Document:

EXHIBIT 10.1

 

THIRD SUPPLEMENTAL AGREEMENT

 

THIS THIRD SUPPLEMENTAL
AGREEMENT, dated as of June 30, 2021 (this “Agreement”), by and between Acacia Research Corporation, a Delaware
corporation (the “Company”), Merton Acquisition HoldCo LLC, a Delaware limited liability company and wholly-owned Subsidiary
of the Company (“Merton”), certain other direct and indirect Subsidiaries of the Company, and Starboard Value LP (the
“Designee”) on behalf of itself and on behalf of the funds and accounts under its management that as of the date hereof
hold, or that will after the date hereof hold, Preferred Shares, Series A Warrants, Series B Warrants and/or Notes (each as defined in
the Securities Purchase Agreement (as defined below)) (the “Starboard Funds”).

 

WHEREAS, the Company,
the Designee and certain Starboard Funds have entered into, among others, that certain Securities Purchase Agreement, dated as of November
18, 2019 (the “Securities Purchase Agreement”);

 

WHEREAS, the Company,
certain direct and indirect Subsidiaries of the Company and Starboard Value Intermediate Fund LP, in its capacity as the Collateral Agent
(the “Collateral Agent”) have entered into that certain Pledge and Security Agreement, dated as of June 30, 2020, by
the Company and Collateral Agent (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the
“Pledge and Security Agreement”);

 

WHEREAS, the Company
and certain direct and indirect Subsidiaries of the Company have entered into that certain Guaranty, dated as of June 30, 2020 (as amended,
restated, amended and restated, supplemented or otherwise modified from time to time, the “Guaranty”) in favor of the
Holders (as defined therein);

 

WHEREAS, certain direct
and indirect Subsidiaries of the Company and the Collateral Agent have entered into that certain Stock Pledge Agreement, dated as of June
30, 2020 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Stock Pledge
Agreement”);

 

WHEREAS, pursuant to
the Securities Purchase Agreement, as supplemented by that certain Supplemental Agreement dated as of June 4, 2020 between the Company
and the Designee on behalf of the Starboard Funds (as amended, restated, amended and restated, supplemented or otherwise modified from
time to time, the “First Supplemental Agreement”), that certain Exchange Agreement dated as of June 30, 2020 (as amended,
restated, amended and restated, supplemented or otherwise modified from time to time, the “Exchange Agreement”) and
that certain Second Supplemental Agreement dated as of March 31, 2021 between the Company, Merton, certain other direct and indirect Subsidiaries
of the Company, the Designee on behalf of the Starboard Funds, and the Collateral Agent (as amended, restated, amended and restated, supplemented
or otherwise modified from time to time, the “Second Supplemental Agreement”): (i) on November 18, 2019 the Company
issued to certain Starboard Funds an aggregate of 350,000 Preferred Shares and Series A Warrants to purchase an aggregate of 5,000,000
shares of Common Stock, (ii) on February 25, 2020 the Company issued to certain Starboard Funds Series B Warrants to purchase an aggregate
of 100,000,000 shares of Common Stock, (iii) on June 4, 2020, the Company issued Notes (the “June 4 Notes”) to certain
Starboard Funds in an aggregate principal amount of $115,000,000, (iv) on June 30, 2020, the Company and the Designee on behalf of the
Starboard Funds agreed to exchange and replace the June 4 Notes for Notes issued by Merton in an aggregate principal amount of $115,000,000
(the “June 2020 Merton Notes”) and (v) on March 31, 2021, the Company issued Notes (the “March 2021 Merton
Notes” and, together with the June 2020 Merton Notes, the “Existing Merton Notes”) to certain Starboard Funds
in an aggregate principal amount of $50,000,000 and amended certain terms of the June 2020 Merton Notes;

 

WHEREAS, Merton has
agreed to issue additional Notes (the “June 2021 Merton Notes” and, together with the Existing Merton Notes, the “Merton
Notes”); and

 

 

 

 

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WHEREAS, the Company,
Merton and the Designee on behalf of itself and the Holders have agreed to amend the Existing Merton Notes, the Securities Purchase Agreement,
the Pledge and Security Agreement, the Guaranty, the Stock Pledge Agreement and certain other Transaction Documents as set forth herein.

 

NOW, THEREFORE, in
consideration of the premises and the mutual agreements, provisions and covenants contained herein, the parties hereby agree as follows:

 

	1.	Definitions. Unless otherwise specified herein, all capitalized terms used and not defined herein shall have the meanings ascribed to them in the Securities Purchase Agreement, the First Supplemental Agreement, the Second Supplemental Agreement and the Exchange Agreement, as applicable.
	 	 
	2. 	
    Issuance of June 2021 Merton Notes.

     

    a. New Issuance. Merton agrees to issue
    June 2021 Merton Notes in favor of the Holders set forth in column (1) on Exhibit B in an aggregate principal amount of
    $30,000,000 in the form attached hereto as Exhibit A in the denominations as set forth in column (2) on Exhibit B.
     The aggregate purchase price for the June 2021 Merton Notes to be purchased by each Holder shall be the amount set forth opposite
    such Holder’s name in column (3) on Exhibit B. The parties hereby acknowledge and agree that (i) the June 2021 Merton
    Notes shall be deemed issued pursuant to the Securities Purchase Agreement and shall be deemed “Notes” with respect to all
    the Transaction Documents, including, without limitation, the First Supplemental Agreement, the Exchange Agreement and the Second Supplemental
    Agreement, and (ii) the issuance of the June 2021 Merton Notes shall be deemed an “Additional Closing” with respect to all
    the Transaction Documents and, accordingly, the issuance of the June 2021 Merton Notes shall be subject to the satisfaction (or waiver
    in writing by the Company or the Starboard Funds, as applicable) of the applicable conditions set forth in Sections 6(c)(i) and (iii)
    of the Securities Purchase Agreement and Sections 7(c)(i), (ii), (iv), (v), (vi), (vii), (viii), (x), (xi), (xiv), (xv), (xvi), (xvii),
    (xviii) and (xix) of the Securities Purchase Agreement, including that the Company and Merton shall bring down all applicable representations
    and warranties set forth in Section 3 of the Securities Purchase Agreement to the date hereof (or, to the extent made as of a certain
    date, as of such date) and, for which purpose, all references to (i) the Notes and (ii) the Company in the Securities Purchase Agreement,
    shall be deemed to refer to (i) the June 2021 Merton Notes and (ii) the Company and Merton, respectively.

	 	 
	3.	Amendment to Securities Purchase Agreement.
	 	 
	 	a.	In accordance with Section 9(e) of the Securities Purchase Agreement, the Company and the Designee representing the Required Holders (as defined in the Securities Purchase Agreement) hereby agree to amend the Securities Purchase Agreement, as set forth in this Section 3, which amendments shall be binding upon each Buyer and holder of Securities and the Company.
	 	 	 
	 	b.	As of the execution and delivery of this Agreement by the Company and the Designee, the definition of “Transaction Documents” set forth in Section 3(b) of the Securities Purchase Agreement shall be amended to add this Agreement and the June 2021 Merton Notes, in each case,  as amended, restated, amended and restated, supplemented or otherwise modified from time to time, to such definition (in addition to any amendment to such definition pursuant to the First Supplemental Agreement, the Second Supplemental Agreement and the Exchange Agreement).
	 	 	 
	 	c.	The Company hereby acknowledges and agrees that any Stockholder Notes to be issued to the Company’s stockholders (i) shall rank pari passu with or junior in right of payment to the Merton Notes, (ii) if secured, shall rank pari passu with or junior in right of security to the Liens on the Collateral securing the Merton Notes, (iii) cannot be guaranteed by any Person that does not also guarantee the Merton Notes and (iv) cannot be more favorable than the Merton Notes to the respective holders thereof.
	 	 	 	 

 

 

 

 

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	 	d.	The parties hereby acknowledge and agree that the June 2021 Merton Notes shall be deemed issued pursuant to the Securities Purchase Agreement and shall be deemed “Notes” with respect to all the Transaction Documents, including, without limitation, the Pledge and Security Agreement, the Guaranty, the Stock Pledge Agreement, the First Supplemental Agreement, the Exchange Agreement and the Second Supplemental Agreement, but not the Series B Warrants.

 

	 	e.	The parties hereby agree that notwithstanding anything to the contrary in the Securities Purchase Agreement, the total principal amount of Notes that may be issued under the Securities Purchase Agreement and that may be deemed to be issued under the Securities Purchase Agreement pursuant to the Exchange Agreement and/or this Agreement shall not exceed the sum of (i) $365,000,000 and (ii) the principal amount of the Merton Notes that are outstanding immediately after the issuance of the June 2021 Merton Notes.
	 	 	 
	4.	
    Amendment to First Supplemental Agreement.
    In accordance with Section 16 of the First Supplemental Agreement, the Company and the Designee hereby agree that all references in Section
    6 of the First Supplemental Agreement to “SPA Notes” shall include a reference to the Merton Notes, mutatis mutandis.

     

	5.	
    No Amendment to the Series B Warrants.
    For the avoidance of doubt, the Company and the Designee representing the Required Holders (as defined in the Series B Warrants) hereby
    agree that the June 2021 Merton Notes shall not be able to be tendered pursuant to a Note Cancellation (as defined in the Series B Warrants)
    under the Series B Warrants.

     

	6.	
    Agreement regarding Registration Rights Agreement. In
    accordance with Section 11 of the Registration Rights Agreement, the Company and the Designee representing the Required Holders (as defined
    in the Registration Rights Agreement) hereby agree that, notwithstanding anything to the contrary in the Securities Purchase Agreement
    and the Registration Rights Agreement, the Merton Notes shall not be considered “Notes” as defined in the Registration Rights
    Agreement.

     

	7. 	
    Amendment of Existing Merton Notes.
The Company, Merton and the Designee on behalf of the Starboard Funds representing the Required Holders (as defined in the Existing Merton
Notes) agree to amend the terms of the Existing Merton Notes as follows:

	 	 
	 	a.   Definition of Maturity Date. The definition of the term “Maturity Date” set forth in Section 1 of the
    Existing Merton Notes is amended and replaced by the following: “October 15, 2021”.
	 	 
	8.	Satisfaction of Conversion Right. Notwithstanding anything to the contrary in the Certificate of Designations, the Company and the Designee on behalf of itself and the Starboard Funds hereby acknowledge and agree that delivery of Merton Notes shall satisfy the delivery of Exchange Notes pursuant to Section 16 of the Certificate of Designations.

 

	9.	Representations and Warranties.

	 	 
	 	a. 	The Designee represents and warrants to the
    Company, and the Company represents and warrants to the Designee and the Starboard Funds holding the Merton Notes in accordance with this
    Agreement, that, as of the date hereof: (i) such Person is an entity duly organized and validly existing under the laws of the jurisdiction
    of its formation, has the requisite power and authority to execute and deliver this Agreement and to carry out and perform all of its
    obligations under the terms of this Agreement; (ii) this Agreement has been duly executed and delivered on behalf of such Person, and
    this Agreement constitutes the valid and legally binding obligation of such Person enforceable against such Person in accordance with
    its terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization,
    moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights
    and remedies; (iii) the execution, delivery and performance by such Person of this Agreement and the consummation by such Person of the
    transactions contemplated hereby will not (1) result in a violation of the organizational documents of such Person, (2) conflict with,
    or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights
    of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Person is a party, or
    (3) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable
    to such Person, except in the case of clause (2) and (3) above, for such conflicts, defaults, rights or violations which would not, individually
    or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Person to perform its obligations
    hereunder; and (iv) the Designee has the requisite authority to execute this Agreement on behalf of the Required Holders (as defined in
    the applicable Transaction Documents).

 

 

 

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	 	b.	In addition, the Company hereby represents
    and warrants to the Designee and the Starboard Funds holding the Merton Notes, that, as of the date hereof and as of the date of the consummation
    of the transactions contemplated hereby: (i) the Board of Directors of the Company approved the resolutions set forth in Schedule
    A attached hereto; (ii) no Subsidiary, other than Acacia Research Group, LLC (“ARG”), has any (a) Material
    Claims or Liabilities, whether direct or indirect, absolute, accrued or contingent, that would be required to be reflected on a balance
    sheet prepared with respect to such Person on a stand-alone basis in accordance with GAAP, (b) unusual forward or long-term commitments,
    (c) unrealized or anticipated losses from any unfavorable commitments, (d) contracts or commitments, including leases or with employees,
    except as set forth on Schedule B attached hereto, which, for purposes of the Merton Notes, shall not be a breach of
    Section 10 (g)(i)(3) thereof; or (e) litigation, arbitration or dispute, including regarding tax (clause (a) to and including clause
    (e) are collectively referred to herein as “Obligations”), other than legal and professional fees and royalty sharing
    arrangements, and related contracts or commitments, accrued in the ordinary course of the patent assertion business, and, in the case
    of (e), litigation with respect to such Subsidiaries as plaintiffs in Intellectual Property litigation, (iii) neither the Company, nor
    Merton or any of their respective Subsidiaries has any knowledge of any event, circumstance or information that that would give rise to
    a reasonable basis for the assertion against any Subsidiary, other than ARG, of any future Obligations material to such Subsidiary on
    a stand-alone basis, (iv) to the Company’s knowledge, no Subsidiary, other than ARG, has conducted any business or operations or
    has had any liabilities or obligations or owned any asset or been party to any agreement during the last five (5) years, or, since such
    Subsidiary has been formed if such Subsidiary was formed within the last five (5) years, other than their ordinary course activities of
    purchasing and licensing intellectual property and liabilities incidental to such activities and, in the case of AMO Holdco LLC, Viamet
    Holdco LLC and Malin J1 Limited, those assets listed on Schedule F hereto and those agreements listed on Schedule F, other
    than their ordinary course activities of holding such assets incidental to such activities; and (v) the Subsidiaries listed on Schedule
    C attached hereto, represent all Material Subsidiaries (as defined below) of the Company. As used herein, (i) “Material
    Subsidiary” means any Subsidiary of the Company that, (x) had total revenues for the twelve (12) month period ended December
    31, 2020 that were equal to, or more than, 1% of the consolidated revenues of the Company and its Subsidiaries or (y) as of December 31,
    2020 held 1% or more of the consolidated assets of the Company and its Subsidiaries, (ii) “Material Claims or Liabilities”
    means claims or liabilities to third parties greater than $1 million, and (iii) “Company’s Knowledge” means the
    actual knowledge or belief of Clifford Press, Al Tobia, Marc Booth, Richard Rosenstein, Jason Sonsini, Li Yu, Jennifer Graff or Nadereh
    Russell.

 

	10.	Fees and Expenses. The Company shall within three (3) Business Days of the date hereof reimburse the Designee or its designee(s) for all reasonable and documented costs and expenses incurred in connection with the transactions contemplated hereby (including all legal fees and disbursements in connection therewith, documentation and implementation of the transactions contemplated hereby).
	 	 
	11.	Post-Closing Covenant. Notwithstanding anything to the contrary: 

 

	 	a.	 Within thirty (30) days
after the date hereof (which date may be extended with the Collateral Agent’s sole reasonable discretion), the Company shall deliver,
or cause to be delivered a Cash Management Agreement, in form and substance reasonably satisfactory to the Collateral Agent, over the
Deposit Accounts listed on Schedule G hereto.
	 	 	 
	 	b.	 Within forty-five (45) days after the date hereof (which date may be extended
    with the Collateral Agent’s sole discretion), the Company shall deliver to the Collateral Agent the stock certificates for
    the following entities: (i) Novabiotics Limited, (ii) AMO Pharma Limited, (iii) Oxford Nanopore Technologies Limited, (iv) Malin
    J1 Limited, (v) Hospital Systems Corporation and (vi) Acacia Media Technologies Corporation.1 
	 	 	 
	 	c. 	Notwithstanding anything to the
    contrary contained in this Agreement or any Transaction Document, any breach of Section 11(a) or 11(b) of this Agreement shall constitute
    an “Event of Default” under the Merton Notes.

 

 

 

1
The schedules reflect the current share certificate numbers for the shares held by the companies, company is in process
of cutting new certificates.

 

 

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	12.	Indemnification. In consideration of the Designee’s execution and delivery of this Agreement and in addition to all of the Company’s other obligations under this Agreement and the other Transaction Documents, the Company shall defend, protect, indemnify and hold harmless the Designee, each Starboard Fund and each other holder of the Securities and all of their stockholders, partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”), as incurred, from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in this Agreement, any other Transaction Document or any other certificate, instrument or document contemplated hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in this Agreement, any other Transaction Document or any other certificate, instrument or document contemplated hereby or thereby, (c) any cause of action, suit or claim brought or made against such Indemnitee by the Company or a third party (including for these purposes a derivative action brought on behalf of the Company) and arising out of or resulting from (i) the execution, delivery, performance or enforcement of this Agreement, any other Transaction Document or any other certificate, instrument or document contemplated hereby or thereby or any advice or assistance provided to or on behalf of the Company by any Indemnitee at the request of the Company, (ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, or (iii) the status of such Buyer or holder of the Securities as an investor in the Company pursuant to the transactions contemplated by this Agreement and any of the other Transaction Documents. For the avoidance of doubt, the indemnification set forth in this Section 11 is intended to apply, and shall apply, to direct claims asserted by the Designee or any Starboard Fund against the Company as well as any third party claims asserted by an Indemnitee (other than the Designee or a Starboard Fund) against the Company. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities that is permissible under applicable law. Except as otherwise set forth herein, the mechanics and procedures with respect to the rights and obligations under this Section 13 shall be the same as those set forth in Section 7 of the Registration Rights Agreement.
	 	 
	13.	Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under the Securities Purchase Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof to the fullest extent enforceable under applicable law. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

 

 

 

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	14.	Counterparts; Headings. This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.  Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

	15.	Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).
	 	 
	16.	Amendments. Any amendments or modifications hereto must be executed in writing by all parties hereto.
	 	 
	17.	Amendment
to Pledge and Security Agreement. In accordance with Section 10(a) of the Pledge and Security Agreement, the Company and the Collateral
Agent hereby agree as follows:

 

	 	a.	Following
the issuance of the June 2021 Merton Notes, the third WHEREAS clause is hereby amended and restated in its entirety as follows:
	 	 	 
	 	 	“WHEREAS, pursuant to the Securities
Purchase Agreement, certain Buyers purchased from Merton certain senior secured notes issued on March 31, 2021 (as amended, restated,
amended and restated, supplemented or otherwise modified from time to time, the “March 31 Notes”), in an original aggregate
principal amount of $50,000,000;”
	 	 	 
	 	b.	Following
the issuance of the June 2021 Merton Notes, the following WHEREAS clause shall be inserted immediately after the third WHEREAS clause
and immediately prior to the fourth WHEREAS clause immediately prior to the effectiveness of this Agreement:
	 	 	 
	 	 	“WHEREAS, pursuant to the Securities
Purchase Agreement, certain Buyers purchased from Merton certain senior secured notes issued on June 30, 2021 (as amended, restated, amended
and restated, supplemented or otherwise modified from time to time, the “June 2021 Notes” and, together with the June
30 Notes and the March 31 Notes, collectively, the “Notes”), in an original aggregate principal amount of $30,000,000;”
	 	 	 
	 	c.	Following
the issuance of the June 2021 Merton Notes, Sections 4(h), 4(i), and 4(j) are hereby amended and restated in their entirety as follows:
	 	 	 
	 	 	“(h) Except with respect to the
laws of any non-U.S. jurisdiction, the exercise by the Collateral Agent of any of its rights and remedies hereunder will not contravene
any law or any contractual restriction binding on or otherwise affecting such Grantor or any of its properties and will not result in
or require the creation of any Lien, upon or with respect to any of its properties (other than as set forth in this Agreement or a Permitted
Lien).

 

 

 

 

 

 

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	 	 	(i) No authorization or approval or other
action by, and no notice to or filing (other than any customary pre-emptive rights) with, any governmental authority or other regulatory
body, or any other Person, is required for (i) the grant by such Grantor, or the perfection, of the security interest purported to be
created hereby in the Collateral, or (ii) the exercise by the Collateral Agent of any of its rights and remedies hereunder, other than
(A) those that have been obtained or will be obtained and/or made and filings and recordings with respect to Collateral to be made, or
otherwise delivered to the Collateral Agent for filing or recordation, on or contemporaneously with the Issuance Date, (B) any immaterial
authorization, approval, other action or notice of filing and (C) solely in the case of this clause (iii), except as may be required in
connection with any sale of any Pledged Interests by laws affecting the offering and sale of securities generally. No authorization or
approval or other action by, and no notice to or filing with, any governmental authority or any other Person, is required for the perfection
of the security interest purported to be created hereby in the Collateral, except (A) filings pursuant to the UCC in the office of the
Secretary of State (or equivalent filing office) of the relevant State(s) of the respective jurisdictions of organization of the Grantors,
(B) filings in the United States Patent and Trademark Office and the United States Copyright Office, as applicable, (C) delivery of Collateral
consisting of certificates (if any) evidencing instruments, notes and debt securities required to be pledged hereunder, (D) delivery of
Collateral consisting of certificates (if any) evidencing Equity Interests required to be pledged hereunder, (E) solely with respect to
any fee-owned facility required to be subject to a Mortgage, fixture filings pursuant to the UCC in the applicable county filing office
of the relevant State(s) in which such fee-owned facility is located, (F) the recording of any Mortgage on any fee-owned facility in the
applicable county office and the delivery of other real property deliverables to be mutually agreed in respect thereof, and (G) entering
into Cash Management Agreements with respect to any Cash Management Accounts (excluding any Excluded Accounts) (subclauses (A) -- (G),
each a “Perfection Requirement” and collectively, the “Perfection Requirements”); provided,
that such authorization or approval or other action, notice or filing with respect to Arix Bioscience PLC, Induction Healthcare Holdings
PLC and Immunocore Holdings plc shall be subject to the requirements of the Governing Documents of such Persons. Notwithstanding anything
to the contrary contained herein, no Perfection Requirement shall be required to be undertaken with respect to the laws of any non-U.S.
jurisdiction to create or perfect a security interest in the Collateral (and no security agreements or pledge agreements governed by the
laws of any non-U.S. jurisdiction shall be required in respect of such assets) to the extent (i) it would reasonably be expected to cause
any material adverse tax consequences to any Grantor or (ii) the Collateral Agent and the Company reasonably determine that the cost of
creating or perfecting such security interest is excessive in relation to the benefits to the Collateral Agent and the Buyers therefrom.

