Document:

Exhibit 10.3 AR Security Agreement

Exhibit 10.3
SECOND AMENDED AND RESTATED GENERAL SECURITY AGREEMENT
This SECOND AMENDED AND RESTATED GENERAL SECURITY AGREEMENT, dated as of May 4, 2015 (the “Agreement”), is made among TRIANGLE CAPITAL CORPORATION, a Maryland corporation (the “Borrower”), ARC INDUSTRIES HOLDINGS, INC., a Delaware corporation, BRANTLEY HOLDINGS, INC., a Delaware corporation, ENERGY HARDWARE HOLDINGS, INC., a Delaware corporation, MINCO HOLDINGS, INC., a Delaware corporation, PEADEN HOLDINGS, INC., a Delaware corporation, TECHNOLOGY CROPS HOLDINGS, INC., a Delaware corporation (collectively, the “Guarantor-Grantors”, and the Borrower and the Guarantor-Grantors being collectively called the “Grantors”) and BRANCH BANKING AND TRUST COMPANY (“BB&T”), acting as agent (in such capacity, the “Administrative Agent”) for itself and for the other Secured Parties as defined herein.
W I T N E S S E T H :
RECITALS:
WHEREAS, the Administrative Agent, the Multicurrency Agent (as defined in the Credit Agreement defined below) and the Lenders (as defined in the Credit Agreement defined below) have agreed to extend credit to Borrower pursuant to the terms of that certain Third Amended and Restated Credit Agreement of even date herewith, among the Grantors, the Administrative Agent, ING Capital LLC, as the Multicurrency Agent, and the Lenders signatory thereto (as amended, restated, or otherwise modified from time to time, the “Credit Agreement”), which amends and restates the Second Amended and Restated Credit Agreement dated as of June 26, 2013 by and among the Borrower, the Administrative Agent, and the Lenders identified therein (the “Existing Credit Agreement”);
WHEREAS, the Borrower may from time to time enter into or guarantee one or more Hedge Transactions (as defined in the Credit Agreement) with the Hedge Counterparties (as defined in the Credit Agreement); 
WHEREAS, the Grantors have previously entered into an Amended and Restated General Security Agreement, dated as of June 26, 2013 (as amended, the “Existing Security Agreement”) and the parties thereto wish to amend and restate the Existing Security Agreement on the terms set forth herein;
WHEREAS, each of the Guarantors (as defined in the Credit Agreement) has agreed to guarantee, among other things, all the obligations of the Borrower under the Credit Agreement and the other Loan Documents (as defined in the Credit Agreement); and
WHEREAS, the obligations of the Administrative Agent and the Lenders to extend credit under the Credit Agreement and the other Loan Documents are conditioned upon, among other things, the execution and delivery by the Grantors of a security agreement in the form hereof to secure (a) the due and punctual payment by the Borrower of: (i) the principal of and interest on the Notes (including any and all Revolver Advances, Multicurrency Advances and Swing Advances), 

when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise and any renewals, modifications or extensions thereof, in whole or in part; (ii) each payment required to be made by the Borrower under the Credit Agreement, when and as due, including payments in respect of reimbursement of disbursements, interest thereon, and obligations, if any, to provide cash collateral and any renewals, modifications or extensions thereof, in whole or in part; and (iii) all other monetary obligations of the Borrower to the Secured Parties under the Credit Agreement and the other Loan Documents to which the Borrower is or is to be a party and any renewals, modifications or extensions thereof, in whole or in part; (b) the due and punctual performance of all other obligations of the Borrower under the Credit Agreement and the other Loan Documents to which the Borrower is or is to be a party, and any renewals, modifications or extensions thereof, in whole or in part; (c) the due and punctual payment (whether at the stated maturity, by acceleration or otherwise) of all obligations (including any and all Hedging Obligations (as defined in the Credit Agreement) arising under Hedging Agreements and obligations which, but for the automatic stay under Section 362(a) of the Bankruptcy Code, would become due), indebtedness and liabilities of the Borrower, now existing or hereafter incurred under, arising out of or in connection with any and all Hedging Agreements and any renewals, modifications or extensions thereof (including, all obligations, if any, of the Borrower as guarantor under the Credit Agreement in respect of Hedging Agreements), and the due and punctual performance and compliance by the Borrower with all of the terms, conditions and agreements contained in any Hedging Agreement and any renewals, modifications or extensions thereof; (d) the due and punctual payment and performance of all indebtedness, liabilities and obligations of any one or more of the Borrower and Guarantors arising out of or relating to any Bank Products; (e) the due and punctual payment and performance of all indebtedness, liabilities and obligations of any one or more of the Borrower and Guarantors arising out of or relating to any Cash Management Services; and (f) the due and punctual payment and performance of all obligations of each of the Guarantors under the Credit Agreement and the other Loan Documents to which they are or are to be a party and any and all renewals, modifications or extensions thereof, in whole or in part; provided, that the foregoing with respect to any Guarantor shall exclude, in all cases, any Excluded Swap Obligations (as defined in the Credit Agreement) of such Guarantor (all the foregoing indebtedness, liabilities and obligations being collectively called the “Obligations”).
NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Grantors and the Administrative Agent, the parties agree as follows:
1.    Definitions.  As herein used, the following terms shall have the following meanings:
(a)    “Account Debtor” means any Person who is or may become obligated to a Grantor under, with respect to or on account of an Account or any Supporting Obligation related thereto.
(b)    “Account” means any and all accounts (as that term is defined in the U.C.C.) of any Grantor and includes, without limitation, all obligations of every kind at any time owing to any Grantor, all contract rights, health care insurance receivables and any and all rights of any Grantor to payment for goods sold or leased or for services rendered whether due or to become due, 

whether or not earned by performance and whether now existing or arising in the future, including, without limitation, Accounts from Affiliates of the Grantors.
(c)    “Accounts Receivable Collateral” shall mean all obligations of every kind at any time owing to Borrower or any Guarantor howsoever evidenced or incurred, whether or not earned by performance, including, without limitation, all accounts, instruments, notes, drafts, acceptances, leases, open accounts, contract rights, chattel paper (whether tangible or electronic) and general intangibles, all returned or repossessed goods and all books, records, computer tapes, programs and ledger books arising therefrom or relating thereto, whether now owned or hereafter acquired or arising and all proceeds of the foregoing.
(d)    “Chattel Paper” means any and all chattel paper (as that term is defined in the U.C.C.), whether tangible or electronic, of any Grantor.
(e)    “Collateral” means (i) all Accounts, General Intangibles, Documents, Chattel Paper and Instruments now existing or hereafter arising of each Grantor; (ii) all guarantees of each Grantor’s existing and future Accounts, General Intangibles, Chattel Paper and Instruments and all other security held by any Grantor for the payment and satisfaction thereof; (iii) all Inventory now owned or hereafter acquired by any Grantor; (iv) all Equipment now owned or hereafter acquired of each Grantor; (v) all Intercompany Claims now existing or hereafter arising; (vi) any and all now owned or hereafter acquired or arising Deposit Accounts, Investment Related Property, Letter of Credit Rights, Goods (as that term is defined in the U.C.C.), Commercial Tort Claims and Supporting Obligations; (vii) all books and records of the Grantors (including, without limitation, computer records, tapes, discs and programs and all other media, written, electric, magnetic or otherwise, containing such records) which relate to the Grantor’s Inventory, Equipment, Accounts, Deposit Accounts, Investment Related Property, Letter of Credit Rights, Goods, Supporting Obligations, General Intangibles, Chattel Paper and Instruments or guarantees thereof; (viii) all insurance on all of the foregoing and the proceeds of that insurance; and (ix) all cash and noncash proceeds and products of all of the foregoing and the proceeds and products of other proceeds and products. 
(f)    “Collateral Locations” shall have the meaning assigned in Section 6 hereof.
(g)    “Commercial Tort Claims” shall mean all commercial tort claims as defined in the U.C.C., including, without limitation, all commercial tort claims listed on Schedule III (as such schedule may be amended or supplemented from time to time).
(h)    “Commodities Accounts” (i) shall mean all commodity accounts as defined in Article 9 of the U.C.C. and (ii) shall include, without limitation, all of the accounts listed on Schedule II under the heading “Commodities Accounts” (as such schedule may be amended or supplemented from time to time).
(i)    “Credit Documents” means the Credit Agreement, the Notes, the Collateral Documents and all other Loan Documents.
(j)    “Deposit Account” means all deposit accounts (as that term is defined in the U.C.C.) of any Grantor, including without limitation, (i) any and all moneys, sums and amounts 

now or hereafter on deposit with any Secured Party or otherwise to the credit of or belonging to any Grantor and (ii) all of the accounts listed on Schedule II under the heading “Deposit Accounts” (as such schedule may be amended or supplemented from time to time).
(k)    “Documents” means any and all documents (as that term is defined in the U.C.C.) of any Grantor.
(l)    “Equipment” means any and all equipment (as that term is defined in the U.C.C.) of any Grantor and shall include, without limitation, all equipment, machinery, appliances, tools, motor vehicles, furniture, furnishings, floor samples, office equipment and supplies, and tangible personal property, whether or not the same are or may become fixtures, used or bought for use primarily in the business of any Grantor or leased by any Grantor  to or from others, of every nature, presently existing or hereafter acquired or created, wherever located, additions, accessories and improvements thereto and substitutions therefor and all parts which may be attached to or which are necessary for the operation and use of such personal property or fixtures, whether or not the same shall be deemed to be affixed to real property, all manufacturer’s warranties therefor, all parts and tools therefor, and all rights under or arising out of present or future contracts relating to the foregoing.  All equipment is and shall remain personal property irrespective of its use or manner of attachment to real property.
(m)     “Excluded Capital Securities” means, collectively, (A) any outstanding Capital Securities (as defined in the Credit Agreement) issued by any of the SBIC Entities (as defined in the Credit Agreement) and (B) any outstanding Capital Securities of a Foreign Subsidiary in excess of 65% of the voting power of all classes of Capital Securities of such Foreign Subsidiary entitled to vote (other than any outstanding non-voting Capital Securities of such classes of Capital Securities of such Foreign Subsidiary).
(n)    “Executive Office” shall have the meaning assigned to it in Section 6(d).
(o)    “General Intangibles” means all general intangibles (as that term is defined in the U.C.C.) of any Grantor (including, without limitation, all payment intangibles (as that term is defined in the U.C.C.) and software, company records (paper and electronic), correspondence, credit files, records and other documents, computer programs, computer software, computer tapes and cards and other paper and documents in the possession or control of any Grantor or in the possession or control of any affiliate or computer service bureau, and all contract rights (including, without limitation, rights under any Hedging Transaction), claims, choses in action, bank balances, judgments, rights as lessee under any and all leases of personal property, rights and/or claims to tax refunds and other claims and rights to monies or property, warranties, patents, patent applications, trademarks, trade names, trade secrets, formulas, licensing agreements, royalty payments, copyrights, service names, customer lists, service marks, logos, goodwill, intellectual property and deposit accounts, and all other general intangibles of every kind, type or description).
(p)    “Instruments” means all instruments (as that term is defined in the U.C.C.) of any Grantor, including without limitation, checks, notes, certificated certificates of deposit, investment securities, negotiable instruments and writings evidencing a right to the payment of 

