Document:

Exhibit
10.2

 

FORM OF

PROMISSORY
NOTE

 

(Earnout
Note)

 

March 27,
2022

 

$[__]

 

FOR
VALUE RECEIVED, the undersigned, SMART Global Holdings, Inc,, a Cayman Islands exempted company (the “Company”,
or the “Parent”), hereby unconditionally promises to pay to Cree, Inc., a North Carolina corporation (“Cree”
and together with any permitted successor, permitted registered assignee or permitted transferee of, or other permitted holder
of, this promissory note (this “Note”), the “Holder”) [·]
Dollars ($[·]) (the “Loan”). The Company further hereby agrees
to pay interest on the unpaid principal amount hereof from time to time outstanding at the rates and on the dates specified in
Article II. This Note is the Earnout Note referred to in, and was executed and delivered in connection with, that certain
Asset Purchase Agreement made and entered into as of October 18, 2020 (as amended, supplemented or otherwise modified from time
to time in accordance with the terms thereof, the “Purchase Agreement”), among (i) Cree, as the Seller, (ii)
CreeLED, Inc. (formerly known as Chili Acquisition, Inc.), a Delaware corporation and a wholly owned subsidiary of the Company,
as the Buyer, and (iii) the Company, as the Buyer Parent. Capitalized terms used herein and not otherwise defined shall have the
meanings set forth in the Purchase Agreement.

 

Article
I 

DEFINITIONS

 

Section
1.1Defined Terms

 

As
used herein, the terms below shall have the following meanings. Any of such terms, unless the context otherwise requires, may
be used in the singular or plural, depending upon the reference.

 

“Affiliate”
means, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person. For purposes of this definition, “control” of a Person means the power, directly or indirectly,
to direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.

 

“Agreement
Date” means October 18, 2020.

 

“Bankruptcy
Code” means the Bankruptcy Code in Title 11 of the United States Code, as amended, modified, succeeded, or replaced
from time to time.

 

“Benchmark”
means LIBOR or a Benchmark Replacement that is in effect hereunder, as applicable.

 

“Benchmark
Replacement” has the meaning assigned to such term in Section 2.2.

 

    	 

    	 

    

“Board
of Directors” means, with respect to any Person, (a) in the case of any corporation, the board of directors of such
Person or any committee thereof duly authorized to act on behalf of such board, (b) in the case of any limited liability company,
the board of managers, board of directors, manager or managing member of such Person or the functional equivalent of the foregoing,
(c) in the case of any partnership, the board of directors, board of managers, manager or managing member of a general partner
of such Person or the functional equivalent of the foregoing and (d) in any other case, the functional equivalent of the foregoing.
In addition, the term “director” means a director or functional equivalent thereof with respect to the relevant Board
of Directors.

 

“Business
Day” means any day other than a Saturday, Sunday or other day on which banks in New York, New York are permitted
or required to close by Law.

 

“Buyer”
has the meaning assigned to such term in the first paragraph of this Note.

 

“Change
in Control” means the acquisition of beneficial ownership by any Person or group, other than the Permitted Holders
(as defined in the Credit Agreement as of the Agreement Date) (or any holding company parent of Parent owned directly or indirectly
by the Permitted Holders), of Equity Interests representing 40% or more of the aggregate votes entitled to vote for the election
of directors of Parent having a majority of the aggregate votes on the Board of Directors of Parent and the aggregate number of
votes for the election of such directors of the Equity Interests beneficially owned by such Person or group is greater than the
aggregate number of votes for the election of such directors represented by the Equity Interests beneficially owned by the Permitted
Holders, unless the Permitted Holders otherwise have the right (pursuant to contract, proxy or otherwise), directly or indirectly,
to designate, nominate or appoint (and do so designate, nominate or appoint) directors of Parent having a majority of the aggregate
votes on the Board of Directors of Parent.

 

For
purposes of this definition, including other defined terms used herein in connection with this definition and notwithstanding
anything to the contrary in this definition or any provision of Section 13d-3 of the Exchange Act, (i) “beneficial ownership”
shall be as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act as in effect on the Agreement Date, (ii) the phrase Person
or group is within the meaning of Section 13(d) or 14(d) of the Exchange Act, but excluding any employee benefit plan of such
Person or group or its subsidiaries and any Person acting in its capacity as trustee, agent or other fiduciary or administrator
of any such plan, (iii) if any group includes one or more Permitted Holders, the issued and outstanding Equity Interests of Parent,
directly or indirectly owned by the Permitted Holders that are part of such group shall not be treated as being beneficially owned
by such group or any other member of such group for purposes of clause (b) of this definition, (iv) a Person or group shall not
be deemed to beneficially own Equity Interests to be acquired by such Person or group pursuant to a stock or asset purchase agreement,
merger agreement, option agreement, warrant agreement or similar agreement (or voting or option or similar agreement related thereto)
until the consummation of the acquisition of the Equity Interests in connection with the transactions contemplated by such agreement
and (v) a Person or group will not be deemed to beneficially own the Equity Interests of another Person as a result of its ownership
of Equity Interests or other securities of such other Person’s parent (or related contractual rights) unless it owns 50%
or more of the total voting power of the Equity Interests

 

    2 

    	 

    

entitled
to vote for the election of directors of such Person’s parent having a majority of the aggregate votes on the Board of Directors
of such Person’s parent.

 

“Company”
has the meaning assigned to such term in the first paragraph of this Note.

 

“Credit
Agreement” means that certain Third Amended and Restated Credit Agreement dated as of March 6, 2020, among SMART
Worldwide Holdings, Inc., a Cayman Islands exempted company, SMART Modular Technologies (Global), Inc., a Cayman Islands exempted
company, SMART Modular Technologies, Inc., a California corporation, the lenders party thereto and Barclays Bank PLC, as Administrative
Agent and as Collateral Agent.

 

“Debtor
Relief Laws” means the Bankruptcy Code and all other liquidation, conservatorship, bankruptcy, assignment for the
benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the
United States or other applicable jurisdictions from time to time in effect.

 

“Default”
means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured
or waived, become an Event of Default.

 

“Dollars”
or “$” refers to lawful money of the United States.

 

“Effective
Date” means March 27, 2022.

