Document:

Exhibit 1014 QuantisenseStockPurchaseAgreementExecutionVersion

STOCK PURCHASE AGREEMENT
dated as of
October 17, 2014
by and among
QuantiSense, Inc.
(as the “Company”),
the Shareholders of QuantiSense, Inc.
(as “Sellers”),
Jeff Buck
(as “Sellers’ Representative”)
and
Epicor Software Corporation
(as “Buyer”)

ARTICLE 1 DEFINITIONS1
Section 1.1Defined Terms.    1
Section 1.2Other Defined Terms.    13
ARTICLE 2 PURCHASE AND SALE OF PURCHASED SHARES15
Section 2.1Transfer of Purchased Shares.    15
Section 2.2Consideration for Purchased Shares.    15
Section 2.3Treatment of Option Plan, Options and Other Equity Interests.    16
Section 2.4Escrow.    17
Section 2.5Adjustments.    17
Section 2.6Earnout.    21
Section 2.7Withholding.    23
ARTICLE 3 CLOSING24
Section 3.1Time and Place of Closing.    24
Section 3.2Pre-Closing Deliveries.    24
Section 3.3Deliveries by Sellers.    24
Section 3.4Deliveries by Buyer.    25
		
	 REPRESENTATIONS AND WARRANTIES OF EACH SELLER AND THE COMPANY
	25

Section 4.1Organization of the Company.    25

i

Section 4.2Capital Stock; Indebtedness.    26
Section 4.3Authorization.    27
Section 4.4Subsidiaries.    27
Section 4.5Financial Statements; Minute Books.    27
Section 4.6Properties and Insurance.    28
Section 4.7Contracts and Commitments.    30
Section 4.8Absence of Undisclosed Liabilities.    31
Section 4.9No Conflict or Violation.    31
Section 4.10Consents and Approvals.    31
Section 4.11Litigation.    32
Section 4.12Compliance with Law; Permits and Licenses.    32
Section 4.13No Brokers.    32
Section 4.14Intellectual Property and Technology.    33
Section 4.15Taxes.     35
Section 4.16Employee Benefit Plans.    37
Section 4.17Environmental Liability.    39
Section 4.18Receivables.    39
Section 4.19Absence of Certain Changes or Events.    40
Section 4.20Labor Matters.    40

ii

Section 4.21Transactions with Affiliates.    41
Section 4.22Sufficiency of Assets.    42
Section 4.23No Regulatory Impediment.    42
Section 4.24Customers.    42
Section 4.25Bank Relationships.    42
Section 4.26Illegal Payments.    42
ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF BUYER42
Section 5.1Organization of Buyer.    43
Section 5.2Authorization.    43
Section 5.3Consents and Approvals.    43
Section 5.4No Brokers.    43
Section 5.5No Conflict or Violation.    43
Section 5.6Financial Ability.    44
Section 5.7Acquisition of Purchased Shares.    44
ARTICLE 6 ACTIONS BY THE COMPANY, SELLERS AND BUYER PRIOR TO THE CLOSING44
Section 6.1Maintenance of Business.    44
Section 6.2Certain Prohibited Transactions.    45
Section 6.3Access.    47

iii

Section 6.4Regulatory Approvals.    47
Section 6.5Efforts to Close.    47
Section 6.6Consents and Waivers of Third Parties.    47
Section 6.7Section 280G.    48
Section 6.8Exclusive Dealing.    48
Section 6.9No Transfer of Stock.    49
Section 6.10Updated Disclosure Schedule.    49
Section 6.11Financial Statements; Access to Financial and Other Information.    49
Section 6.12D&O Insurance.    49
Section 6.13Founders Agreement.    50
Section 6.14Indirect Tax Liabilities.    50
ARTICLE 7 CONDITIONS TO THE COMPANY’S AND SELLERS’ OBLIGATIONS50
Section 7.1Representations, Warranties and Covenants.    50
Section 7.2No Governmental Orders.    51
Section 7.3Corporate Authority.    51
Section 7.4Escrow Agreement.    51
ARTICLE 8 CONDITIONS TO BUYER’S OBLIGATIONS51
Section 8.1Representations, Warranties and Covenants.    51

iv

Section 8.2Consents.    51
Section 8.3No Governmental Orders.    52
Section 8.4Payoff Letters.    52
Section 8.5No Material Adverse Effect.    52
Section 8.6Employment.    52
Section 8.7Option and Warrant Cancellation.    52
Section 8.8Section 280G.    52
ARTICLE 9 ACTIONS BY SELLERS AND BUYER AFTER THE CLOSING52
Section 9.1Confidentiality.    52
Section 9.2Further Assurances.    53
Section 9.3Noncompetition and Nonsolicitation.    53
Section 9.4Post-Closing Cooperation and Retention of Records.    54
Section 9.5Indemnification of Directors and Officers.    55
Section 9.6Continuing Employees.      55
ARTICLE 10 INDEMNIFICATION AND MUTUAL RELEASE56
Section 10.1Indemnification by Sellers.    56
Section 10.2Indemnification by Buyer.    58
Section 10.3Coordination with Tax Indemnity.    59

v

Section 10.4Indemnification Procedure; Third-Party Claims.    59
Section 10.5Procedure for Indemnification – Other Claims.    62
Section 10.6Payment of Amounts Due for Indemnification.    62
Section 10.7Mutual Release.    62
ARTICLE 11 TAXES64
Section 11.1Transfer Taxes.    64
Section 11.2Indemnification for Taxes.    64
Section 11.3Payments.    66
Section 11.4Tax Returns.    66
Section 11.5Contest Provisions.    68
Section 11.6Tax Sharing Agreements.    68
Section 11.7Assistance and Cooperation.    68
Section 11.8Retention of Records.    69
Section 11.9Sellers Not Foreign Persons.    69
Section 11.10Other.        69
ARTICLE 12 MISCELLANEOUS70
Section 12.1Termination.    70
Section 12.2Effect of Termination.    71

