Document:

vrca-ex1022_66.htm

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

Exhibit 10.22

 

FIRST Amendment

to 

MEZZANINE Loan and security agreement

 

This First Amendment to Loan and Security Agreement (this “Amendment” ) is entered into this 26th day of October, 2020 by and among (a) SILICON VALLEY BANK, a California corporation (“SVB” ), in its capacity as administrative agent and collateral agent (“Agent”), (b) SILICON VALLEY BANK, a California corporation, as a lender, (c) WESTRIVER INNOVATION LENDING FUND VIII, L.P., a Delaware limited partnership (“WestRiver”), as a lender (SVB and WestRiver and each of the other “ Lenders”  from time to time a party hereto are referred to herein collectively as the “Lenders”  and each individually as a “Lender”), and (d) VERRICA PHARMACEUTICALS INC., a Delaware corporation (“Borrower”), whose address is 10 North High Street, Suite 200, West Chester, Pennsylvania 19380. 

Recitals

A.Borrower, Agent and the Lenders have entered into that certain Mezzanine Loan and Security Agreement dated as of March 10, 2020 (as the same may from time to time be amended, modified, supplemented or restated, the “Loan Agreement”).  

B.The Lenders have extended credit to Borrower for the purposes permitted in the Loan Agreement.  

C.Borrower has requested that the Lenders amend the Loan Agreement to (i) provide for a new term loan, (ii) modify and incorporate new financial covenants, and (iii) make certain other revisions to the Loan Agreement as more fully set forth herein. 

D.The Lenders have agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

Agreement

Now, Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

1.Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

2.Amendments to Loan Agreement.

2.1Section 2.1.1 (Term Loan Advances).  Section 2.1.1(a) of the Loan Agreement is amended in its entirety and replaced with the following: 

“(a)Availability.Subject to the terms and conditions of this Agreement, upon Borrower’s request, the Lenders, severally and not jointly, shall make one (1) term loan advance to Borrower on or about the Effective Date in an original principal amount of Thirty-Five Million Dollars ($35,000,000.00) according to each Lender’s Term Loan Commitment as set forth on Schedule 1 hereto (the “Term A Loan Advance”).  Subject to the terms and conditions of this Agreement, upon Borrower’s request, (i) during the First Draw Period, the Lenders, severally and not jointly, shall make one (1) term loan advance available to Borrower in an original principal amount of Five Million Dollars ($5,000,000.00) according to each Lender’s Term Loan Commitment as set forth on Schedule 1 hereto (the “Term B1 Loan Advance”) and (ii) during the 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

Second Draw Period, the Lenders, severally and not jointly, shall make one (1) term loan advance available to Borrower in an original principal amount of Ten Million Dollars ($10,000,000.00) according to each Lender’s Term Loan Commitment as set forth on Schedule 1 hereto (the “Term B2 Loan Advance”, together with the Term B1 Loan Advance, the “Term B Loan Advances”). The Term A Loan Advance and the Term B Loan Advances are hereinafter referred to singly as a “Term Loan Advance” and collectively as the “Term Loan Advances”. After repayment, no Term Loan Advance (or any portion thereof) may be reborrowed.”

2.2Section 2.1.1 (Term Loan Advances).  Section 2.1.1(d) of the Loan Agreement is amended in its entirety and replaced with the following:

“(d)          Permitted Prepayment.  Borrower shall have the option to prepay all, but not less than all, of the Term Loan Advances advanced by the Lenders under this Agreement, provided Borrower (i) delivers written notice to Agent of its election to prepay the Term Loan Advances at least [***] Business Days prior to such prepayment, and (ii) pays to Agent, for the account of the Lenders in accordance with its respective Pro Rata Share, on the date of such prepayment (A) the outstanding principal plus accrued and unpaid interest with respect to the Term Loan Advances, (B) the Final Payment, (C) the Prepayment Premium, and (D) all other sums, if any, that shall have become due and payable with respect to the Term Loan Advances, including Lenders’ Expenses and interest at the Default Rate with respect to any past due amounts.”

2.3Section 6.7 (Financial Covenants). Section 6.7 is amended in its entirety and replaced with the following:

“6.7Financial Covenants.

 

(a)Trailing Six (6) Month Net Revenue. During a Testing Period, Borrower shall achieve (calculated with respect to Borrower only and not on a consolidated basis) for the most recent calendar quarter then-ended and each calendar quarter thereafter if such Testing Period is still in effect, minimum net revenue, generated from the sale of Borrower’s products (excluding revenue generated with respect to licensing arrangements), determined in accordance with GAAP, measured on a trailing six (6) month basis, of at least:

 

	
Trailing Six (6) Month Period Ending 
	
Minimum Revenue 

	
[***]
	
[***]

	
[***]
	
[***]

	
[***]
	
[***]

	
[***]
	
[***]

 

With respect to the period ending [***] and each calendar quarter thereafter, the levels of minimum revenue shall be mutually agreed upon between Borrower, Agent and Lenders, based upon, among other factors, Borrower’s Board-approved operating plan and financial projections, which shall be acceptable to Agent and Lenders, and Lenders’ then current credit underwriting. With respect thereto, Borrower’s failure to agree in writing (which agreement shall be set forth in a written amendment to this Agreement) on or before [***], to any net revenue covenant levels proposed by Agent and Lenders with respect to any period from [***] through and including [***], shall result in an immediate Event of Default for which there shall be no grace or cure period.

 

(b)Liquidity Ratio. Maintain at all times (calculated with respect to Borrower only and not on a consolidated basis), to be tested as of the last of each month, a Liquidity Ratio of greater than or equal to [***].”