 

	 	 	(j) This Agreement creates in favor of
the Collateral Agent a legal, valid and enforceable security interest in the Collateral secured thereby, as security for the Secured Obligations,
except as may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement
of creditors’ rights generally and by general principles of equity or (ii) the laws of any non-U.S. jurisdiction. The compliance
with the Perfection Requirements will result in the perfection of such security interests. Such security interests in the Collateral are,
or in the case of Collateral in which such Grantor obtains rights after the date hereof, will be, perfected, first priority security interests,
subject only to Permitted Liens, Intellectual Property Rights and the recording of such instruments of assignment. Such Perfection Requirements
and all other action necessary or desirable to perfect and protect such security interest have been duly made or taken, except for (i)
the Collateral Agent’s having possession of all Documents, Chattel Paper, Instruments and cash constituting Collateral after the
date hereof, (ii) the other filings and recordations and actions described in Section 4(i) hereof and (iii) any other Perfection Requirements
that the Collateral Agent agrees may be made or taken after the date of this Agreement.”
	 	 	 
	 	d.	After
giving effect to this Agreement, Schedule VIII of the Pledge and Security Agreement shall be replaced in its entirety with Schedule D
to this Agreement.
	 	 	 

 

 

 

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	18.	Amendment to Guaranty. In accordance with Section 11(b) of the Guaranty, the Guarantors and the Designee on behalf of the Required Holders (as defined in the Merton Notes) hereby agree as follows:
	 	 
	 	a.	Following
the issuance of the June 2021 Merton Notes, the third WHEREAS clause is hereby amended and restated in its entirety as follows:
	 	 	 
	 	 	“WHEREAS, pursuant to the Securities
Purchase Agreement, certain Buyers purchased from Merton certain senior secured notes issued on March 31, 2021 (as amended, restated,
amended and restated, supplemented or otherwise modified from time to time, the “March 31 Notes”), in an original aggregate
principal amount of $50,000,000;”
	 	 	 
	 	b.	Following
the issuance of the June 2021 Merton Notes, the following WHEREAS clause shall be inserted immediately after the third WHEREAS clause
and immediately prior to the fourth WHEREAS clause immediately prior to the effectiveness of this Agreement:
	 	 	 
	 	 	“WHEREAS, pursuant to the Securities
Purchase Agreement, certain Buyers purchased from Merton certain senior secured notes issued on June 30, 2021 (as amended, restated, amended
and restated, supplemented or otherwise modified from time to time, the “June 2021 Notes” and, together with the June
30 Notes and the March 31 Notes, collectively, the “Notes”), in an original aggregate principal amount of $30,000,000;”
	 	 	 
	19.	Amendment to Stock Pledge Agreement. In accordance with Section 15(a) of the Stock Pledge Agreement, the company and the Collateral Agent hereby agree as follows:
	 	 	 
	 	a.	Following
the issuance of the June 2021 Merton Notes, the third WHEREAS clause is hereby amended and restated in its entirety as follows:
	 	 	 
	 	 	“WHEREAS, pursuant to the Securities
Purchase Agreement, certain Buyers purchased from Merton certain senior secured notes issued on March 31, 2021 (as amended, restated,
amended and restated, supplemented or otherwise modified from time to time, the “March 31 Notes”), in an original aggregate
principal amount of $50,000,000;”
	 	 	 
	 	b.	Following
the issuance of the June 2021 Merton Notes, the following WHEREAS clause shall be inserted immediately after the third WHEREAS clause
and immediately prior to the fourth WHEREAS clause immediately prior to the effectiveness of this Agreement:

 

	 	 	“WHEREAS, pursuant to the Securities
Purchase Agreement, certain Buyers purchased from Merton certain senior secured notes issued on June 30, 2021 (as amended, restated, amended
and restated, supplemented or otherwise modified from time to time, the “June 2021 Notes” and, together with the June
30 Notes and the March 31 Notes, collectively, the “Notes”), in an original aggregate principal amount of $30,000,000;”
	 	 	 
	 	c.	Following
the issuance of the June 2021 Merton Notes, Sections 5(a), 5(b) and 5(g) are hereby amended and restated in their entirety as follows:
	 	 	 
	 	 	“(a) The Pledged Shares have been
duly authorized and validly issued, and are fully paid and non-assessable and subject to no options to purchase or similar rights. All
information set forth in Schedule 1 on the date of this Agreement attached hereto relating to the Pledged Shares is accurate and complete.
	 	 	 

 

 

 

 

    	 	8	 

     

    

 

	 	 	(b) No authorization or approval or other
action by, and no notice to or filing (other than any customary pre-emptive rights) with, any governmental authority or other regulatory
body, or any other Person, is required for (i) the grant by such Pledgor, or the perfection, of the security interest purported to
be created hereby in the Collateral, or (ii) the exercise by the Collateral Agent of any of its rights and remedies hereunder, other
than (A) those that have been obtained or will be obtained and/or made and filings and recordings with respect to Collateral to be made,
or otherwise delivered to the Collateral Agent for filing or recordation, on or contemporaneously with the Issuance Date, (B) any immaterial
authorization, approval, other action or notice of filing and (C) solely in the case of this clause (iii), except as may be required in
connection with any sale of any Pledged Shares by laws affecting the offering and sale of securities generally. No authorization or approval
or other action by, and no notice to or filing with, any governmental authority or any other Person, is required for the perfection of
the security interest purported to be created hereby in the Collateral, except (A) filings pursuant to the UCC in the office of the
Secretary of State (or equivalent filing office) of the relevant State(s) of the respective jurisdictions of organization of the Pledgors,
(B) delivery of Collateral consisting of certificates (if any) evidencing Equity Interests required to be pledged hereunder, and
(C) entering into Control Agreements with respect to any Collateral which is certificated (subclauses (A) -- (C), each a “Perfection
Requirement” and collectively, the “Perfection Requirements”); provided, that such authorization
or approval or other action, notice or filing with respect to Malin J1 Limited shall be subject to the requirements of its Governing Documents.
Notwithstanding anything to the contrary contained herein, no Perfection Requirement shall be required to be undertaken with respect to
the laws of any non-U.S. jurisdiction to create or perfect a security interest in the Collateral (and no security agreements or pledge
agreements governed by the laws of any non-U.S. jurisdiction shall be required in respect of such assets) to the extent (i) it would reasonably
be expected to cause any material adverse tax consequences to any Transaction Party or Pledgor or (ii) the Collateral Agent and the Transaction
Parties reasonably determine that the cost of creating or perfecting such security interest is excessive in relation to the benefits to
the Collateral Agent and the Holders therefrom.
	 	 	 
	 	 	(g) As of the date of this Agreement,
such Pledgor has title to the Pledged Shares of such Pledgor (as set forth on Schedule I on the date of this Agreement) and will have
title to each other item of Collateral hereafter acquired by such Pledgor, free of all Liens except the security interest of the Collateral
Agent and Permitted Liens. No financing statement covering all or any part of the Collateral is on file in any public office (except for
any financing statements filed by the Collateral Agent). Without limiting the foregoing, all certificates, agreements or instruments representing
or evidencing the Pledged Shares in existence on the date hereof have been delivered to the Collateral Agent in suitable form for transfer
by delivery or accompanied by duly executed instruments of transfer or assignment in blank.”
	 	 	 
	 	d.	After
giving effect to this Agreement and the Stock Pledge Supplement, Schedule I of the Stock Pledge Agreement shall be replaced in its entirety
with Schedule E to this Agreement.

 

	20.	Security Documents. Notwithstanding anything to the contrary in any other Transaction Document (other than Section 10 of the Notes), the parties hereto hereby agree and acknowledge that as of the date hereof (after giving effect to this Agreement and that certain Supplement No. 3 to the Stock Pledge Agreement, dated as of the date hereof, by Pixel Acquisition Holdco LLC and Merton AMW Healthcare Holdco LLC, in favor of the Collateral Agent) that the Company and the following Subsidiaries shall be party to the Security Documents as follows: 

 

	 	(a)	 With respect to the Security and Pledge Agreement, (i) the Company, (ii) Merton and (iii) Merton Oxford Holdings LLC. 
	 	 	 
	 	(b) 	With respect to the Guaranty, (i) the Company, (ii) Merton and (iii) Merton Oxford Holdings LLC. 
	 	 	 
	 	(c) 	With respect to the Stock Pledge Agreement, (i) Acacia Research Group LLC, (ii) Advanced Skeletal Innovations LLC, (iii) Saint Lawrence Communications LLC, (iv) Viamet HoldCo LLC, (v) AMO Holdco LLC, (vi) Acacia Corporate Development Investment LLC, (vii) In-Depth Test LLC, (viii) Pixel Acquisition Holdco LLC and (ix) Merton AMW Healthcare Holdco LLC; provided, the Company shall not be party to the Stock Pledge Agreement.

 

	21.	
    Perfection Certificate. The Company hereby agrees to deliver
    that certain Perfection Certificate, dated as of the date hereof, for (i) Pixel Acquisition Holdco LLC and (ii) Merton AMW Healthcare
    Holdco LLC.

     

 

[Signature Page Follows]

 

 

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF,
the parties have duly executed this Agreement as of the date first above written.

 

	 	COMPANY:
	 	 
	 	ACACIA RESEARCH CORPORATION
	 	 
	 	 
	 	By:	/s/ Clifford Press
	 	Name:	Clifford Press
	 	Title:	Chief Executive Officer
	 	 	 	 

 

 

 

 

 

	 	MERTON:
	 	 
	 	MERTON ACQUISITION HOLDCO LLC
	 	 
	 	 
	 	By:	/s/ Clifford Press
	 	Name:	Clifford Press
	 	Title:	Chief Executive Officer
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	11	 

     

    

 

	 	ACACIA RESEARCH GROUP
	 	 
	 	 
	 	By: 	/s/ Marc Booth
	 	Name: Marc Booth
	 	Title: Chief Executive Officer

 

 

	 	MERTON OXFORD HOLDINGS LLC
	 	 
	 	 
	 	By: 	/s/ Clifford Press
	 	Name: Clifford Press
	 	Title: Chief Executive Officer

 

 

	 	SAINT LAWRENCE COMMUNICATIONS LLC
	 	 
	 	 
	 	By: 	/s/ Marc Booth
	 	Name: Marc Booth
	 	Title: Chief Executive Officer

 

 

	 	ADVANCED SKELETAL INNOVATIONS LLC
	 	 
	 	 
	 	By: 	/s/ Marc Booth
	 	Name: Marc Booth
	 	Title: Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	12	 

     

    

 

	 	VIAMET HOLDCO LLC
	 	 
	 	 
	 	By: 	/s/ Marc Booth
	 	Name: Marc Booth
	 	Title: Chief Executive Officer

 

 

	 	AMO HOLDCO LLC
	 	 
	 	 
	 	By: 	/s/ Clifford Press
	 	Name: Clifford Press
	 	Title: Chief Executive Officer

 

 

	 	ACACIA CORPORATE DEVELOPMENT INVESTMENT LLC
	 	 
	 	 
	 	By: 	/s/ Marc Booth
	 	Name: Marc Booth
	 	Title: Chief Executive Officer

 

 

	 	IN-DEPTH TEST LLC
	 	 
	 	 
	 	By: 	/s/ Marc Booth
	 	Name: Marc Booth
	 	Title: Chief Executive Officer

 

 

 

 

 

 

 

 

 

    	 	13	 

     

    

 

IN WITNESS WHEREOF,
the parties have duly executed this Agreement as of the date first above written.

 

	 	DESIGNEE:
	 	 
	 	STARBOARD VALUE LP
	 	 
	 	 
	 	By:	/s/ Jeffrey C. Smith
	 	Name:	Jeffrey C. Smith
	 	Title:	Authorized Signatory
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	14	 

     

    

 

Exhibit A

 

Form of June 2021 Merton Note

 

THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL SELECTED BY THE HOLDER, IN A FORM REASONABLY SATISFACTORY TO
THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS ELIGIBLE TO BE SOLD OR SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE, INCLUDING
SECTIONS 3 AND 13(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE MAY BE LESS THAN THE AMOUNT SET FORTH ON THE FACE HEREOF PURSUANT
TO SECTION 3 OF THIS NOTE.

 

Merton
Acquisition HoldCo LLC

 

SENIOR
SECURED NOTE

 

	Issuance Date: June [●], 2021	Original Principal Amount: U.S. $[●]

 

FOR VALUE RECEIVED, Merton
Acquisition HoldCo LLC, a Delaware limited liability company (the “Company”), hereby promises to pay to [●] or
registered assigns (the “Holder”) in cash the amount set out above as the Original Principal Amount (as reduced pursuant
to the terms hereof pursuant to redemption or otherwise, the “Principal”) when due, whether upon the Maturity Date
(as defined below), acceleration, redemption or otherwise (in each case in accordance with the terms hereof) and to pay interest (“Interest”)
on any outstanding Principal at the applicable Interest Rate from the date set out above as the Issuance Date (the “Issuance
Date”) until the same becomes due and payable, whether upon an Interest Payment Date (as defined below), the Maturity Date,
acceleration, redemption or otherwise (in each case in accordance with the terms hereof). This Senior Secured Note (including all Senior
Secured Notes issued in exchange, transfer or replacement hereof, this “Note”) is issued pursuant to Section 2 of that
certain Third Supplemental Agreement, dated as of June [●], 2021, by and among Parent Guarantor, the Company and Starboard Value
LP (the “Third Supplemental Agreement”), on an Additional Closing Date that is the Issuance Date (collectively, the
“Notes” and such other Senior Secured Notes, the “Other Notes”). Certain capitalized terms used
herein are defined in Section 27.

 

PAYMENTS OF PRINCIPAL; PREPAYMENT.
On the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal, any accrued and unpaid
Interest and any accrued and unpaid Late Charges (as defined in Section 19(b)) on such Principal and Interest. The “Maturity
Date” shall be October 15, 2021. Other than as specifically permitted or required by this Note, the Supplemental Agreement and
the Exchange Agreement, the Company or the Parent Guarantor may not prepay any portion of the outstanding Principal, accrued and unpaid
Interest or accrued and unpaid Late Charges on Principal and Interest, if any.

 

INTEREST. Interest on
this Note shall commence accruing on the Issuance Date at the Interest Rate and shall be computed on the basis of a 360-day year and twelve
30-day months and shall be payable semi-annually in arrears on each November 15 and May 15 after the Issuance Date, provided that
if any such date falls on a day that is not a Business Day, the next day that is a Business Day (each, an “Interest Payment Date”),
to the Holder of record at the close of business on the preceding November 1 and May 1 (even if such day is not a Business Day) (each,
an “Interest Record Date”). Interest shall be payable on each Interest Payment Date, to the record holder of this Note
on the applicable Interest Record Date, in cash, by wire transfer of immediately available funds pursuant to wire instructions provided
by the Holder in writing to the Company. Prior to the payment of Interest on an Interest Payment Date, Interest on this Note shall accrue
at the Interest Rate and be payable by way of inclusion of the Interest in the Redemption Amount on each Redemption Date. From and after
the occurrence and during the continuance of an Event of Default, the Interest Rate shall be increased to ten percent (10.0%) per annum.
In the event that such Event of Default is subsequently cured, the adjustment referred to in the preceding sentence shall cease to be
effective as of the date of such cure; provided, that the Interest as calculated and unpaid at such increased rate during the continuance
of such Event of Default shall continue to apply to the extent relating to the days after the occurrence of such Event of Default through
and including the date of cure of such Event of Default; provided, further, that for the purpose of this Section 2, such
Event of Default shall not be deemed cured unless and until any accrued and unpaid Interest shall be paid to the Holder, including, without
limitation, Interest accrued at the increased rate of ten percent (10.0%) per annum.

 

 

 

    	 	15	 

     

    

 

REGISTRATION; BOOK-ENTRY.
The Company shall maintain a register (the “Register”) for the recordation of the names and addresses of the holders
of each Note and the Principal amount of the Notes (and stated interest thereon) held by such holders (the “Registered Notes”).
The entries in the Register shall be conclusive and binding for all purposes absent manifest error. The Company and the holders of the
Notes shall treat each Person whose name is recorded in the Register as the owner of a Note for all purposes, including, without limitation,
the right to receive payments of Principal and Interest, if any, hereunder, notwithstanding notice to the contrary. A Registered Note
may be assigned or sold in whole or in part only by registration of such assignment or sale on the Register. Upon its receipt of a request
to assign or sell all or part of any Registered Note by the Holder, the Company shall record the information contained therein in the
Register and issue one or more new Registered Notes in the same aggregate Principal amount as the Principal amount of the surrendered
Registered Note to the designated assignee or transferee pursuant to Section 12. Notwithstanding anything to the contrary in this Section
3, the Holder may assign the Note or any portion thereof to an Affiliate of the Holder or a Related Fund of the Holder without delivering
a request to assign or sell such Note to the Company and the recordation of such assignment or sale in the Register; provided,
that (x) the Company may continue to deal solely with such assigning or selling Holder unless and until the Holder has delivered
a request to assign or sell such Note or portion thereof to the Company for recordation in the Register; (y) the failure of such assigning
or selling Holder to deliver a request to assign or sell such Note or portion thereof to the Company shall not affect the legality, validity,
or binding effect of such assignment or sale and (z) such assigning or selling Holder shall, acting solely for this purpose as a non-fiduciary
agent of the Company, maintain a register (the “Related Party Register”) comparable to the Register on behalf
of the Company, and any such assignment or sale shall be effective upon recordation of such assignment or sale in the Related Party Register.
Notwithstanding anything to the contrary set forth herein, upon redemption of any portion of this Note in accordance with the terms hereof
or cancellation of any portion of this Note in accordance with Section 26, the Holder shall not be required to physically surrender this
Note to the Company unless (A) the full Redemption Amount represented by this Note is being redeemed or cancelled, in which case the Holder
shall deliver such certificate to the Company as soon as reasonably practicable following such redemption or cancellation or (B) the Holder
has provided the Company with prior written notice requesting reissuance of this Note upon physical surrender of this Note. The Holder
and the Company shall maintain records showing the Principal, Interest and Late Charges, if any, redeemed and/or cancelled and the dates
of such redemptions and/or cancellations or shall use such other method, reasonably satisfactory to the Holder and the Company, so as
not to require physical surrender of this Note upon redemption or cancellation. If the Company does not update the Register to record
such Principal, Interest and Late Charges paid and the dates of such payments and cancellations within two (2) Business Days of such occurrence,
then the Register shall be automatically deemed updated to reflect such occurrence.

 

RIGHTS UPON EVENT OF DEFAULT.

 

(a)    Event
of Default. Each of the following events shall constitute an “Event of Default” and each of the events in
clauses (iv) and (v) shall constitute a “Bankruptcy Event of Default”:

 

(i)     
the failure of the applicable Registration Statement required to be filed pursuant to the Registration Rights Agreement to be filed
or declared effective within the applicable time period specified in the Registration Rights Agreement, or, at any time while the
applicable Registration Statement is required to be maintained effective pursuant to the terms of the Registration Rights Agreement,
the effectiveness of the applicable Registration Statement lapses for any reason (including, without limitation, the issuance of a
stop order) or is unavailable to any holder of the Notes for sale of all of such holder’s Registrable Securities in accordance
with the terms of the Registration Rights Agreement, and such lapse or unavailability continues for a period of ten (10) consecutive
Trading Days or for more than an aggregate of fifteen (15) Trading Days in any 365-day period (other than days during an Allowable
Grace Period (as defined in the Registration Rights Agreement));

 

(ii)     
the Company’s failure to pay to the Holder any amount of Principal, Interest, Late Charges, Redemption Price or other amounts
when and as due under this Note or any other Transaction Document, except, in the case of a failure to pay Interest and/or Late
Charges when and as due, in which case only if such failure continues for a period of at least an aggregate of two (2) Business
Days;

 

(iii)     
any acceleration or default-triggered redemption or conversion prior to maturity of any Indebtedness or preferred equity of the
Parent Guarantor and/or any of its Subsidiaries in an aggregated principal amount and/or stated amount in excess of $10,000,000;

 

 

 

 

    	 	16	 

     

    

 

(iv)     
the Parent Guarantor or any of its Subsidiaries, pursuant to or within the meaning of Title 11, U.S. Code, or any similar federal,
foreign or state law for the relief of debtors (collectively, “Bankruptcy Law”), (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
receiver, trustee, assignee, liquidator or similar official (a “Custodian”), (D) makes a general assignment for
the benefit of its creditors or (E) admits in writing that it is generally unable to pay its debts as they become due;

 

(v)    a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (A) is for relief against the Parent
Guarantor or any of its Subsidiaries in an involuntary case, (B) appoints a Custodian of the Parent Guarantor or any of its
Subsidiaries or (C) orders the liquidation of the Parent Guarantor or any of its Subsidiaries;

 

(vi)    one
or more judgments, orders or awards for the payment of money aggregating (above any insurance coverage or indemnity from a credit
worthy party so long as the Parent Guarantor provides the Holder a written statement from such insurer or indemnity provider (which
written statement shall be reasonably satisfactory to the Holder) to the effect that such judgment, order or award is covered by
insurance or an indemnity and the Parent Guarantor will receive the proceeds of such insurance or indemnity within thirty (30) days
of the issuance of such judgment, order or award) in excess of $20,000,000 are rendered against the Parent Guarantor or any of its
Subsidiaries and which judgments, orders or awards are not, within thirty (30) days after the entry thereof, bonded, discharged or
stayed pending appeal, or are not discharged within thirty (30) days after the expiration of such stay;

 

(vii)    other
than as specifically set forth in another clause of this Section 4(a), the Parent Guarantor or any of its Subsidiaries breaches any
representation, warranty, covenant or other term or condition set forth in this Note, except, in the case of a breach of a covenant
or other term or condition of any such agreement which is curable, only if such breach continues for a period of at least an
aggregate of twenty (20) days;

 

(viii)    if the Holder is a Designee, other than as specifically set forth in another clause of this Section 4(a), the Parent Guarantor
or any of its Subsidiaries breaches any representation, warranty, covenant or other term or condition set forth in Sections 3(b), 3(c),
3(d), 3(e), 3(i), 3(j), 3(k), 3(l), 3(p), 3(q), 3(r), 3(v), 3(ee), 3(ii), 3(mm), 3(nn), 3(qq), 4(v) or 4(z) of the Securities Purchase
Agreement, except, in the case of a breach of a covenant or other term or condition of any such agreement which is curable, only if such
breach continues for a period of at least an aggregate of thirty (30) days;

 

(ix)    any breach or failure in any respect to comply with Section 10 of this Note, except, in the case of a breach or a failure
which is curable, only if such breach continues for a period of at least an aggregate of thirty (30) days;

 

(x)    any material provision of any Security Document (as determined by the Collateral Agent) shall at any time for any reason (other
than pursuant to the express terms thereof) cease to be valid and binding on or enforceable against the Parent Guarantor or any Subsidiary
intended to be a party thereto, or the validity or enforceability thereof shall be contested by any party thereto, or a proceeding shall
be commenced by the Parent Guarantor or any Subsidiary or any governmental authority having jurisdiction over any of them, seeking to
establish the invalidity or unenforceability thereof, or the Parent Guarantor or any Subsidiary shall deny in writing that it has any
liability or obligation purported to be created under any Security Document;

 

(xi)    any Security Document or any other security document, after delivery thereof pursuant hereto, shall for any reason fail or cease
to create a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien in favor of the
Collateral Agent for the benefit of the holders of the Notes on any Collateral purported to be covered thereby;

 

(xii)      any bank at which any deposit account, blocked account, or lockbox account of the Parent Guarantor or any Subsidiary is maintained
shall fail to comply with any material term of any deposit account, blocked account, lockbox account or similar agreement to which such
bank is a party or any securities intermediary, commodity intermediary or other financial institution at any time in custody, control
or possession of any investment property of the Parent Guarantor or any Subsidiary shall fail to comply with any of the terms of any investment
property control agreement to which such Person is a party (it being understood that only accounts pursuant to which the Collateral Agent
has requested account control agreements should be subject to this clause (xii));

 

 

 

    	 	17	 

     

    

 

(xiii)    a false or inaccurate certification (including a false or inaccurate deemed certification) by the Company as to whether any Event
of Default has occurred;

 

(xiv)    the Parent Guarantor fails to remove any restrictive legend on any certificate or any shares of Common Stock issued to the Holder
upon conversion or exercise (as the case may be) of any Securities (as defined in the Securities Purchase Agreement) acquired by the Holder
under the Securities Purchase Agreement as and when required by such Securities, the Certificate of Designations or the Securities Purchase
Agreement, unless otherwise then prohibited by applicable federal securities laws, and any such failure remains uncured for at least five
(5) consecutive Trading Days;

 

(xv)    the Company or the Parent Guarantor becomes an “investment company,” a company controlled by an “investment company”
or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company”
as such terms are defined in the Investment Company Act of 1940, as amended;

 

(xvi)    (A) the suspension of the Common Stock from trading on an Eligible Market for a period of five (5) consecutive Trading Days or
for more than an aggregate of fifteen (15) Trading Days in any 365-day period or (B) the failure of the Common Stock to be listed on an
Eligible Market;

 

(xvii)    at any time following the fifth (5th) consecutive Business Day after an Authorized Share Failure (as defined in the Series B Warrants),
except, solely with respect to the first occurrence of an Authorized Share Failure hereunder, to the extent the Parent Guarantor is complying
with the terms set forth in Section 1(h) of the Series B Warrants;

 

(xviii)    the Parent Guarantor does not directly or indirectly own 100% of the Equity Interests of the Company;

 

(xix)    any Event of Default (as defined in the Other Notes) occurs with respect to any Other Notes;

 

(xx)    any Event of Default (as defined in the Additional Notes) occurs with respect to any Additional Notes;

 

(xxi)    any breach of Sections 11(a)-(b) of the Third Supplemental Agreement; or

 

(xxii)    the failure to deliver the certificate as required by Section 10(h).

