Document:

Master Employment Agreement

 Exhibit 4.18 
 MASTER EMPLOYMENT AGREEMENT 
 This Master Employment Agreement (this “Agreement”) is made
and entered into this 28th day of July, 2005 by and between AMVESCAP PLC (hereinafter, the “Company”), and Mr. Martin L. Flanagan (hereinafter, “Executive”), to be effective as of the Effective Date, as defined in
Section 1. 
 BACKGROUND 
 WHEREAS, the Company desires to hire Executive as President and Chief Executive Officer of the Company in accordance with the terms of this Agreement; and 
 WHEREAS, Executive is willing to serve in such capacity in accordance with the terms and conditions of this Agreement; 
 NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows: 
 1. Effective Date. The effective date of this Agreement (the “Effective Date”) will
be as of July 12, 2005. 
 2. Employment. Executive is hereby employed on the Employment Date (as defined below) as the President
and Chief Executive Officer of the Company. In his capacity as President and Chief Executive Officer of the Company, Executive shall have the responsibilities listed on the Terms of Reference (attached hereto as Appendix A) for such position
as provided in the Company’s Corporate Governance Manual. Executive acknowledges that the Company may amend the Terms of Reference from time to time as the Board of Directors of the Company (the “Board”) deems necessary or desirable
in order to comply with applicable law, regulation, order, or written guidance issued by a governing authority, securities exchange or similar organization. In his capacity as President and Chief Executive Officer of the Company, Executive will
report directly to the Board. At the first meeting of the Board after the Effective Date, the Company will designate Executive as a “Global Partner” of the AMVESCAP Group, a designation which is used throughout the AMVESCAP Group to refer
to the most senior group of officers and employees (“Global Partners”). Executive will execute a Global Partner Agreement in the form attached hereto as Appendix B (the “Global Partner Agreement”) concurrent with the
execution of this Agreement. In the event of any inconsistency between this Agreement and the Global Partner Agreement during the Employment Period, the terms of this Agreement will govern. 
 3. Directorship. The Company will cause Executive to be appointed to the Board promptly following the Employment Date and shall nominate and
recommend to the shareholders of the Company that Executive be elected to the Board at the Company’s annual meeting of shareholders next following the Employment Date. 
 4. Employment Period. Unless earlier terminated herein in accordance with Section 7 hereof, Executive’s employment hereunder shall be
for a four-year term, commencing on 

 August 1, 2005 (the “Employment Date”), subject to Section 11 of this Agreement (the “Initial
Employment Period”). Provided, however, that the term of employment shall be automatically extended beyond the Initial Term, subject to the same terms, conditions and limitations as provided herein, for an additional one year period on the
fourth anniversary of the Employment Date and on each such anniversary date thereafter (each, an “Additional Term”) unless, not later than 90 days prior to any such anniversary, either party to this Agreement shall have given written
notice to the other that Executive’s employment under this Agreement shall not be extended or further extended. The Initial Employment Period and the Additional Terms, if any, are hereinafter collectively referred to as the “Employment
Period.” 
 5. Extent of Service. During the Employment Period, and excluding any periods of vacation and sick leave to which
Executive is entitled, Executive agrees to devote his business time, attention, skill and efforts exclusively to the faithful performance of his duties hereunder; provided, however, that it shall not be a violation of this Agreement for Executive to
(i) devote reasonable periods of time to charitable and community activities and, with the approval of the Board, industry or professional activities, and/or (ii) manage personal business interests and investments, so long as such
activities do not interfere with the performance of Executive’s responsibilities under this Agreement or the Global Partner Agreement. It is expressly understood and agreed that the continued conduct by Executive of such activities, as listed
on Appendix C, shall not thereafter be deemed to interfere with the performance of Executive’s responsibilities hereunder. 
 6.
Compensation and Benefits. 
 (a) Base Salary. During the Employment Period, the Company will pay to Executive base salary at
the rate of U.S. $790,000 per year (“Base Salary”), less normal withholdings, payable in equal monthly or more frequent installments as are customary under the Company’s payroll practices from time to time. 
 (b) Compensation. During the Employment Period, Executive shall be eligible to participate in the Global Partner program. Without limiting the
foregoing, the following shall apply: 
 (i) Make-Whole Compensation. Promptly following the Employment Date, Executive shall receive
in one lump sum payment a make-whole of U.S. $11,750,000 (the “Make-Whole Payment”), to compensate Executive for all compensation forfeited or foregone under and in connection with his prior employment. Notwithstanding the foregoing, if
Executive voluntarily terminates his employment hereunder for other than Good Reason (as defined in Section 7(c) below) prior to the first anniversary of the Employment Date, then Executive shall repay the entire Make-Whole Payment to the
Company within 30 days after Executive’s Date of Termination (as defined in Section 7(e) below). 
 (ii) Short-Term
Compensation. During the Employment Period, Executive will have the opportunity, based on the achievement of certain performance criteria, as mutually determined by the Remuneration Committee of the Company and Executive, to receive annual
short-term compensation awards having a maximum value of U.S. $4,750,000 per year (the “Reference Bonus”) “appropriately pro-rated for any periods consisting of less than a full year. 

 (iii) Long-Term Compensation. Executive will receive long-term compensation awards consisting of
each of the following awards: 
 (A) A grant of 2,500,000 restricted ordinary shares of the Company. Such restricted shares
shall vest as to one-fourth (625,000 shares) of the underlying shares on each of the first four anniversaries after the grant date; provided that Executive remains an employee of the Company on such dates. Such restricted shares will be issued
pursuant to, and shall be subject to the terms and conditions of, the AMVESCAP Global Stock Plan (the “Stock Plan”) in effect at the time of grant. If a Change in Control, as defined under the Stock Plan, shall have occurred while any such
award remains outstanding and unvested, such award will vest in full. 
 (B) A grant of 2,500,000 restricted ordinary shares
of the Company. Such restricted shares shall vest as to all or a portion of the shares awarded upon the attainment of cumulative earnings per share targets reflecting a compound growth rate of between 10% and 15% per annum during a three year
period (using as a base earnings per share amount the average earnings per share for 2004 and 2005). Such restricted shares will be issued pursuant to, and shall be subject to the terms and conditions of, the Stock Plan in effect at the time of
grant. If a Change in Control, as defined under the Stock Plan, shall have occurred while any such award remains outstanding and unvested, such award will vest in full. 
 (c) Benefits. 
 (i) Incentive, Savings and Retirement Plans. During the Employment Period,
Executive shall be eligible to participate in all incentive, savings and retirement plans that are tax-qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and in all plans that are
supplemental to any such tax-qualified plans, in each case to the extent that such plans are applicable generally to other Global Partners based in the United States (the “US Global Partners”) and subject to the terms and conditions
thereof. 
 (ii) Executive Deferred Compensation. During the Employment Period, Executive will be eligible to participate in all
aspects of the Company’s deferred compensation program, including the deferral of salary, bonuses and other incentives, as in effect at any time during the Employment Period, as provided generally to other US Global Partners, and subject to the
terms and conditions thereof. 
 (iii) Welfare Benefit Plans. During the Employment Period, Executive and/or Executive’s spouse
and dependant(s), as the case may be, shall be eligible for participation under all welfare benefit plans, practices, policies and programs provided by the Company (including, without limitation, medical, prescription, dental, vision, disability,
salary 

 continuance, group life and supplemental group life, accidental death and travel accident insurance plans and programs)
to the extent applicable generally to other US Global Partners, and subject to the terms and conditions thereof. 
 (iv) Fringe Benefits
and Perquisites. During the Employment Period, Executive shall be eligible to receive fringe benefits and perquisites provided generally to other US Global Partners. 
 (v) Vacation. During the Employment Period, Executive shall be entitled to paid vacation in accordance with the plans, policies, programs and practices of the Company provided generally to other US Global
Partners. 
 (vi) Relocation Expenses. The Company shall pay all of the following expenses reasonably incurred by Executive in
connection with Executive’s (and his family’s) relocation of his principal residence from Hillsborough, California to Georgia: (a) moving, storage, shipping, packing and unpacking of Executive’s (and his family’s) household
furnishings and belongings; (b) up to three house-hunting trips, if necessary, for Executive’s spouse (and his children) to Georgia for the purpose of assisting Executive in locating and obtaining a new principle residence in Georgia; and
(c) temporary housing expenses for Executive (but not beyond six months after the Employment Date) of up to a maximum of $5,000 per month, including food, lodging and other incidental living expenses (“Relocation Expenses”).

 To the maximum extent possible, all Relocation Expenses shall be made by the Company directly to the persons or entities providing goods or services.
Executive shall be required to obtain and submit to the Company receipts and/or other documentation, reasonably satisfactory to the Company, to evidence all relocation expenses. 
 (vii) Business Expenses. During the Employment Period, Executive shall be entitled to receive prompt reimbursement for all reasonable expenses
incurred by Executive in accordance with the policies, practices and procedures of the Company applicable generally to other US Global Partners. 
 7. Termination of Employment. 
 (a) Death or Disability. Executive’s employment hereunder shall terminate
automatically upon Executive’s death during the Employment Period. If the Company determines in good faith that the Disability of Executive has occurred during the Employment Period (pursuant to the definition of Disability set forth below), it
may give to Executive written notice of its intention to terminate Executive’s employment hereunder. In such event, Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such written notice by
Executive (the “Disability Effective Date”), provided that, within the 30 days after such receipt, Executive shall not have returned to full-time performance of Executive’s duties. For purposes of this Agreement,
“Disability” shall mean the inability of Executive, as determined by the Board in good faith, to perform the essential functions of his regular duties and responsibilities, with reasonable accommodation, due to a medically determinable
physical or mental illness which has lasted (or can reasonably be expected to last) for a period of one hundred eighty (180) days in any twelve-month period. At the request of 

 Executive or his personal representative, the Board’s determination that the Disability of Executive has occurred
shall be certified by two physicians mutually agreed upon by Executive or his personal representative, and the Company. In the event that such independent certification (if so requested by Executive) does not support the Board’s determination
that Executive is Disabled pursuant to the terms of this Agreement, Executive’s termination shall be deemed a termination by the Company without Cause and not a termination by reason of his Disability. 
 (b) Termination by the Company. The Company may terminate Executive’s employment hereunder during the Employment Period with or without
Cause. For purposes of this Agreement, “Cause” shall mean: 
 (i) the willful and continued failure of Executive to perform
substantially Executive’s duties with the Company (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to Executive by the Remuneration
Committee of the Board of Directors of the Company which specifically identifies the manner in which such Committee believes that Executive has not substantially performed Executive’s duties, or 
 (ii) the willful engaging by Executive in illegal conduct or gross misconduct which is materially injurious to the Company, including, without
limitation, any conviction of, or plea of nolo contendere to, a crime that constitutes a felony, or 
 (iii) the willful and continued
material violation of written Company policies or procedures by Executive, after a written demand for substantial compliance with such policies or procedures is delivered to Executive by the Remuneration Committee of the Board of Directors of the
Company which specifically identifies the manner in which such Committee believes that Executive has not substantially complied with the same, or 
 (iv) Executive’s bankruptcy or insolvency; or 
 (v) any act or omission by Executive which could lead to his being
prohibited, pursuant to Section 9 of the Investment Company Act of 1940, from serving in the capacity provided for in this Agreement. 
 For purposes of this provision, no act or failure to act, on the part of Executive, shall be considered “willful” unless it is done, or omitted to be done, by Executive in bad faith or without reasonable belief that
Executive’s action or omission was legal, proper, and in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the
Company shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best interests of the Company. The cessation of employment of Executive shall not be deemed to be for Cause unless and until there shall
have been delivered to Executive a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board of the Company at a meeting of such Board called and held for such purpose (after
reasonable notice is provided to Executive and Executive is given an opportunity, together with counsel, to be heard before such Board), finding that, in the good faith opinion of such Board, Executive is guilty of the conduct giving rise to Cause
as defined above, and specifying the particulars thereof in detail. 

 (c) Termination by Executive. Executive’s employment may be terminated by Executive for Good
Reason or no reason; provided however, that, notwithstanding any other provision contained herein to the contrary, if Executive terminates employment hereunder without Good Reason, Executive shall comply with the notice provisions set forth in
Section 3.A. of the Global Partner Agreement. For purposes of this Agreement, “Good Reason” shall mean any of the following events occurring during the Employment Period: 
 (i) without the written consent of Executive, the assignment to Executive of any duties inconsistent in any material respect with Executive’s
position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as in effect on the Employment Date, or any other action by the Company which results in a diminution in such position, authority, duties
or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of written notice thereof given by Executive; 
 (ii) a reduction by the Company in Executive’s Base Salary, Short-Term Compensation, or Long-Term Compensation as in effect on the Employment Date
or as the same may be increased from time to time; 
 (iii) the Company’s requiring Executive, without his consent, to be based at any
office or location other than in Atlanta, Houston, or New York City; 
 (iv) any failure by the Company to comply with and satisfy
Section 13(c) of this Agreement; or 
 (v) the failure of the Company to appoint Executive to the Board of Directors of the Company
within 60 days of his Employment Date. 
 Good Reason shall not include Executive’s death or Disability. The Company shall have an
opportunity to cure any claimed event of Good Reason within 30 days after written notice from Executive. The Company shall notify Executive of the timely cure of any claimed event of Good Reason and the manner in which such cure was effected. In the
event of such cure any Notice of Termination delivered by Executive based on such claimed Good Reason shall be deemed withdrawn and shall not be effective to terminate the Agreement. 
 (d) Notice of Termination. Any termination by the Company for Cause, or by Executive for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 15(e) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination
provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated and
(iii) specifies the termination date. The failure by Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of Executive or
the Company, respectively, hereunder or preclude Executive or the Company, respectively, from asserting such fact or circumstance in enforcing Executive’s or the Company’s rights hereunder. 

