50% of the value attributed to such Alvarion
Patent(s) in the Alvarion Valuation; and (b) 80% of the consideration received by the Borrower in respect of such Alvarion Patent(s)
is paid in cash by the buyer.

 

“Alvarion
Valuation” means that certain third-party valuation of the Alvarion Patents in form and substance acceptable to the Lender
and attached hereto as Exhibit M.

 

“Agreement”
is defined in the preamble.

 

     

     

    

 

“Applicable
Margin” means(a) with respect to Term Loans that are LIBO Rate Loans, (i) from the Closing Date until (A) the date of
delivery of the Compliance Certificate and the financial statements for the period ending December 31, 2018 or (ii) the date of
the first Adjustment Event (as defined below), a percentage, per annum, equal to 8.00%; and (B) thereafter, a percentage, per annum,
determined by reference to the EBITDA Leverage Ratio in effect from time to time as set forth below:

 

	EBITDA Leverage

 Ratio	 	Applicable Margin	 
	Greater than or equal to 2.50:1.00	 	 	8.00	%
	Less than2.50:1.00	 	 	7.00	%

 

and (b) with respect to Term Loans that
are Base Rate Loans, an amount equal to (a) the Applicable Margin for LIBO Rate Loans as set forth in clause (a)(i) or (b)(i) above,
as applicable, minus (b) 1.00% per annum. With respect to changes in the Applicable Margin resulting from the delivery of the applicable
financial statements, no change in the Applicable Margin shall be effective until three Business Days after the date on which Lender
shall have received the applicable financial statements and a Compliance Certificate calculating the EBITDA Leverage Ratio pursuant
to Section 7.03(b). With respect to changes in the Applicable Margin arising from changes in the EBITDA Leverage Ratio due
to the Borrower’s payment of the Term Loans or additional borrowings hereunder (including prior to the initial delivery of
financial statements pursuant to Section 7.02(b) after the Closing Date), any such change shall be effective one Business
Day following the effective date of any applicable Term Loan Request with respect to any borrowing and/or delivery of any Compliance
Certificate in connection with any payment of the Term Loans, and such Term Loan Request or Compliance Certificate, as applicable,
shall include a calculation of the EBITDA Leverage Ratio at such time (each, an “Adjustment Event”). At any
time Borrower has not submitted to Lender the applicable information as and when required under Section 7.03(b) or the Term
Loan Request or the Compliance Certificate, as applicable, the Applicable Margin shall be determined as if the Leverage Ratio were
greater than or equal to 2.50:1.00. Without limitation of any other provision of this Agreement or any other remedy available to
Lender contained in any Compliance Certificate delivered pursuant to Section 7.03(b)or the calculation of the EBITDA Leverage
Ratio as set forth in the Funding Notice or Compliance Certificate, as applicable, delivered in connection with an Adjustment Event
shall be incorrect in any manner and Borrower or any other Loan Party shall deliver to Lender corrected financial statements or
other corrected information in a Funding Notice or Compliance Certificate (or otherwise), Lender may recalculate the Applicable
Margin based upon such corrected financial statements or such other corrected information, and, upon written notice thereof to
Borrower, the Term Loans shall bear interest based upon such recalculated Applicable Margin retroactively from the date of delivery
of the erroneous financial statements or other erroneous information in question.

 

“Applicable
Prepayment Premium” means as of any date of determination an amount equal to (A) during the period from and after the
Closing Date up to and including the date that is the first anniversary of the Closing Date, 4.0% times the principal balance of
the Obligations prepaid on such date, (B) during the period from and after the date that is the first day after the first anniversary
of the Closing Date up to and including the date that is the second anniversary of the Closing Date, 2.5% times the amount of the
principal balance of the Obligations prepaid on such date, and (C) during the period from and after the date that is the first
day after the second anniversary of the Closing Date until the date that is the day immediately preceding the Maturity Date, 1.5%
times the amount of the principal balance of the Obligations prepaid on such date.

 

    2

     

    

 

“Asset Disposition”
means any Transfer of the type described in Section 8.01(b)(iv) or (vii) or any other Transfer not permitted hereunder.

 

“Assigned
Patent Rights” means all of the following, whether now owned or hereafter acquired or arising:

 

(a)               
all Assigned Patents;

 

(b)               
all patents and patent applications: (i) to which any of the Assigned Patents directly or indirectly claims priority; or
(ii) for which any of the Assigned Patents directly or indirectly forms a basis for priority;

 

(c)               
all reissues, reexaminations, extensions, renewals, continuations, continuations in part, continuing prosecution applications,
requests for continuing examinations, and divisionals of any item in any of the foregoing categories (a) and (b);

 

(d)               
all foreign patents, patent applications, and counterparts relating to any item in any of the foregoing categories (a) through
(c), including certificates of invention, utility models, industrial design protection, design patent protection, and other governmental
grants or issuances;

 

(e)               
all items in any of the foregoing in categories (b) through (d), whether or not expressly listed on Schedule 6.17
and whether or not claims in any of the foregoing have been rejected, withdrawn, cancelled, or the like;

 

(f)                
inventions, invention disclosures, and discoveries described in any of the Assigned Patents or any item in the foregoing
categories (b) through (e) that: (i) are included in any claim in the Assigned Patents or any item in the foregoing categories
(b) through (e); (ii) are subject matter capable of being reduced to a patent claim in a reissue or reexamination proceeding brought
on any of the Assigned Patents or any item in the foregoing categories (b) through (e); or (iii) could have been included as a
claim in any of the Assigned Patents or any item in the foregoing categories (b) through (e);

 

(g)               
all rights to apply in any or all countries of the world for Patents or other governmental grants or issuances of any type
related to any item in any of the foregoing categories (a) through (f), including under the Paris Convention for the Protection
of Industrial Property, the International Patent Cooperation Treaty, or any other convention, treaty, agreement, or understanding;

 

(h)               
all Assigned Trade Secrets;

 

(i)                
all causes of action (whether known or unknown or whether currently pending, filed, or otherwise) and other enforcement
rights under, or on account of, any of the Assigned Patents or Assigned Trade Secrets or any item in any of the foregoing categories
(b) through (g), including all causes of action and other enforcement rights for (i) damages; (ii) injunctive relief, and (iii)
any other remedies of any kind for past, current, and future infringement, misappropriation or other violation; and

 

(j)                
all rights to collect income, royalties, damages and other payments due or payable under or with respect to any of the Assigned
Patents or Assigned Trade Secrets or any item in any of the foregoing categories (b) through (h).

 

    3

     

    

 

“Assigned
Patents” means all Patents (a) issued to, or for which applications are pending in the name of, Parent or any Subsidiary,
and assigned to SPE Guarantor in accordance with the Patent Assignment Agreement, including the Patents listed on Schedule 6.17
or (b) that are hereafter acquired by, or filed in the name of, Parent, Borrower or any Material Subsidiary, including Patents
that are the subject of Section 7.18, but in each case excluding the Alvarion Patents.

 

“Assigned
Trade Secrets” means all Trade Secrets (a) owned by Parent or any Subsidiary and assigned to Borrower in accordance with
the Patent Assignment Agreement or (b) that are hereafter acquired by Parent or any Material Subsidiary that are the subject of
Section 7.18.

 

“Audited Financial
Statements” is defined in Section 7.02(a).

 

“Base Rate”
means for any day (a) the Applicable Margin plus (b) the greatest of (i) the Federal Funds Effective Rate, (ii) the Prime Rate,
(iii) the sum of LIBO Rate in effect immediately prior to the LIBO Rate becoming unavailable plus 1.00% and (iv) 2.00%.

 

“Base Rate
Loan” means a Term Loan at any time which it bears interest at or by reference to the Base Rate in accordance with the
term hereof.

 

“Borrower”
is defined in the preamble.

 

“Business
Combination” means the merger, combination or consolidation of Parent or any of its Subsidiaries with or into any Person
or the sale of all or substantially all of the assets, stock or other evidence of beneficial ownership of Parent.

 

“Business
Day” is any day that is not a Saturday, Sunday or a day on which commercial banks are authorized to close under the Laws
of the State of New York.

 

“Capital Lease”
means, as applied to any Person, any lease of any property (whether real, personal or mixed) by that Person, as lessee that, in
conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person.

 

“Cash Equivalents”
means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State thereof
having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1)
year after its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s Investors
Service, Inc.; (c) certificates of deposit maturing no more than one (1) year after issue; and (d) money market funds at least
ninety-five percent (95.0%) of the assets of which constitute Cash Equivalents of the kinds described in clauses (a) through (c)
of this definition.

 

“CB&T
Loan” means that certain commercial loan account, number 140-07101-0722340-3001, in the name of Leader in Community Alternatives
Incorporated and owing to California Bank and Trust.

 

“CFC”
means any Person that is a “controlled foreign corporation” within the meaning of Section 957 of the Code.

 

    4

     

    

 

“Change of
Control” means the occurrence of any of (a) Sigma Wave Ltd. shall cease to beneficially own and control at least 5% on
a fully diluted basis of the economic and voting Equity Interests of Parent, (b) any Person or “group” (within the
meaning of Rules 13d-3 and 13d-5 under the Exchange Act) other than Sigma Wave Ltd. (i) shall have acquired beneficial ownership
of 20% or more on a fully diluted basis of the voting and/or economic interest in the Equity Interests of Parent or (ii) shall
have obtained the power (whether or not exercised) to elect a majority of the members of the board of directors (or similar governing
body) of Parent, (c) Sigma Wave Ltd. shall cease to hold a number of the board seats representing at least 25% of the total number
of board members of the board of directors of the Parent, (d) Parent shall cease to beneficially own and control 100% on a fully
diluted basis of the economic and voting interest in the Equity Interests of Borrower, (d) the Parent sells or transfers all or
any substantial portion of its assets to another Person (other than a Subsidiary who assumes the Obligations), (e) Borrower ceases
to own at least 99.8% of the Equity Interests of SPE Guarantor, (f) the majority of the occupied seats on the board of directors
(or similar governing body) of Parent cease to be occupied by Persons who either (i) were members of the board of directors of
Parent on the Closing Date, or (ii) were nominated for election by the board of directors of Parent, a majority of whom were directors
on the Closing Date or whose election or nomination for election was previously approved by a majority of such directors or (g)
the occurrence of any event, transaction or circumstance, the result of which is that the role of Chief Executive Officer of the
Parent and the Borrower is held by any person other than Ordan Trabelsi or Arie Trabelsi, unless an interim or permanent successor
reasonably acceptable to Lender is immediately appointed.

 

“Closing Date”
means September 6, 2018.

 

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

 

“Collateral”
means (a) all of the Collateral as defined on Schedule 1.1(b); (b) all products, proceeds, rents and profits of the foregoing;
(c) all of each Loan Party’s books and records related to any of the foregoing; and (d) all of the foregoing, whether now
owned or existing or hereafter acquired or arising or in which any Loan Party now has or hereafter acquires any rights.

 

“Common Stock”
means the common stock, $0.00 par value per share, of the Parent as constituted on the date hereof and any capital stock into which
such common stock shall be exchanged or any capital stock resulting from any reclassification of such common stock.

 

“Compliance
Certificate” means a certificate in the form attached hereto as Exhibit A.

 

“Conduct of
Business Provisions” is defined in Section 3.01(a)(vi).

 

“Consolidated
Adjusted EBITDA” means, for any period, an amount determined for Parent and its Subsidiaries on a consolidated basis
equal to (i)  the sum, without duplication, of the amounts for such period of (a) Consolidated Net Income, plus (b)
Consolidated Interest Expense paid in cash, plus (c) provisions for taxes based on income, plus (d) total depreciation
expense, plus (e) total amortization expense, plus (f) other non-cash items reducing Consolidated Net Income (excluding
any such non-cash item to the extent that it represents an accrual or reserve for potential cash items in any future period or
amortization of a prepaid cash item that was paid in a prior period) plus (g) transaction and transition costs and expenses
in connection with Permitted Acquisitions in an amount not to exceed $250,000 in any trailing twelve month period, minus
(ii) the sum, without duplication of the amounts for such period of (a) other non-cash items increasing Consolidated Net Income
for such period (excluding any such non-cash item to the extent it represents the reversal of an accrual or reserve for potential
cash item in any prior period), plus (b) interest income.

 

“Consolidated
Capital Expenditures” means, for any period, the aggregate of all expenditures of Parent and its Subsidiaries during
such period determined on a consolidated basis that, in accordance with GAAP, are or should be included in “purchase of property
and equipment or which should otherwise be capitalized” or similar items reflected in the consolidated statement of cash
flows of Parent and its Subsidiaries.

 

    5

     

    

 

“Consolidated
Cash Interest Expense” means, for any period, Consolidated Interest Expense for such period based upon GAAP, excluding
any paid-in-kind interest, amortization of deferred financing costs, and any realized or unrealized gains or losses attributable
to Hedging Contracts.

 

“Consolidated
Current Assets” means, as at any date of determination, the total assets of Parent and its Subsidiaries on a consolidated
basis that may properly be classified as current assets in conformity with GAAP, excluding cash and Cash Equivalents.

 

“Consolidated
Current Liabilities” means, as at any date of determination, the total liabilities of Parent and its Subsidiaries on
a consolidated basis that may properly be classified as current liabilities in conformity with GAAP, excluding the current portion
of long term debt.

 

“Consolidated
Excess Cash Flow” means, for any period, an amount (if positive) determined for Parent and its Subsidiaries on a consolidated
basis equal to: (a) the sum, without duplication, of the amounts for such period of (i) Consolidated Adjusted EBITDA, plus
(ii) interest income, plus (iii) other non-ordinary course income (excluding any gains or losses attributable to Asset Dispositions),
plus (iv) the Consolidated Working Capital Adjustment, minus (b) the sum, without duplication, of the amounts for
such period of (i) voluntary and scheduled repayments of Consolidated Total Debt (excluding repayments of revolving loans except
to the extent the related revolving commitments are permanently reduced in connection with such repayments), plus (ii) Consolidated
Capital Expenditures (net of any proceeds of (x) Net Cash Proceeds of Asset Dispositions to the extent reinvested in accordance
with Section 2.01(e)(i)(2), (y) Net Cash Proceeds of insurance or condemnation awards to the extent reinvested in accordance
with Section 2.01(e)(i)(2), and (z) any proceeds of related financings with respect to such expenditures), plus (iii) Consolidated
Cash Interest Expense, plus (iv) provisions for current taxes based on income of Parent and its Subsidiaries and payable
in cash with respect to such period.

 

“Consolidated
Interest Expense” means, for any period, total interest expense (including that portion attributable to Capital Leases
in accordance with GAAP and capitalized interest) of Parent and its Subsidiaries on a consolidated basis with respect to all outstanding
Consolidated Total Debt, including all commissions, discounts and other fees and charges owed with respect to letters of credit
and net costs under Hedging Contracts, but excluding, however, any amounts referred to in Section 2.01(g) payable on or
before the Closing Date.

 

“Consolidated
Net Income” means, for any period, (a) the net income (or loss) of Parent and its Subsidiaries on a consolidated basis
for such period taken as a single accounting period determined in conformity with GAAP, minus (b) the sum of (i) the income
(or loss) of any Person (other than a Subsidiary of Parent) in which any other Person (other than Parent or any of its Subsidiaries)
has a joint interest, plus (ii) the income (or loss) of any Person accrued prior to the date it becomes a Subsidiary of
Parent or is merged into or consolidated with Parent or any of its Subsidiaries or that Person’s assets are acquired by Parent
or any of its Subsidiaries, plus (iii) the income of any Subsidiary of Parent to the extent that the declaration or payment
of dividends or similar distributions by that Subsidiary of that income is not at the time permitted by operation of the terms
of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that
Subsidiary, plus (iv) any gains or losses attributable to Asset Dispositions or returned surplus assets of any Pension
Plan, plus (v) to the extent not included in clauses (i) through (iv) above, any net extraordinary gains
or net extraordinary losses.

 

“Consolidated
Revenue” means, for any Fiscal Quarter an amount equal to the gross revenue of Company and its Subsidiaries on a consolidated
basis for the Fiscal Quarter then ending net of the sum of (i) any discounts, credits or offsets offered to any customer plus
(ii) accounts receivable written-off as a bad debt expense in the Company reported quarterly financial statements.

 

    6

     

    

 

“Consolidated
Total Assets” means, as at any date of determination, the total assets of Parent and its Subsidiaries on a consolidated
basis calculated in accordance with GAAP.

 

“Consolidated
Total Debt” means, as at any date of determination, the aggregate stated balance sheet amount of all Indebtedness of
Parent and its Subsidiaries determined on a consolidated basis in accordance with GAAP.

 

“Consolidated
Working Capital” means, as at any date of determination, the excess or deficiency of Consolidated Current Assets over
Consolidated Current Liabilities.

 

“Consolidated
Working Capital Adjustment” means, for any period of determination on a consolidated basis, the amount (which may be
a negative number) by which Consolidated Working Capital as of the beginning of such period exceeds (or is less than) Consolidated
Working Capital as of the end of such period.

 

“Contractual
Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument
or other undertaking to which such Person is a party or by which it or any of its property is bound.

 

“control”
means “control” as achieved under Section 9-104 of the UCC.

 

“Copyrights”
means all of the following: (a) all copyright rights in any work subject to the copyright laws of the United States or any other
country, whether as author, assignee, transferee or otherwise (including all copyrights in software), (b) all registrations and
applications for registration of copyright in the United States or any other country, including registrations, renewals and pending
applications for registration, (c) all income, royalties, damages and other payments now or hereafter due or payable under and
with respect thereto, including payments under all licenses entered into in connection therewith and damages and payments for past
or future infringements or other violations, and (d) the right to sue for past, present and future infringement or other violation
thereof.

 

“Debtor Relief
Law” means (i) the Bankruptcy Code of the United States, and (ii) all other liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, rehabilitation or
similar debtor relief Laws of the United States, the State of Israel or other applicable jurisdictions from time to time in effect
and affecting the rights of creditors generally (including under the Israeli Insolvency and Rehabilitation Law, 2018).

 

“Debt Service”
means, for any period, the sum of (i) Consolidated Interest Expense of Parent and its Subsidiaries paid in cash plus
(ii) scheduled payments of principal on Consolidated Total Debt, in each case, during such period.

 

“Debt Service
Coverage Ratio” means the ratio, as of the last day of (a) the first fiscal quarter of Parent and its Subsidiaries ending
after the Closing Date, of (i) the sum of (x) Consolidated Adjusted EBITDA for such fiscal quarter plus (y) Unrestricted Cash-on-Hand
as of the last day of such fiscal quarter to (ii) Debt Service for such fiscal quarter, (b) the second fiscal quarter of Parent
and its Subsidiaries ending after the Closing Date, of (i) the sum of (x) Consolidated Adjusted EBITDA for the two-fiscal quarter
period ending on such date plus (y) Unrestricted Cash-on-Hand as of the last day of such two-fiscal quarter period to (ii) Debt
Service for such two-fiscal quarter period, (c) the third fiscal quarter of Parent and its Subsidiaries ending after the Closing
Date, of (i) the sum of (x) Consolidated Adjusted EBITDA for the three-fiscal quarter period ending on such date plus (y)
Unrestricted Cash-on-Hand as of the last day of such three-fiscal quarter period to (ii) Debt Service for such three-fiscal quarter
period and (d) any other fiscal quarter of Parent and its Subsidiaries, of (a) the sum of (x) Consolidated Adjusted EBITDA for
the four-fiscal quarter period ending on such date plus (y) Unrestricted Cash-on-Hand as of the last day of such four-fiscal quarter
period to (b) Debt Service for such four-fiscal quarter period.

 

    7

     

    

 

“Default”
means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time,
the making of a determination or any combination of the foregoing, would be an Event of Default.

 

“Default Rate”
means an interest rate which is 4% per annum in excess of the interest rate otherwise payable hereunder for LIBO Rate Loans.

 

“Delayed Draw
Structuring Fee” is defined in Section 2.01(g)(ii).

 

“Delayed Draw
Term Loan” as defined in Section 2.01(a)(ii).

 

“Delayed Draw
Term Loan Funding Date” means the date upon which all of the conditions set forth in Section 3.02 have been satisfied
or waived in writing by the Lender.

 

“Delayed Draw
Term Loan Note” means a promissory note made by Borrower in favor of Lender evidencing a Delayed Draw Term Loan in form
and substance reasonably acceptable to Lender.

 

“Delayed Draw
Term Loan Request” means a written request for a Delayed Draw Term Loan substantially in the form of Exhibit L.

 

“Deposit Account”
means a “deposit account” as defined in the UCC.

 

“Designated
Jurisdiction” is defined in Section 6.22.

 

“Disqualified
Equity Interests” means Equity Interests that by their terms (or by the terms of any security into which they are convertible
or for which they are exchangeable) (a) require the payment of any cash dividends, (b) mature or are mandatorily redeemable or
subject to mandatory repurchase or redemption or repurchase at the option of the holders thereof, in whole or in part and whether
upon the occurrence of any event, pursuant to a sinking fund obligation, on a fixed date or otherwise, prior to the date that is
365 days after the Maturity Date at such time of then outstanding Term Loans or (c) are convertible or exchangeable, automatically
or at the option of any holder thereof, into any Indebtedness other than Permitted Indebtedness; provided that if such Equity Interests
are issued pursuant to a plan for the benefit of employees of Parent or any Subsidiary or by any such plan to such employees, such
Equity Interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased by such
entity in order to satisfy applicable statutory or regulatory obligations or as a result of such employee’s termination,
death or disability.

 

“Dollars,”
 “dollars” or use of the sign means only lawful money of the United States and not any other currency, regardless
of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful money of
the United States.

 

“EBITDA Leverage
Ratio” means the ratio as of the last day of (a) the first fiscal quarter ending after the Closing Date of (i) the aggregate
outstanding principal amount of the Term Loans as of such day, to (ii) Consolidated Adjusted EBITDA for the three-fiscal quarter
period ending on such date multiplied by 4/3 and (b) for each fiscal quarter thereafter of (i) the aggregate outstanding
principal amount of the Term Loans as of such day, to (ii) Consolidated Adjusted EBITDA for the four-fiscal quarter period ending
on such date.

 

    8

     

    

 

“Early Termination
Liability Proceeds” means the aggregate cash proceeds received by Parent or any of its Subsidiaries in connection with
the termination by a customer of such Person of any contract to which such customer is a party prior to the scheduled expiration
or termination date of such contract, whether in the form of an early termination fee, penalty, make-whole payment or otherwise,
net of the reasonable direct, out-of-pocket, costs, expenses and fees relating to such termination.

 

“End of Term
Fee Event” has the meaning set forth in Section 2.01(f)(i).

 

“End of Term
Fee” means (a) in the event that the Obligations are paid in full on or prior to the date that is the two-year anniversary
of the Closing Date, an end of term fee equal to [●]% of the sum of (i) the aggregate initial drawn principal amount of the
Initial Term Loan plus (ii) the aggregate initial drawn principal amount of the Delayed Draw Term Loan plus (iii)
the aggregate initial drawn principal amount of any Incremental Term Loans and (b) thereafter, an end of term fee equal to [●]%
of the sum of (i) the aggregate initial drawn principal amount of the Initial Term Loan, plus (ii) the aggregate initial
drawn principal amount of the Delayed Draw Term Loan plus (iii) the aggregate drawn principal amount of any Incremental
Term Loans.

 

“Environmental
Laws” means any and all current or future Laws, or any other requirements of Governmental Authorities relating to (a)
environmental matters, or (b) occupational safety and health, industrial hygiene, land use or the protection of human, plant or
animal health or welfare, in any manner applicable to Parent or any of its Subsidiaries or any facility owned, leased or operated
by Parent or any of its Subsidiaries.

 

“Environmental
Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of the Borrower, any other Loan Party or any of their respective Subsidiaries directly
or indirectly resulting from or based upon (a) violation of any Environmental Law; (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials; (c) exposure to any Hazardous Materials; (d) the release or threatened
release of any Hazardous Materials into the environment; or (e) any contract, agreement or other consensual arrangement pursuant
to which liability is assumed or imposed with respect to any of the foregoing.

 

“Equity Interests”
means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person,
all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or
other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital
stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition
from such Person of such securities convertible into or exchangeable for shares of capital stock (or such other interests), and
all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether
voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of
determination.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, and its regulations.

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) under common control with the Parent or the Borrower within the meaning
of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412
of the Code).