money of a type transferred in the ordinary course of business by delivery with any necessary instrument or assignment.
(q)    “Intercompany Claims” shall mean any and all rights of any Grantor in respect of loans, advances or other claims owed to such Grantor by the Borrower, Guarantors or any Subsidiary of Borrower or any Guarantor.
(r)    “Inventory” means any and all inventory (as that term is defined in the U.C.C.) of any Grantor and shall include, without limitation, tangible personal property held for sale or lease or to be furnished under contracts of service, tangible personal property which any such Grantor has so leased or furnished, and raw materials, work in process and materials used, produced or consumed in such Grantor’s business, and shall include tangible personal property returned to any such Grantor by a purchaser or lessor thereof following the sale or lease thereof by any such Grantor.
(s)    “Inventory Collateral” shall mean all inventory of the Borrower and Guarantors, or in which the Borrower or Guarantors have rights, whether now owned or hereafter acquired, wherever located, including, without limitation, all goods of the Borrower and Guarantors held for sale or lease or furnished or to be furnished under contracts of service, all goods held for display or demonstration, goods on lease or consignment, returned and repossessed goods, all raw materials, work-in-process, finished goods and supplies used or consumed in the business of Borrower or any Guarantor, together with all documents, documents of title, dock warrants, dock receipts, warehouse receipts, bills of lading or orders for the delivery of all, or any portion, of the foregoing.
(t)    “Investment Accounts” shall mean the Securities Accounts, Commodities Accounts and Deposit Accounts.
(u)    “Investment Related Property” means (i) any and all investment property (as that term is defined in the U.C.C.) of any Grantor, including without limitation, any and all securities, whether certificated or uncertificated, Security Entitlements, Securities Accounts, Commodity Contracts and Commodity Accounts and (ii) all of the following (regardless of whether classified as investment property under the U.C.C.):  all (w) Pledged Equity Interests, (x) Pledged Debt, (y) the Investment Accounts and (z) Certificates of Deposit.
(v)    “Letter of Credit Rights” means any and all letter of credit rights (as that term is defined in the U.C.C.).
(w)    “Obligations” has the meaning set forth in the Recitals.
(x)    “Permitted Liens” shall have the meaning given such term in Section 6(b) hereof.
(y)    “Person” means an individual, a corporation, a limited liability company, a government or governmental subdivision or agency or instrumentality, a business trust, an estate, a trust, a partnership, a cooperative, an association, two or more Persons having a joint or common interest or any other legal or commercial entity.

(z)    “Pledged Debt” shall mean all indebtedness for borrowed money owed to a Grantor, whether or not evidenced by any instrument or promissory note, including, without limitation, all indebtedness described on Schedule II under the heading “Pledged Debt” (as such schedule may be amended or supplemented from time to time), all monetary obligations owing to any Grantor from any other Grantor (including Intercompany Claims), the instruments evidencing any of the foregoing, and all interest, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the foregoing.
(aa)    “Pledged Equity Interests” shall mean all shares of and interests in Capital Securities owned by a Grantor, including, without limitation, all shares of and interests in Capital Securities described on Schedule II under the heading “Pledged Equity Interests” (as such schedule may be amended or supplemented from time to time), and the certificates, if any, representing such shares and any interest of such Grantor in the entries on the books of the issuer of such shares or interests or on the books of any securities intermediary pertaining to such shares or interests, and all dividends, distributions, cash, warrants, rights, options, instruments, securities and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares or interests and any other warrant, right or option to acquire any of the foregoing, but excluding the Excluded Equity Interests (as defined in the Pledge Agreement).
(bb)    “Proceeds” means any and all proceeds (as that term is defined in the U.C.C.), including without limitation, whatever is received when Collateral is sold, exchanged, collected or otherwise disposed of.
(cc)    “Representation Date” means each of (i) the Closing Date and (ii) each Reporting Date.  As used in this definition, “Reporting Date” shall mean the date of delivery of any amendment or supplement to the Schedules hereto in accordance with the terms of this Agreement, which delivery shall occur not less frequently than each Fiscal Quarter and shall occur promptly following the end of each Fiscal Quarter, and in any event within 50 days following the end of each Fiscal Quarter and 90 days following the end of each Fiscal Year.  
(dd)    “Secured Parties” shall have the meaning set forth in the Credit Agreement. 
(ee)    “Securities Accounts” shall mean all securities accounts as defined in Article 8 of the U.C.C. and (ii) shall include, without limitation, all of the accounts listed on Schedule II under the heading “Securities Accounts” (as such schedule may be amended or supplemented from time to time).
(ff)    “Supporting Obligations” means any and all supporting obligations (as that term is defined in the U.C.C.).
(gg)    “U.C.C.” means the Uniform Commercial Code as in effect in the State of North Carolina or, when the context relates to perfection or priority of a security interest, the Uniform Commercial Code as in effect from time to time in any other applicable jurisdiction.

Terms used herein and not otherwise defined herein shall have the meanings set forth in the Credit Agreement or, if not defined therein, the U.C.C.  The rules of interpretation specified in Section 9.16 of the Credit Agreement shall be applicable to this Agreement and the provisions of Section 1.04 of the Credit Agreement shall apply to this Agreement as if such provisions were specifically set forth herein mutatis mutandis.
2.    Security Interest.  In consideration of and in order to secure the fulfillment, satisfaction, payment and performance of all of the Obligations, each Grantor hereby assigns, pledges, hypothecates and sets over to the Administrative Agent, its successors and its assigns, for the benefit of the Secured Parties, and grants to the Administrative Agent, its successors and its assigns, for the benefit of the Secured Parties, a secu-rity interest in all of the Collateral.  Notwithstanding anything herein to the contrary, Collateral shall not include, and the security interest herein shall not attach to, (x) the Excluded Equity Interests (as defined in the Pledge Agreement), (y) the Excluded Capital Securities, or (z) any property rights in Capital Securities (other than Capital Securities issued by any Subsidiary), or any Operating Documents of any issuer of such Capital Securities to which a Grantor is a party, or any of its rights or interests thereunder, if the grant of such security interest shall constitute or result in (i) the abandonment, invalidation or unenforceability of any right, title or interest of the Grantor therein or (ii) in a breach or termination pursuant to the terms of, or a default under, any such property rights or Operating Documents (other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provisions) of any relevant jurisdiction or any other Applicable Law (including the Bankruptcy Code) or principals of equity).
3.    Care of Collateral. The Grantors have the risk of loss of the Collateral.  The Administrative Agent shall have no duty of care with respect to the Collateral, except that the Administrative Agent shall exercise reasonable care with respect to Collateral in its custody, but shall be deemed to have exercised reasonable care if such property is accorded treatment substantially equal to that which the Administrative Agent accords its own property, or if the Administrative Agent takes such action with respect to the Collateral as a Grantor shall request in writing, but no failure to comply with any such request nor any omission to do any such act requested by a Grantor shall be deemed a failure to exercise reasonable care, nor shall the Administrative Agent’s failure to take steps to collect any income accruing on the Collateral or to pre-serve rights against any parties or property be deemed a failure to have exercised reasonable care with respect to Collateral in its custody, except in the event of Administrative Agent’s gross negligence or willful misconduct as determined by a final and nonappealable judgment of a court of competent jurisdiction.  The rights and security interest herein provided are granted as security only and shall not subject the Administrative Agent or any Secured Party to, or in any way alter or modify, any obligation or liability of any Grantor with respect to or arising out of any of the Collateral.
4.    Set-Off. In addition to the rights and security interest elsewhere herein set forth, the Administrative Agent may, at its option at any time(s) after the occurrence of an Event of Default (and the expiration of any cure period related thereto) and during the continuation thereof, and with notice to any Grantor of such action, appropriate and apply to the payment or reduc-tion, either in whole or in part, of the amount owing on any one or more of the Obliga-tions, whether or not then due, any and all moneys now or here-after on deposit in a Deposit Account maintained with the 

Administrative Agent or otherwise to the credit of or belonging to a Grantor in such deposit account, it being understood and agreed that the Administrative Agent shall not be obligated to assert or enforce any rights or secu-rity interest here-under or to take any action in reference thereto, and that the Administrative Agent may in its dis-cretion at any time(s) relinquish its rights as to par-ticular Collateral here-under without thereby affecting or invalidating the Administrative Agent’s rights here-under as to all or any other Collateral hereinbefore referred to, provided, however, that failure to provide such notice to such Grantor shall in no way affect the rights of the Lenders.
5.    Collection of Accounts and Pledged Debt; Interest and other Amounts Payable.
(a)    Upon occurrence of an Event of Default (and the expiration of any cure period related thereto) and during the continuation thereof, the Administrative Agent shall have the right at any time:
(i)    to collect the Accounts and Pledged Debt, to sell, assign, compromise, discharge or extend the time for payment of any Account or Pledged Debt, to accelerate any Pledged Debt that may be accelerated in accordance with its terms, to institute legal action for the collection of any Account or Pledged Debt, and to do all acts and things necessary or incidental thereto, in each case acting if it so chooses in the name of any or all of the Grantors, and the Grantors hereby ratify all such acts; 
(ii)    with notice to any Grantor, to notify the parties obligated on any of the Collateral of the security interest in favor of the Administrative Agent created hereby and to direct all such Persons to make payments of all amounts due thereon or thereunder directly to the Administrative Agent or to an account designated by the Administrative Agent, provided, however, that failure to provide such notice to the such Grantor shall in no way affect the rights of the Lenders;
(iii)    request that the Grantors notify Account Debtors and/or obligors under Pledged Debt and indicate on all billings that payments thereon are to be made to the Administrative Agent, and the Grantors hereby agrees to make such notification and such indication on billings if so requested.  In the event Account Debtors and/or obligors under Pledged Debt are so notified, no Grantor shall compromise, discharge, extend the time for payment or otherwise grant any indulgence or allowance with respect to any Account or Pledged Debt without the prior written consent of the Administrative Agent.
(b)    Each Grantor hereby irrevocably designates and appoints the Administrative Agent its true and lawful attorney either in the name of the Administrative Agent or in the name of such Grantor, effective after the occurrence of an Event of Default (and the expiration of any cure period related thereto) and during the continuation thereof for the limited purpose of the following: to ask for, demand, sue for, collect, compromise, compound, receive, receipt for and give acquittances for any and all sums owing or which may become due upon any items of the Collateral and, in connection therewith, to take any and all actions as the Administrative Agent may deem necessary or desirable in order to realize upon the Collateral, including, without limitation, power to endorse in the name of such Grantor, any checks, drafts, notes or other instruments received in payment of or on account of the Collateral, but the Administrative Agent shall not be under any 