 (e) Date of Termination. “Date of Termination” means (i) if Executive’s
employment is terminated other than by reason of death or Disability, the date of receipt of the Notice of Termination, or any later date specified therein, or (ii) if Executive’s employment is terminated by reason of death or Disability,
the Date of Termination will be the date of death or the Disability Effective Date, as the case may be. 
 (f) Cooperation. For the
period beginning on Executive’s Date of Termination and ending on the second anniversary thereof (the “Cooperation Period”), Executive agrees that he will cooperate with and provide assistance to the Company regarding any or all of
the following, as long as said services to be rendered by Executive shall not materially impede his ability to meet any obligations or duties he may have with his then current employer or company: (i) the transition of ongoing matters relating
to the business of the Company, as may be reasonably requested by the Company from time to time; (ii) any litigation or criminal, civil or administrative proceeding, whether currently pending or filed during the Cooperation Period, arising out
of or relating to matters about which Executive has knowledge or in which Executive may be identified or called as a witness by any party; and (iii) such other services as the Company may reasonably request. Such cooperation and assistance
includes, without limitation, attendance at meetings with Company representatives or the Company’s legal counsel (or both) upon reasonable notice and at mutually convenient times and places, provision of complete and truthful information in
response to any inquiries of the Company and/or its counsel, full disclosure and production of all documents and things that may be relevant to any such matters (regardless of any express inquiry by the Company or its counsel), and attendance as a
witness at depositions, trials or similar proceedings upon reasonable advance notice. 
 In consideration for Executive’s services
during the Cooperation Period, the Company shall pay Executive at an hourly rate of compensation commensurate with his Base Salary as of his Date of Termination for any services performed by Executive on behalf of the Company in connection with this
Section 7(f). In addition to and notwithstanding the foregoing, the Company will reimburse Executive for all out-of-pocket expenses reasonably incurred by Executive in the performance of his duties hereunder during the Cooperation Period.

 Executive shall immediately notify the Company of any formal or informal inquiry or request for information directed to Executive by any
third-party that in any way relates to Executive’s employment by the Company or any aspect of the Company’s business operation. 
 8. Obligations of the Company upon Termination. 
 (a) Termination by Executive for Good Reason; Termination by the Company
Other Than for Cause or Disability. If, during the Employment Period, the Company shall terminate Executive’s employment other than for Cause or Disability, or Executive shall terminate employment for Good Reason within a period of 90 days
after the occurrence of the event giving rise to Good Reason, then and, with respect to the payments and benefits described in clauses (ii), (iii), (iv) and (v) below, only if Executive executes, and does not revoke, a 

 General Release of all Claims in substantially the form used by the Company generally with respect to US Global Partners
terminating employment under such conditions: 
 (i) the Company shall pay to Executive in a lump sum in cash within 30 days after the Date
of Termination the sum of (1) Executive’s Base Salary through the Date of Termination to the extent not theretofore paid, (2) any accrued vacation pay to the extent not theretofore paid, and (3) unless Executive has a later
payout date required in connection with the terms of a deferral plan or agreement, any compensation previously deferred by Executive (together with any accrued interest or earnings thereon) to the extent not theretofore paid (the sum of the amounts
described in clauses (1), (2) and (3) shall be hereinafter referred to as the “Accrued Obligations”); and 
 (ii) the
Company shall pay to the Executive in a lump sum in cash within 30 days after the Date of Termination the product of (x) three, and (y) the sum of (A) the Base Salary, and (B) the Reference Bonus; and 
 (iii) effective as of the Date of Termination, (1) immediate vesting and exercisability of, and termination of any restrictions on sale or transfer
(other than any such restriction arising by operation of law) with respect to, each and every stock option, restricted share award, restricted share unit award and other equity-based award and performance award issued to Executive by the Company and
outstanding as of the Date of Termination; and 
 (iv) continuation of medical benefits in effect as of the Date of Termination for
Executive and his covered dependents for a period of 18 months following the date of termination at the Company’s sole expense and for a period of eighteen (18) months after the expiration of such coverage period, Executive shall have the
right to elect continuation of health care coverage under the Company’s group health plan in accordance with “COBRA,” and the Company shall reimburse Executive for all premiums for such COBRA coverage for Executive and his covered
dependents. The obligation of the Company to pay the cost for such COBRA coverage shall terminate upon Executive’s obtaining other employment if health care coverage is provided by the new employer; and 
 (v) the Company shall pay to the Executive in a lump sum in cash within 30 days after the Date of Termination the product of (x) the
Executive’s Reference Bonus and (y) a fraction, the numerator of which is the number of days in the calendar year in which the Date of Termination occurs through the Date of Termination, and the denominator of which is 365 (the
“Prorated Bonus”); and 
 (vi) to the extent not theretofore paid or provided, the Company shall timely pay or provide to
Executive any other vested amounts or benefits required to be paid or provided or which Executive is entitled to receive under any plan, program, policy or practice of the Company that is applicable to Executive by its terms (such other amounts and
benefits shall be hereinafter referred to as the “Other Benefits”). 
 Notwithstanding any provision to the contrary contained herein or otherwise,
the Company’s obligation to continue to provide any of the benefits described above shall immediately cease and shall be permanently forfeited, if it is determined by a Court of competent jurisdiction that Executive has breached any of the
restrictive covenants contained in Sections 4, 5, 6, or 7 of the Global Partner Agreement. 

 (b) Death. If Executive’s employment is terminated by reason of Executive’s death during
the Employment Period, the Company shall provide payment of Accrued Obligations, the Prorated Bonus and the timely payment or provision of Other Benefits. Accrued Obligations and the Prorated Bonus shall be paid to Executive’s estate or
beneficiary, as applicable, in a lump sum in cash within 30 business days after the Date of Termination. With respect to the provision of Other Benefits, the term Other Benefits as used in this Section 8(b) shall include, without limitation,
and Executive’s estate and/or beneficiaries shall be entitled to receive, benefits under such plans, programs, practices and policies relating to death benefits, if any, as are applicable to Executive on the date of his death. 
 (c) Disability. If Executive’s employment is terminated by reason of Executive’s Disability during the Employment Period, the Company
shall provide payment of Accrued Obligations, the Prorated Bonus and the timely payment or provision of Other Benefits. Accrued Obligations and the Prorated Bonus shall be paid to Executive in a lump sum in cash within 30 business days after the
Date of Termination. With respect to the provision of Other Benefits, the term Other Benefits as used in this Section 8(c) shall include, without limitation, and Executive shall be entitled after the Disability Effective Date to receive,
disability and other benefits under such plans, programs, practices and policies relating to disability, if any, as are applicable to Executive and his covered dependents on the Date of Termination. 
 (d) Cause or Voluntary Termination without Good Reason. If Executive’s employment shall be terminated for Cause during the Employment Period,
or if Executive voluntarily terminates employment during the Employment Period without Good Reason, Executive’s employment under this Agreement shall terminate without further obligations to Executive, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits. 
 (e) Indemnification. During the Employment Period, Executive
will have the same director and officer liability insurance coverage as is provided generally to other US Global Partners and directors and shall be subject to the indemnity provisions of the Company’s Articles of Association, which the Company
intends to be the widest indemnity permitted under UK law. 
 9. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or
limit Executive’s continuing or future participation in any employee benefit plan, program, policy or practice provided by the Company and for which Executive may qualify, except as specifically provided herein. Amounts which are vested
benefits or which Executive is otherwise entitled to receive under any plan, policy, practice or program of the Company at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program, except as
explicitly modified by this Agreement. 
 10. Certain Additional Payments by the Company. 
 Anything in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any Payment would be
subject to the Excise 

 Tax, then Executive shall be entitled to receive an additional payment (the “Gross-Up Payment”) in an amount
such that, after payment by Executive of all taxes (and any interest or penalties imposed with respect to such taxes), including, without limitation, any income and employment taxes (and any interest and penalties imposed with respect thereto), and
Excise Tax imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. The Company’s obligation to make the Gross-Up Payment under this Section 10 shall not be
conditioned upon Executive’s termination of employment. 
 Subject to the provisions of this Section 10, all determinations
required to be made under this Section 10, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by such nationally
recognized certified public accounting firm as may be designated by the Company (the “Accounting Firm”). The Accounting Firm shall provide detailed supporting calculations both to the Company and Executive within 15 business days of the
receipt of notice from Executive or the Company that there has been a Payment, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group
effecting the Change of Control or the Accounting Firm declines or is unable to serve, Executive may appoint another nationally recognized certified public accounting firm to make the determinations required hereunder (which accounting firm shall
then be referred to as the Accounting Firm hereunder). The Accounting Firm shall furnish Executive with a written opinion (“Opinion”) that reporting an amount of Excise Tax or the failure to report the Excise Tax on Executive’s
applicable federal income tax return would not result in the imposition of negligence or similar penalty. Any determination by the Accounting Firm shall be binding upon the Company and Executive. All fees and expenses of the Accounting Firm shall be
borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 10, shall be paid by the Company to Executive within five days of the receipt of the Accounting Firm’s determination. As a result of the uncertainty
in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made
(“Underpayment”), consistent with the calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to the provisions of this Section 10 and Executive thereafter is required to make a payment
of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of Executive. 
 Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company
of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten business days after Executive actually receives notice in writing of such claim and shall apprise the Company of the nature of such claim and the
date on which such claim is requested to be paid; provided, however, that the failure of Executive to notify the Company of such claim (or to provide any required information with respect thereto) shall not affect any rights granted to Executive
under this Section 10 except to the extent the Company is materially prejudiced in the defense of such claim as a direct result of such failure. Executive shall not pay such claim prior to the expiration of the 30-day period following the date
on which it gives such notice to the 

 Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the
Company notifies Executive in writing prior to the expiration of such period that the Company desires to contest such claim, Executive shall: 
 (a) give the Company any information reasonably requested by the Company relating to such claim; 
 (b) take such action in
connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Company and
reasonably acceptable to Executive; 
 (c) cooperate with the Company in good faith in order to effectively contest such claim; and

 (d) permit the Company to participate in any proceedings relating to such claim; 
 provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with
such contest and shall indemnify and hold Executive harmless, on an after-tax basis, for any Excise Tax, employment tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of
costs and expenses. Without limitation of the foregoing provisions of this Section 10, the Company shall control all proceedings taken in connection with such contest and, at its sole discretion, may pursue or forgo any and all administrative
appeals, proceedings, hearings and conferences with the applicable taxing authority in respect of such claim and may, at its sole discretion, either direct Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible
manner, and Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that, if
the Company directs Executive to pay such claim and sue for a refund, the Company shall provide the amount of such payment to Executive as an additional payment (“Supplemental Payment”) (subject to possible repayment as provided in the
next paragraph) and shall indemnify and hold Executive harmless, on an after-tax basis, from any Excise Tax, employment tax or income tax (including interest or penalties with respect thereto) imposed with respect to such payment or with respect to
any imputed income with respect thereto; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of Executive with respect to which such contested amount is claimed to be due is limited
solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment or Supplemental Payment would be payable hereunder and Executive shall be entitled to settle
or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
 If, after the
receipt by Executive of an amount provided by the Company pursuant to the foregoing provisions of this Section 10, Executive becomes entitled to receive any refund with respect to such claim, Executive shall (subject to the Company complying
with the requirements of this Section 10) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). 

 Notwithstanding any other provision of this Section 10, the Company may, in its sole discretion,
withhold and paid to the Internal Revenue Service or any other applicable taxing authority, for the benefit of Executive, all or any portion of the Gross-Up Payment or Supplemental Payment, and Executive hereby consents to such withholding.

 The following terms shall have the following meanings for purposes of this Section 10. 
 (i) “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, together with any interest or penalties
imposed with respect to such excise tax. 
 (ii) A “Payment” shall mean any payment or distribution in the nature of
compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of Executive, whether paid or payable pursuant to this Agreement or otherwise. 
 11. Representations and Warranties. Executive hereby represents and warrants to the Company that Executive is not a party to, or otherwise subject
to, any covenant not to compete, or covenant not to solicit customers or clients, with any person or entity, and Executive’s execution of this Agreement and performance of his obligations hereunder will not violate the terms or conditions of
any contract or obligation, written or oral, between Executive and any other person or entity. 
 12. Restrictions on Conduct of
Executive. The Company and Executive specifically acknowledge that Executive shall be required to comply with the provisions of Sections 4, 5, 6, and 7 of the Global Partner Agreement. 
 13. Assignment and Successors. 
 (a)
This Agreement is personal to Executive and without the prior written consent of the Company shall not be assignable by Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be
enforceable by Executive’s legal representatives. 
 (b) This Agreement shall inure to the benefit of and be binding upon the Company
and its successors and assigns. 
 (c) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise. 

