Document:

Exhibit 4.2

 

EXECUTION COPY

 

 

 

 

 

 

 

 

DATED AS OF NOVEMBER 20, 2017

 

 

 

ALEXANDRIA REAL ESTATE EQUITIES, INC., 
 as Issuer,

 

ALEXANDRIA REAL ESTATE EQUITIES, L.P.
  as Guarantor,

 

and

 

BRANCH BANKING AND TRUST COMPANY,
  as Trustee

 

 

 

 

 

SUPPLEMENTAL INDENTURE NO. 2
 $600,000,000
 3.45% SENIOR NOTES DUE 2025

 

 

CONTENTS

 

	
Clause
    	
 
    	
Page
    
	
ARTICLE I
    	
RELATION   TO BASE INDENTURE
    	
2
    
	
Section 1.1.
    	
Relation   to Base Indenture
    	
2
    
	
ARTICLE II
    	
DEFINITIONS
    	
2
    
	
Section 2.1.
    	
Definitions
    	
2
    
	
ARTICLE III
    	
THE   SERIES OF NOTES
    	
7
    
	
Section 3.1.
    	
Title   of the Securities
    	
7
    
	
Section 3.2.
    	
Price
    	
8
    
	
Section 3.3.
    	
Issuance
    	
8
    
	
Section 3.4.
    	
Limitation   on Aggregate Principal Amount
    	
8
    
	
Section 3.5.
    	
Interest   and Interest Rates; Maturity Date of Notes
    	
8
    
	
Section 3.6.
    	
Method   of Payment
    	
9
    
	
Section 3.7.
    	
Currency
    	
9
    
	
Section 3.8.
    	
No   Sinking Fund
    	
10
    
	
Section 3.9.
    	
No   Conversion or Exchange Rights
    	
10
    
	
Section 3.10.
    	
No   Personal Liability of Directors, Officers, Employees and Stockholders
    	
10
    
	
Section 3.11.
    	
Registered   Securities; Global Form
    	
10
    
	
Section 3.12.
    	
Transfer   and Exchange
    	
10
    
	
Section 3.13.
    	
General   Provisions Relating to Transfers and Exchanges
    	
14
    
	
ARTICLE IV
    	
REDEMPTION
    	
15
    
	
Section 4.1.
    	
Optional   Redemption
    	
15
    
	
Section 4.2.
    	
Notice   of Optional Redemption; Selection of Notes
    	
15
    
	
Section 4.3.
    	
Payment   of Notes Called for Redemption by the Company
    	
16
    
	
ARTICLE V
    	
GUARANTEE
    	
17
    
	
Section 5.1.
    	
Guarantee
    	
17
    
	
Section 5.2.
    	
Execution   and Delivery of Guarantee
    	
18
    
	
Section 5.3.
    	
Limitation   of Guarantor’s Liability; Certain Bankruptcy Events
    	
19
    
	
Section 5.4.
    	
Application   of Certain Terms and Provisions to the Guarantor
    	
19
    
	
ARTICLE VI
    	
ADDITIONAL   COVENANTS
    	
19
    
	
Section 6.1.
    	
Maintenance   of Office or Agency
    	
19
    
	
Section 6.2.
    	
Appointments   to Fill Vacancies in Trustee’s Office
    	
20
    

 

 

	
Section 6.3.
    	
Limitations   on Incurrence of Debt
    	
20
    
	
ARTICLE VII
    	
DEFAULTS   AND REMEDIES
    	
22
    
	
Section 7.1.
    	
Events   of Default
    	
22
    
	
Section 7.2.
    	
Acceleration   of Maturity; Rescission and Annulment
    	
24
    
	
Section 7.3.
    	
Limitation   on Suits
    	
24
    
	
Section 7.4.
    	
Notice   of Defaults
    	
24
    
	
ARTICLE VIII
    	
AMENDMENTS   AND WAIVERS
    	
25
    
	
Section 8.1.
    	
Without   Consent of Holders
    	
25
    
	
ARTICLE IX
    	
MEETINGS   OF HOLDERS OF NOTES
    	
26
    
	
Section 9.1.
    	
Purposes   for Which Meetings May Be Called
    	
26
    
	
Section 9.2.
    	
Call,   Notice and Place of Meetings
    	
26
    
	
Section 9.3.
    	
Persons   Entitled to Vote at Meetings
    	
27
    
	
Section 9.4.
    	
Quorum;   Action
    	
27
    
	
Section 9.5.
    	
Determination   of Voting Rights; Conduct and Adjournment of Meetings
    	
27
    
	
Section 9.6.
    	
Counting   Votes and Recording Action of Meetings
    	
28
    
	
ARTICLE X
    	
MISCELLANEOUS   PROVISIONS
    	
29
    
	
Section 10.1.
    	
Ratification   of Indenture
    	
29
    
	
Section 10.2.
    	
Governing   Law
    	
29
    
	
Section 10.3.
    	
Counterparts
    	
29
    
	
Section 10.4.
    	
Notices
    	
29
    
	
Section 10.5.
    	
Successors   and Assigns
    	
29
    
	
Section 10.6.
    	
Time   of the Essence
    	
29
    
	
Section 10.7.
    	
Rights   of Holders Limited
    	
29
    
	
Section 10.8.
    	
Rights   and Duties of Trustee
    	
29
    
	
Section 10.9.
    	
Notices
    	
30
    
	
Section 10.10.
    	
Headings, etc.
    	
31
    
	
Section 10.11.
    	
Conflicts
    	
31
    
	
Section 10.12.
    	
Trust   Indenture Act Controls
    	
31
    

 

 

SUPPLEMENTAL INDENTURE NO. 2, dated as of November 20, 2017 (this “Second Supplemental Indenture”), among ALEXANDRIA REAL ESTATE EQUITIES, INC., a Maryland corporation (the “Company”), ALEXANDRIA REAL ESTATE EQUITIES, L.P., a Delaware limited partnership (the “Guarantor”) and BRANCH BANKING AND TRUST COMPANY, as trustee (the “Trustee”).

 

R E C I T A L S

 

WHEREAS, the Company, the Guarantor and the Trustee have heretofore entered into an Indenture dated as of March 3, 2017 (the “Base Indenture”), providing for the issuance from time to time of unsecured debentures, notes or other evidences of indebtedness (the “Securities”) of the Company in one or more series;

 

WHEREAS, the Company, the Guarantor and the Trustee executed the first supplemental indenture, dated as of March 3, 2017, pursuant to which the Issuer issued $350,000,000 in aggregate principal amount of its 3.95% Senior Notes due 2028 on March 3, 2017 (the “2028 Notes”);

 

WHEREAS, Section 9.1(6) and (7) of the Base Indenture provides, among other things, that, without the consent of the Holders of the Securities, one or more indentures supplemental to the Base Indenture may be entered into (i) to establish the form or terms of Securities of any series or (ii) to add to, change or eliminate any of the provisions of the Base Indenture in respect of one or more series of Securities; provided that any such addition, change or elimination shall become effective only when there is no such Security Outstanding;

 

WHEREAS, each of the Company and the Guarantor desires to execute this Second Supplemental Indenture to establish the form and to provide for the issuance of a series of the Company’s senior notes designated as its 3.45% Senior Notes due 2025 (the “Notes”) in an initial aggregate principal amount of $600,000,000;

 

WHEREAS, the Guarantor will guarantee the due and punctual payment of the principal, premium, if any, and interest on the Notes pursuant to Article V of this Second Supplemental Indenture;

 

WHEREAS, the Board of Directors of the Company (the “Board of Directors”) has duly adopted resolutions authorizing the Company to create and issue the Notes and to execute and deliver this Second Supplemental Indenture;

 

WHEREAS, the Board of Directors of ARE-QRS Corp., as sole general partner of the Guarantor, has duly adopted resolutions authorizing the Guarantor to execute and deliver this Second Supplemental Indenture;

 

WHEREAS, concurrently with the execution hereof, the Company has delivered to the Trustee an Officers’ Certificate and has caused its counsel to deliver to the Trustee an Opinion of Counsel or a reliance letter upon an Opinion of Counsel satisfying the requirements of Sections 1.2,  3.3 and 9.3 of the Base Indenture; and

 

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WHEREAS, all other conditions and requirements necessary to make this Second Supplemental Indenture, when duly executed and delivered, a valid and binding agreement in accordance with its terms and for the purposes herein expressed, have been performed and fulfilled.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each of the Company, the Guarantor and the Trustee agrees as follows:

 

ARTICLE I

 

RELATION TO BASE INDENTURE

 

Section 1.1.                    Relation to Base Indenture.  This Second Supplemental Indenture constitutes an integral part of the Base Indenture.  Notwithstanding any other provision of this Second Supplemental Indenture, all provisions of this Second Supplemental Indenture are expressly and solely for the benefit of the Holders of the Notes and any such provisions shall not be deemed to apply to any other Securities issued under the Base Indenture and shall not be deemed to amend, modify or supplement the Base Indenture for any purpose other than with respect to the Notes.

 

ARTICLE II

 

DEFINITIONS

 

Section 2.1.                    Definitions.  For all purposes of this Second Supplemental Indenture, except as otherwise expressly provided for or unless the context otherwise requires:

 

(a)                               capitalized terms used but not defined herein shall have the respective meanings assigned to them in the Base Indenture;

 

(b)                              all references herein to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of this Second Supplemental Indenture; and

 

(c)                               as used herein the following terms have the following meanings:

 

“2028 Notes” has the meaning set forth in the recitals hereof.

 

“Acquired Debt” means Debt of a person (1) existing at the time such person becomes a Subsidiary or (2) assumed in connection with the acquisition of assets from such person, in each case, other than Debt incurred in connection with, or in contemplation of, such person becoming a Subsidiary or such acquisition.  Acquired Debt shall be deemed to be incurred on the date of the related acquisition of assets from any person or the date the acquired person becomes a Subsidiary.

 

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“Additional Notes” means additional Notes (other than the Initial Notes) issued under the Indenture in accordance with Section 3.4 hereof, as part of the same series as the Initial Notes.

 

“Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules and procedures of the Depository, Euroclear and Clearstream that apply to such transfer or exchange.

 

“Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for the relief of debtors.

 

“Benefited Party” has the meaning set forth in Section 5.1 hereof.

 

“Clearstream” means Clearstream Banking, S.A.

 

“Consolidated EBITDA” means, for any period of time, the net income (loss) of the Company and its Subsidiaries, determined on a consolidated basis in accordance with GAAP for such period, before deductions for (without duplication):

 

(1)                              Interest Expense;

 

(2)                              taxes;

 

(3)                              depreciation and amortization (including depreciation and amortization with respect to interests in joint ventures and partially owned entity investments), amortization of deferred charges, and all other non-cash items, as determined reasonably and in good faith by the Company;

 

(4)                              impairments, prepayment penalties and all costs or fees incurred in connection with any debt financing or amendment thereto, acquisition, disposition, recapitalization or similar transaction (regardless of whether such transaction is completed);

 

(5)                              extraordinary items, the effect of any charge resulting from a change in accounting principles in determining net income (loss), non-recurring items or other unusual items, as determined reasonably and in good faith by the Company;

 

(6)                              noncontrolling interests;

 

(7)                              amounts related to swap ineffectiveness or attributable to transactions involving derivative instruments that do not qualify for hedge accounting in accordance with GAAP; and

 

(8)                              gains or losses on dispositions of real estate investments or property valuation losses.

 

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For purposes of calculating Consolidated EBITDA, GAAP is not applicable with respect to the determination of all non-cash and non-recurring items which shall be determined reasonably and in good faith by the Company.

 

“Debt” means any of the Company’s or any of its Subsidiaries’ indebtedness, whether or not contingent, in respect of (without duplication) (1) borrowed money evidenced by bonds, notes (including the Notes and the 2028 Notes), debentures or similar instruments, (2) obligations  secured by any mortgage, pledge, lien, charge, encumbrance or any security interest existing on property owned by the Company or any of its Subsidiaries, but only to the extent of the lesser of (a) the amount of obligations so secured and (b) the fair market value (determined in good faith by the board of directors of such person (as evidenced by an Officers’ Certificate to the Trustee) or, in the case of the Company or a Subsidiary of the Company, by the Board of Directors (as evidenced by an Officers’ Certificate delivered to the Trustee) of the property subject to such mortgage, pledge, lien, charge, encumbrance or security interest, (3) the reimbursement obligations, contingent or otherwise, in connection with any letters of credit actually issued or amounts representing the balance deferred and unpaid of the purchase price of any property or services, except any such balance that constitutes an accrued expense or trade payable, or all conditional sale obligations or obligations under any title retention agreement, or (4) any lease of property by the Company or any of its Subsidiaries as lessee which is reflected on the Company’s consolidated balance sheet as a capitalized lease in accordance with GAAP; but only to the extent, in the case of items of indebtedness under (1) through (3) above, that any such items (other than letters of credit) would appear as a liability on the Company’s consolidated balance sheet in accordance with GAAP.  The term “Debt” also includes, to the extent not otherwise included, any obligation of the Company or any of its Subsidiaries to be liable for, or to pay, as obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of business or for the purposes of guaranteeing the payment of all amounts due and owing pursuant to leases to which the Company or any of its Subsidiaries are a party and have assigned its or their interest, provided that such assignee of the Company or its Subsidiary is not in default of any amounts due and owing under such leases), Debt of another person (other than the Company or any of its Subsidiaries) (it being understood that Debt shall be deemed to be incurred by the Company or any of its Subsidiaries whenever the Company or such Subsidiary shall create, assume, guarantee or otherwise become liable in respect thereof).

 

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

 

“Defaulted Interest” has the meaning set forth in Section 3.6 hereof.

 

“Definitive Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with Section 3.13 hereof, substantially in the form of Exhibit A hereof except that such Note shall not bear the Global Note legend and shall not have the “Schedule of Exchanges of Interests in the Global Note” attached thereto.

 

“Depository” means, with respect to the Notes, The Depository Trust Company and any successor thereto.

 

“Dollars” and “$” means the currency of the United States of America.

 

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“Euroclear” means Euroclear Bank, S.A./N.V., as operator of the Euroclear system.

 

“Event of Default” has the meaning set forth in Section 7.1 hereof.

 

“GAAP” means generally accepted accounting principles in the United States of America, consistently applied, as in effect as of the date hereof, including those set forth in the opinions and  pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board.

 

“Global Note” means, individually and collectively, each of the Notes in the form established pursuant to Section 3.11 issued to the Depository or its nominee, substantially in the form of Exhibit A.

 

“Guarantee Obligations” has the meaning set forth in Section 5.1 hereof.

 

“Indenture” means the Base Indenture, as supplemented, amended or restated, from time to time.

 

“Indirect Participant” means a person who holds a beneficial interest in a Global Note through a Participant.

 

“Initial Notes” means the first $600,000,000 aggregate principal amount of Notes issued under this Second Supplemental Indenture on the date hereof.

 

“Initial Original Principal Amount” has the meaning set forth in Section 3.4 hereof.

 

“Intercompany Debt” means Debt to which the only parties are any of the Company, the Guarantor and any Subsidiary of the Company or the Guarantor; provided, however, that with respect to any such Debt of which the Company or the Guarantor is the borrower, such Debt is subordinate in right of payment to the Notes.

 

“Interest Expense” means, for any period of time, the aggregate amount of interest expense determined on a consolidated basis in accordance with GAAP for such period by the Company and its Subsidiaries, but excluding (i) interest reserves funded from the proceeds of any loan, (ii) prepayment penalties, (iii) amortization of deferred financing costs, and (iv) swap ineffectiveness charges or charges attributable to transactions involving derivative instruments that do not qualify for hedge accounting in accordance with GAAP.

 

“Interest Payment Date” has the meaning set forth in Section 3.5 hereof.

 

“Make-Whole Amount” means, in connection with any optional redemption of the Notes, the excess, if any, as determined by the Company, of:

 

(1)                              the aggregate present value as of the date of such redemption of each dollar of principal being redeemed or paid and the amount of interest (exclusive of interest accrued to the date of redemption) that would have been payable in respect of such principal amount through February 28, 2025 as if such redemption or accelerated payment had not been made, determined by discounting, on a semi-annual basis, such principal and interest at the Reinvestment Rate (determined by the Company on the third Business Day preceding the date a notice of redemption is given) from the respective dates on which such principal and interest would have been payable (or, in the case of accrued interest as of February 28, 2025, from such date) as if such redemption or payment had not been made, over

 

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(2)                              the aggregate principal amount of the Notes being redeemed or paid.

 

The Trustee shall have no duty to calculate or verify the Company’s calculations of the Make-Whole Amount.

 

“Maturity Date” has the meaning set forth in Section 3.5 hereof.

 

“Notes” has the meaning specified in the sixth whereas clause hereof.  The Initial Notes and the Additional Notes shall be treated as a single class for all purposes under the Indenture, and unless the context otherwise requires, all references to the Notes shall include the Initial Notes and any Additional Notes.

 

“Officer” means the Chief Executive Officer, the Chief Financial Officer, the President, any Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

 

“Participant” means, with respect to the Depository, Euroclear or Clearstream, a person who has an account with the Depository, Euroclear or Clearstream, respectively.

 

“Prospectus” means the base prospectus, dated November 3, 2015, included as part of a registration statement on Form S-3 under Securities Act, filed by the Company with the Commission on November 3, 2015 (File No. 333-207762), as supplemented by a prospectus supplement, dated November 9, 2017 filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act.

 

“Record Date” has the meaning set forth in Section 3.5 hereof.

 

“Redemption Date” means, with respect to any Note or portion thereof to be redeemed in accordance with the provisions of Section 4.1 hereof, the date fixed for such redemption in accordance with the provisions of Section 4.1 hereof.

 

“Redemption Price” has the meaning specified in Section 4.1 hereof.

 

“Reinvestment Rate” means 0.20% plus the arithmetic mean of the yields under the respective heading “Week Ending” published in the most recent Statistical Release under “Treasury Constant Maturities” for the maturity (rounded to the nearest month) corresponding to February 28, 2025 as of the date of the principal being redeemed or paid.  If no maturity exactly corresponds to such maturity, yields for the two published maturities most closely corresponding to such maturity shall be calculated pursuant to the immediately preceding sentence and the Reinvestment Rate shall be interpolated or extrapolated from such yields on a straight-line basis, rounding in each of such relevant periods to the nearest month.  For the purpose of calculating the Reinvestment Rate, the most recent Statistical Release published prior to the date of determination of the Make-Whole Amount shall be used.

 

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“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time.

 

“Significant Subsidiary” means each Subsidiary that is a “significant subsidiary,” if any, of the Company, as such term is defined in Regulation S-X under the Securities Act.

 

“Statistical Release” means that statistical release designated “H.15(519)” or any successor publication that is published weekly by the Federal Reserve System and that establishes annual yields on actively traded United States government securities adjusted to constant maturities, or, if such statistical release is not published at the time of any determination under the Indenture, then such other reasonably comparable index the Company designates.  If the format or content of the Statistical Release changes in a manner that precludes determination of the Treasury yield in the manner above, then the Treasury yield shall be determined in the manner that most closely approximates the above manner, as reasonably determined by the Company.

 

“Total Assets” as of any date means the sum of (1) the Company’s and all of its Subsidiaries’ Undepreciated Real Estate Assets and (2) all of the Company’s and all of its Subsidiaries’ other assets determined in accordance with GAAP (but excluding accounts receivable and acquisition intangibles, including goodwill).

 

“Undepreciated Real Estate Assets” as of any date means the cost (original cost plus capital improvements) of the Company’s and its Subsidiaries’ real estate assets on such date, before depreciation and amortization determined on a consolidated basis in accordance with GAAP.