 

“Equity
Interests” means shares of the capital stock (including common and preferred shares), partnership interests, membership
interest in a limited liability company, beneficial interests in a trust, any subscriptions, options, warrants, commitments, preemptive
rights or agreements of any kind (including any shareholders’ or voting trust agreements) for the issuance, sale, registration
or voting of, or securities convertible into, any additional equity interests, or other equity interests.

 

“Event
of Default” has the meaning assigned to such term in Section 6.1.

 

“Exchange
Act” means the Securities Exchange Act of 1934.

 

“Excluded
Taxes” means any of the following Taxes imposed on or with respect to the Holder or required to be withheld or deducted
from a payment to the Holder, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch
profits Taxes, in each case, (i) imposed as a result of the Holder being organized under the laws of, or having its principal
office or its lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that
are Other Connection Taxes, (b) United States federal withholding Taxes imposed on interest in a loan pursuant to a law in effect
on the Effective Date and (c) Taxes attributable to the Holder’s failure to comply with Section 3.6.

 

“Fair
Market Value” means with respect to any asset or group of assets on any date of determination, the value of the
consideration obtainable in a sale of such asset at such date of determination assuming a sale by a willing seller to a willing
purchaser dealing at arm’s length and arranged in an orderly manner over a reasonable period of time having regard to the
nature

 

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and characteristics
of such asset. Except as otherwise expressly set forth herein, such value shall be determined in good faith by the Parent.

 

“Financial
Officer” means the chief financial officer, principal accounting officer, treasurer or controller of the Parent.

 

“FRB/NYFRB”
has the meaning assigned to such term in Section 2.2.

 

“Fully
Satisfied” means, as of any date, that on or before such date: (a) the principal of and interest accrued to such
date on the Loan shall have been paid in full in cash and (b) all fees, expenses and other amounts then due and payable (other
than contingent amounts for which a claim has not been made) shall have been paid in full in cash.

 

“GAAP”
means United States generally accepted accounting principles, as in effect from time to time.

 

“Governmental
Authority” means the government of the United States or any other nation, or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory, or administrative powers or functions of or pertaining to government including
any supra-national bodies (such as the European Union or the European Central Bank).

 

“Guarantee”
of or by any Person (for purposes of this definition, the “guarantor”) means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other monetary obligation
of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any
obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other monetary obligation or to purchase (or to advance or supply funds for the purchase of) any security
for the payment thereof or pledge any assets to secure the payment thereof, (b) to purchase or lease property, securities or services
for the purpose of assuring the owner of such Indebtedness or other monetary obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable
the primary obligor to pay such Indebtedness or other monetary obligation, (d) as an account party in respect of any letter of
credit or letter of guaranty issued to support such Indebtedness or monetary obligation, or (e) entered into for the purpose of
assuring in any other manner the holder of such Indebtedness or other monetary obligation of the payment or performance thereof
or to protect such holder against loss in respect thereof (in whole or in part). The amount of any Guarantee shall be deemed to
be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which
such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as reasonably
determined by the guaranteeing Person in good faith. The term “Guarantee” as a verb has a corresponding meaning. Notwithstanding
the foregoing, the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.

 

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“Indebtedness”
of any Person means, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person
evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under conditional sale or other
title retention agreements relating to property acquired by such Person, (d) all obligations of such Person in respect of the
deferred purchase price of property or services (excluding trade accounts payable in the ordinary course of business and any earn-out
obligation until such obligation becomes a liability on the balance sheet of such Person in accordance with GAAP and if not paid
after being due and payable), (e) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness
secured thereby has been assumed, (f) all Guarantees by such Person of Indebtedness of others, (g) all capital lease obligations
and finance lease obligations of such Person, (h) all obligations, contingent or otherwise, of such Person as an account party
in respect of letters of credit and letters of guaranty and (i) all obligations, contingent or otherwise, of such Person in respect
of bankers’ acceptances; provided that the term “Indebtedness” shall not include (i) deferred or prepaid
revenue, (ii) purchase price holdbacks in respect of a portion of the purchase price of an asset to satisfy warranty or other
unperformed obligations of the seller, (iii) any obligations attributable to the exercise of appraisal rights and the settlement
of any claims or actions (whether actual, contingent or potential) with respect thereto or (iv) Indebtedness of any parent of
the Company appearing on the balance sheet of the Company, or solely by reason of push down accounting under GAAP. The Indebtedness
of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship
with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor. The amount
of Indebtedness of any Person for purposes of clause (e) above shall (unless such Indebtedness has been assumed by such Person)
be deemed to be equal to the lesser of (A) the aggregate unpaid amount of such Indebtedness and (B) the Fair Market Value of the
property encumbered thereby as determined by such Person in good faith. For all purposes hereof, the Indebtedness of the Company
and its Subsidiaries shall exclude intercompany liabilities arising from their cash management, tax, and accounting operations
and intercompany loans, advances or Indebtedness having a term not exceeding 364 days (inclusive of any rollover or extensions
of terms) and made in the ordinary course of business.

 

“Indemnified
Person” has the meaning assigned to such term in Section 10.8.

 

“Indemnified
Taxes” means (a) Taxes, other than Excluded Taxes and (b) to the extent not otherwise described in clause (a), Other
Taxes.

 

“Interest
Payment Date” means (a) the last day of each Interest Period and (b) the Maturity Date.

 

“Interest
Period” means the period commencing on the Effective Date and ending June 30, 2022 and, thereafter, each subsequent
three (3) month period ending on September 30, December 31, March 31 and June 30 of any applicable year.

 

“Interest
Rate” means LIBOR plus 3.0%.

 

    5 

    	 

    

“LIBOR”
means, for each Interest Period, a rate per annum equal to the London Interbank Offered Rate, as determined by ICE Benchmark Administration
Limited (or any successor or substitute therefor acceptable to the Holder) for U.S. dollar deposits for a three-month period as
obtained by the Holder from Reuters, Bloomberg or another commercially available source as may be designated by the Holder from
time to time, two (2) Business Days before the first day of such Interest Period; provided that in no event shall LIBOR be less
than zero.

 

“Lien”
means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security
interest in, on or of such asset and (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease
or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating
to such asset; provided that in no event shall an operating lease be deemed to constitute a Lien.

 

“Loan”
has the meaning assigned to such term in the first paragraph of this Note.

