Document:

Form of Registration Rights Agreement

 Exhibit 10.2 
 EXECUTION COPY 
 REGISTRATION RIGHTS AGREEMENT 
 REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of December 31, 2007, by and among I-many, Inc., a Delaware
Corporation, with headquarters located at 399 Thornall Street, 12th Floor, Edison, New Jersey 08837 (the “Company”), and the undersigned buyers (each, a “Buyer”, and collectively, the
“Buyers”). 
 WHEREAS: 
 A. In connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the “Securities Purchase Agreement”), the Company has agreed, upon the terms and subject
to the conditions set forth in the Securities Purchase Agreement, to issue and sell to each Buyer senior convertible notes (the “Notes”) which will, among other things, be convertible into shares of the Company’s common stock,
par value $0.0001 per share (the “Common Stock,” as converted, collectively, the “Conversion Shares”). 
 B. In accordance with the terms of the Securities Purchase Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar
successor statute (collectively, the “1933 Act”), and applicable state securities laws. 
 NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and each of the Buyers hereby agree as follows: 

1. Definitions. 
 Capitalized terms
used herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings: 
 a. “Business Day” means any day other than Saturday, Sunday or any other day on which commercial banks in the City of New York are
authorized or required by law to remain closed. 
 b. “Closing Date” shall have the meaning set forth in the Securities
Purchase Agreement. 
 c. “Effective Date” means the date the Registration Statement has been declared effective by the SEC.

 d. “Effectiveness Deadline” means the earlier of: (i) the
ninetieth (90th) calendar day following the Closing Date; provided, that, if the SEC reviews and has written comments to the filed Registration
Statement that would require the filing of a pre-effective amendment thereto with the SEC, then the Effectiveness Date under this clause (i) shall be the one-hundred twentieth (120th) calendar day following the Closing Date, and (ii) the fifth (5th)

 
Trading Day following the date on which the Company is notified by the SEC that the Registration Statement will not be reviewed or is no longer subject to
further review and comments. 
 e. “Filing Deadline” means the date which is thirty (30) calendar days after the
Closing Date. 
 f. “Investor” means a Buyer or any transferee or assignee thereof to whom a Buyer assigns its rights under
this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a transferee or assignee assigns its rights under this Agreement and who agrees to
become bound by the provisions of this Agreement in accordance with Section 9. 
 g. “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof. 
 h. “register,” “registered,” and “registration” refer to a registration effected by preparing and filing one or more Registration Statements (as defined below) in
compliance with the 1933 Act and pursuant to Rule 415 and the declaration or ordering of effectiveness of such Registration Statement(s) by the SEC. 
 i. “Registrable Securities” means the Conversion Shares issued or issuable upon conversion of the Notes (including the shares of Common Stock issued and issuable as a Make-Whole Premium (as defined in
the Notes)) and (ii) any capital stock of the Company issued or issuable, with respect to the Notes or the Conversion Shares as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, without
regard to any limitations on conversion and/or redemption of the Notes; provided, however, that shares of Common Stock which are Registrable Shares shall cease to be Registrable Shares upon (i) the date as of which the Investors
may sell all of the Registrable Securities covered by such Registration Statement without the requirement to be in compliance with Rule 144(c)(1) and otherwise without restriction pursuant to Rule 144 (or any successor thereto) promulgated under the
1933 Act or (ii) the date on which the Investors shall have sold all of the Registrable Securities covered by such Registration Statement. 
 j. “Registration Statement” means a registration statement or registration statements of the Company filed under the 1933 Act covering the Registrable Securities. 
 k. “Required Holders” means the holders of at least a majority of the Registrable Securities. 
 l. “Required Registration Amount” means the sum of 100% of (i) the maximum number of Conversion Shares issued and issuable pursuant
to the Notes (including the maximum number of shares of Common Stock issued and issuable upon a Make-Whole Premium) as of the Trading Day (as defined in the Securities Purchase Agreement) immediately preceding the applicable date of determination,
subject to adjustment as provided in Section 2(e), without regard to any limitations on conversions of the Notes. 
  

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 m. “Rule 415” means Rule 415 promulgated under the 1933 Act or any successor rule
providing for offering securities on a continuous or delayed basis. 
 n. “SEC” means the United States Securities and
Exchange Commission. 
 2. Registration. 
 a. Mandatory Registration. The Company shall prepare, and, as soon as practicable, but in no event later than the Filing Deadline, file with the SEC the Registration Statement on Form S-3 covering the resale of
all of the Registrable Securities. In the event that Form S-3 is unavailable for such a registration, the Company shall use such other form as is available for such a registration on another appropriate form reasonably acceptable to the Required
Holders, subject to the provisions of Section 2(d). The Registration Statement prepared pursuant hereto shall register for resale at least the number of shares of Common Stock equal to the Required Registration Amount determined as of the date
the Registration Statement is initially filed with the SEC. The Registration Statement shall contain (except if otherwise directed by the Required Holders) the “Selling Stockholders” and “Plan of Distribution”
sections in substantially the form attached hereto as Exhibit B. The Company shall use its reasonable best efforts to have the Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the
Effectiveness Deadline. By 9:30 a.m. New York time on the Business Day following the Effective Date, the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant
to such Registration Statement. 
 b. Allocation of Registrable Securities. The initial number of Registrable Securities included in
any Registration Statement and any increase in the number of Registrable Securities included therein shall be allocated pro rata among the Investors based on the number of Registrable Securities held by each Investor at the time the Registration
Statement covering such initial number of Registrable Securities or increase thereof is declared effective by the SEC. In the event that an Investor sells or otherwise transfers any of such Investor’s Registrable Securities, each transferee
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 Investors, pro rata based on the number of Registrable Securities then held by such Investors which are covered by
such Registration Statement. In no event shall the Company include any securities other than Registrable Securities on any Registration Statement without the prior written consent of the Required Holders. 
 c. Legal Counsel. Subject to Section 5 hereof, the Required Holders shall have the right to select one legal counsel to review and oversee
any registration pursuant to this Section 2 (“Legal Counsel”), which shall be Schulte Roth & Zabel LLP or such other counsel as thereafter designated by the Required Holders. The Company and Legal Counsel shall
reasonably cooperate with each other in performing the Company’s obligations under this Agreement. 
  

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 d. Ineligibility for Form S-3. 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 the Required Holders 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 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. 
 e. Sufficient Number of Shares Registered. In the event the number
of shares available under a Registration Statement filed pursuant to Section 2(a) is insufficient to cover all of the Registrable Securities required to be covered by such Registration Statement or an Investor’s allocated portion of the
Registrable Securities pursuant to Section 2(b), the Company shall amend the applicable Registration Statement, or file a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover at least the
Required Registration Amount as of the Trading Day immediately preceding the date of the filing of such amendment or new Registration Statement, in each case, as soon as practicable, but in any event not later than fifteen (15) days after the
necessity therefor arises. The Company shall use its reasonable best efforts to cause such amendment and/or new Registration Statement to become effective as soon as practicable following the filing thereof. The calculation set forth in the
foregoing sentence shall be made without regard to any limitations on the conversion and/or redemption of the Notes and such calculation shall assume that the Notes are then convertible into shares of Common Stock at the then prevailing Conversion
Rate (as defined in the Notes). 
 f. Effect of Failure to File and Obtain and Maintain Effectiveness of Registration Statement. If
(i) a Registration Statement covering all of the Registrable Securities required to be covered thereby and required to be filed by the Company pursuant to this Agreement is (A) not filed with the SEC on or before the Filing Deadline (a
“Filing Failure”) or (B) not declared effective by the SEC on or before the Effectiveness Deadline (an “Effectiveness Failure”) or (ii) on any day after the Effective Date sales of all of the Registrable
Securities required to be included on such Registration Statement cannot be made (other than during an Allowable Grace Period (as defined in Section 3(r)) pursuant to such Registration Statement or otherwise (including, without limitation,
because of a failure to keep such Registration Statement effective, or to disclose such information as is necessary for sales to be made pursuant to such Registration Statement) (a “Maintenance Failure”) then, as partial relief for
the damages to any holder by reason of any such delay in or reduction of its ability to sell the underlying shares of Common Stock (which remedy shall not be exclusive of any other remedies available at law or in equity), the Company shall pay to
each holder of Registrable Securities relating to such Registration Statement an amount in cash equal to one percent (1.0%) of the aggregate Purchase Price (as such term is defined in the Securities Purchase Agreement) of such Investor’s
Registrable Securities not included in such Registration Statement, on each of the following dates: (i) the day of a Filing Failure; (ii) the day of an Effectiveness Failure; (iii) the initial day of a Maintenance Failure;
(iv) on every thirtieth day after the day of a Filing Failure and thereafter (pro rated for periods totaling less than thirty days) until such Filing Failure is cured; (v) on every thirtieth day after the day of an Effectiveness Failure
and thereafter (pro rated for periods totaling less than thirty days) until such Effectiveness Failure is cured; and (vi) on every thirtieth day after the initial day of a 

  

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Maintenance Failure and thereafter (pro rated for periods totaling less than thirty days) until such Maintenance Failure is cured. The payments to which a
holder shall be entitled pursuant to this Section 2(f) are referred to herein as “Registration Delay Payments.” Registration Delay Payments shall be paid on the earlier of (I) the dates set forth above and (II) the third
Business Day after the event or failure giving rise to the Registration Delay Payments is cured. In the event the Company fails to make Registration Delay Payments in a timely manner, such Registration Delay Payments shall bear interest at the rate
of one and one half percent (1.5%) per month (prorated for partial months) until paid in full. Notwithstanding the foregoing, the maximum aggregate Registration Delay Payments payable to an Investor under this Agreement shall be six percent
(6%) of the aggregate Purchase Price of such Investor’s Registrable Securities. 
 3. Related Obligations. 
 At such time as the Company is obligated to file a Registration Statement with the SEC pursuant to Section 2(a), 2(d) or 2(e), the Company will use
its reasonable best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations: 
 a. The Company shall promptly prepare and file with the SEC a Registration Statement with respect to the Registrable Securities and use its reasonable
best efforts to cause such Registration Statement relating to the Registrable Securities to become effective as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). The Company shall keep each Registration
Statement effective pursuant to Rule 415 at all times until the earlier of (i) the date as of which the Investors may sell all of the Registrable Securities covered by such Registration Statement without the requirement to be in compliance with
Rule 144(c)(1) and otherwise without restriction pursuant to Rule 144 (or any successor thereto) promulgated under the 1933 Act or (ii) the date on which the Investors shall have sold all of the Registrable Securities covered by such
Registration Statement (the “Registration Period”). The Company shall ensure that each Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any 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 (in the case of prospectuses, in the light of the circumstances in which they were made) not misleading. The
Company shall respond in writing to comments made by the SEC in respect of a Registration Statement as soon as practicable, but in no event later than fifteen (15) days after the receipt of comments by or notice from the SEC that an amendment
is required in order for a Registration Statement to be declared effective. 
 b. The Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to a Registration Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the 1933 Act,
as may be necessary to keep such Registration Statement effective at all times during the Registration Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the
Company covered by such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the 

  

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intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement. In the case of amendments and supplements to a
Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-Q, Form 10-QSB, Form 10-K, Form 10-KSB or any analogous report under
the Securities Exchange Act of 1934, as amended (the “1934 Act”), the Company shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements with the
SEC on the same day on which the 1934 Act report is filed which created the requirement for the Company to amend or supplement such Registration Statement. 
 c. The Company shall (A) permit Legal Counsel to review and comment upon (i) a Registration Statement at least five (5) Business Days prior to its filing with the SEC and (ii) all amendments and
supplements to all Registration Statements (except for Annual Reports on Form 10-K or Form 10-KSB, Quarterly Reports on Form 10-Q or Form 10-QSB, Current Reports on Form 8-K, and any similar or successor reports) within a reasonable number of days
prior to their filing with the SEC, and (B) not file any Registration Statement or amendment or supplement thereto in a form to which Legal Counsel reasonably objects. The Company shall not submit a request for acceleration of the effectiveness
of a Registration Statement or any amendment or supplement thereto without the prior approval of Legal Counsel, which consent shall not be unreasonably withheld. The Company shall furnish to Legal Counsel, without charge, (i) copies of any
correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to any Registration Statement, (ii) promptly after the same is prepared and filed with the SEC, one copy of any Registration Statement and any
amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested by an Investor, and all exhibits to the extent not available on Edgar and (iii) upon the effectiveness of any
Registration Statement, one copy of the prospectus included in such Registration Statement and all amendments and supplements thereto. The Company shall reasonably cooperate with Legal Counsel in performing the Company’s obligations pursuant to
this Section 3. 
 d. The Company shall furnish to each Investor whose Registrable Securities are included in any Registration
Statement, without charge, (i) promptly after the same is prepared and filed with the SEC, at least one copy of such Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated
therein by reference, if requested by an Investor, all exhibits and each preliminary prospectus, to the extent not available on Edgar (ii) upon the effectiveness of any Registration Statement, ten (10) copies of the prospectus included in
such Registration Statement and all amendments and supplements thereto (or such other number of copies as such Investor may reasonably request) to the extent not available on Edgar and (iii) such other documents, including copies of any
preliminary or final prospectus, as such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by such Investor. 
 e. The Company shall use its reasonable best efforts to (i) register and qualify, unless an exemption from registration and qualification applies,
the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities or “blue sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file in those 

  