 

“Unencumbered Total Asset Value” as of any date means the sum of (1) those Undepreciated Real Estate Assets not encumbered by any mortgage, lien, charge, pledge or security interest and (2) all of the Company’s and its Subsidiaries’ other assets on a consolidated basis determined in accordance with GAAP (but excluding accounts receivable and acquisition intangibles, including goodwill), in each case which are unencumbered by any mortgage, lien, charge, pledge or security interest; provided, however, that in determining Unencumbered Total Asset Value for purposes of this Second Supplemental Indenture, all investments by the Company and any of its Subsidiaries in unconsolidated joint ventures, unconsolidated limited partnerships, unconsolidated limited liability companies and other unconsolidated entities accounted for financial reporting purposes using the equity method of accounting in accordance with GAAP shall be excluded from Unencumbered Total Asset Value.

 

ARTICLE III

 

THE SERIES OF NOTES

 

Section 3.1.                    Title of the Securities.  There shall be a series of Securities designated the 3.45% Senior Notes due 2025.

 

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Section 3.2.                    Price.  The Initial Notes shall be issued at a public offering price of 99.813% of the principal amount thereof, other than any offering discounts pursuant to the initial offering and resale of the Notes.

 

Section 3.3.                    Issuance.  The Notes will be issued only in fully registered, book-entry form, in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.  The registered Holder of a Note will be treated as its owner for all purposes.

 

Section 3.4.                    Limitation on Aggregate Principal Amount.  The aggregate principal amount of the Notes shall initially be limited to $600,000,000 (the “Initial Original Principal Amount”).  Notwithstanding the foregoing, the Company, without notice to or the consent of the Holders of the Notes, by Board Resolutions or indentures supplemental to the Base Indenture from time to time may increase the principal amount of the Notes by issuing Additional Notes in the future on the same terms and conditions as the Initial Notes except for any difference in the issue price and interest accrued prior to the issue date of the Additional Notes, and with the same CUSIP number as the Initial Notes so long as such Additional Notes are fungible for U.S. income tax purposes with the Initial Notes (as determined by the Company).  Except as provided in this Section 3.4, any such Board Resolutions or indentures supplemental to the Base Indenture and Sections 2.1 and 3.1 of the Base Indenture, the Company shall not execute and the Trustee shall not authenticate or deliver Notes in excess of the Initial Original Principal Amount.

 

Nothing contained in this Section 3.4 or elsewhere in this Second Supplemental Indenture, or in the Notes, is intended to or shall limit execution by the Company or authentication or delivery by the Trustee of the Notes under the circumstances contemplated in Sections 3.3, 3.4, 3.6 and 11.7 of the Base Indenture.

 

Section 3.5.                    Interest and Interest Rates; Maturity Date of Notes.  The Notes will bear interest at a rate of 3.45% per annum from November 20, 2017 or from the immediately preceding Interest Payment Date to which interest has been paid or duly provided for, payable semi-annually in arrears on April 30 and October 30 of each year, commencing April 30, 2018 (each, an “Interest Payment Date”), to the person in whose name such Note is registered at the close of business on the April 15 or October 15 (whether or not a Business Day), as the case may be, immediately preceding such Interest Payment Date (each, a “Record Date”).  Interest will be computed on the basis of a 360-day year composed of twelve 30-day months.

 

If any Interest Payment Date, Maturity Date or Redemption Date falls on a day that is not a Business Day, the required payment shall be made on the next Business Day as if it were made on the date such payment was due and no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date, Maturity Date or Redemption Date, as the case may be.

 

The Notes will mature on April 30, 2025 (the “Maturity Date”).

 

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Section 3.6.                    Method of Payment.  The Company covenants and agrees that it will duly and punctually pay or cause to be paid when due the principal of (including the Redemption Price upon redemption pursuant to Article IV, if applicable), and interest on each of the Securities at the places, at the respective times and in the manner provided herein and in the Securities; provided that the Company may withhold from payments of interest and upon redemption pursuant to Article IV hereof, if applicable, maturity or otherwise, any amounts the Company is required to withhold by law.  Interest shall be payable at the office of the Company maintained by the Company for such purposes, which shall initially be an office or agency of the Trustee.  The Company shall pay interest (i) on any Notes in certificated form by check mailed to the address of the person entitled thereto as it appears in the register; provided, however, that a Holder of any Notes in certificated form in the aggregate principal amount of more than $2.0 million may specify by written notice to the Company that it pay interest by wire transfer of immediately available  funds to the account specified by the Holder in such notice, or (ii) on any Global Note by wire transfer of immediately available funds to the account of the Depository or its nominee.  Any interest on any Note which is payable, but is not punctually paid or duly provided for, on any April 30 or October 30 (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder registered as such on the relevant Record Date, and such Defaulted Interest shall be paid by the Company, at its election in each case, as provided in clause (a) or (b) below:

 

(a)                               The Company may elect to make payment of any Defaulted Interest to the persons in whose names the Notes are registered at 5:00 p.m., New York City time, on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed payment (which shall be not less than twenty-five (25) calendar days after the receipt by the Trustee of such notice), and at the same time the Company shall deposit with the Trustee an amount of monies equal to the aggregate amount to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such monies when deposited to be held in trust for the benefit of the persons entitled to such Defaulted Interest as in this clause provided.  Thereupon the Company shall fix a special record date for the payment of such Defaulted Interest which shall be not more than fifteen (15) calendar days and not less than ten (10) calendar days prior to the date of the proposed payment, and not less than ten (10) calendar days after the receipt by the Trustee of the notice of the proposed payment.  The Company shall promptly notify the Trustee of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be delivered to each Holder at its address as it appears in the register, not less than ten (10) calendar days prior to such special record date.  Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been so mailed, such Defaulted Interest shall be paid to the persons in whose names the Notes are registered at 5:00 p.m., New York City time, on such special record date and shall no longer be payable pursuant to the following clause (b) of this Section 3.6.

 

(b)                              The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange or automated quotation system on which the Notes may be listed or designated for issuance, and upon such notice as may be required by such exchange or automated quotation system, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

 

Section 3.7.                    Currency.  Principal and interest on the Notes shall be payable in Dollars.

 

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Section 3.8.                    No Sinking Fund.  The provisions of Article XII of the Base Indenture shall not be applicable to the Notes.

 

Section 3.9.                    No Conversion or Exchange Rights.  The Notes will not be convertible into or exchangeable for any capital stock of the Company.

 

Section 3.10.            No Personal Liability of Directors, Officers, Employees and Stockholders.  No director, officer, employee or stockholder (past or present) of the Company or the Guarantor, as such, will have any liability for any of the Company’s or the Guarantor’s obligations under the Notes, the Guarantee or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder of Notes by accepting a Note waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

 

Section 3.11.            Registered Securities; Global Form.  The Notes will be issued in the form of one or more fully-registered Global Notes in book-entry form, which will be deposited with, or on behalf of, the Depository.  The Notes shall not be issuable in Definitive Notes except as provided in Section 3.12 of this Second Supplemental Indenture.  The Notes and the Trustee’s certificate of authentication shall be substantially in the form attached as Exhibit A hereto.  The Company shall execute each Global Note and each Definitive Note, if any.  The Trustee shall, in accordance with Section 3.3 of the Base Indenture, authenticate and hold each Global Note as custodian for the Depository, and authenticate each Definitive Note, if any.  Each Global Note will represent such of the outstanding Notes as will be specified therein and each shall provide that it represents the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.  Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby will be made by the Trustee or a custodian at the direction of the Trustee.  The terms and provisions contained in the form of Note attached as Exhibit A hereto shall constitute, and are hereby expressly made, a part of the Indenture and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this Second Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.

 

Section 3.12.            Transfer and Exchange.

 

(a)                               Transfer and Exchange of Global Notes.  A Global Note may not be transferred except as a whole by the Depository to a nominee of the Depository, by a nominee of the Depository to the Depository or to another nominee of the Depository, or by the Depository or any such nominee to a successor Depository or a nominee of such successor Depository.  All Global Notes will be exchanged by the Company for Definitive Notes if:

 

(i)                                  the Company delivers to the Trustee notice from the Depository that it is unwilling or unable to continue to act as Depository or that it is no longer a clearing agency registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and, in either case, a successor Depository is not appointed by the Company within ninety (90) days after the date of such notice from the Depository; or

 

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(ii)                              the Company in its sole discretion determines that the Global Notes (in whole but not in part) should be exchanged for Definitive Notes and delivers a written notice to such effect to the Trustee.

 

Upon the occurrence of either of the preceding events in (i) or (ii) above, Definitive Notes shall be issued in such names as the Depository shall instruct the Trustee.  Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 3.4 and 3.6 of the Base  Indenture.  Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 3.12 or Sections 3.4 and 3.6 of the Base Indenture, shall be authenticated and delivered in the form of, and shall be, a Global Note.  A Global Note may not be exchanged for another Note other than as provided in this Section 3.12(a), however, beneficial interests in a Global Note may be transferred and exchanged as provided in Section 3.12(c) or (d) hereof.

 

(b)                              Legend.  Any Global Note issued under this Second Supplemental Indenture shall bear a legend in substantially the following form:

 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY (AS DEFINED IN THE BASE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 3.12 OF THE SECOND SUPPLEMENTAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 3.12 OF THE SECOND SUPPLEMENTAL INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 3.9 OF THE BASE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

 

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(c)                               Transfer and Exchange of Beneficial Interests in the Global Notes.  The transfer and exchange of beneficial interests in the Global Notes will be effected through the Depository, in accordance with the provisions of the Indenture and the Applicable Procedures.  Transfers of beneficial interests in the Global Notes will require compliance with either subparagraph (i) or (ii) below, as applicable:

 

(i)                                  Transfer of Beneficial Interests in the Same Global Note.  Beneficial interests in any Global Note may be transferred to persons who take delivery thereof in the form of a beneficial interest in a Global Note.  No written orders or instructions shall be required to be delivered to the Security Registrar to effect the transfers described in this Section 3.12(c)(i).

 

(ii)                              All Other Transfers of Beneficial Interests in Global Notes.  In connection with all transfers of beneficial interests that are not subject to Section 3.12(c)(i) above, the transferor of such beneficial interest must deliver to the Security Registrar both:

 

(A)                          a written order from a Participant or an Indirect Participant given to the Depository in accordance with the Applicable Procedures directing the Depository to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged; and

 

(B)                           instructions given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with such increase.

 

Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global Notes contained in the Indenture and the Notes or otherwise applicable under the Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 3.12(g) hereof.

 

(d)                             Transfer and Exchange of Beneficial Interests in Global Notes for Definitive Notes.  If any holder of a beneficial interest in a Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a person who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set forth in Section 3.12(c)(ii) hereof and receipt of a Company Order, the Trustee will cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 3.12(g) hereof, and the Company will execute and the Trustee will authenticate and deliver to the person designated in the instructions a Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 3.12(d) will be registered in such name or names and in such authorized denomination or denominations as the holder of such beneficial interest requests through instructions to the Security Registrar from or through the Depository and the Participant or Indirect Participant.  The Trustee will deliver such Definitive Notes to the persons in whose names such Notes are so registered.

 

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(e)                               Transfer and Exchange of Definitive Notes for Beneficial Interests in Global Notes.  A Holder of a Definitive Note may exchange such Note for a beneficial interest in a Global Note or transfer such Definitive Notes to a person who takes delivery thereof in the form of a beneficial interest in a Global Note at any time.  Upon receipt of a written request for such an exchange or transfer, the Trustee will cancel the applicable Definitive Note and increase or cause to be increased the aggregate principal amount of one of the Global Notes.

 

If any such exchange or transfer from a Definitive Note to a beneficial interest is effected pursuant to the previous paragraph at a time when a Global Note has not yet been issued, the Company will issue and, upon receipt of a Company Order in accordance with Section 3.12 hereof, the Trustee will authenticate one or more Global Notes in an aggregate principal amount equal to the principal amount of Definitive Notes so transferred.

 

(f)                                Transfer and Exchange of Definitive Notes for Definitive Notes.  Upon request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 3.12(f), the Security Registrar will register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or exchange, the requesting Holder will present or surrender to the Security Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Security Registrar duly executed by such Holder or by his attorney, duly authorized in writing.  A Holder of Definitive Notes may transfer such Notes to a person who takes delivery thereof in the form of a Definitive Note.  Upon receipt of a written request to register such a transfer, the Security Registrar shall register the Definitive Notes pursuant to the instructions from the Holder thereof.

 

(g)                              Cancellation and/or Adjustment of Global Notes.  At such time as all beneficial interests in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global Note will be returned to or retained and canceled by the Trustee in accordance with Section 3.9 of the Base Indenture.  At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a person who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented by such Global Note will be reduced accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depository at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a person who will take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note will be increased accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depository at the direction of the Trustee to reflect such increase.

 

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Section 3.13.            General Provisions Relating to Transfers and Exchanges.

 

(a)                               To permit registrations of transfers and exchanges, the Company will execute and the Trustee will authenticate Global Notes and Definitive Notes upon receipt of a Company Order in accordance with Section 3.12 hereof.

 

(b)                              No service charge will be made to a Holder of a beneficial interest in a Global Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 3.4 and 9.6 of the Base Indenture).

 

(c)                               The Security Registrar will not be required to register the transfer of or exchange of any Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part.

 

(d)                             All Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes will be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under the Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange.

 

(e)                               Neither the Security Registrar nor the Company will be required:

 

(i)                                  to issue or register the transfer or exchange of any Note during a period beginning at the opening of business fifteen (15) days before any selection of Notes for redemption under Article IV hereof and ending at the close of business on the earliest date on  which the relevant notice of redemption is deemed to have been given to all Holders of Notes to be so redeemed; or

 

(ii)                              to register the transfer of or to exchange any Note so selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part; or

 

(iii)                          to register the transfer of or to exchange a Note between a Record Date and the next succeeding Interest Payment Date.

 

(f)                                Prior to due presentment for the registration of a transfer of any Note, the Trustee and the Company may deem and treat the person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of and interest on such Notes and for all other purposes, and none of the Trustee or the Company shall be affected by notice to the contrary.

 

(g)                              The Trustee will authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 3.3 of the Base Indenture.

 

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(h)                              All certifications, certificates and Opinions of Counsel required to be submitted to the Security Registrar pursuant to this Article III to effect a registration of transfer or exchange may be submitted by facsimile.

 

ARTICLE IV

 

REDEMPTION

 

The provisions of Article XI of the Base Indenture, as amended by the provisions of this Second Supplemental Indenture, shall apply to the Notes.

 

Section 4.1.                    Optional Redemption.

 

(a)                               At any time before February 28, 2025, the Company shall have the right to redeem the Notes at its option and in its sole discretion, in whole or from time to time in part.  The redemption price (“Redemption Price”) shall be equal to the sum of (1) the principal amount of the Notes being redeemed, (2) accrued and unpaid interest thereon to, but excluding, the Redemption Date, and (3) the Make-Whole Amount, if any (subject to the right of holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date).  Notwithstanding the foregoing, the Redemption Price for any redemption of the Notes on or after February 28, 2025 shall be equal to the sum of (1) the principal amount of the Notes being redeemed and (2) accrued and unpaid interest thereon to, but excluding, the Redemption Date.

 

(b)                              The Company shall not redeem the Notes pursuant to Section 4.1(a) hereof on any date if the principal amount of the Notes has been accelerated, and such an acceleration has not been rescinded or cured on or prior to such date (except in the case of an acceleration resulting from a default by the Company in the payment of the Redemption Price with respect to the Notes to be redeemed).

 

Section 4.2.                    Notice of Optional Redemption; Selection of Notes.  In case the Company shall desire to exercise the right to redeem all or, as the case may be, any part of the Notes pursuant to Section 4.1 hereof, it shall fix a date for redemption and it or, at its written request received by the Trustee not fewer than five (5) Business Days prior (or such shorter period of time as may be acceptable to the Trustee) to the date the notice of redemption is to be delivered, the Trustee in the name of and at the expense of the Company, shall deliver or cause to be delivered a notice of such redemption not fewer than thirty (30) calendar days nor more than sixty (60) calendar days prior to the Redemption Date to each Holder of Notes so to be redeemed in whole or in part at its last address as the same appears on the register; provided that if the Company makes such request of the Trustee, it shall, together with such request, also give written notice of the Redemption Date to the Trustee; provided further that the text of the notice shall be prepared by the Company.  The notice, if delivered in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not the Holder receives such notice.  In any case, failure to give such notice or any defect in the notice to the Holder of any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Note.  Any such notice of redemption may, in the Company’s sole discretion, be conditioned on the occurrence of one or more events, facts and circumstances.

 

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Each such notice of redemption shall specify: (i) the aggregate principal amount of Notes to be redeemed, (ii) the CUSIP number or numbers, if any, of the Notes being redeemed, (iii) the Redemption Date (which shall be a Business Day), (iv) the Redemption Price at which Notes are to be redeemed, (v) the place or places of payment and that payment will be made upon presentation and surrender of such Notes and (vi) that interest accrued and unpaid to, but excluding, the Redemption Date will be paid as specified in said notice, and that, unless the Company defaults in the payment of the Redemption Price, on and after said date interest thereon or on the portion thereof to be redeemed will cease to accrue.  If fewer than all the Notes are to be redeemed, the notice of redemption shall identify the Notes to be redeemed (including CUSIP numbers, if any).  In case any Note is to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be redeemed and shall state that, on and after the Redemption Date, upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion thereof will be issued.

 

Whenever any Notes are to be redeemed, the Company will give the Trustee written notice of the Redemption Date as to the aggregate principal amount of Notes to be redeemed not fewer than thirty (30) calendar days prior to the Redemption Date.

 

On or prior to the Redemption Date specified in the notice of redemption given as provided in this Section 4.2, the Company will deposit with the Paying Agent an amount of monies in immediately available funds sufficient to redeem on the Redemption Date all the Notes (or portions thereof) so called for redemption at the appropriate Redemption Price; provided that if such payment is made on the Redemption Date, it must be received by the Paying Agent, by 11:00 a.m., New York City time, on such date.

 

If less than all of the outstanding Notes are to be redeemed, the Trustee shall select the Notes or portions thereof of the Global Note or the Notes in certificated form to be redeemed (in principal amounts of $2,000 and integral multiples of $1,000 in excess thereof), on a pro rata basis or such other method the Trustee deems fair and appropriate or is required by the Depository.  The Notes (or portions thereof) so selected for redemption shall be deemed duly selected for redemption for all purposes hereof.

 

Section 4.3.                    Payment of Notes Called for Redemption by the Company.  If notice of redemption has been given as provided in Section 4.2 hereof, the Notes or portion of Notes with respect to which such notice has been given shall become due and payable on the Redemption Date and at the place or places stated in such notice at the Redemption Price, and unless the Company shall default in the payment of such Notes at the Redemption Price, so long as the Paying Agent holds funds sufficient to pay the Redemption Price of the Notes to be redeemed on the Redemption Date, then (a) such Notes will cease to be outstanding on and after the Redemption Date, (b) interest on the Notes or portion of Notes so called for redemption shall cease to accrue on and after the Redemption Date, (c) on and after the Redemption Date (unless the Company shall default in the payment of the Redemption Price), such Notes will cease to be entitled to any benefit or security under this Indenture, and (d) the Holders of the Notes shall have no right in respect of such Notes except the right to receive the Redemption Price thereof.  On presentation and surrender of such Notes at a place of payment in said notice specified, the said Notes or the specified portions thereof shall be paid and redeemed by the Company at the Redemption Price.

 

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Upon presentation of any Note redeemed in part only, the Company shall execute and the Trustee shall authenticate and make available for delivery to the Holder thereof, at the expense of the Company, a new Note or Notes, of authorized denominations, in principal amount equal to the unredeemed portion of the Notes so presented.

 

ARTICLE V

 

GUARANTEE

 

This Article V shall replace Article XIV of the Base Indenture with respect to the Notes only.