 

2.4Section 9.1 (Rights and Remedies).  Section 9.1(a) is amended in its entirety and replaced with the following: 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

“(a) declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Agent or any Lender); provided that (i) in the case of an Event of Default solely under Section 6.7(a) hereof, the Agent and Lenders shall not be permitted to declare Obligations in respect of the Term A Loan Advance immediately due and payable to the extent not otherwise then due and payable or to exercise any other rights or remedies with respect to the Term A Loan Advance and (ii) in the case of an Event of Default solely under Section 6.7(b) hereof, the Agent and Lenders shall not be permitted to declare Obligations in respect of the Term B Loan Advances immediately due and payable to the extent not otherwise then due and payable or to exercise any other rights or remedies with respect to the Term B Loan Advances;”

2.5Section 14 (Definitions).  The following terms and their respective definitions set forth in Section 14.1 are amended in their entirety and replaced with the following:

““Final Payment” is a payment (in addition to and not in substitution for the regular monthly payments of principal plus accrued interest) equal to Three Million Seven Hundred Fifty Thousand Dollars ($3,750,000.00), due on the earliest to occur of (a) the Term Loan Maturity Date, (b) the payment in full of such Term Loan Advance, (c) as required by Section 2.1.1(d) or 2.1.1(e) or (d) the termination of this Agreement.”

 

““Prepayment Premium” shall be an additional fee, payable to Agent, for the ratable benefit of the Lenders based on their Pro Rata Share, with respect to the Term Loan Advances, in an amount equal to:

 

(a)for a prepayment of the Term Loan Advances made on or prior to the first (1st) anniversary of the First Amendment Effective Date, One Million Five Hundred Thousand Dollars ($1,500,000.00);

 

(b)for a prepayment of the Term Loan Advances made after the first (1st) anniversary of the First Amendment Effective Date, but on or prior to the second (2nd) anniversary of the First Amendment Effective Date, One Million Dollars ($1,000,000.00); 

 

(c)for a prepayment of the Term Loan Advances made after the second (2nd) anniversary of the First Amendment Effective Date, but on or prior to the third (3rd) anniversary of the First Amendment Effective Date, Five Hundred Thousand Dollars ($500,000.00); and 

 

(d)for a prepayment of the Term Loan Advances made after the third (3rd) anniversary of the First Amendment Effective Date, [***] ([***]).” 

 

 ““Repayment Schedule” means the period of time equal to twenty-four (24) consecutive months, which shall be reduced to eighteen (18) consecutive months, once the Term B2 Loan Advance is made.”

 

““Term Loan Amortization Date” means April 1, 2022, which shall be extended until October 1, 2022, once the Term B2 Loan Advance is made.”

 

““Testing Period” is, at all times, commencing as of [***], when unrestricted and unencumbered cash (other than Liens in favor of Agent for the ratable benefit of the Lenders under this Agreement) held in accounts in the name of Borrower maintained with SVB is less than [***] the aggregate principal amount outstanding under the Term B Loan Advances.”

 

2.6Section 14.1 (Definitions).  The Loan Agreement is amended by inserting the following new terms and their respective definitions to appear alphabetically in Section 14.1 thereof:

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

““2020 Milestone Event #1” means delivery by Borrower to Agent, on or prior to March 31, 2021, of evidence satisfactory to Agent and each Lender, in Agent’s and each Lender’s sole but reasonable discretion, that the FDA has accepted the new drug application resubmission of VP-102 for the treatment of Molluscum Contagiosum on or prior to March 31, 2021.”

 

““2020 Milestone Event #2” ” means (i) the 2020 Milestone Event #1 has occurred and (ii) delivery by Borrower to Agent, on or prior to September 30, 2021, of evidence satisfactory to Agent and each Lender, in Agent’s and each Lender’s sole but reasonable discretion, that (A) Borrower has received FDA approval of VP-102 for the treatment of Molluscum Contagiosum on or prior to September 30, 2021 and (B) Borrower has been in compliance with the Liquidity Ratio financial covenant set forth in Section 6.7(b) hereof, at all times through and including the Funding Date of the Term B2 Loan Advance.”

 

““FDA” means the United States Food and Drug Administration, and any successor thereto.”

 

 ““First Amendment Effective Date” is October 26, 2020.”

 

““First Draw Period” is the period of time commencing upon the occurrence of the 2020 Milestone Event #1 and continuing through the earlier to occur of (a) March 31, 2021 or (b) an Event of Default.”

 

““Liquidity Ratio” is, calculated with respect to Borrower only and not on a consolidated basis, the ratio of (i) (A) Borrower’s unrestricted and unencumbered cash and Cash Equivalents at Bank and Bank’s Affiliates, plus (B) the Availability Amount (as defined in the Senior Loan Agreement), to (ii) (A) the aggregate principal amount outstanding under the Revolving Line (as defined in the Senior Loan Agreement), plus (B) the aggregate principal amount outstanding under the Term A Loan Advance.”  

 

““Second Draw Period” is the period of time commencing upon the occurrence of the 2020 Milestone Event #2 and continuing through the earlier to occur of (a) September 30, 2021, and (b) an Event of Default.”

 

““Term B Loan Advances” is defined in Section 2.1.1(a).”

 

““Term B1 Loan Advance” is defined in Section 2.1.1(a).”

 

““Term B2 Loan Advance” is defined in Section 2.1.1(a).”

 

2.7Exhibit B (Compliance Certificate).  The Compliance Certificate appearing as Exhibit B to the Loan Agreement is deleted in its entirety and replaced with the Compliance Certificate attached as Schedule 1 attached hereto.

2.8Schedule 1 (Lenders and Commitments).  Lenders and Commitments appearing as Schedule 1 to the Loan Agreement is deleted in its entirety and replaced with the Lenders and Commitments attached as Schedule 2 attached hereto.

3.Limitation of Amendments.

3.1The amendments set forth in Section 2 above are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Agent or the Lenders may now have or may have in the future under or in connection with any Loan Document.

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

3.2This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

4.Representations and Warranties.  To induce Agent and the Lenders to enter into this Amendment, Borrower hereby represents and warrants to Agent and the Lenders as follows:

4.1Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct in all material respects as of such date), and (b) no Event of Default has occurred and is continuing;

4.2Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

4.3The organizational documents of Borrower delivered to Agent on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

4.4The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 

4.5The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 

4.6The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and

4.7This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

5.Post-Closing Deliverable.  Borrower shall deliver to Agent within [***] days after the First Amendment Effective Date, a duly executed bailee’s waiver in favor of Agent and Lenders, in form and substance acceptable to Agent and Lenders, for the following location where Borrower maintains property with a third party: [***]. 