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jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain
the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other
actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any
such jurisdiction. The Company shall promptly notify Legal Counsel and each Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the
Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose. 
 f. The Company shall notify Legal Counsel and each Investor in writing of the happening of any event, as promptly as practicable after becoming aware of
such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), and, subject to Section 3(r), promptly prepare a
supplement or amendment to such Registration Statement to correct such untrue statement or omission and deliver such number of copies of such supplement or amendment to Legal Counsel and each Investor as Legal Counsel or such Investor may reasonably
request. The Company shall also promptly notify Legal Counsel and each Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective
amendment has become effective (notification of such effectiveness shall be delivered to Legal Counsel and each Investor by facsimile or e-mail on the same day of such effectiveness and by overnight mail), (ii) of any request by the SEC for
amendments or supplements to a Registration Statement or related prospectus or related information, and (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

 g. The Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a
Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest
possible moment and to notify Legal Counsel and each Investor who holds Registrable Securities being sold of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such
purpose. 
 h. If any Investor is required under applicable securities laws to be described in the Registration Statement as an underwriter
or an Investor believes that it could reasonably be deemed to be an underwriter of Registrable Securities, at the reasonable request of such Investor, the Company shall furnish to such Investor, on the date of the effectiveness of the 

  

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Registration Statement and thereafter from time to time on such dates as an Investor may reasonably request (i) a letter, dated such date, from the
Company’s independent certified public accountants in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the Investors, and (ii) an
opinion, dated as of such date, of counsel representing the Company for purposes of such Registration Statement, in form, scope and substance as is customarily given in an underwritten public offering, addressed to the Investors. 
 i. If any Investor is required under applicable securities laws to be described in the Registration Statement as an underwriter or an Investor believes
that it could reasonably be deemed to be an underwriter of Registrable Securities, the Company shall make available for inspection by (i) such Investor, (ii) Legal Counsel and (iii) one firm of accountants or other agents retained by
the Investors (collectively, the “Inspectors”), all pertinent financial and other records, and pertinent corporate documents and properties of the Company (collectively, the “Records”), as shall be reasonably deemed
necessary by each Inspector, and cause the Company’s officers, directors and employees to supply all information which any Inspector may reasonably request; provided, however, that each Inspector shall agree to hold in strict confidence and
shall not make any disclosure (except to an Investor) or use of any Record or other information which the Company determines in good faith to be confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure
of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the 1933 Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or
order from a court or government body of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other than by disclosure in violation of this Agreement. Each Investor agrees that it shall,
upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between the Company and any Investor) shall be deemed to limit the Investors’ ability to
sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations. 
 j. The Company shall hold in
confidence and not make any disclosure of information concerning an Investor provided to the Company unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such
information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental
body of competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any other agreement. The Company agrees that it shall, upon learning that
disclosure of such information concerning an Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to such Investor and allow such Investor, at the Investor’s
expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information. 
  

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 k. The Company shall use its reasonable best efforts either to (i) cause all of the Registrable
Securities covered by a Registration Statement to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange or (ii) secure the inclusion for quotation of all of the Registrable Securities on The NASDAQ Global Market or (iii) if, despite the Company’s reasonable best efforts, the Company is unsuccessful in
satisfying the preceding clauses (i) and (ii), to secure the inclusion for quotation on The New York Stock Exchange, The NASDAQ Global Select Market, The NASDAQ Capital Market or the American Stock Exchange for such Registrable Securities and,
without limiting the generality of the foregoing, to use its reasonable best efforts to arrange for at least two market makers to register with the Financial Industry Regulatory Authority, Inc. (“FINRA”) as such with respect to such
Registrable Securities. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(k). 
 l. The Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing
the Registrable Securities to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the case may be, as the Investors may reasonably request and registered in such names as the
Investors may request. 
 m. If requested by an Investor, the Company shall as soon as practicable (i) incorporate in a prospectus
supplement or post-effective amendment such information as an Investor reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number
of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus supplement
or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement if reasonably requested by an
Investor holding any Registrable Securities. 
 n. The Company shall use its reasonable best efforts to cause the Registrable Securities
covered by a Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable Securities. 
 o. The Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after the close of
the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Company’s
fiscal quarter next following the applicable Effective Date of a Registration Statement. 
 p. The Company shall otherwise use its reasonable
best efforts to comply with all applicable rules and regulations of the SEC in connection with any registration hereunder. 
  

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 q. Within two (2) Business Days after a Registration Statement which covers Registrable Securities
is ordered effective by the SEC, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities (with copies to the Investors whose Registrable Securities are included in
such Registration Statement) confirmation that such Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A. 
 r. Notwithstanding anything to the contrary herein, at any time after the Effective Date, the Company may delay the disclosure of material, non-public information concerning the Company the disclosure of which at the
time is not, in the good faith opinion of the Board of Directors of the Company and its counsel, in the best interest of the Company (a “Grace Period”); provided, that the Company shall promptly (i) notify the Investors in
writing of the existence of material, non-public information giving rise to a Grace Period (provided that in each notice the Company will not disclose the content of such material, non-public information to the Investors) and the date on which the
Grace Period will begin, and (ii) notify the Investors in writing of the date on which the Grace Period ends; and, provided further, that no Grace Period shall exceed fifteen (15) consecutive days and during any three hundred sixty five
(365) day period such Grace Periods shall not exceed an aggregate of twenty (20) days and the first day of any Grace Period must be at least five (5) Trading Days after the last day of any prior Grace Period (each, an
“Allowable Grace Period”). For purposes of determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Investors receive the notice referred to in clause (i) and shall end on and
include the later of the date the Investors receive the notice referred to in clause (ii) and the date referred to in such notice. The provisions of Section 3(g) hereof shall not be applicable during the period of any Allowable Grace
Period. Upon expiration of the Grace Period, the Company shall again be bound by the first sentence of Section 3(f) with respect to the information giving rise thereto unless such material, non-public information is no longer applicable.
Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection with any
sale of Registrable Securities with respect to which an Investor has entered into a contract for sale, prior to the Investor’s receipt of the notice of a Grace Period and for which the Investor has not yet settled, except as otherwise limited
by law. 
 s. Neither the Company nor any Subsidiary or affiliate thereof shall identify any Investor as an underwriter in any public
disclosure or filing with the SEC or any Principal Market (as defined in the Securities Purchase Agreement) or Eligible Market without such Investor’s consent and any Investor being deemed an underwriter by the SEC shall not relieve the Company
of any obligations it has under this Agreement or any other Transaction Document (as defined in the Securities Purchase Agreement); provided, however, that the foregoing shall not prohibit the Company from including the disclosure
found in the “Plan of Distribution” section attached hereto as Exhibit B in the Registration Statement; provided, further, that, in the event the SEC shall not permit a Registration Statement to be declared effective
without any applicable Investor being named as an underwriter, the Company shall be relieved from its obligations to register Registrable Securities hereunder but only to the extent of the inclusion of the applicable Registrable Securities which
requires such Investor to be named as an underwriter. 
  

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 4. Obligations of the Investors. 
 a. At least five (5) Business Days prior to the first anticipated filing date of a Registration Statement, the Company shall notify each Investor in
writing of the information the Company requires from each such Investor if such Investor elects to have any of such Investor’s Registrable Securities included in such Registration Statement. It shall be a condition precedent to the obligations
of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities of a particular Investor that such Investor shall furnish to the Company such information regarding itself, the Registrable Securities
held by it and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably required to effect and maintain the effectiveness of the registration of such Registrable Securities and shall execute such documents
in connection with such registration as the Company may reasonably request. 
 b. Each Investor, by such Investor’s acceptance of the
Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless such Investor has notified the Company in writing of
such Investor’s election to exclude all of such Investor’s Registrable Securities from such Registration Statement. 
 c. Each
Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence of 3(f), such Investor will immediately discontinue disposition of Registrable
Securities pursuant to any Registration Statement(s) covering such Registrable Securities until such Investor’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 3(g) or the first sentence of 3(f) or
receipt of notice that no supplement or amendment is required. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of an Investor in accordance with the
terms of the Securities Purchase Agreement in connection with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale prior to the Investor’s receipt of a notice from the Company of the
happening of any event of the kind described in Section 3(g) or the first sentence of 3(f) and for which the Investor has not yet settled, except as otherwise limited by law. 
 d. Each Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it or an exemption
therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement. 
 5. Expenses of Registration.

 All reasonable expenses, other than underwriting discounts and commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements of counsel for the Company shall be paid by the Company. The
Company shall also reimburse the Investors for the fees and disbursements of Legal Counsel in connection with registration, filing or qualification pursuant to Sections 2 and 3 of this Agreement which amount shall be limited to $10,000 for each such
registration, filing or qualification. 
  

 11 

 6. Indemnification. 
 In the event any Registrable Securities are included in a Registration Statement under this Agreement: 
 a.
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor, the directors, officers, members, partners, employees, agents, representatives of, and each Person, if any, who controls
any Investor within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Person”), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts
paid in settlement or expenses, joint or several, (collectively, “Claims”) incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before
any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”), to which any of them may
become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration
Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered
(“Blue Sky Filing”), or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement
of a material fact contained in any preliminary prospectus if used prior to the effective date of such Registration Statement, or contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement
thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading or (iii) any
violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities
pursuant to a Registration Statement (the matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”). Subject to Section 6(c), the Company shall reimburse the Indemnified Persons, promptly
as such expenses are incurred and are due and payable, for any legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6(a) and Section 7: (i) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information
furnished in writing to the Company by such Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by
the Company pursuant to Section 3(d); and (ii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld or
delayed. Such 

  

 12 

 
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer
of the Registrable Securities by the Investors pursuant to Section 9. 
 b. In connection with any Registration Statement in which an
Investor is participating, each such Investor agrees to severally and not jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its
officers who signs the Registration Statement and each Person, if any, who controls the Company within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Party”), against any Claim or Indemnified Damages to which any
of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in
reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use in connection with such Registration Statement; and, subject to Section 6(c), such Investor shall reimburse the Indemnified
Party, promptly as such expenses are incurred and are due and payable, for any legal or other expenses reasonably incurred by an Indemnified Party in connection with investigating or defending any such Claim; provided, however, that the indemnity
agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of
such Investor, which consent shall not be unreasonably withheld or delayed; provided, further, however, that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net
proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party
and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9. 
 c. Promptly after receipt by an
Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a
Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and,
to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the
Indemnified Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the fees and expenses of not more than one counsel for all such Indemnified Person or
Indemnified Party to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would
be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding. In the case of an Indemnified Person, legal counsel referred to
in the immediately preceding sentence shall be selected by the Investors holding at least a majority in interest of the Registrable Securities included in the Registration Statement to which the Claim relates. The Indemnified 

  

 13 

 
Party or Indemnified Person shall cooperate reasonably with the indemnifying party in connection with any negotiation or defense of any such action or Claim
by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party
or Indemnified Person fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its
prior written consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified Person,
consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all
liability in respect to such Claim or litigation, and such settlement shall not include any admission as to fault on the part of the Indemnified Party. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated
to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is
prejudiced in its ability to defend such action. 
 d. The indemnification required by this Section 6 shall be made by periodic payments
of the amount thereof during the course of the investigation or defense, as and when bills are received or Indemnified Damages are incurred. 
 e. The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the
indemnifying party may be subject to pursuant to the law. 
 7. Contribution. 
 To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the amount of net proceeds received by such seller from the sale of such Registrable Securities pursuant to such Registration
Statement. 
  

 14 

 8. Reports Under the 1934 Act. 
 With a view to making available to the Investors the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the
SEC that may at any time permit the Investors to sell securities of the Company to the public without registration (“Rule 144”), the Company agrees to: 
 a. make and keep public information available, as those terms are understood and defined in and required by Rule 144; 
 b. file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long as the Company remains subject to such requirements and the filing of such
reports and other documents is required for the applicable provisions of Rule 144; and 
 c. furnish to each Investor so long as such
Investor owns Registrable Securities, promptly upon request, such other information as may be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration including, if required (i) a written
statement by the Company, if true, that it has complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act and (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents
so filed by the Company. 
 9. Assignment of Registration Rights. 
 The rights under this Agreement shall be automatically assignable by the Investors to any transferee of all or any portion of such Investor’s
Registrable Securities if: (i) the Investor agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment; (ii) the Company
is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b) the securities with respect to which such registration rights are being
transferred or assigned; (iii) immediately following such transfer or assignment the further disposition of such securities by the transferee or assignee is restricted under the 1933 Act or applicable state securities laws; (iv) at or
before the time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein; and (v) such transfer
shall have been made in accordance with the applicable requirements of the Securities Purchase Agreement. 
 10. Amendment of Registration
Rights. 
 Provisions of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of the Company and the Required Holders. Any amendment or waiver effected in accordance with this Section 10 shall be binding upon each Investor and the Company.
No such amendment shall be effective to the extent that it applies to less than all of the holders of the Registrable Securities. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any
provision of this Agreement unless the same consideration also is offered to all of the parties to this Agreement. 
  

 15 

 11. Miscellaneous. 
 a. A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable Securities. If the Company receives conflicting instructions, notices or
elections from two or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from such record owner of such Registrable Securities. 
 b. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will
be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); or (iii) one Business Day after deposit with a nationally recognized overnight delivery service for next day delivery, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such
communications shall be: 
  

					
	If to the Company:
		
		 	I-many, Inc.
		 	399 Thornall Street, 12th Floor
		 	Edison, New Jersey 08837
		 	Telephone:	 	(800) 832-0228
		 	Facsimile:	 	(207) 828-0492
		 	Attention:	 	Chief Financial Officer

  

 16 

					
	With a copy (for informational purposes only) to:
		
		 	I-many, Inc.
		 	511 Congress Street, 6th Floor
		 	Portland, ME 04101
		 	Telephone:	 	(207) 228-2135
		 	Facsimile:	 	(207) 828-0492
		 	Attention:	 	General Counsel
	
	And a copy (for informational purposes only) to:
		
		 	Wilmer Cutler Pickering Hale and Dorr LLP
		 	60 State Street
		 	Boston, Massachusetts 02109
		 	Telephone:	 	(617) 526-6624
		 	Facsimile:	 	(617) 526-5000
		 	Attention:	 	Jeffrey A. Stein, Esq.
	