 

(b)    Redemption Right. At any time after the earlier of the Holder’s receipt of an Event of Default Notice (as defined
in Section 10(e)) and the Holder becoming aware of an Event of Default, the Holder may require the Company to redeem (an “Event
of Default Redemption”) all or any portion of this Note by delivering written notice thereof (the “Event of Default
Redemption Notice”) to the Company, which Event of Default Redemption Notice shall indicate the portion of this Note the Holder
is electing to require the Company to redeem. Each portion of this Note subject to redemption by the Company pursuant to this Section
4(b) shall be redeemed by the Company in cash by wire transfer of immediately available funds at a price equal to the Redemption Amount
being redeemed (the “Event of Default Redemption Price”). Redemptions required by this Section 4(b) shall be made in
accordance with the provisions of Section 8. To the extent redemptions required by this Section 4(b) are deemed or determined by a court
of competent jurisdiction to be prepayments of the Note by the Company, such redemptions shall be deemed to be voluntary prepayments.
The Company and the Holder agree that in the event of the Company’s redemption of any portion of the Note under this Section 4(b),
the Holder’s damages would be uncertain and difficult to estimate because of the parties’ inability to predict future interest
rates and the uncertainty of the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any redemption
premium due under this Section 4(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s
actual loss of its investment opportunity and not as a penalty.

 

 

 

 

    	 	18	 

     

    

 

(c)    Mandatory
Redemption upon Bankruptcy Event of Default. Notwithstanding anything to the contrary herein, upon any Bankruptcy Event of
Default, whether occurring prior to or following the Maturity Date, the Company shall immediately pay to the Holder an amount in
cash representing the applicable Event of Default Redemption Price, without the requirement for any notice or demand or other action
by the Holder or any other Person; provided that the Holder may, in its sole and absolute discretion, waive such right to
receive payment upon a Bankruptcy Event of Default, in whole or in part, and any such waiver shall not affect any other rights of
the Holder hereunder, including any other rights in respect of such Bankruptcy Event of Default and any right to payment of the
Event of Default Redemption Price or any other Redemption Price, as applicable. Redemptions required by this Section 4(c) shall be
made in accordance with the provisions of Section 8.

 

RIGHTS UPON FUNDAMENTAL TRANSACTION
AND CHANGE OF CONTROL.

 

(d)    Assumption.
Upon the occurrence or consummation of any Fundamental Transaction with respect to the Company or the Parent Guarantor, and it shall
be a required condition to the occurrence or consummation of any Fundamental Transaction that, the Company or the Parent Guarantor,
as applicable, and the Successor Entity or Successor Entities, jointly and severally, shall succeed to the Company or the Parent
Guarantor, as applicable, and the Company or the Parent Guarantor, as applicable, shall cause any Successor Entity or Successor
Entities to jointly and severally succeed to the Company or the Parent Guarantor, as applicable, and be added to the term
“Company” or “Parent Guarantor,” as applicable, under this Note (so that from and after the occurrence or
consummation of such Fundamental Transaction, each and every provision of this Note referring to the “Company” or the
“Parent Guarantor,” as applicable, shall refer instead to each of the Company or the Parent Guarantor, as applicable,
and the Successor Entity or Successor Entities, jointly and severally), and the Successor Entity or Successor Entities, jointly and
severally with the Company or the Parent Guarantor, as applicable, may exercise every right and power of the Company or the Parent
Guarantor, as applicable, prior thereto and the Successor Entity or Successor Entities shall assume all of the obligations of the
Company or the Parent Guarantor, as applicable, prior thereto under this Note with the same effect as if the Company or the Parent
Guarantor, as applicable, and such Successor Entity or Successor Entities, jointly and severally, had been named as the Company or
the Parent Guarantor, as applicable, in this Note. The provisions of this Section 5(a) shall apply similarly and equally to
successive Fundamental Transactions.

 

(e)    Redemption Right.
Not less than ten (10) days prior to the consummation of a Change of Control, the Company shall deliver written notice thereof to the
Holder (a “Change of Control Notice”) setting forth a description of such transaction in reasonable detail and the
anticipated date of the consummation of such Change of Control if then known. At any time during the period beginning on the earliest
to occur of (x) the public announcement of any oral or written agreement by the Parent Guarantor or any of its Subsidiaries, upon consummation
of which the transaction contemplated thereby would reasonably be expected to result in a Change of Control, (y) the Holder’s receipt
of a Change of Control Notice, and (z) the consummation of such transaction which results in a Change of Control, and ending twenty-five
(25) Trading Days after the date of the consummation of such Change of Control, the Holder may require the Company to redeem all or any
portion of this Note by delivering written notice thereof (a “Holder Change of Control Redemption Notice”) to the
Company, which Holder Change of Control Redemption Notice shall indicate the Redemption Amount the Holder is electing to require the
Company to redeem. Within ten (10) days before or after the applicable Change of Control, the Company may redeem (a “Company
Change of Control Redemption”) all but not less than all of this Note by delivering written notice (a “Company Change
of Control Redemption Notice” and, together with a Holder Change of Control Redemption Notice, a “Change of Control
Redemption Notice”) to the Holder, which Company Change of Control Redemption Notice shall indicate the Redemption Amount that
is subject to such Company Change of Control Redemption; provided, that a Company Change of Control Redemption shall only be permitted
with respect to a Change of Control in which one hundred percent (100%) of the Equity Interests of the Company is purchased for cash
and/or Cash Equivalents. If the Company elects to cause a Company Change of Control Redemption pursuant to this Section 5(b), then
it must simultaneously take the same action with respect to all Other Notes and Additional Notes then outstanding. The portion of this
Note subject to redemption pursuant to this Section 5(b) shall be redeemed by the Company in cash by wire transfer of immediately available
funds at a price equal to the sum of (A) the Redemption Amount of the Notes being redeemed and (B) the Make-Whole Amount (the “Change
of Control Redemption Price”). Redemptions required by this Section 5 shall be made in accordance with the provisions of Section
8 and shall have priority to payments to stockholders in connection with a Change of Control. To the extent redemptions required by this
Section 5(b) are deemed or determined by a court of competent jurisdiction to be prepayments of the Note by the Company, such redemptions
shall be deemed to be voluntary prepayments. The parties hereto agree that in the event of the Company’s redemption of any portion
of the Note under this Section 5(b), the Holder’s damages would be uncertain and difficult to estimate because of the parties’
inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity for
the Holder. Accordingly, any redemption premium due under this Section 5(b) is intended by the parties to be, and shall be deemed, a
reasonable estimate of the Holder’s actual loss of its investment opportunity and not as a penalty.

 

 

 

 

    	 	19	 

     

    

 

[Reserved]

 

NONCIRCUMVENTION. Each
of the Company and the Parent Guarantor hereby covenants and agrees that such Person will not, by amendment of its Articles of Incorporation
or Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale
of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Note, and
will at all times in good faith carry out all of the provisions of this Note and take all action as may be required to protect the rights
of the Holder.

 

REDEMPTIONS.

 

(f)   
Mechanics. The Company shall deliver the applicable Event of Default Redemption Price to the Holder within three (3) Business
Days after the Company’s receipt of the Holder’s Event of Default Redemption Notice; provided that upon a Bankruptcy
Event of Default, the Company shall deliver the applicable Event of Default Redemption Price in accordance with Section 4(c) (as applicable,
the “Event of Default Redemption Date”). If the Holder or the Company has submitted a Change of Control Redemption
Notice in accordance with Section 5(b), the Company shall deliver the applicable Change of Control Redemption Price to the Holder (i) concurrently
with the consummation of such Change of Control if such notice is received prior to the consummation of such Change of Control and (ii)
within three (3) Business Days after the delivery to the Company or the Holder, as applicable, of such notice otherwise (such date, the
“Change of Control Redemption Date”). The Company shall pay the applicable Redemption Price to the Holder in cash by
wire transfer of immediately available funds pursuant to wire instructions provided by the Holder in writing to the Company on the applicable
due date. In the event of a redemption of less than all of the Redemption Amount of this Note, the Company shall promptly cause to be
issued and delivered to the Holder a new Note (in accordance with Section 13(d)) representing the outstanding Principal which has not
been redeemed and any accrued Interest on such Principal which shall be calculated as if no Redemption Notice has been delivered. In the
event that the Company does not pay the applicable Redemption Price to the Holder within the time period required, at any time thereafter
and until the Company pays such unpaid Redemption Price in full, the Holder shall have the option, in lieu of redemption, to require the
Company to promptly return to the Holder all or any portion of this Note representing the Redemption Amount that was submitted for redemption
and for which the applicable Redemption Price (together with any Late Charges thereon) has not been paid. Upon the Company’s receipt
of such notice, (x) the applicable Redemption Notice shall be null and void with respect to such Redemption Amount and (y) the Company
shall immediately return this Note, or issue a new Note (in accordance with Section 13(d)) to the Holder representing such Redemption
Amount to be redeemed. The Holder’s delivery of a notice voiding a Redemption Notice and exercise of its rights following such notice
shall not affect the Company’s obligations to make any payments of any amount, including Late Charges, which have accrued prior
to the date of such notice with respect to the Redemption Amount subject to such notice.

 

(g)    Redemption by Other Holders. Upon the Company’s or the Parent Guarantor’s receipt of notice from or on behalf
of any of the holders of the Other Notes or the Additional Securities, if any, for redemption or repayment as a result of an event or
occurrence substantially similar to the events or occurrences described in Section 4(b) or Section 5(b) or pursuant to analogous provisions
set forth in the Other Notes, the Additional Notes or the Certificate of Designations (each, an “Other Redemption Notice”),
the Company or the Parent Guarantor (as applicable) shall promptly, but no later than one (1) Business Day of its receipt thereof, forward
to the Holder a copy of such notice. If the Company or the Parent Guarantor receives a Redemption Notice and one or more Other Redemption
Notices, during the seven (7) Business Day period beginning on and including the date which is three (3) Business Days prior to such Person’s
receipt of the Holder’s Redemption Notice and ending on and including the date which is three (3) Business Days after such Person’s
receipt of the Holder’s Redemption Notice and the Company is unable to redeem the entire Redemption Prices and such other amounts
designated in such Redemption Notice and such Other Redemption Notices received during such seven (7) Business Day period, then the Company
shall redeem a pro rata amount from the Holder and each holder of the Other Notes and the Additional Securities, if any, based on the
Principal amount of this Note, the principal amount of the Other Notes and the Additional Notes and/or the Stated Value of the Series
A Preferred Shares submitted for redemption pursuant to such Redemption Notice and such Other Redemption Notices received by the Company
or the Parent Guarantor during such seven (7) Business Day period.

 

SECURITY. This Note and
the Other Notes are secured to the extent and in the manner set forth in the Security Documents.

 

 

 

 

    	 	20	 

     

    

 

COVENANTS.

 

(h)    Limitation on Incurrence of Indebtedness and Issuance of Disqualified Stock and Preferred Stock.

 

(i)    The Parent Guarantor shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, Incur any Indebtedness
(including Acquired Indebtedness) or issue any shares of Disqualified Stock and the Parent Guarantor shall not permit any of its Subsidiaries
to issue any shares of Preferred Stock; provided, however, such limitations shall not apply to (collectively, “Permitted
Debt”):

 

(A) the Incurrence by the Parent
Guarantor or any of its Subsidiaries of Indebtedness under any Credit Facilities in an aggregate principal amount outstanding at any time
not to exceed the lesser of (i) $100.0 million and (ii) the Available Amount Basket;

 

(B) 
the Incurrence by the (i) Company of Indebtedness represented by the Notes, Other Notes and the Additional Company Notes, (ii)
Parent Guarantor of Indebtedness represented by the Additional Parent Guarantor Notes and (iii) Guarantors of Indebtedness represented
by the Guarantees issued with respect to the Notes, Other Notes and the Additional Notes;

 

(C) 
Indebtedness, Disqualified Stock and Preferred Stock existing on the Subscription Date and Series A Preferred Shares issued pursuant
to the Securities Purchase Agreement (other than Indebtedness described in clause (1) of this Section 10(a)(i));

 

(D) Indebtedness with respect
to all obligations and liabilities, contingent or otherwise, in respect of letters of credit, acceptances and similar facilities incurred
in the ordinary course of business, including, without limitation, letters of credit and bank guarantees issued in the ordinary course
of business, including, without limitation, letters of credit in respect of workers’ compensation claims, health, disability or
other employee benefits (whether current or former) or property, casualty or liability insurance, or other Indebtedness with respect to
reimbursement-type obligations regarding workers’ compensation claims; provided, however, that upon the drawing of
such letters of credit, such obligations are reimbursed within thirty (30) days following such drawing;

 

(E) 
Indebtedness arising from agreements of the Company or a Guarantor providing for indemnification, adjustment of purchase price,
deferred purchase price, earn-out or similar obligations, in each case, Incurred in connection with any acquisition or disposition of
any business, assets or a Subsidiary of the Parent Guarantor or assumed, other than guarantees of Indebtedness Incurred by any Person
acquiring all or any portion of such business, assets or Subsidiary for the purpose of financing such acquisition; provided that
any such payment shall be deemed to be an Investment;

 

(F) 
Indebtedness of the Parent Guarantor to the Company or a Guarantor; provided that any subsequent issuance or transfer of
any Capital Stock or any other event which results in any such Guarantor ceasing to be a Guarantor or any other subsequent transfer of
any such Indebtedness (except to a Guarantor or the Company) shall be deemed, in each case to be an Incurrence of such Indebtedness;

 

(G) shares of Preferred Stock
of the Company or a Guarantor issued to the Company or a Guarantor; provided that any subsequent issuance or transfer of any Capital
Stock or any other event that results in the Company or any Guarantor that holds such shares of Preferred Stock of another Guarantor ceasing
to be a Guarantor or any other subsequent transfer of any such shares of Preferred Stock (except to the Company or another Guarantor)
shall be deemed, in each case, to be an issuance of shares of Preferred Stock;

 

(H) Indebtedness of the Company
or a Guarantor to the Company or another Guarantor; provided that any subsequent issuance or transfer of any Capital Stock or any
other event which results in any Guarantor lending such Indebtedness ceasing to be a Guarantor or any other subsequent transfer of any
such Indebtedness (except to the Company or another Guarantor) shall be deemed, in each case, to be an Incurrence of such Indebtedness;

 

 

 

    	 	21	 

     

    

 

(I)
obligations in respect of self-insurance and obligations (including reimbursement obligations with respect to letters of credit
and bank guarantees) in respect of performance, bid, appeal and surety bonds and similar instruments and performance and completion guarantees
and similar obligations provided by the Parent Guarantor or any Subsidiary, in each case, incurred in the ordinary course of business;

 

(J) any guarantee or co-issuance
by the Company or a Guarantor of Indebtedness or other obligations of the Company or any Guarantor so long as the Incurrence of such
Indebtedness or other obligations by the Company or such Guarantor is not prohibited under the terms of this Note; provided that if such
Indebtedness is by its express terms subordinated in right of payment to the Notes and the Additional Notes or the Guarantee of such
Guarantor, as applicable, any such guarantee or co-issuance of such Guarantor with respect to such Indebtedness shall be subordinated
in right of payment to such Guarantor’s Guarantee with respect to the Notes and Additional Notes substantially to the same extent
as such Indebtedness is subordinated to the Notes and Additional Notes or the Guarantee of such Guarantor, as applicable;

 

(K) the Incurrence by the Company
or any Guarantor of Indebtedness or Disqualified Stock or Preferred Stock of a Guarantor which serves to refund, refinance, replace, renew,
extend or defease any Indebtedness, Disqualified Stock or Preferred Stock Incurred as permitted under clauses (2), (3) and (11) of this
Section 10(a)(i) or any Indebtedness, Disqualified Stock or Preferred Stock Incurred to so refund or refinance such Indebtedness, Disqualified
Stock or Preferred Stock, including any Indebtedness, Disqualified Stock or Preferred Stock Incurred to pay premiums (including lender
premiums), defeasance costs, accrued interest, fees and expenses in connection therewith (subject to the following proviso, “Refinancing
Indebtedness”) prior to its respective maturity; provided, however, that such Refinancing Indebtedness:

 

a.    has a Weighted Average Life to Maturity at the time such Refinancing Indebtedness is Incurred which is not less than the remaining
Weighted Average Life to Maturity of the Indebtedness, Disqualified Stock or Preferred Stock being refunded or refinanced, replaced, renewed,
extended or defeased;

 

b.    has a Stated Maturity which is no earlier than ninety one (91) days after the Maturity Date;

 

c.    to the extent such Refinancing Indebtedness refinances (x) Indebtedness junior to the Notes and the Additional Notes or the Guarantee
of such Guarantor, as applicable, such Refinancing Indebtedness is junior to the Notes and the Additional Notes or the Guarantee of such
Guarantor, as applicable, or (y) Disqualified Stock or Preferred Stock, such Refinancing Indebtedness is Disqualified Stock or Preferred
Stock; and

 

d.   
is Incurred in an aggregate principal amount (or if issued with original issue discount, an aggregate issue price) that is equal
to or less than the aggregate principal amount (or if issued with original issue discount, the aggregate accreted value) then outstanding
of the Indebtedness being refinanced plus premium and fees Incurred in connection with such refinancing;

 

(L) 
Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against
insufficient funds in the ordinary course of business; provided, that such Indebtedness is extinguished within ten (10) Business
Days of its Incurrence;

(M) Indebtedness
of the Company or any Guarantor consisting of (x) the financing of insurance premiums or (y) take-or-pay obligations contained in
supply arrangements, in each case, in the ordinary course of business;

 

(N) Indebtedness of the Company
or any Guarantor Incurred in the ordinary course of business under guarantees of Indebtedness of suppliers, licensees, franchisees or
customers;

 

(O) to the extent constituting
Indebtedness, obligations in respect of (A) customer deposits and advance payments received in the ordinary course of business, (B) letters
of credit, bankers’ acceptances, guarantees or other similar instruments or obligations issued or relating to liabilities or obligations
Incurred in the ordinary course of business and (C) any customary cash management, cash pooling or netting or setting off arrangements
or automatic clearinghouse arrangements in the ordinary course of business;

 

 

 

 

    	 	22	 

     

    

 

(P) 
Indebtedness to current or former officers, managers, consultants, directors and employees, their respective estates, spouses or
former spouses to finance the purchase or redemption of Equity Interests of the Parent Guarantor permitted by this Note;

 

(Q) Indebtedness in connection
with a Qualified Receivables Financing;

 

(R) 
the incurrence of contingent liabilities arising out of endorsements of checks, drafts and other similar instruments for deposit
or collection in the ordinary course of business;

 

(S) 
Indebtedness of the Parent Guarantor and its Subsidiaries, to the extent the net proceeds thereof are promptly used to purchase
all of this Note, the Other Notes and the Additional Notes in connection with a Change of Control;

 

(T) 
Indebtedness incurred by the Company or any Guarantor; provided, that (i) the net proceeds of such Indebtedness will be
used to prepay other outstanding Indebtedness of the Company or any Guarantor and (ii) such Indebtedness is thereafter promptly assumed,
retired or otherwise repaid by a Person (other than the Parent Guarantor or any Subsidiary) and upon such assumption, retirement or other
repayment, such Indebtedness is non-recourse to the Parent Guarantor or any Subsidiary;

 

(U) Indebtedness in respect
of an acquisition permitted hereunder, which Indebtedness is not incurred in connection with such acquisition by the Parent Guarantor
or any Subsidiary in contemplation of such acquisition and such Indebtedness is existing at the time such Person becomes a Subsidiary
of the Parent Guarantor or a Guarantor (other than Indebtedness incurred solely in contemplation of such Person becoming a Subsidiary
of the Parent Guarantor or a Guarantor), in an aggregate principal amount outstanding at any time not to exceed $20.0 million; and

 

(V) Indebtedness in respect
of margin loans not to exceed $10,000,000 in the aggregate

 

(ii)    For
purposes of determining compliance with this Section 10(a), in the event that an item of Indebtedness, Disqualified Stock or
Preferred Stock meets the criteria of more than one of the categories of Permitted Debt, the Company and Parent Guarantor shall, in
their sole discretion, divide, classify or reclassify, or later divide, classify or reclassify, such item of Indebtedness,
Disqualified Stock or Preferred Stock in any manner that complies with this Section 10(a) and such item of Indebtedness,
Disqualified Stock or Preferred Stock shall be treated as having been Incurred pursuant to only one of the clauses in Section
10(a)(i), but may be Incurred partially under one clause and partially under one or more other clauses. Accrual of interest, the
accretion of accreted value, the amortization or accretion of original issue discount, the payment of interest in the form of
additional Indebtedness with the same terms, the payment of dividends on Preferred Stock in the form of additional shares of
Preferred Stock of the same class, the accretion of liquidation preference and increases in the amount of Indebtedness outstanding
solely as a result of fluctuations in the exchange rate of currencies shall not be deemed to be an Incurrence of Indebtedness for
purposes of this Section 10(a) or Section 10(d). Any Indebtedness under a revolving credit or similar facility shall only be deemed
to be Incurred at the time funds are borrowed. Guarantees of, or obligations in respect of letters of credit, bankers’
acceptances or similar instruments relating to, or Liens securing, Indebtedness which are otherwise included in the determination of
a particular amount of Indebtedness shall not be included in the determination of such amount of Indebtedness; provided, that
the Incurrence of the Indebtedness represented by such guarantee or letter of credit, as the case may be, was in compliance with
this Section 10(a). Indebtedness that is cash collateralized shall not be deemed to be Indebtedness hereunder to the extent of such
cash collateralization. The principal amount of any Disqualified Stock or Preferred Stock will be equal to the greater of the
maximum mandatory redemption or repurchase price (not including, in either case, any redemption or repurchase premium) or the
liquidation preference thereof.