6.Updated Perfection Certificate.  Borrower has delivered an updated Perfection Certificate in connection with this Amendment dated as of the date hereof (the “Updated Perfection Certificate” ) which Updated Perfection Certificate shall supersede in all respects that certain Perfection Certificate dated as of March 10, 2020.  Borrower hereby acknowledges and agrees that all references in the Loan Agreement to “Perfection Certificate” shall hereinafter be deemed to be references to the Updated Perfection Certificate, as defined herein. 

7.Integration.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

8.Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

9.Effectiveness.  This Amendment shall be deemed effective upon (a) the due execution and delivery to Agent of this Amendment by each party hereto and (b) Borrower’s payment to Agent of Agent’s and the Lenders’ legal fees and expenses incurred in connection with this Amendment.

10.Governing Law.  The provisions of Section 12 of the Loan Agreement shall apply to this Amendment as if set forth herein, mutatis mutandis. 

[Signature page follows.]

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

In Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

 

	
 
	
BORROWER:

	
 
	
 
	
 

	
 
	
VERRICA PHARMACEUTICALS INC.

	
 
	
 
	
 

	
 
	
By
	
/s/ A. Brian Davis

	
 
	
Name:
	
A. Brian Davis

	
 
	
Title:
	
Chief Financial Officer

	
 
	
 
	
 

	
 
	
AGENT:

	
 
	
 
	
 

	
 
	
SILICON VALLEY BANK, as Agent

	
 
	
 
	
 

	
 
	
By
	
/s/ Tom Gordon

	
 
	
Name:
	
Tom Gordon

	
 
	
Title:
	
Managing Director

	
 
	
 
	
 

	
 
	
LENDERS:

	
 
	
 
	
 

	
 
	
SILICON VALLEY BANK

	
 
	
 
	
 

	
 
	
By
	
/s/ Tom Gordon

	
 
	
Name:
	
Tom Gordon

	
 
	
Title:
	
Managing Director

	
 
	
 
	
 

	
 
	
WESTRIVER INNOVATION LENDING FUND VIII, L.P.

	
 
	
 
	
 

	
 
	
By
	
/s/ Trent Dawson

	
 
	
Name:
	
Trent Dawson

	
 
	
Title:
	
Chief Financial Officer

 

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

Schedule 1

EXHIBIT B

COMPLIANCE CERTIFICATE

Date:  _______________________

 

TO:       SILICON VALLEY BANK, as Agent, SVB, and WESTRIVER INNOVATION LENDING FUND VIII, L.P., as Lender

FROM:  VERRICA PHARMACEUTICALS INC.

The undersigned authorized officer of VERRICA PHARMACEUTICALS INC. (“Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement among Borrower, SVB, and WestRiver (the “Loan Agreement”), (1) Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.8 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Agent.  Attached are the required documents supporting the certification.  The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

Please indicate compliance status by circling Yes/No under “Complies” column.

 

	
Reporting Covenants
	
Required
	
Complies

	
Monthly revenue, net profit and cash balance

statements with Compliance Certificate 
	
Monthly within 30 days
	
Yes   No

	
Quarterly financial statements with 

Compliance Certificate
	
Within 45 days of quarter end (within 90 days of quarter end for Q4)  
	
Yes   No

	
Annual financial statement with Compliance Certificate (CPA Audited) 
	
FYE within 180 days
	
Yes   No

	
10-Q Report
	
Within 45 days of quarter end for 10-Q (within 90 days of quarter end for Q4)
	
Yes   No

	
Filed 10‐Q, 10‐K and 8-K
	
Within 5 days after filing with SEC
	
Yes   No

	
Board approved projections
	
30 days of FYE and as amended/updated
	
Yes   No

 

	
Financial Covenants
	
Required
	
Actual
	
Complies

	
Minimum Revenue*
	
$                *
	
$
	
Yes   No

	
Liquidity Ratio
	
[***]
	
___[***]
	
Yes   No

 

* as set forth in Section 6.7(a)

As of the date of this Certificate, the following financial covenant analysis and information set forth in Schedule 1 attached hereto are true and accurate for the period indicated.

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

Other Matters

 

	
Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries?  If yes, provide copies of any such amendments or changes with this Compliance Certificate.
	
Yes
	
No

 

The following are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to note.”)

 

 

 

 

	
 
	
VERRICA PHARMACEUTICALS INC. 
	
 
	
AGENT USE ONLY

	
 
	
 
	
 
	
 

	
By:
	
 
	
Received by:
	
 

	
 
	
 
	
 
	
authorized signer

	
Name:
	
 
	
Date:
	
 

	
Title:
	
 
	
Verified:
	
 

	
 
	
 
	
 
	
authorized signer

	
 
	
 
	
Compliance Status:
	
Yes     No

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

Schedule 1 to Compliance Certificate

Financial Covenants of Borrower

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.

Dated:    ____________________

	
I.
	
Minimum Revenue (Section 6.7(a))

	
Required: 
	
During a Testing Period, Borrower shall achieve (calculated with respect to Borrower only and not on a consolidated basis) for the most recent calendar quarter then-ended and each calendar quarter thereafter if such Testing Period is still in effect, minimum net revenue, generated from the sale of Borrower’s products (excluding revenue generated with respect to licensing arrangements), determined in accordance with GAAP, measured on a trailing six (6) month basis, of at least:  

 

	
Trailing Six (6) Month Period Ending 
	
Minimum Revenue 

	
[***]
	
[***]

	
[***]
	
[***]

	
[***]
	
[***]

	
[***]
	
[***]

 

Actual:

 

				
	
A.
	
Minimum Revenue 
	
$
	
 

 

Is line A equal to or greater than ________*?

* As set forth above.

                No, not in compliance                                                                              Yes, in compliance

 

II.Liquidity Ratio (Section 6.7(b))

	
Required:
	
Maintain at all times (calculated with respect to Borrower only and not on a consolidated basis), to be tested as of the last of each month, a Liquidity Ratio of greater than or equal to [***].

 

Actual:

 

	
A.
	
Aggregate value of the unrestricted and unencumbered cash and Cash Equivalents of Borrower
	
$
	
 

	
B.
	
Availability Amount (as defined in the Senior Loan Agreement)
	
$
	
 

	
C.
	
Sum of lines A and B
	
$
	
 

	
D.
	