	If to the Transfer Agent:
		
		 	American Stock Transfer & Trust Company
		 	59 Maiden Lane
		 	New York, NY 10038
		 	Telephone:	 	(718) 921-8262
		 	Facsimile:	 	(718) 921-8337
		 	Attention:	 	Donna Ansbro
	
	If to Legal Counsel:
		
		 	Schulte Roth & Zabel LLP
		 	919 Third Avenue
		 	New York, New York 10022
		 	Telephone:	 	(212) 756-2000
		 	Facsimile:	 	(212) 593-5955
		 	Attention:	 	Eleazer N. Klein, Esq.

 If to a Buyer, to its address and facsimile number set forth on the Schedule of Buyers attached hereto, with
copies to such Buyer’s representatives as set forth on the Schedule of Buyers, or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each
other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by
the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by a courier or overnight courier service shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively. 
  

 17 

 c. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a
party in exercising such right or remedy, shall not operate as a waiver thereof. 
 d. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other
jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York,
Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 
 e. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction,
the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the
validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature,
invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the
parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or
unenforceable provision(s). 
 f. This Agreement, the other Transaction Documents (as defined in the Securities Purchase Agreement) and the
instruments referenced herein and therein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set 

  

 18 

 
forth or referred to herein and therein. This Agreement, the other Transaction Documents and the instruments referenced herein and therein supersede all
prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof. 
 g. Subject to the
requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto. 
 h. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
 i. This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement. This Agreement, once executed by a party, may be
delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement. 
 j. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents as any other
party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 
 k. All consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise specified in this Agreement, by the Required Holders. 
 l. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict
construction will be applied against any party. 
 m. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 
 n. The
obligations of each Investor hereunder are several and not joint with the obligations of any other Investor, and no provision of this Agreement is intended to confer any obligations on any Investor vis-à-vis any other Investor. Nothing
contained herein, and no action taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any
way acting in concert or as a group with respect to such obligations or the transactions contemplated herein. 
 * * * * * * 
 [Signature Page Follows] 
  

 19 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	COMPANY:
	
	I-MANY, INC.
		
	By:	 	 /s/ John A. Rade 

	Name:	 	John A. Rade
	Title:	 	Chief Executive Officer

  

 20 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page to this
Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	HIGHBRIDGE INTERNATIONAL LLC
	By:	 	Highbridge Capital Management LLC Its Trading Manager
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 21 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	
	BUYERS:
	
	PORTSIDE GROWTH AND OPPORTUNITY FUND
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 22 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	PARCHE, LLC
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 23 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 24 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	TWIN OAKS QP, L.P.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 25 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	TWIN OAKS, L.P.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 26 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	GAGNON INVESTMENT ASSOCIATES LLC
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 27 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	GAGNON INVESTMENT ASSOCIATES OFFSHORE LTD.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 28 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	FALLEN ANGEL PARTNERSHIP
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 29 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	DARWIN PARTNERSHIP
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 30 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	IROQUOIS MASTER FUND LTD.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 31 

 IN WITNESS WHEREOF, each Buyer and the Company have caused their respective signature page
to this Registration Rights Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	CLARION CAPITAL CORPORATION
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 32 

 SCHEDULE OF BUYERS 
  

							
	 Buyer
	  	 Buyer Address
 and Facsimile Number
	  	 Buyer’s Representative’s Address
and Facsimile
Number

	Highbridge International LLC	  	 c/o Highbridge Capital Management, LLC
 9
West 57th Street, 27th Floor
 New York, New York 10019
	  	
		  	 Attention:
  
 Facsimile:
 Telephone:
 Residence:
	  	 Ari J. Storch
 Adam J. Chill
 (212) 751-0755
 (212) 287-4720
 Cayman Islands
	  	 Schulte Roth & Zabel LLP
 919 Third Avenue

 New York, NY 10022
 Attn: Eleazer Klein, Esq.
 Facsimile: (212) 593-5955
 Telephone: (212) 756-2000

	Portside Growth & Opportunity Fund	  	 c/o Ramius Capital Group, L.L.C.
 666 Third
Avenue, 26th Floor
 New York, New York 10017
	  	
				
		  	 Attention:
  
 Facsimile:
  
 Telephone:
  
 Residence:
	  	 Jeffrey Smith
 Owen Littman
 (212) 201-4802
 (212) 845-7995
 (212) 845-7955
 (212) 201-4841
 Cayman Islands
	  	
			
	Parche, LLC	  	 c/o Ramius Capital Group, L.L.C.
 666 Third
Avenue, 26th Floor
 New York, New York 10017
	  	
				
		  	 Attention:
  
 Facsimile:
  
 Telephone:
  
 Residence:
	  	 Jeffrey Smith
 Owen Littman
 (212) 201-4802
 (212) 845-7995
 (212) 845-7955
 (212) 201-4841
 Delaware
	  	
			
	Starboard Value and Opportunity Master Fund Ltd.	  	 c/o Ramius Capital Group, L.L.C.
 666 Third
Avenue, 26th Floor
 New York, New York 10017
	  	
				
		  	 Attention:
  
 Facsimile:
  
 Telephone:
  
 Residence:
	  	 Jeffrey Smith
 Owen Littman
 (212) 201-4802
 (212) 845-7995
 (212) 845-7955
 (212) 201-4841
 Cayman Islands
	  	
			
	Twin Oaks QP, LP	  	 Twin Oaks Partners
 One Main Street, Suite
101
 Chatham, NJ 07928
	  	
		  	 Attention:
 Telephone:
 Facsimile:
 E-mail:
 Residence:
	  	 Robert F. Moriarty
 973-701-2170
 973-635-3440
 rfm@twinoakslp.com
 Delaware
	  	

  

 33 

					
	Twin Oaks, L.P.	  	 Twin Oaks Partners
 One Main Street, Suite
101
 Chatham, NJ 07928
 Attention: Robert F. Moriarty

Telephone: 973-701-2170
 Facsimile: 973-635-3440
 E-mail: rfm@twinoakslp.com
 Residence: Delaware
	  	
			
	Gagnon Investment Associates LLC	  	 Gagnon Securities
 1370 6th Avenue, 24th
Floor
 New York, NY 10019
 Attention: Susan Grant
 Telephone: 212-554-5000
 Facsimile 212-265-6417
 E-mail: susan@gagnonsec.com
 Residence: Delaware
	  	
			
	Gagnon Investment Associates Offshore Ltd.	  	 Gagnon Securities
 1370 6th Avenue, 24th
Floor
 New York, NY 10019
 Attention: Susan Grant
 Telephone: 212-554-5000
 Facsimile: 212-265-6417
 E-mailsusan@gagnonsec.com
 Residence: Cayman Islands
	  	
			
	Fallen Angel Partnership	  	 Gagnon Securities
 1370 6th Avenue, 24th
Floor
 New York, NY 10019
 Attention: Susan Grant
 Telephone: 212-554-5000
 Facsimile: 212-265-6417
 E-mailsusan@gagnonsec.com
 Residence: Delaware
	  	
			
	Darwin Partnership	  	 Gagnon Securities
 1370 6th Avenue, 24th
Floor
 New York, NY 10019
 Attention: Susan Grant
 Telephone: 212-554-5000
 Facsimile: 212-265-6417
 E-mailsusan@gagnonsec.com
 Residence: Delaware
	  	
			
	Iroquois Master Fund Ltd.	  	 c/o Iroquois Capital
 641 Lexington Avenue, 26th Floor

 New York, NY 10022
 Attention: Joshua Silverman
 Telephone: 212-974-3070
 Facsimile: 212-207-3452
 Email: jsilverman@icfund.com
 Residence: Cayman Islands
	  	
			
	Clarion Capital Corporation	  	 c/o Clarion Capital Corporation
 3690 Orange Place,
Suite 400
 Beachwood, OH 44122
 Attention: Morton A.
Cohen
 Telephone: 216-896-1260
 Facsimile:
216-896-1261
 Email: mort@clariongrp.com
 Residence: Delaware

	  	

  

 34Form of Notes to be issued to the Buyers at the Closing

 Exhibit 10.3 
 [FORM OF SENIOR CONVERTIBLE NOTE] 
 NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), 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 1933 ACT, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT (II) UNLESS SOLD OR TRANSFERRED TO A “QUALIFIED INSTITUTIONAL BUYER” WITHIN THE MEANING OF RULE 144A UNDER THE 1933 ACT OR TO AN “ACCREDITED INVESTOR” AS THAT TERM IS DEFINED IN RULE 501(A) OF REGULATION D OR (III)
UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. ANY TRANSFEREE
OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE, INCLUDING SECTIONS 3(c)(iii) AND 17(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS
SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(iii) OF THIS NOTE. 
 I-MANY, INC. 

SENIOR CONVERTIBLE NOTE 
  

			
	Issuance Date: December 31, 2007	 	Original Principal Amount: U.S. $[•]

 FOR VALUE RECEIVED, I-MANY, INC., a Delaware corporation (the “Company”),
hereby promises to pay to [HIGHBRIDGE INTERNATIONAL LLC] [PORTSIDE GROWTH AND OPPORTUNITY FUND] [STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD.] [PARCHE, LLC] [OTHER BUYERS] or registered assigns (the “Holder”) the amount
set out above as the Original Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise, the “Principal”) upon the Maturity Date (as defined below), and to pay interest
(“Interest”) on any outstanding Principal at a rate per annum equal to the Interest Rate (as defined below) from the date set out above as the Issuance Date (the “Issuance Date”) until the same becomes due and
payable, whether upon an Interest Date (as defined below), the Maturity Date, acceleration, conversion, redemption or otherwise (in each case in accordance with the terms hereof). This Senior Convertible Note (including all Senior Convertible Notes
issued in exchange, transfer or replacement hereof, this “Note”) is one of an issue of Senior Convertible Notes issued pursuant to the Securities Purchase Agreement on the Closing Date (collectively, the “Notes” and
such other Senior Convertible Notes, the “Other Notes”). Certain capitalized terms used herein are defined in Section 28. 

 (1) MATURITY. On the Maturity Date, the Company shall pay to the Holder an amount in cash
representing all outstanding Principal and accrued and unpaid Interest, if any. The “Maturity Date” is December 31, 2012. 
 (2) INTEREST; INTEREST RATE. (a) Interest on this Note shall commence accruing on the outstanding Principal on the Issuance Date and shall be computed on the basis of a 360-day year and twelve 30-day months and shall be payable
in arrears on March 31, June 30, September 30 and December 31 of each year (each, an “Interest Date”) with the first Interest Date being March 31, 2008. Interest shall be payable on each Interest
Date, to the record holder of this Note on the applicable Interest Date in cash. 
 (b) Prior to the payment of Interest on an Interest Date,
Interest on this Note shall accrue at the Interest Rate and be payable in cash. From and after the occurrence and during the continuance of an Event of Default, the Interest Rate shall be increased to ten percent (10.0%). In the event that such
Event of Default is subsequently cured, the adjustment referred to in the preceding sentence shall cease to be effective as of the date of such cure; provided that the Interest as calculated and unpaid at such increased rate during the continuance
of such Event of Default shall continue to apply to the extent relating to the days after the occurrence of such Event of Default through and including the date of cure of such Event of Default. 
 (3) CONVERSION OF NOTES. This Note shall be convertible into shares of Common Stock, on the terms and conditions set forth in this Section 3.

 (a) Conversion Right. Subject to the provisions of Section 3(e), at any time or times on or after the Issuance Date, the
Holder shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and nonassessable shares of Common Stock in accordance with Section 3(c), at the Conversion Rate (as defined
below). The Company shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock
up to the nearest whole share. The Company shall pay any and all transfer, stamp and similar taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount; provided that the
Company shall not be required to pay any tax that may be payable in respect of any issuance of shares of Common Stock to any Person other than the Holder. 
 (b) Conversion Rate. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to Section 3(a) shall be determined by dividing (x) such Conversion Amount by
(y) the Conversion Price (the “Conversion Rate”). 
 (i) “Conversion Amount” means the
portion of the Principal to be converted, redeemed or otherwise with respect to which this determination is being made. 
 (ii) “Conversion Price” means, as of any Conversion Date (as defined below) or other date of determination, $3.8192, subject to adjustment as provided herein. 
  

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 (c) Mechanics of Conversion. 
 (i) Optional Conversion. To convert any Conversion Amount into shares of
Common Stock on any date (a “Conversion Date”), the Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York Time, on such date, a copy of an executed notice of conversion
in the form attached hereto as Exhibit I (the “Conversion Notice”) to the Company and (B) if required by Section 3(c)(iii), surrender this Note to a common carrier for delivery to the Company as soon as practicable
on or following such date (or an indemnification undertaking and appropriate bond with respect to this Note in the case of its loss, theft or destruction). On or before the first (1st) Trading Day following the date of receipt of a Conversion Notice, the Company shall transmit by facsimile a confirmation of receipt of such Conversion Notice to the Holder and the Company’s transfer agent
(the “Transfer Agent”). On or before the second (2nd) Trading Day following the date of receipt of a Conversion Notice (the
“Share Delivery Date”), the Company shall (1) (x) provided that the Transfer Agent is participating in the Depository Trust Company’s (“DTC”) Fast Automated Securities Transfer Program, credit such
aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system or (y) if the Transfer Agent is not
participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common
Stock to which the Holder shall be entitled and (2) pay to the Holder in cash, by wire transfer of immediately available funds, an amount equal to the Additional Interest Amount, if any on the Conversion Amount subject to such conversion. If
this Note is physically surrendered for conversion as required by Section 3(c)(iii) and the outstanding Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as
practicable and in no event later than three (3) Trading Days after receipt of this Note and at its own expense, issue and deliver to the holder a new Note (in accordance with Section 17(d)) representing the outstanding Principal not
converted. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date. 