 14. Full Settlement; Resolution of Disputes. 
 (a) The Company agrees to pay promptly as incurred, to the fullest extent permitted by law, all legal fees and expenses that Executive may reasonably
incur as a result of any contest by the Company, Executive or others as to the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by
Executive about the amount of any such payment pursuant to this Agreement), but only if Executive is the prevailing party on at least one material issue raised in the enforcement proceeding. 
 15. Miscellaneous. 
 (a)
Waiver. Failure of either party to insist, in one or more instances, on performance by the other in strict accordance with the terms and conditions of this Agreement shall not be deemed a waiver or relinquishment of any right granted in this
Agreement or of the future performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver is contained in a writing signed by the party making the waiver. 
 (b) Severability. If any provision or covenant, or any part thereof, of this Agreement should be held by any court to be invalid, illegal or
unenforceable, either in whole or in part, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of the remaining provisions or covenants, or any part thereof, of this Agreement, all of which shall
remain in full force and effect. 
 (c) Entire Agreement. Except as provided herein, this Agreement and the Global Partner Agreement
contain the entire agreement between the Company and Executive with respect to the subject matter hereof and, from and after the Effective Date, this Agreement and the Global Partner Agreement shall supersede in their entirety any other agreement
between the parties with respect to the subject matter hereof, including without limitation, the letter from Charles W. Brady to you dated as of June 18, 2005. 
 (d) Governing Law. Except to the extent preempted by federal law, and without regard to conflict of laws principles, the laws of the State of Georgia shall govern this Agreement in all respects, whether as to
its validity, construction, capacity, performance or otherwise. 
 (e) Notices. All notices, requests, demands and other
communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given if delivered or three days after mailing if mailed, first class, certified mail, postage prepaid: 
  

			
	To Company:	 	AMVESCAP PLC
		 	1315 Peachtree Street NE
		 	Suite 500
		 	Atlanta, GA 30309
		 	Attention: Erick Holt, Esq.
		
	with a copy to:	 	Stephen W. Skonieczny, Esq.
		 	Dechert LLP
	 	 	30 Rockefeller Plaza
		 	New York, New York 10112

			
	To Executive:	 	Mr. Martin L. Flanagan
		 	650 Brewer Drive
		 	Hillsborough, CA 94010
		
	with a copy to:	 	Adam D. Chinn, Esq.
		 	Wachtell, Lipton, Rosen & Katz
		 	51 West 52nd Street
		 	New York, New York

 Any party may change the address to which notices, requests, demands and other communications shall be delivered
or mailed by giving notice thereof to the other party in the same manner provided herein. 
 (f) Amendments and Modifications. This
Agreement may be amended or modified only by a writing signed by both parties hereto, which makes specific reference to this Agreement. 
 (g) Construction. Each party and his or its counsel have reviewed this Agreement and have been provided the opportunity to revise this Agreement and accordingly, the normal rule of construction to the effect that any ambiguities are
to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. Instead, the language of all parts of this Agreement shall be construed as a whole, and according to its fair meaning, and not strictly for or
against either party. 
 (h) Code Section 409A Compliance. To the extent necessary to comply with Code Section 409A and such
regulations and provisions, any payments subject thereto shall commence six months after Executive’s termination of employment. 
 (i)
Incorporation of Certain Sections of the Global Partner Agreement. Sections 4, 5, 6, and 7 of the Global Partner Agreement are hereby incorporated by reference in their entirety into the Agreement. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

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

			
	 AMVESCAP PLC

		
	 By:
	 	 /s/ Charles W. Brady

	 Name:
	 	 Charles W. Brady

	 Title:
	 	 Chairman

	 Dated:
	 	 July 28, 2005

	
	 EXECUTIVE:

	
	 /s/ Martin L. Flanagan

	 Martin L. Flanagan

	 Dated: July 28, 2005

 APPENDIX A 
 Terms of Reference 
 Corporate Governance 
 Terms of Reference for the Chief Executive Officer 
 Authority and Reporting 
  

	 	1.	The Chief Executive Officer (“CEO”) is generally responsible for managing the business of AMVESCAP PLC and its subsidiaries (collectively, the “Company”) and is
accountable to and reports to the Board of Directors (the “Board”) of the Company with regard thereto. 

  

	 	2.	The CEO has general supervision of the business of the Company and is responsible for all executive management matters affecting the Company. All members of executive management
report, either directly or indirectly, to him. 

 Key Responsibilities 
  

	 	3.	The CEO is responsible for conducting the affairs of the Company with the highest standards of integrity and probity and in compliance with all applicable laws, principles and rules
of corporate governance, including the Company’s Articles of Association, its Corporate Governance Manual and the resolutions of the Board, as the same shall be in effect from time to time. 

  

	 	4.	The CEO is responsible for proposing and developing the Company’s strategy and overall commercial objectives, which he does in close consultation with the Executive Management
Committee, the Chairman of the Board of Directors (the “Chairman”) and the Board. 

  

	 	5.	The CEO is responsible for ensuring that the Company has in place all necessary financial, operational and compliance controls and risk management systems. 

 

	 	6.	The CEO is responsible - with the senior management team including the Executive Management Committee - for implementing the decisions of the Board and its committees.

 Additional Responsibilities 
 Further, the CEO is responsible for: 
  

	 	7.	Providing input to the Board’s agenda from himself and other members of senior management; 

  

	 	8.	Ensuring that he communicates with the Chairman on the important and strategic issues facing the Company, and proposing Board agendas to the Chairman which reflect these;

  

	 	9.	Ensuring that the senior management team gives appropriate priority to providing reports to him and, where required, the Board which contain accurate, timely and clear information;

  

	 	10.	Ensuring, in consultation with the Chairman and the Company Secretary as appropriate, that he and the other members of senior management comply with the Board’s approved
procedures, including the schedule of Matters Reserved to the Board for its decision and the provisions of each Board committee’s respective Terms of Reference; 

  

	 	11.	Providing information and advice on succession planning to the Chairman, the Nomination and Corporate Governance Committee and other members of the Board, in respect of executive
directors and other members of senior management; 

  

	 	12.	Leading the communication programme with shareholders; 

  

	 	13.	Ensuring that the development needs of the executive directors and other members of senior management reporting to him are identified and met; 

	 	14.	Ensuring that performance reviews for each of the executive directors and other members of senior management are carried out at least once a year and providing input to the wider
Board evaluation process; and 

  

	 	15.	Performing such other duties and exercising such other powers as from time to time may be assigned to him by the Board. 

 APPENDIX B 
 Global Partner Agreement 

 APPENDIX B 
 Global Partner Agreement 
 Mr. Martin L. Flanagan 
 650 Brewer Drive 
 Hillsborough, CA 94010 
 Dear Marty: 
 AMVESCAP plc (the “Company”), wishes to employ you as a Global Partner under the terms and conditions set forth in this letter. The term “Global Partner” is used throughout the AMVESCAP Group to
refer to the most senior group of officers and employees. The purpose of this letter is to articulate the terms and conditions of your employment as a Global Partner. 
 It is important to note at the outset that the Company considers you an important part of its continued success. Further, please note that under the terms of this letter agreement, which is a binding contract, neither
the Company nor you have any right to terminate the Global Partner employment relationship except as set forth below. 
 Also, in the event
of any inconsistency between this Agreement and the Employment Agreement with the Company dated as of July 28, 2005 (the “Employment Agreement”) during the “Employment Period,” as such term is defined in the Employment
Agreement, the terms of the Employment Agreement will govern. 
 1. Duties Of Employment 
 You agree to perform the duties assigned to you by the Company as President and Chief Executive Officer. You understand and agree that during your
employment relationship with the Company, you are not allowed, without proper prior approval, to perform any business activities for any person or entity other than the Company or another company that is part of the AMVESCAP Group. Of course, if you
obtain the Company’s prior written approval, you may perform other business activities. 
 It is your obligation to comply with all
Company policies and procedures, including those set forth in any Code of Ethics and other materials distributed by the Company to its employees. Further, you agree to comply with all applicable rules and regulations that pertain to the
Company’s business. 
 As a Global Partner you have important duties to the Company: the duty to refrain from dealing in your self
interest above that of the Company’s, the duty to disclose any information that indicates that you may be exposed to a conflict of interests, the duty of loyalty, and the duty to refrain from using the Company’s business opportunities for
your own benefit. These fiduciary obligations and others arise because of the unique trust and confidence the Company places in you as a Global Partner. 

 2. Compensation 
 Your annual salary will be determined by the Remuneration Committee of the AMVESCAP Board. You will also be eligible to receive certain bonuses, options and stock awards as approved from time to time by the Board.

 3. Term 
 The term of
your Global Partner employment relationship with the Company hereunder shall be for one year from the date of your signature on this letter. This term will automatically renew at the end of the initial term for another year and will continue to
renew every year, unless your employment is terminated in a manner specified below. In no event will the term of your employment relationship with the Company hereunder be less than the unexpired period of any notice of intent to terminate given as
set forth below. Your employment hereunder can only be terminated as specifically set forth below. 
 A. Termination Effective After
Expiration of Notice Period 
 Subject to earlier termination under Section 3.B, 3.C or 3.D below, either you or the Company may
terminate the employment relationship at any time during the initial term or any renewal, upon 6 months written notice to the other party. Whether you or the Company give the notice of termination, your employment will continue for the entire notice
period. The effective date of the termination of the employment relationship will be the last day of the notice period. 
 B. Termination
by Mutual Agreement 
 You and the Company can, effective immediately, terminate the employment relationship without cause or notice, but
such a mutual termination will only be effective if you and the Company both agree to the termination in writing. Such an agreement must be signed by a duly authorized member of the Remuneration Committee of the Company to be effective. 

C. Termination with Cause 
 Your
employment shall be terminated for Cause effective immediately upon written notice if the Company has terminated your employment for “Cause” under your Employment Agreement, as that term is defined under the Employment Agreement.

 You may terminate your employment effective immediately if the Company, after written notice, has engaged in any continuing violation of
this letter agreement and has not cured such violation within a reasonable period of time. 

 D. Termination Due to Death or Disability 
 In the event of your death, or disability to the extent that you cannot perform the essential functions of your position with reasonable accommodation,
your employment will be terminated effective on the last day of the month that such death or disability occurs. We mutually recognize that the Company has a disability plan that is separate from this letter agreement. 
 4. Confidential Information 
 A
critical aspect of your position is your access to trade secret, proprietary, and confidential information. For example, your knowledge of the exact amounts and holdings of Company-related investment positions is confidential. While some of that
information may eventually be made public, the information is extremely sensitive and is to be treated as confidential until it is released. Likewise, computer models and programs developed by the Company or purchased by it are proprietary and
confidential. Other information the Company possesses as trade secrets or confidential information include (without limitation) its marketing strategies, marketing plans, compensation arrangements, benefit plans, and ideas and inventions of its
employees. 
 These are simply examples of the types of information the Company considers trade secret and/or confidential. As time passes,
the Company will no doubt develop new categories of information it considers trade secrets and/or confidential. As this occurs, the Company will identify such new categories of information and remind you of your obligation to treat it as
confidential. The importance of all of the types of information identified here is that the Company’s competitors do not have permitted access to this information and are thus unable to use it to compete with the Company. Accordingly, these
types of information create a competitive advantage for the Company and are economically valuable. Thus, you agree not to disclose or use any of the Company’s trade secret and/or confidential information for your own benefit or the benefit of
anyone other than the Company, during your employment and after the effective date of the termination of your employment relationship with the Company. 
 5. Company Employees And Customers 
 You agree that, in the event of the termination of the employment
relationship between you and the Company, you will not solicit or hire any Company employees for a period of six (6) months after the effective date of the termination of your employment relationship with the Company. Further, you agree that
you will not solicit the business relationships you developed or acquired while working for the Company or another company affiliated with the AMVESCAP Group for a period of six (6) months after the effective date of the termination of your
employment. 
 6. Inventions And Ideas 
 Since the Company is paying you for your time and efforts, you agree that all information, ideas, and inventions you develop while employed by the Company related in any way to the Company’s business, are the
sole property of the Company. This includes all investment models, processes, and methodologies you develop while employed by the Company. 

 Indeed, one of the reasons for your employment is the creation of such ideas. This information is confidential and trade
secret information as discussed above. You understand that the Company may seek to patent or to obtain trademark or copyright protection related to such information, ideas, and inventions, and that, if necessary, you will assign any interest you may
have in such information, ideas, and inventions you develop to the Company. 
 7. Return of Company Property 
 Upon the termination of your employment, you agree to return all property of the Company. To the extent such property is information of which you have
detailed knowledge but no electronic or other documents containing such information, you agree to itemize such information in writing for the Company prior to the effective date of the termination of your employment. 
 8. Assignment 
 You agree that this
letter agreement may be assigned to any other entities in the AMVESCAP Group, and/or to any successor company by acquisition of either the Company’s stock or its assets. In the case of such an assignment by the Company, you understand and agree
that you would continue to be bound by this letter agreement. 
 9. Choice of Law and Forum 
 We agree that, in the event of a disagreement between you and the Company about any aspect of your employment with the Company or this letter agreement,
Georgia law will govern any litigation or proceeding brought by either party. You also agree that any litigation or proceeding shall be brought in Fulton County, Georgia, in either state or federal court, as appropriate. 
 10. Notice 
 We agree that any notice
that is to be given under this letter agreement is properly given when delivered in person, by certified mail (return receipt requested), or by over night delivery such as Federal Express. 
 11. Entire Agreement 
 Except as
provided herein, this Agreement and the Employment Agreement contain the entire agreement between you and the Company with respect to the subject matter hereof and, from and after the date hereof, this Agreement and the Employment Agreement shall
supersede in their entirety any other agreement between the parties with respect to the subject matter hereof. 
 [REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK] 

			
	AMVESCAP PLC
		
	By:	 	 /s/ Charles W. Brady

		 	Charles W. Brady
	
	Dated: July 28, 2005
	
	Martin L. Flanagan
	
	 /s/ Martin L. Flanagan

	Martin L. Flanagan
	Global Partner
	
	Dated: July 28, 2005

 APPENDIX C 
 Current Approved Activities 
 July 22, 2005 
  

	I.	ICI – Board of Governors; Executive Committee and Chairman 

  

	II.	SMU – Cox School of Business; Executive Board 

  

	III.	Sacred Heart Schools – Member, Board of Trustees and Investment Committee (*) 

  

	IV.	San Francisco Opera; Member of Board and of Investment Committee (*) 

  

	V.	Marketron, Inc. (Private Company), Member of the Board (*) 

  

	(*)	Will resignThird Amended and Restated Certificate of Incorporation

 Exhibit 4.1 
 THIRD AMENDED AND RESTATED 
 CERTIFICATE OF INCORPORATION 
 OF 
 RED HAT, INC. 
  

 Pursuant to Sections 228, 242 and 245
of the 
 General Corporation Law of the State of Delaware 
  

 Red Hat, Inc. (the “Corporation”), a corporation organized and existing under the General
Corporation Law of the State of Delaware, does hereby certify as follows: 
 1. The name of the Corporation is Red Hat, Inc. The Corporation
was originally incorporated under the name Red Hat Software, Inc. The original certificate of incorporation of the Corporation was filed with the office of the Secretary of State of Delaware on September 17, 1998. An amended and restated
certificate of incorporation of the Corporation was filed with the office of the Secretary of State of Delaware on September 29, 1998. A Second Amended and Restated Certificate was filed with the office of the Secretary of the State of Delaware
on February 24, 1999, and amended on March 31, 1999 and June 4, 1999. 
 2. This Third Amended and Restated Certificate of
Incorporation was recommended to the stockholders for approval as being advisable and in the best interests of the Corporation by written action of the Board of Directors on June 2, 1999. 
 3. That in lieu of a meeting and vote of stockholders, consents in writing have been signed by holders of outstanding stock having not less than the
minimum number of votes that is necessary to consent to this amendment and restatement, and, if required, prompt notice of such action shall be given in accordance with the provisions of Section 228 of the General Corporation Law of the State
of Delaware. 
 4. This Third Amended and Restated Certificate of Incorporation restates and integrates and further amends the certificate of
incorporation of the Corporation, as heretofore amended or supplemented. 
 The text of the Corporation’s second amended and restated
certificate of incorporation is amended and restated in its entirety as follows: 
 FIRST. The name of the Corporation is Red Hat, Inc.