 

    9

     

    

 

“ERISA Event”
means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by Parent, the Borrower or any ERISA Affiliate from
a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section
4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete
or partial withdrawal by Parent, the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer
Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination
under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer
Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title W of ERISA,
other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon Parent, the Borrower or any ERISA Affiliate.

 

“Event of
Default” is defined in Section 9.01.

 

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

 

“Excluded
Taxes” means any of the following Taxes imposed on or with respect to Lender or required to be withheld or deducted from
a payment to Lender, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits
Taxes, in each case, (i) imposed as a result of Lender being organized under the laws of, or having its principal office located
in, the jurisdiction imposing such Tax (or any political subdivision thereof), or (ii) that are Other Connection Taxes; (b) U.S.
federal withholding Taxes imposed on amounts payable to or for the account of Lender (including any successor to Lender or to the
rights of Lender under this Agreement) as a result of Lender designating a new lending office or assigning its interests or rights
under this Agreement, except, in each case, to the extent Lender was entitled, as the time of designation or assignment became
effective, to receive additional amounts under Section 2.03; (c) Taxes attributable to Lender’s failure to comply
with Section 2.03(e): and (d) any U.S. federal withholding Taxes imposed under the Foreign Account Tax Compliance Act (“FACTA”)
as a result of Lender not being in compliance with FACTA or Lender failing to provide Borrower with all forms reasonably requested
by Borrower establishing an exemption from U.S. federal withholding Taxes imposed under FACTA. Notwithstanding the above, in no
event shall any Taxes imposed on any payments made by the Israeli Loan Parties under the Loan Documents be ‘Excluded Taxes’
for the purposes of this definition.

 

“Executive
Order” is defined in Section 6.22.

 

“Export Control
Regulations” means the Export Administration Act, the Arms Export Control Act, the Export Administration Regulations
and the International Traffic in Arms Regulations, the Israeli Import and Export Order (Control of Dual-Use Goods, Services and
Technology), 2006, the Israeli Defense Export Control Law, 2007, each as amended from time to time, and any similar law or regulation
applicable to the operations or activities of Parent or any Subsidiary in any jurisdiction.

 

“FACTA”
is defined in the definition of “Excluded Taxes”.

 

“FCPA”
shall mean the Foreign Corrupt Practices Act of 1977 (as amended from time to time).

 

“Federal Funds
Effective Rate” means for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the
next higher 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the
Business Day next succeeding such day; provided, (i) if such day is not a Business Day, the Federal Funds Rate for such
day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business
Day, and (ii) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be
the average rate charged to JPMorgan Chase Bank, N.A. or any other financial institution selected by Lender on such day on such
transactions as determined by Lender.

 

    10

     

    

 

“GAAP”
means United States generally accepted accounting principles applied on a consistent basis.

 

“Governmental
Authority” means any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory organization.

 

“Guarantor”
means any Person that executes and delivers a Guaranty, or becomes a party to a Guaranty by joinder or otherwise.

 

“Guaranty”
means a Guaranty and Suretyship Agreement by Parent and the other Guarantors substantially in the form attached hereto as Exhibit
B individually or collectively, as the case may be.

 

“Hazardous
Materials” means all flammable explosives, radioactive materials, hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.

 

“Hedging Contract”
means any rate or currency swap, cap or collar agreement or any other agreement designed to hedge risk with respect to interest
rate or currency fluctuations, whether or not pursuant to any master agreement.

 

“Historical
Financial Statements” means, as of the Closing Date, (a) the audited financial statements of Parent and its Subsidiaries,
for the fiscal years ended December 31, 2017, consisting of balance sheets and the related consolidated statements of income, stockholders'
equity and cash flows for such fiscal year, and (b) for the interim period from January 1, 2018, to the Closing Date, internally
prepared, unaudited financial statements of Parent and its Subsidiaries, consisting of a balance sheet and the related consolidated
statements of income, stockholders' equity and cash flows for each quarterly period completed prior to 45 days before the Closing
Date and for each monthly period completed prior to 45 days prior to the Closing Date, in the case of clauses (a) and (b),
certified by the chief financial officer of Parent (solely in his or her capacity as an officer and not individually) and that
they fairly present, in all material respects, the financial condition of Parent and its Subsidiaries as at the dates indicated
and the results of their operations and their cash flows for the periods indicated, subject, if applicable, to changes resulting
from audit and normal year-end adjustments.

 

“Increased
Amount Date” is defined in Section 2.05(a).

 

“Incremental
Structuring Fee” is defined in Section 2.01(g)(iii).

 

“Incremental
Term Loan Request” is defined in Section 2.05(a).

 

“Incremental
Term Loans” is defined in Section 2.05(a).

 

    11

     

    

 

“Indebtedness”
means, as applied to any Person, (a) all indebtedness for borrowed money, (b) that portion of obligations with respect to Capital
Leases which is properly classified as a liability on a balance sheet in conformity with GAAP, (c) notes payable and drafts accepted
representing extensions of credit whether or not representing obligations for borrowed money, (d) any obligation owed for all or
any part of the deferred purchase price of property or services (other than trade accounts payable arising in the ordinary course
of business for which payment is due and is made within 90 days or less), (e) all indebtedness secured by any Lien on any property
or asset owned or held by that Person regardless of whether the indebtedness secured has been assumed by that Person or is nonrecourse
to the credit of that Person, (f) obligations in respect of letters of credit, (g) obligations under Hedging Contracts (the amount
of which shall be determined by reference to the termination cost on the date of determination), (h) Disqualified Equity Interests
and (i) guarantees of, or similar obligations with respect to, any of the foregoing of any other Person.

 

“Indemnified
Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of
any obligation of a Loan Party under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.

 

“Indemnitee”
is defined in Section 13.02(b).

 

“Initial Structuring
Fee” is defined in Section 2.01(g)(i).

 

“Initial Term
Loan” as defined in Section 2.01(a)(i).

 

“Initial Term
Loan Request” means a written request for the Initial Term Loan substantially in the form of Exhibit K.

 

“Initial Term
Loan Note” means a promissory note made by Borrower in favor of Lender evidencing an Initial Term Loan in form and substance
reasonably acceptable to Lender.

 

“Insolvency
Proceeding” means any proceeding under any Debtor Relief Law.

 

“Intellectual
Property” means all Copyrights, Patents, Trademarks and Trade Secrets.

 

“Interest
Period” means any period commencing on the 1st day of a calendar month and ending on the 1st day of the following month;
provided that the first Interest Period shall be from the Closing Date to October 1, 2018.

 

“Inventory”
is all “inventory” as defined in the UCC in effect on the date hereof with such additions to such term as may hereafter
be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work
in process and finished products, including without limitation such inventory as is temporarily out of a Loan Party’s custody
or possession or in transit and including any returned goods and any documents of title representing any of the above.

 

“Investment”
means any beneficial ownership interest in any Person (including Equity Interests and other securities), and any loan, advance
or capital contribution to any Person.

 

“IRS”
means the United States Internal Revenue Service.

 

“Israeli IP
Fixed Charge” means, collectively, (i) the fixed charge over Israeli intellectual property dated as of the Delayed Draw
Term Loan Funding Date made by Parent in favor of Lender, in form and substance satisfactory to the Lender, (ii) the fixed charge
over Israeli intellectual property dated as of the Delayed Draw Term Loan Funding Date made by Safend Ltd. in favor of Lender,
in form and substance satisfactory to the Lender and (iii) the fixed charge over Israeli intellectual property dated as of the
Delayed Draw Term Loan Funding Date made by Alvarion Technologies Ltd. in favor of Lender, in form and substance satisfactory to
the Lender.

 

    12

     

    

 

“Israeli Floating
Charge” means each Israeli security agreement/debenture, dated as of the Delayed Draw Term Loan Funding Date, in relation
to a floating charge over all assets of the Parent and each Israeli Subsidiary dated as of the date hereof granted by Parent and
each Israeli Subsidiary in favor of the Lender, in form and substance satisfactory to the Lender.

 

“Israeli Security
Documents” means, collectively, each Israeli IP Fixed Charge, each Israeli Floating Charge and each Israeli Share Charge.

 

“Israeli Share
Charge” means each Israeli-law share charge, dated as of the Delayed Draw Term Loan Funding Date, made by Parent in favor
of Lender in respect of its equity interests in each Israeli Subsidiary, in form and substance satisfactory to the Lender.

 

“Israeli Subsidiary”
means each Subsidiary of Parent formed under the laws of the State of Israel.

 

“Israeli Anti-Terror
Laws” means the Israeli Prohibition on Money Laundering Law, the Israel Trading with the Enemy Ordinance 1939, the Defense
(Emergency) Regulations, 1945, the Combating Criminal Organizations Law, 2003, the Israel Combating Terrorism Law 2016, and the
Law for the Prevention of Distribution and Financing of Weapons of Mass Destruction, 2018.

 

“Knowledge”
means, with respect to any Person, the actual knowledge of executive officers (as defined in Rule 405 under the Securities Act)
of such Person, after due inquiry.

 

“Laws”
means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances,
codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental
Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed
duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether
or not having the force of law.

 

“Lender”
is defined in the preamble, and includes any assignee and/or successor of DBFIP SCL LLC.

 

“Lender Expenses”
means all reasonable fees and costs and expenses (including attorneys’ fees and audit fees and expenses) incurred by Lender
for preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including those incurred in connection
with appeals, workouts, restructuring or Insolvency Proceedings) or otherwise incurred by Lender in its capacity as such.

 

“Liabilities”
is defined in Section 13.19.

 

“LIBO Rate”
means for an Interest Period, the greater of (a) (i) the LIBOR Index Rate for such Interest Period, if such rate is available,
and (ii) if the LIBOR Index Rate cannot be determined, the arithmetic average of the rates of interest per annum (rounded upwards,
if necessary, to the nearest 1/100 of 1%) at which deposits in Dollars in immediately available funds are offered to the Lender
at 11:00 a.m. (London, England time) two (2) Business Days before the beginning of such Interest Period by three (3) or more major
banks in the interbank Eurodollar market selected by the Lender for delivery on the first day of and for a period equal to such
Interest Period and in an amount equal or comparable to the principal amount of the Term Loans and (b) 1.00%.

 

    13

     

    

 

“LIBO Rate
Loan” means a Term Loan at any time which bears interest at or by reference to the LIBO Rate in accordance with the term
hereof.

 

“LIBOR Index
Rate” means, for any Interest Period, the offered rate per annum (rounded upwards, if necessary, to the next higher one
hundred-thousandth of a percentage point) for deposits in U.S. Dollars for a period equal to such Interest Period, which appears
in the ICE Benchmark Administration (or any successor service or entity that has been authorized by the U.K. Financial Conduct
Authority to administer the LIBOR Index Rate) for deposits in US dollars (as set forth by any service selected by the Lender that
has been nominated by the ICE Benchmark Administration as an authorized vendor for the purpose of displaying such rates) as of
11:00 a.m. (London, England time) on the day two (2) Business Days before the commencement of such Interest Period.

 

“Licenses”
shall mean all licenses and any other agreement granting any right (or under which any Person agrees to refrain from exercising
any right, including any covenant not to sue) with respect to any Intellectual Property (whether a Person is the grantor or grantee
thereunder).

 

“Lien”
means any lien, mortgage, deed of trust, pledge, security interest, charge or encumbrance of any kind (including any conditional
sale or other title retention agreement, any lease in the nature thereof, and any agreement to give any security interest).

 

“Loan Documents”
means this Agreement, the Notes, the Warrant, the Perfection Certificate, each Guaranty, the Security Documents, the Patent Assignment
Agreement, each Compliance Certificate, the Patent License Agreement (Fortress), the Patent License Agreement (Loan Parties) and
any other present or future agreement by a Loan Party for the benefit of Lender in connection with this Agreement, all as amended,
restated, or otherwise modified.

 

“Loan Parties”
means, collectively, Borrower, Parent and each Guarantor.

 

“Management
Loans” has the meaning set forth in Section 7.09.

 

“Material
Adverse Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business,
properties, prospects or condition (financial or otherwise) of the Parent and its Subsidiaries taken as a whole; (b) a material
impairment of the ability of any Loan Party to perform its obligations under the Loan Document to which it is a party; (c) a material
impairment in the perfection or priority of Lender’s Lien in the Collateral; or (d) a material adverse effect upon the legality,
validity, binding effect or enforceability against any Loan Party of any Loan Document to which it is a party (as represented in,
and subject to the qualifications contained in, Section 6.04).

 

“Material
Adverse Loan Impact” means, on any date of determination with respect to the occurrence of any event, after giving effect
to the financial impact of such event, the ratio of (a) the aggregate outstanding principal amount of the Term Loans as of such
day to (b) the sum of (i) Consolidated Adjusted EBITDA for the four-fiscal quarter period most recently ended for which the Compliance
Certificate has been delivered to the Lender pursuant to Section 7.03(b), plus (ii) the amount of Unrestricted Cash-On-Hand
as of such day minus (iii) the amount of actual or projected (as reasonably determined in good faith by the Lender) damages
(including penalties and interest with respect thereto) owing by the Parent or its Subsidiaries as a result of the occurrence of
such event, would be greater than 3.50:1.00.

 

“Material
Asset Value Impact” means, with respect to the occurrence of any event, a reduction as a result of such event in the
fair market value of Consolidated Total Assets (determined in each case by the Lender in good faith), by an amount equal to more
than 5% of Asset Value. For purposes of this definition only, “Asset Value” shall mean the lesser of: (i) the
book value of the Consolidated Total Assets, or (ii) the fair market value of Consolidated Total Assets (determined in each case
by the Lender in good faith).

 

    14

     

    

 

“Material
Intellectual Property” means all (a) Assigned Patents, and (b) other Intellectual Property owned or exclusively licensed
by Borrower, Parent or any Material Subsidiary of Parent that is material to the business of Parent or any Material Subsidiary.

 

“Material
Subsidiary” means (i) each Subsidiary of the Borrower and (ii) each other Subsidiary
of the Parent that, as of the last day of the fiscal quarter of Parent most recently ended, had net revenues or total assets for
such quarter in excess of 5.00% of the consolidated net revenues or total assets, as applicable, of Parent and its Subsidiaries
for such quarter.

 

“Maturity
Date” means September 6, 2022.

 

“Monetization”
is defined in the SPE Operating Agreement.

 

“Monetization
Net Revenue Share” is defined in the SPE Operating Agreement

 

“Monthly Amortization
Payment” means a payment of principal of the Term Loans in an amount equal to (i) the then-outstanding principal amount
of the Term Loans (including any PIK Interest) divided by (ii) the difference of (1) 36 minus (2) the number of months occurring
after September 6, 2019 for which a Monthly Amortization Payment has been made. The Monthly Amortization Payment shall be calculated
by the Borrower, and provided to the Lender for review and revision in its reasonable discretion, initially prior to the first
such payment and recalculated following any prepayment of the Term Loans.

 

“Multiemployer
Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which Parent, the Borrower
or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated
to make contributions.

 

“Net Cash
Proceeds” means:

 

(a)               
with respect to any Asset Disposition or any insurance or condemnation award, the aggregate cash proceeds (including cash
proceeds received pursuant to policies of insurance or condemnation awards or by way of deferred payment of principal pursuant
to a note, installment receivable or otherwise, but only as and when received) received by Parent, Borrower or any Material Subsidiary
pursuant to any such Asset Disposition or insurance proceeds or condemnation award net of (i) the reasonable direct, out-of-pocket,
costs, expenses and fees relating to such Asset Disposition (including sales commissions and legal, accounting, brokers, finders
and investment banking fees), (ii) taxes paid or reasonably estimated by the Borrower to be payable as a result thereof, (iii)
amounts required to be applied to the repayment of any Indebtedness secured by a Lien on the asset subject to any such Asset Disposition
(other than the Term Loans) or required to be paid to parties having superior rights to the proceeds of any such Asset Disposition
to the extent such superior rights are permitted hereunder and (iv) any amounts which are subject to attainment of milestones or
indemnification claims following the closing of such Asset Disposition, including such amounts which are placed in escrow and amounts
which are subject to repayment or risk of forfeiture, until, in each case, such amounts are released from escrow or any such restrictions,
repayment or risk of forfeiture; and

 

(b)               
with respect to any issuance of Indebtedness (other than Permitted Indebtedness), the aggregate cash proceeds received by
Parent or any of its Subsidiaries pursuant to such issuance, net of the reasonable direct, out-of-pocket costs of such issuance
(including up-front, underwriters’ and placement fees and any related tax, legal and accounting fees).

 

    15

     

    

 

“Non-Assigned
Patents” means all Patents set forth on Schedule 1.1(f).

 

“Non-Assigned
Trade Secrets” means all Trade Secrets owned by Parent or any Subsidiary that are not Assigned Trade Secrets.

 

“Note”
means an Initial Term Loan Note, a Delayed Draw Term Loan Note, or an Incremental Term Loan Note, as the context may require.

 

“Obligations”
means all Indebtedness and other obligations (including expense reimbursement and indemnification) of each Loan Party under the
Loan Documents (other than the Warrant) whether for principal, interest, fees, expenses, prepayment premiums, any Applicable Prepayment
Premium, the End of Term Fee, the Structuring Fees, the Patent Monetization Obligations, whether direct or indirect, absolute or
contingent, due or to become due, now existing or hereafter arising, including all interest that accrues (a) in an Event of Default
or (b) after the commencement of any Insolvency Proceeding, whether or not allowed or allowable in such Insolvency Proceeding.

 

“OFAC”
is defined in Section 6.22.

 

“Organization
Documents” means, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws; (b)
with respect to any limited liability company, the certificate or articles of formation, association or organization and operating
agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of
its formation, association or organization and, if applicable, any certificate or articles of formation or organization of such
entity.

 

“Other Connection
Taxes” means Taxes imposed as a result of a present or former connection between Lender and the jurisdiction imposing
such Tax (other than connections arising from Lender having executed, delivered, become a party to, performed its obligations under,
received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced
any rights under any Loan Document, or sold or assigned an interest in a Term Loan or Loan Document).

 

“Other Taxes”
means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment
made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security
interest under, or otherwise with respect to, any Loan Document.

 

“Parent”
is defined in the Preamble.

 

“Participant
Register” is defined in Section 13.11.

 

“Patent Assignment
Agreement” means the agreement providing for the assignment of the Assigned Patent Rights by the Loan Parties (other
than Borrower) in favor of Borrower in the form attached hereto as Exhibit C.

 

    16

     

    

 

“Patent License
Agreement (Fortress)” means an exclusive license agreement by and between the Lender, as licensee, and the Loan Parties
(other than Borrower), as licensors, in the form attached hereto as Exhibit D.

 

“Patent License
Agreement (Loan Parties)” means a non-exclusive license agreement by and between the Loan Parties (other than Borrower),
as licensees, and Borrower, as licensor, in the form attached hereto as Exhibit E.

 

“Patent Monetization
Obligations” has the meaning set forth in the SPE Operating Agreement.

 

“Patent Rights”
means all of the following, whether now owned or hereafter acquired or arising:

 

(a)               
All Assigned Patent Rights;

 

(b)               
all Non-Assigned Patents;

 

(c)               
all patents and patent applications: (i) to which any of the Non-Assigned Patents directly or indirectly claims priority;
or (ii) for which any of the Non-Assigned Patents directly or indirectly forms a basis for priority;

 

(d)               
all reissues, reexaminations, extensions, renewals, continuations, continuations in part, continuing prosecution applications,
requests for continuing examinations, and divisionals of any item in any of the foregoing categories (a) and (b);

 

(e)               
all foreign patents, patent applications, and counterparts relating to any item in any of the foregoing categories (a) through
(c), including certificates of invention, utility models, industrial design protection, design patent protection, and other governmental
grants or issuances;

 

(f)                
all items in any of the foregoing in categories (b) through (d), whether or not expressly listed on Schedule 6.17
and whether or not claims in any of the foregoing have been rejected, withdrawn, cancelled, or the like;

 

(g)               
inventions, invention disclosures, and discoveries described in any of the Non-Assigned Patents or any item in the foregoing
categories (b) through (e) that: (i) are included in any claim in the Non-Assigned Patents or any item in the foregoing categories
(b) through (e); (ii) are subject matter capable of being reduced to a patent claim in a reissue or reexamination proceeding brought
on any of the Non-Assigned Patents or any item in the foregoing categories (b) through (e); or (iii) could have been included as
a claim in any of the Non-Assigned Patents or any item in the foregoing categories (b) through (e);

 

(h)               
all rights to apply in any or all countries of the world for Patents or other governmental grants or issuances of any type
related to any item in any of the foregoing categories (a) through (f), including under the Paris Convention for the Protection
of Industrial Property, the International Patent Cooperation Treaty, or any other convention, treaty, agreement, or understanding;

 

(i)                
all Non-Assigned Trade Secrets;

 

(j)                
all causes of action (whether known or unknown or whether currently pending, filed, or otherwise) and other enforcement
rights under, or on account of, any of the Non-Assigned Patents or Non-Assigned Trade Secrets or any item in any of the foregoing
categories (b) through (g), including all causes of action and other enforcement rights for (i) damages; (ii) injunctive relief,
and (iii) any other remedies of any kind for past, current, and future infringement, misappropriation or other violation; and

 

    17

     

    

 

(k)               
all rights to collect income, royalties, damages and other payments due or payable under or with respect to any of the Non-Assigned
Patents or Non-Assigned Trade Secrets or any item in any of the foregoing categories (b) through (j).

 

“Patents”
means all of the following: (a) all letters patent of the United States or the equivalent thereof in any other country, and all
applications for letters patent of the United States or the equivalent thereof in any other country, including certificates of
invention, utility models, industrial design protection, design patent protection, and other governmental grants or issuances,
and the right to make application for any of the foregoing, (b) all reissues, reexaminations, extensions, renewals continuations,
continuations in part and divisionals thereof, (c) the inventions disclosed or claimed therein, including the right to make, use
or sell the inventions disclosed or claimed therein, (d) all income, royalties, damages and payments now or hereafter due or payable
under and with respect thereto, including payments under all licenses entered into in connection therewith and damages and other
payments for past or future infringements or other violations, and (e) the right to sue for past, present and future infringement
or other violation thereof.

 

“Patriot Act”
shall mean the USA PATRIOT Act, Pub. L. 107-56 (signed into law October 26, 2001), as amended by the USA PATRIOT Improvement and
Reauthorization Act, Pub. L. 109-177 (signed into law March 9, 2006) (as amended from time to time).

 

“PBGC”
means the Pension Benefit Guaranty Corporation.

 

“Pension Plan”
means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer
Plan, that is subject to Title W of ERISA and is sponsored or maintained by Parent, the Borrower or any ERISA Affiliate or to which
Parent, the Borrower or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer
or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan
years.

 

“Perfection
Certificate” means the perfection certificate in the form attached hereto as Exhibit F.

 

“Permitted
Acquisition” means any acquisition permitted by clause (xi) of the definition of “Permitted Investments”.

 

“Permitted
Indebtedness” means:

 

(i)              
the Obligations;

 

(ii)             
Indebtedness existing on the Closing Date set forth on Schedule 1.1(c);

 

(iii)            
Subordinated Debt in a principal amount, when combined with the principal amount of the Indebtedness set forth in clauses
(vi), (viii) and (ix) of this definition, not to exceed $1,000,000 at any one time outstanding;

 

(iv)            
Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business;

 

    18

     

    

 

(v)             
Indebtedness of the Parent to any Loan Party (other than SPE Guarantor) and Indebtedness of the Parent to the Borrower arising
pursuant to the intercompany loan made on the Closing Date with a portion of the proceeds of the Term Loans;

 

(vi)            
Indebtedness of any Person that is acquired or merged with or into or consolidated with the Parent or any of its Material
Subsidiaries other than the SPE Guarantor (and not created in anticipation or contemplation thereof) and existing on the date of
such acquisition, merger or consolidation, provided that the principal amount of such Indebtedness, when combined with principal
amount of the Indebtedness set forth in clauses (iii), (viii) and (ix) of this definition, shall not exceed in the
aggregate $1,000,000 at any time outstanding;

 

(vii)           
Indebtedness owing to sureties arising from bid, performance or surety bonds or letters of credit supporting such bid, performance
or surety obligations issued on behalf of the Borrower as support for, among other things, contracts with customers;

 

(viii)          
Indebtedness of Parent and any of its Material Subsidiaries (other than the SPE Guarantor) in an aggregate principal amount,
when combined with principal amount of the Indebtedness set forth in clauses (iii), (vi) and (ix) of this
definition, shall not exceed in the aggregate $1,000,000 at any time outstanding;

 

(ix)             
purchase money Indebtedness and Indebtedness in respect of Capital Leases in an aggregate principal amount, when combined
with principal amount of the Indebtedness set forth in clauses (iii), (vi) and (viii) of this definition,
not to exceed in the aggregate $1,000,000 at any time outstanding;

 

(x)             
extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (i) through
(ix) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome
terms upon the Parent or its Material Subsidiary, as the case may be; and

 

(xi)            
until the Delayed Draw Term Loan Funding Date, unsecured Indebtedness consisting of the Management Loans in an amount not
to exceed $4,200,000.