Aggregate principal amount outstanding under the Revolving Line (as defined in the Senior Loan Agreement)
	
$
	
 

	
E
	
Aggregate principal amount outstanding under the Term A Loan Advance 
	
$
	
 

	
F
	
Sum of lines D and E
	
$
	
 

	
G.
	
Liquidity Ratio (Line C divided by line F)
	
 
	
 

 

Is line G equal to or greater than ________:[***]?

 

                No, not in compliance                                                                              Yes, in compliance

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED

 

SCHEDULE 2

SCHEDULE 1

LENDERS AND COMMITMENTS

TERM LOAN COMMITMENTS

 

Term A Loan Advance

	
Lender
	
Term A Loan Advance Commitment
	
Term A Loan Advance Commitment Percentage

	
Silicon Valley Bank
	
$17,500,000.00
	
50.0%

	
WestRiver Innovation Lending Fund VIII, L.P.
	
$17,500,000.00
	
50.0%

	
TOTAL
	
$35,000,000.00
	
100.0000%

 

Term B1 Loan Advance

	
Lender
	
Term B1 Loan Advance Commitment
	
Term B1 Loan Advance Commitment Percentage

	
Silicon Valley Bank
	
$2,500,000.00
	
50.0%

	
WestRiver Innovation Lending Fund VIII, L.P.
	
$2,500,000.00
	
50.0%

	
TOTAL
	
$5,000,000.00
	
100.0000%

 

Term B2 Loan Advance

	
Lender
	
Term B2 Loan Advance Commitment
	
Term B2 Loan Advance Commitment Percentage

	
Silicon Valley Bank
	
$5,000,000.00
	
50.0%

	
WestRiver Innovation Lending Fund VIII, L.P.
	
$5,000,000.00
	
50.0%

	
TOTAL
	
$10,000,000.00
	
100.0000%EX-4.1

 Exhibit 4.1 

FOURTEENTH SUPPLEMENTAL INDENTURE 
 Dated as
of March 17, 2021 
 Between 

MICROSOFT CORPORATION, 
 as Issuer 

and 
 THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., 
 as Trustee 
 to

 INDENTURE 
 Dated as of
May 18, 2009 
 Between 

MICROSOFT CORPORATION, as Issuer 
 and

 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as trustee 

 
  

2.921% Notes due 2052 
 3.041% Notes due
2062 
  
  

 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
		
	 ARTICLE 1. DEFINITIONS
	  	 	2	 
			
	 Section 1.1.
	 	 Definition of Terms
	  	 	2	 
		
	 ARTICLE 2. TERMS AND CONDITIONS OF NOTES
	  	 	2	 
			
	 Section 2.1.
	 	 Designation and Principal Amount
	  	 	2	 
			
	 Section 2.2.
	 	 Maturity
	  	 	3	 
			
	 Section 2.3.
	 	 Further Issues
	  	 	3	 
			
	 Section 2.4.
	 	 Payment
	  	 	3	 
			
	 Section 2.5.
	 	 Global Securities
	  	 	3	 
			
	 Section 2.6.
	 	 Interest
	  	 	3	 
			
	 Section 2.7.
	 	 Authorized Denominations
	  	 	4	 
			
	 Section 2.8.
	 	 Redemption and Sinking Fund
	  	 	4	 
			
	 Section 2.9.
	 	 Ranking
	  	 	4	 
			
	 Section 2.10.
	 	 Appointments
	  	 	4	 
			
	 Section 2.11.
	 	 Defeasance
	  	 	4	 
		
	 ARTICLE 3. FORM OF NOTES
	  	 	4	 
			
	 Section 3.1.
	 	 Form of Notes
	  	 	4	 
		
	 ARTICLE 4. ORIGINAL ISSUE OF NOTES
	  	 	4	 
			
	 Section 4.1.
	 	 Original Issue of Notes
	  	 	4	 
		
	 ARTICLE 5. MISCELLANEOUS
	  	 	5	 
			
	 Section 5.1.
	 	 Ratification of Indenture
	  	 	5	 
			
	 Section 5.2.
	 	 Trustee Not Responsible for Recitals
	  	 	5	 
			
	 Section 5.3.
	 	 Governing Law
	  	 	5	 
			
	 Section 5.4.
	 	 Separability
	  	 	5	 
			
	 Section 5.5.
	 	 Counterparts
	  	 	5	 
			
	 Section 5.6.
	 	 Electronic Means
	  	 	6	 
		
	 EXHIBIT A – Form of 2052 Notes
	  	 	A-1	 
		
	 EXHIBIT B – Form of 2062 Notes
	  	 	B-1	 

  

  
 i 

 FOURTEENTH SUPPLEMENTAL INDENTURE, dated as of March 17, 2021 (this “Supplemental
Indenture”), between MICROSOFT CORPORATION, a corporation duly organized and existing under the laws of the State of Washington (the “Company”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking
association duly organized and existing under the laws of the United States, as Trustee (the “Trustee”). 
 RECITALS OF THE COMPANY

 WHEREAS, the Company executed and delivered to The Bank of New York Mellon Trust Company, N.A., a national banking association, as trustee, the
Indenture, dated as of May 18, 2009 (the “Indenture”), to provide for the issuance of the Company’s debt securities (the “Securities”), to be issued in one or more series, a First Supplemental Indenture,
dated as of May 18, 2009, a Second Supplemental Indenture, dated as of September 27, 2010, a Third Supplemental Indenture, dated as of February 9, 2011, a Fourth Supplemental Indenture, dated as of November 7, 2012, a Fifth
Supplemental Indenture, dated as of May 2, 2013, a Sixth Supplemental Indenture, dated as of May 2, 2013, a Seventh Supplemental Indenture, dated as of December 6, 2013, an Eighth Supplemental Indenture, dated as of December 6,
2013, a Ninth Supplemental Indenture, dated as of February 12, 2015, a Tenth Supplemental Indenture, dated as of November 3, 2015, an Eleventh Supplemental Indenture, dated as of August 8, 2016, a Twelfth Supplemental Indenture, dated
as of February 6, 2017 and a Thirteenth Supplemental Indenture, dated as of June 1, 2020; 
 WHEREAS, pursuant to the terms of the
Indenture, the Company desires to provide for the establishment of two new series of its Securities under the Indenture to be known as its “2.921% Notes due 2052” (the “2052 Notes”) and “3.041% Notes due 2062”
(the “2062 Notes” and, together with the 2052 Notes, the “Notes”), the form and substance and the terms, provisions and conditions thereof to be set forth as provided in the Indenture and this Supplemental
Indenture; 
 WHEREAS, the Board of Directors of the Company by duly adopted resolutions has authorized the proper officers of the Company to, among
other things, determine the terms of the Securities to be issued under the Indenture and execute any and all appropriate documents necessary or appropriate to effect each such issuance; 