 

“Loan
Documents” means, collectively, this Note and all other documents, instruments, and agreements executed and delivered,
or acknowledged by the Obligor in connection with this Note, in each case excluding the Purchase Agreement and all other documents,
instruments, and agreements entered into in connection with the Purchase Agreement that are not specifically related to the Note.

 

“Maturity
Date” means March 27, 2025.

 

“Obligations”
means all of the obligations, indebtedness and liabilities of the Obligor to the Holder under this Note or any of the other Loan
Documents, including principal, interest, fees, expenses, reimbursements and indemnification obligations and other amounts, absolute
or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement
by or against the Obligor of any proceeding under any Debtor Relief Laws or other similar laws naming such Person as the debtor
in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.

 

“Obligor”
means the Company.

 

“Other
Connection Taxes” means Taxes imposed as a result of a present or former connection between the Holder and the jurisdiction
imposing such Tax (other than connections arising from the Holder having executed, delivered, become a party to, performed its
obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction
pursuant to or enforced any Loan Document, or sold or assigned an interest in the Note or any Loan Document).

 

“Other
Taxes” means all present or future stamp, court, documentary, intangible, recording, filing or similar Taxes that
arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt
or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other
Connection Taxes imposed with respect to an assignment.

 

“Parent”
has the meaning assigned to such term in the first paragraph of this Note.

 

    6 

    	 

    

“Person”
means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental
Authority, or other entity.

 

“Pro
Forma Total Leverage Ratio” means the Total Leverage Ratio determined as if all Specified Transactions that have
occurred during the applicable four consecutive fiscal quarter period or subsequent to such period and prior to or simultaneously
with the event for which the Pro Forma Total Leverage Ratio calculation is required to be made are deemed to have occurred as
of the first day of the applicable four consecutive fiscal quarter period.

 

“Purchase
Agreement” has the meaning assigned to such term in the first paragraph of this Note.

 

“Secured
Leverage Ratio” has the meaning assigned to, and shall be calculated pursuant to the terms of and using the other
relevant defined terms in, the Credit Agreement (as in effect on the Agreement Date); provided that the phrase “Parent Borrower
and its Restricted Subsidiaries” in such defined term and such other relevant defined terms shall be replaced with “Parent
and its Subsidiaries” for the purposes of making such calculation on a consolidated basis for the Company and its Subsidiaries.

 

“Specified
Transaction” means any incurrence of Indebtedness.

 

“Spread
Adjustment” has the meaning assigned to such term in Section 2.2.

 

“Subsidiary”
means, with respect to any Person (for purposes of this definition, the “parent”) at any date, any other Person
the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if
such financial statements were prepared in accordance with GAAP as of such date, as well as any other Person (a) of which more
than fifty percent (50%) of the Equity Interests or more than fifty percent (50%) of the ordinary voting power, are as of such
date, owned, controlled or held by the parent (either directly or through one or more intermediaries or both) or (b) the management
of which is, as of such date, otherwise controlled, by the parent (either directly or through one or more intermediaries or both).
Unless otherwise specified, “Subsidiary” means a Subsidiary of the Parent.

 

“Taxes”
means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments,
fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable
thereto.

 

“Total
Leverage Ratio” has the meaning assigned to, and shall be calculated pursuant to the terms of and using the other
relevant defined terms in, the Credit Agreement (as in effect on the Agreement Date); provided that the phrase “Parent Borrower
and its Restricted Subsidiaries” in such defined term and such other relevant defined terms shall be replaced with “Parent
and its Subsidiaries” for the purpose of making such calculation on a consolidated basis for the Company and its Subsidiaries.

 

“United
States” and “U.S.” mean the United States of America.

 

    7 

    	 

    

Section
1.2Interpretation

 

With
reference to this Note and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

 

(a)       The
definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine, and neuter forms. The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise
(i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions
on such amendments, supplements or modifications set forth herein), (ii) any reference herein to any Person shall be construed
to include such Person’s permitted successors and assigns, (iii) the words “herein”, “hereof” and
“hereunder”, and words of similar import when used in any Loan Document, shall be construed to refer to such Loan
Document in its entirety and not to any particular provision thereof, (iv) unless otherwise specified, all references in any Loan
Document to sections, exhibits and schedules shall be construed to refer to sections of, and exhibits and schedules to, the Loan
Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating,
amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer
to such law or regulation as amended, modified or supplemented from time to time, (vi) any table of contents, captions and headings
are for convenience of reference only and shall not affect the construction of this Note or any other Loan Document, and (vii)
the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to
any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

 

(b)       In
the computation of periods of time from a specified date to a later specified date, the word “from” means “from
and including;” the words “to” and “until” each mean “to but excluding;” and the word
“through” means “to and including.”

 

(c)       All
accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data required
to be submitted pursuant to this Agreement shall be prepared in conformity with GAAP, as in effect from time to time. If at any
time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and
either the Company or the Holder shall so request, the Company and the Holder shall negotiate in good faith to amend such ratio
or requirement to preserve the original intent thereof in light of such change in GAAP; provided that, until so amended,
such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein; provided,
further that all obligations of any Person that are or would have been treated as operating leases for purposes of GAAP
prior to the effectiveness of FASB ASC 842 shall continue to be accounted for as operating leases for purposes of all financial
definitions and calculations for purpose of this Note (whether or not such operating lease obligations were in effect on such
date) notwithstanding the fact that such obligations are required in accordance with FASB ASC 842 (on

 

    8 

    	 

    

a prospective
or retroactive basis or otherwise) to be treated as capital lease obligations in the financial statements.

 

Article
II 

interest and principal payments

 

Section
2.1Interest

 

The
Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate equal to the Interest
Rate for such Interest Period and shall be payable in arrears on each Interest Payment Date. Any overdue interest or principal
payment on this Note shall bear interest, payable on demand, for each day from and including the date payment thereof was due
to but excluding the date of actual payment, at a rate per annum equal to the rate that would otherwise be applicable thereto
plus 2.00% per annum. All interest hereunder shall be computed on the basis of a year of 365 days, and in each case shall be payable
for the actual number of days elapsed (including the first day but excluding the last day). The applicable LIBOR shall be determined
by the Holder and such determination shall be conclusive absent manifest error. Interest hereunder shall be due and payable in
accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any
Debtor Relief Law.