 

Section 5.1.                    Guarantee.  By its execution hereof, the Guarantor acknowledges and agrees that the Notes shall be entitled to the benefits of a Guarantee.  Accordingly, subject to the provisions of this Article V, the Guarantor hereby unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee or its successor or assign, and to the Trustee and its successors and assigns that:  (i) the principal of (including the Redemption Price upon redemption pursuant to Article IV hereof), premium, if any, and interest, if any, on the Notes shall  be duly and punctually paid in full when due, whether at the Maturity Date, upon acceleration, upon redemption or otherwise, and interest on overdue principal, premium, if any, and (to the extent permitted by law) interest on any interest, if any, on the Notes and all other obligations of the Company to the Holders or the Trustee hereunder or under the Notes (including fees, expenses or other) shall be promptly paid in full or performed, all in accordance with the terms hereof; and (ii) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at the Maturity Date, by acceleration, call for redemption or otherwise, subject, however, in the case of clauses (i) and (ii) above, to the limitations set forth in this Article V (collectively, the “Guarantee Obligations”).

 

Subject to the provisions of this Article V, the Guarantor hereby agrees that its Guarantee hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any thereof, the entry of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of the Guarantor.  The Guarantor hereby waives and relinquishes:  (a) any right to require the Trustee, the Holders or the Company (each, a “Benefited Party”) to proceed against the Company or any other person or to proceed against or exhaust any security held by a Benefited Party at any time or to pursue any other remedy in any secured party’s power before proceeding against the Guarantor; (b) any defense that may arise by reason of the incapacity, lack of authority, death or disability of any other person or persons or the failure of a Benefited Party to file or enforce a claim against the estate (in administration, bankruptcy or any other proceeding) of any other person or persons; (c) demand, protest and notice of any kind (except as expressly required by the Indenture), including but not limited to notice of the existence, creation or incurring of any new or additional indebtedness or obligation or of any action or non-action on the part of the Guarantor, any Benefited Party, any creditor of the Guarantor or the Company or on the part of any other person whomsoever in

 

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connection with any obligations the performance of which are hereby guaranteed; (d) any defense based upon an election of remedies by a Benefited Party, including but not limited to an election to proceed against the Guarantor for reimbursement; (e) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (f) any defense arising because of a Benefited Party’s election, in any proceeding instituted under the Bankruptcy Law, of the application of Section 1111(b)(2) of the Bankruptcy Law; and (g) any defense based on any borrowing or grant of a security interest under Section 364 of the Bankruptcy Law.  The Guarantor hereby covenants that, except as otherwise provided therein, the Guarantee shall not be discharged except by payment in full of all Guarantee Obligations, including, but not limited to, the principal, premium, if any, and interest on the Notes and all other costs provided for under the Indenture.

 

If any Holder or the Trustee is required by any court or otherwise to return to either the Company or the Guarantor, or any trustee or similar official acting in relation to either the Company or the Guarantor, any amount paid by the Company or the Guarantor to the Trustee or such Holder, the Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect.  The Guarantor agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any Guarantee Obligations hereby until payment in full of all such obligations guaranteed hereby.  The Guarantor agrees that, as between it, on the one hand, and the  Holders of Notes and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article V of the Base Indenture for the purposes hereof, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Guarantee Obligations, and (y) in the event of any acceleration of such obligations as provided in Article V of the Base Indenture, such Guarantee Obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantor for the purpose of the Guarantee.

 

Section 5.2.                    Execution and Delivery of Guarantee.

 

(a)                               To evidence the Guarantee set forth in Section 5.1 hereof, the Guarantor agrees that a Notation of Guarantee substantially in the form included in Exhibit B hereto shall be endorsed on each Note authenticated and delivered by the Trustee and that this Second Supplemental Indenture shall be executed on behalf of the Guarantor by an Officer of the sole general partner of the Guarantor.

 

(b)                              The Guarantor agrees that the Guarantee set forth in this Article V shall remain in full force and effect and apply to all the Notes notwithstanding any failure to endorse on each Note a notation of the Guarantee.

 

(c)                               If an Officer whose facsimile signature is on a Note or a notation of Guarantee no longer holds that office at the time the Trustee authenticates the Note on which the Guarantee is endorsed, the Guarantee shall be valid nevertheless.

 

(d)                             The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Guarantee set forth in this Second Supplemental Indenture on behalf of the Guarantor.

 

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Section 5.3.                    Limitation of Guarantor’s Liability; Certain Bankruptcy Events.

 

(a)                               The Guarantor, and by its acceptance hereof each Holder, hereby confirms that it is the intention of all such parties that the Guarantee Obligations of the Guarantor pursuant to its Guarantee not constitute a fraudulent transfer or conveyance for purposes of any Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law.  To effectuate the foregoing intention, the Holders and the Guarantor hereby irrevocably agree that the Guarantee Obligations of the Guarantor under this Article V shall be limited to the maximum amount as shall, after giving effect to all other contingent and fixed liabilities of the Guarantor, result in the Guarantee Obligations of the Guarantor under the Guarantee not constituting a fraudulent transfer or conveyance.

 

(b)                              The Guarantor hereby covenants and agrees, to the fullest extent that it may do so under applicable law, that in the event of the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company, the Guarantor shall not file (or join in any filing of), or otherwise seek to participate in the filing of, any motion or request seeking to stay or to prohibit (even temporarily) execution on the Guarantee and hereby waives and agrees not to take the benefit of any such stay of execution, whether under Section 362 or 105 of the Bankruptcy Law or otherwise.

 

Section 5.4.                    Application of Certain Terms and Provisions to the Guarantor.

 

(a)                               For purposes of any provision of the Indenture which provides for the delivery by the Guarantor of an Officers’ Certificate and/or an Opinion of Counsel, the definitions of such terms in Section 2.1 hereof shall apply to the Guarantor as if references therein to the Company or the Guarantor, as applicable, were references to the Guarantor; provided that, in the case of any Officers’ Certificate delivered by the Guarantor, the definition of the term “Officer” shall be deemed to include the general partner of the Guarantor.

 

(b)                              Upon any demand, request or application by the Guarantor to the Trustee to take any action under the Indenture, the Guarantor shall furnish to the Trustee such certificates and opinions as are required in Section 1.2 of the Base Indenture, as if all references therein to the Company were references to the Guarantor.

 

ARTICLE VI

 

ADDITIONAL COVENANTS

 

The following additional covenants shall apply with respect to the Notes so long as any of the Notes remain outstanding.

 

Section 6.1.                    Maintenance of Office or Agency.  The Company will maintain an office or agency in the United States where the Notes may be surrendered for registration of transfer or exchange or for presentation for payment or redemption and where notices and demands to or upon the Company in respect of the Notes and the Indenture may be served.  As of the date of the Indenture, such office shall be the Corporate Trust Office and, at any other time, at such other address as the Trustee may designate from time to time by notice to the Company.  The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency not designated or appointed by the Trustee.  If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office; provided that the Corporate Trust Office shall not be an office for service of legal process on the Company or any Guarantor.

 

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The Company may also from time to time designate co-registrars and one or more offices or agencies where the Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations.  The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency.

 

The Company hereby initially designates the Trustee as Paying Agent and Security Registrar and the Corporate Trust Office shall be considered as one such office or agency of the Company for each of the aforesaid purposes.

 

Section 6.2.                    Appointments to Fill Vacancies in Trustee’s Office.  The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, upon the terms and conditions and otherwise as provided in Section 6.11 of the Base Indenture, a Trustee, so that there shall at all times be a Trustee hereunder.

 

Section 6.3.                    Limitations on Incurrence of Debt.

 

(a)                               The Company will not, and will not permit any of its Subsidiaries to, incur any Debt, other than Intercompany Debt and guarantees of Debt incurred by the Company or its Subsidiaries in compliance with this Indenture, if, immediately after giving effect to the incurrence of such Debt and the application of the proceeds thereof, the aggregate principal amount of all of the Company’s and its Subsidiaries’ outstanding Debt on a consolidated basis determined in accordance with GAAP is greater than 60% of the sum of (without duplication) (1) Total Assets as of the end of the calendar quarter covered in the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Commission (or, if such filing is not permitted under the Exchange Act, with the Trustee) prior to the incurrence of such additional Debt and (2) the purchase price of any real estate assets or mortgages receivable acquired, and the amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Company or any of its Subsidiaries since the end of such calendar quarter, including those proceeds obtained in connection with the incurrence of such additional Debt.

 

(b)                              The Company will not, and will not permit any of its Subsidiaries to, incur any Debt, other than Intercompany Debt and guarantees of Debt incurred by the Company or its Subsidiaries in compliance with this Indenture, secured by any mortgage, lien, charge, pledge, encumbrance or security interest of any kind upon any of the Company’s or any of its Subsidiaries’ property if, immediately after giving effect to the incurrence of such Debt and the application of the proceeds thereof, the aggregate principal amount of all of the Company’s and its Subsidiaries’ outstanding Debt on a consolidated basis which is secured by any mortgage, lien, charge, pledge, encumbrance or security interest on the Company’s or its Subsidiaries’ 

 

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property is greater than 40% of the sum of (without duplication) (1) Total Assets as of the end of the calendar quarter covered in the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Commission (or, if such filing is not permitted under the Exchange Act, with the Trustee) prior to the incurrence of such additional Debt and (2) the purchase price of any real estate assets or mortgages receivable acquired, and the amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), by the Company or any of its Subsidiaries since the end of such calendar quarter, including those proceeds obtained in connection with the incurrence of such additional Debt; provided that for purposes of this limitation, the amount of obligations under capital leases shown as a liability on the Company’s consolidated balance sheet shall be deducted from Debt and from Total Assets.

 

(c)                               The Company will not, and will not permit any of its Subsidiaries to, incur any Debt, other than Intercompany Debt and guarantees of Debt by the Company or its Subsidiaries in compliance with this Indenture, if the ratio of Consolidated EBITDA to Interest Expense for the four consecutive fiscal quarters most recently ended prior to the date on which such additional Debt is to be incurred shall have been less than 1.5 to 1.0, on an unaudited pro forma basis after giving effect to the incurrence of such additional Debt and to the application of the proceeds therefrom, and calculated on the assumption that:  (1) such Debt and any other Debt incurred by the Company and its Subsidiaries since the first day of such four-quarter period and the application of the proceeds therefrom, including to refinance other Debt, had occurred at the beginning of such period (except that, in making such computation, the amount of Debt under any revolving credit  facility shall be computed based on the average daily balance of such Debt during such period); (2) the repayment or retirement of any other Debt by the Company and its Subsidiaries since the first day of such four-quarter period had been repaid or retired at the beginning of such period (except that, in making such computation, the amount of Debt under any revolving credit facility shall be computed based upon the average daily balance of such Debt during such period); (3) in the case of Acquired Debt or Debt incurred in connection with any acquisition since the first day of such four-quarter period, the related acquisition had occurred as of the first day of such period, with the appropriate adjustments with respect to such acquisition being included in such unaudited pro forma calculation; and (4) in the case of any acquisition or disposition by the Company or its Subsidiaries of any asset or group of assets or other placement of any assets in service or removal of any assets from service by the Company or any of its Subsidiaries since the first day of such four-quarter period, whether by merger, stock purchase or sale, or asset purchase or sale, such acquisition, disposition, placement in service or removal from service, or any related repayment of Debt had occurred as of the first day of such period, with the appropriate adjustments with respect to such acquisition, disposition, placement in service or removal from service, being included in such unaudited pro forma calculation and determined reasonably and in good faith by the Company. If the Debt giving rise to the need to make the foregoing calculation or any other Debt incurred after the first day of the relevant four-quarter period bears interest at a floating rate then, for purposes of calculating the Interest Expense, the interest rate on such Debt shall be computed on a pro forma basis as if the average interest rate which would have been in effect during the entire such four-quarter period had been the applicable rate for the entire such period.

 

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(d)                             The Company, together with its Subsidiaries, will at all times maintain an Unencumbered Total Asset Value in an amount not less than 150% of the aggregate outstanding principal amount of all the Company’s and its Subsidiaries’ unsecured Debt, taken as a whole.

 

(e)                               The Company will, and will cause each of its Subsidiaries to, maintain insurance with financially sound and reputable insurance companies against such risks and in such amounts as is customarily maintained by persons engaged in similar businesses or as may be required by applicable law.

 

ARTICLE VII

 

DEFAULTS AND REMEDIES

 

Sections 7.1, 7.2, 7.3 and 7.4 hereof shall replace Sections 5.1, 5.2, 5.7, and 6.2 respectively, of the Base Indenture with respect to the Notes only.

 

Section 7.1.                    Events of Default.

 

“Event of Default,” wherever used herein or in the Base Indenture with respect to the Notes, means any one of the following events:

 

(a)                               default in the payment of any interest on the Notes when it becomes due and payable, and continuance of that default for a period of thirty (30) days (unless the entire amount of the payment is deposited by the Company with the Trustee or with a Paying Agent prior to the expiration of such 30-day period);

 

(b)                              default in the payment of principal of, premium on or Redemption Price due with respect to, the Notes when the same become due and payable;

 

(c)                               failure to pay any Debt of the Company, the Guarantor or any Significant Subsidiary in an outstanding principal amount in excess of $50,000,000 at final maturity or upon acceleration after the expiration of any applicable grace period, which Debt is not discharged, or such default in payment or acceleration is not cured or rescinded, within sixty (60) calendar days after written notice to the Company from the Trustee (or to the Company and the Trustee from Holders of at least 25% in aggregate principal amount of the Notes then outstanding);

 

(d)                             except as permitted by the Indenture and the Notes, the Guarantee by the Guarantor shall cease to be in full force and effect or the Guarantor shall deny or disaffirm its obligations with respect thereto;

 

(e)                               default in the performance or breach of any other covenant or warranty by the Company or the Guarantor in the Indenture (other than a covenant or warranty that has been included in the Indenture solely for the benefit of a series of debt securities other than the Notes), which default continues uncured for a period of ninety (90) calendar days after the Company receives written notice from the Trustee or the Company and the Trustee receive written notice from the Holders of at least 25% in aggregate principal amount of the Notes then outstanding; and

 

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(f)                                the Company, the Guarantor or any Significant Subsidiary pursuant to or under or within meaning of any Bankruptcy Law:

 

(i)                                  commences a voluntary case or proceeding seeking liquidation, reorganization or other relief with respect to the Company, the Guarantor or a Significant Subsidiary or its debts or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company, the Guarantor or a Significant Subsidiary or any substantial part of the property of the Company, the Guarantor or a Significant Subsidiary; or

 

(ii)                              consents to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against the Company, the Guarantor or a Significant Subsidiary; or

 

(iii)                          consents to the appointment of a Custodian of it or for all or substantially of its property; or

 

(iv)                          makes a general assignment for the benefit of creditors; or

 

(v)                              generally is unable to pay its debts as the same become due, or

 

(g)                              an involuntary case or other proceeding shall be commenced against the Company, the Guarantor or any Significant Subsidiary seeking liquidation, reorganization or other relief with respect to the Company, the Guarantor or a Significant Subsidiary or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company, the Guarantor or a Significant Subsidiary or any substantial part of the property of the Company,  the Guarantor or a Significant Subsidiary, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of sixty (60) calendar days; or

 

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

 

(i)                                  is for relief against the Company, the Guarantor or any of Significant Subsidiary in an involuntary case or proceeding;

 

(ii)                              appoints a Custodian of the Company, the Guarantor or a Significant Subsidiary or any substantial part of the property of the Company, the Guarantor or a Significant Subsidiary; or

 

(iii)                          orders the liquidation of the Company, the Guarantor or a Significant Subsidiary; and, in each case in this clause (h), the order or decree remains unstayed and in effect for sixty (60) calendar days.

 

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

 

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Section 7.2.                    Acceleration of Maturity; Rescission and Annulment.  If an Event of Default with respect to the Notes at the time outstanding occurs and is continuing (other than an Event of Default referred to in Section 7.1 (f), (g) or (h) hereof), then in every such case the Trustee or the Holders of not less than 25% in principal amount of the outstanding Notes may, by a notice in writing to the Company (and to the Trustee if given by the Holders), declare to be due and payable immediately the principal of, and accrued and unpaid interest, if any, on all of the Notes, and upon any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately due and payable.  If an Event of Default specified in Section 7.1 (f), (g) or (h) hereof shall occur, the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Notes will automatically become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder of outstanding Notes.

 

At any time after a declaration of acceleration with respect to Notes has been made, but before a judgment or decree for payment of the money due has been obtained by the Trustee, the Holders of a majority in principal amount of the outstanding Notes, by written notice to the Company and the Trustee, may rescind and annul such declaration and the acceleration if all Events of Default, other than the non-payment of accelerated principal and interest, if any, with respect to the Notes, have been cured or waived as provided in Section 5.13 of the Base Indenture.  No such rescission and annulment shall extend to or shall affect any subsequent default or Event of Default, or shall impair any right consequent thereon.

 

Section 7.3.                    Limitation on Suits.  No Holder of the Notes shall have any right to institute any proceeding, judicial or otherwise, with respect to the Indenture or for the appointment of a receiver or trustee, or for any remedy under the Indenture, unless:

 

(a)                               such Holder has previously given to the Trustee written notice of a continuing Event of Default with respect to the Notes;

 

(b)                              the Holders of at least 25% in principal amount of the outstanding Notes shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder,

 

(c)                               such Holder or Holders have offered to the Trustee indemnity reasonably satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such request;

 

(d)                             the Trustee for sixty (60)  days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and

 

(e)                               no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of at least 25% in principal amount of the outstanding Notes.

 

Section 7.4.                    Notice of Defaults.  If an Event of Default occurs and is continuing with respect to the Notes and if it is actually known to a Responsible Officer of the Trustee, the Trustee will send to Holders of Notes a notice of the Default or Event of Default within 90 days after it occurs, unless such default shall have been cured or waived.  Except in the case of a Default or Event of Default in payment of principal of, premium, if any, or interest on the Notes, the Trustee may withhold the notice if and so long as a Responsible Officer determines that withholding the notice is in the interests of the Holders of the Notes.

 

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ARTICLE VIII

 

AMENDMENTS AND WAIVERS

 

Section 8.1 hereof shall replace Section 9.1 of the Base Indenture with respect to the Notes only.

 

Section 8.1.                    Without Consent of Holders.  The Company, when authorized by the resolutions of the Board of Directors, the Guarantor and the Trustee may, from time to time, and at any time enter into an indenture or indentures supplemental without the consent of the Holders of the Notes hereto for one or more of the following purposes:

 

(a)                               to cure any ambiguity, defect or inconsistency in the Indenture; provided that this action shall not adversely affect the interests of the Holders of the Notes in any material respect, as determined by the Board of Directors of the Company;

 

(b)                              to evidence a successor to the Company as obligor or to the Guarantor as guarantor in accordance with Section 8.4 of the Base Indenture;

 

(c)                               to make any change that does not adversely affect the interests of the Holders of any Notes then outstanding;

 

(d)                             to provide for the issuance of Additional Notes in accordance with the limitations set forth in the Indenture;

 

(e)                               to provide for the acceptance of appointment of a successor Trustee or facilitate the administration of the trusts under the Indenture by more than one Trustee;

 

(f)                                to comply with the requirements of the Commission in order to effect or maintain the qualification of the Indenture under the Trust Indenture Act;

 

(g)                              to reflect the release of the Guarantor as guarantor, in accordance with the Indenture;

 

(h)                              to secure the Notes;

 

(i)                                  to add guarantors with respect to the Notes; and

 

(j)                                  to conform the text of the Indenture, any Guarantee or the Notes to any provision of the description thereof set forth in the Prospectus to the extent that such provision in the Prospectus was intended to be a verbatim recitation of a provision of the Indenture, such Guarantee or the Notes (as certified in an Officers’ Certificate).

 

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Upon the written request of the Company, accompanied by a copy of the resolutions of each of the Board of Directors of the Company and the Board of Directors of the sole general partner of the Guarantor authorizing the execution of any supplemental indenture and the delivery of the documents required by Section 9.3 of the Base Indenture, the Trustee is hereby authorized to join with the Company and the Guarantor in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations that may be therein contained and to accept the conveyance, transfer and assignment of any property thereunder, but the Trustee shall not be obligated to, but may in its discretion, enter into any supplemental indenture that affects the Trustee’s own rights, duties or immunities under the Indenture or otherwise.