 

“Permitted
Investments” means:

 

(i)              
Investments (including Investments in Subsidiaries) existing on the Closing Date set forth on Schedule 1.1(d);

 

(ii)             
Investments consisting of Cash Equivalents;

 

(iii)            
Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in
the ordinary course of business for Parent or its Material Subsidiaries (other than the SPE Guarantor);

 

(iv)            
Investments consisting of deposit accounts in which Lender (with respect to the Loan Parties only) has a perfected security
interest and over which Lender has “control”;

 

    19

     

    

 

(v)             
Investments (1) in the form of common equity by Parent in Borrower, (2) by Parent in Guarantors; and (3) by Guarantors (other
than the SPE Guarantor) in other Guarantors;

 

(vi)            
Investments of Parent or any of its Material Subsidiaries (other than the SPE Guarantor) consisting of (1) employee loans
and advances in the ordinary course of business not to exceed $100,000 in the aggregate in any fiscal year and (2) cashless loans
to employees, officers or directors relating to the purchase of equity securities of Parent pursuant to employee stock purchase
plans or agreements approved by Parent’s Board of Directors;

 

(vii)           
Investments (including debt obligations) received by Parent or any of its Material Subsidiaries (other than the SPE Guarantor)
in connection with the bankruptcy or reorganization of customers or suppliers or in settlement of delinquent obligations of, and
other disputes with, customers or suppliers arising in the ordinary course of business;

 

(viii)          
Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers
who are not Affiliates, in the ordinary course of business; provided, that this paragraph (viii) shall not apply to Investments
of any Loan Party in any Subsidiary;

 

(ix)             
Investments by Parent or any of its Material Subsidiaries (other than the SPE Guarantor) in non-Loan Parties in an amount
not to exceed $50,000 during any fiscal year; so long as no Event of Default has occurred and is continuing or would result therefrom;

 

(x)              
Investments accepted in connection with or resulting from dispositions of assets permitted under this Agreement; and

 

(xi)             
acquisitions by Parent or any of its Material Subsidiaries (other than the SPE Guarantor) of a substantial portion of the
assets, business or Equity Interests of another Person where (v) the total consideration including cash and the value of any non-cash
consideration for such transaction does not exceed the sum of (1) 35% of the original principal amount of the Term Loans then borrowed
plus (2) the amount of Unrestricted Cash-on-Hand minus (3) aggregate outstanding principal amount of the Term Loans,
(w) no Event of Default has occurred and is continuing or would exist immediately after giving effect to any such transaction,
(x) in the case of a merger, a Material Subsidiary of Parent (other than Borrower) is the surviving legal entity, (y) the entity
acquiring the assets in such acquisition is a Loan Party or the entity being acquired in such acquisition becomes a Loan Party
in accordance with Section 7.12, and (z) the Loan Parties are in pro forma compliance with the financial covenants set forth
in Section 7.17.

 

“Permitted
Liens” means:

 

(i)              
Liens granted to the Lender to secure the Obligations;

 

(ii)             
Liens existing on the Closing Date set forth on Schedule 1.1(e);

 

(iii)            
Liens for taxes, fees, assessments or other government charges or levies, either (a) not due and payable or (b) being contested
in good faith and for which Parent maintains adequate reserves on its books, provided that no notice of any such Lien has been
filed or recorded under the Code;

 

    20

     

    

 

(iv)            
purchase money Liens (a) on equipment acquired or held by Parent or its Material Subsidiaries (other than the SPE Guarantor)
incurred for financing the acquisition of the equipment, or (b) existing on equipment when acquired, if the Lien is confined to
the property and improvements and the proceeds of the equipment, in each case, securing Indebtedness permitted under clause
(ix) of the definition of Permitted Indebtedness;

 

(v)             
Liens incurred by Parent or any of its Material Subsidiaries (other than the SPE Guarantor) of carriers, warehousemen, suppliers,
or other Persons that are possessory in nature arising in the ordinary course of business so long as such Liens attach only to
Inventory, securing liabilities in the aggregate amount not to exceed $25,000 and which are not delinquent or remain payable without
penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing
the forfeiture or sale of the property subject thereto;

 

(vi)            
Liens incurred by Parent or any of its Material Subsidiaries (other than the SPE Guarantor) to secure payment of workers’
compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course
of business;

 

(vii)           
Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (i) through (vi),
but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal
amount of the indebtedness may not increase;

 

(viii)          
leases or subleases of real property granted by Parent or any of its Material Subsidiaries (other than the SPE Guarantor)
in the ordinary course of the Parent’s business (or, if referring to another Person, in the ordinary course of such Person’s
business), and leases, subleases, non-exclusive licenses or sublicenses of personal property (other than intellectual property)
granted in the ordinary course of the Parent’s business (or, if referring to another Person, in the ordinary course of such
Person’s business);

 

(ix)             
the Patent License Agreement (Fortress) and Patent License Agreement (Loan Parties);

 

(x)              
Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under
Section 9.01(j);

 

(xi)             
Liens in favor of other financial institutions arising in connection with deposit and/or securities accounts held at such
institutions;

 

(xii)           
deposits by Parent or any of its Material Subsidiaries (other than the SPE Guarantor) to secure the performance of bids,
tenders, trade contracts (other than for borrowed money), leases, government contracts, statutory obligations, surety, stay, customs
and appeal bonds, performance and return of money bonds and other obligations of a like nature incurred in the ordinary course
of business;

 

(xiii)          
easements, rights-of-way, restrictions (including zoning restrictions), covenants, licenses, encroachments, protrusions
and other similar charges or encumbrances or minor title deficiencies incurred by Parent or any of its Material Subsidiaries (other
than the SPE Guarantor) in the ordinary course of business that, in the aggregate, are not substantial in amount and that do not
in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary course
of business;

 

    21

     

    

 

(xiv)          
any interest or title of a lessor under any (1) operating lease entered into by Parent or any of its Material Subsidiaries
in the ordinary course of its business and covering only the assets so leased, or (2) real property lease pertaining to the lessor’s
interest in or title to any fixtures under such lease terms;

 

(xv)           
deposits made in the ordinary course of business to secure liability for premiums to insurance carriers;

 

(xvi)          
Liens incurred by Parent or any of its Material Subsidiaries (other than the SPE Guarantor) in favor of customs and revenue
authorities arising as a matter of law to secure payment of custom duties in connection with the importation of goods;

 

(xvii)         
Liens incurred by Parent or any of its Material Subsidiaries (other than the SPE Guarantor) arising out of conditional sale,
title retention, consignment or similar arrangements for the sale of goods entered into in the ordinary course of business;

 

(xviii)        
the filing of UCC financing statements against by Parent or any of its Material Subsidiaries (other than the SPE Guarantor)
solely as a precautionary measure in connection with operating leases or consignment of goods; and

 

(xix)           
Liens incurred by Parent or any of its Material Subsidiaries (other than the SPE Guarantor) not otherwise permitted hereunder
securing obligations other than borrowed money so long as neither (a) the aggregate outstanding principal amount of the obligations
secured thereby nor (b) the aggregate fair market value (determined as of the date such Lien is incurred) of the assets subject
thereto exceeds $100,000 at any one time.

 

“Person”
means any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated
organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government
agency.

 

“PIK Interest”
means interest paid in kind on the Term Loans.

 

“Plan”
means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by Parent, the Borrower
or, with respect to any such plan that is subject to Section 412 of the Code or Title W of ERISA, any ERISA Affiliate.

 

“Premium Event”
is defined in Section 2.01(f)(ii).

 

“Prime Rate”
means the rate last quoted by The Wall Street Journal as the “Prime Rate” in the United States or, if The
Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in
Federal Reserve Statistical Release 11.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such
rate is no longer quoted therein, any similar rate quoted therein (as reasonably determined by the Lender) or any similar release
by the Federal Reserve Board (as reasonably determined by the Lender).

 

    22

     

    

 

“Prohibition
on Money Laundering Law” means the Israeli Prohibition on Money Laundering Law 5760-2000 and the regulations, rules,
circulars and guidelines promulgated or published thereunder.

 

“Register”
is defined in Section 13.10.

 

“Related Parties”
means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees,
administrators, managers, advisors, representatives investors and potential investors of such Person and of such Person’s
Affiliates.

 

“Reportable
Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period
has been waived.

 

“Responsible
Officer” means any of the Chief Executive Officer, President and Chief Financial Officer of Parent, Borrower or, as applicable,
a Guarantor.

 

“Revenue Leverage
Ratio” means the ratio as of the last day of any fiscal quarter of (a) the aggregate outstanding principal amount of
the Term Loans as of such day, to (b) Consolidated Revenue for the four-fiscal quarter period ending on such date.

 

“Sanctions”
is defined in Section 6.22.

 

“SEC”
means the Securities and Exchange Commission, any successor thereto, and any analogous Governmental Authority.

 

“Securities
Account” means a “securities account” as defined in the UCC.

 

“Securities
Act” is the Securities Exchange Act of 1933, as amended.

 

“Securities
Entitlement” means a “securities entitlement” as defined in the UCC.

 

“Securitization”
is defined in Section 13.19.

 

“Securitization
Parties” is defined in Section 13.19.

 

“Security
Agreement” means the Security Agreement dated as of the date hereof by and among the Lender and the Loan Parties, in
the form attached hereto as Exhibit I.

 

“Security
Documents” means the Security Agreement, each Israeli Security Document, and all other security documents hereafter delivered
by the Loan Parties to the Lender granting a Lien on their respective assets to secure any of the Obligations or to secure any
guarantee of any such Obligations.

 

“Solvent”
means, with respect to any Person on any date of determination, that on such date (a) the fair value of the property of such Person
is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair salable
value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person
on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur
debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature, (d) such Person is not
engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property
would constitute an unreasonably small capital, and (e) such Person is able to pay its debts and liabilities, contingent obligations
and other commitments as they mature in the ordinary course of business. The amount of contingent liabilities at any time shall
be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that
can reasonably be expected to become an actual or matured liability.

 

    23

     

    

 

“Specified
Person” is defined in the definition of “Affiliate”.

 

“SPE Guarantor”
is defined in the preamble.

 

“SPE Operating
Agreement” means that certain Operating Agreement of SuperCom IP LLC, dated as of the date hereof, in form and substance
acceptable to the Lender.

 

“Structuring
Fees” means, collectively, the Initial Structuring Fee and each Incremental Structuring Fee and “Structuring
Fee” means, individually, the Initial Structuring Fee and each Incremental Structuring Fee.

 

“Subordinated
Debt” means Indebtedness incurred by Parent, non-recourse to the Borrower and subordinated to the Obligations pursuant
to a subordination agreement in form and substance satisfactory to Lender.

 

“Subsidiary”
mean a corporation, partnership, trust, limited liability company or other business entity of which more than 50% of the shares
of stock or other ownership interests are at the time owned, directly, or indirectly through one or more Subsidiaries, or both,
by Parent. Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of
Parent and Borrower shall be deemed a Subsidiary of Parent.

 

“Taxes”
means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments,
fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Term Loan
Request” means an Initial Term Loan Request, a Delayed Draw Term Loan Request or Incremental Term Loan Request, as the
context may require.

 

“Term Loans”
means the Initial Term Loan, the Delayed Draw Term Loan and any Incremental Term Loans and “Term Loan” means
the Initial Term Loan, a Delayed Draw Term Loan or an Incremental Term Loan.

 

“Trademarks”
means all of the following: (a) all trademarks, service marks, corporate names, company names, business names, trade names, trade
dress, logos, Internet domain names, other source or business identifiers, designs and general intangibles of like nature, all
registrations thereof, and all registrations and applications filed in connection therewith in the United States Patent and Trademark
Office or any similar offices in any State of the United States or any other country or any political subdivision thereof, and
all renewals thereof, (b) all goodwill associated therewith or symbolized thereby, (c) all income, royalties, damages and payments
now or hereafter due or payable under and with respect thereto, including payments under all licenses entered into in connection
therewith and damages and other payments for past or future infringements or other violations, and (d) the right to sue for past,
present and future infringement, dilution or other violation thereof.

 

“Trade Secrets”
means all of the following: (a) trade secrets and other proprietary or confidential business information, including inventions,
invention disclosures, discoveries, know how, systems, processes, methods, data, business and marketing plans, and customer and
vendor lists, (b) all income, royalties, damages and payments now or hereafter due or payable under and with respect thereto, including
payments under all licenses entered into in connection therewith and damages and other payments for past or future misappropriation
or other violation, and (c) the right to sue for past, present and future misappropriation or other violation thereof.

 

    24

     

    

 

“Transaction
Costs” means the fees, costs and expenses payable by Parent, Borrower or any of Parent’s Subsidiaries on or before
the Closing Date in connection with the transactions contemplated by the Loan Documents.

 

“Transfer”
means to sell, exchange, transfer, assign, license, hypothecate, pledge or make a gift.

 

“UCC”
means the Uniform Commercial Code in effect from time to time in the State of New York, except as such term may be used in connection
with the perfection of a security interest in the Collateral, in which case, the applicable jurisdiction with respect to the affected
Collateral shall apply.

 

“Unfunded
Pension Liability” means the excess of a Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA,
over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the
Pension Plan pursuant to Section 412 of the Code for the applicable plan year.

 

“Unrestricted
Cash-on-Hand” means all cash and Cash Equivalents owned by Parent and its Subsidiaries and held in a Deposit Account
over which Lender has a first priority perfected Lien and subject to the Lender’s “control” (as defined in Section
9-104 of the UCC) on the date of determination (excluding for purposes of clarity, any amounts available to be drawn or funded
under lines of credit or other debt facilities, including any revolving loans); provided that amounts included under this
definition shall (x) be included only to the extent such amounts are not subject to any consensual Lien or other restriction or
encumbrance of any kind (other than Liens in favor of the Lender) and (y) exclude any amounts held by Parent or any of its Subsidiaries
in escrow, trust or other fiduciary capacity for or on behalf of a client, borrower or customer of Parent, its Subsidiaries or
any of their respective Affiliates.

 

“Warrant”
means a Warrant, in substantially the form attached hereto as Exhibit G executed by Parent in favor of Lender or an Affiliate
of Lender on the Closing Date, pursuant to which Lender or its Affiliate, as applicable, shall be entitled to purchase shares of
the Parent’s Equity Interests as set forth therein.

 

SECTION 1.02.                      
Other Interpretative Provisions.

 

(a)           
With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

 

(i)              
The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,”
 “includes” and “including” shall be deemed to be followed by the phrase “without
limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall”.
Unless the context requires otherwise, (a) any definition of or reference to any agreement, instrument or other document (including
any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth
herein or in any other Loan Document); (b) any reference herein to any Person shall be construed to include such Person’s
successors and assigns; (c) the words “hereto”, “herein”, “hereof’ and
 “hereunder”, and words of similar import when used in any Loan Document, shall be construed to refer to such
Loan Document in its entirety and not to any particular provision thereof, (d) all references in a Loan Document to Sections, Exhibits
and Schedules shall be construed to refer to Sections of, and Exhibits and Schedules to, the Loan Document in which such references
appear; e) any reference to any Law shall include all statutory and regulatory provisions consolidating, amending, replacing or
interpreting such Law and any reference to any Law or regulation shall, unless otherwise specified, refer to such Law or regulation
as amended, modified or supplemented from time to time; and (f) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible, real and personal,
assets and properties, including cash, securities, accounts and contract rights.

 

    25

     

    

 

(ii)              
In the computation of periods of time from a specified date to a later specified date, the word “from”
means “from and including;” the words “to” and “until” each mean “to but
excluding;” and the word “through” means “to and including.”

 

(iii)            
Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect
the interpretation of this Agreement or any other Loan Document.

 

SECTION 1.03.                      
Accounting Terms.

 

(a)           
Generally. All accounting terms not specifically or completely defined herein shall be construed in conformity with,
and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this
Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in
a manner consistent with that used in preparing the Audited Financial Statements, except as otherwise specifically prescribed herein.
Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial
covenant) contained herein, Indebtedness of the Loan Parties and their Subsidiaries shall be deemed to be carried at 100% of the
outstanding principal amount thereof, and the effects of FASB ASC 825 on financial liabilities shall be disregarded.

 

(b)           
Changes in GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or requirement
set forth in any Loan Document, at Lender’s request, Lender and Borrower shall negotiate in good faith to amend such ratio
or requirement to preserve the original intent thereof in light of such change in GAAP; provided that, until so amended
(i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) Borrower
and Parent shall provide to Lender financial statements and other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect
to such change in GAAP. Without limiting the foregoing, operating leases shall continue to be classified and accounted for on a
basis consistent with GAAP as in effect on the Closing Date for all purposes of this Agreement, notwithstanding any change in GAAP
relating thereto, unless the parties hereto shall enter into a mutually acceptable amendment addressing such changes, as provided
for above.

 

SECTION 1.04.                      
Rounding. Any financial ratios required to be maintained by the Parent pursuant to this Agreement shall be calculated
by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by
which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no
nearest number).

 

    26

     

    

 

ARTICLE
II.   LOANS
AND TERMS OF PAYMENT

 

SECTION 2.01.                      
Term Loans.

 

(a)           
Term Loans.

 

(i)              
Initial Term Loan. Subject to the terms and conditions of this Agreement, Lender agrees to make a term loan to Borrower,
in the full amount of $5,000,000 on the Closing Date (the “Initial Term Loan”). When repaid, the repaid portion
of the Initial Term Loan may not be re-borrowed.

 

(ii)             
Delayed Draw Term Loan. Subject to the terms and conditions of this Agreement, the Lender agrees to make a term loan
to Borrower, in the full amount of $5,000,000 on the Delayed Draw Term Loan Funding Date (the “Delayed Draw Term Loan”).
When repaid, the repaid portion of the Delayed Draw Term Loan may not be re-borrowed.

 

(b)          
Principal Repayment.

 

(i)              
Commencing on October 1, 2019 and continuing thereafter on the 1st day of each successive calendar month through and including
the Maturity Date, Borrower shall make thirty-six (36) Monthly Amortization Payments plus all accrued and unpaid interest with
respect to the Term Loans.

 

(ii)             
All unpaid principal and accrued and unpaid interest of the Term Loans is due and payable in full on the Maturity Date unless
earlier accelerated.

 

(iii)            
The Term Loans may only be prepaid in accordance with Sections 2.01(c), 2.01(d), and 2.01(e).

 

(c)           
Mandatory Prepayment Upon Acceleration. If the Term Loans are accelerated (whether following the occurrence and during
the continuation of an Event of Default, by operation of law or otherwise), Borrower shall immediately pay to Lender an amount
equal to the sum of (i) all outstanding principal plus accrued and unpaid interest of the Term Loans, plus (ii) the End of Term
Fee, as further described in Section 2.01(f), below; plus (iii) all other sums, if any, that shall have become due and payable
under the Loan Documents, including interest at the Default Rate to the extent applicable.

 

(d)           
Permitted Prepayment of Loans. Borrower shall have the option to prepay all or part of the Term Loans advanced by
Lender under this Agreement; provided, that Borrower (i) provides written notice to Lender of its election to prepay all
or a part of the Term Loans at least three (3) Business Days prior to such prepayment, and (ii) pays, on the date of such prepayment
(A) all outstanding principal plus accrued and unpaid interest for the portion of the Term Loans specified for prepayment in the
written notice provided pursuant to clause (i); (B) the End of Term Fee (if the Term Loans are being prepaid in full); and (C)
all other sums, if any, that shall have become due and payable upon prepayment under the Loan Documents, including interest at
the Default Rate with respect to any past due amounts and any Applicable Prepayment Premium, as further described in Section 2.01(f),
below. Each partial prepayment shall be applied to the principal balance of the Term Loans and applied pro rata to each of the
remaining Monthly Amortization Payments occurring thereafter.

 

(e)           
Mandatory Prepayment Upon Certain Events.

 

(i)              
The Borrower shall make a prepayment of the Term Loans (in each case, without premium or penalty except as otherwise expressly
provided in Section 2.01(f) or Section 2.02(f)) upon the occurrence of any of the following at the following times
and in the following amounts:

 

    27

     

    

 

(1)             
Within five (5) days after the receipt by Parent or any of its Material Subsidiaries of any Net Cash Proceeds in excess
of $100,000 in the aggregate since the Closing Date from any Asset Disposition (other than any Alvarion Patent Disposition), in
an amount equal to 100% of such Net Cash Proceeds; provided, so long as no Default or Event of Default shall have occurred
and be continuing, upon delivery of a written notice to Lender, Borrower shall have the option, directly or through one or more
Subsidiaries, to invest Net Cash Proceeds (the “Asset Disposition Reinvestment Amounts”) in long-term productive
assets of the general type used in the business of Borrower if such assets are purchased or constructed within one hundred eighty
(180) days following receipt of such Net Cash Proceeds (and so long as any such individual or aggregate investment in the amount
of $250,000 or more has been consented to by Lender); provided further, pending any such reinvestment all Asset Disposition
Reinvestment Amounts shall be held at all times prior to such reinvestment, in an escrow account in form and substance reasonably
acceptable to Lender. In the event that the Asset Disposition Reinvestment Amounts are not reinvested by Borrower prior to the
earlier of (i) the last day of such one hundred eighty (180) day period, and (ii) the date of the occurrence of an Event of Default,
Lender shall apply such Asset Disposition Reinvestment Amounts to the Obligations in accordance with this Agreement.

 

(2)             
Within five (5) days of the receipt by Parent or any of its Material Subsidiaries of any Net Cash Proceeds in excess of
$100,000 in the aggregate since the Closing Date of insurance or condemnation awards, in an amount equal to 100% of such Net Cash
Proceeds; provided, so long as no Default or Event of Default shall have occurred and be continuing, upon delivery of a
written notice to Lender, Borrower shall have the option, directly or through one or more Subsidiaries, to invest Net Cash Proceeds
(the “Insurance/Condemnation Reinvestment Amounts”) in long-term productive assets of the general type used
in the business of Borrower if such assets are purchased or constructed within one hundred eighty (180) days following receipt
of such Net Cash Proceeds (and so long as any such individual or aggregate investment in the amount of $250,000 or more has been
consented to by Lender); provided further, pending any such reinvestment all Insurance/Condemnation Reinvestment Amounts
shall be held at all times prior to such reinvestment, in an escrow account in form and substance reasonably acceptable to Lender.
In the event that the Insurance/Condemnation Reinvestment Amounts are not reinvested by Borrower prior to the earlier of (i) the
last day of such one hundred eighty (180) day period, and (ii) the date of the occurrence of an Event of Default, Lender shall
apply such Insurance/Condemnation Reinvestment Amounts to the Obligations in accordance with this Agreement.

 

(3)             
Substantially concurrently with the receipt by Parent or any of its Subsidiaries of any Net Cash Proceeds from any issuance
of any Indebtedness (other than Permitted Indebtedness) of Parent or any of its Subsidiaries, in an amount equal to 100% of such
Net Cash Proceeds.

 

(4)             
In the event that there shall be Consolidated Excess Cash Flow for any fiscal year of Parent (commencing with the fiscal
year ending December 31, 2018), Borrower shall, no later than the earlier of (i) 180 days after the end of each fiscal year of
Parent and (ii) the date of delivery by the Borrower of the financial statements described in Section 7.02(a), in an amount
equal to 50% of such Consolidated Excess Cash Flow. Any amounts prepaid pursuant to this clause (4) in excess of 50% of
Consolidated Excess Cash Flow shall be treated as voluntary prepayments made pursuant to Section 2.01(d).

 

    28

     

    

 

(5)             
Substantially concurrently with the receipt by Parent or any of its Subsidiaries of any Net Cash Proceeds from any Alvarion
Patent Disposition, in an amount equal to 80% of such Net Cash Proceeds.

 

(6)             
Within five (5) days of the receipt by Parent or any of its Subsidiaries of any Early Termination Liability Proceeds, in
an amount equal to 100% of such Early Termination Liability Proceeds.

 

(7)             
Within the time period set forth in the SPE Operating Agreement, Monetization Net Revenue, in the amounts set forth in the
SPE Operating Agreement.