 

Section
2.2Ineffective Interest Rate; Benchmark Replacement

 

Notwithstanding
anything to the contrary contained herein:

 

(a)
       if the Holder and Parent jointly determine as to LIBOR or any other then-current Benchmark
at any time that for any reason:

 

(i)       such
Benchmark (or a published component used in the calculation thereof) is not available or is no longer being published, or adequate
and reasonable means otherwise do not exist for ascertaining such Benchmark,

 

(ii)       the
administrator for such Benchmark (or for a published component used in the calculation thereof) or any relevant agency or authority
(including such administrator’s regulatory supervisor or the U.S. Federal Reserve System) has announced that such Benchmark
(or component) will no longer be published, permanently or indefinitely (unless, at the time of such announcement, there is a
successor administrator that will continue to provide such Benchmark (or component)), or the regulatory supervisor of such Benchmark’s
administrator has announced that such Benchmark (or a published component used in the calculation thereof) is no longer representative,
or

 

(iii)       it
has become impractical or unlawful for the Holder to maintain the credit referenced herein based on such Benchmark,

 

the Holder
may, in consultation with Parent, substitute for LIBOR or such other then-current Benchmark, as applicable, an alternative index
rate (a “Benchmark Replacement”) (which may include, or to which the Holder may add, a spread adjustment, which
may be a positive or negative value or zero (a “Spread Adjustment”)), giving due consideration to any selection
or

 

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recommendation
of an alternative index rate and/or spread adjustment (or mechanism for determining such a rate and/or adjustment) by the Federal
Reserve Board and/or the Federal Reserve Bank of New York (the “FRB/NYFRB”), or any committee officially endorsed
or convened by the FRB/NYFRB, and/or any evolving or then-prevailing market conventions; provided that (A) if a condition
arises under clause (a)(i) above, then if and for so long as the Holder determines that such condition is likely to be temporary,
the Holder may, in consultation with Parent, substitute for the relevant Benchmark or component a value or rate (which may include,
or to which the Holder may add, a Spread Adjustment) on a temporary basis without limiting its right to reinstate such Benchmark
or component (or to substitute and implement a Benchmark Replacement) thereafter, and (B) a Benchmark Replacement based solely
on the condition described in clause (a)(iii) above will not take effect earlier than the 90th day before the expected date of
the then-current Benchmark’s (or any applicable component’s) non-publication as of such announcement. Notwithstanding
the foregoing, if at any time any Benchmark is not available or is no longer being published or if it has become impractical or
unlawful for the Holder to maintain the credit referenced herein based on such Benchmark, then, until the Holder, in consultation
with Parent, substitutes a different Benchmark Replacement for such Benchmark, the Benchmark Replacement shall be the Secured
Overnight Financing Rate (SOFR) and, for clarity, the Interest Rate shall be SOFR plus 3.0%.

 

Section
2.3Scheduled Principal Payments

 

(a)       This
Note shall not be subject to any required principal payment prior to the Maturity Date, other than as expressly set forth in Article
VII.

 

(b)       On
the Maturity Date, the Company shall pay the then-outstanding principal amount of this Note and all accrued and unpaid interest
thereon.

 

Section
2.4Optional Prepayment

 

The
Company may, at its option and upon notice, prepay at any time all, or from time to time any part of, this Note at 100% of the
principal amount so prepaid, plus accrued but unpaid interest through the prepayment date with respect to such principal amount,
but without any premium or penalty. Amounts prepaid or repaid may not be reborrowed.

 

Section
2.5Payments; Payment Dates

 

All
payments hereunder shall be made in Dollars by wire transfer of immediately available funds to such account as the Holder may
designate from time to time in writing to the Company. Whenever any payment of interest or principal under this Note is stated
to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and any such additional
days elapsed shall be reflected in the computation of the interest payable on such next succeeding Business Day.

 

    10 

    	 

    

Article
III 

TAXES

 

Section
3.1Payments Free of Taxes

 

Any
and all payments by or on account of any obligation of the Obligor hereunder or under any other Loan Document shall be made free
and clear of and without deduction or withholding for any Taxes; provided that if the Company shall be required by applicable
Law (as determined in the good faith discretion of the Company) to deduct or withhold any Taxes from such payments, then (i) the
Company shall make such deductions or withholdings, (ii) the Company shall timely pay the full amount deducted or withheld to
the relevant Governmental Authority in accordance with applicable Law and (iii) if such Tax is an Indemnified Tax, then the sum
payable by the Company shall be increased as necessary so that after such deduction or withholding has been made (including such
deductions and withholdings applicable to additional sums payable under this Article III), the Holder receives an amount
equal to the sum it would have received had no such deduction or withholding been made.

 

Section
3.2Tax Indemnification

 

The
Company shall indemnify the Holder, within ten (10) Business Days after demand therefor, for the full amount of any Indemnified
Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Article III) payable
or paid by the Holder or required to be withheld or deducted from a payment to the Holder and any reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Company by the Holder
shall be conclusive absent manifest error.

 

Section
3.3Evidence of Payments

 

Within
ten (10) Business Days after any payment of Taxes by the Company to a Governmental Authority pursuant to this Article III,
the Company shall deliver to the Holder the original or a certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Holder.

 

Section
3.4Survival

 

The
agreements and obligations of the Company and the Holder contained in this Article III shall survive the repayment, satisfaction,
replacement or discharge, in full or in part, of the Loan or any other obligations under the Loan Documents and the termination
of this Note or any other Loan Document.

 

Section
3.5Treatment of Certain Refunds

 

If
the Holder determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which
it has been indemnified pursuant to this Article III (including by the payment of additional amounts pursuant to this Article
III), it shall pay to the Company an

 

    11 

    	 

    

amount equal
to such refund (but only to the extent of indemnity payments made under this Article III with respect to the Taxes giving
rise to such refund), net of all out-of-pocket expenses (including Taxes) of the Holder and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund). The Company, upon the request of the Holder, shall repay
to the Holder the amount paid over pursuant to this Article III (plus any penalties, interest or other charges imposed
by the relevant Governmental Authority) in the event that the Holder is required to repay such refund to such Governmental Authority.
Notwithstanding anything to the contrary in this Section 3.5, in no event will the Holder be required to pay any amount
to the Company pursuant to this Section 3.5 the payment of which would place the Holder in a less favorable net after-Tax
position than the Holder would have been in if the Tax subject to indemnification and giving rise to such refund had not been
deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never
been paid. This paragraph shall not be construed to require the Holder to make available its Tax returns (or any other information
relating to its Taxes that it deems confidential) to the Company or any other Person.