 

(i)   
Limitation on Restricted Payments.

 

(i)    The Parent Guarantor shall not, and shall not permit any of its Subsidiaries to, directly or indirectly:

 

 

 

 

    	 	23	 

     

    

 

(A) declare or pay any dividend
or make any distribution on account of the Parent Guarantor’s or any of its Subsidiaries’ Equity Interests, including any
payment made in connection with any merger or consolidation involving the Parent Guarantor (other than (A) dividends, payments or distributions
by the Parent Guarantor payable solely in Equity Interests (other than Disqualified Stock) of the Parent Guarantor or in options, warrants
or other rights to purchase such Equity Interests, or (B) dividends, payments or distributions by a Subsidiary so long as, in the case
of any dividend, payment or distribution payable on or in respect of any class or series of securities issued by a Subsidiary other than
a Subsidiary of the Parent Guarantor that is a Wholly Owned Subsidiary of the Parent Guarantor, the Parent Guarantor or a Subsidiary receives
at least its pro rata share of such dividend or distribution in accordance with its Equity Interests in such class or series of securities);

 

(B) 
purchase or otherwise acquire or retire for value any Equity Interests of the Parent Guarantor held by any Person other than the
Parent Guarantor or a Subsidiary;

 

(C) 
make any principal payment on, or redeem, repurchase, defease or otherwise acquire or retire for value, in each case prior to any
scheduled repayment or scheduled maturity, any Subordinated Indebtedness (other than the payment, redemption, repurchase, defeasance,
acquisition or retirement of (A) Subordinated Indebtedness in anticipation of satisfying a sinking fund obligation, principal installment
or final maturity, in each case due within one year of the date of such payment, redemption, repurchase, defeasance, acquisition or retirement
and (B) Indebtedness permitted under clauses (6) and (8) of Section 10(a)(ii)); or

 

(D) make any Restricted Investment

 

(all such payments and other actions set forth
in clauses (1) through (4) above being collectively referred to as “Restricted Payments”).

 

(ii)    The
provisions of Section 10(b)(i) shall not prohibit:

 

(A) the payment of any dividend
or distribution or the consummation of any irrevocable redemption within sixty (60) days after the date of declaration thereof or the
giving of such irrevocable notice, as applicable, if at the date of declaration such payment or the giving of such notice would have complied
with the provisions of this Note (assuming, in the case of a redemption payment, the giving of such notice would have been deemed a Restricted
Payment at such time and such deemed Restricted Payment would have been permitted at such time);

 

(B) 
 (A) the redemption, repurchase, retirement or other acquisition of any Equity Interests (“Retired Capital Stock”)
of the Parent Guarantor or Subordinated Indebtedness of the Company or any Guarantor in exchange for (including any such exchange pursuant
to the exercise of a conversion right or privilege in connection with which cash is paid in lieu of fractional shares), or out of the
proceeds of the substantially concurrent sale of, Equity Interests of the Parent Guarantor or contributions to the equity capital of the
Parent Guarantor (other than any Disqualified Stock or any Equity Interests sold to a Guarantor or to an employee stock ownership plan
or any trust established by the Company or any Guarantor to the extent funded by the Parent Guarantor and its Subsidiaries) (collectively,
including any such contributions, “Refunding Capital Stock”); and (B) the declaration and payment of accrued dividends
on the Retired Capital Stock out of the proceeds of the substantially concurrent sale (other than to a Subsidiary of the Parent Guarantor
or to an employee stock ownership plan or any trust established by the Parent Guarantor or any of its Subsidiaries) of Refunding Capital
Stock;

 

(C) 
the redemption, defeasance, repurchase or other acquisition or retirement of (x) Subordinated Indebtedness of the Company or any
Guarantor made by exchange for, or out of the proceeds of the substantially concurrent sale of, new Indebtedness of the Company or any
Guarantor or (y) Disqualified Stock of the Company or any Guarantor made in exchange for, or out of the proceeds of a substantially concurrent
sale of, Disqualified Stock of the Company or any Guarantor, in either case which constitutes Refinancing Indebtedness under Section 10(a)(i)(11);

 

 

 

 

    	 	24	 

     

    

 

(D) the repurchase, retirement
or other acquisition or retirement for value of Equity Interests of the Parent Guarantor held by any future, present or former employee,
director or consultant of the Parent Guarantor or any Subsidiary of the Parent Guarantor (or the relevant Person’s estate or beneficiary
of such Person’s estate) pursuant to any management equity plan or stock option plan or any other management or employee benefit
plan or other agreement or arrangement; provided, however, that the aggregate amounts paid under this clause (4) do not
exceed $2.5 million in any calendar year (with unused amounts in any calendar year being permitted to be carried over for succeeding calendar
years up to a maximum of $5.0 million in the aggregate in any calendar year);

 

(E) 
 (a) the declaration and payment of dividends or distributions to holders of any class or series of Disqualified Stock of the Parent
Guarantor or Disqualified Stock or Preferred Stock of the Company or any Guarantor and (b) the payment of any redemption price or liquidation
value of any such Disqualified Stock or Preferred Stock when due in accordance with its terms, in each case, Incurred in accordance with
Section 10(a);

 

(F) 
the declaration and payment of dividends or other distributions or payments to holders of Series A Preferred Shares, Series A Warrants
or Series B Warrants pursuant to their terms;

 

(G) other Restricted Payments
in an aggregate amount since the Original Issuance Date not to exceed the greater of (x) $10.0 million and (y) 2.5% of Total Assets at
the time of such Restricted Payment;

 

(H) repurchases of Equity Interests
deemed to occur upon exercise of stock options or warrants or other rights if such Equity Interests represent a portion of the exercise
price of such options or warrants and payments in cash in lieu of the issuance of fractional shares;

 

(I) purchases of receivables
pursuant to a Receivables Repurchase Obligation in connection with a Qualified Receivables Financing and the payment or distribution
of Receivables Fees;

 

(J)  the
payment, purchase, redemption, defeasance or other acquisition or retirement for value of Subordinated Indebtedness, Disqualified
Stock or Preferred Stock of the Company or a Guarantor pursuant to provisions similar to those described under Section 5(b); provided
that, prior to or concurrently with such payment, purchase, redemption, defeasance or other acquisition or retirement for value, the
Company (or a third party to the extent permitted by this Note) have satisfied all obligations pursuant to Section 5(b); and

 

(K) distributions or payments
of Receivables Fees, sales contributions and other transfers of and purchases of assets pursuant to repurchase obligations, in each case
in connection with a Qualified Receivables Financing;

 

(L) 
the making of any Restricted Payment in exchange for, or out of or with the net cash proceeds from the substantially concurrent
contribution to the common equity of the Parent Guarantor or from the substantially concurrent sale (other than to a Subsidiary of the
Parent Guarantor) of, Equity Interests (other than Disqualified Stock) of the Parent Guarantor; and

 

(M)
 the payment of cash in lieu of the issuance of fractional
shares of Equity Interests in connection with any dividend or split of, or upon exercise or conversion of warrants, options or other
securities exercisable or convertible into, Equity Interests of the Parent Guarantor or in connection with the issuance of any
dividend otherwise permitted to be made.

 

(iii)    For
purposes of this Section 10(b), if any Investment or Restricted Payment would be permitted pursuant to one or more provisions
described above and/or one or more of the exceptions contained in the definition of “Permitted Investments,” the Company
and the Parent Guarantor may classify such Investment or Restricted Payment in any manner that complies with this covenant and may
later reclassify any such Investment or Restricted Payment so long as such Investment or Restricted Payment (as so reclassified)
would be permitted to be made in reliance on the applicable exception as of the date of such reclassification.

 

 

 

 

    	 	25	 

     

    

 

(j)   
Guarantees. The Parent Guarantor may cause any Subsidiary to execute and deliver to the Holder and the holders of the Other
Notes, a Guarantee Agreement in the form of Exhibit E attached to the Securities Purchase Agreement pursuant to which such Subsidiary
shall guarantee payment of the Notes.

 

(k)   
Limitation on Liens.

 

(i)    Neither the Parent Guarantor
nor any of its Subsidiaries may issue, assume or guarantee any Indebtedness secured by a Lien (other than a Permitted Lien) upon any
asset or property of the Parent Guarantor or such Subsidiary or on any evidences of Indebtedness or shares of Capital Stock of, or other
ownership interests in, any Subsidiary (regardless of whether the asset, property, Indebtedness, Capital Stock or ownership interests
were acquired before or after the date hereof).

 

(ii)   
For purposes of this Section 10(d), if any Lien would be permitted pursuant to one or more of the exceptions contained in the definition
of “Permitted Lien,” the Company and the Parent Guarantor may classify such Lien in any manner that complies with this covenant
and may later reclassify any such Lien so long as such Lien (as so reclassified) would be permitted to be made in reliance on the applicable
exception as of the date of such reclassification.

 

(l)   
Notices. The Company shall promptly, but in any event within one (1) Business Day, notify the Holder in writing whenever
an Event of Default (an “Event of Default Notice”) occurs, and, to the extent required pursuant to Section 24, the
Parent Guarantor shall simultaneously with the delivery of such notice to the Holder, file a Current Report on Form 8-K with the SEC to
state such fact.

 

(m)    Minimum Cash Covenants.
The Parent Guarantor (not including its Subsidiaries) shall maintain on deposit unrestricted and unencumbered cash and/or Marketable Securities
in an aggregate amount equal to not less than $25,000,000. In addition, Subsidiaries of the Parent Guarantor, other than (x) Acacia Research
Group, LLC (“ARG”) and (y) the Subsidiary of the Parent Guarantor, other than ARG, that holds the greatest amount of
unrestricted and unencumbered cash and or Marketable Securities, shall maintain on deposit unrestricted and unencumbered cash and/or Marketable
Securities in an aggregate amount equal to not less than $25,000,000.

 

(n)   
Non-Guarantor Subsidiaries.

 

(i)    The Parent Guarantor shall not permit any of its Subsidiaries that are not Guarantors (“Non-Guarantor Subsidiaries”)
to, directly or indirectly:

 

(A) Incur any Indebtedness (including
Acquired Indebtedness) or issue any shares of Disqualified Stock and the Parent Guarantor shall not permit any of the Non-Guarantor Subsidiaries
to issue any shares of Preferred Stock;

 

(B) 
assume or guarantee any Indebtedness secured by a Lien upon any asset or property of such Non-Guarantor Subsidiary or on any evidences
of Indebtedness or shares of Capital Stock of, or other ownership interests in, any Non-Guarantor Subsidiary (regardless of whether the
asset, property, Indebtedness, Capital Stock or ownership interests were acquired before or after the date hereof);

 

(C) 
hire any employees or enter into any leases, except (i) if done by ARG in the ordinary course of business or (ii) if required by
applicable law; and

 

 

 

 

    	 	26	 

     

    

 

(D) Except for ARG, engage in
any business activities or have any material properties or liabilities, other than (i) activities related to the maintenance of its corporate
existence, (ii) activities related to their ordinary course activities of purchasing Intellectual Property, (iii) activities related to
their ordinary course activities of retaining legal counsel to represent such non-guarantor subsidiary as a plaintiff in Intellectual
Property litigation, (iv) activities to comply with applicable law, (v) transactions among the Parent Guarantor and its Subsidiaries in
their ordinary course of business, (vi) with respect to AMO Holdco LLC, Viamet Holdco LLC and Malin J1 Limited, holding the assets and
being party to those agreements listed on Schedule F of the Third Supplemental Agreement, and such other assets that AMO Holdco LLC and
Viamet Holdco LLC may hold as a result of dividends, distributions or similar corporate transactions that AMO Holdco LLC, Viamet Holdco
LLC and Malin J1 Limited may be entitled to as a result of holding such assets or ordinary course activities related to holding such assets,
and (vii) activities, liabilities and properties incidental to the foregoing clauses (i) through (iv), with all such liabilities in total
not to exceed an aggregate of $5,000,000 among all non-guarantor subsidiaries as a whole and $1,000,000 for each non-guarantor subsidiary
individually, excluding legal and professional fees and royalty sharing arrangements accrued in the ordinary
course of the patent assertion business.

 

(ii)   ARG may maintain a balance of Cash and Marketable Securities of no more than $10,000,000 solely in order to conduct its ordinary
course business activities.

 

(o)   
Investment Company Status. Between six (6) Business Days and four (4) Business Days prior to the end of each fiscal quarter
beginning with the fiscal quarter ended June 30, 2021, the Parent Guarantor shall deliver a certificate signed by an executive officer
of the Parent Guarantor to the Holder certifying that the Company reasonably expects that, following the delivery of the Parent Guarantor’s
financial statements for such quarter, neither the Parent Guarantor nor any subsidiary of the Parent Guarantor will be an “investment
company,” a company controlled by an “investment company” or an “affiliated person” of, or “promoter”
or “principal underwriter” for, an “investment company”, in each case as such terms are defined in the Investment
Company Act of 1940, as amended.

 

VOTE TO ISSUE, OR CHANGE
THE TERMS OF, NOTES. The affirmative vote of the Required Holders at a meeting duly called for such purpose or the written consent
without a meeting of the Required Holders, voting together as a single class, shall be required for any change or amendment or waiver
of any provision to this Note, any of the Other Notes or any of the Additional Company Notes. Any change, amendment or waiver by the Company
and the Required Holders shall be binding on the Holder of this Note and all holders of the Other Notes and the Additional Company Notes.
No consideration shall be offered or paid to any of the holders of Notes or Additional Company Notes to amend or waive or modify any provision
of the Notes, unless the same consideration (other than the reimbursement of legal fees) is also offered to all of the holders of Notes
and Additional Notes. This provision constitutes a separate right granted to each of the holders of Notes and Additional Notes by the
Company and shall not in any way be construed as such holders acting in concert or as a group with respect to the purchase, disposition
or voting of securities or otherwise.

 

TRANSFER. The Holder
may offer, sell, assign or transfer all or any portion of this Note and the accompanying rights hereunder without the consent of the Company,
subject only to the provisions of Section 2(f) of the Securities Purchase Agreement.

 

REISSUANCE OF THIS NOTE.

 

(p)    Transfer. If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company
will within five (5) Business Days of such surrender, issue and deliver upon the order of the Holder a new Note (in accordance with Section
13(d) and subject to Section 3), registered as the Holder may request, representing the outstanding Principal being transferred by the
Holder and, if less than the entire outstanding Principal is being transferred, a new Note (in accordance with Section 13(d)) to the Holder
representing the outstanding Principal not being transferred. The Holder and any assignee, by acceptance of this Note, acknowledge and
agree that, by reason of the provisions of Section 3 following cancellation pursuant to Section 26 or redemption of any portion of this
Note, the outstanding Principal represented by this Note may be less than the Principal stated on the face of this Note.

 

(q)    Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by the
Holder to the Company in customary form (but without any obligation to post a surety or other bond) and, in the case of mutilation, upon
surrender and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note (in accordance with Section 13(d))
representing the outstanding Principal within five (5) Business Days of receipt of such evidence.

 

 

 

 

    	 	27	 

     

    

 

(r)    Note Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the
principal office of the Company, for a new Note or Notes within five (5) Business Days of such surrender (in accordance with Section 13(d))
representing in the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such outstanding
Principal as is designated by the Holder at the time of such surrender.

 

(s)    Issuance of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new
Note (i) shall be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining
outstanding (or in the case of a new Note being issued pursuant to Section 13(a) or Section 13(c), the Principal designated by the Holder
which, when added to the principal represented by the other new Notes issued in connection with such issuance, does not exceed the Principal
remaining outstanding under this Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated
on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions as this
Note, and (v) shall represent accrued and unpaid Interest and Late Charges, if any, on the Principal and Interest of this Note, from the
Issuance Date.

 

REMEDIES, CHARACTERIZATIONS,
OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Note shall be cumulative and in addition to all other
remedies available under this Note and any of the other Transaction Documents at law or in equity (including a decree of specific performance
and/or other injunctive relief). No remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise to
such remedy. Nothing herein shall limit the Holder’s right to pursue actual and consequential damages for any failure by the Company
or the Parent Guarantor to comply with the terms of this Note. The Company and the Parent Guarantor covenant to the Holder that there
shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein
with respect to payments, redemption and the like (and the computation thereof) shall be the amounts to be received by the Holder and
shall not, except as expressly provided herein, be subject to any other obligation of the Company or the Parent Guarantor (or the performance
thereof). Each of the Company and the Parent Guarantor acknowledges that a breach by it of its obligations hereunder will cause irreparable
harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company and the Parent Guarantor therefore agree
that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies,
to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required.

 

PAYMENT OF COLLECTION, ENFORCEMENT
AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced
through any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note or to enforce the provisions
of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company or the Parent Guarantor or other proceedings
affecting Company creditors’ rights or the Parent Guarantor creditors’ rights and involving a claim under this Note, then
the Company shall pay (and the Parent Guarantor shall cause the Company to pay) the costs incurred by the Holder for such collection,
enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, but not limited
to, attorneys’ fees and disbursements.

 

CONSTRUCTION; HEADINGS.
This Note shall be deemed to be jointly drafted by the Company and the Parent Guarantor and all the Buyers and shall not be construed
against any Person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of, or affect
the interpretation of, this Note.

 

FAILURE OR INDULGENCE NOT
WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as
a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof
or of any other right, power or privilege.

 

 

 

 

    	 	28	 

     

    

 

DISPUTE RESOLUTION. In
the case of a dispute as to the arithmetic calculation of any Redemption Price, the Company shall pay the applicable Redemption Price
that is not disputed, and the Company shall submit the disputed arithmetic calculations within two (2) Business Days of the delivery of
the Redemption Notice or other event giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are
unable to agree upon such determination or calculation within three (3) Business Days of such disputed arithmetic calculation being submitted
to the Holder, then the Company shall, within two (2) Business Days submit the disputed arithmetic calculation of any Redemption Price
to an independent, outside accountant, selected by the Holder and approved by the Company, such approval not to be unreasonably withheld,
conditioned or delayed. The Company, at its expense, shall cause the accountant to perform the calculations and notify the Company and
the Holder of the results no later than five (5) Business Days from the time it receives the disputed calculations. Such accountant’s
calculation shall be binding upon all parties absent demonstrable error.

 

NOTICES; PAYMENTS.

 

(t)    Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be
given in accordance with Section 9(f) of the Securities Purchase Agreement. The Company or the Parent Guarantor (as applicable) shall
provide the Holder with prompt written notice of all actions taken pursuant to this Note, including in reasonable detail a description
of such action and the reason therefor. Without limiting the generality of the foregoing, the Company or the Parent Guarantor (as applicable)
shall give written notice to the Holder at least ten (10) Business Days prior to the date on which the Company or the Parent Guarantor
(as applicable) closes its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock, (B) with respect
to any pro rata subscription offer to holders of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction
or Liquidation Event.

 

(u)    Payments. Whenever any payment of cash is to be made by the Company to any Person pursuant to this Note, such payment shall
be made in lawful money of the United States of America via wire transfer of immediately available funds to an account designated by the
Holder; provided, that the Holder, upon written notice to the Company, may elect to receive a payment of cash in lawful money of
the United States of America by a check drawn on the account of the Company and sent via overnight courier service to such Person at such
address as previously provided to the Company in writing (which address, in the case of each of the Buyers, shall initially be as set
forth on the Schedule of Buyers attached to the Securities Purchase Agreement). Whenever any amount expressed to be due by the terms of
this Note is due on any day which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business
Day. Any amount due under the Transaction Documents which is not paid when due shall result in a late charge being incurred and payable
by the Company in an amount equal to interest on such amount at the rate of six percent (6.0%) per annum from the date such amount was
due until the same is paid in full (“Late Charge”).

 

CANCELLATION. After all
Principal, any accrued Interest and any other amounts at any time owed on this Note have been paid in full, this Note shall automatically
be deemed canceled and shall not be reissued, sold or transferred.

 

WAIVER OF NOTICE. To
the extent permitted by law, the Company and the Parent Guarantor hereby waive demand, notice, protest and all other demands and notices
in connection with the delivery, acceptance, performance, default or enforcement of this Note.

 

GOVERNING LAW; JURISDICTION;
JURY TRIAL. This Note shall be governed by and construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of New York, without giving
effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of New York. Each of the Company and the Parent Guarantor
hereby irrevocably (i) submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough
of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper, and (ii) irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof to the Company and the Parent Guarantor at the address set forth
with respect to the Parent Guarantor in Section 9(f) of the Securities Purchase Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit
or taking other legal action against the Company or the Parent Guarantor in any other jurisdiction to collect on the Company’s or
the Parent Guarantor’s obligations to the Holder, to realize on any collateral or any other security for such obligations, or to
enforce a judgment or other court ruling in favor of the Holder. EACH OF THE COMPANY AND PARENT GUARANTOR HEREBY IRREVOCABLY WAIVES
ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH
OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

 

 

    	 	29	 

     

    

 

Severability.
If any provision of this Note is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction,
the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that
it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining
provisions of this Note so long as this Note as so modified continues to express, without material change, the original intentions of
the Company, the Parent Guarantor and the Holder as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the Company, the
Parent Guarantor or the Holder or the practical realization of the benefits that would otherwise be conferred upon the Company, the Parent
Guarantor or the Holder. The Company, the Parent Guarantor and the Holder will endeavor in good faith negotiations to replace the prohibited,
invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited,
invalid or unenforceable provision(s).