duty to exercise any such authority or power or in any way be responsible for the collection of the any Collateral. 
(c)    All interest, income, principal, other amounts and Proceeds (including wire transfers, checks and other instruments) that are received by any Grantor in violation of the provisions of clause (a) shall be received in trust for the benefit of the Administrative Agent, shall be segregated from other property or funds of the Grantors and shall be forthwith deposited into such account or paid over or delivered to the Administrative Agent in the same form as so received (with any necessary endorsements or assignments) to be held as Collateral and applied to the Obligations as provided herein.  The rights set forth in this Section 5 are supplementary and in addition to (and not in limitation of) the rights granted to the Administrative Agent and/or the Secured Parties in the Credit Documents.
6.    Representations, Warranties and Covenants as to Collateral.
Each Grantor represents, warrants and covenants to and for the benefit of the Administrative Agent and the Secured Parties, on the date of this Agreement and on each date a Borrowing is made or deemed made, that:
(a)    Sale of Collateral.  Upon the sale, exchange or other disposition of the Inventory Collateral, the security interest and lien created and provided for herein, without break in continuity and without further formality or act, shall continue in and attach to any proceeds thereof, including, without limitation, accounts, chattel paper, contract rights, shipping documents, documents of title, bills of lading, warehouse receipts, dock warrants, dock receipts and cash or non-cash proceeds, and in the event of any unauthorized sale, shall continue in the Inventory Collateral itself.
(b)    Good Title; No Existing Encumbrances.  The Grantors owns their items of  Collateral free and clear of any prior Lien other than Liens permitted by Section 5.14 of the Credit Agreement (referred to herein as the “Permitted Liens”), and no financing statements or other evidences of the grant of a security interest respecting the Collateral exist on the public records other than with respect to Permitted Liens.
(c)    Right to Grant Security Interest; No Further Encumbrances.  The Grantors have the right to grant a security interest in the Collateral.  Except as permitted by the Credit Agreement, the Grantors will pay all taxes and other charges against the Collateral (including, without limitation, property, use and sales taxes). No Grantor will acquire, use and will take commercially reasonable efforts not to permit any Collateral to be used illegally or in violation of Applicable Laws or allow the Collateral to be encumbered except for Permitted Liens.
(d)    Location of Collateral.  The Grantors hereby represent and warrant to the Administrative Agent and the Lenders that, as of the date hereof, the Collateral is situated only at the collateral locations listed in Schedule I hereto (the “Collateral Locations”), and the Grantors covenant with the Administrative Agent not to locate the Collateral at any location other than a Collateral Location without at least 10 days prior written notice to the Administrative Agent.  The executive office of each Grantor set forth on Schedule I hereto (the “Executive Office”) is, and for 

the one-year period preceding the Closing Date has been, such Grantor’s chief executive office (if such Grantor has more than one place of business) or place of business (if such Grantor has one place of business).  In addition, to the extent the Grantors should warehouse any of the Inventory Collateral, the Grantors acknowledge and agree that such warehousing may be conducted only by warehousemen who shall:  (1) issue non-negotiable warehouse receipts in the Administrative Agent’s name to evidence any such warehousing of goods constituting Inventory Collateral; or (2) issue electronic warehouse receipts in the Administrative Agent’s name to evidence any such warehousing of goods constituting Inventory Collateral in compliance with applicable federal regulations and in all other respects satisfactory to the Administrative Agent in its sole discretion.  If any Grantor consigns any of the Inventory Collateral, it will comply with the U.C.C. of any state where such Inventory Collateral is located with respect thereto, and shall file, cause the filing and hereby authorizes the Administrative Agent to file in the appropriate public office or offices UCC-1 financing statements showing such Grantor or Grantors as consignor and the Administrative Agent as assignee of consignor, and will furnish copies thereof to the Administrative Agent.  If any of the Inventory Collateral or Equipment Collateral or any records concerning the Collateral are at any time to be located on premises leased by a Grantor or on premises owned by a Grantor subject to a mortgage or other lien, such Grantor shall so notify the Administrative Agent and shall if reasonably requested by the Administrative Agent obtain and deliver or cause to be delivered to the Administrative Agent, an agreement, in form and substance satisfactory to the Administrative Agent, waiving the landlord’s or mortgagee’s or lienholder’s right to enforce any claim against the Grantors for monies due under the landlord’s lien, mortgage or other lien by levy or distraint or other similar proceedings against the Inventory Collateral or Equipment Collateral or records concerning the Collateral and assuring the Administrative Agent’s ability to have access to the Inventory Collateral or Equipment Collateral and records concerning the Collateral in order to exercise its right hereunder to take possession thereof.  
(e)    Collateral Status.  The Grantors will promptly notify the Administrative Agent if there is any adverse change in the status of the Collateral that would reasonably be expected to have a Material Adverse Effect or that would materially and adversely affect the ability of any Grantor or the Administrative Agent to dispose of the Collateral or any material portion thereof, or the rights and remedies of the Administrative Agent in relation thereto, including, without limitation, the levy of any legal process against the Collateral or any material portion thereof. 
(f)    Delivery of Certain Collateral.  Upon the reasonable request of the Administrative Agent, the Grantors shall deliver to the Administrative Agent (or to the Collateral Custodian as its agent and bailee), all agreements, letters of credit, promissory notes, instruments, certificates of deposit, chattel paper or anything else, the physical possession of which is necessary in order for the Administrative Agent, on behalf of the Secured Parties, to perfect or preserve the priority of its security interest therein.  Without limiting the generality of the foregoing, with respect to any Investment Related Property that is represented by a certificate or that is an “instrument” (other than any Investment Related Property credited to a Securities Account), each Grantor shall cause such certificate or instrument to be delivered to the Administrative Agent (or to the Collateral Custodian as its agent and bailee), indorsed in blank by an “effective indorsement” (as defined in Section 8-107 of the U.C.C.), regardless of whether such certificate constitutes a “certificated security” for purposes of the U.C.C.

(g)    Records Respecting Collateral.  The Grantors shall keep complete and accurate books and records and make all necessary entries thereon to reflect the transactions and facts giving rise to the Collateral and payments, credits and adjustments applicable thereto, all in accordance with GAAP.  All books and records of the Grantors with respect to the Collateral will be accessible from the Executive Office (as it may be changed pursuant to Section 6(e)).
(h)    Further Assurances.  Each Grantor shall duly execute and/or deliver (or cause to be duly executed and/or delivered) to the Administrative Agent (or to the Collateral Custodian as its agent and bailee) any instrument, invoice, document, document of title, dock warrant, dock receipt, warehouse receipt, bill of lading, order, financing statement, assignment, waiver, consent or other writing reasonably requested by the Administrative Agent which may be reasonably necessary to the Administrative Agent to carry out the terms of this Agreement and any of the other Loan Documents and to perfect its security interest in and facilitate the collection of the Collateral, the proceeds thereof, and any other property at any time constituting security to the Secured Parties.  Each Grantor shall perform or cause to be performed such acts as the Administrative Agent or any Secured Party may reasonably request to establish and maintain for the Administrative Agent and the Secured Parties a valid and perfected security interest in and security title to the Collateral, free and clear of any Liens other than Permitted Liens.
(i)    Maintenance of Insurance.  In addition to and cumulative with any other requirements herein imposed on the Grantors with respect to insurance, the Grantors shall maintain, or cause to be maintained, insurance as required under the Credit Agreement.  The Grantors shall deliver to the Administrative Agent at such times as the Administrative Agent may request in writing, a detailed list of such insurance then in effect stating the names of the insurance companies, the amounts and rates of insurance, the date of expiration thereof, the properties and risks covered thereby and the insured with respect thereto.  The Grantors will pay all premiums on the insurance referred to herein as and when they become due and shall do all things necessary to maintain the insurance in effect.  If any Grantor shall default in its obligation hereunder to insure the Collateral in a manner reasonably satisfactory to the Administrative Agent, then the Administrative Agent shall have the right (but not the obligation), after reasonable notice to such Grantor, to procure such insurance and to charge the costs of same to the Grantors, which costs shall be added to and become a part of the unpaid principal amount of the Obligations and shall be secured by the Collateral.  Each Grantor hereby appoints (which appointment constitutes a power coupled with an interest and is irrevocable as long as any of the Obligations remain outstanding) Administrative Agent as its lawful attorney-in-fact, effective after the occurrence of an Event of Default (and the expiration of any cure period related thereto) and during the continuation thereof, with full authority to make, adjust, settle claims under and/or cancel such insurance and to endorse the Grantor’s name on any instruments or drafts issued by or upon any insurance companies.
(j)    Fundamental Changes.  The Grantors hereby agrees that it  shall not move its Executive Office, or change its name, identity, state of incorporation or organization, type of organization or its structure to other than as existing on the date hereof, unless the Grantors shall have (i) notified the Administrative Agent in writing at least 20 days prior thereto and provided such other information as the Administrative Agent may reasonably request and (ii) taken all actions 

necessary or reasonably requested by the Administrative Agent to maintain the continuous validity, perfection and the same or better priority of the Administrative Agent’s Liens.
(k)    Name, Jurisdiction and Identification Number of Organization.  The exact legal name of each Grantor, the state of incorporation or organization and organizational identification number for each Grantor is as set forth below:
	
					
	 
	Triangle Capital Corporation
	Maryland
	D11541372
	 

	 
	ARC Industries Holdings, Inc.
	Delaware
	4471028
	 

	 
	Brantley Holdings, Inc.
	Delaware
	4464504
	 

	 
	Energy Hardware Holdings, Inc.
	Delaware
	4471862
	 

	 
	Minco Holdings, Inc.
	Delaware
	4825270
	 

	 
	Peaden Holdings, Inc.
	Delaware
	4635150
	 

	 
	Technology Crops Holdings, Inc.
	Delaware
	4732965
	 

Each Grantor was duly organized solely under the laws of such jurisdiction and, except as provided on Schedule I, such Grantor has not changed its legal name, jurisdiction of organization or its corporate structure in the five (5) years prior to the Closing Date. 
(l)    Control Agreements.  Each Grantor will obtain and deliver or cause to be delivered to the Administrative Agent, a control agreement in form and substance satisfactory to Administrative Agent and such Grantor with respect to the Collateral with respect to:  (i) Deposit Accounts; (ii) Investment Related Property (for Securities Accounts, mutual funds and other uncertificated securities); and (iii) Letter of Credit Rights; and/or Electronic chattel paper having, individually, a value in excess of $500,000 or as otherwise requested by the Administrative Agent; provided that, in each case, no such Collateral shall be included in calculating the Borrowing Base unless the same is subject to a control agreement.  
(m)    Marking of Chattel Paper.  If requested by the Administrative Agent, no Grantor will create any Chattel Paper without placing a legend on the Chattel Paper reasonably acceptable to the Administrative Agent indicating that the Administrative Agent has a security interest in the Chattel Paper.
(n)    Business Purpose.  None of the Obligations is a Consumer Transaction, as defined in the U.C.C., and none of the Collateral has been or will be purchased or held primarily for personal, family or household purposes.
(o)    Assumed Debt.  No Grantor has within the last five (5) years become bound (whether as a result of merger or otherwise) as debtor under a security agreement entered into by another Person, which has not been terminated prior to the date of this Agreement. 
(p)    No Authorizations.  No authorization, approval or other action by, and no notice to or filing with, any Governmental Authority or regulatory body is required for either (i) the pledge or grant by any Grantor of the security interest purported to be created in favor of the Administrative Agent hereunder or (ii) the exercise by the Administrative Agent of any rights or remedies in respect of any Collateral (whether specifically granted or created hereunder or created 