WHEREAS, this Supplemental Indenture is being entered into pursuant to the provisions of Section 901 of the Indenture; 

WHEREAS, the Company has requested that the Trustee execute and deliver this Supplemental Indenture; and 

WHEREAS, all things necessary to make this Supplemental Indenture a valid agreement of the Company, in accordance with its terms, and to make the
Notes, when executed by the Company and authenticated and delivered by the Trustee, the valid obligations of the Company, have been performed, and the execution and delivery of this Supplemental Indenture has been duly authorized in all respects.

 NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH: 

For and in consideration of the premises and the purchase of the Notes by the Holders thereof, and for the purpose of setting forth, as provided in the
Indenture, the forms and terms of the Notes, the Company covenants and agrees, with the Trustee, as follows: 
 ARTICLE 1. 

DEFINITIONS 

Section 1.1.    Definition of Terms. 

(a)      “Electronic Means” shall mean the following communications methods: e-mail, facsimile transmission, secure electronic transmission containing applicable authorization codes, passwords and/or authentication keys issued by the Trustee, or another method or system specified by the
Trustee as available for use in connection with its services hereunder. 
 (b)      Unless the context otherwise
requires: 
 (i)       each term defined in the Indenture has the same meaning when used in this
Supplemental Indenture; 
 (ii)       the singular includes the plural, and vice versa;

 (iii)      headings are for convenience of reference only and do not affect interpretation. 

ARTICLE 2. 
 TERMS AND CONDITIONS OF NOTES

 Section 2.1.    Designation and Principal Amount. 

(a)        There is hereby authorized and established a series of Securities under the Indenture, designated as
the “2.921% Notes due 2052,” which is initially limited in aggregate principal amount to $6,250,000,000 (except upon registration of transfer of, or in exchange for, or in lieu of, other 2052 Notes pursuant to Section 304, 305, 306,
906 or 1107 of the Indenture and except for any Securities which, pursuant to Section 303 of the Indenture, are deemed never to have been authenticated and delivered). 

(b)        There is hereby authorized and established a series of Securities under the Indenture, designated as
the “3.041% Notes due 2062,” which is initially limited in aggregate principal amount to $1,934,966,000 (except upon registration of transfer of, or in exchange for, or in lieu of, other 2062 Notes pursuant to Section 304, 305, 306,
906 or 1107 of the Indenture and except for any Securities which, pursuant to Section 303 of the Indenture, are deemed never to have been authenticated and delivered). 

  
 2 

 (c)          The Notes may be authenticated by the
Trustee by manual, facsimile or electronic signature. 
 Section 2.2.    Maturity. 

(a)          The Stated Maturity of principal of the 2052 Notes shall be March 17, 2052. 

(b)          The Stated Maturity of principal of the 2062 Notes shall be March 17, 2062. 

Section 2.3.    Further Issues. The Company may at any time and from time to time, without the consent of the Holders
of any series of the Notes, issue additional notes of any series; provided that such additional notes are fungible for U.S. federal income tax purposes with the relevant series of Notes. Any such additional notes shall have the same ranking,
interest rate, maturity date and other terms as the relevant series of Notes. Any such additional notes of a series, together with the Notes of the relevant series herein provided for, shall constitute a single series of Securities under the
Indenture. 
 Section 2.4.    Payment. Principal of (and the applicable redemption price, if any) and interest on the
Notes shall be payable in U.S. dollars in immediately available funds at the office or agency of the Company maintained for such purpose, which shall initially be at an office of the Trustee located at 400 South Hope Street, Suite 500, Los Angeles,
California 90071, Attention: Corporate Trust Administration – Microsoft Corporation; provided, however, that, at the option of the Company, the Company may pay interest by check mailed to the Holder entitled thereto at such
Holder’s address as it appears on the Security Register at the close of business on the Regular Record Date for such Holder or by wire transfer to an account appropriately designated by the Holder to the Company and the Trustee; and
provided, further, that the Company will pay principal of and interest on, the Notes in global form registered in the name of or held by The Depository Trust Company (“DTC”) or such other Depositary as any Officer of
the Company may from time to time designate, or its respective nominee, by wire in immediately available funds to such Depositary or its nominee, as the case may be, as the registered holder of such Notes in global form. 

Section 2.5.    Global Securities. Upon the original issuance, the Notes will be represented by Global Securities
registered in the name of Cede & Co., the nominee of DTC. The Company will deposit the Global Securities with DTC or its custodian and register the Global Securities in the name of Cede & Co. 

Section 2.6.     Interest. 

(a)          The 2052 Notes will bear interest (computed on the basis of a 360-day year consisting of twelve 30-day months) from March 17, 2021 at the rate of 2.921% per annum, payable semi-annually in arrears. Interest payable on each Interest
Payment Date will include interest accrued from March 17, 2021, or from the most recent Interest Payment Date to which interest has been paid or duly provided for. The Interest Payment Dates on which such interest shall be payable are
March 17 and September 17, commencing on September 17, 2021; and the Regular Record Date for the interest payable on any Interest Payment Date is the close of business on the March 2 or the September 2, as the case may be,
next preceding the relevant Interest Payment Date. 

  
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 (b)        The 2062 Notes will bear interest (computed on the
basis of a 360-day year consisting of twelve 30-day months) from March 17, 2021 at the rate of 3.041% per annum, payable semi-annually in arrears. Interest payable
on each Interest Payment Date will include interest accrued from March 17, 2021, or from the most recent Interest Payment Date to which interest has been paid or duly provided for. The Interest Payment Dates on which such interest shall be
payable are March 17 and September 17, commencing on September 17, 2021; and the Regular Record Date for the interest payable on any Interest Payment Date is the close of business on the March 2 or the September 2, as the
case may be, next preceding the relevant Interest Payment Date. 
 Section 2.7.    Authorized Denominations. The
Notes shall be issuable in denominations of $2,000 and integral multiples of $1,000 in excess thereof. 