 

DISCLOSURE. Except if
an individual affiliated with the Holder serves on the Board, including pursuant to the Governance Agreement, upon receipt or delivery
by the Parent Guarantor of any notice in accordance with the terms of this Note, unless the Parent Guarantor has in good faith determined
that the matters relating to such notice do not constitute material, nonpublic information relating to the Parent Guarantor or any of
its Subsidiaries, the Parent Guarantor shall contemporaneously with any such receipt or delivery publicly disclose such material, nonpublic
information on a Current Report on Form 8-K or otherwise. In the event that the Parent Guarantor believes that a notice contains material,
nonpublic information relating to the Parent Guarantor or any of its Subsidiaries, the Parent Guarantor so shall indicate to the Holder
contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed to presume that
all matters relating to such notice do not constitute material, nonpublic information relating to the Parent Guarantor or any of its Subsidiaries.

 

USURY. This Note is subject
to the express condition that at no time shall the Company be obligated or required to pay interest hereunder at a rate or in an amount
which could subject the Holder to either civil or criminal liability as a result of being in excess of the maximum interest rate or amount
which the Company is permitted by applicable law to contract or agree to pay. If by the terms of this Note, the Company is at any time
required or obligated to pay interest hereunder at a rate or in an amount in excess of such maximum rate or amount, the rate or amount
of interest under this Note shall be deemed to be immediately reduced to such maximum rate or amount and the interest payable shall be
computed at such maximum rate or be in such maximum amount and all prior interest payments in excess of such maximum rate or amount shall
be applied and shall be deemed to have been payments in reduction of the principal balance of this Note.

 

NO CANCELLATION IN CONNECTION
WITH SERIES B WARRANT EXERCISE. For the avoidance of doubt, no portion of the Principal amount outstanding under this Note is permitted
to be surrendered to the Company for cancellation in payment of the Other Exercise Price.

 

CERTAIN DEFINITIONS.
For purposes of this Note, the following terms shall have the following meanings:

 

(v)    “Acquired
Indebtedness” means, with respect to any specified Person:

 

(i)    Indebtedness of any other Person existing at the time such other Person (a) is merged with or into (or consolidated or otherwise
combined with the Parent Guarantor or any Subsidiary) or (b) became a Subsidiary of such specified Person, and

 

(ii)    Indebtedness secured by a Lien encumbering any asset acquired by such specified Person, in each case, including Indebtedness Incurred
as consideration in, in contemplation of, or to provide all or any portion of the funds or credit support utilized to consummate, the
transaction or series of related transactions pursuant to which such Subsidiary became a Subsidiary or was otherwise acquired by such
Person, or such asset was acquired by such Person, as applicable.

 

 

 

    	 	30	 

     

    

 

(w)    “Additional Closing Date” shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(x)    “Additional Company Notes” means: (i) all Senior Secured Notes, if any, issued by the Company pursuant to the
Securities Purchase Agreement on an Additional Closing Date that is not the Issuance Date, (ii) all Senior Secured Notes, if any, issued
by the Company in an Exchange (as defined in the Certificate of Designations).

 

(y)    “Additional Notes” means the Additional Company Notes and the Additional Parent Guarantor Notes.

 

(z)    “Additional Parent Guarantor Notes” means: (i) all Senior Secured Notes, if any, issued by the Parent Guarantor
pursuant to the Securities Purchase Agreement on an Additional Closing Date that is not the Issuance Date, (ii) all Senior Secured Notes,
if any, issued by the Parent Guarantor in an Exchange (as defined in the Certificate of Designations) and (iii) all Stockholders Notes.

 

(aa)    “Additional Securities” means (i) the Additional Notes and (ii) all Series A Preferred Shares issued by the
Parent Guarantor pursuant to the Securities Purchase Agreement on the Initial Closing Date.

 

(bb)    “Affiliate” shall have the meaning ascribed to such term in Rule 405 of the Securities Act.

 

(cc)    “Approved Investment” shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(dd)    “Available Amount Basket” means an amount equal to (i) $100,000,000 minus (ii) the amount of (A) Permitted
Debt then outstanding incurred pursuant to Section 10(a)(i)(1) or Section 10(a)(i)(22), (B) the cumulative amount of all liabilities of
any Non-Guarantor Subsidiaries, including any liabilities of such Non-Guarantor Subsidiaries appearing on the balance sheet of the Parent
Guarantor as of the latest date for which financial statements are available and any liabilities of any Non-Guarantor Subsidiaries to
the Parent Guarantor or any other Subsidiary of the Parent Guarantor and (C) the aggregate amount of cash, Cash Equivalents and Marketable
Securities held by Non-Guarantor Subsidiaries.

 

(ee)    “Board” means the Board of Directors of the Parent Guarantor.

 

(ff)    “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City
of New York are authorized or required by law to remain closed.

 

(gg)    “Buyer” shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(hh)    “Capital Stock” means:

 

(i)    in the case of a corporation, corporate stock;

 

(ii)    in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock;

 

(iii)    in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and

 

 

 

 

    	 	31	 

     

    

 

(iv)    any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions
of assets of, the issuing Person.

 

(ii)    “Cash Equivalents” means:

 

(i)    U.S.
Dollars, pounds sterling, euros, the national currency of any participating member state of the European Union or, in the case of
any foreign Subsidiary, such local currencies held by it from time to time in the ordinary course of business;

 

(ii)    securities issued or directly and fully guaranteed or insured by the government of the United States or any country that is a member
of the European Union or any agency or instrumentality thereof in each case with maturities not exceeding two (2) years from the date
of acquisition;

 

(iii)    certificates of deposit, time deposits and eurodollar time deposits with maturities of one year or less from the date of acquisition,
bankers’ acceptances, in each case with maturities not exceeding one year, and overnight bank deposits, in each case with any commercial
bank having capital and surplus in excess of $500 million, or the foreign currency equivalent thereof, and whose long-term debt is rated
“A” or the equivalent thereof by Moody’s or S&P (or reasonably equivalent ratings of another internationally recognized
ratings agency);

 

(iv)    repurchase obligations for underlying securities of the types described in clauses (ii) and (iii) above entered into with any financial
institution meeting the qualifications specified in clause (iii) above;

 

(v)    commercial paper issued by a corporation (other than an Affiliate of the Parent Guarantor) rated at least “A-1” or
the equivalent thereof by Moody’s or S&P (or reasonably equivalent ratings of another internationally recognized ratings agency)
and in each case maturing within one year after the date of acquisition;

 

(vi)    readily marketable direct obligations issued by any state of the United States of America or any political subdivision thereof
having one of the two highest rating categories obtainable from either Moody’s or S&P (or reasonably equivalent ratings of another
internationally recognized ratings agency) in each case with maturities not exceeding two (2) years from the date of acquisition;

 

(vii)    Indebtedness issued by Persons with a rating of “A” or higher from S&P or “A-2” or higher from Moody’s
in each case with maturities not exceeding two (2) years from the date of acquisition; and

 

(viii)    investment funds investing at least 95% of their assets in securities of the types described in clauses (i) through (vii) above.

 

(jj)    “Certificate of Designations” has the meaning ascribed to such term in the Securities Purchase Agreement.

 

(kk)    “Change of Control” means any Fundamental Transaction, other than (i) an Approved Investment, (ii) any reorganization,
recapitalization or reclassification of Common Stock in which holders of the Parent Guarantor’s voting power immediately prior to
such reorganization, recapitalization or reclassification continue after such reorganization, recapitalization or reclassification to
hold publicly traded securities and, directly or indirectly, are, in all material respects, the holders of the voting power of the surviving
entity (or entities with the authority or voting power to elect the members of the board of directors (or their equivalent if other than
a corporation) of such entity or entities) after such reorganization, recapitalization or reclassification or (iii) pursuant to a migratory
merger effected solely for the purpose of changing the jurisdiction of incorporation of the Parent Guarantor; provided, however,
that a Change of Control will be deemed not to have occurred if ninety percent (90%) or more of the consideration in the transaction or
transactions which otherwise would constitute a Change of Control consists of shares of common stock, depositary receipts or other certificates
representing common equity interests traded or to be traded immediately following such transaction on an Eligible Market.

 

 

 

 

    	 	32	 

     

    

 

(ll)    “Collateral”
shall have the meaning ascribed to such term in the Security Documents.

 

(mm)   
“Collateral Agent” shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(nn)    “Common
Stock” means (i) the Parent Guarantor’s shares of common stock, par value $0.001 per share and (ii) any
capital stock into which such Common Stock shall be changed or any capital stock resulting from a reorganization, recapitalization
or reclassification of such Common Stock.

 

(oo)   
“Consolidated” means, when used to modify a financial term, test, statement, or report of a Person, the application
or preparation of such term, test, statement or report (as applicable) based upon the consolidation, in accordance with GAAP, of the financial
condition or operating results of such Person and its Subsidiaries.

 

(pp)   
“Credit Facilities” means one or more debt facilities or other financing arrangements (including, without limitation,
commercial paper facilities or indentures) providing for revolving credit loans, term loans, letters of credit or other long-term indebtedness,
including any notes, mortgages, guarantees, collateral documents, instruments and agreements executed in connection therewith, and any
amendments, supplements, modifications, extensions, renewals, restatements or refundings thereof and any indentures or credit facilities
or commercial paper facilities that replace, refund or refinance any part of the loans, notes, other credit facilities or commitments
thereunder, including any such replacement, refunding or refinancing facility or indenture that increases the amount permitted to be borrowed
thereunder or alters the maturity thereof or adds Subsidiaries as additional borrowers or guarantors thereunder and whether by the same
or any other agent, lender or group of lenders.

 

(qq)    “Customary
Intercreditor Agreement” means (a) to the extent executed in connection with the incurrence or assumption of secured
Indebtedness, the Liens on the Collateral securing such Indebtedness which are intended to rank equal in priority to the Liens on
the Collateral securing the Securities and the Guarantees (but without regard to the control of remedies), a customary intercreditor
agreement in form and substance reasonably acceptable to the Required Holders and the Company, which agreement shall provide that
the Liens on the Collateral securing such Indebtedness shall rank equal in priority to the Liens on the Collateral securing the
Securities and the Guarantees (but without regard to the control of remedies) and (b) to the extent executed in connection with
the incurrence or assumption of secured Indebtedness, the Liens on the Collateral securing such Indebtedness which are intended to
rank junior (or senior, as applicable) in priority to the Liens on the Collateral securing the Securities and the Guarantees, a
customary intercreditor agreement in form and substance reasonably acceptable to the Required Holders and the Company, which
agreement shall provide that the Liens on the Collateral securing such Indebtedness shall rank junior (or senior, as applicable) in
priority to the Lien on the Collateral securing the Securities and the Guarantees.

 

(rr)    “Designee”
means Starboard Value LP or any of its Affiliates.

 

(ss)    “Disqualified
Stock” means, with respect to any Person, any Capital Stock of such Person which, by its terms (or by the terms of any
security into which it is convertible or for which it is redeemable or exchangeable), or upon the happening of any event:

 

(i)    matures
or is mandatorily redeemable for cash or in exchange for Indebtedness, pursuant to a sinking fund obligation or otherwise (other
than as a result of a change of control or asset sale; provided that the relevant asset sale or change of control provisions,
taken as a whole, are no more favorable in any material respect to holders of such Capital Stock than the asset sale and change of
control provisions applicable to the Notes and the Additional Notes and any purchase requirement triggered thereby may not become
operative until (or contemporaneously with) compliance with the asset sale and change of control provisions applicable to the Notes
and the Additional Notes (including the purchase of any Notes and Additional Notes tendered pursuant thereto)),

 

(ii)    is
convertible or exchangeable for Indebtedness or Disqualified Stock at the option of the holder thereof, or

 

 

 

 

    	 	33	 

     

    

 

(iii)    is redeemable at the option of the holder thereof, in whole or in part, in each case prior to ninety one (91) days after the maturity
date of the Notes and the Additional Notes; provided, however, that only the portion of Capital Stock which so matures
or is mandatorily redeemable, is so convertible or exchangeable or is so redeemable at the option of the holder thereof prior to such
date shall be deemed to be Disqualified Stock; provided, further, however, that if such Capital Stock is issued
to any employee or to any plan for the benefit of employees of the Parent Guarantor, the Company or any of their respective Subsidiaries
or by any such plan to such employees, such Capital Stock shall not constitute Disqualified Stock solely because it may be required to
be repurchased by the Parent Guarantor or the Company in order to satisfy applicable statutory or regulatory obligations or as a result
of such employee’s termination, death or disability; provided, further, that any class of Capital Stock of such Person
that by its terms authorizes such Person to satisfy its obligations thereunder by delivery of Capital Stock that is not Disqualified
Stock shall not be deemed to be Disqualified Stock.

 

(tt)    “Eligible Market”
means the Principal Market, The New York Stock Exchange, The Nasdaq Capital Market, The Nasdaq Global Market, the NYSE American, the
London Stock Exchange, including the AIM, or the Euronext Stock Exchange.

 

(uu)    “Equity
Interests” means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt
security that is convertible into, or exchangeable for, Capital Stock other than the Stockholders Notes).

 

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

 

(ww)    “Exchange
Agreement” means that certain Exchange Agreement dated as of June 30, 2020 by and among the Company, the Parent Guarantor
and the Designee.

 

(xx)    “Exchanged
Notes” means those certain senior secured notes issued by the Parent Guarantor pursuant to the Securities Purchase
Agreement on the Original Issuance Date that were exchanged for the Notes by the holders thereof on the Issuance Date.

 

(yy)    “Fair
Market Value” means, with respect to any asset or property, the price which could be negotiated in an arm’s-length,
free market transaction, for cash, between a willing seller and a willing and able buyer, neither of whom is under undue pressure or
compulsion to complete the transaction, as determined by the Company in its good faith discretion. “Fair Market Value”
may be (but need not be) conclusively established by means of resolutions of the Board setting out such Fair Market Value as
determined by the Board in good faith.

 

(zz)    “Finance
Lease Obligation” means, at the time any determination thereof is to be made, the amount of the liability in respect of a
finance lease that would at such time be required to be capitalized and reflected as a liability on a balance sheet (excluding the
footnotes thereto) in accordance with GAAP as in effect as of the applicable time of determination.

 

 

 

 

    	 	34	 

     

    

 

(aaa)    “Fundamental
Transaction” means (A) that the Parent Guarantor or the Company shall, directly or indirectly, including through
Subsidiaries, Affiliates or otherwise, in one or more related transactions, (i) consolidate or merge with or into (whether or not
the Parent Guarantor or the Company is the surviving corporation) another Subject Entity, or (ii) sell, assign, transfer, convey or
otherwise dispose of all or substantially all of the properties or assets of the Parent Guarantor, the Company or any of their
respective “significant subsidiaries” (as defined in Rule 1-02 of Regulation S-X) to one or more Subject Entities, or
(iii) make, or allow one or more Subject Entities to make, or allow the Parent Guarantor or the Company to be subject to or
have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or exchange offer that is
accepted by the holders of more than either (x) 50% of the outstanding shares of Common Stock, (y) 50% of the outstanding shares of
Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party to, or Affiliated with any
Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number of shares of
Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such
purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the Exchange Act) of
more than 50% of the outstanding shares of Common Stock, or (iv) consummate a stock purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject
Entities whereby all such Subject Entities, individually or in the aggregate, acquire, either (x) more than 50% of the outstanding
shares of Common Stock, (y) more than 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held
by all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such stock purchase
agreement or other business combination were not outstanding; or (z) such number of shares of Common Stock such that the Subject
Entities become collectively the beneficial owners (as defined in Rule 13d-3 under the Exchange Act) of more than 50% of the
outstanding shares of Common Stock, or (v) reorganize, recapitalize or reclassify its Common Stock, (B) that the
Parent Guarantor or the Company shall, directly or indirectly, including through Subsidiaries, Affiliates or otherwise, in one or
more related transactions, allow any Subject Entity individually or the Subject Entities in the aggregate to be or
become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, whether
through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction in outstanding shares of Common
Stock, merger, consolidation, business combination, reorganization, recapitalization, spin-off, scheme of arrangement,
reorganization, recapitalization or reclassification or otherwise in any manner whatsoever, of either (x) more than 50% of the
aggregate ordinary voting power represented by issued and outstanding shares of Common Stock, (y) more than 50% of the aggregate
ordinary voting power represented by issued and outstanding shares of Common Stock not held by all such Subject Entities as of the
Subscription Date calculated as if any shares of Common Stock held by all such Subject Entities were not outstanding, or (z) a
percentage of the aggregate ordinary voting power represented by issued and outstanding shares of Common Stock or other equity
securities of the Parent Guarantor or the Company, as applicable, sufficient to allow such Subject Entities to effect a statutory
short form merger or other transaction requiring other stockholders of the Parent Guarantor or the Company, as applicable, to
surrender their shares of Common Stock without approval of the stockholders of the Parent Guarantor or the Company, as applicable,
or (C) that the Parent Guarantor or the Company shall, directly or indirectly, including through Subsidiaries, Affiliates or
otherwise, in one or more related transactions, the issuance of or the entering into any other instrument or transaction structured
in a manner to circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed and
implemented in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct
this definition or any portion of this definition which may be defective or inconsistent with the intended treatment of such
instrument or transaction.

 

(bbb)    “GAAP”
means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession, in the
United States, consistently applied during the periods involved. For the avoidance of doubt the terms “consolidated” and
“Consolidated” with respect to any Person shall mean such Person consolidated with its Subsidiaries.

 

(ccc)    “Governance
Agreement” shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(ddd)    “Group”
means a “group” as that term is used in Section 13(d) of the Exchange Act and as defined in Rule 13d-5 thereunder.

 

 

 

 

    	 	35	 

     

    

 

(eee)    “Guarantee”
shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(fff)    “Guarantor”
shall have the meaning ascribed to such term in the Securities Purchase Agreement. For the avoidance of doubt, as of the Issuance
Date the Parent Guarantor is the sole Guarantor.

 

(ggg)   
“Hedging Obligations” means, with respect to any Person, the obligations of such Person under (1) currency exchange,
interest rate or commodity swap agreements, currency exchange, interest rate or commodity cap agreements and currency exchange, interest
rate or commodity collar agreements and (2) other agreements or arrangements designed to protect such Person against fluctuations in currency
exchange, interest rates or commodity prices.

 

(hhh)    “Incur”
(including, with correlative meaning, the term “Incurrence”) means issue, assume, guarantee, incur or otherwise
become liable for; provided, however, that any Indebtedness or Equity Interests of a Person existing at the
time such Person becomes a Subsidiary (whether by merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred by
such Person at the time it becomes a Subsidiary.

 

(iii)    “Indebtedness”
means, with respect to any Person, without duplication: (1) the principal and premium (if any) of any indebtedness of such Person,
whether or not contingent, (a) in respect of borrowed money, (b) evidenced by bonds, notes, debentures or similar instruments or
letters of credit or bankers’ acceptances (or, without duplication, reimbursement agreements in respect thereof), with the
amount of letters of credit and bankers’ acceptances being the amount equal to the amount available to be drawn, (c)
representing the deferred and unpaid purchase price of any property (except trade payables and similar obligations) which purchase
price is due more than one year after the later of the date of placing the property in service or taking delivery and title thereto,
or (d) in respect of Finance Lease Obligations, if and to the extent that any of the foregoing indebtedness (other than letters of
credit) would appear as a liability on a balance sheet (excluding the footnotes thereto) of such Person prepared in accordance with
GAAP as in effect on the applicable date of determination; (2) to the extent not otherwise included, any obligation of such Person
to be liable for, or to pay, as obligor, guarantor or otherwise, on the Indebtedness of another Person (other than by endorsement of
negotiable instruments for collection in the ordinary course of business); and (3) to the extent not otherwise included, the
principal component of Indebtedness of another Person secured by a Lien on any asset owned by such Person (whether or not such
Indebtedness is assumed by such Person); provided, however, that the amount of such Indebtedness will be the lesser
of: (a) the Fair Market Value of such asset at such date of determination, and (b) the amount of such Indebtedness of such other
Person.

 

(jjj)    “Initial
Closing Date” shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(kkk)    “Intellectual
Property” has the meaning ascribed to such term in the Security Agreement.

 

(lll)    “Interest
Rate” means 6.00% per annum, subject to adjustment as set forth in Section 2.

 

(mmm)    “Investments”
means, with respect to any Person, all investments by such Person in other Persons (including Affiliates) in the form of loans
(including guarantees), advances or capital contributions (excluding accounts receivable, trade credit and advances to customers and
suppliers and commission, travel and similar advances to officers, employees and consultants made in the ordinary course of
business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities issued by any
other Person.

 

(nnn)    “Investment
Grade Securities” means:

 

(i)    securities
issued or directly and fully guaranteed or insured by the U.S. government or any agency or instrumentality thereof (other than Cash
Equivalents) and in each case with maturities not exceeding two (2) years from the date of acquisition,

 

 

 

    	 	36	 

     

    

 

(ii)    securities
that have a rating equal to or higher than Baa3 (or the equivalent) by Moody’s or BBB- (or the equivalent) by S&P, or, if
Moody’s or S&P ceases to rate the securities for reasons outside of the Company’s control, an equivalent rating by
any other “nationally recognized statistical rating organization,” as such term is defined under Section 3(a)(62) under
the Exchange Act selected by the Company as a replacement agency for Moody’s or S&P, as the case may be,

 

(iii)    investments
in any fund that invests at least 95% of its assets in investments of the type described in clauses (i) and (ii) which fund may also
hold immaterial amounts of cash pending investment and/or distribution, and

 

iv)    corresponding
instruments in countries other than the United States customarily utilized for high quality investments and in each case with
maturities not exceeding two (2) years from the date of acquisition.

 

ooo)    “Lien”
means any mortgage, pledge, hypothecation, assignment, deposit, arrangement, encumbrance, security interest, lien (statutory or
otherwise), or preference, priority or other security or similar agreement or preferential arrangement of any kind or nature
whatsoever (including, without limitation, any conditional sale or other title retention agreement having substantially the same
economic effect as any of the foregoing); provided that in no event shall an operating lease be deemed to constitute a
Lien.

 

(ppp)    “Liquidation
Event” means the voluntary or involuntary liquidation, dissolution or winding up of the Parent Guarantor or such
Subsidiaries the assets of which constitute all or substantially all of the assets of the business of the Parent Guarantor and its
Subsidiaries taken as a whole, in a single transaction or series of transactions, or adoption of any plan for the same.