 (ii) Company’s Failure to Timely Convert. If the Company is required to effect a conversion pursuant to
a Conversion Notice and the Company shall fail to issue a certificate to the Holder or credit the Holder’s balance account with DTC, as applicable, for the number of shares of Common Stock to which the Holder is entitled upon conversion of any
Conversion Amount on or prior to the date which is three (3) Trading Days after the Conversion Date (a “Conversion Failure”), then the Holder, upon written notice to the Company, may void its Conversion Notice with respect to,
and retain or have returned, as the case may be, any portion of this Note that has not been converted pursuant to such Conversion Notice; provided that the voiding of a Conversion Notice shall not affect the Company’s obligations to make
any payments which have accrued prior to the date of such notice pursuant to this Section 3(c)(ii) or otherwise. In the alternative to the voiding of the Conversion Notice, if within three (3) Trading Days after the Company’s receipt
of the facsimile copy of a Conversion Notice the Company shall fail to issue and deliver a certificate to the Holder or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon
the Holder’s conversion of any Conversion Amount and if on 

  

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or after such Trading Day the Holder purchases (in an open market transaction or otherwise) Common Stock to deliver in satisfaction of a sale to a third
party by the Holder of Common Stock issuable upon such conversion that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall, within three (3) Trading Days after the Holder’s request and in
the Holder’s discretion, either (x) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions and other out of pocket expenses, if any) for the shares of Common Stock so purchased
(the “Buy-In Price”), at which point the Company’s obligation to deliver shares of Common Stock with respect to the applicable Conversion Amount shall terminate, or (y) promptly honor its obligation to deliver to the
Holder the shares of Common Stock to which the Holder is entitled to have received upon the conversion of the applicable Conversion Amount and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of
(I) such number of shares of Common Stock, times (II) the Closing Bid Price on the Conversion Date. 
 (iii)
Registration; Book-Entry. The Company shall maintain a register (the “Register”) for the recordation of the names and addresses of the holders of each Note and the principal amount of the Notes held by such holders (the
“Registered Notes”). The entries in the Register shall be conclusive and binding for all purposes absent manifest error. The Company and the holders of the Notes shall treat each Person whose name is recorded in the Register as the
owner of a Note for all purposes, including, without limitation, the right to receive payments of Principal and Interest hereunder, notwithstanding notice to the contrary. A Registered Note may be assigned or sold in whole or in part only by
registration of such assignment or sale on the Register. Upon its receipt of a request to assign or sell all or part of any Registered Note by a Holder, the Company shall record the information contained therein in the Register and issue one or more
new Registered Notes in the same aggregate principal amount as the principal amount of the surrendered Registered Note to the designated assignee or transferee pursuant to Section 17. Notwithstanding anything to the contrary set forth herein,
upon conversion of any portion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless (A) the full Principal amount represented by this Note is being converted
or (B) the Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Note upon physical surrender of this Note. The Holder and the Company shall maintain
records showing the Principal converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon conversion. 
 (iv) Pro Rata Conversion; Disputes. In the event that the Company receives a Conversion Notice from more than one holder of Notes,
and the Company is required to effect conversions pursuant to such Conversion Notices, for the same Conversion Date and the Company can convert some, but not all, of such portions of the Notes submitted for conversion, the Company, subject to
Section 3(e), shall convert from each holder of Notes electing to have Notes converted on such date a pro rata amount of such holder’s portion of its Notes submitted for conversion based on the principal amount of Notes submitted for
conversion on such date by such holder relative to the aggregate principal amount of all Notes submitted for conversion on such date. In the event of a dispute as to the number of shares of Common Stock issuable to the Holder in connection with a
conversion of this Note, the Company shall issue to the Holder the number of shares of Common Stock not in dispute and resolve such dispute in accordance with Section 22. 
  

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 (d) Mandatory Conversion. 
 (i) General. If at any time from and after December 31, 2009 (the “Mandatory Conversion Eligibility Date”),
(1) the Closing Sale Price of the Common Stock exceeds 200% of the Conversion Price on the Issuance Date (subject to appropriate adjustments for any stock dividend, stock split, stock combination, reclassification or similar transaction after
the Subscription Date) for each of any twenty (20) Trading Days occurring following the Mandatory Conversion Eligibility Date in any thirty (30) consecutive Trading Day period (such period, the “Mandatory Conversion Measuring
Period”) and (2) there is not then an Equity Conditions Failure, the Company shall have the right to require the Holder to convert all or any portion of the Conversion Amount then remaining under this Note, in each case as designated
in the Mandatory Conversion Notice (as defined below) into fully paid, validly issued and nonassessable shares of Common Stock in accordance with Section 3(c) hereof at the Conversion Rate as of the Mandatory Conversion Date (as defined below)
(a “Mandatory Conversion”). The Company may exercise its right to require conversion under this Section 3(d) by delivering a written notice thereof by facsimile and overnight courier to all, but not less than all, of the
holders of Notes and the Transfer Agent (the “Mandatory Conversion Notice” and the date all of the holders received such notice by facsimile is referred to as the “Mandatory Conversion Notice Date”) within two
(2) Business Days following the end of the applicable Mandatory Conversion Measuring Period. The Mandatory Conversion Notice shall be irrevocable. The Mandatory Conversion Notice shall (y) state (I) the Trading Day selected for the
Mandatory Conversion, which Trading Day shall be no sooner than twenty (20) Trading Days nor later than sixty (60) Trading Days following the Mandatory Conversion Notice Date (the “Mandatory Conversion Date”), (II) the
aggregate Conversion Amount of the Notes subject to Mandatory Conversion from the Holder and all of the holders of the Notes pursuant to this Section 3(d) (and analogous provisions under the Other Notes), (III) the number of shares of Common
Stock to be issued to the Holder on the Mandatory Conversion Date and (IV) the amount of accrued and unpaid Interest to be paid to the Holder in cash on the Mandatory Conversion Date and (z) certify that there has been no Equity Conditions
Failure. 
 (ii) Pro Rata Conversion Requirement. If the Company elects to cause a conversion of any Conversion Amount
of this Note pursuant to Section 3(d)(i), then it must simultaneously take the same action in the same proportion with respect to the Other Notes. If the Company elects a Mandatory Conversion of this Note pursuant to Section 3(d)(i) (or
similar provisions under the Other Notes) with respect to less than all of the Conversion Amounts of the Notes then outstanding, then the Company shall require conversion of a Conversion Amount from each of the holders of the Notes equal to the
product of (1) the aggregate Conversion Amount of Notes which the Company has elected to cause to be converted pursuant to Section 3(d)(i), multiplied by (2) the fraction, the numerator of which is the sum of the aggregate Original
Principal Amount of the Notes purchased by such holder (or the ultimate holder of a Note transferred as set forth below with an allocation among such Notes as set forth below) of outstanding Notes and the denominator of which is the sum of the
aggregate Original Principal Amount of the Notes purchased by all (or the ultimate holder of a Note transferred as set forth below with an allocation among such Notes as set forth below) 

  

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holders holding outstanding Notes (such fraction with respect to each holder is referred to as its “Conversion Allocation Percentage,” and
such amount with respect to each holder is referred to as its “Pro Rata Conversion Amount”); provided, however, that in the event that any holder’s Pro Rata Conversion Amount exceeds the outstanding Principal amount of such
holder’s Note, then such excess Pro Rata Conversion Amount shall be allocated amongst the remaining holders of Notes in accordance with the foregoing formula. In the event that the initial holder or any subsequent holder of any Notes shall sell
or otherwise transfer any of such holder’s Notes, the transferee shall be allocated a pro rata portion of such transferring holder’s Conversion Allocation Percentage and the Pro Rata Conversion Amount. For purposes of illustration of the
foregoing, the Conversion Allocation Percentage and Pro Rata Conversion Amount of any Note shall be calculated by reference to its Original Principal Amount and, in transferring any portion of the Note, or any subsequent Note evidencing some or all
of the Principal payable on this Note, the allocated Original Principal Amount shall be indicated thereon, and shall not be reduced by any payment or conversion thereof. 
 (e) Limitations on Conversions. 
 (i) Beneficial Ownership. Other than in connection with a Mandatory Conversion, [INSERT ONLY IN RAMIUS NOTES: at such time as the Holder (including any of the Holder’s affiliates) does not have a representative on the
Company’s board of directors and the beneficial ownership of the Holder (together with its affiliates), without giving effect to Conversion Shares issuable hereunder, is not in excess of 9.99%,]1 the Company shall not effect any conversion of this Note, and the Holder of this Note shall not have the right to convert any portion
of this Note pursuant to Section 3(a), to the extent that after giving effect to such conversion, the Holder (together with the Holder’s affiliates) would beneficially own in excess of [4.99%]2 [9.99%]3 (the “Maximum Percentage”) of the number of shares of Common Stock outstanding immediately after giving effect to such conversion. For purposes of the foregoing sentence, the number of shares of
Common Stock beneficially owned by the Holder and its affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which the determination of such sentence is being made, but shall exclude the
number of shares of Common Stock which would be issuable upon (A) conversion of the remaining, nonconverted portion of this Note beneficially owned by the Holder or any of its affiliates and (B) exercise or conversion of the unexercised or
nonconverted portion of any other securities of the Company (including, without limitation, any Other Notes) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of
its affiliates. Except as set forth in the preceding sentence, for purposes of this Section 3(d)(i), beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). For purposes of this Section 3(d)(i), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (1) the
Company’s most recent Form 10-K, Form 10-Q, Form 8-K or other public filing with the SEC, as the case may be, (2) a more recent 
  

	 1
	 Insert additional language only into Ramius Notes.

	 2
	 Insert 4.99% blocker for Notes issued to holders other than Ramius.

	 3
	 Insert 9.99% blocker for Notes issued to Ramius.

  

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public announcement by the Company or (3) any other notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock
outstanding. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any
case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its affiliates since the date as of which such number of
outstanding shares of Common Stock was reported. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 3(e)(i) to correct this paragraph (or any
portion hereof) which may be defective or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. By written notice to the
Company, the Holder may increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99% specified in such notice; provided that (x) any such increase or decrease will not be effective until the sixty-first (61st) day after such notice is delivered to the Company, and (y) any such increase or decrease will apply only to the Holder and not to any other holder
of Notes. 
 (ii) Market Regulation. The Company shall not be obligated to issue any shares of Common Stock upon
conversion of this Note if the issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock which the Company may issue upon conversion of the Notes without breaching the Company’s obligations under the
rules or regulations of the Principal Market whether or not the Common Stock is listed on the Principal Market (the “Exchange Cap”), except that such limitation shall not apply in the event that the Company (A) obtains the
approval of its stockholders as required by the applicable rules of such Principal Market for issuances of Common Stock in excess of such amount or (B) obtains a written opinion from outside counsel to the Company that such approval is not
required, which opinion shall be satisfactory to the Majority Holders. Until such approval or written opinion is obtained, no purchaser of the Notes pursuant to the Securities Purchase Agreement (the “Purchasers”) shall be issued in
the aggregate, upon conversion of Notes, shares of Common Stock in an amount greater than the product of the Exchange Cap multiplied by a fraction, the numerator of which is the principal amount of Notes issued to a Purchaser pursuant to the
Securities Purchase Agreement on the Closing Date and the denominator of which is the aggregate principal amount of all Notes issued to the Purchasers pursuant to the Securities Purchase Agreement on the Closing Date (with respect to each Purchaser,
the “Exchange Cap Allocation”). In the event that any Purchaser shall sell or otherwise transfer any of such Purchaser’s Notes, the transferee shall be allocated a pro rata portion of such Purchaser’s Exchange Cap
Allocation, and the restrictions of the prior sentence shall apply to such transferee with respect to the portion of the Exchange Cap Allocation allocated to such transferee and such allocation and restriction shall apply to all successive
transferees, ratably in accordance with their respective interest in the Original Principal Amount evidenced by their Notes. In the event that any holder of Notes shall convert all of such holder’s Notes into a number of shares of Common Stock
which, in the aggregate, is less than such holder’s Exchange Cap Allocation, then the difference between such holder’s Exchange Cap Allocation and the number of shares of Common Stock actually issued to such holder shall be allocated to
the respective Exchange Cap Allocations of the remaining holders of Notes on a pro rata basis in proportion to the aggregate principal amount of the Notes then held by each such holder. 
  

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 (f) Conversion Upon Fundamental Change. The conversion by the Holder following its receipt of a
Change of Control Notice during the Change of Control Conversion/Redemption Period shall be a “Change of Control Conversion”. In connection with a Change of Control Conversion, the Holder shall be entitled to receive the Make-Whole
Premium with respect to any Conversion Amount converted in accordance with Section 3(c). 
 (4) RIGHTS UPON EVENT OF DEFAULT.