 SECOND. The address of the registered office of the Corporation in the State of Delaware is 1209 Orange Street, Wilmington, County of New
Castle, Delaware 19801. The name of its registered agent at such address is The Corporation Trust Company. 

 THIRD. The nature of the business or purposes to be conducted or promoted is to engage in any lawful act
or activity for which corporations may be organized under the General Corporation Law of the State of Delaware. 
 FOURTH. The total number
of shares of all classes of capital stock which the Corporation shall have authority to issue is 246,972,726 shares consisting of 225,000,000 shares of Common Stock with a par value of $.0001 per share (the “Common Stock”) and 21,972,726
shares of Preferred Stock with a par value of $.0001 per share, (the “Preferred Stock”), of which 5,000,000 are undesignated, 6,801,400 shares are designated as Series A Convertible Preferred Stock, 8,116,550 shares are designated as
Series B Convertible Preferred Stock and 2,054,776 shares are designated as Series C Convertible Preferred Stock. 
 A description of the
respective classes of stock and a statement of the designations, powers, preferences and rights, and the qualifications, limitations and restrictions of the Preferred Stock and Common Stock are as follows: 
 A. COMMON STOCK 
 1. GENERAL. All shares of
Common Stock will be identical and will entitle the holders thereof to the same rights, powers and privileges. The rights, powers and privileges of the holders of the Common Stock are subject to and qualified by the rights of holders of the
Preferred Stock. 
 2. DIVIDENDS. Dividends may be declared and paid on the Common Stock from funds lawfully available therefor as and when
determined by the Board of Directors and subject to any preferential dividend rights of any then outstanding Preferred Stock. 
 3.
DISSOLUTION, LIQUIDATION OR WINDING UP. In the event of any dissolution, liquidation or winding up of the affairs of the Corporation, whether voluntary or involuntary, each issued and outstanding share of Common Stock shall entitle the holder
thereof to receive an equal portion of the net assets of the Corporation available for distribution to the holders of Common Stock, subject to any preferential rights of any then outstanding Preferred Stock. 
 4. VOTING RIGHTS. Except as otherwise required by law or this Third Amended and Restated Certificate of Incorporation, each holder of Common Stock shall
have one vote in respect of each share of stock held of record by such holder on the books of the Corporation for the election of directors and on all matters submitted to a vote of stockholders of the Corporation. Except as otherwise required by
law or provided herein, holders of Common Stock shall vote together with holders of the Preferred Stock as a single class, subject to any special or preferential voting rights of any then outstanding Preferred Stock. There shall be no cumulative
voting. 
  

 -2- 

 B. PREFERRED STOCK 
 The Preferred Stock may be issued in one or more series at such time or times and for such consideration or considerations as the Board of Directors of the Corporation may determine. Each series shall be so designated
as to distinguish the shares thereof from the shares of all other series and classes. Except as otherwise provided in this Third Amended and Restated Certificate of Incorporation, different series of Preferred Stock shall not be construed to
constitute different classes of shares for the purpose of voting by classes. 
 C. UNDESIGNATED PREFERRED STOCK 
 The Board of Directors is expressly authorized to provide for the issuance of all or any shares of the undesignated Preferred Stock in one or more
series, each with such designations, preferences, voting powers (or special, preferential or no voting powers), relative, participating, optional or other special rights and privileges and such qualifications, limitations or restrictions thereof as
shall be stated in the resolution or resolutions adopted by the Board of Directors to create such series, and a certificate of said resolution or resolutions (a “Certificate of Designation”) shall be filed in accordance with the General
Corporation Law of the State of Delaware. The authority of the Board of Directors with respect to each such series shall include, without limitation of the foregoing, the right to provide that the shares of each such series may be: (i) subject
to redemption at such time or times and at such price or prices; (ii) entitled to receive dividends (which may be cumulative or non-cumulative) at such rates, on such conditions, and at such times, and payable in preference to, or in such
relation to, the dividends payable on any other class or classes or any other series; (iii) entitled to such rights upon the dissolution of, or upon any distribution of the assets of, the Corporation; (iv) convertible into, or exchangeable
for, shares of any other class or classes of stock, or of any other series of the same or any other class or classes of stock of the Corporation at such price or prices or at such rates of exchange and with such adjustments, if any;
(v) entitled to the benefit of such limitations, if any, on the issuance of additional shares of such series or shares of any other series of Preferred Stock; or (vi) entitled to such other preferences, powers, qualifications, rights and
privileges, all as the Board of Directors may deem advisable and as are not inconsistent with law and the provisions of this Third Amended and Restated Certificate of Incorporation. 
 D. SERIES A, SERIES B AND SERIES C CONVERTIBLE PREFERRED STOCK 
 1. DIVIDENDS. The Corporation shall not declare or pay any dividends on shares of Common Stock (except for dividends payable solely in the form of Common Stock) until the holders of the Series A Preferred Stock,
Series B Preferred Stock and Series C Preferred Stock then outstanding shall have first received, or simultaneously receive, a distribution on each outstanding share of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock
in an amount at least equal to the product of (i) the per share amount, if any, of the dividends to be declared, paid or set aside for the Common Stock, multiplied by (ii) the number of whole shares of Common Stock into which such share of
Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock is then convertible. The Corporation 

  

 -3- 

 
shall not declare or pay any dividends on any shares of Preferred Stock unless, at the same time, a dividend in a like amount per share shall be paid upon,
or declared and set apart for, all shares of Preferred Stock then outstanding. 
 2. LIQUIDATION, DISSOLUTION OR WINDING UP; CERTAIN MERGERS,
CONSOLIDATIONS AND ASSET SALES. 
 (a) In the event of any voluntary or involuntary liquidation, dissolution or winding up of
the Corporation, the holders of shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Corporation available for distribution to its
stockholders, before any payment shall be made to the holders of Common Stock or any other class or series of stock ranking on liquidation junior to the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock (such Common
Stock and other stock being collectively referred to as “Junior Stock”) by reason of their ownership thereof, an amount equal to the greater of (i) $.343 per share, in the case of Series A Preferred Stock, $.996 per share, in the case
of Series B Preferred Stock, and $3.893 per share in the case of the Series C Preferred Stock (each subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization affecting such
shares), plus any dividends declared but unpaid thereon, or (ii) such amount per share as would have been payable had each such share been converted into Common Stock pursuant to Section 4 immediately prior to such liquidation, dissolution
or winding up. If upon any such liquidation, dissolution or winding up of the Corporation the remaining assets of the Corporation available for distribution to its stockholders shall be insufficient to pay the holders of shares of Series A Preferred
Stock, Series B Preferred Stock and Series C Preferred Stock the full amount to which they shall be entitled, the holders of shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock and any class or series of stock
ranking on liquidation on a parity with the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock shall share ratably in any distribution of the remaining assets and funds of the Corporation in proportion to the respective
amounts which would otherwise be payable pursuant to clause (i) above in respect of the shares held by them upon such distribution. The Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock of the Corporation shall be
deemed to rank on a parity with each other with respect to the liquidation, dissolution or winding-up of the Corporation. 
 (b) After the payment of all preferential amounts required to be paid to the holders of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock and any other class or series of stock of the Corporation ranking on
liquidation on a parity with the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, upon the dissolution, liquidation or winding up of the Corporation, the holders of shares of Junior Stock then outstanding shall be
entitled to receive the remaining assets and funds of the Corporation available for distribution to its stockholders. 
 (c)
Any (i) merger or consolidation of the Corporation or a subsidiary of the Corporation into or with another corporation (except one in which the holders of capital stock 

  

 -4- 

 
of the Corporation immediately prior to such merger or consolidation continue to hold at least 50% by voting power of the capital stock of the Corporation or
the surviving or acquiring corporation), (ii) acquisition, in one transaction or a series of related transactions by a person or group of affiliated persons, of 50% or more of the outstanding voting stock of the Company or (iii) sale of
all or substantially all the assets of the Corporation, shall be deemed to be a liquidation of the Corporation for purposes of this Section 2 unless the holders of a majority of the then outstanding Preferred Stock elect in writing not to treat
such merger, consolidation or sale as a liquidation, and any agreement or plan of merger or consolidation to which the Company is a party shall provide that the consideration payable to the stockholders of the Corporation (in the case of a merger or
consolidation), or consideration payable to the Corporation, together with all other available assets of the Corporation (in the case of an asset sale), shall be distributed to the holders of capital stock of the Corporation in accordance with
Subsections 2(a) and 2(b) above. The amount deemed distributed to the holders of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock upon any such merger, consolidation or sale shall be the cash or the value of the
property, rights or securities distributed to such holders by the Corporation or the acquiring person, firm or other entity. The value of such property, rights or other securities shall be determined in good faith by the Board of Directors of the
Corporation. 
 3. VOTING. 
 (a) Each holder of outstanding shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock shall be entitled to the number of votes equal to the number of whole shares of Common Stock
into which the shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock held by such holder are then convertible (as adjusted from time to time pursuant to Section 4 hereof), at each meeting of stockholders of
the Corporation (and written actions of stockholders in lieu of meetings) with respect to any and all matters presented to the stockholders of the Corporation for their action or consideration. Except as provided by law, by the provisions of
Subsection 3(b) below or by the provisions establishing any other series of Preferred Stock, holders of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and any other outstanding series of Preferred Stock shall vote
together with the holders of Common Stock as a single class. 
 (b) The Corporation shall not amend, alter or repeal the
preferences, special rights or other powers of the Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock so as to affect adversely the Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock, without
the written consent or affirmative vote of the holders of a majority of the then outstanding shares of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock, as the case may be, given in writing or by vote at a meeting,
consenting or voting (as the case may be) separately as a class. For this purpose, without limiting the generality of the foregoing, the authorization of any shares of capital stock with preference or priority over the Series A Preferred Stock,
Series B Preferred Stock and Series C Preferred Stock as to the right to receive either dividends or amounts distributable upon liquidation, dissolution or winding up of the Corporation shall be deemed to affect adversely the Series A Preferred
Stock, Series B Preferred Stock or Series C Preferred Stock, 

  

 -5- 

 
and the authorization of any shares of capital stock on a parity with Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock as to
the right to receive either dividends or amounts distributable upon liquidation, dissolution or winding up of the Corporation shall not be deemed to affect adversely the Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock.

 4. OPTIONAL CONVERSION. The holders of the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock shall have
conversion rights as follows (the “Conversion Rights”): 
 (a) (i) SERIES A RIGHT TO CONVERT. Each share of
Series A Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into such number of fully paid and nonassessable shares
of Common Stock as is determined by dividing $.343 by the Series A Conversion Price (as defined below) in effect at the time of conversion. The “Series A Conversion Price” shall initially be $.343. Such initial Series A Conversion Price,
and the rate at which shares of Series A Preferred Stock may be converted into shares of Common Stock, shall be subject to adjustment as provided below. 
 (ii) SERIES B RIGHT TO CONVERT. Each share of Series B Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration
by the holder thereof, into such number of fully paid and nonassessable shares of Common Stock as is determined by dividing $.996 by the Series B Conversion Price (as defined below) in effect at the time of conversion. The “Series B Conversion
Price” shall initially be $.996. Such initial Series B Conversion Price, and the rate at which shares of Series B Preferred Stock may be converted into shares of Common Stock, shall be subject to adjustment as provided below. 
 (iii) SERIES C RIGHT TO CONVERT. Each share of Series C Preferred Stock shall be convertible, at the option of the holder thereof, at any
time and from time to time, and without the payment of additional consideration by the holder thereof, into such number of fully paid and nonassessable shares of Common Stock as is determined by dividing $3.893 by the Series C Conversion Price (as
defined below) in effect at the time of conversion. The “Series C Conversion Price” shall initially be $3.893. Such initial Series C Conversion Price, and the rate at which shares of Series C Preferred Stock may be converted into shares of
Common Stock, shall be subject to adjustment as provided below. 
 (iv) In the event of a notice of redemption of any shares
of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock pursuant to Section 6 hereof, the Conversion Rights of the shares designated for redemption shall terminate at the close of business on the fifth full day
preceding the date fixed for redemption, unless the redemption price is not paid when due, in which case the Conversion Rights for such shares shall continue until such price is paid in full. In the event of a liquidation of the Corporation, the
Conversion Rights shall terminate at the close of business on the first full day preceding 

  

 -6- 

 
the date fixed for the payment of any amounts distributable on liquidation to the holders of Series A Preferred Stock, Series B Preferred Stock and Series C
Preferred Stock. 
 (b) FRACTIONAL SHARES. No fractional shares of Common Stock shall be issued upon conversion of the Series
A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock. In lieu of any fractional shares to which the holder would otherwise be entitled, the Corporation shall pay cash equal to such fraction multiplied by the then effective Series
A Conversion Price, Series B Conversion Price or Series C Conversion Price. 
 (c) MECHANICS OF CONVERSION. 
 (i) In order for a holder of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock to convert its shares of
Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock into shares of Common Stock, such holder shall surrender the certificate or certificates for such shares of Preferred Stock, at the office of the transfer agent for the
Preferred Stock (or at the principal office of the Corporation if the Corporation serves as its own transfer agent), together with written notice (a “Conversion Notice”) that such holder elects to convert all or any number of the shares of
the Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock represented by such certificate or certificates. The Conversion Notice shall state such holder’s name or the names of the nominees in which such holder wishes
the certificate or certificates for shares of Common Stock to be issued. If required by the Corporation, certificates surrendered for conversion shall be endorsed or accompanied by a written instrument or instruments of transfer, in form
satisfactory to the Corporation, duly executed by the registered holder or his or its attorney duly authorized in writing. The date of receipt of such certificates and Conversion Notice by the transfer agent (or by the Corporation if the Corporation
serves as its own transfer agent) shall be the conversion date (“Conversion Date”). The Corporation shall, as soon as practicable after the Conversion Date, issue and deliver at such office to such holder of Series A Preferred Stock,
Series B Preferred Stock or Series C Preferred Stock, or to his or its nominees, a certificate or certificates for the number of shares of Common Stock to which such holder shall be entitled, together with cash in lieu of any fraction of a share.