 

(qqq)    “Make-Whole
Amount” means the excess of:

 

(A) the present value at such
Change of Control Redemption Date of (i) the applicable Redemption Amount of the Notes being redeemed, plus (ii) all required Interest
payments due on such Notes through the Maturity Date (excluding accrued but unpaid interest), computed using a discount rate equal to
the Treasury Rate as of such Change of Control Redemption Date plus 50 basis points; over

 

(B) 
the then outstanding Principal amount of this Note.

 

(rrr)    “Marketable
Securities” means, any readily marketable equity securities (i) that are traded on an Eligible Market or the Principal
Market, (ii) that are eligible for sale without restriction or limitation pursuant to Rule 144 and without the requirement to be in
compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the Securities Act, (iii) that are not subject to any
trading restriction by virtue of possession by the Parent Guarantor or any Subsidiary of any material, nonpublic information about
the issuer of such equity securities, (iv) with respect to which the Parent Guarantor or any Subsidiary is not filing a
Schedule 13D pursuant to Section 13 of the Exchange Act and the rules and regulations promulgated thereunder, (v) with respect to
which the Parent Guarantor or any Subsidiary is not subject to Section 16 of the Exchange Act and (vi) that are issued by an issuer
having a total equity market capitalization of not less than $75,000,000.

 

(sss)    “Moody’s”
means Moody’s Investors Services, Inc. or any successor to the rating agency business thereof.

 

(ttt)    “Obligations”
means any principal, interest, premium, if any, penalties, fees, indemnifications, reimbursements, expenses, damages or other
liabilities or amounts payable under the documentation governing or otherwise in respect of any Indebtedness.

 

(uuu)   
“Obligors” means the Company, the Guarantors and the Pledged Subsidiaries.

 

 

 

 

    	 	37	 

     

    

 

(vvv)   
“Officer” means, with respect to any Person, the Chairman of the Board, Chief Executive Officer, Chief Financial
Officer, President, any Executive Vice President, Senior Vice President or Vice President (whether or not designated by a number or a
word or words added before or after the title “Vice President”), the Treasurer, the Secretary or the Assistant Secretary of
such Person, or any direct or indirect parent of such Person, as applicable, or other Person performing such functions, regardless of
title or designated as an “Officer” by the Board of Directors for purposes of this Note.

 

(www)   
“Officer’s Certificate” means a certificate signed on behalf of the Company and the Parent Guarantor by
an Officer of the Company and an Officer of the Parent Guarantor and delivered to the Holder.

 

(xxx)   
“Original Issuance Date” means June 4, 2020.

 

(yyy)   
“Other Exercise Price” shall have the meaning ascribed to such term in the Series B Warrants.

 

(zzz)   
“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person, including
such entity whose common capital stock or equivalent equity security is quoted or listed on an Eligible Market (or, if so elected by the
Required Holders, any other market, exchange or quotation system), or, if there is more than one such Person or such entity, the Person
or such entity designated by the Required Holders or in the absence of such designation, such Person or entity with the largest public
market capitalization as of the date of consummation of the Fundamental Transaction.

 

(aaaa)   
“Parent Guarantee” means that certain guarantee agreement entered into by the Parent Guarantor as of the Issuance
Date.

 

(bbbb)    “Parent Guarantor” means Acacia Research Corporation, a Delaware corporation.

 

(cccc)   
“Permitted Investments” means:

 

(i)    any
Investment in the Parent Guarantor or the Company (including the Notes and the Additional Notes);

 

(ii)    any
Investment in cash or Cash Equivalents, Investment Grade Securities or Marketable Securities, provided that such assets
constitute Collateral;

 

(iii)    any
Approved Investment;

 

(iv)    any
Investment (x) existing on the Subscription Date, (y) made pursuant to binding commitments (whether or not subject to
conditions) in effect on the Subscription Date or (z) that replaces, refinances, refunds, renews or extends any Investment described
under either of the immediately preceding clauses (x) or (y), provided that any such Investment is in an amount that does not
exceed the amount replaced, refinanced, refunded, renewed or extended unless required by the terms of the Investment or otherwise
permitted hereunder;

 

(v)    any
Investment acquired by the Parent Guarantor or any of its Subsidiaries (a) in exchange for any other Investment or accounts
receivable held by the Parent Guarantor or any such Subsidiary in connection with or as a result of a bankruptcy, workout,
reorganization or recapitalization of the Parent Guarantor or such other Investment or accounts receivable, (b) in satisfaction of
judgments against other Persons, or (c) as a result of a foreclosure by the Parent Guarantor or any of its Subsidiaries with respect
to any secured Investment or other transfer of title with respect to any secured Investment in default;

 

 

 

 

    	 	38	 

     

    

 

(vi)    Hedging
Obligations entered into (1) for the purpose of fixing, managing or hedging interest rate risk with respect to any Indebtedness that
is permitted by the terms of this Note to be outstanding; (2) for the purpose of fixing, managing or hedging currency exchange rate
risk with respect to any currency exchanges; or (3) for the purpose of fixing, managing or hedging commodity price risk with respect
to any commodity purchases;

 

(vii)    Investments
the payment for which consists of Equity Interests of the Parent Guarantor (other than Disqualified Stock);

 

(viii)   
guarantees issued in accordance with Section 10(a);

 

(ix)    any
Investment by (A) the Company in the Parent Guarantor, (B) Guarantors in other Guarantors or (C) Pledged Subsidiaries (other than
the Company and any Guarantor) in other Pledged Subsidiaries; provided that such Pledged Subsidiary into which such
Investment is made has no material third-party liabilities and is not engaging in any activities or aware of any event that would
reasonably be expected to lead to a material third-party liability;

 

(x)    Investments
consisting of purchases and acquisitions of (i) inventory, supplies, materials and equipment by a Guarantor, (ii) Intellectual
Property assets or (iii) contract rights, royalty rights, revenue streams, licenses or leases of Intellectual Property, in each case
in the ordinary course of business and, with respect to clauses (ii) and (iii), in an aggregate amount since the Original Issuance
Date not to exceed $50,000,000;

 

(xi)    any
Investment in a Receivables Subsidiary or any Investment by a Receivables Subsidiary in any other Person in connection with a
Qualified Receivables Financing, including Investments of funds held in accounts permitted or required by the arrangements governing
such Qualified Receivables Financing or any related Indebtedness; provided, however, that any Investment in a
Receivables Subsidiary is in the form of cash, a Purchase Money Note, contribution of additional receivables or an equity
interest;

 

(xii)    Investments
of a Guarantor acquired after the Subscription Date or of an entity merged into or consolidated with a Guarantor in a transaction
that is not prohibited by Section 5(a) after the Subscription Date to the extent that such Investments were not made in
contemplation of such acquisition, merger or consolidation and were in existence on the date of such acquisition, merger or
consolidation;

 

(xiii)    Investments
in receivables owing to the Parent Guarantor or any Subsidiary created or acquired in the ordinary course of business;

 

(xiv)    advances
in the form of a prepayment of expense to vendors, suppliers and trade creditors consistent with their past practices, so long as
such expenses were incurred in the ordinary course of business;

 

(xv)    Investment
in or repurchases of this Note, the Other Notes, the Additional Notes, the Series A Preferred Shares or the Warrants;

 

(xvi)    Investments
resulting from the acquisition of a Person, otherwise permitted by this Note, which Investments at the time of such acquisition were
held by the acquired Person and were not acquired in contemplation of the acquisition of such Person;

 

(xvii)    Investments
consisting of earnest money deposits required in connection with a purchase agreement, or letter of intent, or other acquisitions to
the extent not otherwise prohibited by this Note; and

 

(xviii)   
contributions to a “rabbi” trust for the benefit of employees or other grantor trust subject to claims of creditors
in the case of a bankruptcy of the Parent Guarantor.

 

 

 

 

    	 	39	 

     

    

 

(dddd)   
“Permitted Liens” means, with respect to any Person:

 

(i)    Liens
existing on the Subscription Date;

 

(ii)    Liens
affecting property of a corporation or other entity existing at the time it becomes a Subsidiary or at the time it is merged into or
consolidated with the Parent Guarantor or a Subsidiary (provided that such Liens are not incurred in connection with, or in
contemplation of, such entity becoming a Subsidiary or such merger or consolidation and do not extend to or cover property of the
Parent Guarantor or any Subsidiary other than property of the entity so acquired or which becomes a Subsidiary);

 

(iii)    Liens
(including purchase money Liens) existing at the time of acquisition thereof on property acquired after the Subscription Date or to
secure Indebtedness Incurred prior to or, at the time of the acquisition thereof for the purpose of financing all or part of the
purchase price of property acquired after the Subscription Date (provided that such Liens do not extend to or cover any
property of the Parent Guarantor or any of its Subsidiaries other than the property so acquired);

 

(iv)    Liens
on any property acquired, developed, constructed or otherwise improved by the Parent Guarantor or any Subsidiary of the Parent
Guarantor (including Liens on the Equity Interests of any Subsidiary of the Parent Guarantor and substantially all assets of such
Subsidiary, in each case to the extent such property constitutes substantially all of the business of such Subsidiary) to secure or
provide for the payment of any part of the purchase price of the property or the cost of the development, construction or
improvement thereof (including architectural, engineering, financing, consultant, advisor and legal fees and preopening costs), or
any Indebtedness incurred to provide funds for such purposes, or any Lien on any such property existing at the time of acquisition
thereof;

 

(v)    Liens
which secure Indebtedness or other obligations of a Guarantor owing to a Guarantor permitted to be Incurred in accordance with
Section 10(a), which may be senior, pari passu or junior in right of payment and priority to the security interests established by
the Security Documents in accordance with a Customary Intercreditor Agreement;

 

(vi)    Liens
to government entities, including pollution control or industrial revenue bond financing;

 

(vii)    Liens
required by any contract or statute in order to permit the Parent Guarantor or a Subsidiary of the Parent Guarantor to perform any
contract or subcontract made by it with or at the request of a governmental entity;

 

(viii)    mechanic’s,
materialman’s, carrier’s or other like Liens, arising in the ordinary course of business;

 

(ix)    Liens
for taxes or assessments and similar charges;

 

(x)    zoning
restrictions, easements, licenses, covenants, reservations, restrictions on the use of real property and certain other minor
irregularities of title;

 

(xi)    Liens
required by an escrow agreement in connection with the incurrence of Indebtedness otherwise permitted under this Agreement;

 

(xii)    pledges
or deposits by such Person under workmen’s compensation laws, unemployment insurance laws or similar legislation, or good
faith deposits in connection with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to which such
Person is a party, or deposits to secure public or statutory obligations of such Person or deposits of cash or U.S. government bonds
to secure surety or appeal bonds to which such Person is a party, or deposits as security for contested taxes or import duties or
for the payment of rent, in each case Incurred in the ordinary course of business;

 

 

 

 

    	 	40	 

     

    

 

(xiii)    Liens
on specific items of inventory or other goods and proceeds of any Person securing such Person’s obligations in respect of
bankers’ acceptances issued or created for the account of such Person to facilitate the purchase, shipment or storage of such
inventory or other goods;

 

(xiv)    leases
and subleases of real property which do not materially interfere with the ordinary conduct of the business of the Parent Guarantor
or any of its Subsidiaries;

 

(xv)    Liens
securing cash management services (and other “bank products”) in the ordinary course of business;

 

(xvi)    Liens
on equipment of the Parent Guarantor or any Subsidiary of the Parent Guarantor granted in the ordinary course of business to the
Parent Guarantor’s or such Subsidiary’s client or supplier at which such equipment is located;

 

(xvii)   
Liens securing Indebtedness incurred pursuant to clause (1) of Section 10(a)(i) plus in the case of any such Indebtedness that
is amended, extended, renewed, restated, refunded, replaced, refinanced, supplemented, modified or otherwise changed which is secured
by a Lien permitted under this clause (xvii) or a portion thereof, the aggregate amount of fees, underwriting discounts, accrued and unpaid
interest, premiums and other costs and expenses incurred in connection with such amendment, extension, renewal, restatement, refunding,
replacement, refinancing, supplement, modification or change;

 

(xviii)   
Liens securing the Securities and the Guarantees;

 

(xix)    Liens
on accounts receivable and related assets of the type specified in the definition of “Receivables Financing” Incurred in
connection with a Qualified Receivables Financing;

 

(xx)    (a)
judgment and attachment Liens and Liens arising out of decrees, orders and awards, in each case, to the extent not giving rise to an
Event of Default and (b) notices of lis pendens and associated rights related to litigation being contested in good faith by
appropriate proceedings that have the effect of preventing the forfeiture or sale of the property or assets subject to such notices
and rights and for which adequate reserves have been made to the extent required by GAAP;

 

(xxi)    Liens
(i) on cash advances in favor of the seller of any property to be acquired in an Investment permitted pursuant to Permitted
Investments to be applied against the purchase price for such Investment, and (ii) consisting of an agreement to sell any property
in an asset sale permitted under this Note;

 

(xxii)   
Liens securing Indebtedness permitted under clause (22) of the definition of Permitted Debt; and

 

(xxiii)   
any extension, renewal, replacement, restructuring, refinancing or other modification of any Indebtedness secured by a Lien permitted
by any of the foregoing clauses (i) through (xxii).

 

(eeee)   
“Person” means an individual, a limited liability company, a partnership (limited or general), a joint venture,
a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

 

(ffff)   
“Pledged Subsidiaries” means those certain Subsidiaries whose Equity Interests (as defined in the Security Documents)
are Pledged Shares (as defined in the Security Documents).

 

 

 

 

    	 	41	 

     

    

 

(gggg)   
“Preferred Stock” means any Equity Interest with preferential right of payment of dividends or upon liquidation,
dissolution or winding up.

 

(hhhh)   
“Principal Market” means The Nasdaq Global Select Market.

 

(iiii)    “Purchase
Money Note” means a promissory note of a Receivables Subsidiary evidencing a line of credit, which may be irrevocable,
from the Parent Guarantor or any Subsidiary of the Parent Guarantor to a Receivables Subsidiary in connection with a Qualified
Receivables Financing, which note is intended to finance that portion of the purchase price that is not paid by cash or a
contribution of equity.

 

(jjjj)    “Qualified
Receivables Financing” means any Receivables Financing of a Receivables Subsidiary that meets the following
conditions:

 

(i)    the
Board shall have determined in good faith that such Qualified Receivables Financing (including financing terms, covenants,
termination events and other provisions) is in the aggregate economically fair and reasonable to the Parent Guarantor and the
Receivables Subsidiary,

 

(ii)    all
sales of accounts receivable and related assets to and by the Receivables Subsidiary are made at Fair Market Value, and

 

(iii)    the
financing terms, covenants, termination events and other provisions thereof shall be market terms (as determined in good faith by
the Parent Guarantor) and may include Standard Securitization Undertakings.

 

(kkkk)   
“Receivables Fees” means distributions or payments made directly or by means of discounts with respect to any
participation interest issued or sold in connection with, and other fees paid to a Person that is not a Subsidiary in connection with,
any Receivables Financing.

 

(llll)    “Receivables
Financing” means any transaction or series of transactions pursuant to which the Parent Guarantor or any of its
Subsidiaries may sell, convey or otherwise transfer to a Person, or may grant a security interest in, any accounts receivable
(whether now existing or arising in the future) of the Parent Guarantor or any of its Subsidiaries, and any assets related thereto
including, without limitation, all collateral securing such accounts receivable, all contracts and all guarantees or other
obligations in respect of such accounts receivable, proceeds of such accounts receivable and other assets which are customarily
transferred or in respect of which security interests are customarily granted in connection with asset securitization transactions
involving accounts receivable and any Hedging Obligations pursuant to a Swap Contract entered into by the Parent Guarantor or any
such Subsidiary in connection with such accounts receivable.

 

(mmmm)    “Receivables
Repurchase Obligation” means any obligation of a seller of receivables in a Qualified Receivables Financing to repurchase
receivables arising as a result of a breach of a representation, warranty or covenant or otherwise, including as a result of a
receivable or portion thereof becoming subject to any asserted defense, dispute, off-set or counterclaim of any kind as a result of
any action taken by, any failure to take action by or any other event relating to the seller.

 

 

 

 

    	 	42	 

     

    

 

(nnnn)   
“Receivables Subsidiary” means a Wholly Owned Subsidiary of the Parent Guarantor (or other Person formed
for the purposes of engaging in a Qualified Receivables Financing with the Parent Guarantor or any of its Subsidiaries in which the Parent
Guarantor or such Subsidiary makes an Investment and to which the Parent Guarantor or such Subsidiary transfers accounts receivable and
related assets) which engages in no activities other than in connection with the Receivables Financing, all proceeds thereof and all rights
(contractual or other), collateral and other assets relating thereto, and any business or activities incidental or related to such business
and which is designated by the Board (as provided below) as a Receivables Subsidiary and:

 

(i)    no
portion of the Indebtedness or any other obligations (contingent or otherwise) of which (x) is guaranteed by the Parent Guarantor or
any of its Subsidiaries (excluding guarantees of obligations (other than the principal of, and interest on, Indebtedness) pursuant
to Standard Securitization Undertakings), (y) is recourse to or obligates the Parent Guarantor or any of its Subsidiaries (other
than such Receivables Subsidiary) in any way other than pursuant to Standard Securitization Undertakings, or (z) subjects any
property or asset of the Parent Guarantor or any of its Subsidiaries, directly or indirectly, contingently or otherwise, to the
satisfaction thereof, other than pursuant to Standard Securitization Undertakings,

 

(ii)    with
which neither the Parent Guarantor nor any of its Subsidiaries has any material contract, agreement, arrangement or understanding
other than on terms which the Parent Guarantor reasonably believes to be no less favorable to the Parent Guarantor or such
Subsidiary than those that might be obtained at the time from Persons that are not Affiliates of the Parent Guarantor or such
Subsidiary, and

 

(iii)    to
which neither the Parent Guarantor nor any of its Subsidiaries has any obligation to maintain or preserve such entity’s
financial condition or cause such entity to achieve certain levels of operating results.

 

(iv)    Any
such designation by the Board or such other Person shall be evidenced to the Holder by delivery to the Holder of a certified copy of
the resolution of the Board or such other Person giving effect to such designation and an Officer’s Certificate certifying
that such designation complied with the foregoing conditions.

 

(oooo)   
“Redemption Amount” means the sum of (A) the portion of the Principal to be redeemed or otherwise with respect
to which this determination is being made, (B) accrued and unpaid Interest with respect to such Principal and (C) accrued and unpaid Late
Charges, if any, with respect to such Principal and Interest.

 

(pppp)   
“Redemption Dates” means, collectively, each Event of Default Redemption Date and each Change of Control Redemption
Date, each of the foregoing, individually, a “Redemption Date”.

 

(qqqq)   
“Redemption Notices” means, collectively, each Event of Default Redemption Notice and each Change of Control
Redemption Notice, each of the foregoing, individually, a “Redemption Notice”.

 

(rrrr)    “Redemption
Prices” means, collectively, each Event of Default Redemption Price and each Change of Control Redemption Price, each of
the foregoing, individually, a “Redemption Price”.

 

(ssss)   
“Registrable Securities” shall have the meaning ascribed to such term in the Registration Rights Agreement.

 

(tttt)   
“Registration Rights Agreement” means that certain registration rights agreement dated as of the Subscription
Date by and among the Parent Guarantor and the Buyers, as may be amended, amended and restated, supplemented or otherwise modified from
time to time.

 

(uuuu)   
“Registration Statement” shall have the meaning ascribed to such term in the Registration Rights Agreement.

 

 

 

 

    	 	43	 

     

    

 

(vvvv)   
“Related Fund” means, with respect to any Person, a fund or account managed by such Person or an Affiliate of
such Person.

 

(wwww)    “Required
Holders” means the holders of Notes and Additional Company Notes representing at least a majority of the aggregate
principal amount of the Notes and Additional Company Notes then outstanding and shall include the Designee so long as the Designee
and/or any of its Affiliates holds any Notes and/or Additional Company Notes.

 

(xxxx)   
“Restricted Investment” means an Investment other than a Permitted Investment.

 

(yyyy)   
“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.,
and any successor thereto.

 

(zzzz)   
“SEC” means the United States Securities and Exchange Commission.

 

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

 

(bbbbb)    “Securities
Purchase Agreement” means that certain securities purchase agreement, dated as of the Subscription Date, by and among the
Parent Guarantor and the Buyers of the Notes pursuant to which the Parent Guarantor or the Company, as applicable, issued the Notes,
the Additional Securities and the Warrants, as may be amended, amended and restated, supplemented or otherwise modified from time to
time.

 

(ccccc)    “Security
Documents” shall have the meaning ascribed to such term in the Securities Purchase Agreement, and shall include the New Pledge
Agreement, the New Security Agreement and the Parent Guarantee, each as defined in the Exchange Agreement.

 

(ddddd)   
“Series A Preferred Shares” shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(eeeee)   
“Series A Warrants” has the meaning ascribed to such term in the Securities Purchase Agreement, and shall include
all warrants issued in exchange therefor or replacement thereof.

 

(fffff)    “Series
B Warrants” has the meaning ascribed to such term in the Securities Purchase Agreement, and shall include all warrants
issued in exchange therefor or replacement thereof.

 

(ggggg)    “SPA
Notes” means all Senior Secured Notes issued by the Parent Guarantor or any Subsidiary pursuant to the Securities Purchase
Agreement on an Additional Closing Date.

 

(hhhhh)    “Standard
Securitization Undertakings” means representations, warranties, covenants, indemnities and guarantees of performance
entered into by the Parent Guarantor and its Subsidiaries which the Parent Guarantor has determined in good faith to be customary in
a Receivables Financing including, without limitation, those relating to the servicing of the assets of a Receivables Subsidiary, it
being understood that any Receivables Repurchase Obligation shall be deemed to be a Standard Securitization Undertaking.

 

(iiiii)   
“Stated Maturity” means, with respect to any security, the date specified in such security as the fixed date
on which the final payment of principal of such security is due and payable.

 

(jjjjj)    “Stated
Value” shall have the meaning ascribed to such term in the Certificate of Designations.

 

 

 

 

    	 	44	 

     

    

 

(kkkkk)   
“Stockholders Notes” shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(lllll)    “Subject
Entity” means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

 

(mmmmm)    “Subordinated
Indebtedness” means (a) with respect to the Parent Guarantor, any Indebtedness of the Parent Guarantor which is by its
terms subordinated in right of payment to the Notes, the Additional Notes and the Parent Guarantee, and (b) with respect to any
Guarantor other than the Parent Guarantor, any Indebtedness of such Guarantor which is by its terms subordinated in right of payment
to its Guarantee.

 

(nnnnn)    “Subscription
Date” means November 18, 2019.

 

(ooooo)    “Subsidiary”
shall have the meaning ascribed to such term in the Securities Purchase Agreement. Unless otherwise indicated herein, all references
to Subsidiaries shall mean Subsidiaries of the Parent Guarantor.