 (a) Event of Default. Each of the following events shall constitute an “Event of Default”: 
 (i) the suspension from trading or failure of the Common Stock to be listed on an Eligible Market for a period of five
(5) consecutive Trading Days or for more than an aggregate of ten (10) Trading Days in any 365-day period; 
 (ii)
the Company’s (A) failure to cure a Conversion Failure by delivery of the required number of shares of Common Stock or Make-Whole Premium within ten (10) Business Days after the applicable Conversion Date or Change of Control
Settlement Date (as defined in Section 9(a)), as the case may be, or (B) notice, written or oral, to any holder of the Notes, including by way of public announcement or through any of its agents, at any time, of its intention not to comply
with a request for conversion of any Notes into shares of Common Stock that is tendered in accordance with the provisions of the Notes, other than pursuant to Section 3(e); 
 (iii) at any time following an Authorized Share Failure Deadline if there has been an Authorized Share Failure; 
 (iv) the Company’s failure to pay to the Holder any amount of Principal, Interest or other amounts when and as due under this Note
(including, without limitation, the Company’s failure to pay any redemption amounts hereunder) or any other Transaction Document (as defined in the Securities Purchase Agreement) or any other agreement, document, certificate or other instrument
delivered in connection with the transactions contemplated hereby and thereby to which the Holder is a party, except, in the case of a failure to pay Interest when and as due, in which case only if such failure continues for a period of at least
seven (7) Business Days; 
 (v) any redemption of or acceleration prior to maturity of any Indebtedness exceeding
$1,000,000 individually or in the aggregate of the Company or any of its Subsidiaries other than with respect to any Other Notes; 
 (vi) the Company or any of its Significant Subsidiaries, pursuant to or within the meaning of Title 11, U.S. Code, or any similar Federal, foreign or state law for the relief of debtors (collectively, “Bankruptcy Law”),
(A) commences a voluntary case, (B) consents to the entry of an order for relief against it in an involuntary case, (C) consents to the appointment of a receiver, trustee, assignee, liquidator or similar official (a
“Custodian”), (D) makes a general assignment for the benefit of its creditors or (E) admits in writing that it is generally unable to pay its debts as they become due; 
  

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 (vii) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that (A) is for relief against the Company or any of its Significant Subsidiaries as debtor in an involuntary case, (B) appoints a Custodian of the Company or any of its Significant Subsidiaries or (C) orders the liquidation of
the Company or any of its Significant Subsidiaries; 
 (viii) a final judgment or judgments for the payment of money
aggregating in excess of $2,000,000 are rendered against the Company or any of its Subsidiaries and which judgments are not, within sixty (60) days after the entry thereof, bonded, discharged or stayed pending appeal, or are not discharged
within sixty (60) days after the expiration of such stay; provided, however, that any judgment which is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating the $2,000,000 amount set forth above
so long as the Company provides the Holder a written statement from such insurer or indemnity provider (which written statement shall be reasonably satisfactory to the Holder) to the effect that such judgment is covered by insurance or an indemnity
and the Company will receive the proceeds of such insurance or indemnity within thirty (30) days of the issuance of such judgment; 
 (ix) other than as specifically set forth in another clause of this Section 4(a), the Company breaches, in any material respect, any material representation, warranty, covenant or agreement in any Transaction
Document, except, in the case of a breach of a covenant or agreement in any Transaction Document which is curable, only if such breach continues for a period of at least thirty (30) consecutive days; 
 (x) any breach or failure in any respect to comply with either of Sections 8 or 13 of this Note; or 
 (xi) any Event of Default (as defined in the Other Notes) occurs with respect to any Other Notes, unless such Event of Default is waived
or cured. 
 (b) Acceleration and Redemption. Upon the occurrence of an Event of Default with respect to this Note or any Other Note,
the Company shall within one (1) Business Day deliver written notice thereof via facsimile and overnight courier (an “Event of Default Notice”) to the Holder and the Other Holders. If an Event of Default other than an Event of
Default specified in Section 4(a)(vi) or (vii) occurs, the Required Holders, at any time after the earlier of the Holder’s or any Other Holder’s receipt of an Event of Default Notice and the Holder or any Other Holder’s
becoming aware of an Event of Default, by one or more written notices to the Company, may declare the entire Conversion Amount of all of the Notes plus accrued and unpaid Interest thereon due and payable immediately and upon any such declaration
such Conversion Amount of all the Notes plus accrued and unpaid Interest thereon shall become immediately due and payable. Notwithstanding the foregoing, in the case of an Event of Default specified in Section 4(a)(vi) or (vii), the Conversion
Amount of all of the Notes plus accrued and unpaid Interest thereon will ipso facto become due and payable without any declaration or other act on the part of the Holder or any of the Other Holders. Upon an acceleration in accordance with the
preceding sentence or upon an Event of Default specified 

  

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in Section 4(a)(vi) or (vii) occurs, the Holder may require the Company to redeem all or any portion of this Note by delivering written notice
thereof (the “Event of Default Redemption Notice”) to the Company, which Event of Default Redemption Notice shall indicate the Conversion Amount of this Note the Holder is electing to require the Company to redeem. Each portion of
this Note subject to redemption by the Company pursuant to this Section 4(b) shall be redeemed by the Company at a price (the “Event of Default Redemption Price”) equal to the sum of (i) the Conversion Amount to be
redeemed and (ii) any accrued and unpaid Interest thereon. Redemptions required by this Section 4(b) shall be made in accordance with the provisions of Section 9. To the extent redemptions required by this Section 4(b) are deemed
or determined by a court of competent jurisdiction to be prepayments of the Note by the Company, such redemptions shall be deemed to be voluntary prepayments. 
 (c) Waiver of Past Defaults. The Majority Holders may on behalf of the Holders of all the Notes waive any past Event of Default hereunder and its consequences, except an Event of Default (i) specified in
Section 4(a)(vi) or (vii); or (ii) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of the Holder of each Note affected. Upon any such waiver, such Event of Default shall cease to exist,
and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of the Notes; but no such waiver shall extend to any subsequent or other Event of Default or impair any right consequent thereon. 
 (d) Recission and Annulment. At any time after such a declaration of acceleration has been made and before a judgment or decree for payment of the
money due has been obtained by the Holder or any of the Other Holders, the Majority Holders, by written notice to the Company, may rescind and annul such declaration and its consequences if such rescission and annulment will not conflict with any
judgment or decree of a court of competent jurisdiction and (i) the Company has paid to the Holder and each Other Holder a sum sufficient to pay (A) all overdue Interest on the Notes, and (B) the Principal Amount plus accrued and
unpaid Interest, if any, any Redemption Price on any Notes which have become due otherwise than by such declaration of acceleration; and (ii) all Events of Default, other than the non-payment of Principal plus accrued and unpaid interest on
Securities which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 4(c) above . No such rescission shall affect any subsequent default or impair any right consequent thereon.

 (5) RIGHTS UPON FUNDAMENTAL TRANSACTION AND CHANGE OF CONTROL. 
 (a) Assumption. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity expressly assumes in writing,
executed and delivered to the Holder concurrently with the consummation of the Fundamental Transaction, all of the obligations of the Company under this Note and the other Transaction Documents in accordance with the provisions of this
Section 5(a) prior to such Fundamental Transaction, including agreements to deliver to each holder of Notes in exchange for such Notes a security of the Successor Entity evidenced by a written instrument substantially similar in form and
substance to the Notes, including, without limitation, having a principal amount and interest rate equal to the principal amounts and the interest rates of the Notes then outstanding held by such holder, having similar conversion rights, with the
Conversion Rate adjusted to reflect the consideration received by the Company’s stockholders in such Fundamental Transaction, and having similar ranking to the Notes. In furtherance of and not in limitation of the foregoing, prior to the
consummation of any Fundamental Transaction pursuant to 

  

 - 10 - 

 
which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a
“Corporate Event”), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon a conversion of this Note, the shares of Common Stock receivable upon such conversion or such
securities or other assets to which the Holder would have been entitled with respect to such shares of Common Stock had such shares of Common Stock been held by the Holder upon the consummation of such Corporate Event (without taking into account
any limitations or restrictions on the convertibility of this Note). Upon the occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction,
the provisions of this Note referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Note with the same
effect as if such Successor Entity had been named as the Company herein. If the Successor Entity (including its Parent Entity) is a publicly traded corporation whose common stock is quoted on or listed for trading on an Eligible Market (a
“Public Successor Entity”) and the consideration paid to holders of Common Stock in such Fundamental Transaction consists of stock in such Public Successor Entity (a “Public Fundamental Transaction”), then upon
consummation of the Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon conversion or redemption of this Note at any time after the consummation of the Fundamental Transaction, in
lieu of the shares of the Company’s Common Stock issuable upon the conversion or redemption of the Notes prior to such Fundamental Transaction, such shares of the publicly traded common stock (or their equivalent) of the Successor Entity
(including its Parent Entity), as adjusted in accordance with the provisions of this Note. The provisions of this Section shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations
on the conversion or redemption of this Note. 
 (b) Redemption Right. No sooner than fifteen (15) days nor later than ten
(10) days prior to the consummation of a Change of Control, but not prior to the public announcement of such Change of Control, the Company shall deliver written notice thereof via facsimile and overnight courier to the Holder (a
“Change of Control Notice”) which shall state: 
 (i) the events causing a Change of Control and the
anticipated Effective Date; 
 (ii) the last date of the Change of Control Conversion/Redemption Period (as defined below) by
which the Holder must deliver a Change of Control Redemption Notice to elect the redemption option pursuant to this Section 5(b) or deliver a Conversion Notice requesting conversion upon a Change of Control in accordance with Section 3(c);

 (iii) the Change of Control Settlement Date; 
 (iv) the Change of Control Redemption Price; 
 (v) the Conversion Price applicable on the date of the Change of Control Notice; 
 (vi) that
Notes may be converted in connection with the Change of Control; 
  

 - 11 - 

 (vii) that the Change of Control Redemption Price for any Convertible Note as to which a
Change of Control Redemption Notice has been duly given will be paid promptly on the Change of Control Settlement Date; and 
 (viii) if the Holder is entitled to receive a Make-Whole Premium upon any conversion occurring within the Change of Control Conversion/Redemption Period. 
 At any time during the period beginning after the Holder’s receipt of a Change of Control Notice and ending twenty (20) Business Days after the Effective Date (such period, the “Change of Control Conversion/Redemption
Period”), the Holder may require the Company to redeem all or any portion of this Note by delivering written notice thereof (“Change of Control Redemption Notice”) to the Company, which Change of Control Redemption Notice
shall indicate the Conversion Amount the Holder is electing to require the Company to redeem. The portion of this Note subject to redemption pursuant to this Section 5(b) shall be redeemed by the Company in cash at a price (the “Change
of Control Redemption Price”) equal to the sum of (i) the Conversion Amount and (ii) any accrued and unpaid Interest thereon. Redemptions required by this Section 5 shall be made in accordance with the provisions of
Section 9 and shall have priority to payments to stockholders in connection with a Change of Control. To the extent redemptions required by this Section 5(b) are deemed or determined by a court of competent jurisdiction to be prepayments
of the Note by the Company, such redemptions shall be deemed to be voluntary prepayments. Notwithstanding anything to the contrary in this Section 5, but subject to Section 3(e), until the Change of Control Redemption Price (together with
any interest thereon) is paid in full, the Conversion Amount submitted for redemption under this Section 5(c) (together with any Interest thereon) may be converted, in whole or in part, by the Holder into Common Stock pursuant to Section 3
(and any such conversions shall be deemed to be a withdrawal of the Change of Control Redemption Notice to the extent of such conversion) and shall be entitled to receive the Make-Whole Premium upon any such conversion. 
 (c) Make-Whole Premium. (i) If a Change of Control occurs, the Company shall pay the Make-Whole Premium to the holders of the Notes who
effect a Change of Control Conversion at any time during the Change of Control Conversion/Redemption Period. 
 (A) The
Make-Whole Premium shall be equal to an additional number of shares of Common Stock calculated in accordance with this Section 5(c). The Make-Whole Premium will be in addition to, and not in substitution for, any cash, securities or other
assets otherwise due to the Holder upon conversion as described in this Note. 
 (B) The “Make-Whole
Premium” shall be equal to the Conversion Amount of the Notes to be converted divided by $1,000 and multiplied by the applicable number of shares of Common Stock determined by reference to the table below (the “Make-Whole Premium
Table”) and is based on the Effective Date and the Stock Price. 
  

 - 12 - 

 Additional Shares Required to be Issued 
 (per $1,000 Conversion Amount of Notes) 
 Effective Date 

															
	Stock
Price	  	12/31/2007	  	6/30/2008	  	12/31/2008	  	6/30/2009	  	12/31/2009	  	6/30/2010	  	12/31/2010
	2.25	  	182.608	  	182.608	  	182.608	  	182.608	  	182.608	  	182.608	  	182.608
	2.48	  	152.578	  	148.633	  	145.164	  	142.204	  	142.204	  	142.204	  	142.204
	2.70	  	130.593	  	125.870	  	121.352	  	116.575	  	109.678	  	108.534	  	108.534
	2.93	  	112.896	  	107.640	  	102.372	  	96.833	  	88.220	  	80.272	  	80.044
	3.15	  	98.471	  	92.868	  	87.090	  	81.070	  	71.238	  	61.085	  	55.624
	3.38	  	86.581	  	80.774	  	74.669	  	68.394	  	57.791	  	46.099	  	34.459
	3.60	  	76.684	  	70.776	  	64.487	  	58.123	  	47.142	  	34.568	  	15.941
	3.83	  	68.371	  	62.441	  	56.072	  	49.737	  	38.704	  	25.831	  	2.036
	4.05	  	61.332	  	55.435	  	49.062	  	42.834	  	32.006	  	19.308	  	0.000
	4.28	  	55.327	  	49.502	  	43.180	  	37.100	  	26.674	  	14.504	  	0.000
	4.50	  	50.170	  	44.445	  	38.208	  	32.295	  	22.409	  	11.006	  	0.000
	4.73	  	45.714	  	40.105	  	33.978	  	28.232	  	18.971	  	8.480	  	0.000
	4.95	  	41.840	  	36.359	  	30.358	  	24.764	  	16.170	  	6.663	  	0.000
	5.18	  	38.455	  	33.108	  	27.240	  	21.780	  	13.856	  	5.352	  	0.000
	5.40	  	35.482	  	30.273	  	24.541	  	19.194	  	11.909	  	4.394	  	0.000
	5.63	  	32.859	  	27.788	  	22.194	  	16.939	  	10.236	  	3.673	  	0.000
	5.85	  	30.536	  	25.600	  	20.144	  	14.963	  	8.765	  	3.107	  	0.000
	6.08	  	28.468	  	23.667	  	18.346	  	13.226	  	7.443	  	2.638	  	0.000
	6.30	  	26.622	  	21.952	  	16.763	  	11.696	  	6.230	  	2.225	  	0.000
	6.53	  	24.968	  	20.425	  	15.367	  	10.347	  	5.100	  	1.844	  	0.000
	6.75	  	23.480	  	19.060	  	14.130	  	9.158	  	4.039	  	1.480	  	0.000
	6.98	  	22.139	  	17.838	  	13.032	  	8.112	  	3.037	  	1.127	  	0.000
	7.20	  	20.924	  	16.739	  	12.055	  	7.192	  	2.092	  	0.785	  	0.000
	7.43	  	19.823	  	15.749	  	11.185	  	6.386	  	1.221	  	0.462	  	0.000
	7.65	  	18.821	  	14.854	  	10.407	  	5.680	  	0.287	  	0.113	  	0.000
	7.88	  	17.906	  	14.044	  	9.711	  	5.065	  	0.000	  	0.000	  	0.000
	8.10	  	17.070	  	13.307	  	9.087	  	4.529	  	0.000	  	0.000	  	0.000
	8.33	  	16.304	  	12.637	  	8.527	  	4.064	  	0.000	  	0.000	  	0.000
	8.55	  	15.599	  	12.026	  	8.023	  	3.661	  	0.000	  	0.000	  	0.000
	8.78	  	14.950	  	11.467	  	7.569	  	3.312	  	0.000	  	0.000	  	0.000
	9.00	  	14.352	  	10.955	  	7.159	  	3.012	  	0.000	  	0.000	  	0.000