 

Section
3.6Status of Holder

 

If
the Holder is entitled to an exemption from or reduction of withholding Tax with respect to payments made under the Loan, the
Holder shall deliver to the Company, at the time or times reasonably requested by the Company, such properly completed and executed
documentation reasonably requested by the Company as will permit such payments to be made without withholding or at a reduced
rate of withholding. In addition, the Holder, if reasonably requested by the Company, shall deliver such other documentation prescribed
by applicable Law or reasonably requested by the Company as will enable the Company to determine whether or not the Holder is
subject to backup withholding or information reporting requirements.

 

Article
IV 

AFFIRMATIVE COVENANTS

 

Beginning
on the Effective Date and thereafter until all Obligations are Fully Satisfied:

 

Section
4.1Financial Statements

 

(a)       As
soon as practicable and in any event within ninety (90) days (or, if earlier, on the date of any required public filing thereof)
after the end of each fiscal year of the Parent, the Company shall deliver to the Holder an audited consolidated balance sheet
of the Parent and its Subsidiaries as of the close of such fiscal year and audited consolidated statements of operations and comprehensive
income, stockholders’ equity and cash flows including the notes thereto, all in reasonable detail setting forth in comparative
form the corresponding figures as of the end of and for the preceding fiscal year and prepared in accordance with GAAP and, if
applicable, containing disclosure of the effect on the financial position or results of operations of any change in the application
of accounting principles and practices during the year. Such annual financial statements shall be audited by an independent certified
public accounting firm of recognized national standing and accompanied by a report and opinion thereon by such certified public
accountants prepared in accordance with generally accepted auditing standards.

 

    12 

    	 

    

(b)       As
soon as practicable and in any event within forty-five (45) days (or, if earlier, on the date of any required public filing thereof)
after the end of the first three fiscal quarters of each fiscal year of the Parent, the Company shall deliver to the Holder an
unaudited consolidated balance sheet of the Parent and its Subsidiaries as of the close of such fiscal quarter and unaudited consolidated
statements of operations and comprehensive income, stockholders’ equity and cash flows including the notes thereto, all
in reasonable detail setting forth in comparative form the corresponding figures as of the end of and for the corresponding period
in the preceding fiscal year and prepared by the Parent in accordance with GAAP and, if applicable, containing disclosure of the
effect on the financial position or results of operations of any change in the application of accounting principles and practices
during the period, and certified by the chief financial officer of the Parent to present fairly in all material respects the financial
condition of the Parent and its Subsidiaries on a consolidated basis as of their respective dates and the results of operations
of the Parent and its Subsidiaries for the respective periods then ended, subject to normal year-end adjustments and the absence
of footnotes.

 

(c)       Documents
required to be delivered pursuant to Section 4.1(a) or Section 4.1(b) (to the extent any such documents are included
in materials otherwise filed with the U.S. Securities and Exchange Commission, or any Governmental Authority succeeding to any
of its principal functions) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the
date on which the Borrower posts such documents, or provides a link thereto on the Parent’s website.

 

Section
4.2Compliance Certificate

 

On
or before the date that is 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Parent,
and on or before the date that is 90 days after the end of each fiscal year of the Parent, the Company shall deliver to the Holder
a certificate certified by a Financial Officer demonstrating compliance with the covenant set forth in Section 5.2 as of
the end of each such fiscal period, in a form reasonably acceptable to the Holder.

 

Section
4.3Further Assurances

 

The
Company shall execute any and all further documents, agreements and instruments, and take all such further actions, which may
be required under any applicable Law, or which the Holder may reasonably request, to effectuate the transactions contemplated
by the Loan Documents all at the expense of the Company.

 

Article
V 

NEGATIVE COVENANTS

 

Beginning
on the Effective Date and thereafter until all Obligations are Fully Satisfied, Parent shall not, nor shall Parent permit any
of its Subsidiaries to:

 

Section
5.1Indebtedness

 

Create,
incur, assume or permit to exist any Indebtedness, except Indebtedness that (i) after giving effect to the incurrence of any such
Indebtedness and the use of proceeds thereof the Pro

 

    13 

    	 

    

Forma Total
Leverage Ratio is equal to or less than 5.00 to 1.00 and (ii) does not mature prior to the Maturity Date (except that this clause
(ii) shall not apply to (x) an aggregate outstanding principal amount of secured Indebtedness of $150,000,000 at any time or (y)
any Indebtedness other than the types described in clauses (a) and (b) of the definition thereof).

 

Section
5.2Financial Covenant

 

As
of the end of each fiscal quarter of the Parent, permit the Secured Leverage Ratio to be greater than 3.50:1.0.

 

Article
VI 

EVENTS OF DEFAULT

 

Section
6.1Events of Default

 

An
“Event of Default” shall exist if any of the following conditions or events shall occur and be continuing:

 

(a)       the
Obligor shall fail to pay any principal of any Loan when and as the same shall become due and payable, whether at the due date
thereof or at a date fixed for prepayment thereof or otherwise;

 

(b)       the
Obligor shall fail to pay any interest on any Loan or any other amount (other than an amount referred to in clause (a) of this
Section 6.1) payable under this Note or under any other Loan Document, when and as the same shall become due and payable,
and such failure shall continue unremedied for a period of five (5) or more Business Days; and

 

(c)       the
Obligor shall fail to observe or perform any other covenant, condition or agreement contained in Article IV or Article
V and such failure shall continue unremedied for a period of twenty (20) or more Business Days;

 

(d)       an
involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization, conservatorship,
bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency or other relief in respect
of the Obligor or any of its Subsidiaries or debts, or of a substantial part of its assets, under any Debtor Relief Laws or (ii)
the appointment of a receiver, trustee, custodian, sequestrator, conservator, liquidator, rehabilitator, or similar official for
the Obligor or any of its Subsidiaries or for a substantial part of its or their assets, and, in any such case, such proceeding
or petition shall continue undismissed for a period of sixty (60) or more consecutive days or an order or decree approving or
ordering any of the foregoing shall be entered;

 