 

Any supplemental indenture authorized by the provisions of this Section 8.1 may be executed by the Company, the Guarantor and the Trustee without the consent of the Holders of any of the Notes at the time outstanding, notwithstanding any of the provisions of Section 9.2 of the Base Indenture.

 

ARTICLE IX

 

MEETINGS OF HOLDERS OF NOTES

 

Section 9.1.                    Purposes for Which Meetings May Be Called.  A meeting of Holders may be called at any time and from time to time pursuant to this Article IX to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other act provided by the Indenture to be made, given or taken by Holders.

 

Section 9.2.                    Call, Notice and Place of Meetings.

 

(a)                               The Trustee may at any time call a meeting of Holders for any purpose specified in Section 9.1 hereof, to be held at such time and at such place as the Trustee shall determine.  Notice of every meeting of Holders, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be given, in the manner provided in Section 1.6 of the Base Indenture, not less than twenty-one (21) nor more than one hundred eighty (180) days prior to the date fixed for the meeting.

 

(b)                              In case at any time the Company, the Guarantor or the Holders of at least 25% in principal amount of the outstanding Notes shall have requested the Trustee to call a meeting of the Holders for any purpose specified in Section 9.1 hereof, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed notice of or made the first publication of the notice of such meeting within twenty-one (21) days after receipt of such request or shall not thereafter proceed to cause the meeting to be held as provided herein, then the Company, the Guarantor, if applicable, or the Holders in the amount above specified, as the case may be, may determine the time and the place for such meeting and may call such meeting for such purposes by giving notice thereof as provided in clause (a) of this Section.

 

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Section 9.3.                    Persons Entitled to Vote at Meetings.  To be entitled to vote at any meeting of Holders, a person shall be (1) a Holder of one or more outstanding Notes, or (2) a person appointed by an instrument in writing as proxy for a Holder or Holders of one or more outstanding Notes by such Holder or Holders; provided, that none of the Company, any other obligor upon the Notes or any Affiliate of the Company shall be entitled to vote at any meeting of Holders or be counted for purposes of determining a quorum at any such meeting in respect of any Notes owned by such persons.  The only persons who shall be entitled to be present or to speak at any meeting of Holders shall be the persons entitled to vote at such meeting and their counsel, any representatives of the Trustee and its counsel, any representatives of the Guarantor and its counsel and any representatives of the Company and its counsel.

 

Section 9.4.                    Quorum; Action.  The persons entitled to vote a majority in principal amount of the outstanding Notes shall constitute a quorum for a meeting of Holders; provided, however, that if any action is to be taken at the meeting with respect to a consent or waiver which may be given by the Holders of not less than a specified percentage in principal amount of the outstanding Notes, the persons holding or representing the specified percentage in principal amount of the outstanding Notes will constitute a quorum.  In the absence of a quorum within thirty (30) minutes after the time appointed for any such meeting, the meeting shall, if convened at the request of Holders, be dissolved.  In any other case the meeting may be adjourned for a period of not less than ten (10) days as determined by the chairman of the meeting prior to the adjournment of such meeting.  In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less than ten (10) days as determined by the chairman of the meeting prior to the adjournment of such adjourned meeting.  Notice of the reconvening of any adjourned meeting shall be given as provided in Section 9.2 hereof, except that such notice need be given only once not less than five (5) days prior to the date on which the meeting is scheduled to be reconvened.  Notice of the reconvening of an adjourned  meeting shall state expressly the percentage, as provided above, of the principal amount of the outstanding Notes which shall constitute a quorum.

 

Except as limited by Section 9.2 of the Base Indenture, any resolution presented to a meeting or adjourned meeting duly reconvened at which a quorum is present as aforesaid may be adopted only by the affirmative vote of the Holders of a majority in principal amount of the outstanding Notes; provided, however, that, except as limited by Section 9.2 of the Base Indenture, any resolution with respect to any request, demand, authorization, direction, notice, consent, waiver or other action which the Indenture expressly provides may be made, given or taken by the Holders of a specified percentage, which is less than a majority, in principal amount of the outstanding Notes may be adopted at a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid by the affirmative vote of the Holders of such specified percentage in principal amount of the outstanding Notes.

 

Any resolution passed or decision taken at any meeting of Holders duly held in accordance with this Section 9.4 shall be binding on all the Holders, whether or not such Holders were present or represented at the meeting.

 

Section 9.5.                    Determination of Voting Rights; Conduct and Adjournment of Meetings.

 

(a)                               Notwithstanding any other provisions of the Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Holders in regard to proof of the holding of Notes and of the appointment of proxies and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate.

 

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(b)                              The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Holders as provided in Section 9.2(b) hereof, in which case the Company, the Guarantor or the Holders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman.  A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the persons entitled to vote a majority in principal amount of the outstanding Notes of such series represented at the meeting.

 

(c)                               At any meeting, each Holder or proxy shall be entitled to one (1) vote for each $1,000 principal amount of Notes held or represented by him; provided, however, that no vote shall be cast or counted at any meeting in respect of any Note challenged as not outstanding and ruled by the chairman of the meeting to be not outstanding.  The chairman of the meeting shall have no right to vote, except as a Holder or proxy.

 

(d)                             Any meeting of Holders duly called pursuant to Section 9.2 hereof at which a quorum is present may be adjourned from time to time by persons entitled to vote a majority in principal amount of the outstanding Notes represented at the meeting; and the meeting may be held as so adjourned without further notice.

 

Section 9.6.                    Counting Votes and Recording Action of Meetings.  The vote upon any resolution submitted to any meeting of Holders shall be by written ballots on which shall be subscribed the signatures of the Holders or of their representatives by proxy and the principal amounts and serial numbers of the outstanding Notes held or represented by them.  The permanent chairman of the meeting shall appoint two (2) inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in triplicate of all votes cast at the meeting.  A record, at least in triplicate, of the proceedings of each meeting of Holders shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was given as provided in Section 9.2 hereof and, if applicable, Section 9.4 hereof.  Each copy shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one (1) such copy shall be delivered to the Company and the Guarantor, and another to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.  Any record so signed and verified shall be conclusive evidence of the matters therein stated.

 

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ARTICLE X

 

MISCELLANEOUS PROVISIONS

 

Section 10.1.            Ratification of Indenture.  Except as expressly modified or amended hereby, the Indenture continues in full force and effect and is in all respects confirmed and preserved.

 

Section 10.2.            Governing Law.  This Second Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York.  This Second Supplemental Indenture is subject to the provisions of the Trust Indenture Act and shall, to the extent applicable, be governed by such provisions.

 

Section 10.3.            Counterparts.  This Second Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.  The exchange of copies of this Second Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Second Supplemental Indenture as to the parties hereto and may be used in lieu of an original of this Second Supplemental Indenture and signature pages for all purposes.

 

Section 10.4.            Notices to Holders.  Except as otherwise provided in the Indenture, notices to Holders of the Notes will be given by mail to the addresses of Holders of the Notes as they appear in the Note register; provided that notices given to Holders holding Notes in book-entry form may be given electronically through the facilities of the Depository or any successor depository.

 

Section 10.5.            Successors and Assigns.  This Second Supplemental Indenture shall be binding upon the Company and each Guarantor, and their respective successors and assigns and inure to the benefit of the respective successors and assigns of the Trustee and the Holders.

 

Section 10.6.            Time of the Essence.  Time is of the essence with regard to the Company’s and the Guarantors’ performance of their respective obligations hereunder.

 

Section 10.7.            Rights of Holders Limited.  Notwithstanding anything herein to the contrary, the rights of Holders with respect to this Second Supplemental Indenture and the Guarantee shall be limited in the manner and to the extent the rights of Holders are limited under the Indenture with respect to the Indenture and the Securities.

 

Section 10.8.            Rights and Duties of Trustee.  The rights and duties of the Trustee shall be determined by the express provisions of the Base Indenture and, except as expressly set forth in this Second Supplemental Indenture, nothing in this Second Supplemental Indenture shall in any way modify or otherwise affect the Trustee’s rights and duties thereunder.  The Trustee makes no representation or warranty, express or implied, as to the validity of this Second Supplemental Indenture and, except insofar as relates to the validity hereof with respect to the Trustee specifically, the Trustee shall not be liable in connection therewith.  The Trustee makes no representation or warranty, express or implied, as to the accuracy or completeness of any information contained in any offering or disclosure document related to the sale of the Notes, 

 

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except for such information that specifically pertains to the Trustee itself, or any information incorporated therein by reference as it relates specifically to the Trustee.  If and when the Trustee shall be or become a creditor of the Company (or any other obligor upon the Notes), excluding any creditor relationship listed in Trust Indenture Act Section 311(b), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of claims against the Company (or any such other obligor).  If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and the Indenture.

 

Section 10.9.            Notices.  Any notice or communication by the Company, the Guarantor or the Trustee made pursuant to the provisions of the Indenture or the Notes shall be in writing, including facsimile, and delivered in person, delivered by commercial courier service or mailed by first-class mail, postage prepaid, addressed as follows:

 

if to the Company or the Guarantor:

 

Alexandria Real Estate Equities, Inc.
 385 Colorado Boulevard, Suite 299 
 Pasadena, California 91101 
 Attention:  General Counsel 
 Telephone:  (626) 578-0777 
 Facsimile:  (626) 578-0770

 

if to the Trustee:

 

Branch Banking and Trust Company 
 223 West Nash Street

Wilson, North Carolina 27893

Attention: Greg Yanok
 Telephone: 252-246-4679
 Facsimile: 252-246-4303

 

Any notice or communication by the Company, the Guarantor or the Trustee to the Company or the Guarantor, or by a Holder of the Notes to the Company or the Guarantor, shall be deemed given or made as of the date delivered if delivered in the manner provided above.  Notwithstanding any other provision herein, any notice or communication to the Trustee shall only be deemed delivered upon receipt.

 

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

 

Any notice or communication to a Holder of the Notes shall be delivered to his address shown on the register kept by the Security Registrar.  Failure to mail a notice or communication to a Holder of the Notes or any defect in it shall not affect its sufficiency with respect to other Holders of the Notes or any other series of Securities.

 

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If a notice or communication is delivered in the manner provided above, within the time prescribed, it is duly given, whether or not the Holder receives it.  If a notice or communication is delivered in person, by courier or by facsimile transmission (with confirmation of receipt) within the time prescribed, it is duly given.

 

If the Company or the Guarantor mails a notice or communication to Holders, it shall mail a copy to the Trustee at the same time.

 

Section 10.10.    Headings, etc.  The headings of the Articles and Sections of this Second Supplemental Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 10.11.    Conflicts.  In the event of any conflict between the terms of this Second Supplemental Indenture and the terms of the Indenture, the terms of this Second Supplemental Indenture shall control.

 

Section 10.12.    Trust Indenture Act Controls.  If any provision of this Second Supplemental Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Second Supplemental Indenture by the Trust Indenture Act, such required or deemed provision shall control.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be duly executed by their respective officers hereunto duly authorized, all as of the day and year first written above.

 

	
 
    	
ALEXANDRIA REAL   ESTATE EQUITIES, INC., Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dean A.   Shigenaga
    
	
 
    	
 
    	
Name: Dean A.   Shigenaga
    
	
 
    	
 
    	
Title: Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ALEXANDRIA REAL   ESTATE EQUITIES, L.P., Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
ARE-QRS Corp.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dean A.   Shigenaga
    
	
 
    	
 
    	
Name: Dean A.   Shigenaga
    
	
 
    	
 
    	
Title: Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BRANCH   BANKING AND TRUST COMPANY,
    
	
 
    	
as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gregory Yanok
    
	
 
    	
 
    	
Name: Gregory   Yanok
    
	
 
    	
 
    	
Title: Vice   President
    

 

[Signature Page to Second Supplemental Indenture]

 

 

EXHIBIT A

 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY (AS DEFINED IN THE BASE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 3.12 OF THE SECOND SUPPLEMENTAL INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE OR IN PART PURSUANT TO SECTION 3.12 OF THE SECOND SUPPLEMENTAL INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 3.9 OF THE BASE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

A-1

 

ALEXANDRIA REAL ESTATE EQUITIES, INC. 
  3.45% SENIOR NOTES DUE 2025

 

No. [·]

 

CUSIP No.:  015271 AL3

 

ISIN:  US015271 AL39

 

$[·]

 

Alexandria Real Estate Equities, Inc., a Maryland corporation (herein called the “Company,” which term includes any successor entity under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to Cede & Co., or its registered assigns, the principal sum of [·] DOLLARS ($[·]), or such lesser amount as is set forth in the Schedule of Exchanges of Interests in the Global Note on the other side of this Note, on April 30, 2025 at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, semi-annually on April 30 and October 30 of each year, commencing April 30, 2018, on said principal sum at said office or agency, in like coin or currency, at the rate per annum of 3.45%, from the April 30 or October 30, as the case may be, next preceding the date of this Note to which interest has been paid or duly provided for, unless no interest has been paid or duly provided for on the Notes, in which case from November 20, 2017 until payment of said principal sum has been made or duly provided for.  The Company shall pay interest to Holders of record of the Notes on the April 15 or October 15 preceding the applicable April 30 or October 30 interest payment date, respectively, in accordance with the terms of the Indenture.  The Company shall pay interest on any Notes in certificated form by check mailed to the address of the person entitled thereto as it appears in the register; provided, however, that a Holder of any Notes in certificated form in the aggregate principal amount of more than $2.0 million may specify by written notice to the Company that it pay interest by wire transfer of immediately available funds to the account specified by the Holder in such notice, or on any Global Note by wire transfer of immediately available funds to the account of the Depository or its nominee.

 

The Company promises to pay interest on overdue principal, premium, if any, and (to the extent that payment of such interest is enforceable under applicable law) interest at the rate of 1% per annum above the rate borne by the Notes.

 

Reference is made to the further provisions of this Note set forth on the reverse hereof and the Indenture governing this Note.  Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed manually by the Trustee or a duly authorized authenticating agent under the Indenture.

 

A-2

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.

 

Dated: _______, 2017

 

	
 
    	
ALEXANDRIA REAL   ESTATE EQUITIES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: Dean A.   Shigenaga
    
	
 
    	
 
    	
Title: Chief   Financial Officer
    

 

A-3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

 

This is one of the Notes described in the within-named Indenture.

 

Dated: _______, 2017

 

	
 
    	
Branch   Banking and Trust Company, as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signatory
    

 

A-4

 

[FORM OF REVERSE SIDE OF NOTE]

 

ALEXANDRIA REAL ESTATE EQUITIES, INC. 
  3.45% SENIOR NOTES DUE 2025

 

This Note is one of a duly authorized issue of Securities of the Company, designated as its 3.45% Senior Notes due 2025 (herein called the “Notes”), issued under and pursuant to an Indenture dated as of March 3, 2017 (herein called the “Base Indenture”), among the Company, the Guarantor and Branch Banking and Trust Company, as trustee (herein called the “Trustee”), as supplemented by the Supplemental Indenture No. 2, dated as of November 20, 2017 (herein called the “Second Supplemental Indenture,” and together with the Base Indenture, the “Indenture”), to which Indenture and any indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company, the Guarantor and the Holders of the Notes.  Capitalized terms used but not otherwise defined in this Note shall have the respective meanings ascribed thereto in the Indenture.  In the event of any conflict between the terms of this Note and the terms of the Indenture, the terms of the Indenture control.

 

If an Event of Default (other than an Event of Default specified in Sections 7.1(f), 7.1(g) and 7.1(h) of the Second Supplemental Indenture) occurs and is continuing, the principal of, premium, if any, and accrued and unpaid interest on all Notes may be declared to be due and payable by either the Trustee or the Holders of at least 25%  in aggregate principal amount of the Notes then outstanding, and, upon said declaration the same shall be immediately due and payable.  If an Event of Default specified in Sections 7.1(f), 7.1(g) and 7.1(h) of the Second Supplemental Indenture occurs, the principal of and premium, if any, and interest accrued and unpaid on all the Notes shall be immediately and automatically due and payable without necessity of further action.

 

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the Holders of the Notes, subject to exceptions set forth in Section 9.2 of the Base Indenture.  Subject to the provisions of the Indenture, the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding may, on behalf of the Holders of all of the Notes, waive any past Default or Event of Default, subject to exceptions set forth in the Indenture.

 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall impair, as among the Company and the Holder of the Notes, the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, on and interest on this Note at the place, at the respective times, at the rate and in the coin or currency prescribed herein and in the Indenture.

 

Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months.

 

A-5

 

The Notes are issuable in fully registered book-entry form, without coupons, in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.  At the office or agency of the Company referred to on the face hereof, and in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but with payment of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in connection with any registration or exchange of Notes, Notes may be exchanged for a like aggregate principal amount of Notes of any other authorized denominations.

 

The Company shall have the right to redeem the Notes under certain circumstances as set forth in Article IV of the Second Supplemental Indenture.

 

The Notes are not subject to redemption through the operation of any sinking fund.

 

Except as expressly provided in Article V of the Second Supplemental Indenture, no recourse for the payment of the principal of or any premium or interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or any supplemental indenture or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, limited partner, member, manager, employee, agent, officer, director or subsidiary, as such, past, present or future, of the Guarantor, the Company or any of the Company’s Subsidiaries or of any successor thereto, either directly or through the Guarantor, the Company or any of the Company’s Subsidiaries or of any successor thereto, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as consideration for, the execution of the Indenture and the issue of this Note.

 

A-6

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

	
(I) or (we) assign and transfer this Note to:
    	
 
    	
 
    
	
 
    	
 
    	
(Insert assignee’s legal name)
    

 

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

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

 

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

 

Date:

 

	
 
    	
Your
    	
 
    
	
 
    	
Signature:
    	
 
    
	
 
    	
(Sign exactly as your   name appears on the face of this Note)
    

 

	
Signature Guarantee*:
    	
 
    	
 
    

 

 

 

––––––––––––––

*                  Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

A-7

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

 

The following exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, have been made:

 

	
Date of Exchange
    	
 
    	
Amount of decrease in 
   principal amount at 
   maturity of this Global 
   Note
    	
 
    	
Amount of increase in 
   principal amount at 
   maturity of this Global 
   Note
    	
 
    	
Principal amount at 
   maturity of this Global 
   Note following such 
   decrease (or increase)
    	
 
    	
Signature of authorized 
   signatory of Trustee or 
   Custodian
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

A-8

 

EXHIBIT B

 

NOTATION OF GUARANTEE

 

The Guarantor listed below (hereinafter referred to as the “Guarantor,” which term includes any successors or assigns under the Indenture, dated as of March 3, 2017, among the Guarantor, the Company and Branch Banking and Trust Company, as trustee (the “Base Indenture”), as supplemented by the Supplemental Indenture No. 2, dated as of the date hereof (the “Second Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), has fully, unconditionally and absolutely guaranteed on a senior basis the Guarantee Obligations (as defined in Section 5.1 of the Second Supplemental Indenture), which include (i) the due and punctual payment of the principal of, premium, if any, and interest, if any, on the 3.45% Senior Notes due 2025 (the “Notes”) to which this notation is affixed, whether at maturity, by acceleration, call for redemption or otherwise, the due and punctual payment of interest on the overdue principal and premium, if any, and (to the extent permitted by law) interest on any interest on the Notes, and the due and punctual performance of all other obligations of the Company, to the Holders of the Notes or the Trustee all in accordance with the terms set forth in Article V of the Second Supplemental Indenture, and (ii) in case of any extension of time of payment or renewal of any Notes or any such other obligations, that the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at maturity, by acceleration, call for redemption or otherwise.

 

The obligations of such Guarantor to the Holders of Notes to which this notation is affixed and to the Trustee pursuant to the Guarantee and the Indenture are expressly set forth in Article V of the Second Supplemental Indenture and reference is hereby made to the Indenture for the precise terms of the Guarantee.