  

 - 13 - 

 (C) The exact Stock Price and Effective Date may not be set forth on the Make-Whole
Premium Table, in which case, if the Stock Price is between two Stock Prices on the Make-Whole Premium Table or the Effective Date is between two Effective Dates on the Make-Whole Premium Table, the Make-Whole Premium shall be determined by
straight-line interpolation between Make-Whole Premium amounts set forth for the higher and lower Stock Prices and the two Effective Dates, as applicable, based on a 365-day year (or a 366-day year if the Effective Date occurs in a leap year). The
Stock Prices set forth in the column headers are subject to adjustment pursuant to Section 5(c)(iii). 
 (1) If the
Stock Price is less than or equal to $2.25 (subject to adjustment pursuant to Section 5(c)(iii), the “Stock Price Threshold”), the Make-Whole Premium shall be equal to zero shares of Common Stock. 
 (2) If the Stock Price is equal to or greater than $9.00 (subject to adjustment pursuant to Section 5(c)(iii), the “Stock
Price Cap”), the Make-Whole Premium shall be equal to zero shares of Common Stock. 
 (3) “Stock
Price” means the price paid per share of Common Stock in the transaction constituting the Change of Control, determined as follows: (i) if holders of Common Stock receive only cash in the transaction constituting the Change of Control,
the Stock Price shall equal the cash amount paid per share of Common Stock; and (ii) in all other cases, the Stock Price shall equal the arithmetic average of the Weighted Average Price of a share of Common Stock over the five Trading Day
period ending on the Trading Day immediately preceding the Effective Date; and “Effective Date” means the date that a Change of Control becomes effective. 
 (ii) The Company shall pay the Make-Whole Premium solely in shares of Common Stock (with any fractional shares rounded up to the nearest whole share) or
in the same form of consideration into which all or substantially all of the shares of Common Stock have been converted or exchanged in connection with the Change of Control. If holders of the Common Stock receive or have the right to receive more
than one form of consideration in connection with such Change of Control, then, for purposes of the foregoing, the forms of consideration in which the Make-Whole Premium shall be paid shall be in proportion to the different forms of consideration
paid to holders of Common Stock in connection with such Change of Control. 
 (iii) Whenever the Conversion Price shall be adjusted from
time to time by the Company pursuant to Section 7, the Stock Price Threshold and the Stock Price Cap shall be adjusted and each of the Stock Prices set forth in the Make-Whole Premium Table shall be adjusted (rounded to the nearest cent) in the
same manner and at the same time. Each of the share amounts set forth in the body of the Make-Whole Premium Table shall also be adjusted at the same time by multiplying the share amounts set forth in the body of the Make-Whole Premium Table by a
fraction, the numerator of which is the Conversion Price immediately prior to such adjustment and the denominator of which is the Conversion Price as so adjusted. 
 (6) RIGHTS UPON ISSUANCE OF PURCHASE RIGHTS. If at any time the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, 

  

 - 14 - 

 
warrants, securities or other property pro rata to the record holders of any class of Common Stock (the “Purchase Rights”), then the Holder
will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of
this Note (without taking into account any limitations or restrictions on the convertibility of this Note) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is
taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights. 
 (7) RIGHTS UPON ISSUANCE OF OTHER SECURITIES. 
 (a) Adjustment of Conversion Price upon Subdivision or Combination of
Common Stock. If the Company at any time on or after the Subscription Date subdivides (by any stock dividend, stock split, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of
shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced. If the Company at any time on or after the Subscription Date combines (by combination, reverse stock split or otherwise) one or more
classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased. 
 (b) Voluntary Decrease. The Company may at any time during the term of this Note reduce the then current Conversion Price to any amount and for
any period of time deemed appropriate by the Company’s board of directors. 
 (8) OPTIONAL REDEMPTION BY COMPANY OR HOLDER.

 (a) Optional Redemption by the Company. On and after December 31, 2010 (such date, the “Triggering Optional Redemption
Date”), the Company shall have the right, in its sole discretion, to redeem all or any portion of the Note (a “Company Optional Redemption”). In order for the Company to exercise the Company Optional Redemption at any time
on or after the Triggering Optional Redemption Date, the Company shall deliver written notice by confirmed facsimile and overnight courier to all, but not less than all, of the holders of the Notes (the “Company Optional Redemption
Notice” and the date such notice is delivered to all the holders is referred to as the “Company Optional Redemption Notice Date”) no later than twenty (20) Trading Days prior to the Company Optional Redemption Date (as
hereafter defined) which shall (w) state the date on which the Company Optional Redemption shall occur (such date, the “Company Optional Redemption Date”), the (x) describe the redemption rights provided in this
Section 8, (y) set forth the Optional Redemption Price, and (z) state the aggregate Principal of the Notes which the Company has elected to be subject to such Company Optional Redemption from all of the holders of the Notes pursuant
to this Section 8(b) (and analogous provisions under the Other Notes) plus accrued and unpaid Interest thereon (the “Company Redemption Amount”). The portion of this Note subject to redemption pursuant to this Section 8(a)
shall be redeemed by the Company in cash at a price (the “Optional Redemption Price”) equal to the sum of (x) the Conversion Amount being redeemed and (y) any accrued and unpaid Interest on the Conversion Amount. The
Company Optional Redemption Notice shall be irrevocable. Notwithstanding anything to the contrary in this Section 8, but subject to Section 3(e), until the Holder receives the Optional Redemption Price, the Conversion Amount reflected in
such Optional Redemption Notice may be converted, in whole or in part, by the Holder into Common 

  

 - 15 - 

 
Stock pursuant to Section 3 (and any such conversions shall be deemed to be a withdrawal of the Company Optional Redemption Notice to the extent of such
conversion), and any such conversion shall reduce the Conversion Amount reflected in such Optional Redemption Notice. The Company Redemption Amount which is to be paid to the Holder on the applicable Company Optional Redemption Date shall be
redeemed by the Company, and the Company shall pay to the Holder on such Company Optional Redemption Date by wire transfer of immediately available funds, the Optional Redemption Price. 
 (b) Optional Redemption by the Holder. No later than twenty (20) Trading Days prior to the Triggering Optional Redemption Date, the Company
shall deliver written notice by confirmed facsimile and overnight courier to all, but not less than all, of the holders of the Notes (the “Company Notice”) which shall describe the redemption rights provided in this Section 8.
On the Triggering Optional Redemption Date, the Holder shall have the right, in its sole discretion, to require that the Company redeem all or any portion of the Note (a “Holder Optional Redemption”). In order for the Holder to
exercise its Holder Optional Redemption Right, the Holder must deliver written notice (the “Holder Optional Redemption Notice”) to the Company no later than five (5) Business Days prior to the later of (x) the Triggering
Optional Redemption Date and (y) twenty (20) Trading Days following the receipt of the Company Notice (such later date, the “Holder Optional Redemption Date”). The Holder Optional Redemption Notice shall indicate the
Conversion Amount the Holder is electing to have redeemed (the “Holder Optional Redemption Amount”) on the Holder Optional Redemption Date, which date shall be no earlier than the Triggering Optional Redemption Date and no later
than twenty (20) Trading Days following receipt of the Company Notice. The portion of this Note subject to redemption pursuant to this Section 8 shall be redeemed by the Company in cash at the Optional Redemption Price. Notwithstanding
anything to the contrary in this Section 8, but subject to Section 3(e), until the Holder receives the Optional Redemption Price, the Holder Optional Redemption Amount may be converted, in whole or in part, by the Holder into Common Stock
pursuant to Section 3 (and any such conversions shall be deemed to be a withdrawal of the Holder Optional Redemption Notice to the extent of such conversion), and any such conversion shall reduce the Conversion Amount reflected in such Optional
Redemption Notice. The Holder Optional Redemption Amount which is to be paid to the Holder on the applicable Holder Optional Redemption Date shall be redeemed by the Company, and the Company shall pay to the Holder on such Holder Optional Redemption
Date by wire transfer of immediately available funds, the Optional Redemption Price. 
 (c) Pro Rata Redemption Requirement. If the
Company elects to cause a Company Optional Redemption pursuant to Section 8, then it must simultaneously take the same action with respect to the Other Notes. If the Company elects to cause a Company Optional Redemption pursuant to this
Section 8 (or similar provisions under the Other Notes) with respect to less than all of the principal amount of the Notes then outstanding, then the Company shall require redemption of a Principal amount from the Holder and each holder of the
Other Notes equal to the product of (i) the aggregate principal amount of Notes which the Company has elected to cause to be redeemed pursuant to Section 8, multiplied by (ii) the fraction, the numerator of which is the sum of the
initial principal amount of Notes purchased by such holder (or the ultimate holder of a Note transferred as set forth below with an allocation among such Notes as set forth below) and the denominator of which is the initial principal amounts of
Notes purchased by all holders (or the ultimate holder of a Note transferred as set forth below with an allocation among such Notes as set forth below) holding outstanding Notes (such fraction with respect to each holder is referred to as its
“Redemption  

  

 - 16 - 

 
Allocation Percentage”, and such amount with respect to each holder is referred to as its “Pro Rata Redemption Amount”);
provided that in the event that the initial holder of any Notes has sold or otherwise transferred any of such holder’s Notes, the transferee shall be allocated a pro rata portion of such transferring holder’s Redemption Allocation
Percentage and Pro Rata Redemption Amount; and provided further, that in the event any holder’s Pro Rata Redemption Amount exceeds the outstanding principal amount of such holder’s Note, any excess redemption amount shall be applied to the
principal amount of all remaining Notes on a pro rata basis pursuant to this subsection (b). 
 (d) Redemptions Generally. Any
redemptions made pursuant to this Section 8 shall be made in accordance with Section 9. No later than one (1) Trading Day following any Optional Redemption Date or Holder Optional Redemption Date, the Company shall file a Current
Report on Form 8-K describing the terms of such Holder Optional Redemption or Company Optional Redemption, as the case may be. To the extent redemptions required by this Section 8 are deemed or determined by a court of competent jurisdiction to
be prepayments of the Note by the Company, such redemptions shall be deemed to be voluntary prepayments. 
 (9) REDEMPTIONS.

 (a) Mechanics. The Company shall deliver the applicable Event of Default Redemption Price to the Holder within five
(5) Business Days after the Company’s receipt of the Holder’s Event of Default Redemption Notice. If the Holder has submitted a Change of Control Redemption Notice in accordance with Section 5(b), the Company shall deliver the
applicable Change of Control Redemption Price to the Holder (i) concurrently with the consummation of such Change of Control if such notice is received prior to the consummation of such Change of Control and (ii) within five
(5) Business Days after the Company’s receipt of such notice otherwise (the “Change of Control Settlement Date”). The Company shall deliver the applicable Optional Redemption Price on the Optional Redemption Date or Holder
Optional Redemption Date, as applicable. In the event of a redemption of less than all of the Conversion Amount of this Note, the Company shall promptly cause to be issued and delivered to the Holder a new Note (in accordance with
Section 17(d)) representing the outstanding Principal which has not been redeemed. In the event that the Company does not pay the applicable Redemption Price to the Holder within the time period required, at any time thereafter and until the
Company pays such unpaid Redemption Price in full, the Holder shall have the option, in lieu of redemption, to require the Company to promptly return to the Holder all or any portion of this Note representing the Conversion Amount that was submitted
for redemption and for which the applicable Redemption Price has not been paid. Upon the Company’s receipt of such notice, (x) the applicable Redemption Notice shall be null and void with respect to such Conversion Amount and (y) the
Company shall immediately return this Note, or issue a new Note (in accordance with Section 17(d)) to the Holder representing such Conversion Amount. 
 (b) Redemption by Other Holders. Upon the Company’s receipt of notice from any of the holders of the Other Notes for redemption or repayment as a result of an event or occurrence described in
Section 4(b), Section 5(b) or Section 8 (each, an “Other Redemption Notice”), the Company shall immediately, but no later than one (1) Business Day of its receipt thereof, forward to the Holder by facsimile a
copy of such notice. If there has been an Acceleration to the extent required and the Company receives a Holder’s Redemption Notice and one or more Other Redemption Notices, during the seven (7) Business Day period beginning on and
including the date which is three (3) Business Days prior to the Company’s receipt of the Holder’s Redemption Notice 

  