 

(ii)             
Other than with respect to Sections 2.01(e)(i)(7) and (8), prepayments pursuant to Section 2.01(e)(i)
shall be applied ratably to the Monthly Amortization Payments in inverse order of maturity. Monetization Net Revenue shall be applied
to the Obligations as set forth in Section 2.02(e).

 

(f)            
End of Term Fee; Applicable Prepayment Premium.

 

(i)              
Notwithstanding anything herein to the contrary, upon the earliest to occur of: (A) the Maturity Date, (B) payment in full
of the principal amount of the Term Loans outstanding, (C) the Obligations being accelerated (whether as a result of an Event of
Default, by operation of law or otherwise), including as a result of the commencement of an Insolvency Proceeding or any Event
of Default under Section 9.01(h), (D) satisfaction, release, payment, restructuring, reorganization, replacement, reinstatement,
defeasance or compromise of any of the Obligations in any Insolvency Proceeding, foreclosure (whether by power of judicial proceeding
or otherwise) or deed in lieu of foreclosure or the making of a distribution of any kind in any Insolvency Proceeding to Lender
in full or partial satisfaction of the Obligations, and (E) a termination of this Agreement for any reason (the occurrence of any
of the events set forth in the foregoing clauses (A) through (E), the “End of Term Fee Event”),
Borrower shall pay Lender as an inducement for making the Term Loans (and not as a penalty) an amount equal to the End of Term
Fee, which End of Term Fee shall be fully earned, and due and payable, on the date of such End of Term Fee Event, and non-refundable
when made.

 

(ii)             
Notwithstanding anything herein to the contrary, if all or any portion of the Term Loans are prepaid pursuant to Section
2.01(d) or 2.01(e)(3) (other than any such prepayment made with the Net Cash Proceeds of Permitted Indebtedness) (a
 “Premium Event”), Borrower shall pay Lender as an inducement for making the Term Loans (and not as a penalty)
an amount equal to the Applicable Prepayment Premium, which Applicable Prepayment Premium shall be fully earned, and due and payable,
on the date of such Premium Event, and nonrefundable when made.

 

    29

     

    

 

(iii)            
If the Term Loans are accelerated for any reason under this Agreement pursuant to the terms herein, the End of Term Fee
shall be calculated as if the date of acceleration of the Term Loans was the date of prepayment of the Term Loans. The parties
hereto further acknowledge and agree that neither the End of Term Fee nor the Applicable Prepayment Premium is intended to act
as a penalty or to punish the Loan Parties for any such repayment or prepayment. Any prepayment or repayment, whether voluntary
or involuntary, of the Term Loans upon the occurrence of any End of Term Fee Event or Premium Event shall be accompanied by all
accrued interest on the principal amount prepaid or repaid, together with the End of Term Fee and/or the Applicable Prepayment
Premium, as applicable. Without limiting the generality of the foregoing, and notwithstanding anything to the contrary in this
Agreement or any Loan Document, it is understood and agreed that if the Obligations are accelerated (whether as a result of the
occurrence and continuance of any Event of Default, by operation of law or otherwise), the End of Term Fee, determined as of the
date of acceleration, will also be due and payable and will be treated and deemed as though the Term Loans were prepaid as of such
date and shall constitute part of the Obligations for all purposes herein. The End of Term Fee shall also be payable in the event
the Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power of judicial proceeding), deed
in lieu of foreclosure or by any other similar means. THE LOAN PARTIES EXPRESSLY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE
STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING END OF TERM FEE IN CONNECTION WITH ANY SUCH ACCELERATION.
The Loan Parties expressly agree that (i) each of the End of Term Fee and the Applicable Prepayment Premium is reasonable and is
the product of an arm’s length transaction between sophisticated business people, ably represented by counsel, (ii) the End
of Term Fee and Applicable Prepayment Premium shall be payable notwithstanding the then prevailing market rates at the time payment
is made, (iii) there has been a course of conduct between Lender and the Loan Parties giving specific consideration in this transaction
for such agreement to pay the End of Term Fee and Applicable Prepayment Premium, (iv) the Loan Parties shall be estopped hereafter
from claiming differently than as agreed to in this Section 2.01(f), (v) their agreement to pay the End of Term Fee and
Applicable Prepayment Premium is a material inducement to the Lender to make the Term Loans, and (vi) the End of Term Fee and Applicable
Prepayment Premium represents a good faith, reasonable estimate and calculation of the lost profits or damages of the Lender and
that it would be impractical and extremely difficult to ascertain the actual amount of damages to the Lender or profits lost by
the Lender as a result of such End of Term Fee Event or Premium Event.

 

(g)          
Structuring Fees.

 

(i)              
At the Closing Date, the Borrower shall pay to the Lender a structuring fee (the “Initial Structuring Fee”)
equal to [●]% of the original principal amount of the Initial Term Loan, which amount shall be netted out of the funding
on the Closing Date.

 

(ii)             
At the Delayed Draw Term Loan Funding Date, the Borrower shall pay to the Lender a structuring fee (the “Delayed
Draw Structuring Fee”) equal to [●]% of the original principal amount of the Delayed Draw Term Loan, which amount
shall be netted out of the funding on the Delayed Draw Term Loan Funding Date.

 

(iii)            
On each Increased Amount Date, the Borrower shall pay to the Lender a structuring fee (each, an “Incremental Structuring
Fee”) equal to [●]% of the original principal amount of the Incremental Term Loan made on such Increased Amount
Date, which amount shall be netted out of the funding on the applicable Increased Amount Date.

 

(iv)            
The parties agree that for federal and state income tax purposes (1) the Initial Structuring Fee shall be treated as a reduction
in the issue price of the Initial Term Loan, (2) the Delayed Draw Structuring Fee shall be treated as a reduction in the issue
price of the Delayed Draw Term Loan, and (3) any Incremental Structuring Fee shall be treated as a reduction in the issue price
of the applicable Incremental Term Loan, in each case, in accordance with Code Section 1273-2(g)(2), and the parties will file
all their tax returns (including information returns) in a manner consistent with this Section 2.01(g)(iv) unless there
is a “determination” within the meaning of Code Section 1313 to the contrary.

 

    30

     

    

 

 

(h)           
Unused Incremental Fee. Borrower agrees to pay to Lender an unused line fee equal to (i) the unused portion of the
Incremental Term Loans multiplied by (ii) [●]%.

 

SECTION 2.02.                      
Interest; Fees; Payments.

 

(a)               
Interest. Subject to Section 2.03(a)(i), the outstanding principal balance of the Term Loans shall bear interest
as set forth below, which interest shall be payable monthly in accordance with Section 2.02(a)(ii).

 

(i)               Default Rate. At all times during the continuation of an Event of Default, the outstanding principal balance of the
Term Loans shall bear interest at the Default Rate. All fees, expenses and other Obligations not paid when due shall bear interest
at the Default Rate from the date due until paid.

 

(ii)              Cash Pay Interest. Interest is payable on the first day of each calendar month (or if such day is not a Business
Day, the first Business Day thereafter) (such day, an “Interest Payment Date”), commencing on October 1, 2018,
on the outstanding principal amount of the Term Loans (including PIK Interest (as defined below)) at a rate equal to (i) if a Base
Rate Loan, at the Base Rate plus the Applicable Margin or (ii) if a LIBO Rate Loan, at the LIBO Rate plus the Applicable Margin.

 

(iii)            
PIK Interest. On any Interest Payment Date, at the option of the Borrower and upon no less than five (5) Business
Days’ prior written notice to Lender, up to 4.00% of the interest accrued on the Term Loans pursuant to clause (ii) above
may be paid in the form of PIK Interest. All PIK Interest so added shall be capitalized monthly on each Interest Payment Date and
treated as principal amount of the Term Loans for all purposes of this Agreement. Following any such increase in the principal
amount of the Term Loans, all interest will accrue on such increased amount.

 

(b)               
Fees. Borrower shall pay Lender the fees, including but not limited to the Structuring Fees, End of Term Fee and
Lender Expenses.

 

(c)               
Computation. Interest shall be computed on the basis of a 360-day year, actual days elapsed with respect to LIBO
Rate Loans and on the basis of a 365/366-day year, actual days elapsed with respect to Base Rate Loans.

 

(d)               
Payments. Interest shall be payable monthly, in arrears, on the first day of each month and on the Maturity Date.
All payments (including prepayments) to be made by Borrower under any Loan Document shall be made in immediately available funds
in U.S. Dollars, without setoff or counterclaim, at or before 1:00 p.m. Pacific Time on the date when due. Payments received after
1:00 p.m. Pacific Time are considered received at the opening of business on the next Business Day. When a payment is due on a
day that is not a Business Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable,
shall continue to accrue until paid. Each payment made by Borrower under a Loan Document is in addition to any payment or distribution
to which Lender may be entitled or may receive pursuant to SPE Guarantor’s Organization Documents, and nothing in any Loan
Document shall be construed as limiting, reducing or in any way diminishing any payment or distribution to which Lender may be
entitled or may receive under or with respect to the SPE Guarantor’s Organization Documents.

 

    31

     

    

 

(e)               
Application of Payments. Borrower shall have no right to specify the order or the accounts to which Lender shall
allocate or apply any payment required to be made by Borrower to Lender or otherwise received by Lender under this Agreement when
any such allocation or application is not specified elsewhere in this Agreement.

 

(f)                
Break Funding Payments. Notwithstanding anything herein to the contrary, in the event of the payment or prepayment
by the Borrower of any principal of the Term Loans other than on the last day of an Interest Period applicable thereto (including
as a result of an Event of Default), then, in any such event, the Borrower shall compensate the Lender for the loss, cost and expense
attributable to such event (other than loss of profit). Such loss, cost or expense to any Lender shall be deemed to include an
amount reasonably determined by the Lender to be the excess, if any, of (i) the amount of interest that would have accrued on the
principal amount of the Term Loans had such event not occurred, at the LIBO Rate that would have been applicable to the Term Loans,
for the period from the date of such event to the last day of the then current Interest Period therefor, over (ii) the amount of
interest that would accrue on such principal amount for such period at the interest rate that the Lender would bid were it to bid,
at the commencement of such period, for deposits in the applicable currency of a comparable amount and period from other banks
in the eurocurrency market. A certificate of the Lender setting forth any amount or amounts that the Lender is entitled to receive
pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay
Lender the amount shown as due on any such certificate upon receipt thereof.

 

SECTION 2.03.                      
Taxes.

 

(a)               
Defined Terms. For purposes of this Section 2.03, the term “applicable law” includes FATCA.

 

(b)               
Payments Free of Taxes. Any and all payments by or on account of any obligation of any Loan Party under any Loan
Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable
Law (as determined in the good faith discretion of the Borrower) requires the deduction or withholding of any Tax from any such
payment by the Lender, then the Lender shall be entitled to make such deduction or withholding and shall timely pay the full amount
deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified
Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that after such deduction or withholding
has been made (including such deductions and withholdings applicable to additional sums payable under this Section 2.03)
the Lender receives an amount equal to the sum it would have received had no such deduction or withholding been made.

 

(c)               
Payment of Other Taxes by Borrower. Without limiting the provisions of subsection (a) above, the Borrower shall timely
pay to the relevant Governmental Authority in accordance with applicable Laws, or at the option of the Lender timely reimburse
it for the payment of, any Other Taxes.

 

(d)               
Tax Indemnification. Borrower shall, and does hereby indemnify Lender, and shall make payment in respect thereof
within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or
asserted on or attributable to amounts payable under this Section) payable or paid by Lender or required to be withheld or deducted
from a payment to Lender, and any Taxes due with respect to the payment of Indemnified Taxes under this Section, and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly
or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability
delivered to the Borrower by the Lender shall be conclusive absent manifest error.

 

    32

     

    

 

(e)                
Evidence of Payments. As soon as practicable after any payment of Taxes by Borrower to a Governmental Authority as
provided in this Section 2.03. Borrower shall deliver to Lender the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of any return required by Laws to report such payment or other evidence
of such payment reasonably satisfactory to Lender.

 

(f)               
Status of Lender.

 

(1)               
If Lender is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan
Document, Lender shall deliver to Borrower, at the time or times reasonably requested by Borrower, such properly completed and
executed documentation reasonably requested by Borrower as will permit such payments to be made without withholding or at a reduced
rate of withholding. In addition, if reasonably requested by Borrower, Lender shall deliver such other documentation prescribed
by applicable Law or reasonably requested by Borrower as will enable Borrower to determine whether or not such Lender is subject
to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences,
the completion, execution and submission of such documentation (other than the documentation required in the following sentence)
shall not be required if in Lender’s reasonable judgment such completion, execution and submission would subject Lender to
any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of Lender. Without limiting
the generality of the foregoing, Lender shall deliver to Borrower on or prior to the effective date of this Agreement and at such
other times as reasonably requested by Borrower, executed copies of IRS Form W-9 certifying or such other documentation that is
reasonably requested by Borrower to indicate that Lender is exempt from U.S. federal backup withholding Tax.

 

(2)               
Without limiting the generality of the foregoing, in the event that the Lender makes any assignment of all or a portion
of the Term Loans as permitted hereunder to an assignee that is not a “United States Person” as defined in Section
7701(a)(30) of the Code (such assignee a “Foreign Lender Assignee”), such Foreign Lender Assignee shall, to
the extent it is legally entitled to do so, deliver to Borrower (in such number of copies as shall be requested by the recipient)
on or prior to the date on which the assignment to such Foreign Assignee Lender becomes effective under this Agreement (and from
time to time thereafter upon the reasonable request of Borrower), whichever of the following is applicable:

 

(A)             
in the case of a Foreign Lender Assignee claiming the benefits of an income tax treaty to which the United States is a party
(x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E establishing
an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty
and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E establishing
an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other
income” article of such tax treaty;

 

    33

     

    

 

(B)             
executed originals of IRS Form W-8ECI;

 

(C)             
in the case of a Foreign Lender Assignee claiming the benefits of the exemption for portfolio interest under Section 881(c)
of the Code, (x) a certificate substantially in the form of Exhibit N-1 to the effect that such Foreign Lender Assignee
is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of Borrower
within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section
881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN
or IRS Form W-8BEN-E; or

 

(D)             
to the extent a Foreign Lender Assignee is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied
by IRS Form W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit
N-2 or N-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided
that if the Foreign Lender Assignee is a partnership and one or more direct or indirect partners of such Foreign Lender Assignee
are claiming the portfolio interest exemption, such Foreign Lender Assignee may provide a U.S. Tax Compliance Certificate substantially
in the form of Exhibit N-4 on behalf of each such direct and indirect partner;

 

(3)               
any Foreign Lender Assignee shall, to the extent it is legally entitled to do so, deliver to Borrower (in such number of
copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender Assignee becomes a Lender under
this Agreement (and from time to time thereafter upon the reasonable request of Borrower or Administrative Agent), executed originals
of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding
Taxes, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit Borrower
to determine the withholding or deduction required to be made; and

 

(4)               
if a payment made to a Foreign Lender Assignee, in its capacity as successor to Lender by assignment, under any Loan Document
would be subject to U.S. federal withholding Taxes imposed by FATCA if such Foreign Lender Assignee were to fail to comply with
the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable),
such Foreign Lender Assignee shall deliver to Borrower at the time or times prescribed by law and at such time or times reasonably
requested by Borrower such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the
Code) and such additional documentation reasonably requested by Borrower or Administrative Agent as may be necessary for Borrower
to comply with their obligations under FATCA and to determine that such Foreign Lender Assignee has complied with such Foreign
Lender Assignee’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for
purposes of this clause (4), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

    34

     

    

 

(g)               
Treatment of Certain Refunds. If Lender determines, in its sole discretion exercised in good faith, that it has received
a refund of any Taxes as to which it has been indemnified by Borrower or with respect to which Borrower has paid additional amounts
pursuant to this Section 2.03. it shall pay to Borrower an amount equal to such refund (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section 2.03 with respect to the Taxes giving rise
to such refund), net of all reasonable out-of-pocket expenses (including Taxes) incurred by Lender, and without interest (other
than any interest paid by the relevant Governmental Authority with respect to such refund); provided that Borrower, upon
Lender’s request, agrees to repay the amount paid over to Borrower (plus any penalties, interest or other charges imposed
by the relevant Governmental Authority) to Lender if Lender is required to repay such refund to such Governmental Authority. Notwithstanding
anything to the contrary in this subsection, in no event is Lender required to pay any amount to Borrower pursuant to this subsection
(i) the payment of which would place Lender in a less favorable net after-Tax position than Lender would have been in if the indemnification
payments or additional amounts giving rise to such refund had never been paid or (ii) during the continuation of an Event of Default.
This subsection shall not be construed to require Lender to make available its Tax returns (or any other information relating to
its Taxes that it deems confidential) to Borrower or any other Person.

 

(h)                
Survival. Each party’s obligations under this Section 2.03 shall survive the repayment, satisfaction
or discharge of all other Obligations.

 

SECTION 2.04.                      
Special LIBOR Provisions.

 

(a)               
Circumstances Affecting LIBO Rate Availability. If the Lender shall determine in good faith that, by reason of circumstances
affecting the foreign exchange and interbank markets generally, deposits in Eurodollars in the applicable amounts are not being
offered to the Lender at the applicable LIBO Rate, then the Lender shall forthwith give notice thereof to the Borrower. Thereafter,
until the Lender notifies the Borrower that such circumstances no longer exist, (i) the obligation of the Lender to make any Term
Loan as a LIBO Rate Loan, and the right of the Borrower to convert any Term Loan to, or continue any Term Loan as, a LIBO Rate
Loan shall be suspended, (ii) effective upon the last day of each Interest Period related to any existing LIBO Rate Loan, such
LIBO Rate Loan shall automatically be converted into a Base Rate Loan (without regard to the satisfaction of any conditions to
conversion contained elsewhere herein), and (iii) effective immediately following such notice, each LIBO Rate Loan shall automatically
be converted into a Base Rate Loan (without regard to the satisfaction of any conditions to conversion contained elsewhere herein).
Notwithstanding the foregoing, if the Lender has made the determination described in this Section, the Lender, in consultation
with the Borrower, may establish an alternative interest rate for the Term Loans in lieu of the LIBO Rate, in which case, such
alternative rate of interest shall apply with respect to the Term Loans until the Lender revokes the notice delivered with respect
to the affected LIBO Rate Loans under first sentence of this clause (a).

 

(b)               
Laws Affecting LIBOR Rate Availability. If, after the date of this Agreement, the adoption or introduction of, or
any change in, any applicable law, rule or regulation or in the interpretation or administration thereof by any governmental authority
charged with the interpretation or administration thereof, or compliance by the Lender with any request or directive (whether or
not having the force of law) of any such authority, shall make it unlawful or impossible for the Lender to honor its obligations
hereunder to make or maintain any Term Loan as a LIBO Rate Loan, the Lender shall forthwith give notice thereof to the Borrower.
Thereafter, (a) the obligations of the Lender to make or maintain any Term Loan as a LIBO Rate Loan and the right of the Borrower
to convert any Term Loan into, or continue any Term Loan as, a LIBO Rate Loan shall be suspended and thereafter only the Base Rate
shall be available, and (b) if the Lender may not lawfully continue to maintain any Term Loan as a LIBO Rate Loan, such Term Loan
shall immediately be converted to a Base Rate Loan.

 

    35

     

    

 

(c)               
No Obligation to Purchase Eurodollar Deposits. Anything to the contrary contained herein notwithstanding, Lender
is not required actually to acquire Eurodollar deposits to fund or otherwise match fund any Obligation as to which interest accrues
based on the LIBO Rate.

 

(d)               
Discretion of Lender as to Manner of Funding. Notwithstanding any provision of this Agreement to the contrary, Lender
shall be entitled to fund and maintain its funding of all or any part of its Term Loan in any manner it sees fit, it being understood,
however, that for the purposes of this Agreement all determinations hereunder shall be made as if Lender had actually funded and
maintained each LIBO Rate Loan during each Interest Period for a Term Loan through the purchase of deposits having a maturity corresponding
to such Interest Period and bearing an interest rate equal to the LIBO Rate for such Interest Period.

 

(e)               
Conclusiveness of Statements. Determinations and statements of Lender pursuant to this Section 2.04 shall be conclusive
absent demonstrable error.

 

SECTION 2.05.                      
Incremental Term Loans.

 

(a)               
From time to time until the 24-month anniversary of the Closing Date, subject to the terms and conditions set forth herein,
the Borrower may, upon written notice to the Lender (an “Incremental Term Loan Request”), elect to request that
the Lender make additional term loans to the Borrower (each, an “Incremental Term Loan”) in an aggregate amount
not to exceed $10,000,000 (and in a minimum amount of $1,000,000); provided that at the time of the effectiveness of each
Incremental Term Loan (i) no Default or Event of Default shall exist on such Increased Amount Date before or after giving effect
to such Incremental Term Loan, (ii) the Loan Parties shall be in compliance with the covenants set forth in Section 7.17
as of the Increased Amount Date before and after giving effect to such Incremental Term Loan, and (iii) each of the conditions
set forth in Section 3.03 shall have been satisfied. Each such notice shall specify the date (each, an “Increased
Amount Date”) on which Borrower proposes that an Incremental Term Loan shall be made, which date shall be at least fifteen
(15) Business Days after the date the respective notice was received by Lender. Each Incremental Term Loan shall rank pari passu
in right of payment, and shall have the same guarantees as, and be secured by the same Collateral securing, all of the other Obligations
hereunder.

 

(b)               
Any Incremental Term Loan (i) for purposes of prepayments, shall be treated the same as (and in any event no more favorably
than) the Initial Term Loan and the Delayed Draw Term Loan and (ii) shall have the same terms as the Initial Term Loan and
the Delayed Draw Term Loan. When repaid, the repaid portion of an Incremental Term Loan may not be re-borrowed.

 

(c)               
From and after the making of an Incremental Term Loan pursuant to this Section 2.05, such Incremental Term Loan shall
be deemed a “Term Loan” hereunder for all purposes hereof, and shall be subject to the same terms and conditions as
the other Term Loans.

 

(d)               
Each Incremental Term Loan Request shall set forth the requested amount and proposed terms of the requested Incremental
Term Loan.

 

ARTICLE III.  
CONDITIONS OF TERM LOANS

 

SECTION 3.01.                      
Initial Term Loan. Lender’s obligation to fund the Initial Term Loan is subject to its satisfactory completion
of due diligence prior to Parent or Borrower entering into this Agreement with Lender (including financial due diligence conducted
by a service provider of Lender’s choosing) and the satisfaction or waiver in writing of the following conditions precedent
prior to or contemporaneously with the making of the Initial Term Loan:

 

    36

     

    

 

(a)               
Documentation. Lender shall have received, in form and substance satisfactory to it and its counsel, each of the
following duly executed and delivered:

 

(i)              
each of the Loan Documents (other than any Loan Document required to be delivered under Section 3.02(a) prior to the Delayed
Draw Term Loan Funding Date);

 

(ii)             
from each Loan Party, a certificate of its secretary or assistant secretary of such Loan Party (solely in his or her capacity
as an officer and not individually) dated as of the Closing Date as to: (A) resolutions of its Board of Directors then in full
force and effect authorizing the execution, delivery and performance of each Loan Document to be executed by it; (B) its bylaws,
articles of association or operating agreement, a copy of which is attached; and (C) the incumbency and signatures of those of
its officers authorized to act with respect to the Loan Documents to be executed by it;

 

(iii)            
with respect to (1) each Loan Party (other than the Parent or any Loan Party that is an Israeli Subsidiary): (A) from the
Secretary of State (or other appropriate governmental official) of its jurisdiction of incorporation, a good standing certificate
and certified copy of its certificate of incorporation, and (B) a certificate of good standing as a foreign corporation from the
Secretary of State of each jurisdiction, if any, described in Section 6.01, in each case dated within ten (10) Business
Days of the Closing Date and (2) with respect to the Parent and any Loan Party that is an Israeli Subsidiary, an on-line extract
of such Person from the Israeli Registrar of Companies’;

 

(iv)            
evidence of the insurance coverage and endorsements required by Section 7.13;

 

(v)             
formal approval of the transactions contemplated herein by Lender’s Investment Committee;

 

(vi)            
an officer’s certificate of SPE Guarantor certified by an officer of the SPE Guarantor (solely in his or her capacity
as an officer and not individually) that the SPE Guarantor’s Organizational Documents (i) include provisions concerning the
conduct of business of the SPE Guarantor in the form attached hereto as Exhibit J (the “Conduct of Business Provisions”);
and (ii) prohibit amendment of the Conduct of Business Provisions without Lender’s consent;

 

(vii)           
evidence of the third-party consents listed on Schedule 6.03;

 

(viii)          
a customary legal opinion from New York, Delaware, California, Nevada and Israeli counsel to the Loan Parties;

 

(ix)            
an Initial Term Loan Request fully completed and duly executed by the Borrower no later than one (1) Business Day prior
to the Closing Date; and

 

(x)             
such other documents and information as Lender may reasonably require.