or provided for by applicable law), except as may be required, in connection with the disposition of any Investment Related Property, by laws generally affecting the offering and sale of Securities.
(q)    Preservation.  No Grantor shall take or permit any action which could materially impair the Administrative Agent’s rights in the Collateral, subject to Grantors’ rights to dispose of rights in the Collateral to the extent permitted hereunder or under the Credit Agreement or the right to grant Permitted Liens.  Each Grantor agrees that it will, at its own cost and expense, take any and all actions necessary to warrant and defend the right, title and interest of the Secured Parties in and to the Collateral against the claims and demands of all other Persons (other than the holders of Permitted Liens).
(r)    Pledged Debt.  On each Representation Date, Schedule II hereto (as such schedule may be amended or supplemented from time to time) sets forth under the heading “Pledged Debt” all of the Pledged Debt owned by any Grantor and all of such Pledged Debt with a principal amount in excess of $500,000 individually has been fully authorized, authenticated or issued, and delivered and is the legal, valid and binding obligation of the issuers thereof and is not in default and constitutes all of the issued and outstanding intercompany indebtedness evidenced by an instrument or certificated security of the respective issuers thereof owing to such Grantor.  

(s)    Investment Accounts.  Schedule II hereto (as such schedule may be amended or supplemented from time to time) sets forth under the headings “Securities Accounts” and “Commodities Accounts,” respectively, all of the Securities Accounts and Commodities Accounts in which each Grantor has an interest.  Each Grantor is the sole entitlement holder of each such Securities Account and Commodities Account, and such Grantor has not consented to, and is not otherwise aware of, any Person (other than the Administrative Agent pursuant hereto) having “control” (within the meaning of Sections 8-106 and 9-106 of the U.C.C.) over, or any other interest in, any such Securities Account or Commodity Account or any securities or other property credited thereto.

(t)    Deposit Accounts.  Schedule II hereto (as such schedule may be amended or supplemented from time to time) sets forth under the heading “Deposit Accounts” all of the Deposit Accounts in which each Grantor has an interest and each Grantor is the sole account holder of each such Deposit Account and such Grantor has not consented to, and is not otherwise aware of, any Person (other than the Administrative Agent pursuant hereto) having either sole dominion and control (within the meaning of Section 9-104 of the U.C.C.) over, or any other interest in, any such Deposit Account or any money or other property deposited therein.
    
(u)    Commercial Tort Claims.  Schedule III (as such schedule may be amended or supplemented from time to time) sets forth all Commercial Tort Claims of each Grantor.

(v)    Letter of Credit Rights.  Schedule III  (as such schedule may be amended or supplemented from time to time) lists all letters of credit to which such Grantor has rights.
    
(w)    After-Acquired Property.  In the event any Grantor acquires rights in any Investment Related Property (other than Pledged Entities (as defined in the Pledge Agreement), 

Commercial Tort Claims or Letter of Credit Rights after the date of this Agreement, it shall deliver to the Administrative Agent a completed Pledge Supplement, substantially in the form of Annex A attached hereto, together with all Supplements to Schedules thereto, reflecting such new Investment Related Property, Commercial Tort Claims, Letter of Credit Rights and all other Investment Related Property, Commercial Tort Claims, Letter of Credit Rights; provided, however, that the Grantors shall only be required to provide an updated Pledge Supplement with respect to Pledged Debt acquired during any Fiscal Quarter on or before the Reporting Date immediately following the end of such Fiscal Quarter.  Notwithstanding the foregoing, it is understood and agreed that the security interest of the Administrative Agent shall attach to all Investment Related Property (other than Excluded Capital Securities), Commercial Tort Claims and Letter of Credit Rights immediately upon any Grantor’s acquisition of rights therein and shall not be affected by the failure of any Grantor to deliver a supplement to Schedule II or Schedule III as required hereby.

7.    Events of Default.  The happening of any one or more of the following events shall constitute an Event of Default hereunder:  (a) the nonpayment when due of any of the Obligations which nonpayment is not fully cured within the applicable grace period therefor, if any; (b) the failure to perform, observe or fulfill any covenant or obligation contained in this Agreement and the continuation of such failure for more than thirty (30) days after the earlier of:  (i) the first day on which any Loan Party has knowledge of such failure; or (ii) written notice thereof has been given to any Grantor by the Administrative Agent or (c) the occurrence of an Event of Default and the expiration of any cure period related thereto (as defined in the Credit Agreement).
8.    Remedies.  Upon the occurrence of an Event of Default (and the expiration of any cure period related thereto) and during the continuation thereof, the Administrative Agent shall have all of the rights and remedies available at law (including, without limitation, those pro-vided to a secured party by the U.C.C.), or in equity to collect, enforce or satisfy any Obligations then owing, whether by acceleration or otherwise.  In addi-tion thereto, each Grantor further agrees that (i) in the event that notice is necessary under appli-cable law, written notice mailed to a Grantor at such Grantor’s address as provided herein, ten (10) business days prior to the date of public sale of any of the Collateral subject to the security interest created herein or prior to the date after which private sale or any other disposition of said Collateral will be made shall constitute reasonable notice, but notice given in any other reason-able manner or at any other time shall be suffi-cient; (ii) in the event of sale or other dis-position of any such Collateral, the Administrative Agent may apply the proceeds of any such sale or dis-position to the satis-faction of the Administrative Agent’s reasonable, documented, out-of-pocket costs and expenses incurred in connection with the Administrative Agent’s taking, retaking, holding, pre-paring for sale, and selling of the Collateral (including the reasonable, documented, out-of-pocket fees, charges and disbursements of Womble Carlyle Sandridge & Rice LLP, who will act as the legal counsel, collectively, for the Administrative Agent and the other Secured Parties); (iii) without pre-cluding any other methods of sale, the sale of Collateral shall have been made in a com-mercially reasonable manner if con-ducted in con-formity with reason-able commercial practices of banks dis-posing of similar property but in any event the Administrative Agent may sell on such terms as the Administrative Agent may choose, without assuming any credit risk and without any obligation to advertise or give notice of any kind; (iv) the Administrative Agent may require the Grantors to assemble the Collateral, taking all neces-sary or appropriate action to preserve and keep it in good con-dition, and make such available to 

the Administrative Agent at a place and time con-venient to both parties, all at the expense of the Grantors; (v) the Administrative Agent has no obligation to repair, clean-up or otherwise prepare the Collateral for sale; and (vi) the Administrative Agent shall comply with any applicable state or federal law requirements in connection with a disposition of the Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral.  Furthermore, in any such event, to the extent per-mitted under appli-cable law, full power and authority are here-by given the Administrative Agent to sell, assign, and deliver the whole of the Collateral or any part(s) thereof, at any time(s) at any broker’s board, or at public or private sale, at the Administrative Agent’s option, and no delay on the Administrative Agent’s part in exer-cising any power of sale or any other rights or options here-under, and no notice or demand, which may be given to or made upon any or all of the Grantors by the Administrative Agent or any Secured Party with respect to any power of sale or other right or option here-under, shall con-stitute a waiver there-of, or limit or impair the Administrative Agent’s right to take any action or to exercise any power of sale or any other rights here-under, without notice or demand, or prejudice the Administrative Agent’s rights as against the Grantors in any respect.  The Grantors hereby waive and release to the fullest extent permitted by law any right or equity of redemption with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshaling the Collateral and any other security for the Obligations or otherwise.  At any such sale, unless prohibited by applicable law, the Administrative Agent may bid for and purchase all or any part of the Collateral so sold free from any such right or equity of redemption.  If Administrative Agent sells any of the Collateral upon credit, the Grantors will be credited only with payments actually made by the purchaser, received by the Administrative Agent and applied to the indebtedness of the purchaser.  In the event the purchaser fails to pay for the Collateral, the Administrative Agent may resell the Collateral and the Grantors shall be credited with the proceeds of the sale as and when received, less expenses.  In the event the Administrative Agent purchases any of the Collateral being sold, the Administrative Agent may pay for the Collateral by crediting some or all of the Obligations of the Grantors.  The Administrative Agent shall not be liable for failure to collect or realize upon any or all of the Collateral or for any delay in so doing nor shall the Administrative Agent be under any obligation to take any action whatsoever with regard thereto.  The Administrative Agent has no obligation to attempt to satisfy the Obligations by collecting them from any other person liable for them and the Administrative Agent may release, modify or waive any collateral provided by any other Person to secure any of the Obligations, all without affecting the Administrative Agent’s rights against the Grantors.  The Grantors waive any right they may have to require the Administrative Agent to pursue any third Person for any of the Obligations.  The Administrative Agent may sell the Collateral without giving any warranties as to the Collateral and may specifically disclaim any warranties of title or the like.  This procedure will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral.
9.    Continuing Security Interest.  Any and all of the Administrative Agent’s rights with respect to the security interests here-under shall continue unim-paired, and the Grantors shall be and remain obligated in accord-ance with the terms hereof, not-with-standing the release or sub-stitution of any Collateral at any time or of any rights or interests there-in, or any delay, exten-sion of time, renewal, compro-mise or other indulgence granted by the Administrative Agent or any Secured Party in reference to any of the Obligations, or any promissory note, draft, bill of exchange or other instrument or Credit Document given in con-nection there-with, the Grantors hereby 