 - 17 - 

 
and ending on and including the date which is three (3) Business Days after the Company’s receipt of the Holder’s Redemption Notice and the
Company is unable to redeem all principal, interest and other amounts designated in such Redemption Notice and such Other Redemption Notices received during such seven (7) Business Day period, then the Company shall redeem a pro rata amount
from each holder of the Notes (including the Holder) based on the principal amount of the Notes submitted for redemption pursuant to such Redemption Notice and such Other Redemption Notices received by the Company during such seven Business Day
period. 
 (10) NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate
of Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Note, and will at all times in good faith carry out all of the provisions of this Note and take all action as may be required to protect the rights of the Holder of this Note. 
 (11) RESERVATION OF AUTHORIZED SHARES. 
 (a) Reservation. The Company shall initially reserve out of its authorized and unissued Common Stock a number of shares of Common Stock for each of the Notes equal to the Conversion Rate for each of the Notes as of the Issuance Date
plus the maximum number of shares of Common Stock issuable as a Make-Whole Premium under each of the Notes as of the Issuance Date. So long as any of the Notes are outstanding, the Company shall take all action necessary to reserve and keep
available out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of the Notes, the number of shares of Common Stock as shall from time to time be necessary to effect the conversion of all of the Notes
then outstanding and the maximum number of shares of Common Stock issuable as a Make-Whole Premium upon conversion of all outstanding Notes; provided that at no time shall the number of shares of Common Stock so reserved be less than the number of
shares required to be reserved by the previous sentence (without regard to any limitations on conversions) (the “Required Reserve Amount”). The initial number of shares of Common Stock reserved for conversions of the Notes and each
increase in the number of shares so reserved shall be allocated pro rata among the holders of the Notes (or the ultimate holder of a Note transferred as set forth below with an allocation among such Notes as set forth below) based on the principal
amount of the Notes held by each holder (or the ultimate holder of a Note transferred as set forth below with an allocation among such Notes as set forth below) at the Closing (as defined in the Securities Purchase Agreement) or increase in the
number of reserved shares, as the case may be (the “Authorized Share Allocation”). In the event that a holder shall sell or otherwise transfer any of such holder’s Notes, each transferee shall be allocated a pro rata portion of
such transferring holder’s Authorized Share Allocation. Any shares of Common Stock reserved and allocated to any Person which ceases to hold any Notes shall be allocated to the remaining holders of Notes, pro rata based on the principal amount
of the Notes then held by such holders. 
 (b) Insufficient Authorized Shares. If at any time while any of the Notes remain
outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon conversion of the Notes at least a number of shares of Common Stock equal to the
Required Reserve Amount (an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to

  

 - 18 - 

 
reserve the Required Reserve Amount for the Notes then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after
the date of the occurrence of an Authorized Share Failure, but in no event later than thirty (30) days after the occurrence of such Authorized Share Failure, the Company shall file a proxy statement with respect to a meeting of its stockholders
for the approval of an increase in the number of authorized shares of Common Stock and the Company shall be required to increase the number of authorized shares no later than ninety (90) days after the occurrence of the Authorized Share Failure
(the “Authorized Share Failure Deadline”). In connection with such meeting, the Company shall provide each stockholder with such proxy statement and shall use its best efforts to solicit its stockholders’ approval of such
increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal. 
 (12) VOTING RIGHTS. The Holder shall have no voting rights as the holder of this Note, except as required by law, including, but not limited to, the General Corporation Law of the State of Delaware, and as expressly provided in this
Note. 
 (13) COVENANTS. 
 (a) Ranking. All obligations evidenced by this Note and the Other Notes shall constitute senior obligations of the Company and are senior in right of payment to any existing or future subordinated indebtedness or other subordinated
obligations of the Company. 
 (b) Incurrence of Indebtedness. So long as this Note is outstanding, (i) the Company shall not,
directly or indirectly, incur or guarantee, assume or suffer to exist any Indebtedness, other than Permitted Indebtedness and (ii) the Company shall not permit any of its Subsidiaries to, directly or indirectly, incur or guarantee, assume or
suffer to exist any Indebtedness, other than Permitted Pari Passu Indebtedness and Indebtedness secured by Permitted Liens. 
 (c)
Existence of Liens. So long as this Note is outstanding, the Company shall not, and the Company shall not permit any of its Subsidiaries to, directly or indirectly, allow or suffer to exist any mortgage, lien, pledge, charge, security
interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by the Company or any of its Subsidiaries (collectively, “Liens”) other than Permitted Liens. 
 (d) Restricted Payments. The Company shall not, and the Company shall not permit any of its Subsidiaries to, directly or indirectly, redeem,
defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or in part, whether by way of open market purchases, tender offers, private transactions or otherwise), all or any portion of any
Indebtedness described in clause (ii) of the definition of “Permitted Indebtedness”, whether by way of payment in respect of principal of (or premium, if any) or interest on, such Indebtedness if at the time such payment is due or is
otherwise made or, after giving effect to such payment, an event constituting, or that with the passage of time and without being cured would constitute, an Event of Default has occurred and is continuing. 
 (e) Restriction on Redemption and Cash Dividends. Until all of the Notes have been converted, redeemed or otherwise satisfied in accordance with
their terms, the Company shall not, directly or indirectly, redeem, repurchase or declare or pay any cash dividend or distribution 

  

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on its capital stock without the prior express written consent of the Majority Holders other than pursuant to the terms of any securities issued pursuant to
an Approved Stock Plan, provided, that the redemption or repurchase price shall not exceed the purchase price paid and such purchase price reflects no more than the fair market value as determined in good faith by the Company’s board of
directors. 
 (14) PARTICIPATION. Without duplication of the provisions of Section 6 hereof, the Holder, as the holder of this
Note, shall be entitled to receive such dividends paid and distributions made to the holders of Common Stock to the same extent as if the Holder had converted this Note into Common Stock (without regard to any limitations on conversion herein or
elsewhere) and had held such shares of Common Stock on the record date for such dividends and distributions. Payments under the preceding sentence shall be made concurrently with the dividend or distribution to the holders of Common Stock.

 (15) VOTE TO ISSUE, OR CHANGE THE TERMS OF, NOTES. The affirmative vote at a meeting duly called for such purpose or the written
consent without a meeting of the Majority Holders shall be required and sufficient for any change or amendment to this Note or the Other Notes; provided, however, that the approval of the Holder shall be required for any change or amendment that
would (i) reduce the rate of or extend the time for payment of Interest, (ii) reduce the Principal amount of, or extend the Maturity Date, (iii) make any change that impairs or adversely affects the conversion rights of the Note,
(iv) reduce any Redemption Price or amend or modify in any manner adverse to the Holder the Company’s obligation to make such payments, whether through an amendment or waiver of provisions in the covenants, definitions or otherwise,
(v) modify the provisions in respect of the right of the Holder to cause the Company to redeem or to repurchase pursuant to the terms of this Note in a manner adverse to the Holder, (vi) impair the right to receive payment of the Principal
amount of or Interest, on this Note on or after the due dates therefor or to institute suit for the enforcement of any payment on or in respect of this Note, (vii) reduce the quorum or voting requirements under the Notes, or (viii) change
the ranking of the Notes in a manner adverse to the Holder, (ix) modify the Conversion Limitation with respect to the Holder, or (x) modify any of the provisions of this Section 15, except to increase any such percentage or to provide
that certain other provisions of this Note cannot be modified or waived without the consent of the Holder. No consideration shall be offered or paid to any holder of Notes to amend or consent to a waiver or modification of the Notes unless the same
consideration also is offered to all of the holders of Notes who agree to such amendment, waiver or modification. 
 (16) TRANSFER.
This Note and any shares of Common Stock issued upon conversion of this Note may be offered, sold, assigned or transferred by the Holder without the consent of the Company, subject only to the provisions of Section 2(f) of the Securities
Purchase Agreement. 
 (17) REISSUANCE OF THIS NOTE. 
 (a) Transfer. If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Note (in
accordance with Section 17(d)), registered as the Holder may request, representing the outstanding Principal being transferred by the Holder and, if less then the entire outstanding Principal is being transferred, a new Note (in accordance with
Section 17(d)) to the Holder representing the outstanding Principal not being transferred. The Holder and any assignee, by 

  

 - 20 - 

 
acceptance of this Note, acknowledge and agree that, by reason of the provisions of Section 3(c)(iii) following conversion or redemption of any portion
of this Note, the outstanding Principal represented by this Note may be less than the Principal stated on the face of this Note. 
 (b)
Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification
undertaking and bonding by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note (in accordance with
Section 17(d)) representing the outstanding Principal. 
 (c) Note Exchangeable for Different Denominations. This Note is
exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Note or Notes (in accordance with Section 17(d) and in principal amounts of at least $250,000) representing in the aggregate the outstanding
Principal of this Note, and each such new Note will represent such portion of such outstanding Principal as is designated by the Holder at the time of such surrender. 
 (d) Issuance of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall be of like tenor with this Note, (ii) shall represent, as
indicated on the face of such new Note, the Principal remaining outstanding (or in the case of a new Note being issued pursuant to Section 17(a) or Section 17(c), the Principal designated by the Holder which, when added to the principal
represented by the other new Notes issued in connection with such issuance, does not exceed the Principal remaining outstanding under this Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated on
the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions as this Note, and (v) shall represent accrued and unpaid Interest from the Issuance Date. 
 (18) REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Note shall be cumulative and in
addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s
right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be
the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all
other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. 
 (19) PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding or the
Holder otherwise takes action to collect amounts due 

  

 - 21 - 

 
under this Note or to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company or other
proceedings affecting Company creditors’ rights and involving a claim under this Note, then the Company shall pay the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization,
receivership or other proceeding, including, but not limited to, attorneys’ fees and disbursements. 
 (20) CONSTRUCTION;
HEADINGS. This Note shall be deemed to be jointly drafted by the Company and all the Purchasers and shall not be construed against any person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form
part of, or affect the interpretation of, this Note. 
 (21) FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of the
Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right,
power or privilege. 
 (22) DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Closing Bid Price, the Closing
Sale Price or the Weighted Average Price or the arithmetic calculation of the Conversion Rate, the Conversion Price or any Redemption Price, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within one
(1) Business Day of receipt, or deemed receipt, of the Conversion Notice or Redemption Notice or other event giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree upon such
determination or calculation within one (1) Business Day of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within one (1) Business Day submit via facsimile (a) the disputed
determination of the Closing Bid Price, the Closing Sale Price or the Weighted Average Price to an independent, reputable investment bank selected by the Company and approved by the Holder or (b) the disputed arithmetic calculation of the
Conversion Rate, Conversion Price or any Redemption Price to the Company’s independent, outside accountant. The Company, at the Company’s expense, shall cause the investment bank or the accountant, as the case may be, to perform the
determinations or calculations and notify the Company and the Holder of the results no later than seven (7) Business Days from the time it receives the disputed determinations or calculations. Such investment bank’s or accountant’s
determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error. 
 (23) NOTICES;
PAYMENTS. 
 (a) Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice
shall be given in accordance with Section 9(f) of the Securities Purchase Agreement. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment of the Conversion
Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least twenty (20) days prior to the date on which the Company closes its books or takes a record (A) with respect to any
dividend or distribution upon the Common Stock, (B) with respect to any pro rata subscription offer to holders of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation,
provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder, in which case the requirements of clause (ii) shall be deemed satisfied if such notice to
the Holder is made promptly following notice to the public. 
  

 - 22 - 

 (b) Payments. Whenever any payment of cash is to be made by the Company to any Person pursuant to
this Note, such payment shall be made in lawful money of the United States of America by a check drawn on the account of the Company and sent via overnight courier service to such Person at such address as previously provided to the Company in
writing (which address, in the case of each of the Purchasers, shall initially be as set forth on the Schedule of Buyers attached to the Securities Purchase Agreement); provided that the Holder may elect to receive a payment of cash via wire
transfer of immediately available funds by providing the Company with prior written notice setting out such request and the Holder’s wire transfer instructions. Whenever any amount expressed to be due by the terms of this Note is due on any day
which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business Day and, in the case of any Interest Date which is not the date on which this Note is paid in full, the extension of the due date thereof shall
not be taken into account for purposes of determining the amount of Interest due on such date. Any amount of Principal or other amounts due under the Transaction Documents which is not paid when due shall continue to accrue Interest on such amount
at the applicable Interest Rate from the date such amount is due until paid in full. 
 (24) CANCELLATION. After all Principal,
accrued Interest and other amounts at any time owed on this Note have been converted, redeemed or otherwise paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall not be
reissued. 
 (25) WAIVER OF NOTICE. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other
demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note and the Securities Purchase Agreement, except as for notices otherwise expressly provided for in the Note and the Securities Purchase
Agreement. 
 (26) GOVERNING LAW; JURISDICTION; JURY. This Note shall be construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. The Company hereby irrevocably waives personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the address as provided in Section 23 hereof and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed or operate to preclude the Holder from bringing suit or taking other 

  

 - 23 - 

 
legal action against the Company in any other jurisdiction to collect on the Company’s obligations to the Holder, or to enforce a judgment or other
court ruling in favor of the Holder. EACH OF THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF
THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY. 
 (27) SEVERABILITY. If any provision of this Note is prohibited by law or
otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and
enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Note so long as this Note as so modified continues to express, without material change, the original intentions
of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the
practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of
which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s). 
 (28) CERTAIN DEFINITIONS. For
purposes of this Note, the following terms shall have the following meanings: 
 (a) “Additional Interest Amount” means, as
to any Conversion Amount being converted pursuant to Section 3 hereof, an amount equal to the difference between (A) an amount of Interest that, but for the applicable conversion, would have been paid to the Holder on such Conversion
Amount from the Issuance Date through the next succeeding Interest Date after the Conversion Date and (B) the amount of Interest already paid to the Holder through the applicable Conversion Date. 
 (b) “Approved Stock Plan” means any employee benefit plan which has been approved by the Company’s board of directors, pursuant to
which the Company’s securities may be issued to any employee, consultant, officer or director for services provided to the Company. 
 (c) “Bloomberg” means Bloomberg Financial Markets. 
 (d) “Business Day” means any day other than
Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed. 
 (e)
“Change of Control” means any Fundamental Transaction other than (i) any merger, consolidation, reorganization, recapitalization or reclassification of the Common Stock in which holders of the Company’s voting power
immediately prior to such merger, consolidation, reorganization, recapitalization or reclassification continue after such merger, consolidation, reorganization, recapitalization or reclassification to hold publicly traded securities and, directly or
indirectly, a majority of the voting power of the surviving entity or entities that elects the members of the board of directors (or their equivalent if other than a corporation) of such entity or entities, or (ii) pursuant to a migratory
merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company. 
  