Section 2.8.    Redemption and Sinking Fund. The Notes shall not be redeemable at the option of the Company or at the
option of the Holders except as set forth in the Notes. The Notes shall not be entitled to the benefit of any sinking fund. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by the applicable Depositary
pursuant to the applicable Depositary procedures. 
 Section 2.9.    Ranking. The Notes shall be senior unsecured
debt securities of the Company, ranking equally with the Company’s other unsecured and unsubordinated debt. 

Section 2.10.     Appointments. The Trustee will be the Trustee, the initial Security Registrar and the initial Paying
Agent for the Notes under the Indenture, as supplemented by this Supplemental Indenture. 

Section 2.11.    Defeasance. The Company may elect, at its option at any time, pursuant to Section 1301 of the
Indenture, to have Section 1302 or Section 1303 of the Indenture, or both, apply to the 2052 Notes or the 2062 Notes, or all, or any principal amount thereof. 

ARTICLE 3. 
 FORM OF NOTES 

Section 3.1.    Form of Notes. The Notes and the Trustee’s Certificate of Authentication to be endorsed thereon
are to be substantially in the forms set forth in Exhibits A and B hereto. 
 ARTICLE 4. 

ORIGINAL ISSUE OF NOTES 

Section 4.1.    Original Issue of Notes. The Notes may, upon execution of this Supplemental Indenture, be executed by
the Company and delivered to the Trustee for authentication, and the Trustee shall, upon Company Order, authenticate and deliver such Notes as in such Company Order provided. 

  
 4 

 ARTICLE 5. 

MISCELLANEOUS 

Section 5.1.    Ratification of Indenture. The Indenture, as supplemented by this Supplemental Indenture, is in all
respects ratified, confirmed and binding upon the parties hereto, and this Supplemental Indenture shall be deemed part of the Indenture in the manner and to the extent herein and therein provided; provided, however, that the provisions
of this Supplemental Indenture shall apply solely with respect to the Notes. 
 Section 5.2.    Trustee Not Responsible
for Recitals. The recitals herein contained are made by the Company and not by the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this
Supplemental Indenture. 
 Section 5.3.    Governing Law. This Supplemental Indenture and each Note shall be governed
by, and construed in accordance with, the laws of the State of New York. 
 Section 5.4.    Separability. In case any
one or more of the provisions contained in the Indenture, this Supplemental Indenture or the Notes shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect
any other provisions of the Indenture, this Supplemental Indenture or the Notes, but the Indenture, this Supplemental Indenture and the Notes shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein
or therein. 
 Section 5.5.    Counterparts. This Supplemental Indenture may be executed in any number of
counterparts each of which shall be an original; but such counterparts shall together constitute but one and the same instrument. 

  
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 Section 5.6.    Electronic Means. The Trustee shall have the right to
accept and act upon instructions, including funds transfer instructions (“Instructions”) given pursuant to this Supplemental Indenture and the Notes and delivered using Electronic Means; provided, however, that the Company shall
provide to the Trustee an incumbency certificate listing officers with the authority to provide such Instructions (“Authorized Officers”) and containing specimen signatures of such Authorized Officers, which incumbency certificate
shall be amended by the Company whenever a person is to be added or deleted from the listing. If the Company elects to give the Trustee Instructions using Electronic Means and the Trustee in its discretion elects to act upon such Instructions, the
Trustee’s understanding of such Instructions shall be deemed controlling. The Company understands and agrees that the Trustee cannot determine the identity of the actual sender of such Instructions and that the Trustee shall conclusively
presume that directions that purport to have been sent by an Authorized Officer listed on the incumbency certificate provided to the Trustee have been sent by such Authorized Officer. The Company shall be responsible for ensuring that only
Authorized Officers transmit such Instructions to the Trustee and that the Company and all Authorized Officers are solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and/or
authentication keys upon receipt by the Company. The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such Instructions notwithstanding such
directions conflict or are inconsistent with a subsequent written instruction. The Company agrees: (i) to assume all risks arising out of the use of Electronic Means to submit Instructions to the Trustee, including without limitation the risk
of the Trustee acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting Instructions to the
Trustee and that there may be more secure methods of transmitting Instructions than the method(s) selected by the Company; (iii) that the security procedures (if any) to be followed in connection with its transmission of Instructions provide to
it a commercially reasonable degree of protection in light of its particular needs and circumstances; and (iv) to notify the Trustee immediately upon learning of any compromise or unauthorized use of the security procedures. 

[Signature page follows] 

  
 6 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed,
all as of the day and year first above written. 
  

					
	MICROSOFT CORPORATION
		
	By:	 	 /s/ Tahreem Kampton

		 	 Name:	 	Tahreem Kampton
		 	 Title:	 	Treasurer
	
	 THE BANK OF NEW YORK MELLON
 TRUST COMPANY,
N.A.,

	 as Trustee

		
	By:	 	 /s/ Julie Hoffman-Ramos

		 	 Name:	 	Julie Hoffman-Ramos
		 	 Title:	 	Vice President

  
 [Signature Page to Fourteenth
Supplemental Indenture] 

 EXHIBIT A 

FORM OF 2.921% NOTE DUE 2052 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), NEW YORK, NEW YORK, 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 IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH
THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
 THIS NOTE IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE REFERRED TO HEREIN AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

 MICROSOFT CORPORATION 

2.921% Notes due 2052 
 CUSIP No.: 594918 CE2 

ISIN: US594918CE21 
  

			
	No. A-[●]	  	$[●]

 MICROSOFT CORPORATION, a corporation duly incorporated under the laws of the State of Washington (herein called the
“Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of $[●] ([●] DOLLARS) on March 17, 2052, and to pay interest thereon from March 17, 2021 or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, semi-annually on March 17 and September 17 of each year, commencing on September 17, 2021, at the rate of 2.921% per annum, until the principal hereof is paid or made available for
payment; provided that any principal and premium, and any such installment of interest, which is overdue shall bear interest at the rate of 2.921% per annum (to the extent permitted by applicable law), from the dates such amounts are due
until they are paid or made available for payment, and such interest shall be payable on demand. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the March 2 or the September 2 (whether or not a Business Day), as
the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name
this Note (or one or more Predecessor Securities) is registered at the close of business on a “Special Record Date” for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Notes of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided in the Indenture. 

 Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof by manual or electronic signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

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

Dated: March 17, 2021 
  

					
	MICROSOFT CORPORATION
		
	By:	 	
                      
                   

		 	Name: 
		 	Title: 

  
 A-[●] 

 This Note is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture. 
 Dated: March 17, 2021 
  

			
	THE BANK OF NEW YORK MELLON
	TRUST COMPANY, N.A.,
	 as Trustee

		
	By:	 	
                      
                                   

		 	Authorized Signatory

  
 A-[●] 

 [REVERSE OF NOTE] 

This Note is one of a duly authorized issue of securities of the Company (herein called the “Notes”), issued under an Indenture, dated
as of May 18, 2009, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, and a fourteenth supplemental indenture relating to such series dated as of March 17, 2021 (herein, collectively called the
“Indenture,” which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on the face hereof, such series initially limited in aggregate principal amount to $6,250,000,000;
provided that the Company may at any time and from time to time, without the consent of any Holder, issue additional Notes of this series. 

The Notes of this series are not redeemable at the option of the Holders. 

At any time prior to September 17, 2051, the Notes shall be redeemable in whole or in part, at any time or from time to time, at the Company’s
option, on at least 10 days’ but not more than 60 days’ prior notice mailed to the registered address of each Holder of Notes to be redeemed, at a redemption price (the “Make-Whole Redemption Price”), calculated by the
Company, equal to the greater of (1) 100% of the principal amount of the Notes to be redeemed and (2) the sum of the present values of each remaining scheduled payment of principal and interest on the Notes to be redeemed (assuming for
such purposes that the Notes mature on September 17, 2051) (exclusive of interest accrued to the Redemption Date) discounted to the Redemption Date on a semiannual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate plus 12.5 basis points. 
 At any time on or after
September 17, 2051, the Notes shall be redeemable in whole or in part, at any time, at the Company’s option, on at least 10 days’ but not more than 60 days’ prior notice mailed to the registered address of each Holder of Notes to
be redeemed, at a redemption price (the “Final Redemption Price” and, together with the Make-Whole Redemption Price, the “Redemption Price”) equal to 100% of the principal amount of the Notes to be redeemed. 

The Redemption Price for any Notes redeemed pursuant to the two preceding paragraphs shall include accrued and unpaid interest on the principal amount
of such Notes to the Redemption Date. 
 For purposes of calculating the Make-Whole Redemption Price, the following terms shall have the following
specified meanings: 
 “Comparable Treasury Issue” means the United States Treasury security or securities selected by an Independent
Investment Banker as having an actual or interpolated maturity comparable to the remaining term of the Notes that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate
debt securities of a comparable maturity to the remaining term of the Notes (assuming for such purposes that the Notes mature on September 17, 2051). 

 “Comparable Treasury Price” means, with respect to any Redemption Date (A) the
arithmetic average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations or (B) if the Company obtains fewer than four such Reference Treasury
Dealer Quotations, the arithmetic average of all such quotations for such Redemption Date. 
 “Independent Investment Banker” means
one of the Reference Treasury Dealers appointed by the Company. 
 “Reference Treasury Dealer” means Morgan Stanley & Co.
LLC and Wells Fargo Securities, LLC or their respective affiliates, which are primary U.S. government securities dealers in the United States of America and their respective successors plus two other primary U.S. government securities dealers in the
United States of America designated by the Company; provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in the United States of America (a “Primary Treasury
Dealer”), the Company shall substitute therefor another Primary Treasury Dealer. 
 “Reference Treasury Dealer Quotation”
means, with respect to each Reference Treasury Dealer and any Redemption Date, the arithmetic average, as determined by the Company, of the bid and asked prices for the applicable Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 3:30 p.m. (New York City time) on the third Business Day preceding such Redemption Date. 

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semiannual equivalent yield to maturity or
interpolated maturity (on a day count basis) of the applicable Comparable Treasury Issue, assuming a price for such Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for
such Redemption Date. 
 The provisions of Article XI of the Indenture shall apply to any redemption of the Notes. 

The Notes of this series are not entitled to the benefit of any sinking fund. 

The Indenture contains provisions for defeasance at any time of the entire indebtedness of the Notes of this series or certain restrictive covenants and
Events of Default with respect to such Notes, in each case upon compliance with certain conditions set forth in the Indenture. 
 If an Event of
Default with respect to Notes of this series shall occur and be continuing, the principal of such Notes may be declared, or shall immediately become, due and payable in the manner and with the effect provided in the Indenture. 

 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the Holders of the Notes of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Notes at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Notes of each series at the
time Outstanding, on behalf of the Holders of all Notes of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by
the Holders of Notes of this series shall be conclusive and binding upon such Holders and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Note. 
 As provided in and subject to the provisions of the Indenture, the Holders of the Notes
of this series shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written
notice of a continuing Event of Default with respect to the Notes of this series, the Holders of not less than 25% in aggregate principal amount of the Notes of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in aggregate principal amount of such Notes at the time
Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the
Holder of this Note for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 

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

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Register,
upon surrender of this Note for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Note are payable, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series and of like tenor, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
 The Notes of this series are issuable only
in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Notes of this series are exchangeable for a like
principal amount of Notes of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 

 No service charge shall be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this
Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 This Note is a Global Security and is subject to the
provisions of the Indenture relating to Global Securities, including the limitations in Section 305 thereof on transfers and exchanges of Global Securities. 

This Note and the Indenture shall be governed by, and construed in accordance with, the laws of the State of New York. 