 

(b)               
Financial Condition. There is no event or circumstance that has occurred or that could reasonably be expected to
have a Material Adverse Effect.

 

    37

     

    

 

(c)               
Fees and Expenses. Payment of all fees payable on the Closing Date and payment of the Lender Expenses to the extent
invoiced (but limited in the case of Lender Expenses incurred by the Lender in connection with the preparation, negotiation and
delivery of the Loan Documents on or prior to the Closing Date, to an amount not to exceed $[●]), plus such additional amounts
of such fees, charges and disbursements as shall constitute Lender’s reasonable estimate of such fees, charges and disbursements
incurred or to be incurred by it through the Closing Date (provided that such estimate shall not thereafter preclude a final settling
of accounts between the Borrower and the Lender).

 

(d)               
Representations and Warranties. The representations and warranties of each Loan Party contained in each Loan Document
or in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all respects
on and as of the Closing Date (except to the extent any such representations and warranties expressly relate to an earlier date,
in which case such representations and warranties shall be true and correct as of such date).

 

(e)               
Absence of Default. No Default or Event of Default exists or would result from the proposed credit extension or the
application of the proceeds thereof and no event or circumstance exists that can reasonably be expected to have a Material Adverse
Effect; provided, that, Borrower’s transfer of a portion of its assets to SPE Guarantor in accordance with the Patent
Assignment Agreement shall not constitute a Material Adverse Effect.

 

(f)                
No Material Adverse Effect. Both immediately before and after giving effect to the receipt of Initial Term Loan proceeds,
there has not been a Material Adverse Effect since December 31, 2017.

 

(g)               
Officer’s Certificate. Lender’s receipt of an officer’s certificate of Borrower, certifying (solely
in his or her capacity as an officer and not individually) that the conditions specified in Sections 3.01(d), (e),
(f), (i) and (j) have been satisfied.

 

(h)               
Assigned Patent Rights. The Lender shall have received duly executed copies of the Patent Assignment Agreement, the
Patent License Agreement (Fortress) and Patent License Agreement (Loan Parties).

 

(i)                
[Intentionally Omitted].

 

(j)                
Maximum EBITDA Leverage Ratio. The Borrower shall demonstrate in form and substance reasonably satisfactory to Lender
that on the Closing Date and immediately after giving effect to the making of the Initial Term Loan and the payment of all Transaction
Costs required to be made on the Closing Date, the EBITDA Leverage Ratio is not greater than 2.25:1.00; provided that, solely
for purposes of calculating the EBITDA Leverage Ratio in this clause (j), Consolidated Adjusted EBITDA shall be deemed to
be Consolidated Adjusted EBITDA for the two-fiscal quarter period ending on June 30, 2018 multiplied by 2.

 

(k)               
Maximum Revenue Leverage Ratio. The Borrower shall demonstrate in form and substance reasonably satisfactory to Lender
that on the Closing Date and immediately after giving effect to the making of the Initial Term Loans and the payment of all Transaction
Costs required to be made on the Closing Date, the Revenue Leverage Ratio is not greater than 0.20:1.00.

 

    38

     

    

 

SECTION 3.02.                      
Delayed Draw Term Loan. Lender’s funding of the Delayed Draw Term Loan is subject to the satisfaction or waiver
in writing of the following conditions precedent prior to or contemporaneously with the making of the Delayed Term Loan:

 

(a)               
Documentation. Lender shall have received, in form and substance satisfactory to it and its counsel, each of the
following duly executed and delivered originally signed versions of:

 

(i)              
each Israeli Floating Charge;

 

(ii)             
each Israeli Share Charge;

 

(iii)            
each Israeli IP Fixed Charge;

 

(iv)            
a certificate of accuracy in respect of each Israeli Floating Charge and each Israeli Share Charge, in each case appending
a Hebrew translation of such Israeli Security Document;

 

(v)             
a Form 10 in respect of each Israeli Floating Charge and each Israeli Share Charge;

 

(vi)            
a Form 1 in respect of each Israeli IP Fixed Charge;

 

(vii)           
a customary legal opinion from Israeli counsel to the Parent and the Israeli Subsidiaries that are Loan Parties;

 

(viii)           payoff letters in form and substance satisfactory to Lender in respect of the payment in full Management Loans and termination
of the commitments to lend thereunder, each of which will be paid in full substantially concurrently with the funding of the Delayed
Draw Term Loan to be made on the Delayed Draw Term Loan Funding Date; and

 

(ix)             
such other documents and information as Lender may reasonably request.

 

(b)               
Financial Condition. There is no event or circumstance that has occurred or that could reasonably be expected to
have a Material Adverse Effect.

 

(c)               
Fees and Expenses. Payment of all fees payable on the Delayed Draw Term Loan Funding Date and payment of the Lender
Expenses to the extent invoiced, plus such additional amounts of such fees, charges and disbursements as shall constitute Lender’s
reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the Delayed Draw Term Loan
Funding Date (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrower and the
Lender).

 

(d)               
Representations and Warranties. The representations and warranties of each Loan Party contained in each Loan Document
or in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all respects
on and as of the Delayed Draw Term Loan Funding Date (except to the extent any such representations and warranties expressly relate
to an earlier date, in which case such representations and warranties shall be true and correct as of such date).

 

    39

     

    

 

(e)               
Absence of Default. No Default or Event of Default exists or would result from the proposed credit extension or the
application of the proceeds thereof and no event or circumstance exists that can reasonably be expected to have a Material Adverse
Effect.

 

(f)                
No Material Adverse Effect. Both immediately before and after giving effect to the receipt of Delayed Draw Term Loan
proceeds, there has not been a Material Adverse Effect since December 31, 2017.

 

(g)               
Maximum EBITDA Leverage Ratio. The Borrower shall demonstrate in form and substance reasonably satisfactory to Lender
that on the Delayed Draw Funding Date and immediately after giving effect to the making of the Initial Term Loan and the payment
of all Transaction Costs required to be made on the Delayed Draw Funding Date, the EBITDA Leverage Ratio is not greater than 4.50:1.00;
provided that, solely for purposes of calculating the EBITDA Leverage Ratio in this clause (g), Consolidated Adjusted
EBITDA shall be deemed to be Consolidated Adjusted EBITDA for the two-fiscal quarter period ending on June 30, 2018 multiplied
by 2.

 

(h)               
Maximum Revenue Leverage Ratio. The Borrower shall demonstrate in form and substance reasonably satisfactory to Lender
that on the Closing Date and immediately after giving effect to the making of the Initial Term Loans and the payment of all Transaction
Costs required to be made on the Delayed Draw Funding Date, the Revenue Leverage Ratio is not greater than 0.40:1.00.

 

(i)                
Officer’s Certificate. Lender’s receipt of an officer’s certificate of Borrower, certifying (solely
in his or her capacity as an officer and not individually) that the conditions specified in Sections 3.02(d), (e),
(f), (g) and (h) have been satisfied.

 

SECTION 3.03.                      
Incremental Term Loans. Lender’s funding of any Incremental Term Loan is subject to the satisfaction or waiver
in writing of the following conditions precedent prior to or contemporaneously with the making of such Incremental Term Loan:

 

(a)               
Incremental Term Loan Request. Lender shall have received, in form and substance satisfactory to it and its counsel,
a fully executed Incremental Term Loan Request.

 

(b)               
Representations and Warranties. The representations and warranties of each Loan Party contained in each Loan Document
or in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material
respects (provided, that such materiality qualifier shall not be applicable to those representations and warranties qualified or
modified by materiality in the text thereof) on and as of the date of the applicable Incremental Term Loan Request and of the Increased
Amount Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case
they shall be true and correct in all material respects as of such earlier date.

 

(c)               
No Defaults. As of the date of the applicable Incremental Term Loan Request and of the Increased Amount Date, no
event shall have occurred and be continuing or would result from the funding of such Incremental Term Loan that would constitute
an Event of Default or a Default.

 

(d)               
Maximum EBITDA Leverage Ratio. The Borrower shall demonstrate in form and substance reasonably satisfactory to Lender
that on the date of the making of such Incremental Term Loan and immediately after giving effect to the making of the Incremental
Term Loans to be made on such date and the payment of all Transaction Costs required to be made on the applicable Increased Amount
Date, the EBITDA Leverage Ratio is not greater than 2.75:1.00.

 

    40

     

    

 

(e)               
Maximum Revenue Leverage Ratio. The Borrower shall demonstrate in form and substance reasonably satisfactory to Lender
that on the date of the making of such Incremental Term Loan and immediately after giving effect to the making of the Incremental
Term Loans to be made on such date and the payment of all Transaction Costs required to be made on the applicable Increased Amount
Date, the Revenue Leverage Ratio is not greater than 0.75:1.00.

 

ARTICLE IV.  
WARRANT

 

SECTION 4.01.                      
Warrant to Purchase Shares. Pursuant to the terms and conditions of the Warrant, Parent grants Lender, or a designated
Affiliate of Lender, the right to purchase shares in the Parent as more specifically set forth in the Warrant.

 

ARTICLE V.  
COLLATERAL

 

SECTION 5.01.                      
Security Interest in Collateral. As security for the full and prompt payment in cash and performance of the Obligations,
Parent and Borrower shall, and shall cause the other Loan Parties, to pledge to Lender all of their right, title and interest in
and to the applicable Collateral on the terms and conditions set forth in applicable Security Documents.

 

ARTICLE VI.  
REPRESENTATIONS AND WARRANTIES

 

Each of Parent and
Borrower represent and warrant to Lender that the following representations are true and complete as of the Closing Date, as of
the Delayed Draw Term Loan Funding Date and on each Increased Amount Date:

 

SECTION 6.01.                      
Existence, Qualification and Power. Each Loan Party and each Material Subsidiary thereof (a) is duly organized or formed,
validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization;
(b) has all requisite corporate power and authority and all requisite governmental licenses, authorizations, consents and approvals
to (i) own or lease its assets and carry on its business; and (ii) execute, deliver and perform its obligations under the Loan
Documents to which it is a party; (c) is duly qualified and is licensed and, as applicable, in good standing under the Laws of
each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification
or license; and (d) in respect of the Parent and any Loan Party that is an Israeli Subsidiary, it is not a “company in violation”
(“hevrah meferah”) (as defined in Section 362A of the Israel Companies Law, 1999) and it has not received notice
that it is expected to be registered as such.

 

SECTION 6.02.                      
Authorization; No Contravention. The execution, delivery and performance by each Loan Party of each Loan Document to
which it is a party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not
(a) contravene the terms of any of its Organization Documents, (b) conflict with or result in any breach or contravention of, or
the creation of any Lien under, or require any payment to be made under (i) any material Contractual Obligation to which it is
a party or affecting it or its properties or any of its Material Subsidiaries; or (ii) any order, injunction, writ or decree of
any Governmental Authority or any arbitral award to which it or its property is subject; or (c) violate any Law.

 

SECTION 6.03.                      
Governmental Authorization; Other Consents. Except as set forth in Schedule 6.03 and other than actions to perfect
security interests, no approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental
Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement
against, any Loan Party of this Agreement or any other Loan Document.

 

    41

     

    

 

SECTION 6.04.                      
Binding Effect. This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly
executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when
so delivered will constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that
is party thereto in accordance with its terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency,
reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally.

 

SECTION 6.05.                      
Financial Statements; No Material Adverse Effect. The Historical Financial Statements (a) were prepared in accordance
with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; (b) fairly present
in all material respects the financial condition of the Parent and its Subsidiaries as of the date thereof and their results of
operations for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except
as otherwise expressly noted therein subject, if applicable, to changes resulting from normal year-end adjustments; and (c) show
all material indebtedness and other liabilities, direct or contingent, of the Parent and its Subsidiaries as of the date thereof,
including liabilities for taxes, material commitments and Indebtedness. Since the date of the Historical Financial Statements,
there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected
to have a Material Adverse Effect, except as disclosed to Lender in writing pursuant to Schedule 6.05.

 

SECTION 6.06.                      
Litigation. Except as set forth on Schedule 6.06, there are no actions, suits, proceedings, claims or disputes
pending or, to the Knowledge of any Loan Party, threatened in writing, at Law, in equity, in arbitration or before any Governmental
Authority, by or against the Parent or any of its Material Subsidiaries or against any of their properties or revenues that purport
to affect or pertain to this Agreement or any other Loan Document, or any of the transactions contemplated hereby, with an amount
in controversy in excess of $500,000. Neither the Parent nor any of its Material Subsidiaries, nor any director or officer thereof,
is or has been the subject of any action involving a claim of violation of or liability under federal or state securities laws
or a claim of breach of fiduciary duty. The SEC has not issued any stop order or other order suspending the effectiveness of any
registration statement filed by the Parent or any Material Subsidiary under the Securities Act and Exchange Act, as applicable.

 

SECTION 6.07.                      
No Default. Neither any Loan Party nor any Material Subsidiary thereof is in default under or with respect to any material
Contractual Obligation. No Default has occurred and is continuing or would result from the consummation of the transactions contemplated
by this Agreement or any other Loan Document.

 

SECTION 6.08.                      
Ownership of Property; Liens. Parent and its Material Subsidiaries each has, in all material respects, good, indefeasible
and merchantable title to and ownership of its property free and clear of all Liens, except Permitted Liens.

 

SECTION 6.09.                      
Environmental Compliance. Parent and its Material Subsidiaries conduct in the ordinary course of business a review of
the effect of existing Environmental Laws and claims alleging potential liability or responsibility for violation of any Environmental
Law on their respective businesses, operations and properties, and as a result thereof the Borrower has reasonably concluded that
such Environmental Laws and claims could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

    42

     

    

 

SECTION 6.10.                      
Insurance. The properties of Parent and its Material Subsidiaries are insured with insurance companies that are not
Affiliates of the Loan Parties that, to their Knowledge, are financially sound and reputable, in such amounts (after giving effect
to any self-insurance reasonable and customary for similarly situated Persons engaged in the same or similar business as the Borrower
or applicable Material Subsidiary), with such deductibles and covering such risks as are customarily carried by companies engaged
in similar businesses and owning similar properties in localities where the Parent or the applicable Material Subsidiary operates.

 

SECTION 6.11.                      
Taxes. Parent and each Material Subsidiary has prepared and filed (or filed applicable extensions therefor) all tax
returns required to have been filed by Parent or such Material Subsidiary with all appropriate governmental agencies and paid all
taxes shown thereon or otherwise owed by it, other than any such taxes which the Parent or any Material Subsidiary are contesting
in good faith and for which adequate reserves have been provided and reflected in the Parent’s financial statements. The
charges, accruals and reserves on the books of the Parent in respect of taxes for all fiscal periods are adequate in all material
respects, and there are no material unpaid assessments against the Parent or any Material Subsidiary nor, to Parent’s or
Borrower’s Knowledge, any basis for the assessment of any additional taxes, penalties or interest for any fiscal period or
audits by any federal, state or local taxing authority. All taxes and other assessments and levies that the Parent or any Material
Subsidiary is required to withhold or to collect for payment have been duly withheld and collected and paid to the proper governmental
entity or third party when due, other than any such taxes which the Parent or any Material Subsidiary are contesting in good faith
and for which adequate reserves have been provided and reflected in the Parent’s financial statements. There are no tax liens
or claims pending or, to Parent’s or Borrower’s Knowledge, threatened in writing against the Parent or any Material
Subsidiary or any of their respective assets or property except in connection with any such taxes which the Parent or any Material
Subsidiary are contesting in good faith as provided in the immediately preceding sentence. There are no outstanding tax sharing
agreements or other such arrangements between the Parent and any Material Subsidiary or other corporation or entity.

 

SECTION 6.12.                      
ERISA Compliance.

 

(a)               
Except as would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect,
each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or state
Laws. Each Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from
the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the Knowledge
of the Borrower or Parent, nothing has occurred which would prevent, or cause the loss of, such qualification. The Borrower and
each ERISA Affiliate have made all required contributions to each Plan subject to Section 412 of the Code, and no application for
a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any
Plan.

 

(b)               
There are no pending or, to the Knowledge of the Borrower or Parent, threatened in writing claims, actions or lawsuits,
or action by any Governmental Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse
Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan.

 

(c)               
(i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension Liability;
(iii) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title W of
ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither the
Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which,
with the giving of notice under Section 4219 of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA with
respect to a Multiemployer Plan; and (v) neither the Borrower nor any ERISA Affiliate has engaged in a transaction that could be
subject to Section 4069 or 4212(c) of ERISA.

 

    43

     

    

 

SECTION 6.13.                      
Subsidiaries; Equity Interests. Parent has no Subsidiaries other than those specifically set forth on Schedule 6.13,
and all of the outstanding Equity Interests in such Subsidiaries have been validly issued, are fully paid and nonassessable and
are owned by a Loan Party in the amounts set forth on Schedule 6.13, free and clear of all Liens other than Permitted Liens.
Parent and its Subsidiaries have no equity investments in any other corporation or entity. All of the outstanding Equity Interests
of Parent and its Subsidiaries have been validly issued and are fully paid and nonassessable.

 

SECTION 6.14.                      
Margin Regulations; Investment Company Act. Each of Parent and the Borrower is not engaged nor will it engage, principally
or as one of its important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation
U issued by the Board of Governors of the Federal Reserve System of the United States), or extending credit for the purpose of
purchasing or carrying margin stock. None of Parent, the Borrower, any Person Controlling the Borrower, or any Subsidiary is or
is required to be registered as an “investment company” under the Investment Company Act of 1940, as amended.

 

SECTION 6.15.                      
Disclosure. No representation or warranty of Parent or any of its Subsidiaries contained in any Loan Document and none
of the statements contained in any other document, certificate, report, financial statement or written statement furnished to the
Lender by or on behalf of the Parent or any of its Subsidiaries pursuant to this Agreement contains any untrue statement of a material
fact or omits to state a material fact (known to Borrower, in the case of any document not furnished by it or on its behalf) necessary
in order to make the statements contained herein or therein not misleading in any material manner in light of the circumstances
in which the same were made. Any projections and pro forma financial information contained in such materials are based upon good
faith estimates and assumptions believed by the Parent to be reasonable at the time made.

 

SECTION 6.16.                      
Compliance with Laws. Each Loan Party and each Material Subsidiary thereof is in compliance in all material respects
with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties.

 

SECTION 6.17.                      
Intellectual Property.

 

(a)               
Schedule 6.17 sets forth a complete and accurate list of all: (i) issuances, registrations and applications for Intellectual
Property owned or exclusively licensed by Parent or a Subsidiary, indicating for each, as applicable, the title, jurisdiction,
record owner, and application or registration number; and (ii) Licenses to which Parent or any of its Subsidiaries is a party or
otherwise bound that are material to the conduct of the business of Parent or any Subsidiary or that involve any Assigned Patent
(each, a “Material License”).

 

(b)               
Except as set forth on Schedule 6.17, (x) Parent and each Subsidiary exclusively own all right, title and interest in and
to, or have a valid and enforceable right to use, free and clear of any Lien other than any Permitted Liens, all Intellectual Property
necessary for the conduct of its business as presently conducted and (y) other than as contemplated by the Patent Assignment Agreement,
no Intellectual Property is subject to any assignments, springing licenses, options, non-assertion agreements, earn-outs, monetization
agreements, profit and revenue sharing arrangements, derivative interests, fee and recovery splitting agreements, registered user
agreements, shop rights and covenants by Parent or any of its Subsidiaries not to sue third persons with respect to such Intellectual
Property. Parent or such Subsidiary has the power to bring and sustain actions and recover for past, present and future infringement
of such Intellectual Property without having to join any other third party and no provision of any Material License will materially
restrict the ability of Parent or such Subsidiary to pursue any monetization of such Intellectual Property. The conduct of the
business of Parent and each Subsidiary does not infringe, misappropriate, dilute, or otherwise violate the Intellectual Property
of any Person. No claim has been brought, is pending, or, to Borrower’s or Parent’s Knowledge, has been threatened,
by any Person (i) alleging that the conduct of the business of the Parent or a Subsidiary infringes, misappropriates, dilutes or
otherwise violates the Intellectual Property of any Person or (ii) challenging or questioning the validity, enforceability, ownership,
use, registrability or patentability of any Intellectual Property. Except as set forth on Schedule 6.17, no Person is, or is alleged
to be, infringing, misappropriating, diluting or otherwise violating any Intellectual Property of Parent or any Subsidiary.

 

    44

     

    

 

(c)               
All Material Intellectual Property is: (i) subsisting and has not been adjudged invalid or unenforceable, in whole or part,
and (ii) to the Knowledge of Borrower or Parent, valid, in full force and effect. Parent and each Subsidiary has taken commercially
reasonable steps to maintain, enforce and protect its Intellectual Property, including by requiring each employee, consultant and
independent contractor involved in the creation, development or authorship of any Intellectual Property to execute an agreement
pursuant to which such Person (x) agrees to protect the confidential information of Parent and each Subsidiary and (y) assigns
to Parent or a Subsidiary, as applicable, all rights in any Intellectual Property created in the course of his, her or its employment
or other engagement with Parent or a Subsidiary.

 

(d)               
Parent and each of its Subsidiaries has obtained and properly recorded previously executed assignments from inventors and
all other Persons for the Patents owned by it, including the Assigned Patents, as necessary to fully perfect its rights and title
therein in accordance with governing Law in each respective jurisdiction. To each Loan Party’s Knowledge, all inventors named
on the Patents are true and correct. Except as may be set forth on Schedule 6.17, there is no obligation imposed by a standards-setting
organization to license any of the Patents owned by Parent or its Subsidiaries, including the Assigned Patents.

 

(e)               
Except as set forth on Schedule 6.17, no Patent owned by Parent or any of its Subsidiaries, including the Assigned Patents,
has ever been found invalid, unpatentable, or unenforceable for any reason in any proceeding and Borrower and Parent have no Knowledge
of and has not received any notice or information of any kind suggesting that Patents owned by Parent or any of its Subsidiaries,
including the Assigned Patents, may be invalid, unpatentable, or unenforceable other than official notices from patent offices
in the course of patent prosecution. If any Assigned Patent is terminally disclaimed to another patent or patent application, all
patents and patent applications subject to such terminal disclaimer are included in the Assigned Patents. To the extent “small
entity” fees were paid to the United States Patent and Trademark Office for any Patent owned by Parent or any of its Subsidiaries,
including the Assigned Patents, such reduced fees were then appropriate because the payor qualified to pay “small entity”
fees at the time of such payment and specifically had not licensed rights in such Patent to an entity that was not a “small
entity”.

 

(f)                
Neither Parent nor any Subsidiary is in material breach of or default under the provisions of any of the Material Licenses,
or has received written notice of any such breach or default or the intention of the other party to terminate such License, nor
is there any event, fact, condition or circumstance which, with notice or passage of time or both, would constitute or result in
a material conflict, breach, default or event of default under, any of the foregoing.

 

(g)               
Neither Parent nor any Israeli Subsidiary owns or controls any IIA-Funded Know How and no security interest is being created
over any IIA-Funded Know-How by any Loan Party.

 

    45

     

    

 

SECTION 6.18.                      
Rights in Collateral; Priority of Liens. Each Loan Party owns the property granted by it as Collateral under the Loan
Documents, free and clear of any and all Liens in favor of third parties other than Permitted Liens. Upon (i) the proper filing
of the UCC financing statements, (ii) with respect to any Collateral consisting of Deposit Accounts, Securities Accounts or Securities
Entitlements, the Lender obtaining “control” over such Deposit Accounts, Securities Accounts or Securities Entitlements,
(iii) with respect to certificated securities representing pledged Equity Interests constituting Collateral, the Lender taking
possession of such certificated securities, (iv) with respect to the Israeli Loan Parties, filing in the appropriate form of any
Security Document being entered into by an Israeli Loan Party with the Israeli Registrar of Companies (including a Hebrew convenience
translation of any such Security Document) within 21 days of execution of such Security Document, (v) with respect to the Israeli
IP Fixed Charge, filing in the appropriate form of the Israeli IP Fixed Charge with the Israeli Registrar of Pledges and the Israeli
Registrar of Patents, Designs and Trademarks (the latter within 21 days of execution of the Israeli IP Fixed Charge) and (vi) all
other actions contemplated by the Security Documents all other actions contemplated by the Security Agreement, the Liens in the
Collateral granted to Lender pursuant to the Loan Documents will constitute valid and enforceable first, prior and perfected Liens
on the Collateral, subject only to Permitted Liens.