vi

Section 12.3Assignment.    71
Section 12.4Notices.    71
Section 12.5Press Releases or Public Announcements.    72
Section 12.6Entire Agreement.    73
Section 12.7Counterparts.    73
Section 12.8Headings.    73
Section 12.9Disclosure Schedules.    73
Section 12.10Sellers’ Representative.    74
Section 12.11Governing Law.    75
Section 12.12Amendments, Modifications and Waivers.    76
Section 12.13Severability.    76
Section 12.14Expenses.    76
Section 12.15Construction.    76
Section 12.16Incorporation of Exhibits and Schedules.    77
Section 12.17Specific Performance.    77
Section 12.18Attorneys’ Fees.    77
Section 12.19Consent to Jurisdiction.    78
Section 12.20Waiver of Trial by Jury.    78

vii

Section 12.21Time of the Essence; Computation of Time.    78

viii

LIST OF SCHEDULES
	
		
	Number
	Description

	I
	Pro Rata Percentage; Purchase Price Distribution

	1.1
	Working Capital Calculation Example

	2.5(a)
	Indirect Tax Liabilities

	2.6(a)
	Earnout Payment

	4.2(a)
	Capital Stock

	4.2(b)
	Seller Ownership of Stock

	4.2(d)
	Outstanding Indebtedness

	4.6(b)
	Leases

	4.6(c)
	Insurance Policies and Bonds

	4.6(d)
	Encumbrances on Personal Property

	4.7(a)
	Material Contracts and Commitments

	4.7(b)
	Invalid Contracts

	4.7(d)
	Enforceability of Material Contracts

	4.8
	Undisclosed Liabilities

	4.9
	No Conflict or Violation

	4.10
	Consents and Approvals

	4.12(a)
	Compliance with Law; Permits and Licenses

	4.12(b)
	Permits

	4.14(a)
	Intellectual Property and Technology

	4.14(a)(i)
	Company Intellectual Property

	4.14(a)(ii)
	Company Owned Information Technology

	4.14(b)
	Intellectual Property and Information Technology

	4.15
	Taxes

	4.16(a)
	Company Employee Benefit Plans

	4.16(d)
	Company Qualified Plans/IRS Favorable Determination

	4.16(h)
	Additional Compensation or Benefits

	4.16(i)
	Health and Death Benefits

	4.18
	Receivables

	4.19
	Absence of Certain Changes or Events

	4.20(a)
	Employees

	4.20(f)
	Independent Contractors, Consultants or Agents

	4.21
	Transactions with Affiliates

	4.24
	Customers

	4.25
	Bank Relationships

	6.2(c)
	Material Encumbrances

	6.2(d)
	Material Capital Expenditures

	6.2(f)
	Acquisitions or Dispositions of Assets

	
		
	Number
	Description

	6.2(p)
	Affiliate Transactions

	8.2
	The Company and Seller Consents

	8.4
	Payoff Letters

LIST OF EXHIBITS
Exhibit A    List of QuantiSense, Inc. Shareholders
Exhibit B    Escrow Agreement
Exhibit C    Employment Agreements

STOCK PURCHASE AGREEMENT
This Stock Purchase Agreement, dated as of October 17, 2014, is by and among QuantiSense, Inc., a District of Columbia corporation (the “Company”), the shareholders of the Company as more specifically set forth in the attached Exhibit A (collectively, the “Sellers” and each a “Seller”), Jeff Buck, as Sellers’ Representative, and Epicor Software Corporation, a Delaware corporation (“Buyer”).
RECITALS
A.    The Company is authorized to issue common stock, $0.01 par value per share (the “Stock”), all issued and outstanding shares of which are owned by Sellers.
B.    The Company is engaged in the business of providing data warehousing and retail analytics and related services to specialty retailers in the United States and Canada (the “Business”).
C.    Buyer desires to purchase from Sellers, and Sellers desire to sell to Buyer, all of the outstanding shares of Stock (the “Purchased Shares”), subject to the terms and conditions of this Agreement, for aggregate consideration of up to $24,000,000 (including the maximum Earnout Amounts payable to Sellers pursuant to Section 2.6).
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

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ARTICLE 1     
DEFINITIONS
Section 1.1    Defined Terms.
As used herein, the terms below shall have the following meanings:
“2015 Earnout Amount” means, if the 2015 Earnout Revenue is $12,000,000 or greater, an amount (not to be less than zero) equal to (a) $2,000,000, reduced by (b) any Losses for which it is determined pursuant to Article 10 or Article 11 hereof that a Buyer Indemnified Party is entitled to indemnification and which Losses have not previously been satisfied from the Buyer Indemnification Amount or otherwise at the time of the payment of the 2015 Earnout Amount.
“2016 Earnout Amount” means an amount (not to be less than zero) equal to:  (a) if the 2016 Earnout Revenue is at least $16,000,000 but less than $18,000,000, (i) $2,000,000, reduced by (ii) any Losses for which it is determined pursuant to Article 10 or Article 11 hereof that a Buyer Indemnified Party is entitled to indemnification and which Losses have not previously been satisfied from the Buyer Indemnification Amount or otherwise at the time of the payment of the 2016 Earnout Amount; (b) if the 2016 Earnout Revenue is at least $18,000,000 but less than $20,000,000, (i) $4,000,000, reduced by (ii) any Losses for which it is determined pursuant to Article 10 or Article 11 hereof that a Buyer Indemnified Party is entitled to indemnification and which Losses have not previously been satisfied from the Buyer Indemnification Amount or otherwise at the time of the payment of the 2016 Earnout Amount; or (c) if the 2016 Earnout Revenue is at least $20,000,000, (i) $6,100,000, reduced by (ii) any Losses for which it is determined pursuant to Article 10 or Article 11 hereof that a Buyer Indemnified Party is entitled to indemnification and which Losses have not previously been satisfied from the Buyer Indemnification Amount or otherwise at the time of the payment of the 2016 Earnout Amount.
“2015 Earnout Period” means the fiscal year ended September 30, 2015.
“2016 Earnout Period” means the fiscal year ended September 30, 2016.
“2015 Earnout Revenue” means the lesser of (a) the Company Net Revenue during the 2015 Earnout Period and (b) the quotient of (i) the Company Net Revenue during the 2015 Earnout Period attributable solely to the sale by the Company of software and software-related services (including software licenses, software maintenance and support, and software subscription revenues) (such revenue, the “SSRS Revenue”), and not professional services, divided by (ii) 0.4.
“2016 Earnout Revenue” means the lesser of (a) the Company Net Revenue during the 2016 Earnout Period and (b) the quotient of (i) the Company Net Revenue during the 2016 Earnout Period attributable solely to SSRS Revenue, divided by (ii) 0.5.
“Acquisition Proposal” means any offer, inquiry, proposal or indication of interest in (a) the acquisition (including by way of merger, consolidation or other business combination) or recapitalization of the Company, (b) the purchase or sale of the capital stock or other equity or debt 