 (ii) The Corporation shall at all times when the Series A Preferred Stock, Series B Preferred Stock or Series C Preferred
Stock shall be outstanding, reserve and keep available out of its authorized but unissued stock, for the purpose of effecting the conversion of the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, such number of its
duly authorized shares of Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock. Before taking any action which would cause
an adjustment reducing the Series A Conversion Price, Series B Conversion Price or Series C Conversion Price below the then par value of the shares of Common Stock issuable upon conversion of the Series A Preferred Stock, Series B Preferred Stock or
Series C Preferred Stock, the Corporation will take any corporate action which may, in the opinion of its counsel, be necessary in order that the Corporation may validly and legally issue fully paid and nonassessable shares of Common Stock at such
adjusted Series A Conversion Price, Series B 

  

 -7- 

 
Conversion Price or Series C Conversion Price. 
 (iii) Upon any such conversion, no adjustment to the Series A Conversion Price, Series B Conversion Price or Series C Conversion Price shall be made for any declared but unpaid dividends on the Series A Preferred
Stock, Series B Preferred Stock or Series C Conversion Price, as applicable, surrendered for conversion or on the Common Stock delivered upon such conversion. 
 (iv) All shares of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock which shall have been surrendered for
conversion as herein provided shall no longer be deemed to be outstanding and all rights with respect to such shares, including the rights, if any, to receive notices and to vote, shall immediately cease and terminate on the Conversion Date, except
only the right of the holders thereof to receive shares of Common Stock in exchange therefor and payment of any dividends declared but unpaid thereon. Any shares of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock so
converted shall be retired and cancelled and shall not be reissued, and the Corporation (without the need for stockholder action) may from time to time take such appropriate action as may be necessary to reduce the authorized number of shares of
Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock accordingly. 
 (v) The Corporation shall pay
any and all issue and other taxes that may be payable in respect of any issuance or delivery of shares of Common Stock upon conversion of shares of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock pursuant to this
Section 4. The Corporation shall not, however, be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of shares of Common Stock in a name other than that in which the shares of Series A
Preferred Stock, Series B Preferred Stock or Series C Preferred Stock so converted were registered, and no such issuance or delivery shall be made unless and until the person or entity requesting such issuance has paid to the Corporation the amount
of any such tax or has established, to the satisfaction of the Corporation, that such tax has been paid. 
 (d) ADJUSTMENTS TO
SERIES A CONVERSION PRICE, SERIES B CONVERSION PRICE OR SERIES C CONVERSION PRICE FOR DILUTING ISSUES: 
 (i) SPECIAL
DEFINITIONS. For purposes of this Subsection 4(d), the following definitions shall apply: 
 (A) “OPTION” shall mean
rights, options or warrants to subscribe for, purchase or otherwise acquire Common Stock or Convertible Securities. 
 (B)
“SERIES A ORIGINAL ISSUE DATE” shall mean the date on which the first share of Series A Preferred Stock was issued. 
 (C) “SERIES B ORIGINAL ISSUE DATE” shall mean the date on which the first share of Series B Preferred Stock was issued. 
  

 -8- 

 (D) “SERIES C ORIGINAL ISSUE DATE” shall mean the date on which the first share
of Series C Preferred Stock was issued. 
 (E) “CONVERTIBLE SECURITIES” shall mean any evidences of indebtedness,
shares or other securities directly or indirectly convertible into or exchangeable for Common Stock. 
 (F) “ADDITIONAL
SHARES OF COMMON STOCK” shall mean all shares of Common Stock issued (or, pursuant to Subsection 4(d)(iii) below, deemed to be issued) by the Corporation after the Series C Original Issue Date, other than: 
 (I) shares of Common Stock issued or issuable upon conversion of any shares of Series A Preferred Stock, Series B Preferred Stock or
Series C Preferred Stock; (II) shares of Common Stock issued or issuable upon conversion of any Convertible Securities (other than shares of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock) or exercise of any warrants
outstanding on the Series C Original Issue Date; 
 (III) shares of Common Stock issued or issuable as a dividend or
distribution on Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock; 
 (IV) shares of Common
Stock issued or issuable by reason of a dividend, stock split, split-up or other distribution on shares of Common Stock that is covered by Subsection 4(e) or 4(f) below; 
 (V) up to 3,717,400 shares of Common Stock (including issuances prior to the Series C Original Issue Date) (subject to appropriate
adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization affecting such shares), plus such additional number of shares of Common Stock as may be approved by the Board of Directors of the Corporation
and by a majority of the members of the Board of Directors who are not employees of the Company or any of its subsidiaries, issued or issuable to employees or directors of, or consultants to, the Corporation pursuant to employer stock option plans;

 (VI) securities issued pursuant to any equipment leasing arrangement or debt financing from a bank or similar financial
institution approved by the Board of Directors of the Corporation and by a majority of the members of the Board of Directors who are not employees of the Corporation or any of its subsidiaries; or 
 (VII) securities issued in connection with strategic transactions approved by the Board of Directors of the Corporation and by a majority
of the members of the Board of Directors who are not employees of the Corporation or any of its 

  

 -9- 

 
subsidiaries involving the Company and other entities, including (a) joint ventures, manufacturing, marketing or distribution arrangements or
(b) technology transfer or development arrangements. 
 (ii) NO ADJUSTMENT OF CONVERSION PRICE. 
 (A) No adjustment in the number of shares of Common Stock into which the Series A Preferred Stock is convertible shall be made, by
adjustment in the applicable Series A Conversion Price thereof: (a) unless the consideration per share (determined pursuant to Subsection 4(d)(v)) for an Additional Share of Common Stock issued or deemed to be issued by the Corporation is less
than the applicable Series A Conversion Price in effect immediately prior to the issue of such Additional Shares, or (b) if prior to such issuance, the Corporation receives written notice from the holders of at least 66-2/3% of the then
outstanding shares of Series A Preferred Stock agreeing that no such adjustment shall be made as the result of the issuance of Additional Shares of Common Stock. 
 (B) No adjustment in the number of shares of Common Stock into which the Series B Preferred Stock is convertible shall be made, by
adjustment in the applicable Series B Conversion Price thereof: (a) unless the consideration per share (determined pursuant to Subsection 4(d)(v)) for an Additional Share of Common Stock issued or deemed to be issued by the Corporation is less
than the applicable Series B Conversion Price in effect immediately prior to the issue of such Additional Shares, or (b) if prior to such issuance, the Corporation receives written notice from the holders of at least 66-2/3% of the then
outstanding shares of Series B Preferred Stock agreeing that no such adjustment shall be made as the result of the issuance of Additional Shares of Common Stock. 
 (C) No adjustment in the number of shares of Common Stock into which the Series C Preferred Stock is convertible shall be made, by
adjustment in the applicable Series C Conversion Price thereof: (a) unless the consideration per share (determined pursuant to Subsection 4(d)(v)) for an Additional Share of Common Stock issued or deemed to be issued by the Corporation is less
than the applicable Series C Conversion Price in effect immediately prior to the issue of such Additional Shares, or (b) if prior to such issuance, the Corporation receives written notice from the holders of at least 66-2/3% of the then
outstanding shares of Series C Preferred Stock agreeing that no such adjustment shall be made as the result of the issuance of Additional Shares of Common Stock. 
  

 -10- 

 (iii) ISSUE OF SECURITIES DEEMED ISSUE OF ADDITIONAL SHARES OF COMMON STOCK. 

If the Corporation at any time or from time to time after the Series A Original Issue Date, Series B Original Issue Date or Series C Original Issue
Date, as applicable, shall issue any Options (excluding Options covered by Subsection 4(d)(i)(F)(IV) above) or Convertible Securities or shall fix a record date for the determination of holders of any class of securities entitled to receive any such
Options or Convertible Securities, then the maximum number of shares of Common Stock (as set forth in the instrument relating thereto without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the
exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be Additional Shares of Common Stock issued as of the time of such issue or, in
case such a record date shall have been fixed, as of the close of business on such record date, provided that (x) for the purposes of adjusting the Series A Conversion Price, Additional Shares of Common Stock shall not be deemed to have been
issued unless the consideration per share (determined pursuant to Subsection 4(d)(v) hereof) of such Additional Shares of Common Stock would be less than the applicable Series A Conversion Price in effect on the date of and immediately prior to such
issue, or such record date, as the case may be, (y) for the purposes of adjusting the Series B Conversion Price, Additional Shares of Common Stock shall not be deemed to have been issued unless the consideration per share (determined pursuant
to Subsection 4(d)(v) hereof) of such Additional Shares of Common Stock would be less than the applicable Series B Conversion Price in effect on the date of and immediately prior to such issue, or such record date, as the case may be, and
(z) for the purposes of adjusting the Series C Conversion Price, Additional Shares of Common Stock shall not be deemed to have been issued unless the consideration per share (determined pursuant to Subsection 4(d)(v) hereof) of such Additional
Shares of Common Stock would be less than the applicable Series C Conversion Price in effect on the date of and immediately prior to such issue, or such record date, as the case may be, and provided further that in any such case in which Additional
Shares of Common Stock are deemed to be issued: 
 (A) No further adjustment in the Series A Conversion Price, Series B
Conversion Price or Series C Conversion Price shall be made upon the subsequent issue of Convertible Securities or shares of Common Stock upon the exercise of such Options or conversion or exchange of such Convertible Securities; 
 (B) If such Options or Convertible Securities by their terms provide, with the passage of time or otherwise, for any increase or decrease
in the consideration payable to the Corporation, upon the exercise, conversion or exchange thereof, the Series A Conversion Price, Series B Conversion Price or Series C Conversion Price computed upon the original issue thereof (or upon the
occurrence of a record date with respect thereto), and any subsequent adjustments based thereon, shall, upon any such increase or decrease becoming effective, be recomputed to reflect such increase or decrease insofar as it affects such Options or
the rights of conversion or exchange under such Convertible Securities; 
  

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 (C) Upon the expiration or termination of any such unexercised Option, the Series A
Conversion Price, Series B Conversion Price and Series C Conversion Price shall be readjusted, to the Series A Conversion Price, Series B Conversion Price or Series C Conversion Price as would have been in effect at the time of such expiration or
termination had such Option never been issued; 
 (D) In the event of any change in the number of shares of Common Stock
issuable upon the exercise, conversion or exchange of any such Option or Convertible Security, including, but not limited to, a change resulting from the anti-dilution provisions thereof, the Series A Conversion Price, Series B Conversion Price and
Series C Conversion Price then in effect shall forthwith be readjusted to such Series A Conversion Price, Series B Conversion Price or Series C Conversion Price as would have obtained had the adjustment which was made upon the issuance of such
Option or Convertible Security not exercised or converted prior to such change been made upon the basis of such change; and 
 (E) No readjustment pursuant to clauses (B) or (D) above shall have the effect of increasing the Series A Conversion Price, Series B Conversion Price or Series C Conversion Price to an amount which exceeds the lower of
(i) the Series A Conversion Price, Series B Conversion Price or Series C Conversion Price on the original adjustment date, or (ii) the Series A Conversion Price, Series B Conversion Price or Series C Conversion Price, as the case may be,
that would have resulted from any issuances of Additional Shares of Common Stock between the original adjustment date and such readjustment date. 
 In the event the Corporation, after the Series A Original Issue Date, the Series B Original Issue Date or the Series C Original Issue Date, amends the terms of any such Options or Convertible Securities (whether such Options or Convertible
Securities were outstanding on such respective original issue date or were issued after such respective original issue date), then such Options or Convertible Securities, as so amended, shall be deemed to have been issued after such respective
original issue date and the provisions of this Subsection 4(d)(iii) shall apply. 
 (iv) ADJUSTMENT OF CONVERSION PRICE UPON
ISSUANCE OF ADDITIONAL SHARES OF COMMON STOCK. 
 (A) In the event the Corporation shall at any time after the Series A
Original Issue Date issue Additional Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued pursuant to Subsection 4(d)(iii), but excluding shares issued as a stock split or combination as provided in Subsection 4(e)
or upon a dividend or distribution as provided in Subsection 4(f)), without consideration or for a consideration per share less than the applicable Series A Conversion Price in effect immediately prior to such issue, then and in such event, such
Series A Conversion Price shall be reduced, concurrently with such issue, to a price (calculated to the nearest cent) determined by multiplying such Series A Conversion Price by a fraction, (A) the numerator of which shall be (1) the
number 

  