All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

 EXHIBIT B 

FORM OF 3.041% NOTE DUE 2062 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), NEW YORK, NEW YORK, 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 IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH
THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
 THIS NOTE IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE REFERRED TO HEREIN AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

 MICROSOFT CORPORATION 

3.041% Notes due 2062 
 CUSIP No.: 594918 CF9 

ISIN: US594918CF95 
  

			
	No. A-[●]	  	$[●]

 MICROSOFT CORPORATION, a corporation duly incorporated under the laws of the State of Washington (herein called the
“Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of $[●] ([●] DOLLARS) on March 17, 2062, and to pay interest thereon from March 17, 2021 or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, semi-annually on March 17 and September 17 of each year, commencing on September 17, 2021, at the rate of 3.041% per annum, until the principal hereof is paid or made available for
payment; provided that any principal and premium, and any such installment of interest, which is overdue shall bear interest at the rate of 3.041% per annum (to the extent permitted by applicable law), from the dates such amounts are due
until they are paid or made available for payment, and such interest shall be payable on demand. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the March 2 or the September 2 (whether or not a Business Day), as
the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name
this Note (or one or more Predecessor Securities) is registered at the close of business on a “Special Record Date” for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Notes of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided in the Indenture. 

 Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof by manual or electronic signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

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

Dated: March 17, 2021 
  

					
	MICROSOFT CORPORATION
		
	By:	 	
                      
                                         
  

		 	Name: 
		 	Title: 

  
 A-[●] 

 This Note is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture. 
 Dated: March 17, 2021 
  

			
	THE BANK OF NEW YORK MELLON
	TRUST COMPANY, N.A.,
	 as Trustee

		
	By:	 	
                      
                                         
  

		 	Authorized Signatory

  
 A-[●] 

 [REVERSE OF NOTE] 

This Note is one of a duly authorized issue of securities of the Company (herein called the “Notes”), issued under an Indenture, dated
as of May 18, 2009, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, and a fourteenth supplemental indenture relating to such series dated as of March 17, 2021 (herein, collectively called the
“Indenture,” which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the series designated on the face hereof, such series initially limited in aggregate principal amount to $1,934,966,000;
provided that the Company may at any time and from time to time, without the consent of any Holder, issue additional Notes of this series. 

The Notes of this series are not redeemable at the option of the Holders. 

At any time prior to September 17, 2061, the Notes shall be redeemable in whole or in part, at any time or from time to time, at the Company’s
option, on at least 10 days’ but not more than 60 days’ prior notice mailed to the registered address of each Holder of Notes to be redeemed, at a redemption price (the “Make-Whole Redemption Price”), calculated by the
Company, equal to the greater of (1) 100% of the principal amount of the Notes to be redeemed and (2) the sum of the present values of each remaining scheduled payment of principal and interest on the Notes to be redeemed (assuming for
such purposes that the Notes mature on September 17, 2061) (exclusive of interest accrued to the Redemption Date) discounted to the Redemption Date on a semiannual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate plus 12.5 basis points. 
 At any time on or after
September 17, 2061, the Notes shall be redeemable in whole or in part, at any time, at the Company’s option, on at least 10 days’ but not more than 60 days’ prior notice mailed to the registered address of each Holder of Notes to
be redeemed, at a redemption price (the “Final Redemption Price” and, together with the Make-Whole Redemption Price, the “Redemption Price”) equal to 100% of the principal amount of the Notes to be redeemed. 

The Redemption Price for any Notes redeemed pursuant to the two preceding paragraphs shall include accrued and unpaid interest on the principal amount
of such Notes to the Redemption Date. 
 For purposes of calculating the Make-Whole Redemption Price, the following terms shall have the following
specified meanings: 
 “Comparable Treasury Issue” means the United States Treasury security or securities selected by an Independent
Investment Banker as having an actual or interpolated maturity comparable to the remaining term of the Notes that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate
debt securities of a comparable maturity to the remaining term of the Notes (assuming for such purposes that the Notes mature on September 17, 2061). 

 “Comparable Treasury Price” means, with respect to any Redemption Date (A) the
arithmetic average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations or (B) if the Company obtains fewer than four such Reference Treasury
Dealer Quotations, the arithmetic average of all such quotations for such Redemption Date. 
 “Independent Investment Banker” means
one of the Reference Treasury Dealers appointed by the Company. 
 “Reference Treasury Dealer” means Morgan Stanley & Co.
LLC and Wells Fargo Securities, LLC or their respective affiliates, which are primary U.S. government securities dealers in the United States of America and their respective successors plus two other primary U.S. government securities dealers in the
United States of America designated by the Company; provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in the United States of America (a “Primary Treasury
Dealer”), the Company shall substitute therefor another Primary Treasury Dealer. 
 “Reference Treasury Dealer Quotation”
means, with respect to each Reference Treasury Dealer and any Redemption Date, the arithmetic average, as determined by the Company, of the bid and asked prices for the applicable Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 3:30 p.m. (New York City time) on the third Business Day preceding such Redemption Date. 

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semiannual equivalent yield to maturity or
interpolated maturity (on a day count basis) of the applicable Comparable Treasury Issue, assuming a price for such Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for
such Redemption Date. 
 The provisions of Article XI of the Indenture shall apply to any redemption of the Notes. 

The Notes of this series are not entitled to the benefit of any sinking fund. 

The Indenture contains provisions for defeasance at any time of the entire indebtedness of the Notes of this series or certain restrictive covenants and
Events of Default with respect to such Notes, in each case upon compliance with certain conditions set forth in the Indenture. 
 If an Event of
Default with respect to Notes of this series shall occur and be continuing, the principal of such Notes may be declared, or shall immediately become, due and payable in the manner and with the effect provided in the Indenture. 

 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the Holders of the Notes of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in
aggregate principal amount of the Notes at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Notes of each series at the
time Outstanding, on behalf of the Holders of all Notes of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by
the Holders of Notes of this series shall be conclusive and binding upon such Holders and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Note. 
 As provided in and subject to the provisions of the Indenture, the Holders of the Notes
of this series shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written
notice of a continuing Event of Default with respect to the Notes of this series, the Holders of not less than 25% in aggregate principal amount of the Notes of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in aggregate principal amount of such Notes at the time
Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the
Holder of this Note for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 

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

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Register,
upon surrender of this Note for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Note are payable, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series and of like tenor, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
 The Notes of this series are issuable only
in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Notes of this series are exchangeable for a like
principal amount of Notes of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 

 No service charge shall be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this
Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 This Note is a Global Security and is subject to the
provisions of the Indenture relating to Global Securities, including the limitations in Section 305 thereof on transfers and exchanges of Global Securities. 

This Note and the Indenture shall be governed by, and construed in accordance with, the laws of the State of New York. 

All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

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