 

(ppppp)   
“Successor Entity” means one or more Person or Persons (or, if so elected by the Required Holders, the Parent
Guarantor or Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or one or more Person or Persons (or, if
so elected by the Required Holders, the Parent Guarantor or the Parent Entity) with which such Fundamental Transaction shall have been
entered into.

 

(qqqqq)    “Supplemental
Agreement” means that certain Supplemental Agreement dated as of June 4, 2020 by and between the Parent Guarantor and the
Designee.

 

(rrrrr)    “Swap
Contracts” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond
price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate
options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap
transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any
combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction
is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations,
which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such
master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or
liabilities under any Master Agreement.

 

(sssss)   
 “Total Assets” means at any date, the total assets of the Parent Guarantor and its Subsidiaries at such date,
determined on a consolidated basis in accordance with GAAP, excluding any assets that do not constitute Collateral.

 

(ttttt)    “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock on such day, then on the principal securities exchange or securities market on which
the Common Stock is then traded; provided that “Trading Day” shall not include any day on which the Common Stock
is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading
during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing
time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

(uuuuu)    “Transaction
Documents” shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(vvvvv)    “Transfer
Agent” means Computershare Trust Company, N.A. or such other agent or agents of the Parent Guarantor as may be designated
by the Board as the transfer agent for the Common Stock.

 

 

 

 

    	 	45	 

     

    

 

(wwwww)   
“Treasury Rate” means the yield to maturity at the time of computation of United States Treasury securities
with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) which has become
publicly available at least two (2) Business Days prior to the date fixed for redemption (or, if such Statistical Release is no longer
published, any publicly available source for similar market data)) most nearly equal to the then remaining term of the Notes to the Maturity
Date; provided, however, that if the then remaining term of the Notes to the Maturity Date is not equal to the constant maturity
of a United States Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for
which such yields are given, except that, if the then remaining term of the Notes to the Maturity Date is less than one year, the weekly
average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year shall be used.

 

(xxxxx)   
“Warrants” has the meaning ascribed to such term in the Securities Purchase Agreement, and shall include all
warrants issued in exchange therefor or replacement thereof.

 

(yyyyy)   
“Weighted Average Life to Maturity” means, when applied to any Indebtedness or Disqualified Stock, as the case
may be, at any date, the quotient obtained by dividing (1) the sum of the products of the number of years from the date of determination
to the date of each successive scheduled principal payment of such Indebtedness or redemption or similar payment with respect to such
Disqualified Stock multiplied by the amount of such payment, by (2) the sum of all such payments.

 

(zzzzz)    “Wholly Owned
Subsidiary” means, with respect to any Person, a Subsidiary of such Person 100% of the outstanding Capital Stock or other ownership
interests of which (other than directors’ qualifying shares or shares or interests required to be held by foreign nationals or other
third parties to the extent required by applicable law) shall at the time be owned by such Person or by one or more Wholly Owned Subsidiaries
of such Person and one or more Wholly Owned Subsidiaries of such Person.

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	46	 

     

    

 

 

IN WITNESS WHEREOF, the Company
and the Parent Guarantor have caused this Note to be duly executed as of the Issuance Date set out above.

 

	 	Merton Acquisition HoldCo LLC
	 	 
	 	 
	 	By: /s/ Richard Rosenstein                               
	 	Name:   Richard Rosenstein
	 	Title:     Chief Financial Officer

 

 

	 	Acacia Research Corporation
	 	 
	 	 
	 	By: /s/ Richard Rosenstein                               
	 	Name:   Richard Rosenstein
	 	Title:     Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	47Exhibit 4.4

 

WARRANT AGREEMENT

 

THIS
WARRANT AGREEMENT (this “Agreement”) is made as of [●], 2021 between Larkspur Health Acquisition Corp.,
a Delaware corporation, with offices at 100 Somerset Corporate Blvd., 2nd Floor, Bridgewater, New Jersey 08807 (“Company”),
and Continental Stock Transfer & Trust Company, a New York limited purpose trust company, with offices at 1 State Street, New York,
New York 10004, as warrant agent (“Warrant Agent”).

 

WHEREAS,
the Company is engaged in a public offering (“Public Offering”) of up to 8,625,000 units (including 1,125,000 units
which may be issued pursuant to an overallotment option granted to the underwriters of the Public Offering), each unit (the “Units”)
comprised of one share of Class A common stock of the Company, par value $0.0001 (“Common Stock”), and one-half of
one warrant, where each whole warrant entitles the holder to purchase one share of Common Stock at a price of $11.50 per share, subject
to adjustment as described herein, and, in connection therewith, will issue and deliver up to 4,312,500 warrants (the “Public
Warrants”) to the public investors in connection with the Public Offering;

 

WHEREAS,
the Company has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-1,
No. 333-256056 (“Registration Statement”) and prospectus (“Prospectus”), for the registration,
under the Securities Act of 1933, as amended (“Act”) of, among other securities, the Public Warrants;

 

WHEREAS,
the Company has received a binding commitment from the Company’s sponsor, Larkspur Health LLC (the “Sponsor”),
to purchase, simultaneously with the closing of the Public Offering, up to an aggregate of 242,600 units (the “Private Units”),
each Private Unit comprised of one share of Common Stock and one-half of one warrant (the “Private Warrants”), where
each Private Warrant is exercisable to purchase one share of Common Stock at a price of $11.50 per whole share, bearing the legend set
forth in Exhibit B hereto;

 

WHEREAS,
following consummation of the Public Offering, the Company may issue additional warrants (“Post IPO Warrants,” and
together with the Public Warrants and Private Warrants, the “Warrants”) in connection with, or following the consummation
by the Company of, a Business Combination (defined below);

 

WHEREAS,
the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with
the issuance, registration, transfer, exchange, redemption, and exercise of the Warrants;  

 

WHEREAS,
the Company desires to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised, and
the respective rights, limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants; and

 

WHEREAS,
all acts and things have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company and
countersigned by or on behalf of the Warrant Agent, as provided herein, the valid, binding, and legal obligations of the Company, and
to authorize the execution and delivery of this Agreement.

  

NOW,
THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows:

 

1. Appointment
of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants, and the Warrant
Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set forth in this Agreement.

 

2. Warrants.

 

2.1. Form
of Warrant. Each Warrant shall be issued in registered form only, shall be in substantially the form of Exhibit A hereto, the
provisions of which are incorporated herein and shall be signed by, or bear the facsimile signature of, the Chairman of the Board of Directors
or Chief Executive Officer and Treasurer, Secretary or Assistant Secretary of the Company and shall bear a facsimile of the Company’s
seal. In the event the person whose facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity in
which such person signed the Warrant before such Warrant is issued, it may be issued with the same effect as if he or she had not ceased
to be such at the date of issuance.

 

     

    

    

 

2.2. Uncertificated
Warrants. Notwithstanding anything herein to the contrary, any Warrant, or portion thereof, may be issued as part of, and be represented
by, a Unit, and any Warrant may be issued in uncertificated or book-entry form through the Warrant Agent and/or the facilities of The
Depository Trust Company or other book-entry depositary system, in each case as determined by the Board of Directors of the Company or
by an authorized committee thereof. Any Warrant so issued shall have the same terms, force and effect as a certificated Warrant that has
been duly countersigned by the Warrant Agent in accordance with the terms of this Agreement.

 

2.3. Effect
of Countersignature. Except with respect to uncertificated Warrants as described above, unless and until countersigned by the Warrant
Agent pursuant to this Agreement, a Warrant shall be invalid and of no effect and may not be exercised by the holder thereof.

 

2.4. Registration.

 

2.4.1. Warrant
Register. The Warrant Agent shall maintain books (“Warrant Register”) for the registration of original issuance
and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall issue and register
the Warrants in the names of the respective holders thereof in such denominations and otherwise in accordance with instructions delivered
to the Warrant Agent by the Company.

 

2.4.2. Registered
Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem and treat
the person in whose name such Warrant is then registered in the Warrant Register (“registered holder”) as the absolute
owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or other writing on the Warrant
certificate made by anyone other than the Company or the Warrant Agent), for the purpose of any exercise thereof, and for all other purposes,
and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

 

2.5. Detachability
of Warrants. The securities comprising the Units will not be separately transferable until the 52nd day following the date
of the Prospectus or, if such 52nd day is not on a day, other than a Saturday, Sunday or federal holiday, on which banks in
New York City are generally open for normal business (a “Business Day”), then on the immediately succeeding Business
Day following such date, or earlier with the consent of A.G.P./Alliance Global Partners (the “Representative”), but
in no event will the Representative allow separate trading of the securities comprising the Units until (i) the Company has filed
a Current Report on Form 8-K which includes an audited balance sheet reflecting the receipt by the Company of the gross proceeds
of the Public Offering including the proceeds received by the Company from the exercise of the underwriters’ over-allotment option
in the Public Offering, if the over-allotment option is exercised prior to the filing of the Form 8-K, and (ii) the Company
has issued a press release and has filed a Current Report on Form 8-K announcing when such separate trading shall begin (the “Detachment
Date”).

 

2.6. Private
Warrant Attributes. The Private Warrants will be identical to the Public Warrants.

  

2.7. 
Post IPO Warrants. The Post IPO Warrants, when and if issued, shall have the same terms and be in the same form as the Public Warrants
except as may be agreed upon by the Company. 

 

3. Terms and
Exercise of Warrants

 

3.1. Warrant
Price. Each Warrant shall, when countersigned by the Warrant Agent (except with respect to uncertificated Warrants), entitle the registered
holder thereof, subject to the provisions of such Warrant and of this Agreement, to purchase from the Company the number of shares of
Common Stock stated therein, at the price of $11.50 per share, subject to the adjustments provided in Section 4 hereof and in the
last sentence of this Section 3.1. The term “Warrant Price” as used in this Agreement refers to the price per share at
which the shares of Common Stock may be purchased at the time a Warrant is exercised. The Company in its sole discretion may lower the
Warrant Price at any time prior to the Expiration Date (as defined below) for a period of not less than twenty (20) Business Days;
provided, that the Company shall provide at least twenty (20) days’ prior written notice of such reduction to registered holders
of the Warrants and, provided further that any such reduction shall be applied consistently to all of the Warrants.

 

    2

    

    

 

3.2. Duration
of Warrants. A Warrant may be exercised only during the period commencing on the later of (a) the consummation by the Company of a
merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with
one or more businesses or entities (“Business Combination”) (as described more fully in the Registration Statement)
or (b) one year after the date of the closing of the Public Offering, and terminating at 5:00 p.m., New York City time on the earlier
to occur of (i) the date that is five (5) years after the date on which the Company consummates a Business Combination, (ii) at 5:00
p.m., New York City time on the Redemption Date as provided in Section 6.2 of this Agreement and (iii) the liquidation
of the Trust Account (defined below) (“Expiration Date”). The period of time from the date the Warrants will first
become exercisable until the expiration of the Warrants shall hereafter be referred to as the “Exercise Period.” Except with
respect to the right to receive the Redemption Price (as set forth in Section 6 hereunder), as applicable, each outstanding Warrant
not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in respect thereof under this
Agreement shall cease at the close of business on the Expiration Date. The Company in its sole discretion may extend the duration of the
Warrants by delaying the Expiration Date; provided, however, that the Company will provide at least twenty (20) days’ prior
written notice of any such extension to registered holders and, provided further that any such extension shall be applied consistently
to all of the Warrants.

 

3.3. Exercise
of Warrants.

 

3.3.1. Payment.
Subject to the provisions of the Warrant and this Agreement, a Warrant, when countersigned by the Warrant Agent, may be exercised by the
registered holder thereof by surrendering it, at the office of the Warrant Agent, or at the office of its successor as Warrant Agent,
in the Borough of Manhattan, City and State of New York, with the subscription form, as set forth in the Warrant, duly executed, and by
paying in full the Warrant Price for each share of Common Stock as to which the Warrant is exercised and any and all applicable taxes
due in connection with the exercise of the Warrant, as follows:

 

(a)
in lawful money of the United States, by good certified check or good bank draft payable to the order of the Warrant Agent or wire transfer;

 

(b)
in the event of a redemption pursuant to Section 6.1 hereof in which the Company’s management has elected to force all holders
of Warrants to exercise such Warrants on a “cashless basis,” by surrendering the Warrants for that number of shares of Common
Stock equal to the quotient obtained by dividing (x) the product of the number of shares of Common Stock underlying the Warrants,
multiplied by the difference between the Warrant Price and the “Fair Market Value” (defined below) by (y) the Fair Market
Value. Solely for purposes of this Section 3.3.1(b), the “Fair Market Value” shall mean the average reported closing
price of the shares of Common Stock for the ten (10) trading days ending on the third trading day prior to the date on which the
notice of redemption is sent to holders of the Warrants pursuant to Section 6 hereof; or

   

(c)
in the event the registration statement required by Section 7.4 hereof is not effective and current within ninety (90) days
after the closing of a Business Combination, by surrendering such Warrants for that number of shares of Common Stock equal to the quotient
obtained by dividing (x) the product of the number of shares of Common Stock underlying the Warrants, multiplied by the difference
between the exercise price of the Warrants and the “Fair Market Value” by (y) the Fair Market Value; provided, however,
that no cashless exercise shall be permitted unless the Fair Market Value is equal to or higher than the exercise price. Solely for purposes
of this Section 3.3.1(c), the “Fair Market Value” shall mean the average reported last sale price of the shares of Common
Stock for the ten (10) trading days ending on the trading day prior to the date of exercise.

 

3.3.2. Issuance
of shares of Common Stock. As soon as practicable after the exercise of any Warrant and the clearance of the funds in payment of the
Warrant Price (if any), the Company shall issue to the registered holder of such Warrant a certificate or certificates, or book entry
position, for the number of shares of Common Stock to which he, she or it is entitled, registered in such name or names as may be directed
by him, her or it, and if such Warrant shall not have been exercised in full, a new countersigned Warrant, or book entry position, for
the number of shares as to which such Warrant shall not have been exercised. Notwithstanding the foregoing, in no event will the Company
be required to net cash settle the Warrant exercise. No Warrant shall be exercisable for cash and the Company shall not be obligated to
issue shares of Common Stock upon exercise of a Warrant unless the shares of Common Stock issuable upon such Warrant exercise has been
registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the Warrants.
In the event that the condition in the immediately preceding sentence is not satisfied with respect to a Warrant, the holder of such Warrant
shall not be entitled to exercise such Warrant for cash and such Warrant may have no value and expire worthless, in which case the purchaser
of a Unit containing such Warrants shall have paid the full purchase price for the Unit solely for the shares of Common Stock underlying
such Unit. Warrants may not be exercised by, or securities issued to, any registered holder in any state in which such exercise or issuance
would be unlawful.

 

    3

    

    

 

3.3.3. Valid
Issuance. All the shares of Common Stock issued upon the proper exercise of a Warrant in conformity with this Agreement shall be validly
issued, fully paid and nonassessable.

 

3.3.4. Date
of Issuance. Each person in whose name any book entry position or certificate for shares of Common Stock is issued shall for all purposes
be deemed to have become the holder of record of such shares on the date on which the Warrant, or book entry position representing such
Warrant, was surrendered and payment of the Warrant Price was made, irrespective of the date of delivery of such certificate, except that,
if the date of such surrender and payment is a date when the share transfer books of the Company or book entry system of the Warrant Agent
are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date
on which the share transfer books or book entry system are open.

  

3.3.5 Maximum
Percentage. A holder of a Warrant may notify the Company in writing in the event it elects to be subject to the provisions contained
in this subsection 3.3.5; however, no holder of a Warrant shall be subject to this subsection 3.3.5 unless he, she or it makes such election.
If the election is made by a holder, the Warrant Agent shall not cause the exercise of the holder’s Warrant, and such holder shall
not have the right to exercise such Warrant, to the extent that after giving effect to such exercise, such person (together with such
person’s affiliates), to the Warrant Agent’s actual knowledge, would beneficially own in excess of 9.8% (the “Maximum
Percentage”) of the shares of Common Stock outstanding immediately after giving effect to such exercise. For purposes of the
foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by such person and its affiliates shall include
the number of shares of Common Stock issuable upon exercise of the Warrant with respect to which the determination of such sentence is
being made, but shall exclude shares of Common Stock that would be issuable upon (x) exercise of the remaining, unexercised portion
of the Warrant beneficially owned by such person and its affiliates and (y) exercise or conversion of the unexercised or unconverted
portion of any other securities of the Company beneficially owned by such person and its affiliates (including, without limitation, any
convertible notes or convertible preferred stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation
contained herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated
in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For
purposes of the Warrant, in determining the number of outstanding shares of Common Stock, the holder may rely on the number of outstanding
shares of Common Stock as reflected in (1) the Company’s most recent annual report on Form 10-K, quarterly report
on Form 10-Q, current report on Form 8-K or other public filing with the SEC as the case may be, (2) a more recent
public announcement by the Company or (3) any other notice by the Company or the Warrant Agent setting forth the number of shares
of Common Stock outstanding. For any reason at any time, upon the written request of the holder of the Warrant, the Company shall, within
two (2) Business Days, confirm orally and in writing to such holder the number of shares of Common Stock then outstanding. In any
case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of equity
securities of the Company by the holder and its affiliates since the date as of which such number of outstanding shares of Common Stock
was reported. By written notice to the Company, the holder of a Warrant may from time to time increase or decrease the Maximum Percentage
applicable to such holder to any other percentage specified in such notice; provided, however, that any such increase shall not be effective
until the sixty-first (61st) day after such notice is delivered to the Company.

 

4. Adjustments.

 

4.1. Stock
Dividends; Split Ups. If after the date hereof, and subject to the provisions of Section 4.6 below, the number of outstanding
shares of Common Stock is increased by a stock dividend payable in shares of Common Stock, or by a split up of shares of Common Stock,
or other similar event, then, on the effective date of such stock dividend, split up or similar event, the number of shares of Common
Stock issuable on exercise of each Warrant shall be increased in proportion to such increase in outstanding shares of Common Stock.

 

    4

    

    

 

4.2. Aggregation
of Shares. If after the date hereof, the number of outstanding shares of Common Stock is decreased by a consolidation, combination,
reverse stock split or reclassification of shares of Common Stock or other similar event, then, on the effective date of such consolidation,
combination, reverse stock split, reclassification or similar event, the number of shares of Common Stock issuable on exercise of each
Warrant shall be decreased in proportion to such decrease in outstanding shares of Common Stock.

  

4.3 Extraordinary
Dividends. If the Company, at any time while the Warrants are outstanding and unexpired, shall pay a dividend or make a distribution
in cash, securities or other assets to the holders of the shares of Common Stock or other shares of the Company’s capital stock
into which the Warrants are convertible (an “Extraordinary Dividend”), then the Warrant Price shall be decreased, effective
immediately after the effective date of such Extraordinary Dividend, by the amount of cash and the fair market value (as determined by
the Company’s Board of Directors, in good faith) of any securities or other assets paid in respect of such Extraordinary Dividend
divided by all outstanding shares of the Company at such time (whether or not any stockholders waived their right to receive such dividend);
provided, however, that none of the following shall be deemed an Extraordinary Dividend for purposes of this provision: (a) any adjustment
described in subsection 4.1 above, (b) any cash dividends or cash distributions which, when combined on a per share basis with all
other cash dividends and cash distributions paid on the shares of Common Stock during the 365-day period ending on the date
of declaration of such dividend or distribution does not exceed $0.50 per share (taking into account all of the outstanding shares of
the Company at such time (whether or not any stockholders waived their right to receive such dividend) and as adjusted to appropriately
reflect any of the events referred to in other subsections of this Section 4 and excluding cash dividends or cash distributions that
resulted in an adjustment to the Warrant Price or to the number of shares of Common Stock issuable on exercise of each Warrant) but only
with respect to the amount of the aggregate cash dividends or cash distributions equal to or less than $0.50, (c) any payment to satisfy
the conversion rights of the holders of the shares of Common Stock in connection with a proposed initial Business Combination or certain
amendments to the Company’s Amended and Restated Certificate of Incorporation (as described in the Registration Statement) or (d) any
payment in connection with the Company’s liquidation and the distribution of its assets upon its failure to consummate a Business
Combination. Solely for purposes of illustration, if the Company, at a time while the Warrants are outstanding and unexpired, pays a cash
dividend of $0.35 and previously paid an aggregate of $0.40 of cash dividends and cash distributions on the shares of Common Stock during
the 365-day period ending on the date of declaration of such $0.35 dividend, then the Warrant Price will be decreased, effectively
immediately after the effective date of such $0.35 dividend, by $0.25 (the absolute value of the difference between $0.75 (the aggregate
amount of all cash dividends and cash distributions paid or made in such 365-day period, including such $0.35 dividend) and
$0.50 (the greater of (x) $0.50 and (y) the aggregate amount of all cash dividends and cash distributions paid or made in such 365-day period
prior to such $0.35 dividend)). Furthermore, solely for the purposes of illustration, if following the closing of the Company’s
initial Business Combination, there were 100,000,000 shares outstanding and the Company paid a $1.00 dividend to 17,500,000 of such shares
(with the remaining 82,500,000 shares waiving their right to receive such dividend), then no adjustment to the Warrant Price would occur
as a $17.5 million dividend payment divided by 100,000,000 shares equals $0.175 per share which is less than $0.50 per share.

 

4.4 Adjustments
in Exercise Price. Whenever the number of shares of Common Stock purchasable upon the exercise of the Warrants is adjusted, as provided
in Sections 4.1 and 4.2 above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price immediately
prior to such adjustment by a fraction (x) the numerator of which shall be the number of shares of Common Stock purchasable upon
the exercise of the Warrants immediately prior to such adjustment, and (y) the denominator of which shall be the number of shares
of Common Stock so purchasable immediately thereafter.

 

4.5. Replacement
of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding shares of Common Stock
(other than a change covered by Section 4.1, 4.2 or 4.3 hereof or that solely affects the par value of the shares of Common Stock),
or in the case of any merger or consolidation of the Company with or into another corporation (other than a consolidation or merger in
which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the outstanding
shares of Common Stock), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of
the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Warrant holders shall
thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu
of the shares of Common Stock of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented
thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification,
reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the Warrant holder would have
received if such Warrant holder had exercised his, her or its Warrant(s) immediately prior to such event. If any reclassification also
results in a change in the shares of Common Stock covered by Section 4.1, 4.2 or 4.3, then such adjustment shall be made pursuant
to Sections 4.1, 4.2, 4.3, 4.4 and this Section 4.5. The provisions of this Section 4.5 shall similarly apply to successive
reclassifications, reorganizations, mergers or consolidations, sales or other transfers. In no event will the Warrant Price be reduced
to less than the par value per share issuable upon exercise of the Warrant.