(e)       the
Obligor or any of its Subsidiaries shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization,
conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, or
other relief under any Debtor Relief Laws now or hereafter in effect, (ii) consent to the institution of, or fail to contest in
a timely and appropriate manner, any proceeding or petition described in clause (d) of this Section 6.1, (iii) apply for
or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator, liquidator, rehabilitator, or similar
official for the Obligor or

 

    14 

    	 

    

any of its
Subsidiaries or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed
against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the
purpose of effecting any of the foregoing;

 

(f)       a
Change in Control shall occur or the Parent shall sell, transfer, lease or otherwise dispose of (in one transaction or in a series
of transactions) all or substantially all of its assets (in each case, whether now owned or hereafter acquired);

 

(g)       a
default by the Parent or any of its Subsidiaries with respect to any one or more mortgages, agreements or other instruments under
which there is outstanding, or by which there is secured or evidenced, any Indebtedness for money borrowed with an aggregate principal
amount exceeding the greater of (i) $26,000,000 and (ii) 25% of Consolidated EBITDA (as defined in the Credit Agreement as of
the Agreement Date) for the most recently ended Test Period (as defined in the Credit Agreement as of the Agreement Date) at such
time (or its foreign currency equivalent) in the aggregate of the Parent and its Subsidiaries, whether such indebtedness exists
as of the Effective Date or is thereafter created, to the extent that such default results in such Indebtedness becoming due prior
to its scheduled maturity or enables or permits (with all applicable grace periods having expired) the holder or holders of any
such Indebtedness or any trustee or agent on its or their behalf to cause any such Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity, or a failure by the Parent or any of
its Subsidiaries to make any payment (whether of principal or interest and regardless of amount) in respect of any such Indebtedness,
when and as the same shall become due and payable (after giving effect to any applicable grace period); provided that this clause
(g) shall not apply to (x) secured Indebtedness that becomes due according to its terms as a result of the sale, transfer or other
disposition (including as a result of a casualty or condemnation event) of the property or assets securing such Indebtedness or
(y) any breach or default that is (I) remedied by the Parent or its applicable Subsidiary or (II) waived (including in the form
of amendment) by the required holders of the applicable item of Indebtedness, in the case of (I) and (II), prior to the acceleration
of Loans pursuant to Section 7.1; or

 

(h)       any
material provision of any Loan Document shall for any reason be asserted by the Obligor not to be a legal, valid and binding obligation
of the Obligor thereto other than as expressly permitted hereunder or thereunder.

 

Article
VII 

REMEDIES ON DEFAULT, ETC.

 

Section
7.1Acceleration

 

(a)       If
an Event of Default with respect to the Company described in clauses (d) or (e) of Section 6.1 has occurred, this Note
then shall automatically become immediately due and payable.

 

(b)       If
any Event of Default (other than as described in clause (a) of this Section 7.1) has occurred and is continuing, the Holder
may, at any time at its option by written notice to the Company, declare this Note to be immediately due and payable.

 

    15 

    	 

    

(c)       Upon
this Note becoming due and payable under this Section 7.1, whether automatically or by declaration, this Note will forthwith
mature and the entire unpaid principal amount of this Note, plus all accrued and unpaid interest, shall all be immediately due
and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.

 

Section
7.2Other Remedies

 

If
any Event of Default has occurred and is continuing, and irrespective of whether this Note has become or has been declared immediately
due and payable under Section 7.1, the Holder may proceed to protect and enforce its rights by an action at law, suit in
equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein, or for an injunction
against a violation of any of the terms hereof, or in aid of the exercise of any power granted hereby or by law or otherwise.

 

Section
7.3Rescission

 

At
any time after this Note has been declared due and payable pursuant to clause (b) of Section 7.1, the Holder, by written
notice to the Company, may (but in no event shall be obligated to) rescind and annul any such declaration and its consequences.
No rescission and annulment under this Section 7.3 will extend to or affect any subsequent Default or Event of Default
or impair any right consequent thereon.

 

Article
VIII 

AMENDMENT OR WAIVER

 

Section
8.1Requirements

 

Neither
this Note, nor any other Loan Document nor any provision hereof or thereof may be waived, amended or modified except pursuant
to an agreement or agreements in writing entered into by the Company and the Holder.

 

Section
8.2Binding Effect, No Deemed Waivers; Remedies Cumulative, Etc.

 

(a)       Any
amendment or waiver consented to as provided in this Article VIII is binding upon the Holder, each subsequent holder of
this Note and upon the Company without regard to whether this Note has been marked to indicate such amendment or waiver.

 

(b)       No
failure or delay by the Holder in exercising any right or power hereunder or under any other Loan Document shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps
to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.
The rights and remedies of the Holder hereunder and under the other Loan Documents are cumulative and are not exclusive of any
rights or remedies that it would otherwise have. No waiver of any provision of any Loan Document or consent to any departure by
the Obligor therefrom shall in any event be effective unless the same shall be permitted by Section 8.1, and then such
waiver or consent shall be effective only in the specific instance and for the purpose for which given.

 

    16 

    	 

    

(c)       As
used herein, the term “this Note” and references hereto shall mean this Note as it may from time to time be amended
or supplemented.

 

Article
IX 

NOTICES

 

Section
9.1Notices

 

All
notices, requests, claims, demands and other communications under this Note shall be in writing and shall be deemed to have been
duly given or made as follows: (a) if sent by reputable overnight courier service (charges prepaid), upon receipt, (b) if sent
by nationally recognized overnight air courier, one (1) Business Day after mailing, (c) if sent by email (with confirmation of
delivery), on the date sent to such recipient if sent during the normal business hours of the recipient, and on the next Business
Day if sent after the normal business hours of the recipient, and (d) if otherwise actually personally delivered, when delivered,
provided that such notices, requests, demands and other communications are delivered to the address set forth below, or
to such other address as the applicable party shall provide by like notice to the other party:

 

(i)       if
to the Holder, to it at

 

Cree,
Inc.

4600
Silicon Dr.

Durham,
North Carolina 27703

Email:
bkohn@cree.com

Attention:
Bradley D. Kohn, General Counsel and Corporate Secretary

 

with
a copy to (not constituting notice):

 

Smith,
Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P.