 

SECTION 6.19.                      
Solvency. Borrower is Solvent and Parent and its Subsidiaries on a consolidated basis are Solvent.

 

SECTION 6.20.                      
Business Locations; Taxpayer Identification Number. Set forth in Schedule 6.20 are: (a) a list of each location
where any Collateral is kept and each Loan Party’s chief executive office, exact legal name, U.S. taxpayer identification
number and organizational identification number. Except as set forth on Schedule 6.20, no Loan Party has during the five
(5) years preceding the Closing Date (i) changed its legal name; (ii) changed its state of formation; or (iii) been party to a
merger, consolidation or other change in structure.

 

SECTION 6.21.                      
Collateral. The Collateral includes, among other things, 99.8% of the Equity Interests of Borrower and 100% of the Equity
Interests of each Subsidiary of a Loan Party; provided that the Collateral includes only 65% of the total outstanding voting
Equity Interests of any first tier Subsidiary of a Loan Party (other than Parent) that is a CFC (and none of the Equity Interests
of any Subsidiary of such CFC).

 

SECTION 6.22.                      
Patriot Act; Sanctions; Export Controls; FCPA.

 

(a)               
To the extent applicable, each of Parent and its Subsidiaries is in compliance, in all material respects, with the Patriot
Act and the Prohibition on Money Laundering Law.

 

(b)               
Parent represents that neither Parent nor any of its Subsidiaries nor any director, officer or employee thereof, nor, to
its knowledge, any agent, affiliate or representative of Parent or any Subsidiary, is an individual or entity that is, or is owned
or controlled by a Person that is:

 

(i)              
listed in the annex to, or otherwise subject to the provisions of, Executive Order No. 13224 on Terrorist Financing effective
September 24, 2001 (the “Executive Order”) or listed in the Israeli Ministry of Defense register of designated
 "unlawful associations" and terrorist organizations, as well as individuals specifically declared as being involved in
designated terrorist activities (as updated from time to time);

 

(ii)             prohibited from dealing or otherwise engaging in any transaction by any laws with respect to terrorism or money laundering
(including the Israeli Anti-Terror Laws);

 

    46

     

    

 

(iii)            
engaged in “terrorism” as defined in the Executive Order;

 

(iv)            
the subject or target of any sanctions administered or enforced by the U.S. Department of the Treasury’s Office of
Foreign Assets Control (“OFAC”), the U.S. Department of State, the United Nations Security Council, the European
Union, the State of Israel or Her Majesty’s Treasury (collectively, “Sanctions”); or

 

(v)             
located, organized or resident in a country or territory that is the subject of comprehensive Sanctions (including, without
limitation, as of the date hereof, Cuba, Iran, Lebanon, North Korea, Sudan, Syria and the Crimea region of the Ukraine) (each a
 “Designated Jurisdiction”).

 

(c)               
Parent represents and covenants that it and its Subsidiaries will not, directly or, to its knowledge, indirectly, use the
proceeds of the Terms Loans, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner
or other Person:

 

(i)              
to fund or facilitate any activities or business (x) of or with any Person that, at the time of such funding or facilitation,
is the subject or target of Sanctions or (y) in any country or territory that, at the time of such funding or facilitation, is
the subject of comprehensive Sanctions; or

 

(ii)              
in any other manner that will result in a violation of Sanctions by any Person (including Lender or other party hereto).

 

(d)               
To the extent applicable, each of Parent and its Subsidiaries is in compliance with the Export Control Regulations. Parent
represents that neither Parent nor any of its Subsidiaries have engaged in transactions with, or exported any products, services
or associated technical data: (i) into (or to a national or resident of) Cuba, Iran, Lebanon, North Korea, Sudan, Syria, the Crimea
region of the Ukraine or any other country or territory to which the United States had embargoed exports or with which the United
States had proscribed economic transactions as of the date of such export or transaction; or (ii) to any person or entity included
on the list of Specially Designated Nationals and Blocked Persons (each as defined and maintained by OFAC) or the Denied Persons
List (as defined and maintained by the U.S. Department of Commerce) as of the date of such transaction or export; or (iii) that
would otherwise constitute or give rise to a violation of the Export Control Regulations.

 

(e)               
Parent represents that neither Parent nor any of its Subsidiaries nor any director, officer or employee thereof, has taken
any action, directly or indirectly, that would result in a violation by any of the foregoing of the FCPA and the rules and regulations
thereunder or any other applicable anti-corruption law in any material respect. Parent represents that to its knowledge, no agent,
affiliate or representative of Parent or any Subsidiary has taken any action, directly or indirectly, that would result in a violation
by any of the foregoing of the FCPA and the rules and regulations thereunder or any other applicable anti-corruption law.

 

(f)                
Parent represents that the proceeds of the Term Loans will not be used by Parent or any of its Subsidiaries for any payments
to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone
else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage in violation
of the FCPA or any other applicable anti-corruption law in any material respect.

 

    47

     

    

 

ARTICLE VII.  
AFFIRMATIVE COVENANTS

 

Until the Obligations
have been fully satisfied in cash and Lender’s commitment to advance credit has expired, each of Borrower and Parent shall,
and shall (except in the case of the covenants set forth in Sections 7.02 and 7.03) cause each of their Material
Subsidiaries to:

 

SECTION 7.01.                      
Compliance with Laws. Comply in all material respects with all applicable laws, rules, regulations, orders and decrees
of all Governmental Authorities.

 

SECTION 7.02.                      
Financial Statements. Deliver to Lender, in form and detail satisfactory to Lender:

 

(a)               
as soon as available, but in any event within 180 days after the end of each fiscal year of the Parent, a consolidated balance
sheet of the Parent and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, such consolidated statements
to be audited and accompanied by a report and opinion of PricewaterhouseCoopers or, if Parent decides to replace such firm, by
any other “big four” accounting firm or by such other independent certified public accountant of regionally recognized
standing reasonably acceptable to the Lender, which report and opinion shall be prepared in accordance with generally accepted
auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification
or exception as to the scope of such audit (the “Audited Financial Statements”);

 

(b)               
as soon as available, but in any event within 60 days after the end of each fiscal quarter (including, for the avoidance
of doubt, the last fiscal quarter of each fiscal year), a consolidated balance sheet of the Parent and its Subsidiaries as at the
end of such fiscal quarter, and the related consolidated statements of income or operations for such fiscal quarter and for the
portion of the Parent’s fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding
fiscal quarter of the previous fiscal year and corresponding portion of the previous fiscal year, all in reasonable detail and
prepared in accordance with GAAP, such consolidated statements to be certified by Parent’s chief executive officer, chief
financial officer or treasurer (solely in his or her capacity as an officer and not individually) as fairly presenting in all material
respects the financial condition and results of operations of the Parent and its Subsidiaries in accordance with GAAP, subject
only to normal year-end audit adjustments and the absence of footnotes;

 

(c)               
as soon as available, but in any event within 180 days after the end of each fiscal year of the Parent, annual operating
and financial projections approved by Parent’s Board of Directors and in a form acceptable to Lender.

 

SECTION 7.03.                      
Certificates; Other Information. Deliver to Lender, in form and detail reasonably satisfactory to Lender:

 

(a)               
concurrently with the delivery of the financial statements referred to in Section 7.02(a), a certificate of
independent certified public accountants certifying such financial statements;

 

(b)               
concurrently with the delivery of the financial statements referred to in Sections 7.02(a), (b) and (c),
a duly completed Compliance Certificate signed by the chief executive officer, chief financial officer or treasurer of Parent (solely
in his or her capacity as an officer and not individually) which shall include such supplements to each of the Schedules hereto
as are necessary such that, as supplemented, the relevant disclosures would be accurate and complete as of the date of such Compliance
Certificate;

 

    48

     

    

 

(c)               
promptly after any request by the Lender, copies of any detailed audit reports, management letters or recommendations submitted
to Parent’s Board of Directors (or the audit committee of the Board of Directors) by independent accountants in connection
with the accounts or books of Parent or any Subsidiary, or any audit of any of them;

 

(d)               
[reserved];

 

(e)               
promptly after the furnishing thereof, copies of any material statement or report furnished to any holder of debt or equity
securities of any Loan Party or any Subsidiary thereof pursuant to the terms of any indenture, loan or credit or similar agreement
and not otherwise required to be furnished to the Lender pursuant hereto;

 

(f)                
promptly, and in any event within ten (10) days after receipt thereof by Parent, Borrower or any Material Subsidiary thereof,
copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction)
concerning any investigation or possible investigation or other inquiry by such agency regarding financial or other operational
results of Parent, Borrower or any Material Subsidiary thereof to the extent permitted to be disclosed to third parties under applicable
Law; and

 

(g)               
promptly, such additional information regarding the business, financial or corporate affairs of Parent or any Subsidiary,
or compliance with the terms of the Loan Documents, as the Lender may from time to time reasonably request.

 

SECTION 7.04.                      
Notices. Promptly after a Responsible Officer of Parent or Borrower obtains Knowledge thereof notify the Lender:

 

(a)               
of the occurrence of any Default;

 

(b)               
of the occurrence of any ERISA Event;

 

(c)               
of any matter that has resulted or could reasonably be expected to result in a Material Adverse Effect, a Material Asset
Value Impact or a Material Adverse Loan Impact, including (i) breach or non-performance of, or any default under, a Contractual
Obligation of Parent or any Material Subsidiary; (ii) any dispute, litigation, investigation, proceeding or suspension between
Parent or any Material Subsidiary and any Governmental Authority; or (iii) the commencement of, or any material development in,
any litigation or proceeding affecting Parent or any Material Subsidiary, including pursuant to any applicable Environmental Laws;
and

 

(d)               
of any material change in accounting policies or financial reporting practices by Parent or any Subsidiary.

 

SECTION 7.05.                      
Payment of Obligations. Pay and discharge as the same shall become due and payable, (a) all tax liabilities, assessments
and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate
proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by Parent or such Material
Subsidiary, except to the extent that the failure to make such payments would not reasonably be expected to have a Material Adverse
Loan Impact; (b) all lawful claims which, if unpaid, would by Law become a Lien upon its property other than Permitted Liens, except
to the extent that the failure to make such payments would not reasonably be expected to have a Material Asset Value Impact; (c)
all Obligations, as and when due and payable subject to any applicable grace or cure periods and (d) all other obligations and
liabilities, except to the extent that the failure to make such payments would not reasonably be expected to have a Material Adverse
Loan Impact and/or a Material Asset Value Impact.

 

    49

     

    

 

SECTION 7.06.                      
Books and Records. Maintain proper books of record and account, in which full, true and correct entries shall be made
of all financial transactions and matters involving the assets and business of Parent or such Material Subsidiary, as the case
may be.

 

SECTION 7.07.                      
Inspection Rights. Permit representatives and independent contractors of the Lender to visit and inspect any of its
properties, to examine its corporate, financial and operating books and records, and make copies thereof or abstracts therefrom,
and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the
expense of the Loan Parties and at such reasonable times during normal business hours, upon reasonable advance notice to Borrower
not more than one (1) time each calendar year (in the absence of an Event of Default); provided, however, that (a)
when an Event of Default has occurred and is continuing, the Lender (or any of its respective representatives or independent contractors)
may do any of the foregoing as often as may be reasonably desired, at the expense of the Loan Parties at any time during normal
business hours and without advance notice; and (b) the Borrower shall not be required to pay the reasonable expenses of more than
one (1) visit and inspections during any calendar year unless an Event of Default has occurred and is continuing.

 

SECTION 7.08.                      
Litigation Cooperation. To the extent permitted by applicable Law, make available to Lender, without expense to Lender,
Parent, its Subsidiaries and their directors, officers, employees and agents and its corporate, financial and operating books and
records to the extent that Lender may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding
instituted by or against Lender with respect to any Collateral (including the Patent Rights) or the Obligations.

 

SECTION 7.09.                      
Use of Proceeds. Use the loan proceeds (a) for working capital, growth capital, capital expenditures and other general
corporate purposes, (b) to pay Transaction Costs, (c) to make Permitted Investments; acquisitions permitted by clause (xi)
of the definition of Permitted Investments, (d) solely with respect to the proceeds of the Initial Term Loans, for the payment
in full of the CB&T Loan, and (e) solely with respect to the proceeds of the Delayed Draw Term Loan, for the payment in full
of certain loans made to Parent and Borrower by certain members of the Loan Parties’ management team prior to the Closing
Date (the “Management Loans”). In no event shall the proceeds from a Term Loan be used in contravention of any
Law or of any Loan Document.

 

SECTION 7.10.                      
Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and effect its legal existence and good
standing under the Laws of the jurisdiction of its organization, except any such failure to remain in existence or good standing
that is remedied by the Parent, the Borrower or the applicable Material Subsidiary, as the case may be, in a manner that retroactively
reinstates such Person’s existence or good standing, as if such failure to remain in existence and/or good standing had not
occurred, no more than five (5) days following the revocation of such legal existence or good standing; (b) take all action to
maintain all rights, material privileges, permits, licenses and franchises reasonably necessary or desirable in the normal conduct
of its business, except in the case of any Material Subsidiary to the extent that the failure to do so would not reasonably be
expected to have a Material Adverse Loan Impact and/or a Material Asset Value Impact.

 

SECTION 7.11.                      
Maintenance of Properties. (a) Maintain or cause to be maintained in good repair, working order and condition (ordinary
wear and tear excepted) all material properties used or useful in the business of the Parent and its Material Subsidiaries and
from time to time will make or cause to be made all appropriate repairs, renewals and replacements thereof, except to the extent
that the failure to do so would not reasonably be expected to have a Material Asset Value Impact and (b) maintain, enforce and
protect all of the Material Intellectual Property, maintain and keep in full force and effect all issued or registered Material
Intellectual Property and continue to prosecute all applications for any Material Intellectual Property.

 

    50

     

    

 

SECTION 7.12.                      
Formation or Acquisition of Subsidiaries. At the time that any Loan Party (other than Parent) forms any direct or indirect
Material Subsidiary or acquires any direct or indirect Material Subsidiary after the date hereof, Borrower shall, or shall cause
such other Loan Party to (a) concurrently with such Material Subsidiary becoming a Material Subsidiary of the Borrower or such
other Loan Party, cause such new Material Subsidiary to become a Guarantor under the Guaranty and a “Grantor” under
the Security Agreement by executing a joinder to the Guaranty and a joinder to the Security Agreement, in each case in form and
substance satisfactory to the Lender; provided that a joinder to the Guaranty and the Security Agreement shall not be required
to be provided to Lender with respect to any such Material Subsidiary that is a CFC or a Subsidiary of a CFC, (b) take all such
actions and execute and deliver, or cause to be executed and delivered, all such documents, instruments, agreements and certificates
as are required under the Guaranty and Security Agreement, such other documents, instruments, agreements and certificates set forth
in Sections 3.01(a)(ii), (iii), (iv), (vii) and (viii) and Section 3.01(g) and, for any Israeli Subsidiary
or Subsidiary organized under the laws of any non-U.S. jurisdiction, Section 3.01(i), to grant to Lender a first priority
Lien (subject to Permitted Liens) on substantially all of the assets of such Material Subsidiary and to pledge to Lender 100% the
Equity Interests of such Subsidiary, all of the foregoing in form and substance satisfactory to the Lender; provided that
only 65% of the total outstanding voting Equity Interests of any first tier Subsidiary of a Loan Party (other than Parent) that
is a CFC (and none of the Equity Interests of any Subsidiary of such CFC) shall be required to be pledged (which pledge, if reasonably
requested by Lender, shall be governed by the laws of the jurisdiction of such Subsidiary), and (c) to the extent reasonably requested
by the Lender, provide to the Lender all other documentation in form and substance reasonably satisfactory to the Lender (including
additional local law security, if applicable), including one or more opinions of counsel reasonably satisfactory to the Lender,
which in its opinion is customary with respect to the execution and delivery of the applicable documentation referred to above.
Any document, agreement, or instrument executed or issued pursuant to this Section 7.12 shall be a Loan Document.

 

SECTION 7.13.                      
Insurance. Keep its business insured for risks as may customarily be carried or maintained under similar circumstances
by Persons of established reputation engaged in similar businesses of a similar size, in each case in such amounts, with such deductibles,
covering such risks and otherwise on such terms and conditions as shall be customary for such Persons. (i) All property policies
of the Parent and its Material Subsidiaries shall have a lender’s loss payable endorsement showing Lender as a lender loss
payee and waive subrogation against the Lender; (ii) all liability policies of Parent and its Material Subsidiaries shall show,
or have endorsements showing, the Lender as an additional insured; and (iii) all policies of the Parent and its Material Subsidiaries
(or their respective endorsements) shall provide that the insurer shall give the Lender at least thirty (30) days’ notice
before canceling, amending, or declining to renew its policy. At the Lender’s request, Parent and its Material Subsidiaries
shall deliver certified copies of policies and evidence of all premium payments. If the Borrower fails to obtain insurance as required
under this Section 7.13 or to pay any amount or furnish any required proof of payment to third persons and the Lender, the
Lender may upon concurrent notice to the Parent make all or part of such payment or obtain such insurance policies required in
this Section 7.13, and take any action under the policies the Lender reasonably deems prudent.

 

    51

     

    

 

SECTION 7.14.                      
Further Assurances. The Loan Parties shall, at their own expense, execute any further instruments and take further action
as Lender reasonably requests to perfect or continue Lender’s Lien in the Collateral or to effect the purposes of this Agreement.

 

SECTION 7.15.                      
SPE Compliance. SPE Guarantor shall comply with, and Borrower shall use best efforts, to the full extent of its power
and obligations as an equity holder of SPE Guarantor, to comply, with the Conduct of Business Provisions.

 

SECTION 7.16.                      
Post-Closing Obligations. The Loan Parties shall deliver, or cause to be delivered, to Lender, or otherwise complete
to Lender’s reasonable satisfaction, the items set forth on Schedule 7.16 on or before the date specified for such
item or such later date determined by Lender in its sole discretion.

 

SECTION 7.17.                      
Financial Covenants.

 

(a)               
Minimum Liquidity. The Loan Parties shall have a minimum of $1,500,000 of Unrestricted Cash-on-Hand at all times,
and shall provide monthly certifications with respect thereto at the end of each calendar month in form and substance satisfactory
to Lender.

 

(b)               
Minimum Debt Service Coverage Ratio. Loan Parties shall not permit the Debt Service Coverage Ratio, as of the last
day of any fiscal quarter of Parent and its Subsidiaries, beginning with the fiscal quarter ending September 6, 2018, to be less
than 1.15:1.00.

 

(c)               
Total EBITDA Leverage Ratio. Loan Parties shall not permit the EBITDA Leverage Ratio as of the last day of any fiscal
quarter of Parent and its Subsidiaries, beginning with the fiscal quarter ending September 30, 2018, to exceed the correlative
ratio below:

 

	
        Fiscal Quarter

        Ending
	EBITDA Leverage

Ratio
	September 30, 2018	4.50:1.00
	December 31, 2018	4.50:1.00
	March 31, 2019	4.00:1.00
	June 30, 2019	4.00:1.00
	September 30, 2019	4.00:1.00
	December 31, 2019	4.00:1.00
	March 31, 2020 and thereafter	3.50:1.00

 

 

    52

     

    

 

SECTION 7.18.                      
Patents and Patent Rights.

 

(a)               
Borrower shall not waive or modify, and shall use best efforts not to suffer the waiver or modification of, any legal rights
of a material nature arising out of or relating to the Patent Rights without the express prior written consent of Lender.

 

(b)               
Borrower shall be liable to Lender for (and shall pay Lender within fifteen (15) days of delivery by Lender of any demand
or invoice for) any reasonable expenditures by Lender in connection with (i) the maintenance and preservation of the Collateral,
including, but not limited to, taxes, recording fees, appraisal fees, certificate of title charges, recording and filing fees (including
UCC financing statement fees, taxes (including documentary stamps) and search fees), fees arising out of or relating to the Patent
Rights, the reasonable fees and disbursements of Lender’s outside counsel, levies, insurance and repairs; and (ii) in addition
to damages for breach of warranty, misrepresentation, or breach of covenant by Borrower, the enforcement of this Agreement and
the Loan Documents as a result of such breach or misrepresentation, including, but not limited to, the repossession, holding, preparation
for sale, and the sale of the Collateral (including reasonable attorneys’ and accountants’ fees and expenses), and
all such liabilities shall be included in the definition of Obligations, shall be secured by the security interest granted herein,
and shall be payable upon demand.

 

(c)               
Borrower and Parent shall use its best efforts to ensure that no standards-setting organization shall impose an obligation
to license any of the Patents owned by Parent and its Material Subsidiaries, including the Assigned Patents, on particular terms
or conditions. Borrower shall not agree to be subject to any covenant not to sue or other restrictions on its enforcement or enjoyment
of the Patent Rights without Lender’s consent.

 

(d)               
Borrower does not know of and has not received any notice or information of any kind suggesting that the Patents owned by
Parent and its Material Subsidiaries, including the Assigned Patents, may be invalid, unpatentable, or unenforceable other than
(i) official notices from patent offices in the course of patent prosecution and (ii) allegations from third parties in litigation
involving, or invited to take a license under, certain Patents owned by Parent and its Material Subsidiaries, including the Assigned
Patents.

 

(e)               
All applications to Patent any Intellectual Property that is owned by Borrower or Parent (or any of its Material Subsidiaries)
shall be filed in the name of SPE Guarantor, and (i) Parent shall, or shall cause any of its Material Subsidiaries to, file all
documents and take such other actions as shall be necessary or reasonably requested by Lender to assign all right, title and interest
in and to such patent application, and all related Trade Secrets, to Parent or any of its Material Subsidiaries, including the
execution of, and recording with the relevant filing office of, an assignment in the form of the Patent Assignment Agreement with
respect to such patent application, and all related Trade Secrets, and (ii) such Patent application shall automatically be deemed
an Assigned Patent and such Trade Secrets shall automatically be deemed Assigned Trade Secrets hereunder, and Borrower, Parent
and each of its Material Subsidiaries, as applicable, hereby assign to SPE Guarantor all right, title, and interest in and to such
Patent applications and Trade Secrets.

 

(f)                
All Patents acquired by Borrower or Parent (or any of its Material Subsidiaries) from any other Person, or which any right,
title or interest arises in Parent (or any of its Material Subsidiaries), shall be assigned to and held in the name of Borrower
and (i) Parent shall, or shall cause any of its Material Subsidiaries to, file all documents and take such other actions as shall
be necessary or reasonably requested by Lender to cause all right, title and interest in and to such Patents, and all related Trade
Secrets, to vest in SPE Guarantor, including the execution of, and recording with the relevant filing office of, a Patent Assignment
Agreement with respect to such Patents, and all related Trade Secrets, and (ii) such Patents shall automatically be deemed Assigned
Patents and such Trade Secrets shall automatically be deemed Assigned Trade Secrets hereunder and shall be owned by SPE Guarantor
together with all Assigned Patent Rights associated therewith, and Borrower, Parent and each of their Material Subsidiaries, as
applicable, hereby assign to SPE Guarantor all right, title, and interest in and to such Patents and Trade Secrets.

 

(g)               
All Patents that are material to the conduct of the business of Parent and its Subsidiaries shall be owned by a Loan Party.

 

    53

     

    

 

ARTICLE VIII.  
NEGATIVE COVENANTS

 

Until the Obligations
have been fully satisfied in cash and Lender’s commitment to advance credit has expired, Parent and Borrower shall not, nor
shall they permit any Material Subsidiary to, directly or indirectly:

 

SECTION 8.01.                      
Dispositions. Transfer, or permit any of its Material Subsidiaries to Transfer, in one transaction or a series of transactions,
all or any part of their or their Material Subsidiary’s business, property or assets except for (a) Alvarion Patent Dispositions
and (b) transfers (i) of worn-out or obsolete equipment; (ii) in connection with Permitted Liens, investments, and any dividends
or distributions not prohibited by this Agreement; (iii) of nonexclusive licenses for the use of the property of Parent or its
Material Subsidiaries in the ordinary course of business; (iv) of cash or cash equivalents in a manner that is not prohibited by
the terms of this Agreement; (v) pursuant to the Patent Assignment Agreement, the Patent License Agreement (Fortress) and the Patent
License Agreement (Loan Parties); and (vi) of inventory in the ordinary course of business; and (vii) of other property (other
than Intellectual Property) for a purchase price equal to or greater than the greater of (x) fair market value and (y) 1.25x the
original purchase price paid by Borrower or such Material Subsidiary (as determined by Lender in its reasonable discretion) and
in an aggregate amount not to exceed $2,000,000 in any fiscal year of Parent. Notwithstanding the foregoing or anything else herein
to the contrary, Borrower shall not Transfer the Assigned Patent Rights and neither Parent nor any of its Subsidiaries shall Transfer
its rights under the Patent License Agreement (Fortress) or the Patent License Agreement (Loan Parties) without Lender’s
prior written consent (in its sole and absolute discretion).