waiving all notice of any such delay, extension, release, sub-stitution, renewal, compro-mise or other indul-gence, and hereby con-senting to be bound thereby as fully and effectually as if the Grantors had expressly agreed thereto in advance.
10.    No Waiver.  No delay on the Administrative Agent’s part in exer-cising any power of sale, option or other right here-under, and no notice or demand which may be given to or made upon any Grantor by the Administrative Agent, shall con-stitute a waiver thereof, or limit or impair the Administrative Agent’s right to take any action or to exer-cise any other power of sale, option or any other right here-under, without notice or demand, or prejudice the Administrative Agent’s rights as against any Grantor in any respect.
11.    Financing Statements.  Each Grantor hereby irrevocably authorizes the Administrative Agent at any time and from time to time to file in any relevant jurisdiction any initial financing statements with respect to the Collateral or any part thereof and amendments thereto that contain the information required by the U.C.C. of each applicable jurisdiction for the filing of any financing statement or amendment, including (i) whether such Grantor is an organization, the type of organization and any organizational identification number issued to such Grantor, and (ii) a description of collateral that describes such property in any other manner as the Administrative Agent may reasonably determine is necessary or advisable to ensure the perfection of the security interest in the Collateral granted under this Agreement.  Each Grantor agrees to provide such information to the Administrative Agent promptly upon request.  Each Grantor agrees to reim-burse the Administrative Agent for the reasonable, documented, out-of-pocket expense of any such filings in any location deemed necessary and appropriate by the Administrative Agent.  To the extent lawful, each Grantor hereby appoints the Administrative Agent as its attorney-in-fact (without requiring the Administrative Agent to act as such) to perform all other acts that the Administrative Agent deems appropriate to perfect and continue its security interest in, and to protect and preserve, the Collateral.  
12.    Power of Attorney.  Each Grantor hereby appoints any officer or agent of the Administrative Agent as such Grantor’s true and lawful attorney-in-fact with the limited power (i) effective at any time an Event of Default (and the expiration of any cure period related thereto) has occurred and is continuing, to execute and file or record any Assignments of Mortgage with respect to any Portfolio Investment, (ii) effective after the occurrence and during the continuance of an Event of Default (and the expiration of any cure period related thereto), to endorse the name of such Grantor upon any notes, checks, drafts, money orders or other instruments of payment or Collateral which may come into possession of the Administrative Agent; to sign and endorse the name of such Grantor upon any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against Account Debtors, assignments, verifications and notices in connection with Accounts; to give written notice to such office and officials of the United States Postal Service to affect such change or changes of address so that all mail addressed to any or all Grantors may be delivered directly to the Administrative Agent (the Administrative Agent will return all mail not related to the Obligations or the Collateral); granting unto such Grantor’s said attorney full power to do any and all things necessary to be done with respect to the above transactions as fully and effectively as the Grantor might or could do, and hereby ratifying all its said attorney shall lawfully do or cause to 

be done by virtue hereof.  This power of attorney shall be irrevocable for the term of this Agreement and all transactions hereunder.
13.    Remedies, Etc., Cumulative.  Each right, power and remedy of the Administrative Agent provided for in this Agreement or the Credit Documents or in any of the other instruments or agreements securing the Obligations or now or hereafter existing at law or in equity or by statute shall be cumulative and concurrent and shall be in addition to every other such right, power or remedy.  The exercise or beginning of the exercise by the Administrative Agent of any one or more of the rights, powers or remedies provided for in this Agreement, the Credit Documents or in any such other instrument or agreement now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by the Administrative Agent of all such other rights, powers or remedies, and no failure or delay on the part of the Administrative Agent to exercise any such right, power or remedy shall operate as a waiver thereof.
14.    Continuing Agreement. This is a continuing agreement and shall remain in full force and effect until terminated by written agreement of the parties and until all of the principal of, premium, if any, and interest on all of the Obligations have been fully paid.  This Agreement and the liens and security interests created and granted hereunder shall remain in effect, notwithstanding the fact that at any time or from time to time there may be no Obligations outstanding, in order to secure all future Obligations.  If this Agree-ment is revoked by opera-tion of law as against any Grantor, such Grantor will indemnify and save the Administrative Agent and its successors or assigns, harm-less from any loss which may be suffered or in-curred by them in making, giving, granting or extending any loans or other credit, financing or financial accommodations, or other-wise acting, here-under prior to receipt by the Administrative Agent of notice in writing of such revo-cation.
15.    Miscellaneous. This Agreement shall be governed by the laws of the State of North Carolina in all respects, including matters of construction, validity and per-formance except to the extent that the remedies provided herein with respect to any of the collateral are governed by the laws of any jurisdiction other than North Carolina; section headings herein are for the convenience of reference only and shall not affect the construction or interpretation of or alter or modify the provisions of this Agreement; none of the terms or pro-visions of this Agreement may be waived, altered, modified, limited or amended except by an agree-ment expressly referring hereto and to which the Administrative Agent consents in writing duly signed for the Administrative Agent and on the Administrative Agent’s behalf; the rights granted to the Administrative Agent herein shall be supplementary and in addition to those granted to the Administrative Agent and/or the Secured Parties in any Credit Documents; the addresses of the parties for delivery of notices, requests, demands and other communications hereunder are as set forth in the Credit Agreement.  Each of the Grantors hereby agrees that all of their liabilities and obligations under this Agreement shall be joint and several.  No reference to “proceeds” in this Agreement authorizes any sale, transfer, or other disposition of the Collateral by any Grantor.
16.    Duties of Administrative Agent.  The Administrative Agent has been appointed by the Secured Parties pursuant to the Credit Agreement.  Its duties to the Secured Parties, powers to act on behalf of the Secured Parties, and immunity are set forth solely therein, and shall not be 

altered by this Agreement.  Any amounts realized by the Administrative Agent hereunder shall be allocated pursuant to Section 6.04 of the Credit Agreement.
17.    Notices of Exclusive Control.   The Administrative Agent agrees that it shall not deliver a notice of exclusive control under any control agreement executed in connection with this Agreement until a Default or an Event of Default has occurred and is continuing. 
18.     Keepwell.  Each Grantor that is a Qualified ECP Guarantor at the time the grant of the security interest hereunder or under the other Loan Documents, in each case, by any Specified Guarantor, becomes effective with respect to any Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Specified Guarantor with respect to such Swap Obligation as may be needed by such Specified Guarantor from time to time to honor all of its obligations under this Agreement and the other Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor’s obligations and undertakings under this Section 18 voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations and undertakings of each Qualified ECP Guarantor under this Section shall remain in full force and effect until the Obligations have been indefeasibly paid and performed in full. Each Qualified ECP Guarantor intends this Section to constitute, and this Section shall be deemed to constitute a “keepwell, support, or other agreement” for the benefit of, each Specified Guarantor for all purposes of the Commodity Exchange Act.
19.    Consent and Reaffirmation.  Each Grantor hereby consents to the execution, delivery and performance of the Credit Agreement and agrees that each reference to the Existing Credit Agreement in the Loan Documents shall, on and after the date hereof, be deemed to be a reference to the Credit Agreement.  Each Grantor hereby acknowledges and agrees that, after giving effect to the Credit Agreement, all of its respective obligations and liabilities under the Loan Documents to which it is a party, as such obligations and liabilities have been amended by the Credit Agreement, are reaffirmed, and remain in full force and effect.
20.     Effect of Restatement.  The Agreement amends and restates the Existing Security Agreement in its entirety and supersedes the Existing Security Agreement in all respects.  

[Remainder of page intentionally left blank]

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

	 
	 
	TRIANGLE CAPITAL CORPORATION

	 
	 
	 

	 
	 
	By:
	 
	/s/ Steven C. Lilly

	 
	 
	 
	 
	Steven C. Lilly

	 
	 
	 
	 
	Chief Financial Officer

	
					
	 
	 
	 
	 
	 

	 
	 
	ARC INDUSTRIES HOLDINGS, INC.

	 
	 
	 

	 
	 
	By:
	 
	/s/ Steven C. Lilly

	 
	 
	 
	 
	Steven C. Lilly

	 
	 
	 
	 
	Secretary

	
					
	 
	 
	 
	 
	 

	 
	 
	BRANTLEY HOLDINGS, INC.

	 
	 
	 

	 
	 
	By:
	 
	/s/ Steven C. Lilly

	 
	 
	 
	 
	Steven C. Lilly

	 
	 
	 
	 
	Secretary

	
					
	 
	 
	 
	 
	 

	 
	 
	ENERGY HARDWARE HOLDINGS, INC.

	 
	 
	 

	 
	 
	By:
	 
	/s/ Steven C. Lilly

	 
	 
	 
	 
	Steven C. Lilly

	 
	 
	 
	 
	Secretary

	
					
	 
	 
	 
	 
	 

	 
	 
	MINCO HOLDINGS, INC.

	 
	 
	 

	 
	 
	By:
	 
	/s/ Steven C. Lilly

	 
	 
	 
	 
	Steven C. Lilly

	 
	 
	 
	 
	Secretary

	
					
	 
	 
	 
	 
	 

	 
	 
	PEADEN HOLDINGS, INC.

	 
	 
	 

	 
	 
	By:
	 
	/s/ Steven C. Lilly

	 
	 
	 
	 
	Steven C. Lilly

	 
	 
	 
	 
	Secretary

	
					
	 
	 
	 
	 
	 

	 
	 
	TECHNOLOGY CROPS HOLDINGS, INC.

	 
	 
	 

	 
	 
	By:
	 
	/s/ Steven C. Lilly

	 
	 
	 
	 
	Steven C. Lilly

	 
	 
	 
	 
	SecretaryExhibit 4.1

 

EXECUTION VERSION

 

VOTING AND SUPPORT AGREEMENT

 

This VOTING AND SUPPORT AGREEMENT (this “Agreement”),
dated as of May 5, 2015, is entered into by and among Alexion Pharmaceuticals, Inc. a Delaware corporation (“Parent”),
Pulsar Merger Sub Inc., a Delaware corporation and a direct wholly owned subsidiary of Parent (“Purchaser”),
and each of the persons set forth on Schedule A hereto (each, a “Stockholder”).  All terms
used but not otherwise defined in this Agreement shall have the respective meanings ascribed to such terms in the Merger Agreement
(as defined below).

 

WHEREAS, as of the date hereof, each Stockholder
is the record and beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of the number of shares of common stock, par
value $0.001 per share of Synageva Biopharma Corp., a Delaware corporation (the “Company”) (the “Company
Common Stock”), set forth opposite such Stockholder’s name on Schedule A (all such shares set forth on Schedule
A next to the Stockholder’s name, in addition to any shares of Company Common Stock acquired in any manner after the
date of this Agreement, being referred to herein as the “Subject Shares”);

 

WHEREAS, concurrently with the execution hereof,
the Company, Parent, Purchaser and Galaxy Merger Sub LLC, a Delaware limited liability company and direct wholly owned subsidiary
of Parent (“Merger Sub 2”, and together with Purchaser, the “Merger Subs”), are entering
into an Agreement and Plan of Reorganization, dated as of the date hereof (as it may be amended from time to time, the “Merger
Agreement”), which provides, among other things, for (a) Purchaser to commence an offer to purchase (subject to the Offer
Conditions (as defined in the Merger Agreement)) all of the issued and outstanding shares of Company Common Stock and, following
completion of the Offer, the merger of Purchaser with and into the Company (the “First Merger”) upon the terms
and subject to the conditions set forth in the Merger Agreement and (b) the Company to convene and hold the Company Stockholder
Meeting for the purpose of obtaining the Company Stockholder Approval and to consummate the First Merger (subject to the conditions
set forth in Article VI of the Merger Agreement) as soon as practicable after the Company Stockholder Approval has been obtained;
and

 

WHEREAS, as a condition to their willingness to
enter into the Merger Agreement, and as an inducement and in consideration for Parent and the Merger Subs to enter into the Merger
Agreement, each Stockholder, severally and not jointly, and on such Stockholder’s own account with respect to the Subject
Shares, has agreed to enter into this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing
and the respective representations, warranties, covenants and agreements set forth below and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree
as follows:

 

ARTICLE I

AGREEMENT TO VOTE

 

1.1.        Agreement
to Vote.  Subject to the terms of this Agreement, each Stockholder hereby irrevocably and unconditionally agrees
that, during the time this Agreement

 

    	 

    	 

    

  

is in effect, at the Company Stockholder Meeting
or any other annual or special meeting of the stockholders of the Company, however called, including any adjournment or postponement
thereof, and in connection with any action proposed to be taken by written consent of the stockholders of the Company, such Stockholder
shall, in each case to the fullest extent that such Stockholder’s Subject Shares are entitled to vote thereon: (a) appear
at each such meeting or otherwise cause all such Subject Shares to be counted as present thereat for purposes of determining a
quorum; and (b) be present (in person or by proxy) and vote (or cause to be voted), or deliver (or cause to be delivered)
a written consent with respect to, all of its Subject Shares (i) for adoption of the Merger Agreement and for the approval
of the transactions contemplated thereby, including the First Merger, (ii) for any proposal to adjourn or postpone the Company
Stockholder Meeting or such other meeting of the Company’s stockholders to a later date if there are not sufficient votes
to adopt the Merger Agreement, (iii) against any action or agreement that would reasonably be expected to (A) result in a
breach of any covenant, representation or warranty or any other obligation or agreement of the Company contained in the Merger
Agreement, or of any Stockholder contained in this Agreement or (B) result in any of the conditions set forth in Annex A or
in Article VII of the Merger Agreement not being satisfied on or before the End Date; (iv) against any change in the Company
Board of Directors, (v) against any Company Takeover Proposal and against any other action, agreement or transaction involving
the Company that is intended, or would reasonably be expected, to impede, interfere with, delay, postpone, adversely affect or
prevent the consummation of the Offer or the Mergers or the other Transactions, including (x) any extraordinary corporate
transaction, such as a merger, consolidation or other business combination involving the Company (other than the Mergers); (y) a
sale, lease, license or transfer of a material amount of assets (including, for the avoidance of doubt, intellectual property rights)
of the Company or any reorganization, recapitalization or liquidation of the Company; or (z) any change in the present capitalization
of the Company or any amendment or other change to the Company Certificate or Company Bylaws; and (vi) in favor of any other matter
necessary to consummate the Transactions.  Subject to the proxy granted under Section 1.2 below, each Stockholder
shall retain at all times the right to vote the Subject Shares in such Stockholder’s sole discretion, and without any other
limitation, on any matters other than those set forth in this Section 1.1 that are at any time or from time to time presented
for consideration to the Company’s stockholders generally.  

 

1.2.       Irrevocable
Proxy.  Solely with respect to the matters described in Section 1.1, for so long as this Agreement has
not been validly terminated in accordance with its terms, each Stockholder hereby irrevocably appoints Parent as its attorney and
proxy with full power of substitution and resubstitution, to the full extent of such Stockholder’s voting rights with respect
to all such Stockholder’s Subject Shares (which proxy is irrevocable and which appointment is coupled with an interest, including
for purposes of Section 212 of the DGCL) to vote, and to execute written consents with respect to, all such Stockholder’s
Subject Shares solely on the matters described in Section 1.1, and in accordance therewith.  Each Stockholder
agrees to execute any further agreement or form reasonably necessary or appropriate to confirm and effectuate the grant of the
proxy contained herein.  Such proxy shall automatically terminate upon the valid termination of this Agreement in accordance
with its terms.  Parent may terminate this proxy with respect to a Stockholder at any time at its sole election by written
notice provided to such Stockholder.

 

    	-2-

    	 

    

  

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS

 

Each Stockholder represents and warrants, on its
own account with respect to the Subject Shares, to Parent and Purchaser as to such Stockholder on a several basis, that:

 

2.1.       Authorization;
Binding Agreement.  If such Stockholder is not an individual, such Stockholder is duly organized and validly
existing in good standing under the Laws of the jurisdiction in which it is incorporated or constituted and the consummation of
the transactions contemplated hereby are within such Stockholder’s entity powers and have been duly authorized by all necessary
entity actions on the part of such Stockholder, and such Stockholder has full power and authority to execute, deliver and perform
this Agreement and to consummate the transactions contemplated hereby.  If such Stockholder is an individual, such Stockholder
has full legal capacity, right and authority to execute and deliver this Agreement and to perform such Stockholder’s obligations
hereunder.  This Agreement has been duly and validly executed and delivered by such Stockholder and constitutes a valid
and binding obligation of such Stockholder enforceable against such Stockholder in accordance with its terms, subject to the effects
of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar Laws relating to or affecting creditors’
rights generally and general equitable principles (whether considered in a proceeding in equity or at law) (the “Enforceability
Exceptions”).  If such Stockholder is married, and any of the Subject Shares of such Stockholder constitute
community property or otherwise need spousal or other approval for this Agreement to be legal, valid and binding, this Agreement
has been duly executed and delivered by such Stockholder’s spouse and, assuming the due authorization,
execution and delivery hereof by Parent and Purchaser, is enforceable against such Stockholder’s spouse in accordance with
its terms, subject to the Enforceability Exceptions.

 

2.2.       Non-Contravention.  Neither
the execution and delivery of this Agreement by such Stockholder nor the consummation of the transactions contemplated hereby nor
compliance by such Stockholder with any provisions herein will (a) if such Stockholder is not an individual, violate, contravene
or conflict with or result in any breach of any provision of the certificate of incorporation or bylaws (or other similar governing
documents) of such Stockholder, (b) require any consent, approval, authorization or permit of, or filing with or notification
to, any supranational, national, foreign, federal, state or local government or subdivision thereof, or governmental, judicial,
legislative, executive, administrative or regulatory authority on the part of such Stockholder, except for compliance with the
applicable requirements of the Securities Act, the Exchange Act or any other United States federal securities laws and the rules
and regulations promulgated thereunder, (c) violate, conflict with, or result in a breach of any provisions of, or require
any consent, waiver or approval or result in a default or loss of a benefit (or give rise to any right of termination, cancellation,
modification or acceleration or any event that, with the giving of notice, the passage of time or otherwise, would constitute a
default or give rise to any such right) under any of the terms, conditions or provisions of any note, license, agreement, contract,
indenture or other instrument or obligation to which such Stockholder is a party or by which such Stockholder or any of its assets
may be bound, (d) result (or, with the giving of notice, the passage of time or otherwise, would result) in the creation or
imposition of any mortgage, lien, pledge, charge, security interest or encumbrance of any kind on any asset of such Stockholder
(other than one created by Parent or Purchaser), or

 

    	-3-

    	 

    

  

(e) violate any order, writ, injunction,
decree, statute, rule or regulation applicable to such Stockholder or by which any of its assets are bound.

 

2.3.       Ownership
of Subject Shares; Total Shares.  Such Stockholder is the record and beneficial owner (as defined in Rule 13d-3
under the Exchange Act) of all such Stockholder’s Subject Shares and has good and marketable title to all such Subject Shares
free and clear of any liens, claims, proxies, voting trusts or agreements, options, rights, understandings or arrangements or any
other encumbrances or restrictions whatsoever on title, transfer or exercise of any rights of a stockholder in respect of such
Subject Shares (collectively, “Encumbrances”), except for any such Encumbrance that may be imposed pursuant
to (a) this Agreement and (b) any applicable restrictions on transfer under the Securities Act or any state securities law (collectively,
“Permitted Encumbrances”).  For the avoidance of doubt, the fact that the Subject Shares are held
in a margin account shall not be deemed to be an Encumbrance hereunder. The Subject Shares listed on Schedule A opposite
such Stockholder’s name constitute all of the shares of “voting stock” of the Company of which such Stockholder
is the “owner” (as such terms are defined in Section 203 of the DGCL) as of the time that the Company Board of Directors
approved the Merger Agreement.

 

2.4.       Voting
Power.  Such Stockholder has full voting power with respect to all such Stockholder’s Subject Shares, and
full power of disposition, full power to issue instructions with respect to the matters set forth herein and full power to agree
to all of the matters set forth in this Agreement, in each case with respect to all such Stockholder’s Subject Shares.  None
of such Stockholder’s Subject Shares are subject to any stockholders’ agreement, proxy, voting trust or other agreement
or arrangement with respect to the voting of such Subject Shares, except as provided hereunder.

 

2.5.       Reliance.  Such
Stockholder understands and acknowledges that Parent and the Merger Subs are entering into the Merger Agreement in reliance upon
such Stockholder’s execution, delivery and performance of this Agreement.

 

2.6.       Absence
of Litigation.  With respect to such Stockholder, as of the date hereof, there are no actions, suits, inquiries,
investigations, proceedings or claims of any nature or subpoenas, civil investigative demands or other requests for information
(each, a “Proceeding”) relating to potential material violations of Law pending against, or, to the knowledge
of such Stockholder, threatened in writing against such Stockholder or any of such Stockholder’s properties or assets (including
any shares of Company Common Stock beneficially owned by such Stockholder) before or by any Governmental Entity that could reasonably
be expected to prevent or materially delay or impair the consummation by such Stockholder of the transactions contemplated by this
Agreement or otherwise materially impair such Stockholder’s ability to perform its obligations hereunder.

 

2.7.       Brokers.  No
broker, finder, financial advisor, investment banker or other person is entitled to any brokerage, finder’s, financial advisor’s
or other similar fee or commission from the Company in connection with the transactions contemplated hereby based upon arrangements
made by or on behalf of such Stockholder.

 

    	-4-

    	 

    

  

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF PARENT AND PURCHASER

 

Parent and Purchaser represent and warrant to
the Stockholders that:

 

3.1.       Organization
and Qualification.  Each of Parent and Purchaser is a duly organized and validly existing corporation in good
standing under the Laws of the state of Delaware.  All of the issued and outstanding capital stock of Purchaser is owned
directly by Parent.

 

3.2.       Authority
for this Agreement.  Each of Parent and Purchaser has all requisite entity power and authority to execute, deliver
and perform its obligations under this Agreement and to consummate the transactions contemplated hereby.  The execution
and delivery of this Agreement by Parent and Purchaser have been duly and validly authorized by all necessary corporate action
on the part of each of Parent and Purchaser, and no other corporate proceedings on the part of Parent and Purchaser are necessary
to authorize this Agreement.  This Agreement has been duly and validly executed and delivered by Parent and Purchaser
and, assuming the due authorization, execution and delivery by the Stockholder, constitutes the legal, valid and binding obligation
of each of Parent and Purchaser, enforceable against each of Parent and Purchaser in accordance with its terms, except as enforceability
may be limited by the Enforceability Exceptions.