Wells
Fargo Capitol Center

150
Fayetteville Street, Suite 2300

Raleigh,
North Carolina 27601

Email:
groach@smithlaw.com

Attention:
Gerald F. Roach

 

(ii)       if
to any subsequent holder of this Note, to such holder at such address as such holder shall have specified to the Company in writing,
or

 

(iii)       if
to the Company, to it at

 

SMART Global Holdings, Inc. 

c/o
SMART Modular Technologies, Inc.

Legal
Department

39870
Eureka Dr.

Newark,
California 94560

Email:
Bruce.Goldberg@smartm.com

Attention:
Bruce Goldberg

 

    17 

    	 

    

with
a copy to (not constituting notice):

 

O’Melveny &
Myers LLP

2765 Sand Hill Road

Menlo Park, California 94025

Attention: Warren Lazarow

E-mail: wlazarow@omm.com

 

and

 

O’Melveny &
Myers LLP

610 Newport Center Drive, 17th Floor

Newport Beach, California 92660

Attention: Andor D. Terner and Nikole Kingston

E-mail: aterner@omm.com; nkingston@omm.com

 

Article
X 

MISCELLANEOUS

 

Section
10.1Successors and Assigns

 

All
covenants and other agreements contained in this Note by or on behalf of any of the parties hereto shall bind and inure to the
benefit of their respective successors and assigns, provided that the Company may not assign or otherwise transfer any
of its rights or obligations hereunder without the prior written consent of the Holder and the Holder may assign or otherwise
transfer any of its rights or obligations hereunder with the prior written consent of the Company (such consent not to be unreasonably
withheld).

 

Section
10.2Certain Pledges

 

The
Holder may at any time pledge or assign a security interest in all or any portion of its rights under this Note to secure obligations
of the Holder; provided that no such pledge or assignment shall release the Holder from any of its obligations hereunder
or substitute any such pledgee or assignee for the Holder as a party hereto.

 

Section
10.3Severability

 

Any
provision of this Note that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such
provision in any other jurisdiction.

 

Section
10.4Construction

 

Each
covenant contained in this Note shall be construed (absent express provision to the contrary) as being independent of each other
covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed
to excuse

 

    18 

    	 

    

compliance
with any other covenant. Where any provision in this Note refers to action to be taken by any Person, or which such Person is
prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.
The article and section headings contained in this Note are for reference purposes only and shall not affect the meaning or interpretation
of this Note.

 

Section
10.5Integration

 

This
Note embodies the entire agreement and understanding between the Company and the Holder and supersedes all prior agreements and
understandings relating to the subject matter hereof.

 

Section
10.6Lost, Stolen, Destroyed or Mutilated Note

 

Upon
receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note and of indemnity
arrangements reasonably satisfactory to the Company from or on behalf of the holder of this Note, and upon surrender or cancellation
of this Note if mutilated, the Company shall make and deliver a new note of like tenor in lieu of such lost, stolen, destroyed
or mutilated Note, at the Holder’s expense.

 

Section
10.7Confidentiality

 

During
the term of this Note, the provisions of Section 6.2 and Section 6.10 of the Purchase Agreement are incorporated herein, mutatis
mutandis, as if a part hereof.

 

Section
10.8Expenses; Indemnity

 

(a)       Costs
and Expenses. The Company agrees to promptly pay, not later than thirty (30) days following written demand therefor, all
reasonable and documented out-of-pocket expenses incurred by the Holder, including the reasonable and documented fees, charges
and disbursements of in the case of the Holder, one primary counsel, one local counsel in each relevant jurisdiction, and one
specialty counsel for each relevant specialty area, in each case in connection with the enforcement or protection of the Holder’s
rights in connection with this Note and the other Loan Documents, including its rights under this Section 10.8, and including
in connection with any bankruptcy or insolvency proceeding, workout, restructuring or related negotiations in respect thereof.

 

(b)       Indemnification.
The Obligor will indemnify the Holder and its Affiliates and their respective, partners, directors, officers, agents, representatives
and advisors (each, an “Indemnified Person”) and hold them harmless from and against all liabilities, damages,
claims, costs and expenses (including reasonable and documented fees, disbursements, settlement costs and other charges of one
primary legal counsel (and, in the case of an actual or perceived conflict of interest where the Indemnified Person affected by
such conflict notifies the Obligor of the existence of such conflict and thereafter retains its own counsel, of another firm of
counsel for such affected Indemnified Person) and one local counsel in each relevant jurisdiction, in each case, on behalf of
the Holder) relating to this Note; provided that no Indemnified Person will have any

 

    19 

    	 

    

right to
indemnification for any of the foregoing to the extent resulting from (i) the gross negligence, material breach in bad faith or
willful misconduct of the Loan Documents by, the relevant Indemnified Person or any of its Affiliates or their respective partners,
directors, officers, employees, agents, advisors or other representatives as determined by a final, non-appealable judgment of
a court of competent jurisdiction or (ii) any dispute solely among the Indemnified Persons (other than any claims arising out
of any act or omission of the Company or any of its affiliates). This Section 10.8(b) shall not apply with respect to Taxes
other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

Section
10.9Governing Law; Consent to Jurisdiction

 

This
Note shall be interpreted and construed in accordance with the laws of the State of New York. Any and all claims, controversies,
and causes of action arising out of or relating to this Note, whether sounding in contract, tort, or statute, shall be governed
by the laws of the State of New York, including its statutes of limitations, without giving effect to any conflict-of-laws rule
that would result in the application of the laws of a different jurisdiction. Each of the parties hereby irrevocably and unconditionally
submits, for itself and its assets and properties, to the exclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court
from any thereof, and each of the parties consents to the jurisdiction of such courts (and of the appropriate appellate courts)
in any such claim, controversy, or cause of action and waives any objection to venue laid therein. Process in any such claim,
controversy, or cause of action referred to in the preceding sentence may be served on any party anywhere in the world using any
of the means described in Section 9.1, which the parties agree shall constitute effective service of process.

 

Section
10.10Right of Setoff

 

If
an Event of Default shall have occurred and be continuing, the Holder and each of its Affiliates is hereby authorized at any time
and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency)
at any time due and owing, by the Holder or any such Affiliate, to or for the credit or the account of the Obligor against any
and all of the obligations of the Obligor now or hereafter existing under this Note or any other Loan Document to the Holder or
its Affiliates, irrespective of whether or not the Holder or any such Affiliate shall have made any demand under this Note or
any other Loan Document and although such obligations of the Obligor may be contingent or unmatured or are owed to an Affiliate
of the Holder different from the Affiliate holding such deposit or obligated on such indebtedness. The rights of the Holder and
its Affiliates under this Section 10.10 are in addition to other rights and remedies (including other rights of setoff)
that the Holder or its Affiliates may have. The Holder agrees to notify the Company promptly after any such setoff; provided
that the failure to give such notice shall not affect the validity of such setoff and application.