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of shares of Common Stock outstanding immediately prior to such issue plus (2) the number of shares of Common Stock which the aggregate consideration
received or to be received by the Corporation for the total number of Additional Shares of Common Stock so issued would purchase at such Series A Conversion Price; and (B) the denominator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issue plus the number of such Additional Shares of Common Stock so issued; PROVIDED THAT, (i) for the purpose of this Subsection 4(d)(iv), all shares of Common Stock issuable upon exercise or conversion of
vested Options or Convertible Securities outstanding immediately prior to such issue shall be deemed to be outstanding, and (ii) the number of shares of Common Stock deemed issuable upon exercise or conversion of such outstanding vested Options
and Convertible Securities shall not give effect to any adjustments to the conversion price or conversion rate of such Options or Convertible Securities resulting from the issuance of Additional Shares of Common Stock that is the subject of this
calculation. 
 (B) In the event the Corporation shall at any time after the Series B Original Issue Date issue Additional
Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued pursuant to Subsection 4(d)(iii), but excluding shares issued as a stock split or combination as provided in Subsection 4(e) or upon a dividend or distribution
as provided in Subsection 4(f)), without consideration or for a consideration per share less than the applicable Series B Conversion Price in effect immediately prior to such issue, then and in such event, such Series B Conversion Price shall be
reduced, concurrently with such issue, to a price (calculated to the nearest cent) determined by multiplying such Series B Conversion Price by a fraction, (A) the numerator of which shall be (1) the number of shares of Common Stock
outstanding immediately prior to such issue plus (2) the number of shares of Common Stock which the aggregate consideration received or to be received by the Corporation for the total number of Additional Shares of Common Stock so issued would
purchase at such Series B Conversion Price; and (B) the denominator of which shall be the number of shares of Common Stock outstanding immediately prior to such issue plus the number of such Additional Shares of Common Stock so issued; PROVIDED
THAT, (i) for the purpose of this Subsection 4(d)(iv), all shares of Common Stock issuable upon exercise or conversion of vested Options or Convertible Securities outstanding immediately prior to such issue shall be deemed to be outstanding,
and (ii) the number of shares of Common Stock deemed issuable upon exercise or conversion of such outstanding vested Options and Convertible Securities shall not give effect to any adjustments to the conversion price or conversion rate of such
Options or Convertible Securities resulting from the issuance of Additional Shares of Common Stock that is the subject of this calculation. 
 (C) In the event the Corporation shall at any time after the Series C Original Issue Date issue Additional Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued pursuant to Subsection
4(d)(iii), but excluding shares issued as a stock split or combination as provided in Subsection 4(e) or upon a dividend or distribution as provided in Subsection 4(f)), without consideration or for a consideration per share less than the applicable
Series C Conversion Price in effect immediately prior to such issue, then and in such event, such Series C Conversion Price shall be reduced, concurrently with such issue, to a price (calculated to the nearest cent) determined by multiplying such

  

 -13- 

 
Series C Conversion Price by a fraction, (A) the numerator of which shall be (1) the number of shares of Common Stock outstanding immediately prior
to such issue plus (2) the number of shares of Common Stock which the aggregate consideration received or to be received by the Corporation for the total number of Additional Shares of Common Stock so issued would purchase at such Series C
Conversion Price; and (B) the denominator of which shall be the number of shares of Common Stock outstanding immediately prior to such issue plus the number of such Additional Shares of Common Stock so issued; PROVIDED THAT, (i) for the
purpose of this Subsection 4(d)(iv), all shares of Common Stock issuable upon exercise or conversion of vested Options or Convertible Securities outstanding immediately prior to such issue shall be deemed to be outstanding, and (ii) the number
of shares of Common Stock deemed issuable upon exercise or conversion of such outstanding vested Options and Convertible Securities shall not give effect to any adjustments to the conversion price or conversion rate of such Options or Convertible
Securities resulting from the issuance of Additional Shares of Common Stock that is the subject of this calculation. 
 (v)
DETERMINATION OF CONSIDERATION. For purposes of this Subsection 4(d), the consideration received by the Corporation for the issue of any Additional Shares of Common Stock shall be computed as follows: 
 (A) CASH AND PROPERTY: Such consideration shall: 
 (I) insofar as it consists of cash, be computed at the aggregate of cash received by the Corporation, excluding amounts paid or payable
for accrued interest; 
 (II) insofar as it consists of property other than cash, be computed at the fair market value
thereof at the time of such issue, as determined in good faith by the Board of Directors; and 
 (III) in the event
Additional Shares of Common Stock are issued together with other shares or securities or other assets of the Corporation for consideration which covers both, be the proportion of such consideration so received, computed as provided in clauses
(I) and (II) above, as determined in good faith by the Board of Directors. 
 (B) OPTIONS AND CONVERTIBLE SECURITIES. The
consideration per share received by the Corporation for Additional Shares of Common Stock deemed to have been issued pursuant to Subsection 4(d)(iii), relating to Options and Convertible Securities, shall be determined by dividing 
 (x) the total amount, if any, received or receivable by the Corporation as consideration for the issue of such Options or Convertible
Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the
Corporation upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for 

  

 -14- 

 
Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities, by 

(y) the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision
contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities. 
 (vi) MULTIPLE CLOSING DATES. In the event the Corporation shall issue on more than one date Additional Shares of Common Stock which are
comprised of shares of the same series or class of Preferred Stock, and such issuance dates occur within a period of no more than 120 days, then, upon the final such issuance, the Series A Conversion Price, Series B Conversion Price and Series C
Conversion Price shall be adjusted to give effect to all such issuances as if they occurred on the date of the final such issuance (and without giving effect to any adjustments as a result of such prior issuances within such period). 
 (e) ADJUSTMENT FOR STOCK SPLITS AND COMBINATIONS. If the Corporation shall at any time or from time to time after the Series C Original
Issue Date effect a subdivision of the outstanding Common Stock, the Series A Conversion Price, Series B Conversion Price and Series C Conversion Price then in effect immediately before that subdivision each shall be proportionately decreased. If
the Corporation shall at any time or from time to time after the Series C Original Issue Date combine the outstanding shares of Common Stock, the Series A Conversion Price, Series B Conversion Price and Series C Conversion Price then in effect
immediately before the combination each shall be proportionately increased. Any adjustment under this paragraph shall become effective at the close of business on the date the subdivision or combination becomes effective. 
 (f) ADJUSTMENT FOR CERTAIN DIVIDENDS AND DISTRIBUTIONS. In the event the Corporation at any time, or from time to time after the Series C
Original Issue Date, as the case may be, shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in additional shares of Common Stock, then and in each
such event the Series A Conversion Price, Series B Conversion Price and Series C Conversion Price then in effect immediately before such event each shall be decreased as of the time of such issuance or, in the event such a record date shall have
been fixed, as of the close of business on such record date, by multiplying the Series A Conversion Price, Series B Conversion Price and Series C Conversion Price, as the case may be, then in effect by a fraction: 
 (1) the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of
such issuance or the close of business on such record date, and 
  

 -15- 

 (2) the denominator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution; 
 provided, however, if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor,
the Series A Conversion Price, Series B Conversion Price and Series C Conversion Price each shall be recomputed accordingly as of the close of business on such record date and thereafter the Series A Conversion Price, Series B Conversion Price and
Series C Conversion Price, as the case may be, shall be adjusted pursuant to this paragraph as of the time of actual payment of such dividends or distributions; and provided further, however, that no such adjustment shall be made if the holders of
Series A Preferred Stock, the holders of the Series B Preferred Stock and the holders of the Series C Preferred Stock simultaneously receive (i) a dividend or other distribution of shares of Common Stock in a number equal to the number of
shares of Common Stock as they would have received if all outstanding shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock had been converted into Common Stock on the date of such event or (ii) a dividend or
other distribution of shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock which are convertible, as of the date of such event, into such number of shares of Common Stock as is equal to the number of additional
shares of Common Stock being issued with respect to each share of Common Stock in such dividend or distribution. 
 (g)
ADJUSTMENTS FOR OTHER DIVIDENDS AND DISTRIBUTIONS. In the event the Corporation at any time or from time to time after the Series C Original Issue Date shall make or issue, or fix a record date for the determination of holders of Common Stock
entitled to receive, a dividend or other distribution payable in securities of the Corporation other than shares of Common Stock, then and in each such event provision shall be made so that the holders of the Series A Preferred Stock, the holders of
the Series B Preferred Stock and the holders of Series C Preferred Stock shall receive upon conversion thereof in addition to the number of shares of Common Stock receivable thereupon, the amount of securities of the Corporation that they would have
received had the Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock, as the case may be, been converted into Common Stock on the date of such event and had they thereafter, during the period from the date of such event to
and including the conversion date, retained such securities receivable by them as aforesaid during such period, giving application to all adjustments called for during such period under this paragraph with respect to the rights of the holders of the
Series A Preferred Stock, the rights of the holders of the Series B Preferred Stock and the rights of the holders of the Series C Preferred Stock, as the case may be; and provided further, however, that no such adjustment shall be made if the
holders of Series A Preferred Stock, the holders of the Series B Preferred Stock and the holders of the Series C Preferred Stock, as the case may be, simultaneously receive a dividend or other distribution of such securities in an amount equal to
the amount of such securities as they would have received if all outstanding shares of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock, as the case may be, had been converted into Common Stock on the date of such
event. 
  

 -16- 

 (h) ADJUSTMENT FOR RECLASSIFICATION, EXCHANGE, OR SUBSTITUTION. If the Common Stock
issuable upon the conversion of the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock shall be changed into the same or a different number of shares of any class or classes of stock, whether by capital reorganization,
reclassification, or otherwise (other than a subdivision or combination of shares or stock dividend provided for above, or a reorganization, merger, consolidation, or sale of assets provided for below), then and in each such event the holders of
each such share of Series A Preferred Stock, the holders of each such share of Series B Preferred Stock and the holders of each such share of Series C Preferred Stock shall have the right thereafter to convert such share into the kind and amount of
shares of stock and other securities and property receivable, upon such reorganization, reclassification, or other change, by holders of the number of shares of Common Stock into which such shares of Series A Preferred Stock, Series B Preferred
Stock or Series C Preferred Stock, as the case may be, might have been converted immediately prior to such reorganization, reclassification, or change, all subject to further adjustment as provided herein. 
 (i) ADJUSTMENT FOR MERGER OR REORGANIZATION, ETC. In case of any consolidation or merger of the Corporation with or into another
corporation or the sale of all or substantially all of the assets of the Corporation to another corporation (other than a consolidation, merger or sale which is covered by Subsection 2(c)), each share of Series A Preferred Stock, Series B Preferred
Stock and Series C Preferred Stock shall thereafter be convertible (or shall be converted into a security which shall be convertible) into the kind and amount of shares of stock or other securities or property to which a holder of the number of
shares of Common Stock of the Corporation deliverable upon conversion of such Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, as the case may be, would have been entitled upon such consolidation, merger or sale; and,
in such case, appropriate adjustment (as determined in good faith by the Board of Directors) shall be made in the application of the provisions in this Section 4 set forth with respect to the rights and interest thereafter of the holders of the
Series A Preferred Stock, the holders of the Series B Preferred Stock and the holders of the Series C Preferred Stock, to the end that the provisions set forth in this Section 4 (including provisions with respect to changes in and other
adjustments of the Series A Conversion Price, Series B Conversion Price and the Series C Conversion Price) shall thereafter be applicable, as nearly as reasonably may be, in relation to any shares of stock or other property thereafter deliverable
upon the conversion of the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, as the case may be. 
 (j) NO IMPAIRMENT. The Corporation will not, by amendment of its Certificate of Incorporation or through any reorganization, transfer of assets, consolidation, merger, 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 to be observed or performed hereunder by the Corporation, but will at all times in good faith assist in the carrying out of all the provisions of this Section 4 and in the
taking of all such action as may be necessary or appropriate in order to protect the Conversion Rights of the holders of the Series A Preferred 

  

 -17- 

 
Stock, the holders of the Series B Preferred Stock and the holders of the Series C Preferred Stock against impairment. 
 (k) CERTIFICATE AS TO ADJUSTMENTS. Upon the occurrence of each adjustment or readjustment of the Series A Conversion Price, the Series B
Conversion Price or the Series C Conversion Price pursuant to this Section 4, the Corporation at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder of Series A
Preferred Stock, each holder of the Series B Preferred Stock and each holder of the Series C Preferred Stock a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is
based. The Corporation shall, upon the written request at any time of any holder of Series A Preferred Stock, any holder of Series B Preferred Stock or any holder of Series C Preferred Stock, furnish or cause to be furnished to such holder a similar
certificate setting forth (i) such adjustments and readjustments, (ii) the Series A Conversion Price, Series B Conversion Price or Series C Conversion Price, as applicable, then in effect, and (iii) the number of shares of Common
Stock and the amount, if any, of other property which then would be received upon the conversion of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock, as the case may be. 
 (l) NOTICE OF RECORD DATE. In the event: 
  

	 	(i)	that the Corporation declares a dividend (or any other distribution) on its Common Stock payable in Common Stock or other securities of the Corporation; 

  

	 	(ii)	that the Corporation subdivides or combines its outstanding shares of Common Stock; 

  

	 	(iii)	of any reclassification of the Common Stock of the Corporation (other than a subdivision or combination of its outstanding shares of Common Stock or a stock dividend or stock
distribution thereon), or of any consolidation or merger of the Corporation into or with another corporation, or of the sale of all or substantially all of the assets of the Corporation; or 

  

	 	(iv)	of the involuntary or voluntary dissolution, liquidation or winding up of the Corporation; 

 then the Corporation shall cause to be filed at its principal office or at the office of the transfer agent of the Preferred Stock, and shall use its best efforts to cause to be mailed to the holders of the Series A
Preferred Stock, the holders of the Series B Preferred Stock and the holders of the Series C Preferred Stock at their last addresses as shown on the records of the Corporation or such transfer agent, prior to the dates specified in (A) and
(B) below, a notice stating 
  

 -18- 

	 	(A)	the record date of such dividend, distribution, subdivision or combination, or, if a record is not to be taken, the date as of which the holders of Common Stock of record to be
entitled to such dividend, distribution, subdivision or combination are to be determined, or 

  

	 	(B)	the date on which such reclassification, consolidation, merger, sale, dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected
that holders of Common Stock of record shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such reclassification, consolidation, merger, sale, dissolution or winding up.