 

No past, present or future director, officer, limited partner, employee, incorporator or stockholder (direct or indirect) of the Guarantor (or any such successor entity), as such, shall have any liability for any obligations of the Guarantor under this Guarantee or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.

 

The Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of merger or bankruptcy of the Company, any right to require a proceeding first against the Company, the benefit of discussion, protest or notice with respect to the Notes and all demands whatsoever.

 

This is a continuing Guarantee and shall remain in full force and effect and shall be binding upon the Guarantor and its successors and assigns until full and final payment of all of the Company’s obligations under the Notes and Indenture or until legally discharged in accordance with the Indenture and shall inure to the benefit of the successors and assigns of the Trustee and the Holders of the Notes, and, in the event of any transfer or assignment of rights by any Holder of the Notes or the Trustee, the rights and privileges herein conferred upon that party shall automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions hereof.  This is a Guarantee of payment and performance and not of collectability.

 

B-1

 

This Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Note upon which this Guarantee is noted shall have been executed by the Trustee under the Indenture by the manual signature of one of its authorized officers.

 

The obligations of the Guarantor under this Guarantee shall be limited to the extent necessary to insure that it does not constitute a fraudulent conveyance under applicable law.  This Guarantee shall be governed by and construed in accordance with the laws of the State of New York.

 

THE TERMS OF ARTICLE V OF THE SECOND SUPPLEMENTAL INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

 

Capitalized terms used herein have the same meanings given in the Indenture unless otherwise indicated.

 

	
 
    	
ALEXANDRIA   REAL ESTATE EQUITIES, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
ARE-QRS   Corp., its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:   _______, 2017
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:   Dean A. Shigenaga
    
	
 
    	
 
    	
Title:   Chief Financial Officer
    

 

B-2Exhibit 4.04

 

CONFIDENTIAL
TREATMENT REQUESTED. CERTAIN PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND,
WHERE APPLICABLE, HAVE BEEN MARKED WITH AN ASTERISK TO DENOTE WHERE OMISSIONS HAVE BEEN MADE. THE CONFIDENTIAL MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

 

 

 

 

 

 

 

 

 

 

AMENDED AND RESTATED

 

 

STOCKHOLDER AGREEMENT

 

 

Dated as of August 7, 2017

 

 

 

 

 

 

 

 

 

     

     

    

TABLE OF CONTENTS

 

 

	 	 	 	 	Page
	 	 	 	 	 
	ARTICLE I
	 	 	 	 	 
	DEFINITIONS
	 	 	 	 	 
	Section 1.1. 	 	Definitions	 	2
	Section 1.2. 	 	General Interpretive Principles 	 	6
	 	 	 	 	 
	ARTICLE II
	 	 	 	 	 
	GOVERNANCE
	 	 	 	 	 
	Section 2.1. 	 	Board of Directors	 	7
	 	 	 	 	 
	ARTICLE III
	 	 	 	 	 
	TRANSFER RESTRICTIONS
	 	 	 	 	 
	Section 3.1. 	 	General Transfer Restrictions 	 	10
	Section 3.2. 	 	Specific Transfer Restrictions	 	10
	Section 3.3. 	 	Permitted Transfers. 	 	11
	 	 	 	 	 
	ARTICLE IV
	 	 	 	 	 
	SHARE OWNERSHIP
	 	 	 	 	 
	Section 4.1. 	 	Standstill 	 	12
	Section 4.2. 	 	Preemptive Rights	 	13
	 	 	 	 	 
	ARTICLE V
	 	 	 	 	 
	REGISTRATION RIGHTS
	 	 	 	 	 
	Section 5.1. 	 	Certain Definitions	 	16
	Section 5.2. 	 	Registration	 	17
	Section 5.3. 	 	Piggyback Registration	 	21
	Section 5.4. 	 	Expenses of Registration	 	22
	Section 5.5. 	 	Obligations of the Company 	 	23
	Section 5.6. 	 	Indemnification	 	25
	Section 5.7. 	 	Information by Holder 	 	27
	Section 5.8. 	 	Transfer of Registration Rights	 	27
	Section 5.9. 	 	Delay of Registration 	 	27
	Section 5.10. 	 	Termination of Registration Rights 	 	27

 

     

     

    

	ARTICLE VI
	 	 	 	 	 
	ADDITIONAL AGREEMENTS OF THE PARTIES
	 	 	 	 	 
	Section 6.1.	 	Protective Provisions	 	28
	Section 6.2.	 	Right of First Negotiation; Toll Manufacturing Option.	 	28
	Section 6.3.	 	Further Assurances	 	29
	Section 6.4.	 	Tranche II Funding	 	29
	 	 	 	 	 
	ARTICLE VII
	 	 	 	 	 
	TERMINATION
	 	 	 	 	 
	Section 7.1.	 	Termination	 	30
	 	 	 	 	 
	ARTICLE VIII
	 	 	 	 	 
	MISCELLANEOUS
	 	 	 	 	 
	Section 8.1.	 	Entire Agreement 	 	30
	Section 8.2.	 	Specific Performance	 	30
	Section 8.3.	 	Governing Law 	 	30
	Section 8.4.	 	Amendment and Waiver 	 	30
	Section 8.5.	 	Binding Effect	 	31
	Section 8.6.	 	Notices 	 	31
	Section 8.7.	 	Severability 	 	31
	Section 8.8.	 	Counterparts	 	31

 

     

     

    

AMENDED AND RESTATED 

 

STOCKHOLDER AGREEMENT 

 

This AMENDED AND RESTATED STOCKHOLDER
AGREEMENT is made as of August 7, 2017, by and between Amyris, Inc., a Delaware corporation (“Amyris” or the
“Company”), and DSM International B.V., a Dutch limited liability company (hereinafter referred to as “DSM”).

 

WHEREAS, the Company and DSM previously
entered into that certain Stockholder Agreement dated as of May 11, 2017 (the “Prior Agreement”).

 

WHEREAS, DSM and Company and certain other
investors previously entered into that certain Securities Purchase Agreement, dated as of May 8, 2017 (as may be amended from time
to time, the “Prior Securities Purchase Agreement”), pursuant to which, upon the terms and subject to the conditions
set forth therein, DSM purchased (i) 25,000 shares (the “Tranche I Shares”) of the 17.38% Series B Convertible
Preferred Stock, par value $0.0001 per share, of the Company (the “Preferred Stock”), (ii) warrants (the “Tranche
I Cash Warrants”) to acquire up to 3,968,116 shares of the common stock, $0.0001 per share (the “Common Stock”),
of the Company (such shares, the “Tranche I Cash Warrant Shares”), and (iii) additional warrants to purchase
shares of Common Stock as a result of certain dilutive issuances by the Company (the “Tranche I Anti-Dilution Warrants”
and, together with the Tranche I Cash Warrants, the “Tranche I Warrants,” and the shares of Common Stock issuable
upon exercise of the Tranche I Anti-Dilution Warrants, the “Tranche I Anti-Dilution Warrant Shares” and, together
with the Tranche I Cash Warrant Shares, the “Tranche I Warrant Shares”);

 

WHEREAS, DSM and Company have entered into
the Securities Purchase Agreement, dated as of August 2, 2017 (as may be amended from time to time, the “Securities Purchase
Agreement”), pursuant to which, upon the terms and subject to the conditions set forth therein, DSM agreed to purchase
(i) 25,000 shares (the “Tranche II Shares” and together with the Tranche I Shares, the “Shares”)
of the Preferred Stock, (ii) warrants (the “Tranche II Cash Warrants” and, together with the Tranche I Cash
Warrants, the “Cash Warrants”) to acquire up to 3,968,116 shares of Common Stock (such shares, the “Tranche
II Cash Warrant Shares” and, together with the Tranche I Cash Warrant Shares, the “Cash Warrant Shares”),
and (iii) additional warrants to purchase shares of Common Stock as a result of certain dilutive issuances by the Company (the
“Tranche II Anti-Dilution Warrants” and, together with the Tranche I Anti-Dilution Warrants and the Cash Warrants,
the “Warrants,” and the shares of Common Stock issuable upon exercise of the Tranche II Anti-Dilution Warrants,
the “Tranche II Anti-Dilution Warrant Shares” and, together with the Tranche I Anti-Dilution Warrant Shares
and the Cash Warrant Shares, the “Warrant Shares”); and

 

WHEREAS, as a condition to consummating the
transactions contemplated by the Securities Purchase Agreement, DSM and the Company are required to amend and restate the Prior
Agreement pursuant to this Agreement.

 

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

 

 

     

     

    

ARTICLE I

 

DEFINITIONS

 

Section 1.1. Definitions.
As used in this Agreement, the following terms shall have the meanings set forth below:

 

“Adverse Disclosure” means
public disclosure of material non-public information which, in the judgment of the Non-DSM Directors: (i) would be required to
be made in any report or registration statement filed with the SEC by the Company so that such report or registration statement
would not be materially misleading; (ii) would not be required to be made at such time but for the filing, effectiveness or continued
use of such report or registration statement; and (iii) the Company has a bona fide business purpose for not disclosing
publicly.

 

“Affiliate” means, with
respect to any Person, any other Person that controls, is controlled by, or is under common control with such Person. The term
“control”, as used with respect to any Person, means the power to direct or cause the direction of the management
and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise.
“Controlled” and “controlling” have meanings correlative to the foregoing.

 

“Agreement”
means this Amended and Restated Stockholder Agreement, as the same may be amended, supplemented, restated or modified.

 

“Beneficial Ownership”
and “Beneficially Own” and similar terms have the meaning set forth in Rule 13d-3 under the Exchange Act. For
the avoidance of doubt, and except as otherwise provided herein, DSM will be deemed to Beneficially Own all of the Warrant Shares
issuable upon exercise of the Warrants held by DSM Parent, its Subsidiaries and controlled Affiliates at the time of determination.

 

“Board” means the Board
of Directors of the Company.

 

“Brotas 1” means
the Company’s first purpose-built, large-scale production facility located in Brotas, Brazil.

 

“Brotas 2” means
the Company’s planned second purpose-built, large scale production facility adjacent to Brotas 1, for which ground was broken
in February 2017.

 

“Business Day”
means any day, other than a Saturday, Sunday or one on which banks are authorized or required by law to be closed in San Francisco,
California or Amsterdam, The Netherlands.

 

“Change of Control Transaction”
has the meaning give to such term in the Company’s Certificate of Designation of Preferences, Rights and Limitations of Series
B 17.38% Convertible Preferred Stock.

 

“Closing” has the meaning
set forth in the Securities Purchase Agreement.

 

 

    2

     

    

“Competitor” means those
Persons set forth on Exhibit A attached hereto and their respective Subsidiaries and controlled Affiliates; provided, however,
that the Company may, based on the reasonable determination of the Board, update the Persons set forth on Exhibit A attached
hereto not more than once in any consecutive 12-month period to include any other Persons that compete with any material portion
of the Company’s business as reasonably determined by the Board; provided, further, that (i) the total number of Persons
set forth on Exhibit A shall not exceed seven (7) and (ii) neither DSM Parent nor any of its Subsidiaries or controlled
Affiliates may be added to Exhibit A.

 

“Convertible Securities”
means all outstanding securities exercisable or exchangeable for, or convertible into, Voting Securities, including the Warrants.

 

“DGCL” means the Delaware
General Corporation Law.

 

“Disqualification Event”
means the “bad actor” disqualifying events described in Rule 506(d)(1)(i)-(viii) promulgated under the Securities Act.

 

“Disqualified Designee”
means any director designee to whom any Disqualification Event is applicable, except for a Disqualification Event as to which Rule
506(d)(2)(ii) or (iii) or (d)(3) is applicable.

 

“DSM Director”
means any DSM Nominee who is elected or appointed to the Board.

 

“DSM Nominee”
means an individual that DSM is entitled to nominate for election to the Board pursuant to Section 2.1(a).

 

“DSM Parent”
means Koninklijke DSM N.V., a Dutch public limited company and the ultimate parent of DSM.

 

“Election Notice” shall
have the meaning assigned to in Section 4.2(b).

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as the same may be amended from
time to time.

 

“Fair Market Value” means
(i) with respect to cash consideration, the total amount of such cash consideration in United States dollars, (ii) with respect
to non-cash consideration consisting of publicly-traded securities, the average daily closing sales price of such securities for
the ten (10) consecutive trading days ending on the trading day immediately preceding the date the Fair Market Value of such securities
is required to be determined hereunder on the principal national securities exchange on which such securities are listed and admitted
to trading, or, if not listed and admitted to trading on any such exchange, the average of the closing bid and asked prices in
the over-the-counter market and (iii) with respect to non-cash consideration not consisting of publicly-traded securities, such
amount as is determined to be the fair market value of the non-cash consideration as of such date in the good faith determination
of the Non-DSM Directors.

 

 

    3

     

    

“Group” shall have the
meaning assigned to it in Section 13(d)(3) of the Exchange Act.

 

“Non-DSM Directors”
means the members of the Board other than the DSM Directors.

 

“Ownership Amount” means,
as of the date of the relevant Election Notice, the sum of (A) the number of Shares (on an as-if-converted-to-Common Stock basis,
disregarding for such purpose any conversion limitations thereon) and shares of Common Stock then held by DSM Parent, its Subsidiaries
and controlled Affiliates, plus (B) the number of Warrant Shares issuable if the Warrants then held by DSM Parent, its Subsidiaries
and controlled Affiliates and that have an exercise price that is greater than the price per Participation Share to be issued in
the applicable Post-Closing Issuance were fully exercised on such date.

 

“Ownership Percentage”
means, as of the date of the relevant Election Notice, a fraction, the numerator of which is the Ownership Amount and the denominator
of which is the total number of outstanding Share Equivalents as of the date of the relevant Election Notice.

 

“Participation Shares”
means the number of Voting Securities or Convertible Securities or any other equity or equity-linked securities (including, for
the avoidance of doubt, convertible debt) proposed to be sold by the Company or one of its Subsidiaries in a Post-Closing Issuance.

 

“Person” means an individual,
partnership, corporation, business trust, joint stock company, trust, unincorporated association, joint venture, limited liability
company or any other entity of whatever nature, and shall include any successor (by merger or otherwise) of such entity.

 

“Post-Closing Issuance”
shall have the meaning assigned to it in Section 4.2(a).

 

“Restricted Shares” means the Shares,
the Warrants and the Warrant Shares.

 

“Rule 144” means Rule 144
under the Securities Act.

 

“Rule 506(d) Related Party”
shall mean with respect to any Person any other Person that is a beneficial owner of such first Person’s securities for purposes
of Rule 506(d) of the Securities Act.

 

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

 

“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as the same may be amended
from time to time.

 

“Share Equivalents” means
all outstanding shares of the Common Stock, together with all shares of Common Stock issuable upon exercise, conversion or exchange
of all outstanding Convertible Securities (whether or not then exercisable, convertible or exchangeable), including the Warrant
Shares, that have an exercise, conversion or exchange

 

 

    4

     

    

price that is greater than the price per Participation Share
to be issued in the applicable Post-Closing Issuance.

 

“Shares” shall have the
meaning assigned to it in the preamble.

 

“Subsidiary” means, with
respect to any party, any corporation, partnership, trust, limited liability company or other non-corporate business enterprise
in which such party (or another Subsidiary of such party) holds stock or other ownership interests representing (A) more that 50%
of the voting power of all outstanding stock or ownership interests of such entity, (B) the right to receive more than 50% of the
net assets of such entity available for distribution to the holders of outstanding stock or ownership interests upon a liquidation
or dissolution of such entity or (C) a general or managing partnership interest in such entity.

 

“Tranche I Anti-Dilution
Warrants” shall have the meaning assigned to it in the preamble.

 

“Tranche I Anti-Dilution Warrant
Shares” shall have the meaning assigned to it in the preamble.

 

“Tranche I Cash Warrants”
shall have the meaning assigned to it in the preamble.

 

“Tranche I Cash Warrant
Shares” shall have the meaning assigned to it in the preamble.

 

“Tranche I Shares” shall
have the meaning assigned to it in the preamble.

 

“Tranche I Warrants” shall have the
meaning assigned to it in the preamble.

 

“Tranche I Warrant Shares”
shall have the meaning assigned to it in the preamble.

 

“Tranche II Anti-Dilution
Warrants” shall have the meaning assigned to it in the preamble.

 

“Tranche II Anti-Dilution
Warrant Shares” shall have the meaning assigned to it in the preamble.

 

“Tranche II Cash Warrants”
shall have the meaning assigned to it in the preamble.

 

“Tranche II Cash Warrant
Shares” shall have the meaning assigned to it in the preamble.

 

“Tranche II Funding Amount”
means $25,000,000.

 

“Tranche II Securities”
means the Tranche II Shares, shares of Common Stock issuable upon conversion thereof, the Tranche II Warrants and shares of Common
Stock issuable upon exercise thereof.

 

“Tranche II Shares” shall
have the meaning assigned to it in the preamble.

    5

     

    

“Tranche II Warrants” means
the Tranche II Cash Warrants and the Tranche II Anti-Dilution Warrants.

 

“Transfer” means, directly
or indirectly, to sell, transfer, assign, pledge, encumber, hypothecate or similarly dispose of (by merger, testamentary disposition,
operation of law or otherwise), either voluntarily or involuntarily, or to enter into any contract, option or other arrangement
or understanding with respect to the sale, transfer, assignment, pledge, encumbrance, hypothecation or similar disposition of (by
merger, testamentary disposition, operation of law or otherwise), any Transfer Restricted Shares.

 

“Transfer Restricted Shares”
means any Shares, shares of Common Stock issued upon conversion of the Shares, Warrants or Warrant Shares.

 

“Voting Securities” means
shares of Common Stock and any other securities of the Company that are permitted by their terms to vote generally in the election
of directors. Except as otherwise provided herein, references to the number or percentage of Voting Securities outstanding or Beneficially
Owned will be deemed to include any Warrant Shares issuable upon exercise of the Warrants at the time of determination.

 

“Warrants” shall have the
meaning assigned to it in the preamble.

 

“Warrant Shares” shall have the meaning
assigned to it in the preamble.

 

Section 1.2. General Interpretive Principles.

 

(a)        The
name assigned to this Agreement and the section captions used herein are for convenience of reference only and shall not be construed
to affect the meaning, construction or effect hereof.

 

(b)        Unless
otherwise specified, the terms “hereof,” “herein” and similar terms refer to this Agreement as a whole,
and references herein to Articles or Sections refer to Articles or Sections of this Agreement.

 

(c)        For
purposes of this Agreement, the words, “include,” “includes” and “including,” when used herein,
shall be deemed in each case to be followed by the words “without limitation.”

 

(d)        Any
action that is required to be taken by the Non-DSM Directors or any consent that may be given by the Non-DSM Directors herein shall
require the approval or consent of a majority of the Non-DSM Directors.

 

(e)        The
parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent
or interpretation arises, this Agreement will be construed as if drafted jointly by the parties and no presumption or burden of
proof will arise favoring or disfavoring any party because of the authorship of any provision of this Agreement.

 

 

    6

     

    

ARTICLE II

 

GOVERNANCE

 

Section 2.1. Board of Directors.

 

(a) Board Representation.

 

(i)        DSM
shall have the following rights in connection with the nomination of individuals for election to the Board:

 

(A) For so long as DSM Beneficially Owns at least
10% of the Company’s outstanding Voting Securities, DSM shall have the right to nominate two individuals for election to
the Board; provided, that one of such individual shall be a member of DSM Parent’s Executive Committee and the other such
individual shall be selected in DSM’s discretion (each such individual, a “DSM Nominee” and collectively,
the “DSM Nominees”); and

 

(B) For so long as DSM Beneficially Owns less than
10% of the Company’s outstanding Voting Securities but greater than 4.5% of the Company’s outstanding Voting Securities,
DSM shall have the right to nominate one individual for election to the Board; provided, that such individuals shall be a member
of DSM Parent’s Executive Committee.