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securities in the Company, (c) the acquisition of 15% or more of the assets of the Company or (d) a similar transaction or business combination involving the Company.
“Affiliate” means a Person that directly or indirectly through one or more intermediaries’ controls, is controlled by or is under common control with the Person specified.  For purposes of this definition, the term “control” (including the terms “controlling,” “controlled by” and “under common control with”) of a Person means the possession, direct or indirect, of the power to (a) vote 50% or more of the voting securities or interests of such Person, or (b) direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.
“Agreement” means this Stock Purchase Agreement, together with all schedules (including the Disclosure Schedules) and exhibits referenced herein.
“Applicable Requirements” means and includes, as of the time of reference, all of the following: (a) all contractual obligations of the Company or any commitment or other contractual obligation relating to the Company’s Business, (b) all Laws applicable to the Company, (c) all other applicable requirements and guidelines of each governmental agency, board, commission, instrumentality and other governmental or quasi-governmental body or office having jurisdiction, including those of any investor and any Insurer, and (d) all other applicable judicial and administrative judgments, orders, stipulations, awards, writs and injunctions.
“Business Day” means any day except a Saturday or Sunday or other day on which commercial banks in Atlanta, Georgia are required or authorized by law or executive order to close.
“Buyer Common Stock” means the common stock, $0.01 par value per share, of Buyer.
“Buyer Indemnification Amount” means 10% of the Estimated Purchase Price.  The Buyer Indemnification Amount is comprised of the Option Escrow Amount, the Seller Escrow Amount and the Warrant Escrow Amount.
“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 United States Code Section 9601 et seq., as amended.
“Change of Control Payments” means, without duplication of any amounts included within the definition of Company Transaction Expenses, all amounts payable (including any cash bonuses, retention bonuses, change of control payments, severance and other forms of compensation and similar payments) to any Person by the Company, whether immediately or in the future, that arise, are accelerated or become payable in connection with, or as a result of, the transactions contemplated by this Agreement, including any Taxes associated therewith.
“Closing Date” means the date on which the Closing shall occur, which shall be no later than the third (3rd) Business Day after the date on which the last to be satisfied or waived of the Closing conditions set forth in Articles 7 and 8 (other than Closing conditions that, by their nature, are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions) shall be satisfied or waived in accordance with the terms of this Agreement.

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“Code” means the Internal Revenue Code of 1986, as it may be amended from time to time.
“Company Employee Benefit Plan” means any Employee Benefit Plan (a) that has been established or is maintained or sponsored by the Company, to which the Company contributes or is required to contribute, into which the Company has entered, or under which either the Company has any obligation or liability (whether actual or contingent), or (b) that has been established or is maintained or sponsored by an ERISA Affiliate of the Company, to which such ERISA Affiliate has contributed or is required to contribute, into which such ERISA Affiliate has entered or under which such ERISA Affiliate has any obligation or liability (whether actual or contingent), in each case, for the benefit of any active, retired or former employee, director or consultant of the Company (or the beneficiaries or other dependents thereof).
“Company Information Technology” means all Company Owned Information Technology, together with all Information Technology that the Company licenses or otherwise has acquired the right to use, to the extent such a license or other right is required for such use.
“Company Intellectual Property” means all Company Owned Intellectual Property, together with all Intellectual Property that the Company licenses or otherwise has acquired the right to use, to the extent such a license or other right is required for such use.
“Company Net Revenue” means the Company’s gross revenue, net of returns, allowances and any discounts allowed, recognized in accordance with GAAP, for the relevant period.
“Company Owned Information Technology” means all Information Technology to which Company owns any Intellectual Property Right. 
“Company Owned Intellectual Property” means all Intellectual Property to which the Company owns any Intellectual Property Right.
“Company Qualified Plan” means any Company Employee Benefit Plan that is intended to be qualified under Section 401(a) of the Code.
“Company Transaction Expenses” means (a) all costs, fees and expenses payable to third parties (including all fees and disbursements of counsel, investment banks, financial advisors and accountants), that have been paid by the Company on or before the Closing or for which the Company will be liable after the Closing in connection with the sale of the Company, including the sale of the outstanding capital stock therein, the negotiation and preparation of this Agreement, the Related Documents, and the other documents required to effectuate the Closing, and the performance of this Agreement and the transactions contemplated by this Agreement, (b) all Change of Control Payments, (c) to the extent not included in the calculation of the Closing Date Working Capital, any amounts payable by the Company to any Seller or any of its Affiliates, (d) to the extent not paid, the Option Closing Amount, (e) to the extent not paid, the Warrant Closing Amount, and (f) to the extent not paid, all costs, fees and expenses of the Reporting Tail Endorsement.
“Confidential Information” means confidential or proprietary information regarding the Company or its Affiliates that is not already generally available to the public, and which shall  