 

ARTICLE IV

ADDITIONAL COVENANTS

 

Each Stockholder hereby covenants and agrees that
until the termination of this Agreement:

 

4.1.       No
Transfer; No Inconsistent Arrangements.   Except as provided hereunder or under the Merger Agreement, from
and after the date hereof and until this Agreement is terminated, such Stockholder shall not, directly or indirectly, (i) create
or permit to exist any Encumbrance, other than Permitted Encumbrances, on any of such Stockholder’s Subject Shares, (ii) transfer,
sell, assign, gift, hedge, pledge or otherwise dispose of, or enter into any derivative arrangement with respect to (collectively,
“Transfer”), any of such Stockholder’s Subject Shares, or any right or interest therein (or consent to
any of the foregoing), (iii) enter into any Contract with respect to any Transfer of such Stockholder’s Subject Shares or
any interest therein, (iv) grant or permit the grant of any proxy, power-of-attorney or other authorization or consent in
or with respect to any such Stockholder’s Subject Shares, (v) deposit or permit the deposit of any of such Stockholder’s
Subject Shares into a voting trust or enter into a voting agreement or arrangement with respect to any of such Stockholder’s
Subject Shares, or (vi) take or permit any other action that would in any way restrict, limit or interfere with the performance
of such Stockholder’s obligations hereunder or otherwise make any representation or warranty of such Stockholder herein untrue
or incorrect.  Any action taken in violation of the foregoing sentence shall be null and void ab initio.  Notwithstanding
the foregoing, any Stockholder may Transfer Subject Shares (i) to any member of such Stockholder’s immediate family,
(ii) to a trust for the sole benefit of such Stockholder or any member of such Stockholder’s immediate family, the

 

    	-5-

    	 

    

  

sole trustees of which are such Stockholder or
any member of such Stockholder’s immediate family, (iii) to a charitable organization, including but not limited to, a private
charitable foundation under Section 501(c)(3) of the Internal Revenue Code, or (iv) by will or under the laws of intestacy upon
the death of such Stockholder, provided, that a Transfer referred to in clause (i)
through (iv) of this sentence shall be permitted only if all of the representations and warranties in this Agreement with
respect to such Stockholder would be true and correct upon such Transfer and the transferee agrees in writing, in a manner reasonably
acceptable to Parent, to accept such Subject Shares subject to the terms of this Agreement and to be bound by the terms of this
Agreement and to agree and acknowledge that such person shall constitute a Stockholder for all purposes of this Agreement.  If
any involuntary Transfer of any of such Stockholder’s Subject Shares in the Company shall occur (including, but not limited
to, a sale by such Stockholder’s trustee in any bankruptcy, or a sale to a purchaser at any creditor’s or court sale),
the transferee (which term, as used herein, shall include any and all transferees and subsequent transferees of the initial transferee)
shall take and hold such Subject Shares subject to all of the restrictions, liabilities and rights under this Agreement, which
shall continue in full force and effect until valid termination of this Agreement.  Notwithstanding the foregoing, such
Stockholder may make Transfers of its Subject Shares as Parent may agree in writing in its sole discretion.  

 

4.2.       No
Exercise of Appraisal Rights.  Such Stockholder forever waives and agrees not to exercise any appraisal rights
or dissenters’ rights pursuant to Section 262 of the DGCL or otherwise in respect of such Stockholder’s Subject Shares
that may arise in connection with the Offer and the First Merger.

 

4.3.       Documentation
and Information.  Such Stockholder shall not make any public announcement regarding this Agreement and the transactions
contemplated hereby without the prior written consent of Parent (such consent not to be unreasonably withheld), except as may be
required by applicable Law or in compliance with the rules or regulations of the SEC, any other Government Entity or any stock
exchange as determined in the reasonable discretion of such Stockholder in consultation with its counsel (provided that
reasonable notice of any such disclosure will be provided to Parent).  Such Stockholder consents to and hereby authorizes
Parent and Purchaser to publish and disclose in all documents and schedules filed with the SEC, and any press release or other
disclosure document that Parent or Purchaser reasonably determines to be necessary in connection with the Offer, the First Merger
and any other transactions contemplated by the Merger Agreement, such Stockholder’s identity and ownership of the Subject
Shares, the existence of this Agreement and the nature of such Stockholder’s commitments and obligations under this Agreement,
and such Stockholder acknowledges that Parent and Purchaser will file this Agreement or a form hereof with the SEC or any other
Governmental Entity.  Such Stockholder agrees to promptly give Parent any information it may reasonably require for the
preparation of any such disclosure documents, and such Stockholder agrees to promptly notify Parent of any required corrections
with respect to any written information supplied by such Stockholder specifically for use in any such disclosure document, if and
to the extent that any such information shall have become false or misleading in any material respect.  

 

4.4.       Adjustments.  In
the event of any stock split, stock dividend, merger, reclassification, combination, exchange of shares or the like of the capital
stock of the Company affecting the Subject Shares, the terms of this Agreement shall apply to the resulting securities.  

 

    	-6-

    	 

    

  

4.5.       Waiver
of Certain Actions.  Each Stockholder hereby agrees not to commence or participate in, and to take all actions
necessary to opt out of any class in any class action with respect to, any claim, derivative or otherwise, against Parent, the
Company, the Merger Subs or any of their respective successors (a) challenging the validity of, or seeking to enjoin or delay
the operation of, any provision of this Agreement or the Merger Agreement (including any claim seeking to enjoin or delay the consummation
of the Offer or the Mergers) or (b) alleging a breach of any duty of the Company Board of Directors in connection with the
Merger Agreement, this Agreement or the transactions contemplated thereby or hereby.  

 

4.6.       No
Solicitation.  Each Stockholder shall, and shall cause its Affiliates (which term, solely for purposes of this
Section 4.6, shall be deemed to exclude the Company and its Subsidiaries) and its and their respective directors, officers,
managing partners and employees and their respective agents, financial advisors, investment bankers, attorneys and accountants:
(i) to immediately cease and cause to be terminated any solicitation, encouragement, discussions or negotiations with any
persons (other than Parent) that may be ongoing with respect to a Company Takeover Proposal and (ii) not to, directly or indirectly,
(A) solicit, initiate, knowingly encourage or knowingly facilitate any inquiries regarding, or the making of any proposal
or offer that constitutes, or could reasonably be expected to lead to, a Company Takeover Proposal, (B) engage in, continue
or otherwise participate in any discussions or negotiations regarding, or furnish to any other person any information in connection
with or for the purpose of knowingly encouraging or facilitating, a Company Takeover Proposal (other than, solely in response to
an unsolicited inquiry, to refer the inquiring person to this Section 4.6 and to Section 6.3 of the Merger Agreement and
to limit its conversation or other communication exclusively to such referral), (C) encourage or recommend any other holder of
Company Common Stock to vote against the Transactions (including the First Merger) or to not tender shares of Company Common Stock
into the Offer, or (D) support, recommend, endorse or approve, or propose to support, recommend, endorse or approve, any Company
Takeover Proposal or enter into any letter of intent or similar document, agreement, commitment or agreement in principle relating
to or facilitating a Company Takeover Proposal.  The foregoing notwithstanding, no announcement or disclosure made by,
nor any action taken by, the Board of Directors of the Company (including, without limitation, a Company Adverse Recommendation
Change) shall be deemed to be a breach of this Section 4.6 by any such Stockholder or Affiliate that serves as a director
of the Company so long as such announcement, disclosure or action does not constitute a breach of the Merger Agreement by the Company
or a breach for which the Company was responsible for preventing.

 

4.7.       Registration
Rights.  Between the date of the initial filing of the Offer S-4 (as defined in the Merger Agreement) and the
Closing, Parent and the Stockholders shall use commercially reasonable efforts to negotiate in good faith a usual and customary
registration rights agreement that provides for the registration, for resale on a continuous basis, of all of the equity securities
of Parent owned by the Stockholders and that contains customary provisions related to cooperation, black-out periods and indemnification.  Each
Stockholder acknowledges and agrees that (1) compliance with this Section 4.7 by Parent is not a condition to any other
obligation of any Stockholder contained in this Agreement (including, without limitation, the obligations set forth in Section
1.1), and (2) that no failure of compliance by Parent, nor the failure of the parties to agree to or enter into a registration
rights agreement, shall affect or limit or

 

    	-7-

    	 

    

  

excuse non-performance of any other obligation
of any Stockholder contained in this Agreement (including, without limitation, the obligations set forth in Section 1.1).

 

ARTICLE V

MISCELLANEOUS

 

5.1.       Notices.  All
notices and other communications hereunder shall be in writing and shall be deemed given (a) upon personal delivery to the party
to be notified; (b) when received when sent by email or facsimile by the party to be notified, provided, however,
that notice given by email or facsimile shall not be effective unless either (i) a duplicate copy of such email or facsimile notice
is promptly given by one of the other methods described in this Section 5.1 or (ii) the receiving party delivers a written
confirmation of receipt for such notice either by email or facsimile or any other method described in this Section 5.1;
or (c) when delivered by a courier (with confirmation of delivery); in each case to the party to be notified at the following
address; provided that the notice or other communication is sent to the address, facsimile number or email address set forth
(i) in the case to Parent or Purchaser, to the address, facsimile number or email address set forth in Section 9.7 of the
Merger Agreement and (ii) if to a Stockholder, to such Stockholder’s address, facsimile number or email address set
forth on a signature page hereto, or to such other address, facsimile number or email address as such party may hereafter specify
for the purpose by notice to each other party hereto.

 

5.2.       Termination.  Subject
to the following sentence, this Agreement shall terminate automatically with respect to a Stockholder, without any notice or other
action by any person, upon the first to occur of (a) the valid termination of the Merger Agreement in accordance with its
terms, (b) the First Effective Time, (c) the entry without the prior written consent of such Stockholder into any amendment
or modification to the Merger Agreement that results in a decrease in, or change in the form of the Transaction Consideration or
(d) the mutual written consent of Parent and such Stockholder.  Upon termination of this Agreement, no party shall have
any further obligations or liabilities under this Agreement; provided, however, that (x) nothing set forth in
this Section 5.2 shall relieve any party from liability for any breach of this Agreement prior to termination hereof and
(y) the provisions of this Article V shall survive any termination of this Agreement.

 

5.3.       Amendments
and Waivers.  Any provision of this Agreement may be amended or waived if such amendment or waiver is in writing
and is signed, in the case of an amendment, by each party to this Agreement or, in the case of a waiver, by each party against
whom the waiver is to be effective.  No failure or delay by any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof
or the exercise of any other right, power or privilege.

 

5.4.       Expenses.  All
fees and expenses incurred in connection herewith and the transactions contemplated hereby shall be paid by the party incurring
such fees and expenses, whether or not the Offer or the Mergers are consummated.

 

5.5.       Entire
Agreement; Assignment.  This Agreement, together with Schedule A, and the other documents and certificates
delivered pursuant hereto, constitute the

 

    	-8-

    	 

    

  

entire agreement, and supersede all prior agreements
and understandings, both written and oral, among the parties with respect to the subject matter of this Agreement.  This
Agreement shall not be assigned by any party (including by operation of law, by merger or otherwise) without the prior written
consent of the other parties; provided, that Parent or Purchaser may assign any of their respective rights and obligations
to any direct or indirect Subsidiary of Parent, but no such assignment shall relieve Parent or Purchaser, as the case may be, of
its obligations hereunder.