 

SIGNATURE
PAGE FOLLOWS

 

    20 

    	 

    

IN
WITNESS WHEREOF, the undersigned has executed and delivered this Promissory Note as of the Effective Date.

 

	 	SMART
GLOBAL HOLDINGS, INC.

	 	 
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

 

Agreed and Acknowledged by:

 

  

CREE, INC.

 

 

	By:	 	 
	Name:	 	 
	Title:Document

Exhibit 4.3

DESCRIPTION OF THE COMPANY’S CAPITAL STOCK REGISTERED PURSUANT TO SECTION 12 OF THE  SECURITIES EXCHANGE ACT OF 1934

The following description of our capital stock registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to the complete text of our Second Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) and our Second Amended and Restated Bylaws (the “Bylaws”), each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.3 is a part. We encourage you to read our Certificate of Incorporation, our Bylaws and the applicable provisions of the General Corporation Law of the State of Delaware (the “DGCL”), Title 8 of the Delaware Code for additional information.

The authorized capital stock of Smart Sand, Inc. consists of 350,000,000 shares of common stock, $0.001 par value per share (“common stock”), and 10,000,000 shares of preferred stock, $0.001 par value per share (“preferred stock”). Our preferred stock is not registered pursuant to Section 12 of the Exchange Act.

As of February 24, 2021, 45,046,794 shares of common stock were issued and 43,410,521 shares of common stock were outstanding. 

Common Stock

Dividend Rights

Subject to the rights of any holders of any outstanding shares or series of preferred stock, holders of common stock are entitled to the payment of dividends when and as declared by our board of directors in accordance with applicable law and to receive other distributions.

Voting Rights

Except as provided by law or in a preferred stock designation, holders of common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders, have the exclusive right to vote for the election of directors and do not have cumulative voting rights. Except as otherwise required by law, holders of common stock are not entitled to vote on any amendment to the Certificate of Incorporation (including any certificate of designations relating to any series of preferred stock) that relates solely to the terms of any outstanding series of preferred stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to the Certificate of Incorporation (including any certificate of designations relating to any series of preferred stock) or pursuant to the DGCL.

Liquidation Rights

Subject to the rights of any holders of any outstanding shares or series of preferred stock, in the event of any liquidation, dissolution or winding up of our affairs, whether voluntary or involuntary, our funds and assets, to the extent they may be legally distributed to holders of common stock, shall be distributed among the holders of the then outstanding common stock pro rata in accordance with the number of shares of common stock held by each such holder.

Other Rights and Preferences

All outstanding shares of common stock are fully paid and non-assessable. The holders of common stock have no pre-emptive or other subscription rights.

Classification of the Board of Directors

Our Certificate of Incorporation divide our board of directors into three classes, as nearly equal in number as possible, with staggered three-year terms. Subject to our stockholders agreement, under our Certificate of Incorporation and our Bylaws, any vacancy on our board of directors, including a vacancy resulting from an enlargement of our board of directors, may be filled only by the affirmative vote of a majority of our directors then in office, even though less than a quorum of the board of directors. 

Listing
Our common stock is traded on the NASDAQ Global Select Market under the symbol, “SND.”

Anti-Takeover Effects of Provisions of Our Certificate of Incorporation and our Bylaws 

Provisions of our Certificate of Incorporation and Bylaws may delay or discourage transactions involving an actual or potential change in control or change in our management, including transactions in which stockholders might otherwise receive a premium for their shares, or transactions that our stockholders might otherwise deem to be in their best interests. Therefore, these provisions could adversely affect the price of our common stock. 

Among other things our Certificate of Incorporation and Bylaws: 

•establish advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for election as directors or new business to be brought before meetings of our stockholders. These procedures provide that notice of stockholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is to be taken. Generally, to be timely, notice must be received at our principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date of the annual meeting for the preceding year. Our Bylaws specify the requirements as to form and content of all stockholders’ notices. These requirements may preclude stockholders from bringing matters before the stockholders at an annual or special meeting; 

•provide our board of directors the ability to authorize undesignated preferred stock. This ability makes it possible for our board of directors to issue, without stockholder approval, preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of us. These and other provisions may have the effect of deferring hostile takeovers or delaying changes in control or management of our company; 

•provide that our board of directors will be divided into three classes, as nearly equal in number as possible, with staggered three-year terms; 

•subject to the stockholders agreement, provide that the size of our board of directors may be changed only by resolution of the board of directors; 

•subject to the stockholders agreement, provide that all vacancies, including newly created directorships, shall, except as otherwise required by law or, if applicable, the rights of holders of a series of preferred stock, be filled exclusively by the affirmative vote of a majority of directors then in office, even if less than a quorum; 

•provide that any action required or permitted to be taken by the stockholders must be effected at a duly called annual or special meeting of stockholders and may not be effected by any consent in writing in lieu of a meeting of such stockholders, subject to the rights of the holders of any series of preferred stock with respect to such series; 

•provide that our stockholders may only amend or repeal our Bylaws with the affirmative vote of at least 66 2/3% of the voting power of the outstanding shares of our stock entitled to vote; 

•provide that special meetings of our stockholders may only be called by the board of directors (except that Clearlake Capital Group, L.P., together with its affiliates and related persons, and Charles E. Young (each, a “Principal Stockholder”) may also call special meetings of our stockholders so long as such Principal Stockholder beneficially owns at least 20% of the voting power of the outstanding shares of our stock); 

•provide that our stockholders may only amend our Certificate of Incorporation with the affirmative vote of at least 66 2/3% of the voting power of the outstanding shares of our stock entitled to vote; 

•provide that, subject to the rights of the preferred stockholders and the stockholders agreement, if any, any director may be removed only upon the affirmative vote of the holders of at least 66 2/3% of the voting power of the outstanding shares of our stock entitled to vote; and 

•provide that our Bylaws can be amended or repealed by the board of directors.

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