 

(ii)        In
the event that the number of directors that DSM is entitled to nominate to the Board is reduced pursuant to Section 2.1(a)(i)(B),
DSM shall promptly cause one of the DSM Directors to immediately resign, such that the number of remaining DSM Directors serving
on the Board shall equal the number of directors DSM is then entitled to nominate for election to the Board. In the event that
DSM is no longer entitled to nominate a director to the Board pursuant to Section 2.1(a)(i) above, DSM shall promptly cause any
then-serving DSM Directors to immediately resign. If any such director is unwilling to resign, DSM will take all such actions as
are necessary to cause the removal of the director, including voting (or causing to be voted) all of the Voting Securities Beneficially
Owned by it in favor of such removal.

 

(iii)        For
so long as DSM has the right to nominate a DSM Nominee for election pursuant to Section 2.1(a)(i), in connection with each election
of directors, subject to Section 2.1(a)(v), the Company shall nominate such DSM Nominee for election as a director as part of the
management slate that is included in the proxy statement of the Company relating to the election of directors.

 

(iv)        In
the event that any DSM Director shall cease to serve as a director for any reason (other than the resignation or removal of such
director as a result of DSM not having the right to nominate a director pursuant to Section 2.1(a)(i)), subject

 

 

 

    7

     

    

to Section 2.1(a)(v), DSM shall have the right to
designate another DSM Nominee to fill the vacancy resulting therefrom. For the avoidance of doubt, it is understood that the failure
of the stockholders of the Company to elect any DSM Nominee shall not affect the right of DSM to designate a DSM Nominee for election
pursuant to Section 2.1(a)(i) in connection with any future election of directors of the Company.

 

(v)        Notwithstanding
the foregoing, as a condition to any DSM Nominee’s appointment to the Board and nomination for election as a director of
the Company at the Company’s annual meetings of stockholders:

 

		(A)	DSM and such DSM Nominee must in all material respects provide to the Company (1) all information reasonably requested by the
Company that is required to be or customarily disclosed for directors, candidates for directors, and their affiliates in a proxy
statement or other filings under applicable law or regulation or stock exchange rules or listing standards, in each case, relating
to their nomination or election as a director of the Company and (2) information reasonably requested by the Company in connection
with assessing eligibility, independence and other criteria applicable to directors or satisfying compliance and legal or regulatory
obligations, in each case, relating to their nomination or election as a director of the Company, with respect to DSM Parent, its
Subsidiaries and controlled Affiliates and the applicable DSM Nominee, in each case, to the same extent as all other directors
of the Company;

 

		(B)	such DSM Nominee must be qualified to serve as a director of the Company under the DGCL to the same extent as all other directors
of the Company;

 

		(C)	no Disqualification Event shall be applicable to such DSM Nomine except, if applicable, for a Disqualification Event as to
which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable;

 

		(D)	such DSM Nominee shall be reasonably acceptable to the Nominating and Governance Committee of the Board; and

 

		(E)	such DSM Nominee must satisfy the requirements set forth in the Company’s Corporate Governance Guidelines, code of conduct
and securities trading policy, in each case as currently in effect with such changes thereto (or such successor policies) as are
applicable to all other directors, as are adopted in good faith by the Board, and do not by their terms adversely impact any DSM
Nominee relative to

 

 

 

    8

     

    

all other directors (provided that, for the avoidance
of doubt, no DSM Nominee shall be required to qualify as an independent director under applicable stock exchange rules or securities
laws and regulations).

 

The Company will make all information requests pursuant
to this Section 2.1(a)(v) in good faith in a timely manner that allows DSM and any DSM Nominee a reasonable amount of time to provide
such information, and will cooperate in good faith with DSM and any DSM Nominee in connection with their efforts to provide the
requested information.

 

(vi)        DSM
hereby covenants and agrees (A) not to designate or participate in the designation of any director designee who, to DSM’s
knowledge, is a Disqualified Designee, (B) that in the event DSM becomes aware that any individual previously designated by DSM
is or has become a Disqualified Designee or that a Disqualification Event has become applicable to DSM or any of its Rule 506(d)
Related Parties, except, if applicable, for a Disqualification Event as to which Rule 506(d)(2)(ii) or (iii) or (d)(3) is applicable,
then DSM shall notify the Company promptly in writing and as promptly as practicable DSM shall take such actions as are necessary
to remove any such Disqualified Designee from the Board and designate a replacement designee who is not a Disqualified Designee,
and (C) for so long as there is a DSM Director, DSM will comply with the Company’s insider trading policy as currently in
effect with such changes thereto (or such successor policies) as are applicable to all other stockholders of the Company that have
rights to designate or nominate members of the Board.

 

(b)        Identity
of the Nominee. The initial DSM Nominees shall be Philip Eykerman and Christoph Goppelsroeder. The Company confirms that each
of Mr. Eykerman and Mr. Goppelsroeder is reasonably acceptable to the Nominating and Governance Committee of the Board. Mr. Eykerman
has previously been appointed to the Board and the Company shall cause Mr. Goppelsroeder to be appointed to the Board on or prior
to the date of the first regular or special meeting of the Board occurring after the Closing and in no event later than November
2, 2017.

 

(c)        D&O
Indemnification. Each DSM Director shall be eligible to enter into an indemnification agreement consistent with the form generally
entered into with the Company’s officers and directors.

 

(d)        Committees.
At least one DSM Director shall be entitled to serve on each standing committee of the Board other than (i) the Compensation Committee
of the Board, (ii) the Audit Committee of the Board, (iii) the Nominating and Governance Committee of the Board and (iv) any other
committee of the Board for which a DSM Director’s membership would result in a conflict of interest (including, without limitation,
any special committee formed for the purpose of evaluating any transaction between the Company and DSM Parent and/or its Subsidiaries
or controlled Affiliates).

 

 

 

    9

     

    

ARTICLE III

 

TRANSFER RESTRICTIONS 

 

Section 3.1. General
Transfer Restrictions. The right of DSM to Transfer any Transfer Restricted Shares Beneficially Owned by DSM is subject to
the restrictions set forth in this Article III, and no Transfer by DSM of such Transfer Restricted Shares Beneficially Owned by
DSM may be affected except in compliance with this Article III. Any attempted Transfer in violation of this Article III shall be
of no effect and null and void, regardless of whether the purported transferee has any actual or constructive knowledge of the
Transfer restrictions set forth in this Article III, and shall not be recorded on the stock transfer books of the Company.

 

Section 3.2. Specific Transfer Restrictions.

 

(a) Without the prior approval of
the Non-DSM Directors, DSM shall not, and shall not permit DSM Parent or any of its other Subsidiaries or controlled Affiliates
to:

 

(i)        Except
as permitted under Section 3.3, Transfer any Transfer Restricted Shares to any Person or Group that is or includes a Competitor;
or

 

(ii)        Except
as permitted under Section 3.3, Transfer any Transfer Restricted Shares to any Person or Group prior to May 11, 2018.

 

(b) Other than with respect to any
Transfer permitted by Section 3.3, prior to any Transfer of Transfer Restricted Shares to any Person or Group, DSM shall first
provide the Company with ten (10) days prior written notice of its intent to Transfer any Transfer Restricted Shares. Thereafter,
DSM agrees to negotiate in good faith with the Company with respect to the purchase by the Company or any other third parties introduced
to DSM by the Company of such Transfer Restricted Shares subject to such proposed Transfer.

 

(c) DSM acknowledges that the Restricted
Shares have not been registered under the Securities Act and may not be Transferred except pursuant to an effective registration
statement under the Securities Act or pursuant to an exemption from registration under the Securities Act. DSM covenants that the
Restricted Shares will only be disposed of pursuant to an effective registration statement under, and in compliance with the requirements
of, the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act, and in compliance
with any applicable state and foreign securities laws. In connection with any Transfer of Restricted Shares other than pursuant
to an effective registration statement or to the Company, or pursuant to Rule 144, the Company may require DSM to provide to the
Company an opinion of counsel selected by the DSM and reasonably acceptable to the Company, the form and substance of which opinion
shall be reasonably satisfactory to the Company, to the effect that such Transfer does not require registration under the Securities
Act. Notwithstanding the foregoing, the Company hereby consents to and agrees to register on the books of the Company and with
its transfer agent, without any legal opinion, except to the extent that

 

 

 

    10

     

    

the transfer agent requests such legal opinion, any
Transfer of Restricted Shares by DSM to DSM Parent or another Subsidiary or controlled Affiliate of DSM Parent, provided that
the Transfer is effected in accordance with Section 3.3.

 

(d) DSM agrees to the imprinting,
so long as is required by this Section 3.2, of a legend in substantially the following form on any certificate evidencing
any of the Restricted Shares:

 

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH
THIS SECURITY IS CONVERTIBLE OR EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER
(IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY
BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

Certificates evidencing the Restricted Shares shall
not be required to contain such legend or any other legend (i) following any sale of such Restricted Shares pursuant to an effective
registration statement (including the Registration Statement) covering the resale of the Restricted Shares, (ii) following any
sale of such Restricted Shares pursuant to Rule 144 if the holder provides the Company with a legal opinion reasonably acceptance
to the Company to the effect that the Restricted Shares were sold under Rule 144 or (iii) if the holder provides the Company with
a legal opinion reasonably acceptable to the Company to the effect that the legend is not required under applicable requirements
of the Securities Act. Notwithstanding anything to the contrary in this Agreement, the Prior Securities Purchase Agreement or the
Securities Purchase Agreement, in the event of any conflict or inconsistency between any provision of Section 3.2(c), Section 3.2(d)
or Article V of this Agreement, on the one hand, and any provision of the Prior Securities Purchase Agreement or the Securities
Purchase Agreement, on the other hand, whichever provision is more favorable to DSM under the circumstances (as determined by DSM
in its sole discretion) will control as between the Company and DSM.

 

Section 3.3. Permitted Transfers.

 

(a) DSM may Transfer any or all
of the Transfer Restricted Shares held by it (i) to DSM Parent or any of its other Subsidiaries or controlled Affiliates, provided
that,

 

 

 

    11

     

    

at or prior to the Transfer, such transferee shall have agreed
with the Company in writing to be bound by all of the terms and condition of this Agreement applicable to DSM, or (ii) in connection
with a Change of Control Transaction or Fundamental Transaction (as such term is defined in the Company’s Certificate of
Designation of Preferences, Rights and Limitations of Series B 17.38% Convertible Preferred Stock), at the consummation of (and
pursuant to the terms of) such transaction.

 

(b) Notwithstanding anything herein to the
contrary, no change in control or ownership of any shares in the capital stock of DSM Parent shall constitute a Transfer for purposes
of this Agreement.

 

ARTICLE IV

 

SHARE OWNERSHIP 

 

Section 4.1. Standstill.

 

(a)        Except
as provided in Section 4.1(b), from the Closing until three months after no DSM Nominee serves on the Board (the “Standstill
Period”), DSM shall not, nor shall it permit DSM Parent or any of its other Subsidiaries or controlled Affiliates to,
directly or indirectly, without the prior consent of the Company (acting through a resolution of the Company’s Non-DSM Directors):

 

(i)        acquire
or agree to acquire, whether by purchase, tender or exchange offer, by forming, joining or otherwise participating in a partnership,
syndicate or other Group, through the use of a derivative instrument or voting agreement, or otherwise, (A) Beneficial Ownership
of additional Voting Securities or Convertible Securities after the Closing that would result in DSM Parent (together with its
Subsidiaries or controlled Affiliates and any parties acting as members of a Group with DSM), having Beneficial Ownership of more
than 33.0% in the aggregate of the shares of Voting Securities outstanding at such time (assuming (1) the exercise of all of then-outstanding
Warrants for the maximum number of shares of Common Stock issuable thereunder, regardless of whether such Warrants are then exercisable,
and (2) the conversion of the Shares for the maximum number of shares of Common Stock issuable thereunder, regardless of whether
such Shares are then convertible, which number of shares shall be included in the numerator and denominator for purposes of determining
the percentage of Voting Securities Beneficially Owned by DSM Parent (together with its Subsidiaries and controlled Affiliates
and any parties acting as members of a Group with DSM) for purposes of this clause (A)), except pursuant to Section 4.2 of this
Agreement, pursuant to the exercise of the Warrants, pursuant to the Prior Securities Purchase Agreement or the Securities Purchase
Agreement or pursuant to the Company’s Certificate of Designation of Preferences, Rights and Limitations of Series B 17.38%
Convertible Preferred Stock, or (B) any direct or indirect ownership interest in any indebtedness or debt securities of the Company
or any of its Subsidiaries, except pursuant to Section 4.2 of this Agreement;

 

 

 

    12

     

    

(ii)        (A)
make, or in any way participate, directly or indirectly, in any “solicitation” of “proxies” (as such terms
are used in the rules of the SEC) to vote Voting Securities, (B) seek to advise or knowingly influence any Person with respect
to the voting of any Voting Securities or (C) deposit any Voting Securities in any voting trust or subject any Voting Securities
to any arrangement or agreement with respect to the voting of any Voting Securities, except for this Agreement;

 

(iii)        make
any public announcement of a proposal or offer (with or without conditions) with respect to any extraordinary transaction involving
DSM Parent or its Subsidiaries or controlled Affiliates and the Company including, without limitation, any tender offer, merger,
consolidation or business combination;

 

(iv)        effect
or seek to effect any recapitalization, reclassification, liquidation or dissolution of the Company;

 

(v)        publicly
disclose any intention, plan or arrangement by DSM regarding the possibility of any of the events described in clauses (i) through
(iv) above;

 

(vi)        knowingly
take any action that would require either the Company or DSM under applicable law or the rules of the principal exchange on which
the Company’s Common Stock is then listed or traded to make a public announcement regarding the possibility of any of the
events described in clauses (i) through (iv) above; or

 

(vii)        enter
into any discussions, negotiations, agreements or understandings with any other third Person (excluding DSM’s advisors) with
respect to any of the foregoing.

 

(b)        Notwithstanding
the foregoing, the restrictions contained in Section 4.1(a) shall not (1) apply with respect to the designations of the DSM Nominees
in accordance with this Agreement, (2) prevent a DSM Director from taking any action in his or her capacity as a director of the
Company, (3) prohibit DSM Parent or any of its Subsidiaries or controlled Affiliates from voting its Voting Securities in its discretion,
(4) apply to the acquisition of securities in or control of another Person (including by way of merger or consolidation) or (5)
apply to any acquisitions or investments by any bona fide employee benefit plan of DSM Parent or its Subsidiaries or controlled
Affiliates. In addition, the restrictions contained in Section 4.1(a) shall not prevent a private communication to the Board to
the extent that such private communication would not reasonably be expected to require a public disclosure prior to any public
announcement by the Company that it (or its Board) has approved or entered into an agreement with respect to a Change of Control
Transaction or Fundamental Transaction.

 

Section 4.2. Preemptive Rights.

 

(a)        Other
than as set forth in Section 4.2(d) and (e), if the Company or any Subsidiary of the Company at any time shall propose to issue
any Voting Securities or

 

 

 

    13

     

    

Convertible Securities or any other equity or equity-linked
securities (including, for the avoidance of doubt, convertible debt) following the Closing in a capital raising transaction for
cash (other than pursuant to the Prior Securities Purchase Agreement or the Securities Purchase Agreement) (a “Post-Closing
Issuance”), DSM shall have the right to purchase for cash directly from the Company or such Subsidiary up to its Ownership
Percentage of such Participation Shares at the same purchase price as the price for the Participation Shares to be issued; provided,
however, that the issuance of securities in connection with the July 2017 PIPE Transaction (as defined in the Securities Purchase
Agreement) shall not be considered a Post-Closing Issuance hereunder.

 

(b)        With
respect to any Post-Closing Issuance, the Company, on behalf of itself or its applicable Subsidiary, will notify DSM in writing
(the “Notice”) stating (i) its bona fide intention to offer such Participation Securities, (ii) the number of
such Participation Securities to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such Participation
Securities.

 

(c)        Within
thirty (30) business days after giving of the Notice, DSM may elect to purchase or obtain, at the price and on the terms specified
in the Notice, up to its Ownership Percentage of such Participation Shares. DSM shall be entitled to allocate, as among DSM Parent
and its Subsidiaries and controlled Affiliates (who agree or have agreed in writing to be bound by the terms of this Agreement),
the number of Participation Shares entitled to be purchased by DSM Parent and its Subsidiaries and controlled Affiliates (collectively)
pursuant to this Section 4.2. In the event that DSM elects to exercise its purchase rights pursuant to this Section 4.2, DSM shall
provide to the Company written notice of such election (the “Election Notice”) to purchase up to its Ownership
Percentage of the Participation Shares hereunder, which notice shall (i) certify the Ownership Amount as of the date of the Election
Notice, (ii) specify the number of Participation Shares to be purchased by DSM Parent and its Subsidiaries and controlled Affiliates
(not to exceed DSM’s Ownership Percentage of the Participation Shares, the “Specified Number”), and (iii)
the allocation of such Participation Shares among DSM Parent and its Subsidiaries and controlled Affiliates. DSM shall, or shall
cause DSM Parent and its other Subsidiaries and controlled Affiliates (as applicable) to, purchase, and the Company shall, or shall
cause its applicable Subsidiary to, issue and sell to DSM Parent and its Subsidiaries and controlled Affiliates (as applicable),
the Specified Number of the Participation Shares concurrently with the related Post-Closing Issuance by the Company or its applicable
Subsidiary.

 

(d)        In
the event that the Post-Closing Issuance which gave rise to the exercise by DSM of its purchase rights pursuant to this Section
4.2 shall be terminated or abandoned by the Company without the issuance of any securities, then the purchase rights of DSM pursuant
to this Section 4.2 shall also terminate as to such proposed Post-Closing Issuance (but not any subsequent or future issuance),
and any funds in respect thereof paid to the Company by DSM shall be refunded in full.

 

(e)        Notwithstanding
the foregoing, the provisions of this Section 4.2 shall not apply to, and DSM shall not have any purchase rights with respect to,
any of the following types of Post-Closing Issuances by the Company or any of its Subsidiaries:

 

 

 

    14

     

    

(i)        any
Post-Closing Issuance of Voting Securities or Convertible Securities to officers, employees, directors or consultants of the Company
in connection with such Person’s employment or consulting arrangements with the Company or the service of such person as
a director;

 

(ii)        any
Post-Closing Issuance of Voting Securities or Convertible Securities (i) in any business combination or acquisition transaction
involving the Company or any of its Subsidiaries or (ii) in connection with the incurrence of indebtedness by the Company or any
of its Subsidiaries (provided that such indebtedness does not constitute a Convertible Security);

 

(iii)        any
Post-Closing Issuance of Voting Securities or Convertible Securities in connection with any stock split, stock dividend or recapitalization
approved by the Board (so long as all holders of the same class or series of Voting Securities is treated equally with all other
holders of such class or series of Voting Securities); or

 

(iv)        any
Post-Closing Issuance of Voting Securities pursuant to a public offering registered under the Securities Act; or

 

(v)        any
Post-Closing Issuance of Voting Securities or Convertible Securities to any Person (or any Affiliate of a Person), which is an
operating company or an owner of an asset in a business synergistic with the Company’s business as determined in good faith
by the Board, to induce such Person to enter into any joint venture or other strategic or commercial relationship with the Company
or any of its Subsidiaries that provides to the Company additional benefits in addition to the investment of funds, as determined
in good faith by the Non-DSM Directors, but shall not include a transaction in which the Company or any of its Subsidiaries is
issuing securities primarily for the purpose of raising capital or to a Person whose primary business is investing in securities
of other Persons.

 

(f)        The
Company may, during the seventy-five (75) day period following the expiration of the period provided in Section 4.2(c) hereof,
offer the remaining unsubscribed portion of such Participation Securities to any Person or Persons at a price not less than, and
upon terms no more favorable to the offeree than, those specified in the Notice. If the Company does not consummate the sale of
such Participation Securities, or enter into a definitive agreement for the sale of such Participation Securities, within such
period, or if the Company enters into such a definitive agreement and such agreement is not consummated within seventy-five (75)
days of the execution thereof, the purchase right pursuant to this Section 4.2 shall be deemed to be revived and no such Participation
Securities shall be offered unless first reoffered to DSM in accordance herewith.