 

SECTION 8.02.                      
Changes in Business, Management, Ownership, or Business Locations. (a) Engage in or permit any of its Material Subsidiaries
to engage in any business other than the businesses engaged in by Parent and such Material Subsidiary, as applicable, on the Closing
Date and other business activities complementary, incidental or related thereto; (b) liquidate or dissolve, except that any Material
Subsidiary that is not a Loan Party may liquidate or dissolve and any Material Subsidiary that is a Loan Party may liquidate or
dissolve so long as the assets of such Loan Party are transferred to another Loan Party; or (c) change Parent’s chief executive
officer where Parent’s Board of Directors does not replace such officer with at least a Board-approved interim chief executive
officer within ninety (90) days of such change and a Board-approved permanent replacement chief executive officer within two hundred-forty
(240) days of such change. Neither Parent nor Borrower shall, (1) without at least five (5) days prior written notice to Lender
(or such shorter period as it may agree), add any new offices or business locations (unless such new offices or business locations
contain less than $100,000 of any Loan Party’s property), (2) without at least thirty (30) days prior written notice to Lender
(or such shorter period as it may agree); (i) change its jurisdiction of organization; (ii) change its organizational structure
or type; (iii) change its legal name; or (iv) change any organizational number (if any) assigned by its jurisdiction of organization
or (3) without the consent of the Lender, enter into any agreement or arrangement with the Israeli Tax Authority (the “ITA”)
for payment in instalments or rescheduling of amounts due to the ITA (“Hesder Prisah”).

 

    54

     

    

 

SECTION 8.03.                      
Mergers or Acquisitions. Consummate a Business Combination (except for a Permitted Investment) without obtaining the
written consent of the Lender (in its sole and absolute discretion); except (i) any Subsidiary of Parent (other than the Borrower
or the SPE Guarantor) may be merged with or into Borrower or any Guarantor (other than Parent or the SPE Guarantor), or be liquidated,
wound up or dissolved, or all or any part of its business, property or assets may be conveyed, sold, leased, transferred or otherwise
disposed of, in one transaction or a series of transactions, to Borrower or any Guarantor (other than the SPE Guarantor); provided,
in the case of such a merger, Borrower or such Guarantor, as applicable shall be the continuing or surviving Person and (ii) any
non-Loan Party Subsidiary of Parent may be merged with or into any other non-Loan Party Subsidiary of Parent.

 

SECTION 8.04.                      
Liens. Create, incur, assume or suffer to exist any Lien, except Permitted Liens, upon any of its property, assets or
revenues, whether now owned or hereafter acquired.

 

SECTION 8.05.                      
Distributions; Investments. (a) Pay any dividends or make any distribution or payment or redeem, retire or purchase
any of its capital stock; provided, that (i) Parent may convert any of its convertible securities into other securities
that do not constitute Disqualified Equity Interests pursuant to the terms of such convertible securities or otherwise in exchange
thereof, (ii) Parent may pay dividends solely in common stock, (iii) Parent may repurchase the stock of former employees or consultants
pursuant to stock repurchase agreements so long as an Event of Default does not exist at the time of such repurchase and would
not exist after giving effect to such repurchase, provided, that such repurchases do not exceed in the aggregate $50,000
per fiscal year or (iv) Subsidiaries of Parent may make distributions to Parent, Lender or an Affiliate of Lender or (b) directly
or indirectly make any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so.

 

SECTION 8.06.                      
Transactions with Affiliates. Enter into or permit to exist any transaction (including the purchase, sale, lease or
exchange of any property or the rendering of any service) with any Affiliate of a Loan Party on terms that are less favorable to
Parent or that Subsidiary, as the case may be, than those that might be obtained at the time from Persons who are not such an Affiliate
other than any transactions between the Loan Parties expressly permitted hereunder.

 

SECTION 8.07.                      
Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination,
intercreditor, or other similar agreement to which such Subordinated Debt is subject, such agreements to be in form and substance
satisfactory to Lender in its sole discretion or (b) amend any provision in any document relating to the Subordinated Debt which
would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Lender.

 

SECTION 8.08.                      
Compliance. Become an “investment company” or a company controlled by an “investment company”
under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase
or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds
of a Term Loan for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited
Transaction (as defined in ERISA), to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other Law
or regulation, if the violation could reasonably be expected to have a Material Adverse Effect on Borrower’s business, or
permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation in, permit partial or
complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred
compensation plan which could reasonably be expected to result in any liability of Borrower in excess of $50,000, including any
liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency.

 

    55

     

    

 

SECTION 8.09.                      
Indebtedness. Create or suffer to exist any Indebtedness, other than Permitted Indebtedness.

 

SECTION 8.10.                      
Amendments to Organization Documents, Patent Assignment Agreement or Patent License Agreement. Amend, or permit the
amendment of, Parent’s, or any of its Subsidiaries’, Organization Documents in a manner adverse to the Lender or amend,
or permit the amendment of, the Patent Assignment Agreement or the Patent License Agreement (Loan Parties).

 

SECTION 8.11.                      
Sanctions. Use the proceeds of a Term Loan, or lend, contribute or otherwise make available proceeds of a Term Loan
to any Subsidiary of the Borrower or Parent, joint venture partner or other individual or entity, directly, or knowingly indirectly,
(a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of
value, to any Person in violation in any material respect of the United States Foreign Corrupt Practices Act of 1977, the UK Bribery
Act 2010, the Prohibition on Money Laundering Law, and other similar anti-corruption legislation in other jurisdictions to the
extent applicable to the Loan Parties or (b) to fund any activities of or business with any individual or entity, or in any Designated
Jurisdiction, that, at the time of such funding, is the subject of Sanctions in material violation thereof, or in any other manner
that will result in a material violation by an individual or entity (including any individual or entity participating in the transactions
contemplated hereby or otherwise) of Sanctions.

 

ARTICLE IX.  
EVENTS OF DEFAULT.

 

SECTION 9.01.                      
Events of Default. Any one of the following shall constitute an event of default (an “Event of Default”):

 

(a)               
Payment Default. A Loan Party fails to (i) make any payment of principal or interest on the Term Loans within five
(5) days after the due date therefor or (ii) pay any other payment Obligation and such default shall continue unremedied for a
period of five (5) days after the date when due and payable or when declared due and payable in accordance with this Agreement.

 

(b)               
Representations and Warranties. Any representation, warranty, certification or other statement made in writing (including
via email) by Parent or any of its Subsidiaries in any Loan Document or in any written statement (including via email) or certificate
at any time given by the Parent or any of its Subsidiaries pursuant hereto or thereto or in connection herewith or therewith shall
have been false in any material respect on the date as of which made (other than with respect to any projections or forward-looking
statements, unless such projections or forward-looking statements were intentionally misleading when made or were not based on
good faith estimates and assumptions of the management of Parent).

 

(c)               
Specific Covenants.

 

(1)              A Loan Party fails to deliver any item required in Sections 7.02 or 7.03 (other than 7.03(g))
or fails to perform or observe any term, covenant or agreement contained in Sections 7.04 (other than 7.04(d)), 7.07,
7.09, 7.10(a) (solely with respect to the legal existence of the Borrower), 7.12, 7.15, 7.16,
7.17 or 7.18 or Article 8,

 

(2)              a Loan Party fails to perform or observe any term, covenant or agreement contained in Sections 7.03(g), 7.04(d),
7.12 and such failure continues for fourteen (14) days, or

 

    56

     

    

 

(3)              any Guarantor fails to perform or observe any term, covenant or agreement contained in its Guaranty and such failure continues
for fourteen (14) days.

 

(d)               
Other Defaults. Any Loan Party fails to perform or observe any other covenant or agreement (not specified in Sections
9.01(a), 9.01(b), or 9.01(c)) contained in any Loan Document on its part to be performed or observed and such
failure continues for thirty (30) days.

 

(e)               
Cross-Default.

 

(1)              Parent or any of its Material Subsidiaries shall fail to pay when due (after giving effect to any applicable grace period)
any principal of or interest on or any other amount payable in respect of one or more items of Indebtedness in an individual principal
amount of $150,000 or more or with an aggregate principal amount of $150,000 or more; or

 

(2)              
The breach or default (after giving effect to any applicable grace period) by Parent or any of its Material Subsidiaries
with respect to any other term of (a) one or more items of Indebtedness in the individual or aggregate principal amounts referred
to in clause (i) above or (b) any loan agreement, mortgage, indenture or other agreement relating to such item(s) of Indebtedness,
if the effect of such breach or default is to cause, or to permit the holder or holders of that Indebtedness (or a trustee on behalf
of such holder or holders) to cause, that Indebtedness to become or be declared due and payable prior to its stated maturity or
the stated maturity of any underlying obligation, as the case may be (upon the giving or receiving of notice, lapse of time, both,
or otherwise).

 

(f)                
Restraint on Business. (a) Any Loan Party shall be
enjoined, restrained or in any way prevented by the order of any Governmental Authority from conducting any material part of the
business of such Loan Party and such order shall continue in effect for more than thirty (30) days thereafter, (b) there shall
occur any damage to, or loss, theft, attachment, levy or destruction of, any material part of the Collateral, whether or not insured,
or (c) any strike, lockout, labor dispute, embargo, condemnation, act of God or public enemy or terrorism, or other casualty, which
in any such case causes, for more than fifteen (15) consecutive days, the cessation or substantial curtailment of revenue producing
activities of a Loan Party if such event or circumstance is not covered by business interruption insurance and would have a Material
Adverse Effect.

 

(g)               
Asset Seizure. (i) Any material portion of any Loan Party’s assets is attached, seized, levied on, or comes
into possession of a trustee or receiver; or (ii) any court order enjoins, restrains, or prevents any Loan Party from conducting
any material part of its business, in each case, as to each of clauses (i) and (ii), which event continues in existence
and is not remedied, dismissed or stayed for thirty (30) days after the date when such event first occurred.

 

(h)               
Insolvency Proceedings. (i) Parent or any of its Subsidiaries institutes, or consents to, or cooperates or colludes
with a third party regarding, the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors, or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator
or similar officer for it or for all or any material part of its property; (ii) any receiver (temporary or permanent), trustee,
custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Person;
or (iii) any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property
is instituted without the consent of such Person or an order for relief is entered in any such proceeding, in each case with respect
to clauses (ii) and (iii) above which event continues in existence and is not remedied, dismissed or stayed for sixty
(60) days after the date when such event first occurred.

 

    57

     

    

 

(i)                
Inability to Pay Debts. Parent or any of its Subsidiaries becomes unable or admits in writing its inability or fails
generally to pay its debts as they become due and such circumstance, event or failure continues in existence and is not remedied
for thirty (30) days after the date when such circumstance, event or failure first occurred or came into existence.

 

(j)                
Judgments. Any money judgment, writ or warrant of attachment or similar process involving (i) in any individual case
an amount in excess of $300,000 over the amount covered by independent third-party insurance as to which liability has been accepted
by the applicable insurance carrier or (ii) in the aggregate at any time an amount in excess of $300,000 over the amount covered
by independent third-party insurance as to which liability has been accepted by the applicable insurance carrier, shall be entered
or filed against Parent or any of its Material Subsidiaries or any of their respective assets and shall remain undischarged, unvacated,
unbonded or unstayed for a period of sixty (60) days (or in any event later than five days prior to the date of any proposed sale
thereunder).

 

(k)               
Change of Control. A Change of Control occurs.

 

(l)                
ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could
reasonably be expected to result in liability of a Loan Party under Title W of ERISA to the Pension Plan, Multiemployer Plan or
the PBGC in an aggregate amount in excess of $250,000 and such ERISA Event continues in existence and is not remedied for thirty
(30) days after actual or constructive notice of the occurrence thereof, or (ii) a Loan Party or any ERISA Affiliate fails to pay
when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability
under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of $250,000 and such failure to pay continues
in existence and is not remedied for sixty (60) days after the date when such payment was due.

 

(m)             
Invalidity of Loan Documents. (i) Any material provision of any Loan Document, at any time after its execution and
delivery and for any reason other than as expressly permitted hereunder or thereunder or prior to satisfaction in full of all the
Obligations, ceases to be in full force and effect; (i) any Loan Party (1) contests in any manner the validity or enforceability
of any Loan Document as a whole or (2) unsuccessfully contests the asserted applicability by Lender of any specific provision of
any Loan Document; or (iii) any Loan Party wrongfully denies that it has any or further liability or obligation under any Loan
Document, or purports to revoke, terminate or rescind any Loan Document.

 

(n)               
Intellectual Property. (i) Parent or any of its Subsidiaries (including the SPE Guarantor’s obligations under
Section 5.07 of the SPE Operating Agreement) fails to make timely payment of maintenance fees, annuities or the like for any Patent
(for the avoidance of doubt, such timely payment includes payment of any maintenance fees for which the fee is payable (e.g., the
fee payment window opens) even if the surcharge date or final deadline for payment of such fee would be in the future) or (ii)
any Patent is found invalid, unpatentable or unenforceable due to a future act or omission by Parent or any of its Subsidiaries
that constitutes gross negligence or willful misconduct, in each case, as to each of clauses (i) and (ii), which
failure or event continues in existence and is not remedied for thirty (30) days after Borrower’s receipt of actual or constructive
notice thereof.

 

(o)               
Subordinated Debt. Any document, instrument, or agreement evidencing any Subordinated Debt shall for any reason cause
such subordination to be revoked or invalidated or otherwise cease to be in full force and effect (other than a termination in
accordance with the terms of the payment in full of such Subordinated Debt so long as such payment is permitted under the terms
of the subordination or other agreement between such Person and Lender or otherwise agreed by Lender in writing) or the Obligations
shall for any reason be subordinated or shall not have the priority contemplated by this Agreement.

 

    58

     

    

 

Notwithstanding the
foregoing or anything to the contrary contained in this Agreement, if the Loan Parties fail to comply with Section 7.11(a),
or any covenant set forth Section 7.17 as of the last day of the applicable testing period (each, a “Specified
Breach”), such Specified Breach shall not constitute an Event of Default hereunder unless there is a failure to comply
with such individual Section for two consecutive testing periods and an Event of Default did not occur as of the immediately preceding
testing period. Notwithstanding the immediately preceding sentence, the occurrence of any Specified Breach following the occurrence
of three (3) non-consecutive Specified Breaches of an individual Section which do not result in an Event of Default in accordance
with the foregoing, shall constitute an Event of Default; provided further with respect to any such individual Section that
is qualified by Material Adverse Loan Impact or Material Asset Value Impact, the event giving rise thereto shall have been remedied
and/or the damages arising therefor shall have been paid or otherwise discharged on or prior to the last day of the applicable
testing period.

 

ARTICLE X.  
LENDER’S RIGHTS AND REMEDIES

 

SECTION 10.01.                  
Rights and Remedies.

 

(a)               
While an Event of Default occurs and continues Lender may, without notice or demand, do any or all of the following, singularly,
consecutively or cumulatively:

 

(i)               Declare all Obligations (including any Applicable Prepayment Premium and the End of Term Fee) immediately due and payable,
without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by Borrower (but if
an Event of Default described in Section 9.01(h) occurs, all Obligations (including any Applicable Prepayment Premium and
the End of Term Fee) are immediately due and payable without any action by Lender);

 

(ii)              
Stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement
between Borrower and Lender;

 

(iii)            
Make any payments and do any acts it considers necessary or reasonable to protect the Collateral or its security interest
in the Collateral. Lender may pay, purchase, contest, or compromise any Lien, other than a Permitted Lien, which appears to be
prior or superior to its security interest and in exercising any such powers, incur any liability, expend whatever amounts in its
absolute discretion it may deem necessary therefor, including cost of evidence of title, employ counsel and pay reasonable attorneys’
fees;

 

(iv)            Without notice to or demand upon Parent or any of its Subsidiaries and without releasing any Loan Party from any obligation
hereof, reclaim, recover, maintain, prepare for sale, advertise for sale, and sell the Collateral and in exercising any such powers,
incur any liability, expend whatever amounts in its absolute discretion it may deem necessary therefor, including cost of evidence
of title, employ counsel and pay reasonable attorneys’ fees. Lender is hereby granted a non-exclusive, royalty-free license
or other right to use, without charge, Parent’s or any of its Subsidiaries’ labels, Patents, copyrights, mask works,
rights of use of any name, trade secrets, trade names, trademarks, and advertising matter, or any similar property as it pertains
to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Lender’s
exercise of its rights under this Section 10.01. Parent’s and each of its Subsidiaries’ rights under all licenses
and all franchise agreements inure to Lender’s benefit;

 

    59

     

    

 

(v)            
Transfer all or part of the Collateral into the name of Borrower or its nominee;

 

(vi)            Demand and receive possession of Parent’s or any of its Subsidiaries’ corporate, financial and operating books
and records; and

 

(vii)           
Exercise all rights and remedies available to Lender under the Loan Documents or at Law or equity, including all remedies
provided under the UCC, all of which rights and remedies shall be cumulative and nonexclusive to the extent permitted by law, including,
without limitation, the following:

 

(1)              
Lender shall have all rights and remedies provided by Law, including but not limited to those of a Lender under the UCC
as in effect in the States of New York and Delaware on the date hereof and as amended hereafter, in addition to the rights and
remedies provided herein or in the Loan Documents. Lender may, in its sole discretion, require any Loan Party to assemble the Collateral
and make it available to Lender at a place to be designated by Lender that is reasonably convenient to such Loan Party and Lender,
and without notice except as specified below, dispose of the Collateral or any part thereof in one or more parcels at public or
private sale, at any of Lender’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms
as Lender may deem commercially reasonable. If notice of disposition of Collateral is required by Law, ten (10) days prior notice
by Lender to the applicable Loan Party designating the time and place of any public sale or the time after which any private sale
or other intended disposition of Collateral is to be made shall be deemed to be reasonable notice thereof, and such Loan Party
waives any other notice. Lender shall not be obligated to make any sale of Collateral regardless of notice of sale having been
given. Lender may adjourn any public or private sale from time to time by announcement at the time fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so adjourned. Upon the sale of Collateral at any public
or private sale, Lender may credit bid and purchase (as determined by Lender in its sole discretion) all or any portion of the
Collateral. In the event Lender institutes an action to recover any Collateral or seeks recovery of any Collateral by way of prejudgment
remedy in an action against any Loan Party, such Loan Party waives the posting of any bond which might otherwise be required. All
Lender’s rights and remedies shall be cumulative and none are exclusive. Whether or not default has occurred, all payments
made by or on behalf of Borrower and all credits due any Loan Party under this Agreement and under any other Loan Document between
any Loan Party and Lender may be applied to the Obligations in whatever order and amounts Lender chooses subject to the terms of
this Agreement and applicable Law.

 

(2)              All cash proceeds received by Lender in respect of any sale of, collection from, or other realization upon all or any part
of the Collateral may, in the discretion of Lender, be held by Lender as collateral for, or then or at any time thereafter applied
in whole or in part by Lender against, all or any part of the Obligations in such order as Lender shall elect. Any surplus of such
cash or cash proceeds held by Lender and remaining after payment in full of all the Obligations shall be paid over to the applicable
Loan Party or to whomsoever may be lawfully entitled to receive such surplus.

 

(3)             
Lender may exercise any and all rights and remedies of each Loan Party under or in respect of the Collateral.

 

    60

     

    

 

 

(4)               
All payments received by any Loan Party under or in respect of the Collateral shall be received in trust for the benefit
of Lender, shall be segregated from other funds of such Loan Party and shall be forthwith paid over to Lender in the same form
as so received (with any necessary endorsement).

 

(5)               
Whether or not an Event of Default shall have occurred, if any Loan Party fails to perform any agreement contained herein,
Lender may, in its sole discretion, itself perform, or cause performance of, such agreement, and the reasonable expenses of Lender
incurred in connection therewith shall be payable by such Loan Party. The powers conferred upon Lender hereunder are solely for
the protection of its interest in the Collateral and shall not impose any duty upon it to exercise any such powers.

 

(6)               
Except for the safe custody of any Collateral in its possession and the accounting for monies actually received by it hereunder,
Lender shall have no duty as to any Collateral, whether or not Lender has or is deemed to have knowledge of such matters, or as
to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral. Lender
shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral
is accorded treatment substantially equal to that which Lender accords its own property.

 

(b)               
Lender may cause the Collateral to remain on any Loan Party’s premises, at such Loan Party’s expense, pending
sale or other disposition thereof. Lender shall have the right to conduct such sales on such Loan Party’s premises or elsewhere,
at such Loan Party’s expense, on such occasions as Lender may see fit, and such Loan Party, at Lender’s request, will,
at such Loan Party’s expense, assemble the Collateral and make it available to Lender at such place(s) as Lender may reasonably
designate from time to time. Any sale, lease or other disposition by Lender of the Collateral, or any part thereof, may be for
cash or other value. Each Loan Party shall execute and deliver, or cause to be executed and delivered, such instruments, documents,
assignments, deeds, waivers, certificates and affidavits and take such further action as Lender shall reasonably require in connection
with such sale, and such Loan Party hereby constitutes Lender as its attorney-in-fact to execute any such instrument, document,
assignment, deed, waiver, certificate or affidavit on behalf of such Loan Party and in its name. At any sale of the Collateral,
the Collateral to be sold may be sold in one lot as an entirety or in separate lots as Lender may determine Lender shall not be
obligated to make any sale of any Collateral if it determines not to do so, regardless of the fact that notice of sale was given.
Lender may, without notice or publication, adjourn any public or private sale or cause the sale to be adjourned from time to time
by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place
to which it was so adjourned. In case any sale of Collateral is made on credit or for future delivery, the Collateral so sold may
be retained by Lender until the sale price is paid, but Lender shall not incur any liability if any purchaser fails to pay for
any Collateral so sold and, in case of any such failure, such Collateral may be sold again. At any public sale, Lender (i) may
bid for or purchase the Collateral offered for sale, free (to the extent permitted by Law) from any rights of redemption, stay
or appraisal on the part of any Loan Party with respect to the Collateral; (ii) make payment on account thereof by using any claim
then due and payable to Lender from Borrower as a credit against the purchase price; and (iii) upon compliance with the terms of
sale, hold, retain and dispose of such property without further accountability to such Loan Party therefor. Each Loan Party acknowledges
that portions of the Collateral may be difficult to preserve and dispose of and may be subject to complex maintenance and management;
accordingly, Lender shall have the widest possible latitude in the exercise of its rights and remedies hereunder.

 

(c)               
Any notice required to be given by Lender with respect to any of the Collateral, which notice is given pursuant to Article
XI and deemed received pursuant to Article XI at least ten (10) Business Days before a sale, lease, disposition or other intended
action by Lender, shall constitute fair and reasonable notice to the applicable Loan Party of any such action. A public sale in
the following fashion shall be conclusively presumed to be reasonable if (i) the sale is held in a county where any part of the
Collateral is located or in which any Loan Party has a place of business; (ii) the sale is conducted by auction, but it need not
be by a professional auctioneer; (iii) any Collateral is sold as is and without any preparation for sale; and (iv) such Loan Party
is given notice of such public sale pursuant to the preceding sentence.

 

    61

     

    

 

(d)               
Lender shall have no obligation (i) to preserve any rights to the Collateral against any Person; (ii) to make any demand
upon or pursue or exhaust any rights or remedies against any Loan Party or others with respect to payment of the Obligations; (iii)
to pursue or exhaust any rights or remedies with respect to any of the Collateral or any other security for the Obligations; or
(iv) to marshal any assets in favor of any Loan Party or any other Person against or in payment of any or all of the Obligations.

 

(e)               
Each Loan Party recognizes that one or more Laws may limit the flexibility desired to achieve a more commercially reasonable
disposition of Collateral, and it is intended that consideration of such Laws be taken into account in determining commercial reasonableness.