  

    5

    

    

 

4.6. Issuance
in connection with a Business Combination. If, in connection with a Business Combination, the Company (a) issues additional shares
of Common Stock or equity-linked securities at an issue price or effective issue price of less than $9.20 per share (with such issue price
or effective issue price as determined by the Company’s Board of Directors, in good faith, and in the case of any such issuance
to the Company’s initial stockholders, or their affiliates, without taking into account any founders’ shares held by them
prior to such issuance), (b) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and
interest thereon, available for the funding of the Business Combination on the date of the consummation of such Business Combination (net
of redemptions), and (c) the Fair Market Value (as defined below) is below $9.20 per share, the exercise price of the warrants will be
adjusted (to the nearest cent) to be equal to 115% of the greater of (i) the Fair Market Value or (ii) the price at which the Company
issues the shares of Common Stock or equity-linked securities, and the $18.00 per share redemption trigger price will be adjusted (to
the nearest cent) to be equal to 180% of the higher of the Fair Market Value and the price at which the Company issues shares of Common
Stock or equity-linked securities. Solely for purposes of this Section 4.6, the “Fair Market Value” shall mean the
volume weighted average reported trading price of the shares of Common Stock for the twenty (20) trading days starting on the trading
day prior to the date of the consummation of the Business Combination.

 

4.7
Notices of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable upon exercise of a Warrant,
the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Warrant Price resulting from such adjustment
and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of a Warrant, setting forth
in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of any event specified
in Sections 4.1, 4.2, 4.3, 4.4, 4.5, or 4.6, then, in any such event, the Company shall give written notice to each Warrant holder, at
the last address set forth for such holder in the Warrant Register, of the record date or the effective date of the event. Failure to
give such notice, or any defect therein, shall not affect the legality or validity of such event.

 

4.8. No
Fractional Warrants or Shares. Notwithstanding any provision contained in this Agreement to the contrary, the Company shall not issue
fractional shares upon exercise of Warrants. If, by reason of any adjustment made pursuant to this Section 4, the holder of any Warrant
would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise,
round up to the nearest whole number of shares of Common Stock to be issued to the Warrant holder.

 

4.9. Form
of Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this Section 4, and Warrants issued
after such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrants initially issued pursuant
to this Agreement. However, the Company may at any time in its sole discretion make any change in the form of Warrant that the Company
may deem appropriate and that does not affect the substance thereof, and any Warrant thereafter issued or countersigned, whether in exchange
or substitution for an outstanding Warrant or otherwise, may be in the form as so changed.

 

4.10 Other
Events. In case any event shall occur affecting the Company as to which none of the provisions of preceding subsections of this Section 4
are strictly applicable, but which would require an adjustment to the terms of the Warrants in order to (i) avoid an adverse impact
on the Warrants and (ii) effectuate the intent and purpose of this Section 4, then, in each such case, the Company shall appoint
a firm of independent public accountants, investment banking or other appraisal firm of recognized national standing, which shall give
its opinion as to whether or not any adjustment to the rights represented by the Warrants is necessary to effectuate the intent and purpose
of this Section 4 and, if they determine that an adjustment is necessary, the terms of such adjustment. The Company shall adjust
the terms of the Warrants in a manner that is consistent with any adjustment recommended in such opinion.

 

    6

    

    

 

4.11
No Adjustment. For the avoidance of doubt, no adjustment shall be made to the terms of the Warrants solely as a result of an adjustment
to the conversion ratio of the Company’s Class B common stock (the “Class B Common Stock”) into shares of Common
Stock or the conversion of the shares of Class B Common Stock into shares of Common Stock, in each case, pursuant to the Company’s
Charter, as amended from time to time.

 

5. Transfer and
Exchange of Warrants.

 

5.1. Registration
of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant upon the Warrant Register,
upon surrender of such Warrant for transfer, properly endorsed with signatures, in the case of certificated Warrants, properly guaranteed
and accompanied by appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate number
of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent. In the case of certificated Warrants, the Warrants
so cancelled shall be delivered by the Warrant Agent to the Company from time to time upon request.

 

5.2. Procedure
for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, either in certificated form or in book entry position,
together with a written request for exchange or transfer, and thereupon the Warrant Agent shall issue in exchange therefor one or more
new Warrants, or book entry positions, as requested by the registered holder of the Warrants so surrendered, representing an equal aggregate
number of Warrants; provided, however, that in the event that a Warrant surrendered for transfer bears a restrictive legend, the Warrant
Agent shall not cancel such Warrant and issue new Warrants in exchange therefor until the Warrant Agent has received an opinion of counsel
for the Company stating that such transfer may be made and indicating whether the new Warrants must also bear a restrictive legend.

  

5.3. Fractional
Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which will result in the issuance
of a warrant certificate or book-entry position for a fraction of a Warrant.

 

5.4. Service
Charges. No service charge shall be made for any exchange or registration of transfer of Warrants.

 

5.5. Warrant
Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the terms
of this Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and the Company, whenever required
by the Warrant Agent, will supply the Warrant Agent with Warrants duly executed on behalf of the Company for such purpose.

 

5.6. Private
Warrants. The Warrant Agent shall not register any transfer of Private Warrants until after the consummation by the Company of an
initial Business Combination, except for transfers in each case (a) to the
Company’s officers or directors, any affiliates or family members of any of the Company’s officers or directors, any members
of the Sponsor, or any affiliates of the Sponsor, (b) in the case of an individual, by gift to a member of one of the members of
the individual’s immediate family or to a trust, the beneficiary of which is a member of one of the individual’s immediate
family, an affiliate of such person or to a charitable organization; (c) in the case of an individual, by virtue of laws of descent
and distribution upon death of any of the Company’s officers, directors, the initial stockholders or members of the Sponsor; (d) in
the case of an individual, pursuant to a qualified domestic relations order; (e) by private sales or transfers made in connection
with the consummation of an initial Business Combination at prices no greater than the price at which the securities were originally purchased;
(f) in the event of the Company’s liquidation prior to the completion of the initial Business Combination; (g) by virtue
of the laws of Delaware or the Sponsor’s limited liability company agreement upon dissolution of the Sponsor; or (h) in the
event of the Company’s liquidation, merger, capital stock exchange, reorganization or other similar transaction which results in
all of the Company’s stockholders having the right to exchange their shares of Common Stock for cash, securities or other property
subsequent to the Company’s completion of the initial Business Combination; provided, however, that in the case of clauses (a) through
(e) or (g), each transferee (the “Permitted Transferee”) must enter into a written agreement to be bound by these
transfer restrictions contained in this section and any other applicable agreement the transferor is bound by.

 

5.7. Transfers
prior to Detachment. Prior to the Detachment Date, the Public Warrants may be transferred or exchanged only together with the Unit
in which such Warrant is included, and only for the purpose of effecting, or in conjunction with, a transfer or exchange of such Unit.
Furthermore, each transfer of a Unit on the register relating to such Units shall operate also to transfer the Warrants included in such
Unit. Notwithstanding the foregoing, the provisions of this Section 5.7 shall have no effect on any transfer of Warrants on or after
the Detachment Date.

 

    7

    

    

 

6. Redemption.

 

6.1. Redemption.
Not less than all of the outstanding Warrants may be redeemed, at the option of the Company, at any time during the Exercise Period, at
the office of the Warrant Agent, upon the notice referred to in Section 6.2, at the price of $0.01 per Warrant (“Redemption
Price”), provided that the closing price of the Common Stock equals or exceeds $18.00 per share (subject to adjustment in accordance
with Section 4 hereof), on each of twenty (20) trading days within any thirty (30) trading day period commencing after
the Warrants become exercisable and ending on the third trading day prior to the date on which notice of redemption is given and provided
that there is an effective registration statement covering the shares of Common Stock issuable upon exercise of the Warrants, and a current
prospectus relating thereto, available throughout the 30-day redemption or the Company has elected to require the exercise of
the Warrants on a “cashless basis” pursuant to subsection 3.3.1(b); provided, however, that if and when the Warrants become
redeemable by the Company, the Company may not exercise such redemption right if the issuance of shares of Common Stock upon exercise
of the Warrants is not exempt from registration or qualification under applicable state blue sky laws or the Company is unable to effect
such registration or qualification.

 

6.2. Date
Fixed for, and Notice of, Redemption. In the event the Company shall elect to redeem all of the Warrants that are subject to redemption,
the Company shall fix a date for the redemption (the “Redemption Date”). Notice of redemption shall be mailed by first
class mail, postage prepaid, by the Company not less than thirty (30) days prior to the Redemption Date to the registered holders
of the Warrants to be redeemed at their last addresses as they shall appear on the registration books. Any notice mailed in the manner
herein provided shall be conclusively presumed to have been duly given whether or not the registered holder received such notice.

  

6.3. Exercise
After Notice of Redemption. The Warrants may be exercised, for cash (or on a “cashless basis” in accordance with Section 3
of this Agreement) at any time after notice of redemption shall have been given by the Company pursuant to Section 6.2 hereof and
prior to the Redemption Date. In the event the Company determines to require all holders of Warrants to exercise their Warrants on a “cashless
basis” pursuant to Section 3.3.1(b), the notice of redemption will contain the information necessary to calculate the number
of shares of Common Stock to be received upon exercise of the Warrants, including the “Fair Market Value” in such case. On
and after the Redemption Date, the record holder of the Warrants shall have no further rights except to receive, upon surrender of the
Warrants, the Redemption Price.

 

7. Other Provisions
Relating to Rights of Holders of Warrants.

 

7.1. No
Rights as Stockholder. A Warrant does not entitle the registered holder thereof to any of the rights of a stockholder of the Company,
including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights to vote or to consent
or to receive notice as stockholders in respect of the meetings of stockholders or the election of directors of the Company or any other
matter.

 

7.2. Lost,
Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen, mutilated, or destroyed, the Company and the Warrant Agent
may on such terms as to indemnity or otherwise as they may in their discretion impose (which shall, in the case of a mutilated Warrant,
include the surrender thereof), issue a new Warrant of like denomination, tenor, and date as the Warrant so lost, stolen, mutilated, or
destroyed. Any such new Warrant shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost,
stolen, mutilated, or destroyed Warrant shall be at any time enforceable by anyone.

 

7.3. Reservation
of shares of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued shares
of Common Stock that will be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement.

 

    8

    

    

 

7.4. Registration
of shares of Common Stock. The Company agrees that as soon as practicable after the closing of its initial Business Combination, it
shall use its best efforts to file with the Securities and Exchange Commission a registration statement for the registration, under the
Act, of the shares of Common Stock issuable upon exercise of the Warrants, and it shall use its best efforts to take such action as is
necessary to register or qualify for sale, in those states in which the Warrants were initially offered by the Company and in those states
where holders of Warrants then reside, the shares of Common Stock issuable upon exercise of the Warrants, to the extent an exemption is
not available. The Company will use its best efforts to cause the same to become effective and to maintain the effectiveness of such registration
statement, and a current prospectus relating thereto, until the expiration of the Warrants in accordance with the provisions of this Agreement.
If any such registration statement has not been declared effective by the 90th day following the closing of the Business Combination,
holders of the Warrants shall have the right, during the period beginning on the 91st day after the closing of the Business Combination
and ending upon such registration statement being declared effective by the Securities and Exchange Commission, and during any other period
when the Company shall fail to have maintained an effective registration statement covering the shares of Common Stock issuable upon exercise
of the Warrants, to exercise such Warrants on a “cashless basis” as determined in accordance with Section 3.3.1(c). The
Company shall provide the Warrant Agent with an opinion of counsel for the Company (which shall be an outside law firm with securities
law experience) stating that (i) the exercise of the Warrants on a cashless basis in accordance with this Section 7.4 is not
required to be registered under the Act and (ii) the shares of Common Stock issued upon such exercise will be freely tradable under
U.S. federal securities laws by anyone who is not an affiliate (as such term is defined in Rule 144 under the Act) of the Company and,
accordingly, will not be required to bear a restrictive legend. For the avoidance of any doubt, unless and until all of the Warrants have
been exercised on a cashless basis, the Company shall continue to be obligated to comply with its registration obligations under the first
three sentences of this Section 7.4. The provisions of this Section 7.4 may not be modified, amended, or deleted without the prior written
consent of the Representative.

  

8. Concerning
the Warrant Agent and Other Matters.

 

8.1. Payment
of Taxes. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Warrant
Agent in respect of the issuance or delivery of shares of Common Stock upon the exercise of Warrants, but the Company shall not be obligated
to pay any transfer taxes in respect of the Warrants or such shares of Common Stock.

 

8.2. Resignation,
Consolidation, or Merger of Warrant Agent.

 

8.2.1. Appointment
of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the office
of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor
Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of thirty (30) days
after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder of the Warrant (who shall,
with such notice, submit his Warrant for inspection by the Company), then the holder of any Warrant may apply to the Supreme Court of
the State of New York for the County of New York for the appointment of a successor Warrant Agent at the Company’s cost. Any successor
Warrant Agent, whether appointed by the Company or by such court, shall be a corporation organized and existing under the laws of the
State of New York, in good standing and having its principal office in the Borough of Manhattan, City and State of New York, and authorized
under such laws to exercise corporate trust powers and subject to supervision or examination by federal or state authority. After appointment,
any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor
Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any further act or deed; but if for any reason
it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense of the Company, an instrument
transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon
request of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for
more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties,
and obligations.

 

8.2.2. Notice
of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof to the
predecessor Warrant Agent and the transfer agent for the shares of Common Stock not later than the effective date of any such appointment.

 

    9

    

    

 

8.2.3. Merger
or Consolidation of Warrant Agent. Any corporation into which the Warrant Agent may be merged or with which it may be consolidated
or any corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor Warrant
Agent under this Agreement without any further act.

 

8.3. Fees
and Expenses of Warrant Agent.

 

8.3.1. Remuneration.
The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent hereunder and will reimburse
the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably incur in the execution of its duties hereunder.

 

8.3.2. Further
Assurances. The Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged, and
delivered all such further and other acts, instruments, and assurances as may reasonably be required by the Warrant Agent for the carrying
out or performing of the provisions of this Agreement.

 

8.4. Liability
of Warrant Agent.

 

8.4.1. Reliance
on Company Statement. Whenever in the performance of its duties under this Agreement, the Warrant Agent shall deem it necessary or
desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact
or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established
by a statement signed by the Chief Executive Officer or Chairman of the Board of Directors of the Company and delivered to the Warrant
Agent. The Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant to the provisions
of this Agreement.

 

8.4.2. Indemnity.
The Warrant Agent shall be liable hereunder only for its own fraud, gross negligence, willful misconduct or bad faith. The Company agrees
to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, costs and reasonable counsel
fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement except as a result of the Warrant Agent’s
fraud, gross negligence, willful misconduct, or bad faith.

 

8.4.3. Exclusions.
The Warrant Agent shall have no responsibility with respect to the validity of this Agreement or with respect to the validity or execution
of any Warrant (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition
contained in this Agreement or in any Warrant; nor shall it be responsible to make any adjustments required under the provisions of Section 4
hereof or responsible for the manner, method, or amount of any such adjustment or the ascertaining of the existence of facts that would
require any such adjustment; nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization
or reservation of any shares of Common Stock to be issued pursuant to this Agreement, the Amended and Restated Certificate of Incorporation
of the Company, or any Warrant or as to whether any shares of Common Stock will, when issued, be valid and fully paid and nonassessable.

 

8.5. Acceptance
of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon the terms
and conditions herein set forth and among other things, shall account promptly to the Company with respect to Warrants exercised and concurrently
account for, and pay to the Company, all monies received by the Warrant Agent for the purchase of shares of Common Stock through the exercise
of Warrants.

 

9. Miscellaneous
Provisions.

 

9.1. Successors.
All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the
benefit of their respective successors and assigns.

 

    10

    

    

 

9.2. Notices.
Any notice, statement or demand authorized by this Agreement to be given or made by the Warrant Agent or by the holder of any Warrant
to or on the Company shall be sufficiently given (i) if by email when the email is sent, (ii) if by hand or overnight delivery, when so
delivered, or (iii) if sent by certified mail or private courier service within five (5) days after deposit of such notice, postage
prepaid, addressed (until another address is filed in writing by the Company with the Warrant Agent), as follows:

 

Larkspur Health
Acquisition Corp.

100 Somerset Corporate
Blvd., 2nd Floor

Bridgewater, NJ
08807

Attn: Daniel O’Connor,
Chief Executive Officer

E-mail: danjoc64@gmail.com

 

Any notice, statement
or demand authorized by this Agreement to be given or made by the holder of any Warrant or by the Company to or on the Warrant Agent shall
be sufficiently given (i) if by email, when the email is sent, (ii) if by hand or overnight delivery, when so delivered, or (iii) if sent
by certified mail or private courier service within five days after deposit of such notice, postage prepaid, addressed (until another
address is filed in writing by the Warrant Agent with the Company), as follows:

 

Continental Stock Transfer & Trust
Company

1 State Street

New York, New York 10004

Attn: Compliance Department

  

with a copy in each case to:

 

Manatt, Phelps & Phillips, LLP

695 Town Center Drive

Costa Mesa, CA 92626

Attn: Thomas Poletti, Esq.

E-mail: tpoletti@manatt.com

 

and

McDermott Will & Emery LLP

340 Madison Avenue

New York, NY 10173

Attn: Robert Cohen, Esq.

E-mail: rcohen@mwe.com

 

and

A.G.P./Alliance Global Partners

590 Madison Avenue, 28th Floor

New York, NY 10022

Attn: [_]

E-mail: [_]

 

9.3. Applicable
Law. The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed in all respects by the
laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive
laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against it arising out of or relating in
any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States District Court for
the Southern District of New York. The Company hereby waives any objection that such courts represent an inconvenient forum. Any such
process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return
receipt requested, postage prepaid, addressed to it at the address set forth in Section 9.2 hereof. Such mailing shall be deemed
personal service and shall be legal and binding upon the Company in any action, proceeding or claim.

 

    11

    

    

 

9.4. Persons
Having Rights under this Agreement. Nothing in this Agreement expressed and nothing that may be implied from any of the provisions
hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the
registered holders of the Warrants and, for the purposes of Sections 7.4, 9.4 and 9.8 hereof, the Representative, any right, remedy, or
claim under or by reason of this Warrant Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. The Representative
shall be deemed to be a third-party beneficiary of this Agreement with respect to Sections 7.4, 9.4 and 9.8 hereof. All covenants, conditions,
stipulations, promises, and agreements contained in this Warrant Agreement shall be for the sole and exclusive benefit of the parties
hereto (and the Representative with respect to the Sections 7.4, 9.4 and 9.8 hereof) and their successors and assigns and of the registered
holders of the Warrants.

  

9.5. Examination
of the Warrant Agreement. A copy of this Agreement shall be available at all reasonable times at the office of the Warrant Agent in
the Borough of Manhattan, City and State of New York, for inspection by the registered holder of any Warrant. The Warrant Agent may require
any such holder to submit his Warrant for inspection by it.

 

9.6. Counterparts.
This Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

  

9.7. Effect
of Headings. The section headings herein are for convenience only and are not part of this Agreement and shall not affect the interpretation
thereof.

 

9.8 Amendments.
This Agreement may be amended by the parties hereto without the consent of any registered holder for the purpose of curing any ambiguity,
or of curing, correcting or supplementing any defective provision contained herein or adding or changing any other provisions with respect
to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties deem shall not
adversely affect the interest of the registered holders. All other modifications or amendments, including any amendment to increase the
Warrant Price or shorten the Exercise Period, shall require the written consent or vote of the registered holders of (i) a majority
of the then outstanding Public Warrants if such modification or amendment is being undertaken prior to, or in connection with, the consummation
of a Business Combination or (ii) a majority of the then outstanding Warrants if such modification or amendment is being undertaken
after the consummation of a Business Combination. Notwithstanding the foregoing, the Company may lower the Warrant Price or extend the
duration of the Exercise Period pursuant to Sections 3.1 and 3.2, respectively, without the consent of the registered holders. The provisions
of this Section 9.8 may not be modified, amended or deleted without the prior written consent of the Representative.

 

9.9 Trust
Account Waiver. The Warrant Agent acknowledges and agrees that it shall not make any claims or proceed against the trust account established
by the Company in connection with the Public Offering (as more fully described in the Registration Statement) (“Trust Account”),
including by way of set-off, and shall not be entitled to any funds in the Trust Account under any circumstance. In the event
that the Warrant Agent has a claim against the Company under this Agreement, the Warrant Agent will pursue such claim solely against the
Company and not against the property held in the Trust Account.

 

9.10 Severability.
This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the
validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable
term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to
such invalid or unenforceable provision as may be possible and be valid and enforceable.

  

[Signature page follows]

 

    12

    

    

 

IN WITNESS WHEREOF, this
Agreement has been duly executed by the parties hereto as of the day and year first above written.

  

	 	LARKSPUR HEALTH ACQUISITION CORP. 
	 	 	 
	 	By:	 
	 	 	Name: Daniel J. O’Connor
	 	 	Title: Chief Executive Officer
	 	 
	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY
	 	 	 
	 	By:	 
	 	 	Name: 
	 	 	Title: 

 

[Signature Page to Warrant Agreement]

 

     

    

    

 

EXHIBIT A

 

WARRANT CERTIFICATE

 

     

    

    

 

EXHIBIT B

 

LEGEND FOR PRIVATE PLACEMENT WARRANTS

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR AN
EXEMPTION FROM REGISTRATION IS AVAILABLE. IN ADDITION, SUBJECT TO ANY ADDITIONAL LIMITATIONS ON TRANSFER DESCRIBED IN THE LETTER AGREEMENT
BY AND AMONG LARKSPUR HEALTH ACQUISITION CORP. (THE “COMPANY”), LARKSPUR HEALTH LLC, A.G.P./ALLIANCE GLOBAL
PARTNERS AND THE OTHER PARTIES THERETO, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD OR TRANSFERRED PRIOR TO THE DATE
THAT IS THIRTY (30) DAYS AFTER THE DATE UPON WHICH THE COMPANY COMPLETES ITS INITIAL BUSINESS COMBINATION (AS DEFINED IN SECTION 3 OF
THE WARRANT AGREEMENT REFERRED TO HEREIN) EXCEPT TO A PERMITTED TRANSFEREE (AS DEFINED IN SECTION 5.6 OF THE WARRANT AGREEMENT) WHO AGREES
IN WRITING WITH THE COMPANY TO BE SUBJECT TO SUCH TRANSFER PROVISIONS.

 

SECURITIES EVIDENCED BY THIS CERTIFICATE AND SHARES
OF COMMON STOCK OF THE COMPANY ISSUED UPON EXERCISE OF SUCH SECURITIES SHALL BE ENTITLED TO REGISTRATION RIGHTS UNDER A REGISTRATION RIGHTS
AGREEMENT TO BE EXECUTED BY THE COMPANY.

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