 

 

 

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ARTICLE V

 

REGISTRATION RIGHTS

 

The Company hereby grants to each of the
Holders (as defined below) the registration rights set forth in this Article V, with respect to the Registrable Securities (as
defined below) owned by such Holders.

 

Section 5.1. Certain Definitions. As used
in this Article V:

 

(a) “Effective Date” means
the date that the Initial Registration Statement has been declared effective by the SEC.

 

(b) “Effectiveness
Deadline” means December 22, 2017.

 

(c) “Filing Deadline”
means November 7, 2017.

 

(d)        “Holder”
(collectively, “Holders”) means (i) DSM and (ii) any subsidiary or controlled Affiliate of DSM Parent that DSM
designates in writing as a Holder, in each case to the extent holding Registrable Securities, securities exercisable or convertible
into Registrable Securities or securities exercisable for securities convertible into Registrable Securities. 

 

(e)        “Prospectus”
means the prospectus included in any Registration Statement, all amendments and supplements to such prospectus, including post-effective
amendments, and all other material incorporated by reference in such prospectus.

 

(f)        “register”,
“registered” and “registration” refer to a registration effected by filing with the SEC a
Registration Statement in compliance with the Securities Act, and the declaration or ordering by the SEC of the effectiveness of
such Registration Statement.

 

(g)        “Registrable
Securities” means (i) Underlying Shares held by, or issuable to, Holders and (ii) any shares of Voting Securities issued
as (or issuable upon) a stock split, stock dividend or other distribution with respect to, or in exchange or in replacement of,
such Registrable Securities set forth in clause (i), in each case, until the earliest to occur of (A) the date on which a Registration
Statement covering such securities has been declared effective by the SEC and such security has been disposed of pursuant to such
effective Registration Statement, (B) the date on which such security is sold pursuant to Rule 144, (C) the date on which such
security ceases to be outstanding or (D) the date on which the Holder thereof, together with its Affiliates, is able to dispose
of all of its Registrable Securities in any 90 day period pursuant to Rule 144 (or any similar or analogous rule promulgated under
the Securities Act).

 

(h)        “Registration
Statement” means a registration statement or registration statements of the Company filed under the Securities Act covering
the Registrable Securities.

 

 

 

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(i)        “Required
Registration Amount” means the lesser of (i) 100% of the sum of the maximum number of Underlying Shares issued and issuable
as of the Trading Day immediately preceding the applicable date of determination or (ii) such other amount as may be required by
the staff of the SEC pursuant to Rule 415 with any cutback applied pro rata to all Holders.

 

(j)        “Underlying
Shares” means the Warrant Shares and the shares of Common Stock issuable upon conversion of the Shares.

 

Section 5.2.Registration 

 

(a) (i) Initial Mandatory
Registration. The Company shall use reasonable efforts to prepare, and, as soon as practicable, but in no event later than
the Filing Deadline, file with the SEC a Registration Statement on Form S-3 covering the resale of all of the Registrable Securities
(the “Initial Registration Statement”). The Initial Registration Statement prepared pursuant hereto shall register
for resale at least the number of shares of Common Stock equal to the total number of then outstanding Registrable Securities determined
as of the date the Initial Registration Statement is initially filed with the SEC. The Company shall use its reasonable best efforts
to have the Initial Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the
Initial Effectiveness Deadline. The Company shall use its reasonable efforts to file with the SEC in accordance with Rule 424 under
the Securities Act the final prospectus to be used in connection with sales pursuant to such Initial Registration Statement by
9:30 am on the Business Day following the Effective Date, but in any case no later than the deadline required by Rule 424.

 

(ii)        Additional
Registrations. Notwithstanding anything herein to the contrary, to the extent the staff of the SEC does not permit all of the
Registrable Securities to be registered on the Initial Registration Statement, the Company shall file additional Registration Statements
successively trying to register on each such Registration Statement the maximum number of remaining Registrable Securities until
all of the Registrable Securities have been registered for resale. Each such additional Registration Statement prepared pursuant
hereto shall register for resale at least that number of shares of Common Stock equal to the Additional Registrable Securities
determined as of the date such Additional Registration Statement is initially filed with the SEC. The Company shall use its reasonable
efforts to have each such additional Registration Statement declared effective by the SEC as soon as practicable. The Company shall
file with the SEC in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales
pursuant to such additional Registration Statement by 9:30 am on the Business Day following the effective date of such Registration
Statement, but in any case no later than the deadline required by Rule 424.

 

(iii)        Underwritten
Registrations. With respect to any of the registrations contemplated by this Section 5.2(a), DSM may request that up to three
such registrations provide for an underwritten offering of the Registrable Securities. In connection with any such underwritten
offering, the right of any Holder to registration

 

 

 

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pursuant to this Section 5.2(a)(iv) shall be conditioned
upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in
the underwriting to the extent provided herein in subject to the limitations expressed in this Section 5.2. All Holders proposing
to distribute their Registrable Securities through such underwriting shall, together with any other parties distributing their
securities through such underwriting, enter into an underwriting agreement in customary form with the underwriter or underwriters
selected for such underwriting by the Company. Notwithstanding any other provision of this Section 5.2, if the underwriter determines
that marketing factors require a limitation of the number of shares to be underwritten, the underwriter may limit the number of
Registrable Securities to be included in the registration and underwriting.

 

(iv) Subject to the provisions of
this Section 5.2 and further subject to the availability of a Registration Statement on Form S-3 (or any successor form thereto)
to the Company pursuant to the Securities Act and the rules and interpretations of the SEC, the Company will use its reasonable
efforts to keep the Initial Registration Statement (or any replacement Registration Statement) continuously effective until the
earlier of: (A) the date on which all Registrable Securities covered by the Registration Statement have been sold thereunder in
accordance with the plan and method of distribution disclosed in the prospectus included in the Registration Statement and (B)
there otherwise cease to be any Registrable Securities.

 

(v) Allocation of Registrable
Securities. The initial number of Registrable Securities included in any Registration Statement and any increase or decrease
in the number of Registrable Securities included therein shall be allocated pro rata among the Holders based on the number of Registrable
Securities held by each Holder at the time the Registration Statement covering such initial number of Registrable Securities or
increase or decrease thereof is declared effective by the SEC. In the event that a Holder sells or otherwise transfers any of such
Holder’s Registrable Securities, each transferee that becomes a Holder shall be allocated a pro rata portion of the then
remaining number of Registrable Securities included in such Registration Statement for such transferor. Any shares of Common Stock
included in a Registration Statement and which remain allocated to any Person which ceases to hold any Registrable Securities covered
by such Registration Statement shall be allocated to the remaining Holders, pro rata based on the number of Registrable Securities
then held by such Holders which are covered by such Registration Statement.

 

(b)        Suspension
of Filing or Registration. If the Company shall furnish to the Holders a certificate signed by the Chief Executive Officer
or Chief Financial Officer of the Company, stating that the filing, effectiveness or continued use of a Registration Statement
would require the Company to make an Adverse Disclosure, then the Company shall have a period of not more than 75 days (or such
longer period as DSM shall consent to in writing) within which to delay the filing or effectiveness of such Registration Statement
or, in the case of a Registration Statement that has been declared effective, to suspend the use by Holders of such Registration
Statement (in each case, a “Shelf Suspension”); provided, however, that, unless consented to in
writing by the DSM, the Company shall not be permitted to exercise a Suspension more than twice during any 12-

 

 

 

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month period for each Shelf Registration Statement.
In the case of a Shelf Suspension that occurs after the effectiveness of a Registration Statement, the Holders agree to suspend
use of the applicable Prospectus in connection with any sale or purchase of, or offer to sell or purchase, Registrable Securities,
upon receipt of the notice referred to above. The Company shall immediately notify the Holders upon the termination of any Shelf
Suspension, and (i) in the case of a Registration Statement that has not been declared effective, shall promptly thereafter file
a Registration Statement and use its reasonable best efforts to have such Registration Statement declared effective under the Securities
Act and (ii) in the case of an effective Registration Statement, shall amend or supplement the Prospectus, if necessary, so it
does not contain any untrue statement or omission and furnish to the Holders such numbers of copies of the Prospectus as so amended
or supplemented as the Holders may reasonably request. The Company agrees, if necessary, to supplement or make amendments to the
applicable Registration Statement, if required by the registration form used by the Company for the shelf registration or by the
instructions applicable to such registration form or by the Securities Act or the rules or regulations promulgated thereunder.

 

(c)        The
Company shall use its commercially reasonable efforts to take all actions reasonably necessary to ensure that the transactions
contemplated herein are effected as so contemplated in Section 5.2(a) hereof, and to submit to the SEC, within five Business Days
after the Company learns that no review of a Registration Statement will be made by the staff of the SEC or that the staff has
no further comments on a Shelf Registration Statement, as the case may be, a request for acceleration of effectiveness (or post
effective amendment, if applicable) of such Registration Statement to a time and date not later than 48 hours after the submission
of such request.

 

(d)        Any
reference herein to a registration statement or prospectus as of any time shall be deemed to include any document incorporated,
or deemed to be incorporated, therein by reference as of such time and any reference herein to any post-effective amendment to
a registration statement as of any time shall be deemed to include any document incorporated, or deemed to be incorporated, therein
by reference as of such time. Any reference to a prospectus as of any time shall include any supplement thereto, preliminary prospectus,
or any free writing prospectus in respect thereof.

 

(e)        In
connection with the filing of a Registration Statement, the Company shall:

 

(i)        prepare
and file with the SEC within the time periods specified in Section 5.2(a), a Registration Statement on any form which may be utilized
by the Company and which shall register all of the Registrable Securities for resale by the holders thereof in accordance with
such method or methods of disposition (but which shall not include an underwritten offering as to which the Company needs to assist)
as may be specified by DSM and use reasonable best efforts to cause such Registration Statement to become effective as soon as
reasonably practicable but in any case within the time periods specified in Section 5.2(a);

 

 

 

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(ii)        as
soon as reasonably practicable prepare and file with the SEC such amendments and supplements to such Registration Statement (including
without limitation, any required post effective amendments) and the prospectus included therein as may be necessary to effect and
maintain the effectiveness of such Registration Statement for the period specified in Section 5.2(a) hereof and as may be required
by the applicable rules and regulations of the SEC and the instructions applicable to the form of such Registration Statement;

 

(iii)        comply
with the provisions of the Securities Act with respect to the disposition of all of the Registrable Securities covered by such
Registration Statement in accordance with the intended methods of disposition by DSM provided for in such Registration Statement;

 

(iv)        provide
DSM and its legal counsel (“Legal Counsel”) a reasonable opportunity to participate in the preparation of such
Registration Statement, each prospectus included therein or filed with the SEC and each amendment or supplement thereto (but not
including any documents incorporated by reference), in each case subject to customary confidentiality restrictions, and give reasonable
consideration to any comments Legal Counsel provides with respect to any Shelf Registration Statement or amendment or supplement
thereto. The Company shall furnish to Legal Counsel copies of any correspondence from the SEC or the staff of the SEC to the Company
or its representatives relating to any Registration Statement;

 

(v)        promptly
notify DSM (A) when such Registration Statement or the Prospectus included therein or any prospectus amendment or supplement or
post-effective amendment has been filed, and, with respect to such Registration Statement or any post-effective amendment, when
the same has become effective, (B) of any comments by the SEC with respect thereto or any request by the SEC for amendments or
supplements to such Registration Statement or prospectus or for additional information, (C) of the issuance by the SEC of any stop
order suspending the effectiveness of such Registration Statement or the initiation or threatening of any proceedings for that
purpose, (D) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, or (E) if at any time
when a prospectus is required to be delivered under the Securities Act, that such Registration Statement, prospectus, prospectus
amendment or supplement or post-effective amendment does not conform in all material respects to the applicable requirements of
the Securities Act and the rules and regulations of the SEC thereunder or contains an untrue statement of a material fact or omits
to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of
the circumstances then existing; and

 

(vi)        in
the event that Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall
(i) register the resale of the Registrable Securities on another appropriate form reasonably acceptable to DSM and (ii) undertake
to register the Registrable Securities on Form S-3 as soon as such form is available, provided that the Company shall maintain
the

 

 

 

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effectiveness of the Registration Statement then in
effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective
by the SEC.

 

(f)        In
connection with a shelf registration, the Company may require each Holder whose Registrable Securities are covered by the shelf
registration, to furnish to the Company such information regarding the Holder, including, without limitation, its intended method
of distribution of Registrable Securities as may be required in order to comply with the Securities Act. The Holder agrees to notify
the Company as promptly as practicable of any inaccuracy or change in information previously furnished by the Holder to the Company
or of the occurrence of any event in either case that could cause the prospectus to contain an untrue statement of a material fact
regarding the Holder or its intended method of disposition of such Registrable Securities or omits to state any material fact regarding
the Holder or its intended method of disposition of such Registrable Securities required to be stated therein or necessary to make
the statements therein not misleading in light of the circumstances then existing, and promptly to furnish to the Company any additional
information required to correct and update any previously furnished information or required so that such prospectus shall not contain,
with respect to the Holder or the disposition of such Registrable Securities, an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing. If the Holder fails to provide to the Company any information required to be provided pursuant to
this Section 5.2 after the Holder became aware of the inaccuracy, omission or required change, the Company may suspend the use
of the Registration Statement and the prospectus contained therein until such time as the Holder provides the required information
to the Company.

 

Section 5.3. Piggyback Registration.

 

(a)        Company
Registration. If at any time or from time to time the Company shall determine to register any of its equity securities, either
for its own account or for the account of security holders (other than (1) in a registration relating solely to employee benefit
plans, (2) a registration on Form S-4 or S-8 (or such other similar successor forms then in effect under the Securities Act), (3)
a primary registration of securities under Rule 415 of the Securities Act, (4) a registration pursuant to which the Company is
offering to exchange its own securities, (5) a registration statement relating solely to dividend reinvestment or similar plans,
(6) a resale shelf registration statement relating solely to debt securities of the Company that are convertible into Common Stock
and the underlying shares of Common Stock or (7) a registration pursuant to Section 5.2), the Company will:

 

(i)        promptly
(but in no event less than 10 days before the effective date of the relevant Registration Statement) give to each Holder written
notice thereof; and

 

(ii)        include
in such registration (and any related qualification under state securities laws or other compliance), and in any underwriting involved

 

 

 

    21

     

    

therein, all the Registrable Securities specified
in a written request or requests, made within 5 days after receipt of such written notice from the Company, by any Holder or Holders,
subject, in each case, to the limitations expressed in Section 5.2 and except as set forth in Section 5.3(b) below.

 

(b)        Underwriting.
If the registration of which the Company gives notice is for a registered public offering involving an underwriting, the Company
shall so advise the Holders as a part of the written notice given pursuant to Section 5.3(a)(i). In such event the right of any
Holder to registration pursuant to this Section 5.3 shall be conditioned upon such Holder’s participation in such underwriting
and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein in subject to
the limitations expressed in Section 5.2. All Holders proposing to distribute their Registrable Securities through such underwriting
shall, together with the Company and the other parties distributing their securities through such underwriting, enter into an underwriting
agreement in customary form with the underwriter or underwriters selected for such underwriting by the Company. Notwithstanding
any other provision of this Section 5.3, if the underwriter determines that marketing factors require a limitation of the number
of shares to be underwritten, the underwriter may limit the number of Registrable Securities to be included in the registration
and underwriting, subject to the terms of this Section 5.3. The Company shall so advise all holders of the Company’s securities
that would otherwise be registered and underwritten pursuant hereto, and the number of shares of such securities, including Registrable
Securities, that may be included in the registration and underwriting shall be allocated first to the Company and second
to the Holders and any other holders with registration rights on a pro rata basis based on the total number of Registrable
Securities held by the Holders and such other holders. No such reduction shall (i) reduce the securities being offered by the Company
for its own account to be included in the registration and underwriting, or (ii) subject to the limitations expressed in Section
5.2, reduce the amount of securities of the selling Holders included in the registration below twenty-five percent (25%) of the
total amount of securities included in such registration by all selling stockholders. No securities excluded from the underwriting
by reason of the underwriter’s marketing limitation shall be included in such registration. For the avoidance of doubt, nothing
in this Section 5.3(b) is intended to diminish the number of securities to be included by the Company in the underwriting.

 

(c)        Right
to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by it under
this Section 5.3 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in
such registration.

 

Section 5.4. Expenses
of Registration. All expenses incurred in connection with all registrations effected pursuant to Sections 5.2 and 5.3, including
all registration, filing and qualification fees (including state securities law fees and expenses), printing expenses, escrow fees,
fees and disbursements of counsel for the Company; provided, however, that the Company shall not be required to pay
the fees of Legal Counsel, stock transfer taxes or underwriters’ discounts or selling commissions relating to Registrable
Securities.

 

 

 

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Section 5.5.Obligations
of the Company. Whenever required under this Article V to effect the registration of any Registrable Securities, the Company
shall (in addition to the requirements set forth in Section 5.2(e) with respect to a Registration Statement), as expeditiously
as reasonably possible:

 

(a)        prepare
and file with the SEC such amendments and supplements to such Registration Statement and the prospectus used in connection with
such Registration Statement as may be necessary to keep such Registration Statement effective and to comply with the provisions
of the Securities Act with respect to the disposition of all securities covered by such registration statement in accordance with
the intended methods of disposition by sellers thereof set forth in such registration statement;

 

(b)        permit
any Holder which Holder, in the reasonable judgment of the Company, if deemed to be a controlling person of the Company, to participate
in good faith in the preparation of such Registration Statement and to cooperate in good faith to include therein material, furnished
to the Company in writing, that in the reasonable judgment of the Company should be included;

 

(c)        furnish
to the Holders such numbers of copies of a prospectus, including all exhibits thereto and documents incorporated by reference therein
and a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably
request in order to facilitate the disposition of Registrable Securities owned by them;

 

(d)        in
the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual
and customary form, with the managing underwriter(s) of such offering. Each Holder participating in such underwriting shall also
enter into and perform its obligations under such an agreement;

 

(e)        notify
each Holder of Registrable Securities covered by such Registration Statement as soon as reasonably practicable after notice thereof
is received by the Company of any written comments by the SEC or any request by the SEC or any other federal or state governmental
authority for amendments or supplements to such Registration Statement or such prospectus or for additional information;

 

(f)        notify
each Holder of Registrable Securities covered by such Registration Statement, at any time when a prospectus relating thereto is
required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in
such Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then
existing;

 

(g)        notify
each Holder of Registrable Securities covered by such Registration Statement as soon as reasonably practicable after notice thereof
is received by the Company of the issuance by the SEC of any stop order suspending the effectiveness of such Registration Statement
or any order by the SEC or any other regulatory authority

 

 

 

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preventing or suspending the use
of any preliminary or final prospectus or the initiation or threatening of any proceedings for such purposes, or any notification
with respect to the suspension of the qualification of the Registrable Securities for offering or sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose;

 

(h)        use
its reasonable efforts to prevent the issuance of any stop order suspending the effectiveness of any Registration Statement or
of any order preventing or suspending the use of any preliminary or final prospectus and, if any such order is issued, to obtain
the withdrawal of any such order as soon as practicable;

 

(i)        in
the case of an underwritten offering, make available for inspection, at the Company's headquarters during normal business hours,
by each Holder including Registrable Securities in such registration, any underwriter participating in any distribution pursuant
to such registration, and any attorney, accountant or other agent retained by such Holder or underwriter, all financial and other
records, pertinent corporate documents and properties of the Company, as such parties may reasonably request, and cause the Company’s
officers, directors and employees to supply all information reasonably requested by any such Holder, underwriter, attorney, accountant
or agent in connection with such Registration Statement;

 

(j)        use
its reasonable efforts to register or qualify, and cooperate with the Holders of Registrable Securities covered by such Registration
Statement, the underwriters, if any, and their respective counsel, in connection with the registration or qualification of such
Registrable Securities for offer and sale under the securities or “blue sky” laws of each state and other jurisdiction
of the United States as any such Holder or underwriters, if any, or their respective counsel reasonably request in writing, and
do any and all other things reasonably necessary or advisable to keep such registration or qualification in effect for such period
as required by Section 5.2(a), as applicable; provided that the Company shall not be required to qualify generally to do
business in any jurisdiction where it is not then so qualified or take any action which would subject it to taxation or general
service of process in any such jurisdiction where it is not then so subject;

 

(k)        in
the case of an underwritten offering, obtain for delivery to the underwriters, if any, an opinion or opinions from counsel for
the Company, dated the effective date of the Registration Statement or, in the event of an underwritten offering, the date of the
closing under the underwriting agreement, in customary form, scope and substance, which opinions shall be reasonably satisfactory
to such underwriters and their respective counsel;

 

(l)        in
the case of an underwritten offering, obtain for delivery to the Company and the underwriters, a cold comfort letter from the Company’s
independent certified public accountants in customary form and covering such matters of the type customarily covered by cold comfort
letters as managing underwriter or underwriters reasonably request, dated the date of execution of the underwriting agreement and
brought down to the closing under the underwriting agreement;

 

 

 

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(m)        use
its reasonable efforts to list the Registrable Securities covered by such Registration Statement with any securities exchange on
which the Common Stock is then listed;

 

(n)        provide
and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by the applicable Registration
Statement from and after a date not later than the effective date of such Registration Statement;

 

(o)        cooperate
with Holders including Registrable Securities in such registration and the underwriters, if any, to facilitate the timely preparation
and delivery of certificates representing Registrable Securities to be sold, such certificates to be in such denominations and
registered in such names as such Holders or the managing underwriters may request at least two Business Days prior to any sale
of Registrable Securities; and

 

(p)        use
its reasonable efforts to comply with all applicable securities laws and make available to its Holders, as soon as reasonably practicable,
an earnings statement satisfying the provisions of Section 11(a) of the Securities Act and the rules and regulations promulgated
thereunder.