 5. MANDATORY CONVERSION. 
 (a) Upon (i) the closing of the sale of shares of Common Stock, at a price to the public of at least $4.75 per share (subject to appropriate adjustment for stock splits, stock dividends, combinations and other
similar recapitalizations affecting such shares), in a public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, resulting in at least $15,000,000 of net proceeds to the Corporation (a
“Qualified IPO”) or (ii) the delivery to the Corporation of a Conversion Notice or Notices covering at least 75% of the outstanding shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock (the
“Mandatory Conversion Date”), (A) all outstanding shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock shall automatically be converted into shares of Common Stock, at the then effective applicable
conversion rate and (B) the number of authorized shares of Preferred Stock shall be automatically reduced by the number of shares of Preferred Stock that had been designated as Series A Preferred Stock, Series B Preferred Stock and Series C
Preferred Stock and all references to the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock shall be deleted and shall be of no further force or effect. 
 (b) All holders of record of shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock shall be given
written notice of the Mandatory Conversion Date and the place designated for mandatory conversion of all such shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock pursuant to this Section 5 . Such notice
need not be given in advance of the occurrence of the Mandatory Conversion Date. Such notice shall be sent by first class or registered mail, postage prepaid, to each record holder of Series A Preferred Stock, Series B Preferred Stock or Series C
Preferred Stock at such holder’s address last shown on the records of the transfer agent for the Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock, as the case may be (or the records of the Corporation, if it serves
as its own transfer agent). Upon receipt of such notice, each holder of shares of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock shall surrender his or its certificate or certificates for all such shares 

  

 -19- 

 
to the Corporation at the place designated in such notice, and shall thereafter receive certificates for the number of shares of Common Stock to which such
holder is entitled pursuant to this Section 5. On the Mandatory Conversion Date, all rights with respect to the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock so converted, including the rights, if any, to
receive notices and vote (other than as a holder of Common Stock) will terminate, except only the rights of the holders thereof, upon surrender of their certificate or certificates therefor, to receive certificates for the number of shares of Common
Stock into which such Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock has been converted, and payment of any declared but unpaid dividends thereon. If so required by the Corporation, certificates surrendered for
conversion shall be endorsed or accompanied by written instrument or instruments of transfer, in form satisfactory to the Corporation, duly executed by the registered holder or by his or its attorney duly authorized in writing. As soon as
practicable after the Mandatory Conversion Date and the surrender of the certificate or certificates for Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock, the Corporation shall cause to be issued and delivered to such
holder, or on his or its written order, a certificate or certificates for the number of full shares of Common Stock issuable on such conversion in accordance with the provisions hereof and cash as provided in Subsection 4(b) in respect of any
fraction of a share of Common Stock otherwise issuable upon such conversion. 
 (c) All certificates evidencing shares of
Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock which are required to be surrendered for conversion in accordance with the provisions hereof shall, from and after the Mandatory Conversion Date, be deemed to have been
retired and cancelled and the shares of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock represented thereby converted into Common Stock for all purposes, notwithstanding the failure of the holder or holders thereof to
surrender such certificates on or prior to such date. Such converted Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock may not be reissued, and the Corporation may thereafter take such appropriate action (without the
need for stockholder action) as may be necessary to reduce the authorized number of shares of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock, accordingly. 
 6. REDEMPTION. 
 (a) The
Corporation will, subject to the conditions set forth below, on February 25, 2004 and on each of the first and second anniversaries thereof (each such date being referred to hereinafter as a “Mandatory Redemption Date”), upon receipt
not less than 60 nor more than 120 days prior to the applicable Mandatory Redemption Date of written request(s) for redemption from holders of shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock representing at
least 66-2/3% of the aggregate number of shares of Common Stock issuable upon conversion of the then outstanding shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock (a “Redemption Request”), redeem
from each holder of shares of Series A Preferred Stock, Series B Preferred Stock and/or Series C Preferred Stock that requests redemption pursuant to the Redemption Request or pursuant to a subsequent election made in accordance with this 

  

 -20- 

 
Section 6(a) (a “Requesting Holder”), at a price equal to $.343 per share, in the case of the Series A Preferred Stock, $.996 per share, in
the case of the Series B Preferred Stock, and $3.893 in the case of the Series C Preferred Stock, plus in each case any dividends declared but unpaid thereon, subject to appropriate adjustment in the event of any stock dividend, stock split,
combination or other similar recapitalization affecting such shares (the “Mandatory Redemption Price”), the number of shares of Series A Preferred Stock, Series B Preferred Stock and/or Series C Preferred Stock requested to be redeemed by
each Requesting Holder, but not more than the following respective portions of the number of shares each series of Preferred Stock held by such Requesting Holder on the applicable Mandatory Redemption Date. 
  

			
	Mandatory Redemption Date	  	Maximum Portion of Shares of Series of Preferred Stock To Be Redeemed
		
	February 25, 2004	  	                            33%
		
	February 25, 2005	  	                            50%
		
	February 25, 2006	  	                    All shares of Series

 The Corporation shall provide notice of its receipt of Redemption Request, specifying the time, manner and place
of redemption and the Mandatory Redemption Price (a “Redemption Notice”), by first class or registered mail, postage prepaid, to each holder of record of Series A Preferred Stock, to each holder of Series B Preferred Stock and to each
holder of Series C Preferred Stock at the address for such holder last shown on the records of the transfer agent therefor (or the records of the Corporation, if it serves as its own transfer agent), not less than 45 days prior to the applicable
Mandatory Redemption Date. Each holder of Series A Preferred Stock, each holder of Series B Preferred Stock and each holder of Series C Preferred Stock (other than a holder who has made the Redemption Request) may elect to become a Requesting Holder
on such Mandatory Redemption Date by so indicating in a written notice mailed to the Company, by first class or registered mail, postage prepaid, at least 30 days prior to the applicable Mandatory Redemption Date. Except as provided in
Section 6(b) below, each Requesting Holder shall surrender to the Corporation on the applicable Mandatory Redemption Date the certificate(s) representing the shares to be redeemed on such date, in the manner and at the place designated in the
Redemption Notice. Thereupon, the Mandatory Redemption Price shall be paid to the order of each such Requesting Holder and each certificate surrendered for redemption shall be cancelled. 
 (b) If the funds of the Corporation legally available for redemption of Series A Preferred Stock, Series B Preferred Stock and Series C
Preferred Stock on any Mandatory Redemption Date are insufficient to redeem the number of shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock required under this Section 6 to be redeemed on such date from
Requesting Holders, those funds which are legally available will be used to redeem the maximum possible number of each such shares ratably on the basis of the number of each such series which would be redeemed on such date if the funds of the
Corporation legally available therefor had been sufficient to redeem all shares required to be redeemed on such date. At any time thereafter when additional funds of the Corporation 

  

 -21- 

 
become legally available for the redemption of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, such funds will be used, at
the end of the next succeeding fiscal quarter, to redeem the balance of the shares which the Corporation was theretofore obligated to redeem, ratably on the basis set forth in the preceding sentence. 
 (c) Unless there shall have been a default in payment of the Mandatory Redemption Price, on the applicable Mandatory Redemption Date, all
rights of the holder of each share redeemed on such date as a stockholder of the Corporation by reason of the ownership of such share will cease, except the right to receive such Mandatory Redemption Price of such share, without interest, upon
presentation and surrender of the certificate representing such share, and such share will not from and after such Mandatory Redemption Date be deemed to be outstanding. 
 (d) Any shares of Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock redeemed pursuant to this Section 6
will be cancelled and will not under any circumstances be reissued, sold or transferred and the Corporation may from time to time take such appropriate action as may be necessary to reduce the authorized shares of Series A Preferred Stock, Series B
Preferred Stock or Series C Preferred Stock accordingly. 
 7. WAIVER. Any of the respective rights of the holders of Series A Preferred
Stock, Series B Preferred Stock and Series C Preferred Stock set forth herein may be waived by the affirmative vote of the holders of not less than 66-2/3% of the shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred
Stock, then outstanding, voting together as a separate class; PROVIDED, HOWEVER, that any waiver which does not affect all series of Preferred Stock in the same manner may only be waived by the holders of not less than 66-2/3% of the shares of
Preferred Stock so affected. 
 8. NEGATIVE COVENANTS. So long as at least 25% of the shares of Series A Preferred Stock, Series B Preferred
Stock and Series C Preferred Stock outstanding on the Series C Original Issue Date (such numbers to be proportionately adjusted in the event of any stock splits, stock dividends, recapitalizations or similar events) are outstanding, the Corporation
shall not, without the prior written consent of the holders of shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock representing not less than 66-2/3% of the shares of Common Stock into which all outstanding
shares of such Preferred Stock are then convertible: 
 (a) merge or consolidate into or with another corporation (except a
merger or consolidation in which the holders of capital stock of the Corporation immediately prior to such merger or consolidation continue to hold at least 50% by voting power of the capital stock of the surviving or acquiring corporation), or sell
all or substantially all the assets of the Corporation; 
 (b) acquire (whether by merger, stock purchase, asset purchase or
otherwise) all or substantially all of the properties, assets or stock of any other corporation or entity; 
  

 -22- 

 (c) amend the Certificate of Incorporation (including through the filing of a Certificate
of Designation) of the Corporation to authorize any additional shares of Common Stock or Preferred Stock or to authorize or designate any other class or series of stock in addition to Common Stock and Preferred Stock; 
 (d) declare or pay any dividends or distributions on Common Stock (other than dividends payable solely in Common Stock and repurchases of
Common Stock for a price equal to its original purchase price pursuant to restricted stock agreements); 
 (e) voluntarily
liquidate or dissolve; 
 (f) incur any indebtedness for borrowed money or purchase money financing in excess of the greater
of (i) $1.5 million or (ii) 25% of the amount, if any, by which the Corporation’s total assets exceeds its total liabilities (as reflected in the Corporation’s most recent balance sheet); 
 (g) guarantee directly or indirectly, any indebtedness or obligations (except for guarantees of trade accounts of any subsidiary arising
in the ordinary course of business); 
 (h) make any loan or advance to any person or entity, except advances and similar
expenditures in the ordinary course of business or under the terms of an employee stock or option plan approved by the Board of Directors; or 
 (i) engage in any strategic transaction in which securities of the Company are issued, including (a) joint ventures, manufacturing, marketing or distribution agreements, or (b) technology transfer or
development agreements. 
 FIFTH. The Corporation is to have perpetual existence. 
 SIXTH. The following provisions are included for the management of the business and the conduct of the affairs of the Corporation, and for further
definition, limitation and regulation of the powers of the Corporation and of its Board of Directors and stockholders: 
 1. The business and
affairs of the Corporation shall be managed by or under the direction of the Board of Directors of the Corporation. 
 2. The Board of
Directors of the Corporation is expressly authorized to adopt, amend or repeal the by-laws of the Corporation, subject to any limitation thereof contained in the by-laws. The stockholders shall also have the power to adopt, amend or repeal the
by-laws of the Corporation; PROVIDED, HOWEVER, that, in addition to any vote of the holders of any class or series of stock of the Corporation required by law or by this Third Amended and Restated Certificate of Incorporation, the affirmative vote
of the holders of at least seventy-five percent (75%) of the voting power of all of the then outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single 

  

 -23- 

 
class, shall be required to adopt, amend or repeal any provision of the by-laws of the Corporation. 
 3. Stockholders of the Corporation may not take any action by written consent in lieu of a meeting. 
 4. Special meetings of stockholders may be called at any time only by the Chief Executive Officer, the President, the Chairman of the Board of Directors
(if any) or a majority of the Board of Directors. Business transacted at any special meeting of stockholders shall be limited to matters relating to the purpose or purposes stated in the notice of meeting. 
 5. The books of the Corporation may be kept at such place within or without the State of Delaware as the by-laws of the Corporation may provide or as may
be designated from time to time by the Board of Directors of the Corporation. 
 SEVENTH. 
 1. NUMBER OF DIRECTORS. The number of directors which shall constitute the whole Board of Directors shall be determined by resolution of a majority of
the Board of Directors, but in no event shall the number of directors be less than three. The number of directors may be decreased at any time and from time to time by a majority of the directors then in office, but only to eliminate vacancies
existing by reason of the death, resignation, removal or expiration of the term of one or more directors. The directors shall be elected at the annual meeting of stockholders by such stockholders as have the right to vote on such election. Directors
need not be stockholders of the Corporation. 
 2. CLASSES OF DIRECTORS. The Board of Directors shall be and is divided into three classes:
Class I, Class II and Class III. No one class shall have more than one director more than any other class. 
 3. ELECTION OF DIRECTORS.
Elections of directors need not be by written ballot except as and to the extent provided in the by-laws of the Corporation. 
 4. TERMS OF
OFFICE. Each director shall serve for a term ending on the date of the third annual meeting following the annual meeting at which such director was elected; provided, however, that each initial director in Class I shall serve for a term ending on
the date of the annual meeting next following the end of the Corporation’s fiscal year ending February 29, 2000; each initial director in Class II shall serve for a term ending on the date of the annual meeting next following the end of
the Corporation’s fiscal year ending February 28, 2001; and each initial director in Class III shall serve for a term ending on the date of the annual meeting next following the end of the Corporation’s fiscal year ending
February 28, 2002. 
 5. ALLOCATION OF DIRECTORS AMONG CLASSES IN THE EVENT OF INCREASES OR DECREASES IN THE NUMBER OF DIRECTORS. In the
event of any increase or decrease in the authorized number of directors, (i) each director then serving as such shall nevertheless continue as director of the 

  

 -24- 

 
class of which he or she is a member until the expiration of such director’s current term or his or her prior death, removal or resignation and
(ii) the newly created or eliminated directorships resulting from such increase or decrease shall be apportioned by the Board of Directors among the three classes of directors so as to ensure that no one class has more than one director more
than any other class. To the extent possible, consistent with the foregoing rule, any newly created directorships shall be added to those classes whose terms of office are to expire at the earliest dates following such allocation, unless otherwise
provided for from time to time by resolution adopted by a majority of the directors then in office, though less than a quorum. No decrease in the number of directors constituting the whole Board of Directors shall shorten the term of an incumbent
director. 
 6. TENURE. Notwithstanding any provisions to the contrary contained herein, each director shall hold office until his or her
successor is elected and qualified, or until his or her earlier death, resignation or removal. 
 7. VACANCIES. Unless and until filled by
the stockholders, any vacancy in the Board of Directors, however occurring, including a vacancy resulting from an enlargement of the Board of Directors, may be filled only by vote of a majority of the directors then in office, even if less than a
quorum, or by a sole remaining director. A director elected to fill a vacancy shall be elected for the unexpired term of his or her predecessor in office, if applicable, and a director chosen to fill a position resulting from an increase in the
number of directors shall hold office until the next election of the class for which such director shall have been chosen and until his or her successor is elected and qualified, or until his or her earlier death, resignation or removal. 