4

include, (a) information regarding operations, assets, liabilities or financial condition, (b) information regarding bidding, quotations, price, sales, merchandising, marketing and promotions (including marketing strategies and concepts), advertising campaigns, capital expenditures, costs, joint ventures, business alliances, products, services or purchasing, (c) customer lists, databases and other information related to current or prospective customers, including information regarding their identities, contact persons and purchasing patterns, (d) information regarding current or prospective vendors, suppliers, distributors or other business partners, (e) forecasts, projections, budgets and business plans, (f) information regarding the creation and formulation of any service or product, whether now in existence or under development, (g) information regarding employees and personnel files, and (h) technical information, models, know-how, protocols, discoveries, techniques, processes, business methods, trade secrets and proprietary information.  Notwithstanding the foregoing, Confidential Information shall be treated as such under this Agreement unless and until it becomes generally known to the public through no act or fault of the Company or any of its employees on or after the Closing.
“Continuing Employees” means any employee of the Company on the Closing Date.
“Contracts” means agreements, contracts, commitments and undertakings, written or oral.
“COTS” means commercially available, off-the-shelf hardware, software, databases, third party services and licenses to the extent (a) granted to the Company in the Ordinary Course of Business, (b) not subject to a separate hand-signed or negotiated purchase, license or development agreement and (c) not requiring annual payments in excess of $50,000.
“Disclosure Schedules” means the schedules attached hereto and delivered by Sellers to Buyer as of the date hereof.  Information disclosed in any section of the Disclosure Schedule shall be deemed to be disclosed with respect to other sections of this Agreement or the Disclosure Schedule to the extent such disclosure would be reasonably apparent in the light of the substance of the disclosure made or to the extent there is a specific cross reference.
“Earnout Amount” means either the 2015 Earnout Amount or the 2016 Earnout Amount, as the case may be.
“Earnout Revenue” means either the 2015 Earnout Revenue or the 2016 Earnout Revenue, as the case may be.
“Earnout Period” means either the 2015 Earnout Period or the 2016 Earnout Period, as the case may be.
“Employee Benefit Plan” means any (a) “employee benefit plan” within the meaning of Section 3(3) of ERISA, (b) stock option, stock purchase, restricted stock, equity compensation, equity-linked compensation, phantom equity, deferred compensation, bonus, incentive compensation, fringe benefit, sick leave, vacation, paid or unpaid leave, profit sharing, pension, retirement, deferred compensation, medical, life, disability, accident, salary continuation, retention, transaction, supplemental retirement, severance, termination pay, change-of-control, gross-up, equalization, unemployment benefit, and other compensation and/or benefit plan, program, 

5

arrangements, agreement, policy or commitment (whether or not insured), and/or (c) employment or consulting agreement or arrangement, and any trust, escrow, insurance or other funding arrangement related to any of the foregoing.
“Encumbrance” means any lien, charge, adverse right, claim, mortgage, security interest or encumbrance in favor of any party, except that licenses granted by the Company to third parties in the Ordinary Course of Business are not Encumbrances.
“Environmental Laws” means all federal, state, district, and local Laws, and all rules or regulations promulgated thereunder, applicable to the Company relating to pollution, the protection of the environment or human health or relating to the release, threatened release or handling of any hazardous, toxic, radioactive or dangerous materials or other materials regulated under any Environmental Law.  Environmental Laws shall include CERCLA, the Toxic Substances Control Act, as amended, the Hazardous Materials Transportation Act, as amended, the Resource Conservation and Recovery Act, as amended, the Clean Water Act, as amended, the Safe Drinking Water Act, as amended, the Clean Air Act, as amended, the Atomic Energy Act of 1954, as amended, the Occupational Safety and Health Act, as amended, and all analogous laws promulgated or issued by any state or other governmental authority.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
“ERISA Affiliate” with respect to any Person, means any trade or business that is a member of the same controlled group of corporations as such Person, within the meaning of Section 414(b) of the Code, that is under common control with such Person, within the meaning of Section 414(c) of the Code, that is a member of the same affiliated service group as such Person, within the meaning of Section 414(m) of the Code, or that is otherwise required to be aggregated with such Person pursuant to Section 414(o) of the Code.
“Escrow Account” has the meaning set forth in the Escrow Agreement.
“Escrow Agent” means SunTrust Bank, a Georgia banking corporation, or such other escrow agent as is mutually agreeable to Buyer and Sellers’ Representative.
“Escrow Agreement” means the escrow agreement entered into on the Closing Date among Sellers’ Representative, Buyer and the Escrow Agent substantially in the form of Exhibit B attached hereto.
“Escrow Amount” means the amount equal to the sum of the Buyer Indemnification Amount and the Purchase Price Adjustment Amount.
“Escrow Release Date” means the date that is eighteen (18) months following the Closing Date.
“Estimated Purchase Price” means an amount in cash equal to the Purchase Price, (a) either (i) minus the amount by which Target Working Capital is greater than Estimated Closing Date Working Capital on the Estimated Closing Statement, or (ii) plus the amount by which the Estimated 