 

Section 5.6. Indemnification.

 

(a)        The
Company will, and does hereby undertake to, indemnify and hold harmless each Holder of Registrable Securities, each of such Holder’s
officers, directors, employees, partners and agents, and each Person controlling such Holder, with respect to any registration,
qualification or compliance effected pursuant to this Article V, and each underwriter, if any, and each Person who controls any
underwriter, of the Registrable Securities held by or issuable to such Holder, against all claims, losses, damages and liabilities
(or actions in respect thereto) to which they may become subject under the Securities Act, the Exchange Act, or other federal or
state law arising out of or based on (A) any untrue statement (or alleged untrue statement) of a material fact contained in any
prospectus, offering circular or other similar document (including any related Registration Statement, notification, or the like)
incident to any such registration, qualification or compliance, or based on any omission (or alleged omission) to state therein
a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances
in which they were made, (B) any violation or alleged violation by the Company of any federal, state or common law rule or regulation
applicable to the Company in connection with any such registration, qualification or compliance, or (C) any failure to register
or qualify Registrable Securities in any state where the Company or its agents have affirmatively undertaken or agreed in writing
that the Company (the undertaking of any underwriter chosen by the Company being attributed to the Company) will undertake such
registration or qualification on behalf of the Holders of such Registrable Securities (provided that in such instance the
Company shall not be so liable if it has undertaken its reasonable efforts to so register or qualify such Registrable Securities)
and will reimburse, as incurred, each such Holder, each such underwriter and each such director, officer, partner, agent and controlling
person, for any legal and any other expenses reasonably incurred in connection with investigating or defending any such claim,
loss, damage, liability or action; provided that the Company will not be liable in any

 

 

 

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such case to the extent that any such claim, loss,
damage, liability or expense arises out of or is based on any untrue statement or omission made in reliance and in conformity with
written information furnished to the Company by such Holder or underwriter expressly for use therein.

 

(b)        Each
Holder will, and if Registrable Securities held by or issuable to such Holder are included in such registration, qualification
or compliance pursuant to this Article V, does hereby undertake to indemnify and hold harmless the Company, each of its directors,
employees, agents and officers, and each Person controlling the Company, each underwriter, if any, and each Person who controls
any underwriter, of the Company’s securities covered by such a Registration Statement, and each other Holder, each of such
other Holder’s officers, partners, directors and agents and each Person controlling such other Holder, against all claims,
losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any such Registration Statement, prospectus, offering circular or other document, or
any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances in which they were made, and will reimburse, as incurred, the Company, each
such underwriter, each such other Holder, and each such director, officer, employee, agent, partner and controlling Person of the
foregoing, for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim,
loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue
statement) or omission (or alleged omission) was made in such Registration Statement, prospectus, offering circular or other document,
in reliance upon and in conformity with written information furnished to the Company by such Holder expressly for use therein;
provided, however, that the liability of each Holder hereunder shall be limited to the net proceeds received by such
Holder from the sale of securities under such Registration Statement. It is understood and agreed that the indemnification obligations
of each Holder pursuant to any underwriting agreement entered into in connection with any Registration Statement shall be limited
to the obligations contained in this subsection 5.6(b).

 

(c)        Each
party entitled to indemnification under this Section 5.6 (the “Indemnified Party”) shall give notice to the
party required to provide such indemnification (the “Indemnifying Party”) of any claim as to which indemnification
may be sought promptly after such Indemnified Party has actual knowledge thereof, and shall permit the Indemnifying Party to assume
the defense of any such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party, who
shall conduct the defense of such claim or litigation, shall be subject to approval by the Indemnified Party (whose approval shall
not be unreasonably withheld) and the Indemnified Party may participate in such defense at the Indemnifying Party’s expense
if representation of such Indemnified Party would be inappropriate due to actual or potential differing interests between such
indemnified party and any other party represented by such counsel in such proceeding; and provided further that the failure
of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this
Article V, except to the extent that such failure to give notice shall materially adversely affect the Indemnifying

 

 

 

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Party in the defense of any such claim or any such
litigation. An Indemnifying Party, in the defense of any such claim or litigation, may, without the consent of each Indemnified
Party, consent to entry of any judgment or enter into any settlement that includes as an unconditional term thereof the giving
by the claimant or plaintiff therein, to such Indemnified Party, of a release from all liability with respect to such claim or
litigation.

 

(d)        In
order to provide for just and equitable contribution in case indemnification is prohibited or limited by law, the Indemnifying
Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party
as a result of such losses, claims, damages or liabilities in such proportion as is appropriate to reflect the relative fault of
the Indemnifying Party and Indemnified Party in connection with the actions which resulted in such losses, claims, damages or liabilities,
as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall
be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement
of material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied
by, such Indemnifying Party or Indemnified Party, and such party’s relative intent, knowledge, access to information and
opportunity to correct or prevent such actions; provided, however, that, in any case, (i) no Holder will be required
to contribute any amount in excess of the public offering price of all securities offered by it pursuant to such Registration Statement
less all underwriting fees and discounts and (ii) no Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

Section 5.7. Information by Holder.
The Holder or Holders of Registrable Securities included in any registration shall furnish to the Company such information regarding
such Holder or Holders and the distribution proposed by such Holder or Holders as the Company may reasonably request in writing
and as shall be required in connection with any registration, qualification or compliance referred to in this Article V.

 

Section 5.8. Transfer of Registration
Rights. The rights, contained in Sections 5.2 and 5.3 hereof, to cause the Company to register the Registrable Securities,
may be assigned or otherwise conveyed by DSM pursuant to a transfer not prohibited by Section 3.2.

 

Section 5.9. Delay of Registration.
No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result
of any controversy that might arise with respect to the interpretation or implementation of this Article V.

 

Section 5.10.Termination
of Registration Rights. In addition to any termination of this Agreement in accordance with Section 7.1 hereof, the rights
of DSM to cause the Company to register securities under Article V hereof shall terminate on the date when there no longer remaining
any Registrable Securities.

 

    27

     

    

ARTICLE VI

 

ADDITIONAL AGREEMENTS OF THE PARTIES

 

Section 6.1. Protective Provisions.
For so long as DSM is entitled to designate a director of the Board pursuant to Section 2.1(a)(i) of this Agreement, without the
affirmative vote of any then-serving DSM Director, the Company will not (and, where applicable, will not permit any of its Subsidiaries
to) (a) [*] or (b) other than principal and interest payments required by the terms of such agreement (as currently in effect),
use any proceeds from the transactions contemplated by the Prior Securities Purchase Agreement or the Securities Purchase Agreement
to repay any amounts owed by the Company under that certain Loan and Security Agreement, dated as of March 29, 2014, as amended
prior to the date hereof, between the Company and Stegodon Corporation (assignee of Hercules Technology Growth Capital, Inc.) prior
to the Term Loan Maturity Date (as such term is currently defined in such agreement).

 

Section 6.2. Right of
First Negotiation; Toll Manufacturing Option.

 

(a)
       The Company will not agree or commit to enter into any new agreements (or amend or otherwise
modify any existing agreement to cover any new project) with respect to any project in the [*] (the
“[*]”), including the projects set forth on Schedule 6.2(a) attached hereto,
unless the Company has first engaged in good faith negotiations with DSM with respect to such projects for a period of at least
sixty (60) days (the “Right of First Negotiation”); provided, however, that if DSM enters into a commercial
relationship with the Company with respect to any such project that obligates the Company to exclusively develop such project with
DSM, and following 24 months of the launch of such project the product development levels thereunder do not exceed volume thresholds
to be mutually agreed to by DSM and the Company within 90 days of the launch of such project, then the Company will be released
from its exclusivity obligations under such commercial relationship with DSM but the Company shall otherwise remain bound by its
other obligations thereunder. 

 

(b)
       DSM will also have an option (the “Toll Manufacturing Option”) to
use the Brotas 1 or Brotas 2 facility for toll manufacturing of DSM [*] and / or other DSM
products by the Company; provided, however, that (i) such option shall be limited to [*] of the manufacturing capacity of each
such facility, (ii) (a) with respect to Brotas 1, any such products manufactured for DSM must have a higher return to the Company
relative to any alternative projects at Brotas 1 related to the manufacture, distribution, license, sale, transfer or assignment
of [*] available to the Company, as determined in good faith by the Board, and (b) with
respect to Brotas 2, any such products manufactured for DSM must have a higher return to the Company relative to any alternative
projects at Brotas 2 available to the Company, as determined in good faith by the Board. 

 

 

 

 

 

[*] Certain portions denoted with an asterisk have been omitted
and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

    28

     

    

(c)        Notwithstanding
the foregoing, (i) the Toll Manufacturing Option set forth in Section 6.2(b) shall expire if the aggregate annual cash spend by
DSM (calculated for each calendar year beginning on January 1, 2018) in favor of the Company in connection with all commercial
activity with the Company, including payments for production of DSM products, license fees, exclusivity payments and/or collaboration
payments for joint development programs, is less than [*], and (ii) the Toll Manufacturing Option set forth in Section 6.2(b) shall
not be exercisable by DSM if there are no active projects with DSM at Brotas 1 or Brotas 2 following the date that is 36 months
after the Closing.

 

Section 6.3. Further Assurances; Operational
Cost Savings. From time to time, at the reasonable request of any other party hereto and without further consideration, each
party hereto shall execute and deliver such additional documents and take all such further action as may be necessary or appropriate
to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement.
The Company will use reasonable best efforts to implement operational cost/expense savings of at least [*] per annum beginning
on January 1, 2018.

 

Section 6.4. Tranche II Funding.
As of the Closing, the Company hereby acknowledges that the [*] License Agreement described in clause (i) of the definition of
IP License set forth in the Prior Securities Purchase Agreement shall become effective. During the 90-day period following the
Closing (the end of such period, the “Outside Date”), DSM and the Company will in good faith negotiate to mutually
agree on the most critical (operational) parameters for the development of the molecule best suited to achieve the cost targets
defined for [*], including the best molecular biotech intermediate taking into account an adequate subsequent chemical route for
DSM, development costs (which shall be limited to direct costs only), production costs and corresponding value share between the
Company and DSM; it being the intention and desire of the parties that (a) DSM will achieve a per unit cost that is at least [*],
or as otherwise mutually agreed by the Company and DSM, and (b) from and after May 11, 2017, DSM will be charged only for the Company’s
direct costs for development work for the [*] collaboration, provided that the collaboration terms include a value sharing arrangement
for the manufacturing of [*] by the Company for DSM. In the event that the parties do not reach agreement on such parameters prior
to the Outside Date, (i) the Right of First Negotiation set forth in Section 6.2(a) shall terminate and expire with respect to
[*] only, (ii) on the first anniversary of the Closing and each subsequent anniversary thereof, the Company will make a [*] cash
payment to DSM by wire transfer of immediately available funds to a bank account designated by DSM in writing at least two (2)
Business Days prior to each such payment date; provided that the aggregate amount of such payments shall not exceed the Tranche
II Funding Amount and (iii) the Intellectual Property Escrow Agreement described in clause (ii) of the definition of IP License
set forth in the Prior Securities Purchase Agreement shall become effective. Following the Closing, DSM and the Company will in
good faith negotiate a development agreement regarding each of the products listed on Schedule 6.2(a) other than [*], it being
the intention of the parties that (A) DSM will achieve a per unit cost for such product that is competitive, but at least [*] for
such product, or as otherwise mutually agreed by the Company and DSM, and (B) DSM will be charged only for the

 

[*] Certain portions denoted with an asterisk have been omitted
and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.

 

    29

     

    

Company’s direct costs for development work for such product,
provided that the collaboration terms include a value sharing arrangement for the manufacturing of any product under such collaboration
by the Company for DSM. For the avoidance of doubt the prior sentence does not create an obligation to enter into a development
agreement regarding the products listed on Schedule 6.2(a) other than [*], but rather creates an obligation to negotiate in good
faith with respect to any such agreement.

 

ARTICLE VII

 

TERMINATION 

 

Section 7.1. Termination. This
Agreement shall terminate and be of no further force and effect upon and after the Company’s consummation of a Change of
Control; provided, however, that (i) such termination shall not waive or release any party from any liability for such party’s
willful breach of this Agreement occurring prior to such termination and (ii) Section 6.2 (and, with respect thereto, Articles
I and VIII) shall survive such termination and remain in full force and effect following such termination.

 

ARTICLE VIII 

 

MISCELLANEOUS 

 

Section 8.1. Entire Agreement.
This Agreement (together with the Prior Securities Purchase Agreement, the Securities Purchase Agreement, the Warrants, the IP
License (as such term is defined in the Prior Securities Purchase Agreement) and the Company’s Certificate of Designation
of Preferences, Rights and Limitations of Series B 17.38% Convertible Preferred Stock) constitutes the entire understanding and
agreement between the parties as to the matters covered herein and supersedes and replaces any prior understanding, agreement or
statement of intent, in each case, written or oral, of any and every nature with respect thereto.

 

Section 8.2. Specific Performance.
The parties hereto agree that the obligations imposed on them in this Agreement are special, unique and of an extraordinary character,
and that, in the event of breach or threatened breach by any party, damages would not be an adequate remedy and each of the other
parties shall be entitled to specific performance and injunctive and other equitable relief in addition to any other remedy to
which it may be entitled, at law or in equity; and the parties hereto further agree to waive any requirement for the securing or
posting of any bond in connection with the obtaining of any such injunctive or other equitable relief.

 

Section 8.3. Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts
entered into and performed entirely within such state, without regard to conflict of laws principles.

 

Section 8.4. Amendment and Waiver.

 

 

 

[*] Certain portions denoted with an asterisk
have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions.

 

 

 

    30

     

    

(a)        This
Agreement may be amended or modified, and any provision hereof may be waived, in whole or in part, at any time pursuant to an agreement
in writing executed by the Company and DSM.

 

(b)        Any
failure by any party at any time to enforce any of the provisions of this Agreement shall not be construed a waiver of such provision
or any other provisions hereof.

 

Section 8.5. Binding Effect.
Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the parties’
successors and permitted assigns.

 

Section 8.6. Notices. Any and
all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via
facsimile or email at the facsimile number or email address specified in this Section prior to 6:30 p.m. (Pacific Time) on a Business
Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile or email
at the facsimile number or email address specified in this Section on a day that is not a Business Day or later than 6:30 p.m.
(Pacific Time) on any Business Day, (c) the Business Day following the date of deposit with a nationally recognized overnight courier
service, or (d) upon actual receipt by the party to whom such notice is required to be given. The addresses, facsimile numbers
and email addresses for such notices and communications are those set forth on the signature pages hereof, or such other address
or facsimile number as may be designated in writing hereafter, in the same manner, by any such Person.

 

Section 8.7. Severability.
If any portion of this Agreement shall be declared void or unenforceable by any court or administrative body of competent jurisdiction,
such portion shall be deemed severable from the remainder of this Agreement, which shall continue in all respects valid and enforceable.

 

Section 8.8. Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together
shall constitute a single instrument.

 

Section 8.9. Prior Agreement.
Pursuant to Section 8.4(a) of the Prior Agreement, effective and contingent upon execution of this Agreement by the Company and
DSM, the Prior Agreement is hereby amended and restated in its entirety to read as set forth in this Agreement, and the Company
and DSM shall be bound by the provisions hereof.

 

[The remainder of this page intentionally left
blank]

 

 

 

    31

     

    

IN WITNESS WHEREOF, each of the undersigned
has executed this Agreement or caused this Agreement to be executed on its behalf as of the date first written above.

 

	 	AMYRIS, INC.
	 	 	 	 
	 	By:	/s/ John Melo
	 	 	Name	John Melo
	 	 	Title:	President and CEO
	 	 	 	 
	 	Address for Notice:
	 	 	 	 
	 	 	5885 Hollis Street, Suite 100
	 	 	Emeryville, CA  94608
	 	 	 	 
	 	Facsimile No.:	 
	 	 	 	 
	 	Email Address:
	 	 	 	 
	 	 	 	 
	 	Attn:	General Counsel
	 	 	 	 
	 	with a copy (which shall not constitute
	 	notice) to:
	 	 	 	 
	 	Fenwick & West LLP
	 	801 California Street
	 	Mountain View, CA 94110
	 	Attention:
	 	Email Address:

 

 

 

 

 

     

     

    

IN WITNESS WHEREOF, each of the undersigned
has executed this Agreement or caused this Agreement to be executed on its behalf as of the date first written above.

 

 

 

	 	DSM International B.V.
	 	 	 	 
	 	By:	/s/ Hugh Welsh
	 	 	Name	Hugh Welsh
	 	 	Title:	President DSM NA
	 	 	 	 
	 	By:	 	 
	 	 	Name	 
	 	 	Title:	 
	 	 	 	 
	 	Address for Notice:	6411 TE Herleen,

the Netherlands
	 	 	 	 
	 	Attention:	General Counsel
	 	 	 	 
	 	Facsimile No.:	 
	 	 	 	 
	 	Email Address:
	 	 	 	 
	 	with a copy (which shall not constitute
	 	notice) to:
	 	 	 	 
	 	Latham & Watkins LLP
	 	330 North Wabash Ave, Suite 2800
	 	Chicago, Illinois 60611
	 	Attention:
	 	 
	 	Email Address:

 

 

 

 

 

 

     

     

    

Exhibit A

 

List of Competitors

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[*] Certain portions denoted with an asterisk
have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions.

 

 

 

     

     

    

Schedule 6.2(a)

 

Subject to those pre-existing commercial arrangements described
below, as in effect as of the date hereof, projects relating to [*].

 

Pre-existing commercial arrangements: The Company
has pre-existing commercial arrangements with (i) [*] and (ii) [*].

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[*] Certain portions denoted with an asterisk
have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions.

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