 

5.6.       Enforcement
of the Agreement.  The parties agree that irreparable damage would occur in the event that any Stockholder did
not perform any of the provisions of this Agreement in accordance with their specific terms or otherwise breached any such provisions.  It
is accordingly agreed that Parent and Purchaser shall be entitled to an injunction or injunctions to prevent breaches of this Agreement
and to enforce specifically the terms and provisions of this Agreement in addition to any other remedy to which they are entitled
at law or in equity.  Any and all remedies herein expressly conferred upon Parent and Purchaser will be deemed cumulative
with and not exclusive of any other remedy conferred hereby, or by Law or equity upon Parent or Purchaser, and the exercise by
Parent or Purchaser of any one remedy will not preclude the exercise of any other remedy.

 

5.7.       Jurisdiction;
Waiver of Jury Trial.  

 

(a)          Each
Stockholder (i) consents to submit itself to the exclusive jurisdiction of the Court of Chancery of the State of Delaware
or, solely if such court lacks subject matter jurisdiction, the United States District Court sitting in New Castle County in the
State of Delaware with respect to any dispute arising out of, relating to or in connection with this Agreement or any transaction
contemplated hereby, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other
request for leave from any such court, and (iii) agrees that it will not bring any action arising out of, relating to or in
connection with this Agreement or any transaction contemplated by this Agreement in any court other than any such court.  Each
Stockholder irrevocably and unconditionally waives any objection to the laying of venue of any proceeding arising out of this Agreement
or the transactions contemplated hereby in the chancery courts of the State of Delaware or in any Federal court located in the
State of Delaware, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court
that any such Proceeding brought in any such court has been brought in an inconvenient forum.  Each Stockholder hereby
agrees that service of any process, summons, notice or document by U.S. registered mail in accordance with Section 5.1 shall
be effective service of process for any proceeding arising out of, relating to or in connection with this Agreement or the transactions
contemplated hereby.

 

(b)          EACH
STOCKHOLDER ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED
AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE
TO A TRIAL BY JURY IN ANY LITIGATION arising out of, relating to or in connection with
this Agreement.  EACH STOCKHOLDER CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY
OF PARENT OR THE MERGER SUBS HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT PARENT OR PURCHASER WOULD NOT, IN THE

 

    	-9-

    	 

    

  

EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER, (II) EACH STOCKHOLDER UNDERSTANDS AND HAS CONSIDERED THE IMPLICATION OF THIS WAIVER, (III) EACH STOCKHOLDER MAKES
THIS WAIVER VOLUNTARILY, AND (IV) EACH STOCKHOLDER HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

5.8.       Governing
Law.  This Agreement, and any dispute arising out of, relating to or in connection with this Agreement shall
be governed by and construed in accordance with the Laws of the State of Delaware, without giving effect to any choice or conflict
of Law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Laws
of any jurisdiction other than the State of Delaware.

 

5.9.      Descriptive
Headings.  The descriptive headings herein are inserted for convenience of reference only and are not intended
to be part of or to affect the meaning or interpretation of this Agreement.

 

5.10.    Parties
in Interest.  This Agreement shall be binding upon and inure solely to the benefit of each party hereto, and
nothing in this Agreement, express or implied, is intended to confer upon any other person any rights or remedies of any nature
whatsoever under or by reason of this Agreement.

 

5.11.     Severability.  If
any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law, or public
policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect.  Upon
such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a
mutually acceptable manner.

 

5.12.    Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall
constitute one and the same agreement.  This Agreement or any counterpart may be executed and delivered by facsimile
copies or delivered by electronic communications by portable document format (.pdf), each of which shall be deemed an original.

 

5.13.     Interpretation.  The
words “hereof,” “herein,” “hereby,” “herewith” and words of similar import shall,
unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement,
and article, section, paragraph and schedule references are to the articles, sections, paragraphs and schedules of this Agreement
unless otherwise specified.  Whenever the words “include,” “includes” or “including”
are used in this Agreement they shall be deemed to be followed by the words “without limitation.” The words describing
the singular number shall include the plural and vice versa, words denoting either gender shall include both genders and words
denoting natural persons shall include all persons and vice versa.  The phrases “the date of this Agreement,”
“the date hereof,” “of even date herewith” and terms of similar import, shall be deemed to refer to the
date set forth in the preamble to this Agreement.  Any reference in this Agreement to a date or time shall be deemed
to be such date or time in New York City, unless otherwise specified.  The parties have

 

    	-10-

    	 

    

 

participated jointly in the negotiation and drafting of this
Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any person by virtue
of the authorship of any provision of this Agreement.

 

5.14.     Further
Assurances.  Each Stockholder will execute and deliver, or cause to be executed and delivered, all further documents
and instruments and use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done,
all things necessary, proper or advisable under applicable Laws and regulations, to perform its obligations under this Agreement.

 

5.15.     No
Agreement Until Executed.  This Agreement shall not be effective unless and until (i) the Company Board
of Directors has approved the Merger Agreement, (ii) the Merger Agreement is executed by all parties thereto and (iii) this
Agreement is executed by all parties hereto.

 

5.16.     Stockholder
Obligation Several and Not Joint.  The obligations of each Stockholder hereunder shall be several and not joint,
and no Stockholder shall be liable for any breach of the terms of this Agreement by any other Stockholder.

 

5.17.     Stockholder
Capacity. No person executing this Agreement who is or becomes during the term hereof a director or officer of the Company
shall be deemed to make any agreement or understanding in this Agreement in such person’s capacity as a director or officer
of the Company.  Each Stockholder is entering into this Agreement solely in such Stockholder’s capacity as the
record holder or beneficial owner of, or as a trust whose beneficiaries are the beneficial owners of, Subject Shares and nothing
herein shall limit or affect any actions taken (or any failures to act) by a Stockholder in such Stockholder’s capacity as
a director or officer of the Company.  The taking of any actions (or any failures to act) by a Stockholder in such Stockholder’s
capacity as a director or officer of the Company shall not be deemed to constitute a breach of this Agreement, regardless of the
circumstances related thereto so long as no such action is or would be a breach or violation of any provision of the Merger Agreement
if taken by an officer or director of the Company acting in such capacity.

 

[Signature Pages Follow]

 

    	-11-

    	 

    

 

The parties are executing this Agreement on the
date set forth in the introductory clause.

 

	 	ALEXION PHARMACEUTICALS, INC.
	 	 	 
	 	By:	/s/ David Hallal
	 	Name:	David Hallal
	 	Title:	CEO
	 	 	 
	 	PULSAR MERGER SUB INC.
	 	 	 
	 	By:	/s/ Scott D. Phillips
	 	Name:	Scott D. Phillips
	 	Title:	President, Treasurer and Secretary

 

[Signature Page to Voting and Support
Agreement] 

    	 

    	 

    

  

	 	667, L.P. ,
	 	 	 
	 	By:  Baker Bros. Advisors LP,
	 	management company and investment adviser to 667, L.P., pursuant to authority granted to it by Baker Biotech Capital, L.P., general partner  to 667, L.P., and not as the general partner.
	 	 	 
	 	By:	/s/ Scott Lessing
	 	Scott Lessing
	 	President
	 	 	 
	 	BAKER BROTHERS LIFE SCIENCES, L.P.
	 	 	 
	 	By:  BAKER BROS. ADVISORS LP,  
	 	management company and investment adviser to Baker Brotheres Life Sciences, L.P.,
    pursuant to authority granted to it by Baker Brothers Life Sciences Capital, L.P., general partner  to Baker Brothers
    Life Sciences, L.P., and not as the general partner.  
	 	 	 
	 	By:	/s/ Scott Lessing
	 	Scott Lessing
	 	President
	 	 	 
	 	14159, L.P.,
	 	 	 
	 	By:  Baker Bros. Advisors LP,
	 	management company and investment adviser to 14159, L.P., pursuant to authority granted to it by 14159 Capital, L.P., general partner  to 14159, L.P., and not as the general partner.
	 	 	 
	 	By:	/s/ Scott Lessing
	 	Scott Lessing
	 	President

 

[Schedule A to Voting and Support Agreement]

 

    	 

    	 

    

  

	 	BAKER BROS. INVESTMENTS, L.P.
	 	 	 
	 	BY:  BAKER BROS. ADVISORS LP,
	 	management company and investment adviser to Baker Bros. Investments, L.P., pursuant to authority granted by Baker Bros. Capital, L.P., general partner to Baker Bros. Investments, L.P., and not as the general partner
	 	 	 
	 	By:	/s/ Scott Lessing
	 	Scott Lessing
	 	President
	 	 	 
	 	BAKER BROS. INVESTMENTS II, L.P
	 	 	 
	 	BY:  BAKER BROS. ADVISORS LP,
	 	management company and investment adviser to Baker Bros. Investments II, L.P., pursuant to authority granted by Baker Bros. Capital, L.P., general partner to Baker Bros. Investments II, L.P., and not as the general partner
	 	 	 
	 	By:	/s/ Scott Lessing
	 	Scott Lessing
	 	President
	 	 	 
	 	BAKER BIOTECH FUND II(A), L.P.,
	 	 	 
	 	By:  Baker Bros. Advisors LP,
	 	management company and investment adviser to Baker Biotech Fund II(A), L.P., pursuant to authority granted to it by Baker Biotech Capital II(A), L.P., general partner  to Baker Biotech Fund II(A), L.P., L.P., and not as the general partner.
	 	 	 
	 	By:	/s/ Scott Lessing
	 	Scott Lessing
	 	President

 

[Schedule A to Voting and Support Agreement]

 

    	 

    	 

    

 

	 	BAKER/TISCH INVESTMENTS, LP.,
	 	 	 
	 	By:  Baker Bros. Advisors LP,
	 	management company and investment adviser to Baker/Tisch Investments, LP pursuant to authority granted to it by Baker/Tisch Capital, L.P., general partner  to Baker/Tisch Investments, LP., and not as the general partner.
	 	 	 
	 	By:	/s/ Scott Lessing
	 	Scott Lessing
	 	President

 

[Schedule A to Voting and Support Agreement]

 

    	 

    	 

    

 

Schedule A

 

	
        Name of Stockholder
	 	
        Number of Shares

        of Company

        Common Stock

	 	 	 
	667, L.P.	 	1,736,065
	 	 	 
	BAKER BROTHERS LIFE SCIENCES, L.P.	 	9,172,521
	 	 	 
	14159, L.P.,	 	211,614
	 	 	 
	BAKER BROS. INVESTMENTS, L.P.	 	165,213
	 	 	 
	BAKER BROS. INVESTMENTS II, L.P.	 	55,479
	 	 	 
	BAKER BIOTECH FUND II(A), L.P. 	 	100,490
	 	 	 
	BAKER/TISCH INVESTMENTS, LP. 	 	206,800

 

[Schedule A to Voting and Support Agreement]

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