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Closing Date Working Capital on the Estimated Closing Statement exceeds Target Working Capital, (b) either (i) minus the Estimated Closing Date Net Indebtedness, or (ii) plus the Estimated Closing Date Net Cash, and (c) minus all Company Transaction Expenses incurred on or before the Closing Date and that remain payable by the Company on the Closing Date.
“Final Purchase Price” means the Estimated Purchase Price as finally determined by Section 2.5 of this Agreement.
“Founders Agreement” means that certain Founders Agreement dated as of October 31, 2001, by and among the Company and the shareholders party thereto, including those who became parties thereto by means of the execution and delivery of a Joinder Agreement thereunder, all of whom are Seller parties hereto, as amended by the First, Second, Third and Fourth Amendments thereto.
“Future Sale of the Business” means (a) any merger or consolidation of the Company with or into any other entity or Person, or any other corporate reorganization, in which Buyer owns, directly or indirectly, less than fifty percent (50%) of the voting power or equity interests of the surviving entity immediately after such merger, consolidation or reorganization of the Company, (b) any transaction or series of related transactions in which in excess of fifty percent (50%) of the Company’s voting power or equity interests are transferred to any Person other than Buyer or its Subsidiaries, or (c) a sale, lease, transfer or other disposition of all or substantially all of the assets of the Company in a single transaction or series of related transactions, except where such sale, lease, transfer, exclusive license or other disposition is to Buyer or its Subsidiaries.
“GAAP” means generally accepted accounting principles in the United States, which, unless otherwise indicated, are applied on a consistent basis with prior historical practice.
“Hazardous Materials” means any materials or wastes, defined, listed, classified or regulated as hazardous, toxic, a pollutant, a contaminant or dangerous in or under any Environmental Laws, including petroleum, petroleum products, friable asbestos, molds, urea formaldehyde, radioactive materials and polychlorinated biphenyls.
“Holder Pro Rata Percentage” means, with respect to each Holder, a percentage equal to the product of (a) 100 multiplied by (b) a fraction, (i) the numerator of which is the amount deposited by or on behalf of such Holder into the Escrow Amount at the Closing and (ii) the denominator of which is the aggregate amount deposited by or on behalf of all Holders into the Escrow Amount at the Closing, as more particularly set forth on Schedule I.
“Holders” means Sellers, the Option Holders, and the Warrantholder, collectively, and “Holder” means each Seller, Option Holder or the Warrantholder, individually.
“Indebtedness” means, as of any date, without duplication, the outstanding principal amount of, accrued and unpaid interest on and other payment obligations (including any prepayment premiums or similar breakage costs payable as a result of the consummation of the transactions contemplated by this Agreement) arising under any obligations of the Company or consisting of (a) indebtedness for borrowed money or indebtedness issued in substitution or exchange for 

7

borrowed money or for the deferred purchase price of property or services (other than trade payables and accrued expenses arising in the Ordinary Course of Business), (b) indebtedness evidenced by any note, bond, debenture, debt security or other instrument, (c) any lease required to be capitalized in accordance with GAAP, conditional sale, earn out or other arrangement for the deferred purchase price of any property, (d) letters of credit, banker’s acceptances or similar credit transactions, (e) any obligation properly classified as indebtedness or debt under GAAP, (f) any indebtedness or obligation of any other Person, whether as guarantor, obligor or otherwise, (g) declared, but unpaid, dividends or distributions of the Company, and (h) the Indirect Tax Liability; provided, that, for the avoidance of doubt, Indebtedness does not include the Company Transaction Expenses.
“Indirect Tax Liability” means the amount of the Company’s Tax liability for transactions undertaken by the Company prior to the Closing Date for which the Company was required under state, local, federal or foreign Law to collect and/or remit Taxes on customer purchases and purchases made by the Company, but for which such Taxes were not collected and remitted by the Company or otherwise satisfied by the applicable customer, as set forth on Schedule 2.5(a), as may be adjusted from time to time in accordance herewith.  For the avoidance of doubt, Indirect Tax Liability includes all sales, use and ad valorem Taxes and all Canadian GST, QST and/or PST Taxes.
“Information Technology” means (a) computer software, including application software, compilers and tool kits in object (or executable) code and/or (human readable) source code, and related documentation, (b) proprietary computer programming languages and related documentation and materials, (c) data feeds and databases, and (d) computer hardware and operating systems.
“Insurer” means a Person who provides (a) standard hazard insurance, flood insurance, earthquake insurance or title insurance with respect to the Company or their assets, or (b) provides any fidelity bond, direct surety bond, letter of credit, other credit enhancement instrument or errors and omissions policy.
“Intellectual Property” means (a) all inventions, improvements and discoveries (regardless of whether patentable), all patents and patent applications, including reissuances, continuations, continuations-in-part, revisions, extensions, and reexaminations of such patents and patent applications, (b) all registered and unregistered trademarks, service marks, trade dress, logos, trade names and corporate names, or other identifying marks, indicators or labels, together with the goodwill associated with them and applications for, and renewals of, each of them, (c) all registered and unregistered copyrights and applications for, and renewals of, copyrights, (d) trade secrets, (e) Internet domain names and web site content, (f) all trade secrets and confidential business information (including research and development, know-how, processes, methods, techniques, customer and supplier lists, technical data, designs, charts, plans, diagrams, drawings, specifications, business and marketing plans, studies and proposals that are of a proprietary or confidential nature), and (g) all other forms of intellectual property recognized under Law.
“Intellectual Property Rights” means any and all of the following as may be recognized by Law in any jurisdiction throughout the world:  (a) rights under, in or to any Intellectual Property; and (b) other intellectual property or proprietary rights recognized under any Laws or international conventions, in each case including the right to apply for registrations, certificates, or renewals with 