 

(f)                
Each Loan Party is aware that Section 9-610 of the UCC states that Lender is able to purchase the pledged Equity Interests
of such Loan Party only if they are sold at a public sale. Each Loan Party is also aware that SEC staff personnel have, over a
period of years, issued various No Action Letters that describe procedures which, in the view of the SEC staff, permit a foreclosure
sale of securities to occur in a manner that is public for purposes of Part 6 of Article 9 of the UCC, yet not public for purposes
of Section 4(2) of the Securities Act of 1933 (as amended from time to time). Each Loan Party is also aware that Lender may wish
to purchase the pledged Equity Interests that are sold at a foreclosure sale, and such Loan Party believes that such purchase would
be appropriate in circumstances in which the pledged Equity Interests are sold in conformity with the principles set forth in the
No Action Letters. Each Loan Party specifically agrees that a foreclosure sale conducted in conformity with the principles set
forth in the No Action Letters (i) shall be considered to be a “public” sale for purposes of Section 9-610 of the UCC;
(ii) will not be considered commercially unreasonable solely by virtue of the fact that Lender has not registered or sought to
register the Equity Interests under the securities Laws; even if such Loan Party agrees to pay all costs of the registration process;
and (iii) shall be considered to be commercially reasonable notwithstanding that Lender purchases the pledged Equity Interests
at such a sale.

 

(g)               
Each Loan Party shall pay to Lender, on demand and as part of the Obligations, all reasonable costs and expenses, including
court costs and costs of sale, incurred by Lender in exercising any of its rights or remedies hereunder.

 

SECTION 10.02.                  
Power of Attorney. Each Loan Party hereby irrevocably appoints Lender as its lawful attorney-in-fact, exercisable upon
the occurrence and during the continuance of an Event of Default, to (a) endorse such Loan Party’s name on any checks or
other forms of payment or security; (b) make, settle, and adjust all claims under such Loan Party’s insurance policies; (c)
pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment
based thereon, or otherwise take any action to terminate or discharge the same; (d) Transfer the Collateral into the name of Lender
or a third party as the UCC permits; and (e) to sign such Loan Party’s name on any documents necessary to perfect or continue
the perfection of Lender’s security interest in the Collateral. Lender’s foregoing appointment as such Loan Party’s
attorney-in-fact, and all of Lender’s rights and powers, coupled with an interest, are irrevocable until all Obligations
have been fully repaid and performed and Lender’s obligation to extend credit terminates.

 

SECTION 10.03.                  
Protective Payments. If any Loan Party fails to obtain the insurance required hereunder or fails to pay any premium
thereon or fails to pay any other amount which such Loan Party is obligated to pay under this Agreement or any other Loan Document,
Lender may obtain such insurance or make such payment, and all amounts so paid by Lender are Lender Expenses and are immediately
due and payable, bearing interest at the Default Rate and secured by the Collateral. Lender will make reasonable efforts to provide
such Loan Party with notice of Lender’s obtaining such insurance at the time it is obtained or within a reasonable time thereafter.
No payments by Lender are deemed an agreement to make similar payments in the future or Lender’s waiver of any Event of Default.

 

    62

     

    

 

SECTION 10.04.                  
Application of Payments and Proceeds Upon Default. If an Event of Default has occurred and is continuing, Lender may
apply any funds in its possession to the Obligations in such order as Lender shall determine in its sole and exclusive discretion.
Subject to the terms of the SPE Operating Agreement or any other Loan Document, any surplus shall be paid to the applicable Loan
Party or other Persons legally entitled thereto; provided, that the Loan Parties shall remain liable to Lender for any deficiency.
If Lender, in its good faith business judgment, directly or indirectly enters into a deferred payment or other credit transaction
with any purchaser at any sale of Collateral, Lender shall have the option, exercisable at any time, of either reducing the Obligations
by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Lender
of cash therefor.

 

SECTION 10.05.                  
No Waiver; Remedies Cumulative.

 

(a)               
Lender’s failure, at any time or times, to require strict performance by any Loan Party of any provision of this Agreement
or any other Loan Document shall not waive, affect, or diminish any right of Lender thereafter to demand strict performance and
compliance herewith or therewith. No waiver hereunder shall be effective unless signed by the party granting the waiver and then
is only effective for the specific instance and purpose for which it is given. Lender’s rights and remedies under this Agreement
and the other Loan Documents are cumulative. Lender has all rights and remedies provided under the UCC, by Law, or in equity. Lender’s
exercise of one right or remedy is not an election and shall not preclude Lender from exercising any other remedy under this Agreement
or other remedy available at Law or in equity, and Lender’s waiver of any Event of Default is not a continuing waiver. Lender’s
delay in exercising any remedy is not a waiver, election, or acquiescence.

 

(b)               
In the event that the Lender enforce rights or remedies against any Non-Assigned Patents, Lender shall (1) grant, and does
hereby grant, to Parent and its Subsidiaries, as applicable, a perpetual, irrevocable, non-sublicensable, non-terminable, non-exclusive,
royalty-free, worldwide license to the Non-Assigned Patents of scope consistent with the licenses provided by Borrower on the Closing
Date under the Patent License Agreement (Loan Parties) (including the right to exercise all rights under the Non-Assigned Patents),
which license shall be binding on any third party transferee or any other person or entity that acquires rights in such Non-Assigned
Patents (by foreclosure or otherwise) at any time following such exercise of rights or remedies, and (2) require as a condition
to the effectiveness of any such transfer or assignment (by foreclosure or otherwise) of such Non-Assigned Patents, rights in such
Non-Assigned Patents, that the applicable transferee or assignee acknowledge and agree to the non-revocable grant to Parent and
its Subsidiaries of the perpetual license of the type described in the immediately preceding clause (1), which acknowledgement
and agreement by such transferee or assignee shall be made in a writing, signed by a duly authorized officer of such transferee
or assignee, made to and for the express benefit of Parent and its Subsidiaries, as applicable.

 

ARTICLE XI.  
NOTICES

 

All notices, consents,
requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must be in writing
and shall be deemed to have been validly served, given, or delivered (a) upon the earlier of actual receipt and three (3) Business
Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid;
(b) upon transmission, when sent by email or fax transmission (except that, if not given during normal business hours for the recipient,
shall be deemed to have been given at the opening of business on the next Business Day for the recipient); (c) one Business Day
after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand- delivered by messenger,
all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address indicated
below. Parent, Borrower or Lender may change its mailing or email address or facsimile number by giving the other party written
notice thereof in accordance with the terms of this Article XI.

 

    63

     

    

 

If to Borrower

or Parent or

any Loan Party:    c/o SuperCom,
Inc.

200 Park Avenue South

9th Floor

New York, NY 10003

Attention: Ordan Trabelsi

Email: ordan@supercom.com

 

With a copy to:    Shiboleth
LLP

One Penn Plaza, Suite 2527

New York, NY 10119

Attention: Moty Ben Yona, Esq.

Email: MotyB@Shiboleth.com

 

 

If
to Lender:         DBFIP SCL LLC.

c/o Fortress Investment Group

1345 Avenue of the Americas, 46th Floor

New York, NY 10105

Attention: General Counsel — Credit Funds

Fax No.: 917-639-9672

Email: gc.credit@fortress.com

 

With a copy to:    Alston &
Bird LLP

2828 N. Harwood Street, Suite 1800

Dallas, TX 75201

Attn: Kate K. Moseley, Esq.

Fax: (214) 922-3874

Email: kate.moseley@alston.com

 

ARTICLE
XII.  
GOVERNING LAW. SUBMISSION TO JURISDICTION. JURY TRIAL WAIVER. AND JUDICIAL REFERENCE

 

SECTION 12.01.                  
Governing Law; Submission to Jurisdiction. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York without regard to its rules of conflict of law, except Sections 5-1401 and 5-1402 of the New York
General Obligations Law. The Loan Parties hereby irrevocably submit to the nonexclusive jurisdiction of any New York State or Federal
court sitting in the County of New York over any suit, action or proceeding arising out of or relating to this Agreement or any
Loan Document, and the Loan Parties hereby agree and consent that, in addition to any methods of service of process provided for
under applicable Law, all service of process in any such suit, action or proceeding in any New York State or Federal court sitting
in the County of New York may be made by certified or registered mail, return receipt requested, or overnight mail with a reputable
national carrier, directed to the Parent or Borrower at the address indicated above, and service so made shall be complete five
(5) days after the same shall have been so mailed (one day in the case of an overnight mail service).

 

    64

     

    

 

SECTION 12.02.                  
Jury Trial Waiver. EACH OF THE LOAN PARTIES AND LENDER HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE
OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH
REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT
TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY EACH LOAN PARTY AND LENDER, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH
INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH LOAN PARTY AND LENDER ARE EACH HEREBY
AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER.

 

SECTION 12.03.                  
Additional Waivers in the Event of Enforcement. EACH LOAN PARTY HEREBY EXPRESSLY AND UNCONDITIONALLY WAIVES, IN CONNECTION
WITH ANY SUIT, ACTION OR PROCEEDING BROUGHT BY OR ON BEHALF OF LENDER UNDER THIS AGREEMENT, ANY AND EVERY RIGHT SUCH LOAN PARTY
MAY HAVE TO (A) INJUNCTIVE RELIEF; (B) INTERPOSE ANY COUNTERCLAIM THEREIN (OTHER THAN COMPULSORY COUNTERCLAIMS); AND (C) HAVE THE
SAME CONSOLIDATED WITH ANY OTHER OR SEPARATE SUIT, ACTION OR PROCEEDING. NOTHING HEREIN CONTAINED SHALL PREVENT OR PROHIBIT GUARANTOR
FROM INSTITUTING OR MAINTAINING A SEPARATE ACTION AGAINST LENDER WITH RESPECT TO ANY ASSERTED CLAIM.

 

ARTICLE XIII.  
GENERAL PROVISIONS

 

SECTION 13.01.                  
Successors and Assigns. The Loan Documents shall be binding upon and inure to the benefit of the successors and assigns
of the parties; provided, however, that no Loan Party may assign or transfer its interest hereunder or thereunder. Lender reserves
the right to sell, assign, Transfer, negotiate or grant participations in all or any part of, or any interest in, Lender’s
rights and benefits under each of the Loan Documents (other than the Warrant, as to which assignment, Transfer and other such actions
are governed by the terms of the Warrant). Each such assignment shall be recorded in the Register and each such participation shall
be recorded in the Participant Register. With respect to participations, each Loan Party agrees that each participant shall be
entitled to the provisions of Section 2.03, subject to the requirements and limitations therein (it being understood that
any documentation required under Section 2.03(e) shall be delivered to Lender), to the same extent as if it had acquired
its interest by assignment.

 

SECTION 13.02.                  
Costs and Expenses; Indemnification.

 

(a)               
Lender Expenses. Borrower shall pay Lender Expenses in accordance with Section 2.02(b) and upon request by
Lender.

 

(b)               
Indemnification by Loan Parties. Each Loan Party shall indemnify Lender and each Related Party of Lender (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including Lender Expenses), and shall indemnify and hold harmless each Indemnitee from
all fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or
asserted against any Indemnitee by any Person (including any Loan Party) other than such Indemnitee and its Related Parties arising
out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement
or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or
thereunder, the consummation of the transactions contemplated hereby or thereby, or the administration of this Agreement and the
other Loan Documents; (ii) a Term Loan or other extension of credit or the use or proposed use of the proceeds therefrom; (iii)
any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by Parent or any of
its Subsidiaries, or any Environmental Liability related in any way to Parent or any of its Subsidiaries; or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or
any other theory, whether brought by a third party or by any Loan Party, and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to
have resulted from the gross negligence or willful misconduct of such Indemnitee; or (y) result from a claim brought by any Loan
Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document,
if such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent
jurisdiction. Without limiting the provisions of Section 2.03(c), this Section 13.02(b) shall not apply with respect
to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

    65

     

    

 

(c)               
Waiver of Consequential Damages, Etc. To the fullest extent permitted by applicable Law, no Loan Party shall assert,
and the each Loan Party hereby waives, and acknowledges that no other Person shall have, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising
out of, in connection with, or as a result of, any Loan Document or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, a Term Loan or other extension of credit or the use of the proceeds thereof. No Indemnitee shall
be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such
unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection
with any Loan Document or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from
the gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of
competent jurisdiction.

 

(d)               
Payments. Except as otherwise provided in this Agreement, all amounts due under this Section shall be payable not
later than ten (10) Business following demand therefor.

 

(e)               
Survival. The agreements and indemnity provisions in this Section shall survive the repayment, satisfaction or discharge
of all the other Obligations.

 

SECTION 13.03.                  
Time of Essence. Time is of the essence for the performance of all Obligations in this Agreement.

 

SECTION 13.04.                  
Severability of Provisions. If any provision of any Loan Document is held to be illegal, invalid or unenforceable, (a)
the legality, validity and enforceability of the remaining provisions of the Loan Documents shall not be affected or impaired thereby
and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.
The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

 

    66

     

    

 

SECTION 13.05.                  
Amendments in Writing; Waiver; Integration. No purported amendment or modification of any Loan Document, or waiver,
discharge or termination of any obligation under any Loan Document, shall be enforceable or admissible unless, and only to the
extent, expressly set forth in a writing signed by the party against which enforcement or admission is sought. Without limiting
the generality of the foregoing, no oral promise or statement, or any action, inaction, delay, failure to require performance or
course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document.
Any waiver granted shall be limited to the specific circumstance expressly described in it, and shall not apply to any subsequent
or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further
waiver. The Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.
All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter
of the Loan Documents merge into the Loan Documents.

 

SECTION 13.06.                  
Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts,
each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement.

 

SECTION 13.07.                  
Survival. All covenants, representations and warranties made in this Agreement continue in full force until this Agreement
has terminated pursuant to its terms, and all Obligations (other than inchoate indemnity obligations and any other obligations
which, by their terms, are to survive the termination of this Agreement) have been paid in full and satisfied.

 

SECTION 13.08.                  
Confidentiality.

 

(a)               
Lender agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed
(a) to its Affiliates and to its and their respective Related Parties (it being understood that the Persons to whom such disclosure
is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential);
(b) to the extent required or requested by any governmental or other regulatory authority purporting to have jurisdiction over
such Person or its Related Parties (including any self-regulatory authority, such as the Financial Industry Regulatory Authority
or National Association of Insurance Commissioners); provided, unless specifically prohibited by applicable Law or court
order, Lender shall make reasonable efforts to notify Borrower of any request by any such governmental or regulatory authority
(other than any such request in connection with any examination of the financial condition or other routine examination of Lender
by such governmental or regulatory authority) for disclosure of any such non-public information prior to disclosure of such information;
(c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process; provided, unless
specifically prohibited by applicable Law or court order, Lender shall make reasonable efforts to notify Borrower of any such disclosure
of any such non-public information prior to disclosure of such information; (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or
the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions substantially the same as
those of this Section, to any assignee of or participant in, or any prospective assignee of or participant in, any of its rights
and obligations under this Agreement; (g) on a confidential basis to (x) any rating agency in connection with rating any Loan Party
or its Subsidiaries or the credit facilities provided hereunder; or (y) the CUSIP Service Bureau or any similar agency in connection
with the issuance and monitoring of CUSIP numbers or other market identifiers with respect to the credit facilities provided hereunder;
(h) with the consent of the Borrower; or (i) to the extent such Information (x) becomes publicly available other than as a result
of a breach of this Section; or (y) becomes available to the Lender from a source other than any Loan Party. In addition to the
foregoing, Lender agrees to comply with the confidentiality requirements of any license or other agreement relating to any Patents
with respect to any such agreement set forth on the Schedules hereto, as in effect on the date hereof, provided that prior to the
date hereof Borrower has delivered to Lender a true and correct copy of each such agreement and, in connection therewith, informed
Lender of the confidentiality provisions thereof.

 

    67

     

    

 

For purposes of this
Section, “Information” means all information received from the Parent or any of its Subsidiaries or Parent’s
or any such Subsidiary’s directors, officers, employees, trustees, investment advisors or agents, including accountants and
legal counsel relating to Parent or any such Subsidiary or any of their respective businesses, other than any such information
that is available to the Lender on a nonconfidential basis prior to disclosure by Parent or any such Subsidiary, provided that,
in the case of information received from Parent or any of its Subsidiaries after the Closing Date, such information is clearly
identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided
in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree
of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information but
in no event less than reasonable care.

 

(b)               
Lender acknowledges that (a) the Information may include material non-public information concerning Parent or a Subsidiary
of Borrower, as the case may be; (b) it has developed compliance procedures regarding the use of material non-public information;
and (c) it will handle such material non-public information in accordance with applicable Laws, including all securities Laws.

 

(c)               
Unless required under applicable Law, regulatory authority or legal process, neither Parent nor any of its Subsidiaries
shall not make any public announcement or similar publicity related to this Agreement or the transactions contemplated herein without
the prior written consent of Lender.

 

SECTION 13.09.                  
Electronic Execution of Documents. The words “execution,” “signed,” “signature”
and words of like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use
of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable Law, including
any state Law based on the Uniform Electronic Transactions Act.

 

SECTION 13.10.                  
Register. The Borrower shall maintain at its offices at 200 Park Avenue South, 9th Floor, New York, NY 10003
a copy of each Transfer of an interest in the Notes by Lender delivered to it and a register for the recordation of the names and
addresses of Lender and any assignee Lender and principal amounts of the Term Loans owing to, Lender or any assignee Lender pursuant
to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive absent
manifest error, and the Borrower, Lender and any assignee Lender shall treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection
by Lender and any assignee Lender, at any reasonable time and from time to time upon reasonable prior notice. This Section 13.10
shall be construed so that the Notes are at all times maintained in “registered form” within the meaning of Sections
163(f), 871(h)(2) and 881(c)(2) of the Code.

 

SECTION 13.11.                  
Participant Register. Lender shall, acting solely for this purpose as a nonfiduciary agent of the Borrower, maintain
a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each
participant’s interest in the Notes (the “Participant Register”); provided that Lender shall not have
any obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any information
relating to a participant’s interest in the Notes) to any Person except Borrower.

 

    68

     

    

 

SECTION 13.12.                  
Captions. The headings used in this Agreement are for convenience only and shall not affect the interpretation of this
Agreement.

 

SECTION 13.13.                  
Construction of Agreement. The parties mutually acknowledge that they and their attorneys have participated in the preparation
and negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties
caused the uncertainty to exist.

 

SECTION 13.14.                  
Relationship. The relationship between the parties to this Agreement is determined solely by the provisions of this
Agreement. The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with
duties or incidents different from those of parties to an arm’s-length contract.

 

SECTION 13.15.                  
Third Parties. Nothing in this Agreement, whether express or implied, is intended to (a) confer any benefits, rights
or remedies under or by reason of this Agreement on any Persons other than the express parties to it and their respective permitted
successors and assigns; (b) relieve or discharge the obligation or liability of any Person not an express party to this Agreement;
or (c) give any Person not an express party to this Agreement any right of subrogation or action against any party to this Agreement.

 

SECTION 13.16.                  
Payments Set Aside. To the extent that any payment applied to any Obligation (including any payment by way of setoff)
is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver
or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then to the extent of such recovery,
the Obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if
such payment had not been made or such setoff had not occurred.

 

SECTION 13.17.                  
Right of Setoff. If an Event of Default has occurred and is continuing, Lender is hereby authorized at any time and
from time to time, to the fullest extent permitted by applicable Law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any
time owing by Lender or any of its Affiliates to or for the credit or the account of the Borrower against any and all of the Obligations,
irrespective of whether Lender has made demand under any Loan Document. Lender’s rights under this Section are in addition
to other rights and remedies (including other rights of setoff) that Lender or its Affiliates may have. Lender shall endeavor to
notify the Borrower promptly after any such setoff and application; provided that the failure to give such notice shall not affect
the validity of such setoff and application.

 

SECTION 13.18.                  
Interest Rate Limitation. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid
or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable
Law (the “Maximum Rate”) If the Lender receives interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Term Loans or, if it exceeds such unpaid principal, refunded to the Borrower.
In determining whether the interest contracted for, charged, or received by the Lender exceeds the Maximum Rate, the Lender may,
to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather
than interest; (b) exclude voluntary prepayments and the effects thereof; and (c) amortize, prorate, allocate, and spread in equal
or unequal parts the total amount of interest throughout the contemplated term of the Obligations.

 

    69

     

    

 

SECTION 13.19.                  
Securitization of Loans; Appointment of Agent.

 

(a)               
Each of Borrower and Parent hereby acknowledges that the Lender and its Affiliates may sell or securitize the Loans (a “Securitization”)
through the pledge of the Term Loans as collateral security for loans to the Lenders or its Affiliates or through the sale of the
Term Loans or the issuance of direct or indirect interests in the Term Loans. Each of Borrower and Parent shall cooperate with
the Lender and its Affiliates to effect the Securitization including, without limitation, by (i) amending this Agreement and the
other Loan Documents, and executing such additional documents, as reasonably requested by the Lender in connection with the Securitization;
provided that (A) any such amendment or additional documentation does not impose material additional costs on the Borrower or Parent
and (B) any such amendment or additional documentation does not materially adversely affect the rights, or materially increase
the obligations, of the Borrower or Parent under the Loan Documents or change or affect in a manner adverse to the Borrower and
Parent the financial terms of the Term Loans; (ii) providing such information as may be reasonably requested by the Lender in connection
with the rating of the Term Loans or the Securitization; and (iii) providing in connection with any rating of the Term Loans a
certificate (A) agreeing to indemnify each of Lender and its Affiliates, any Rating Agencies rating the Term Loans, or any party
providing credit support or otherwise participating in the Securitization (collectively, the “Securitization Parties”)
for any losses, claims, damages or “liabilities” (the “Liabilities”) to which such Lender, its Affiliates
or such Securitization Parties may become subject insofar as the Liabilities arise out of or are based upon any untrue statement
or alleged untrue statement of any material fact by the Borrower or any Affiliate of the Borrower contained in any Loan Document
or in any writing delivered by or on behalf of the Borrower or any Affiliate of the Borrower to the Lenders in connection with
any Loan Document or arise out of or are based upon the omission or alleged omission by the Borrower or any Affiliate of the Borrower
to state therein a material fact required to be stated therein, or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading, and such indemnity shall survive any transfer by any Lender or
its successors or assigns of the Term Loans and (B) agreeing to reimburse each Lender and its Affiliates for any legal or other
expenses reasonably incurred by such Persons in connection with defending the Liabilities.

 

(b)               
The Lender shall have the right, in consultation with the Borrower and at Borrower’s expense, to appoint an administrative
agent and/or a collateral agent, which appointment shall be mutually acceptable to the Lender and the Borrower, on terms and conditions
to be mutually agreed.

 

SECTION 13.20.                  
Certain Tax Matters. The parties acknowledge and agree that the Initial Term Loan and Warrant are part of an “investment
unit” within the meaning of Code Section 1273(c)(2). Notwithstanding anything to the contrary contained herein or in any
other agreement, each party further acknowledges and agrees that for United States federal, state and local income tax purposes,
(i) the aggregate fair market value of the Warrant being issued to or purchased by Lender or its Affiliates shall equal $[●],
(ii) the aggregate fair market value of the interest in SuperCom IP LLC being issued to or purchased by Lender or its Affiliates
shall equal $[●], (iii) the aggregate fair market value of the Parent Equity Interests being issued to or purchased by Lender
or its Affiliates shall equal $[●], and (iv) the aggregate “issue price” of the Initial Term Loan shall equal
$[●], for purposes of Code Section 1273(b). Company agrees to use such fair market values and issue price for U.S. federal
income tax purposes with respect to the aforementioned transactions. The parties agree to file all United States federal, state
and local income tax returns consistent with the foregoing fair market values and issue price.

 

[This space intentionally left blank]

 

    70

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed as of the Closing Date.

 

	BORROWER:	SUPERCOM INC.,
	 	a Delaware corporation
	 	 
	 	 
	 	By:	                      
	 	Name:
	 	Title:
	 	 
	PARENT:	SUPERCOM LTD.
	 	an Israeli company
	 	 
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	SPE GUARANTOR:	SUPERCOM IP LLC
		a __________________
	 	 
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

[Signature Page to Credit Agreement]

 

     

     

    

 

	LENDER:	DBFIP SCL LLC,
	 	a Delaware limited liability company
	 	 
	 	 
	 	By:	       
	 	Name:
	 	Title:

 

[Signature Page to Credit Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}]]