8. QUORUM. A majority of the total number of the whole Board of Directors shall constitute a quorum at all meetings of the Board of Directors. In the
event one or more of the directors shall be disqualified to vote at any meeting, then the required quorum shall be reduced by one for each such director so disqualified; provided, however, that in no case shall less than one-third (1/3) of the
number so fixed constitute a quorum. In the absence of a quorum at any such meeting, a majority of the directors present may adjourn the meeting from time to time without further notice other than announcement at the meeting, until a quorum shall be
present. 
 9. ACTION AT MEETING. At any meeting of the Board of Directors at which a quorum is present, the vote of a majority of those
present shall be sufficient to take any action, unless a different vote is specified by law or the Corporation’s by-laws. 
 10.
REMOVAL. Any one or more or all of the directors may be removed with cause only by the holders of at least seventy-five percent (75%) of the shares then entitled to vote at an election of directors. Directors may not be removed without cause.

 11. STOCKHOLDER NOMINATIONS AND INTRODUCTION OF BUSINESS, ETC. Advance notice of stockholder nominations for election of directors and
other business to be brought by stockholders before a meeting of stockholders shall be given in the manner provided in the by-laws of the Corporation. 
  

 -25- 

 12. RIGHTS OF PREFERRED STOCK. The provisions of this Article are subject to the rights of the holders of
any series of Preferred Stock from time to time outstanding. 
 EIGHTH. No director (including any advisory director) of the Corporation
shall be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director notwithstanding any provision of law imposing such liability; provided, however, that, to the extent provided by
applicable law, this provision shall not eliminate the liability of a director (i) for any breach of the director’s duty of loyalty to the Corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve
intentional misconduct or a knowing violation of law, (iii) under Section 174 of the General Corporation Law of the State of Delaware, or (iv) for any transaction from which the director derived an improper personal benefit. No
amendment to or repeal of this provision shall apply to or have any effect on the liability or alleged liability of any director for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal. 

NINTH. The Board of Directors of the Corporation, when evaluating any offer of another party (a) to make a tender or exchange offer for any
equity security of the Corporation or (b) to effect a business combination, shall, in connection with the exercise of its judgment in determining what is in the best interests of the Corporation as whole, be authorized to give due consideration
to any such factors as the Board of Directors determines to be relevant, including, without limitation: 
 (i) the interests
of the Corporation’s stockholders, including the possibility that these interests might be best served by the continued independence of the Corporation; 
 (ii) whether the proposed transaction might violate federal or state laws; 
 (iii) not only the consideration being offered in the proposed transaction, in relation to the then current market price for the
outstanding capital stock of the Corporation, but also to the market price for the capital stock of the Corporation over a period of years, the estimated price that might be achieved in a negotiated sale of the Corporation as a whole or in part or
through orderly liquidation, the premiums over market price for the securities of other corporations in similar transactions, current political, economic and other factors bearing on securities prices and the Corporation’s financial condition
and future prospects; and 
 (iv) the social, legal and economic effects upon employees, suppliers, customers, creditors and
others having similar relationships with the Corporation, upon the communities in which the Corporation conducts its business and upon the economy of the state, region and nation. 
 In connection with any such evaluation, the Board of Directors is authorized to conduct such investigations and engage in such legal proceedings as the Board of Directors may determine. 
  

 -26- 

 TENTH. The Corporation reserves the right to amend or repeal any provision contained in this Third
Amended and Restated Certificate of Incorporation in the manner prescribed by the laws of the State of Delaware and all rights conferred upon stockholders are granted subject to this reservation, PROVIDED, HOWEVER, that in addition to any vote of
the holders of any class or series of stock of the Corporation required by law, this Third Amended and Restated Certificate of Incorporation or a Certificate of Designation with respect to a series of Preferred Stock, the affirmative vote of the
holders of shares of voting stock of the Corporation representing at least seventy-five percent (75%) of the voting power of all of the then outstanding shares of the capital stock of the Corporation entitled to vote generally in the election
of directors, voting together as a single class, shall be required to (i) reduce or eliminate the number of authorized shares of Common Stock or the number of authorized shares of Preferred Stock set forth in Article FOURTH or (ii) amend
or repeal, or adopt any provision inconsistent with, Parts A and B of Article FOURTH and Articles FIFTH, SIXTH, SEVENTH, EIGHTH, NINTH and this Article TENTH of this Third Amended and Restated Certificate of Incorporation. 
 [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 
  

 -27- 

 IN WITNESS WHEREOF, the undersigned has hereunto signed his name and affirms that the statements made in
this Third Amended and Restated Certificate of Incorporation are true under the penalties of perjury this 10th day of August, 1999. 
  

			
		
	By:	 	/s/ Robert F. Young
		 	Name: Robert F. Young
		 	Title: Chief Executive Officer

 [SEAL] 
  

			
	Attest:
		
	By:	 	/s/ David Shumannfang
		 	David Shumannfang
		 	Secretary

 CERTIFICATE OF AMENDMENT 
 OF 
 THIRD AMENDED AND RESTATED 
 CERTIFICATE OF INCORPORATION 
 OF

 RED HAT, INC. 
 Red
Hat, Inc. (the “Corporation”), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware, does hereby certify as follows: 
 FIRST: That the Board of Directors of the Corporation, by unanimous written consent, duly adopted resolutions setting forth a proposed amendment
to the Corporation’s Third Amended and Restated Certificate of Incorporation, declaring said amendment to be advisable and directing consideration thereof by the stockholders of the Corporation. The resolutions setting forth the proposed
amendment are as follows: 
  

			
	 RESOLVED:
	 	That, subject to stockholder approval, Article FOURTH of the Corporation’s Third Amended and Restated Certificate of Incorporation, be amended and restated and shall read in its entirety as
set forth on Exhibit A attached hereto.

 SECOND: The Board of Directors of the Corporation directed that such amendment be submitted
to the stockholders of the Corporation for their consent and approval and, in lieu of a meeting and vote of stockholders, the stockholders having not less than the minimum number of votes that is necessary to consent to this amendment have given
written consent to said amendment in accordance with the provisions of Section 228 of the DGCL. 
 THIRD: That said amendment was duly
adopted in accordance with the provisions of Sections 242 and 228 of the DGCL. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 IN WITNESS WHEREOF, the undersigned has executed, signed and acknowledged this Certificate of Amendment
this 16th day of August, 1999. 
  

			
	RED HAT, INC.
		
	By:	 	/s/ Robert F. Young
	Name:	 	Robert F. Young
	Title:	 	Chief Executive Officer

 [SEAL] 
  

			
	Attest:
		
	By:	 	/s/ David Shumannfang
		 	David Shumannfang
		 	Secretary

 Exhibit A 
 “FOURTH. The total number of shares of all classes of capital stock which the Corporation shall have authority to issue is 230,000,000 shares, consisting of 225,000,000 shares of Common Stock with a par value of $.0001 per share
(the “Common Stock”) and 5,000,000 shares of Preferred Stock with a par value of $.0001 per share (the “Preferred Stock”). 
 A description of the respective classes of stock and a statement of the designations, powers, preferences and rights, and the qualifications, limitations and restrictions of the Preferred Stock and Common Stock are as follows: 

 

	A.	COMMON STOCK 

 1.
General. All shares of Common Stock will be identical and will entitle the holders thereof to the same rights, powers and privileges. The rights, powers and privileges of the holders of the Common Stock are subject to and
qualified by the rights of holders of the Preferred Stock. 
 2. Dividends. Dividends may be declared and paid on
the Common Stock from funds lawfully available therefor as and when determined by the Board of Directors and subject to any preferential dividend rights of any then outstanding Preferred Stock. 
 3. Dissolution, Liquidation or Winding Up. In the event of any dissolution, liquidation or winding up of the affairs of the Corporation,
whether voluntary or involuntary, each issued and outstanding share of Common Stock shall entitle the holder thereof to receive an equal portion of the net assets of the Corporation available for distribution to the holders of Common Stock, subject
to any preferential rights of any then outstanding Preferred Stock. 
 4. Voting Rights. Except as otherwise
required by law or this Third Amended and Restated Certificate of Incorporation, each holder of Common Stock shall have one vote in respect of each share of stock held of record by such holder on the books of the Corporation for the election of
directors and on all matters submitted to a vote of stockholders of the Corporation. Except as otherwise required by law or provided herein, holders of Common Stock shall vote together with holders of the Preferred Stock as a single class, subject
to any special or preferential voting rights of any then outstanding Preferred Stock. There shall be no cumulative voting. 

 CERTIFICATE OF AMENDMENT 
 OF 
 THIRD AMENDED AND RESTATED 
 CERTIFICATE OF INCORPORATION 
 OF 
 RED HAT, INC. 
 Red Hat, Inc. (the “Corporation”), a corporation organized and existing under and
by virtue of the General Corporation Law of the State of Delaware, does hereby certify as follows: 
 FIRST: That the Board of Directors of
the Corporation, by unanimous written consent, duly adopted resolutions setting forth a proposed amendment to the Corporation’s Third Amended and Restated Certificate of Incorporation, declaring said amendment to be advisable and directing
consideration thereof by the stockholders of the Corporation. The resolution setting forth the proposed amendment are as follows: 
 RESOLVED: That, subject to stockholder approval, Article FOURTH of the Corporation’s Third Amended and Restated Certificate of Incorporation, be amended and restated and shall read in its entirety as set forth on Exhibit A attached
hereto. 
 SECOND: The Board of Directors of the Corporation directed that such amendment be submitted to the stockholders of the Corporation
for their consent and approval and, in lieu of a meeting and vote of stockholders, the stockholders having not less than the minimum number of votes that is necessary to consent to this amendment have given written consent to said amendment in
accordance with the provisions of Section 228 of the Delaware General Corporation Law. 
 THIRD: That said amendment was duly adopted in
accordance with the provisions of Sections 242 and 228 of the Delaware General Corporation Law. 
 IN WITNESS WHEREOF, the undersigned has
executed, signed and acknowledged this Certificate of Amendment this 8th day of August, 2001. 
  

	
	RED HAT, INC.
	
	/s/ Mark H. Webbink
	Mark H. Webbink
	 Senior Vice President and
 General
Counsel

 Exhibit A 
 FOURTH. The total number of shares of all classes of capital stock which the Corporation shall have authority to issue is 305,000,000 shares, consisting of 300,000,000 shares of Common Stock with a par value of $.0001 per share (the
“Common Stock”) and 5,000,000 shares of Preferred Stock with a par value of $.0001 per share (the “Preferred Stock”). 
 A description of the respective classes of stock and a statement of the designations, powers, preferences and rights, and the qualifications, limitations and restrictions of the Preferred Stock and Common Stock are as follows: 

A. COMMON STOCK 
 1. General. All shares of Common Stock will be identical and will entitle the holders thereof to the same rights, powers and privileges. The rights, powers and privileges of the holders of the Common Stock are subject to and
qualified by the rights of holders of the Preferred Stock. 
 2. Dividends. Dividends may be declared and paid on the Common Stock
from funds lawfully available therefor as and when determined by the Board of Directors and subject to any preferential dividend rights of any then outstanding Preferred Stock. 
 3. Dissolution, Liquidation and Winding Up. In the event of any dissolution, liquidation or winding up of the affairs of the Corporation, whether
voluntary or involuntary, each issued and outstanding share of Common Stock shall entitle the holder thereof to receive an equal portion of the net assets of the Corporation available for distribution to the holders of Common Stock, subject to any
preferential rights of any then outstanding Preferred Stock. 
 4. Voting Rights. Except as otherwise required by law or this Third
Amended and Restated Certificate of Incorporation, each holder of Common Stock shall have one vote in respect of each share of stock held of record by such holder on the books of the Corporation for the election of directors and on all matters
submitted to a vote of stockholders of the Corporation. Except as otherwise required by law or provided herein, holders of Common Stock shall vote together with holders of Preferred Stock as a single class, subject to any special or preferential
voting rights of any then outstanding Preferred Stock. There shall be no cumulative voting. 
 B. PREFERRED STOCK

 The Preferred Stock may be issued in one or more series at such time or times and for such consideration or considerations as the
Board of Directors of the Corporation may determine. Each series shall be so designated as to distinguish the shares thereof from the shares of all other series and classes. Except as otherwise provided in this Third Amended and Restated Certificate
of Incorporation, different series of Preferred Stock shall not be construed to constitute different classes of shares for the purpose of voting by classes. 
 The Board of Directors is expressly authorized to provide for the issuance of all or any shares of the undesignated Preferred Stock in one or more series, each with such designations, preference, voting powers (or
special, preferential or no voting powers), relative, participating, optional or other special rights and privileges and such qualifications, limitations or restrictions thereof as shall be stated in the resolution or resolutions adopted by the
Board of Directors to create such series, and a certificate of 

 
said resolution or resolutions (a “Certificate of Designation”) shall be filed in accordance with the General Corporation Law of the State of
Delaware. The authority of the Board of Directors with respect to each such series shall include, without limitation of the foregoing, the right to provide that the shares of each such series may be: (i) subject to redemption at such time or
times and at such price or prices; (ii) entitled to receive dividends (which may be cumulative or non-cumulative) at such rates, on such conditions, and at such times, and payable in preference to, or in such relation to, the dividends payable
on any other class or classes or any other series; (iii) entitled to such rights upon the dissolution of, or upon any distribution of the assets of, the Corporation; (iv) convertible into, or exchangeable for, shares of any other class or
classes of stock, or of any other series of the same or any other class or classes of stock of the Corporation at such price or prices or at such rates of exchange and with such adjustments, if any; (v) entitled to the benefit of such
limitations, if any, on the issuance of additional shares of such series or shares of any other series of Preferred Stock; or (vi) entitled to such other preferences, powers, qualifications, rights and privileges, all as the Board of Directors
may deem advisable and as are not inconsistent with law and the provisions of this Third Amended and Restated Certificate of Incorporation.”

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