8

respect to such intellectual property or proprietary rights and the right to prosecute, enforce, obtain damages relating to, settle or release any past, present or future infringement or misappropriation of those intellectual property or proprietary rights.
“Knowledge of the Company” means the actual knowledge of Jeff Buck, Juan Esteban Pereira, Alan Friedman and Abby Weatherby, after due inquiry of the Company personnel reasonably expected to be aware of such matters.
“Law” means any order, writ, injunction, decree, stipulation, judgment, ruling, law, decision, opinion, statute, rule or regulation of any governmental, judicial, legislative, executive, administrative or regulatory authority of the United States, or of any state, local or foreign government or any subdivision thereof, or of any governmental agency.
“Litigation” means any action, suit, demand, dispute, proceeding, claim, administrative or regulatory action, governmental investigation or arbitration proceeding.
“Losses” means, in respect of any obligation to indemnify any Person pursuant to the terms of this Agreement, on a dollar for dollar basis any and all losses, costs, damages (including direct damages), indemnities, liabilities, obligations, judgments, settlements, awards, deficiencies, offsets, fines and penalties (together, “Damages”), including reasonable out-of-pocket costs, expenses and advisor fees relating to Damages or to any proceedings, counterclaims or defenses that could reasonably result in incurring or avoiding Damages (including any such reasonable out-of-pocket costs, expenses and advisor fees incurred in enforcing such right of indemnification against any indemnitor or with respect to any appeal); provided, however, that Losses shall not include consequential damages (to the extent not constituting direct damages) or punitive or other exemplary damages, except to the extent that such damages have been judicially awarded to a third party against an indemnified Person or result from fraud or intentional misrepresentation.
“Material Adverse Effect” means, with respect to the Company, any event, occurrence, fact, condition, development, change or effect that, individually or in the aggregate, (a) is, or is reasonably likely to be, material and adverse to the business, operations, condition (financial or otherwise) or results of operations of the Company, or (b) prevents or materially impairs, or would be reasonably likely to prevent or materially impair, the ability of the Company to timely consummate the transactions contemplated hereby or to perform its agreements or covenants; provided, that in the case of clause (a) only, a “Material Adverse Effect” shall not be deemed to include events, occurrences, facts, conditions, developments, changes or effects to the extent resulting from (i) changes in economic, regulatory, market or political conditions, including in the financial, banking or securities markets (including any disruption thereof), in each case generally affecting other companies in the industry in which the Company operates, (ii) the engagement by the United States in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack upon the United States, or any of its territories, possessions or diplomatic or consular offices or upon any military installation, equipment or personnel of the United States, (iii) natural disasters, (iv) changes or proposed changes in GAAP or in Law, or (v) the execution, delivery or performance of this Agreement, including the consummation of the transactions contemplated hereby, or the announcement thereof, except, with respect to clauses (i), (ii), (iii) and (iv), to the extent that the effects of such change disproportionately 

9

affect the Company, taken as a whole, as compared to other companies in the industry in which the Company operates.
“Net Cash” means the amount, if any, by which cash and cash equivalents (including cash on hand and deposits in transit but less bank overdrafts, outstanding checks and any cash that is subject to any legal or contractual restriction on the ability to freely transfer or use such cash for any lawful purpose) of the Company as of the Determination Time, determined in accordance with GAAP, exceeds Indebtedness of the Company as of the Determination Time.
“Net Indebtedness” means the aggregate amount, if any, by which Indebtedness of the Company as of the Determination Time exceeds the amount of cash held by the Company as of the Determination Time.
“Option Adjustment Amount” means the aggregate portion of the Option Cancellation Amount to be deposited in the Purchase Price Adjustment Amount at the Closing, as more particularly set forth in Schedule I.
“Option Cancellation Amount” means the aggregate amount to be paid at the Closing to the Option Holders in consideration for the cancellation and termination of their Options (subject to the adjustments and payments set forth herein), as more particularly set forth in Schedule I.
“Option Closing Amount” means the aggregate portion of the Option Cancellation Amount to be delivered at the Closing pursuant to Section 2.3(b) (and as more particularly set forth in Schedule I). 
“Option Escrow Amount” means the aggregate portion of the Option Cancellation Amount to be deposited in the Buyer Indemnification Amount at the Closing, as more particularly set forth in Schedule I.
“Option Holder” means each holder of an Option.
“Option Plan” means the QuantiSense, Inc. Stock Option Plan and the QuantiSense, Inc. 2007 Incentive Stock Option Plan, as amended.
“Options” means the options to purchase capital stock of the Company issued pursuant to and in accordance with the Option Plan.
“Ordinary Course of Business” means the ordinary course of business consistent with the Company’s past custom and practice.
“Parachute Payment Waiver,” with respect to any Person, means a written agreement waiving such Person’s right to receive any “parachute payments” (within the meaning of Section 280G of the Code and the regulations promulgated thereunder) solely to the extent required to avoid the imposition of any Tax imposed by operation of Section 280G of the Code (including under Section 4999 of the Code) unless approved by the shareholders of the Company in a manner that satisfies the requirements of Section 280G(b)(5)(B) of the Code and Treas. Reg. 1.280G-1 Q&A 7.

10

“Permits” means all licenses, permits, franchises, orders, consents, approvals, registrations, authorizations, qualifications, certificates and filings with and under all federal, state, local or foreign laws and governmental or regulatory bodies and all industry or other non-governmental self-regulatory organizations.
“Permitted Encumbrance” means (a) any statutory lien for current Taxes not yet due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings and for which appropriate reserves have been established in accordance with GAAP, (b) any mechanics’, materialmen’s, carriers’, workers’, repairers’ and similar statutory lien arising or incurred in the Ordinary Course of Business the existence of which would not constitute an event of default under, or breach of, any Material Contract or Lease and any liabilities of the Company in respect of which are not overdue or otherwise in default, or (c) any Encumbrance that arises in the Ordinary Course of Business and does not materially impact the ownership or use of assets or properties of the Company.
“Person” means an individual, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, a limited liability entity, a government or any department or agency thereof, or any other entity.
“Purchase Price” means an amount in cash equal to $15,900,000.
“Purchase Price Adjustment Amount” means $250,000.  The Purchase Price Adjustment Amount is comprised of the Option Adjustment Amount, the Seller Adjustment Amount and the Warrant Adjustment Amount.
“Related Documents” means the Escrow Agreement, the Employment Agreements and any other agreements, certificates and instruments as amended from time to time, to be executed and delivered in connection with this Agreement.
“Restricted Sellers” means Jeff Buck and Juan Esteban Pereira, collectively, and “Restricted Seller” means either of them, individually.
“Section 280G” means Section 280G of the Code and the regulations promulgated thereunder.
“Securities Laws” means the Securities Act of 1933, as amended; the Securities Exchange Act of 1934, as amended; the Investment Company Act of 1940, as amended; the Investment Advisers Act of 1940, as amended; the Trust Indenture Act of 1939, as amended; and the rules and regulations of the United States Securities and Exchange Commission promulgated thereunder.
“Seller Adjustment Amount” means the aggregate amount to be deposited in the Purchase Price Adjustment Amount by or on behalf of Sellers at the Closing, as more particularly set forth in Schedule I.