 - 24 - 

 (f) “Closing Bid Price” and “Closing Sale Price” means, for any
security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does
not designate the closing bid price or the closing trade price, as the case may be, then the last bid price or last trade price, respectively, of such security prior to 4:00:00 p.m., New York Time, as reported by Bloomberg, or, if the Principal
Market is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading market where such security is listed
or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported by
Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported in the
“pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid
Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of
such security, then such dispute shall be resolved pursuant to Section 22. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification or similar transaction during the
applicable calculation period. 
 (g) “Closing Date” shall have the meaning set forth in the Securities Purchase Agreement,
which date is the date the Company initially issued Notes pursuant to the terms of the Securities Purchase Agreement. 
 (h) “Common
Stock” means the shares of the Company’s common stock, par value $0.0001 per share, or any other shares of capital stock of the Company into which the Common Stock shall be reclassified or changed or, in the event of a merger,
consolidation or other similar transaction involving the Company that is permitted hereunder in which the Company is not the Successor Entity, the common stock, common equity interests, ordinary shares or depositary shares or other certificates
representing common equity interests of such Successor Entity or its direct or indirect parent corporation. 
 (i) “Contingent
Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any Indebtedness of another Person if the primary purpose or intent of the Person incurring such liability, or
the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be
protected (in whole or in part) against loss with respect thereto. 
 (j) “Convertible Securities” means any stock or
securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable for Common Stock. 
  

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 (k) “Director Change” means, at any time the following persons cease for any reason to
constitute a majority of the Company’s board of directors: (i) individuals who on the date hereof constituted the Company’s board of directors and (ii) any other new directors whose appointment to the Company’s board of
directors or whose nomination for election by the Company’s stockholders was approved by at least a majority of the directors of the Company then still in office either (A) who were directors of the Company on the date hereof, or
(B) whose appointment or nomination for election was previously so approved. 
 (l) “Effective Date” means the date
that a Change of Control becomes effective. 
 (m) “Eligible Market” means the Principal Market, The New York Stock
Exchange, Inc., the American Stock Exchange, The NASDAQ Global Select Market, or The NASDAQ Capital Market. 
 (n) “Equity
Conditions” means that each of the following conditions is satisfied: (i) on each applicable date of determination, either (x) the Registration Statement filed pursuant to the Registration Rights Agreement shall be effective and
available for the resale of all remaining Registrable Securities in accordance with the terms of the Registration Rights Agreement and there shall not have been any Grace Period (as defined in the Registration Rights Agreement) on such day or
(y) all shares of Common Stock issuable upon conversion of the Notes shall be eligible for sale without restriction and without the need for registration under any applicable federal or state securities laws; (ii) on each applicable date
of determination, the Common Stock is designated for quotation on the Principal Market or any other Eligible Market and shall not have been suspended from trading on such exchange or market nor shall delisting or suspension by such exchange or
market been threatened or pending either (A) in writing by such exchange or market or (B) by falling below the then effective minimum listing maintenance requirements of such exchange or market; (iii) on each applicable date of
determination, the Company shall have delivered shares of Common Stock upon conversion of the Notes to the holders on a timely basis as set forth in Section 3(c)(ii) hereof (and analogous provisions under the Other Notes); (iv) any
applicable shares of Common Stock to be issued in connection with the event requiring determination may be issued in full without violating Section 3(e) hereof and the rules or regulations of the Principal Market or any applicable Eligible
Market; and (v) on each applicable date of determination, there shall not have occurred either (A) the public announcement of a pending, proposed or intended Fundamental Transaction which has not been abandoned, terminated or consummated
or (B) an Event of Default or (C) an event that solely with the passage of time or giving of notice would constitute an Event of Default. 
 (o) “Equity Conditions Failure” means that on any Trading Day during the period commencing on the first Trading Day of the applicable Mandatory Conversion Measuring Period through and including the applicable Mandatory
Conversion Date, the Equity Conditions have not been satisfied (or waived in writing by the Holder). 
 (p) “Fundamental
Transaction” means (A) that the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person or Persons,
or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person, or (iii) allow another Person to make a purchase, tender or exchange offer 

  

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that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock (not including any shares of Voting Stock held by the Person or
Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a
reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than the 50% of the outstanding shares of Voting Stock (not including any shares of Voting Stock held by the other
Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination), or (v) reorganize, recapitalize or reclassify its Common Stock, or
(B) (i) the holders of the Company’s Voting Stock of any plan or proposal for the liquidation or dissolution of the Company or (ii) a Director Change or (iii) any “person” or “group” (as these terms are
used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate Voting Stock of the Company.

 (q) “GAAP” means United States generally accepted accounting principles, consistently applied. 
 (r) “Holder Pro Rata Amount” means a fraction (i) the numerator of which is the Principal amount of this Note on the Closing Date
and (ii) the denominator of which is the aggregate principal amount of all Notes issued to the initial purchasers pursuant to the Securities Purchase Agreement on the Closing Date. 
 (s) “Indebtedness” of any Person means, without duplication (i) all indebtedness for borrowed money, (ii) all obligations
issued, undertaken or assumed as the deferred purchase price of property or services, including (without limitation) “capital leases” in accordance with GAAP, (iii) all reimbursement or payment obligations with respect to letters of
credit, surety bonds and other similar instruments, (iv) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or
businesses, (v) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness
(even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (vi) all monetary obligations under any leasing or similar arrangement which, in
connection with GAAP, consistently applied for the periods covered thereby, is classified as a capital lease, (vii) all indebtedness referred to in clauses (i) through (vi) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any Person,
even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (viii) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to
in clauses (i) through (vii) above. 
 (t) “Interest Rate” means six and one-half percent (6.50%) per annum,
subject to adjustment as set forth in Section 2. 
  

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 (u) “Majority Holders” means the holders of Notes representing at least a majority of
the aggregate principal amount of the Notes then outstanding. 
 (v) “Options” means any rights, warrants or options to
subscribe for or purchase shares of Common Stock or Convertible Securities. 
 (w) “Parent Entity” of a Person means an
entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent
Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction. 
 (x) “Permitted
Indebtedness” means (i) the Indebtedness evidenced by this Note and the Other Notes, (ii) unsecured Indebtedness incurred by the Company that is made expressly subordinate in right of payment to the Indebtedness evidenced by this
Note, as reflected in a written agreement reasonably acceptable to the Majority Holders in writing, and which Indebtedness does not provide at any time for (1) the payment, prepayment, repayment, repurchase or defeasance, directly or
indirectly, of any principal or premium, if any, thereon until ninety-one (91) days after the Maturity Date or later and (2) total interest and fees at a rate in excess of twelve and one-half percent (12.50%) per annum,
(iii) Indebtedness secured by Permitted Liens and (iv) Permitted Pari Passu Indebtedness. 
 (y) “Permitted Liens”
means (i) any Lien for taxes not yet due or delinquent or being contested in good faith by appropriate proceedings for which adequate reserves have been established in accordance with GAAP, (ii) any statutory Lien arising in the ordinary
course of business by operation of law with respect to a liability that is not yet due or delinquent or being contested in good faith by appropriate proceedings for which adequate reserves have been established in accordance with GAAP,
(iii) any Lien created by operation of law, such as materialmen’s liens, mechanics’ liens, landlord’s liens, carrier’s liens and other similar liens, arising in the ordinary course of business with respect to a liability
that is not yet due or delinquent or that are being contested in good faith by appropriate proceedings, (iv) Liens (including Liens with respect to capital leases) (A) upon or in any equipment acquired or held by the Company or any of its
Subsidiaries to secure the purchase price of such equipment or indebtedness incurred solely for the purpose of financing the acquisition or lease of such equipment, or (B) existing on such equipment at the time of its acquisition, provided that
the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such equipment, (v) Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type
described in clause (iv) above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness being extended, renewed or refinanced does
not increase, (vi) leases or subleases and licenses and sublicenses granted to others in the ordinary course of the Company’s business, not interfering in any material respect with the business of the Company and its Subsidiaries taken as
a whole, (vii) zoning restrictions, easements, licenses, reservations, title defects, rights of others for rights-of-way, utilities, sewers, electrical lines, telephone lines, telegraph wires, restrictions and other similar charges or
encumbrances not interfering in any material respect with the Company or any Subsidiary’s business, incurred in the ordinary course of business, that do not (x) secure obligations for the payment of money or (y) interfere in any
material respect with the Company or any Subsidiary’s business, (viii) Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social
security 

  

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or other insurance (including unemployment insurance); (ix) Liens in favor of customs and revenue authorities arising as a matter of law to secure
payments of custom duties in connection with the importation of goods, and (x) Liens arising from judgments, decrees or attachments (including surety and appeal bonds) in circumstances not constituting an Event of Default under
Section 4(a)(viii). 
 (z) “Permitted Pari Passu Indebtedness” means unsecured Indebtedness to trade creditors of the
Company and its Subsidiaries, incurred in the ordinary course of business and that is not outstanding for more than 120 days after the date such payable was created; provided however, that Permitted Pari Passu Indebtedness shall include payables
outstanding for more than 120 days after the date such payable was created (i) that are contested in good faith by appropriate proceedings for which adequate reserves have been established in accordance with GAAP, or (ii) if not contested,
that do not, individually or in the aggregate, exceed the greater of (a) $1,000,000 and (b) 25% of aggregate of all of such unsecured Indebtedness to trade creditors. 
 (aa) “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization, any other entity and a government or any department or agency thereof. 
 (bb) “Principal
Market” means The NASDAQ Global Market. 
 (cc) “Redemption Notices” means, collectively, the Event of Default
Redemption Notices, the Change of Control Redemption Notices, the Company Notice, each of the foregoing, individually, a Redemption Notice. 
 (dd) “Redemption Prices” means, collectively, the Event of Default Redemption Price, Change of Control Redemption Price, the Holder Optional Redemption Price, and the Company Optional Redemption Price, each of the
foregoing, individually, a Redemption Price. 
 (ee) “Registration Rights Agreement” means that certain registration rights
agreement dated as of the Subscription Date by and among the Company and the initial holders of the Notes relating to, among other things, the registration of the resale of the Common Stock issuable upon conversion of the Notes. 
 (ff) “Required Holders” means the holders of Notes representing at least twenty-five percent (25%) of the aggregate principal
amount of the Notes then outstanding. 
 (gg) “SEC” means the United States Securities and Exchange Commission. 

(hh) “Securities Purchase Agreement” means that certain securities purchase agreement dated as of the Subscription Date by and among
the Company and the initial holders of the Notes pursuant to which the Company issued the Notes. 
 (ii) “Subscription Date”
means December [•], 2007. 
 (jj) “Subsidiary” means, in respect of any Person, (a) any corporation,
association or other business entity of which 50% or more of the total voting power of shares of capital stock or other equity interest entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof is at the time owned or controlled, directly or 

  

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indirectly, by such Person or one or more of the other subsidiaries of that Person (or a combination thereof) and (b) any partnership (i) the sole
general partner or managing general partner of which is such Person or a subsidiary of such Person or (ii) the only general partners of which are (a) such Person or (b) one or more subsidiaries of such Person (or any combination
thereof). 
 (kk) “Significant Subsidiary” means a Subsidiary of the Company that is a “significant subsidiary” as
those terms are defined in Regulation S-X under the Securities Act. 
 (ll) “Successor Entity” means the Person, which may
be the Company, formed by, resulting from or surviving any Fundamental Transaction or the Person with which such Fundamental Transaction shall have been made, provided that if such Person is not a publicly traded entity whose common stock or
equivalent equity security is quoted or listed for trading on an Eligible Market, and such Person has a Parent Entity, Successor Entity shall mean such Person’s Parent Entity. 
 (mm) “Trading Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded; provided that “Trading Day” shall not include any day on which the Common Stock is
scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York Time). 
 (nn) “Voting
Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors,
managers or trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency). 
 (oo) “Weighted Average Price” means, for any security as of any date, the dollar volume-weighted average price for such security on the
Principal Market during the period beginning at 9:30:01 a.m., New York Time (or such other time as the Principal Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York Time (or such other time as the
Principal Market publicly announces is the official close of trading) as reported by Bloomberg through its “Volume at Price” functions, or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the
over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York Time (or such other time as such market publicly announces is the official open of trading), and ending at 4:00:00 p.m.,
New York Time (or such other time as such market publicly announces is the official close of trading) as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of
the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Weighted Average Price
cannot be calculated for a security on a particular date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and
the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to Section 22. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination,
reclassification or similar transaction during the applicable calculation period. 
  

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 (29) DISCLOSURE. Upon receipt or delivery by the Company of any notice in accordance with the
terms of this Note, unless the Company has in good faith determined that the matters relating to such notice do not constitute material, nonpublic information relating to the Company or its Subsidiaries, the Company shall within two
(2) Business Days after any such receipt or delivery publicly disclose such material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice contains material, nonpublic
information relating to the Company or its Subsidiaries, the Company so shall indicate to such Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed to presume that all matters
relating to such notice do not constitute material, nonpublic information relating to the Company or its Subsidiaries. 
 [Signature Page
Follows] 
  

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

			
	I-MANY, INC.
		
	By:	 	 /s/ John A. Rade

	Name:	 	John A. Rade
	Title:	 	Chief Executive Officer

 [Signature Page to Senior Convertible Note]

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