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“Seller Escrow Amount” means the aggregate amount to be deposited in the Buyer Indemnification Amount by or on behalf of Sellers at the Closing, as more particularly set forth in Schedule I.
“Seller Pro Rata Percentage” means, with respect to each Seller, a percentage equal to the product of (a) 100 multiplied by (b) a fraction, (i) the numerator of which is the amount of the Estimated Purchase Price paid to such Seller at the Closing pursuant to Section 2.2(c) and (ii) the denominator of which is the aggregate amount of the Estimated Purchase Price paid to all Sellers at the Closing pursuant to Section 2.2(c), as more particularly set forth on Schedule I.
“Sellers’ Representative” means Jeff Buck or any individual appointed as Sellers’ Representative in its stead pursuant to Section 12.10 hereof.
“Straddle Period” means any taxable year or period beginning before and ending after the Closing Date.
“Subsidiary” means an entity as to which Person owns directly or indirectly 50% or more of the voting power or other similar interest.
“Target Working Capital” means negative $600,000.
“Tax” or “Taxes” means any net income, alternative or add-on minimum tax, gross income, gross receipts, sales, use, ad valorem, franchise, capital, profits, license, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, custom duty, transfer, documentary or other tax, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest or any penalty, addition to tax or additional amount imposed by any governmental authority responsible for the imposition of any such tax.
“Tax Return” means any return, report, declaration, form, claim for refund, or information return or statement relating to Taxes, including estimated tax returns, income tax returns, information returns, withholding returns, employment tax returns, and any schedule or attachment thereto or any amendment thereto.
“Treasury Regulations” means the regulations promulgated under the Code.
“Warrant” means that certain Warrant to Purchase Stock of QuantiSense, Inc. issued April 17, 2012, by the Company to Venture Lending & Leasing VI, LLC.
“Warrant Adjustment Amount” means the portion of the Warrant Cancellation Amount to be deposited in the Purchase Price Adjustment Amount at the Closing, as more particularly set forth in Schedule I.
“Warrant Cancellation Amount” means the aggregate amount to be paid at the Closing to the Warrantholder in consideration for the cancellation and termination of the Warrant (subject to the adjustment and payments set forth herein), as more particularly set forth in Schedule I.

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“Warrant Closing Amount” means the portion of the Warrant Cancellation Amount to be delivered at the Closing pursuant to Section 2.3(c) (as more particularly set forth in Schedule I).
“Warrant Escrow Amount” means the portion of the Warrant Cancellation Amount to be deposited in the Buyer Indemnification Amount at the Closing, as more particularly set forth in Schedule I.
“Warrantholder” means Venture Lending & Leasing VI, LLC.
“Working Capital” means, as at any date of determination, (a) the sum of those current assets included in the line items provided on the illustrative calculation of Working Capital set forth on Schedule 1.1 less (b) the sum of those current liabilities included in the line items provided on the illustrative calculation of Working Capital set forth on Schedule 1.1.  For the avoidance of doubt and notwithstanding the foregoing, the calculation of Working Capital shall exclude (w) cash and cash equivalents, (x) Company Transaction Expenses, and (y) any Indebtedness, which might otherwise be included in clause (b) above.  The line items included in the calculation shall be computed for the Company in accordance with GAAP consistent with the preparation of the unaudited reviewed balance sheet included in the Year End Financial Statements; provided, that in the event of a conflict between GAAP and the preparation of the most recent unaudited reviewed balance sheet included in the Year End Financial Statements, GAAP shall control.  For purposes of illustration only, Schedule 1.1 sets forth an example of the calculation of Working Capital.
Section 1.2    Other Defined Terms.
The following terms shall have the meanings defined for such terms in the Sections set forth below:
	
		
	TERM
	SECTION

	Acceleration Amount
	2.6(d)

	Accountant
	2.5(c)(ii)

	Accountant Fees
	2.5(c)(ii)

	Action
	12.18

	Adjusted Schedule 2.5(a)
	6.14

	Applicable Earnout Revenue
	2.6(b)(i)

	Basket
	10.1(b)

	Board
	2.3(a)

	Business
	Recital B

	Business Client
	9.3(b)

	Buyer
	Preamble

	Buyer 8-K
	12.5

	Buyer Indemnification Claims
	2.4(a)

	Buyer Indemnified Parties
	10.1(a)

	Buyer Released Persons
	10.7(a)

13

	
		
	TERM
	SECTION

	Buyer Releasing Person
	10.7(b)

	Cap
	10.1(b)

	Claim Response
	10.5

	Closing
	3.1

	Closing Date Balance Sheet
	2.5(b)

	Closing Date Company Transaction Expenses
	2.5(b)

	Closing Date Net Cash
	2.5(b)

	Closing Date Net Indebtedness
	2.5(b)

	Closing Date Working Capital
	2.5(b)

	Company
	Preamble

	Decision
	12.18

	Deficit
	2.5(d)(v)

	Determination Time
	3.1

	Disclosure Schedule Supplement
	6.10

	Earnout Objection Notice
	2.6(b)(i)

	Earnout Resolution Period
	2.6(b)(ii)

	Employment Agreements
	8.6

	Estimated Closing Date Company Transaction Expenses
	2.5(a)

	Estimated Closing Date Net Cash
	2.5(a)

	Estimated Closing Date Net Indebtedness
	2.5(a)

	Estimated Closing Date Working Capital
	2.5(a)

	Estimated Closing Statement
	2.5(a)

	Expense Amount
	2.2(b)

	Expense Fund
	2.2(b)

	Financial Statements
	4.5

	Fixed Asset Register
	4.6(d)

	Individual Reps
	Article 4 Introduction

	Interest Rate
	2.5(d)(vi)

	Interim Financial Statements
	4.5

	Interim Financial Statement Date
	4.5

	Interim Period
	Article 6 Introduction

	Leases
	4.6(b)

	Material Contracts
	4.7(a)

	Notice of Objection
	2.5(c)(i)

	Open Source License
	4.14(c)

	Open Source Materials
	4.14(c)

	Outside Date
	12.1(d)

14

	
		
	TERM
	SECTION

	Policies
	4.6(c)

	Purchased Shares
	Recital C

	Reporting Tail Endorsement
	6.12

	Reps
	Article 4 Introduction

	Resolution Period
	2.5(c)(ii)

	Scheduled Company Information Technology
	4.14(a)(ii)

	Scheduled Company Owned Intellectual Property
	4.14(a)(i)

	Section 280G Approval
	6.7(b)

	Section 280G Vote Materials
	6.7(b)

	Seller or Sellers
	Preamble

	Seller Indemnified Parties
	10.2(a)

	Seller Released Persons
	10.7(b)

	Seller Releasing Person
	10.7(a)

	Statement
	2.5(b)

	Stock
	Recital A

	Surplus
	2.5(d)(v)

	Tax Package
	11.4(e)

	Tax Contest
	11.5(a)

	Unpaid Company Transaction Expenses
	10.1(a)(iii)

	WARN Act
	4.20(e)

	Year End Financial Statements
	4.5

ARTICLE 2     
PURCHASE AND SALE OF PURCHASED SHARES
Section 2.1    Transfer of Purchased Shares.
Upon the terms and subject to the conditions contained herein, at the Closing, Sellers will sell, transfer and convey to Buyer, and Buyer will purchase from Sellers, the Purchased Shares free and clear of all Encumbrances.  The respective number of Purchased Shares to be sold by each Seller hereunder is set forth in Exhibit A attached hereto.
Section 2.2    Consideration for Purchased Shares.
The consideration for the Purchased Shares shall be the Estimated Purchase Price as adjusted pursuant to the provisions of Section 2.5 of this Agreement.  On the Closing Date, in accordance with Section 3.4 of this Agreement, Buyer shall pay the Estimated Purchase Price as follows:
(a)    An amount in cash equal to the Escrow Amount shall be paid to the Escrow Agent in accordance with the Escrow Agreement at the Closing;

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(b)    An amount equal to $50,000 (the “Expense Amount”) shall be paid to an account (which may be non-interest bearing) designated and maintained by Sellers’ Representative (such account, the “Expense Fund”), for Sellers’ Representative to hold on behalf of Sellers as a fund for the out-of-pocket fees and expenses of Sellers’ Representative incurred in connection with this Agreement; and
(c)    An amount equal to (i) the Estimated Purchase Price, minus (ii) the sum of the Escrow Amount and the Expense Amount shall be paid to Sellers in accordance with Schedule I.
Section 2.3    Treatment of Option Plan, Options and Other Equity Interests.
(a)    Treatment of Option Plan.  Prior to the Closing, the Board of Directors of the Company (the “Board”) will adopt resolutions and take all other actions necessary or appropriate to provide that, immediately prior to the Closing (but conditioned thereon), the Option Plan will be terminated and no further Options or other awards will be granted thereunder.
(b)    Treatment of Options.  Prior to the Closing, the Board (or, if appropriate, any committee thereof) will adopt resolutions and take all other actions necessary or appropriate to provide that, as of the Closing (but conditioned thereon), each Option, whether or not then exercisable or vested, will be cancelled and will no longer entitle the former holder thereof to any payment or other rights, other than the payment of such Option Holder’s portion of (i) the Option Cancellation Amount applicable to its Option (subject to the adjustments and payments set forth herein) and (ii) the Earnout Amounts (if any are paid), all as more particularly set forth in Schedule I.  From and after the Closing, any such cancelled Option will be void and of no further force or effect, and will no longer be exercisable by the former holder thereof.  Effective as of the Closing, Buyer shall deliver to the Company the Option Closing Amount for distribution to Option Holders.  The Company shall pay to each Option Holder the amount of cash set forth opposite such Option Holder’s name (less any applicable withholdings) on Schedule I, in accordance with the Company’s payroll practices as soon as practicable following the Closing Date.  
(c)    Treatment of Warrant.  Prior to the Closing, the Company and the Warrantholder shall take all actions necessary to provide that, as of the Closing (but conditioned thereon), the Warrant will be cancelled and will no longer entitle the Warrantholder to any payment or other rights, other than the payment of (i) the Warrant Cancellation Amount (subject to the adjustments and payments set forth herein) and (ii) a portion of the Earnout Amounts (if any are paid), as more particularly set forth on Schedule I.  From and after the Closing, the Warrant will be void and of no further force or effect and no longer exercisable by the Warrantholder.
(d)    Corporate Actions.  Without limiting the foregoing provisions of this Section 2.3, at or prior to the Closing, the Company, the Board (or, if appropriate, any committee thereof), as applicable, shall adopt any resolutions and take any actions which are necessary or appropriate to effectuate the provisions of this Section 2.3.  The Company shall take all actions necessary or appropriate to ensure that from and after the Closing, Buyer and its Subsidiaries will not be required to deliver to any Person any shares of capital stock representing equity interests in the Company or any other Person pursuant to or in settlement of Options (or any other award under the Option Plan) or the Warrant.

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Section 2.4    Escrow.
(a)    On the Closing Date, Buyer shall cause to be delivered to Escrow Agent the Escrow Amount.  The Escrow Amount shall be held for the express purposes of (i) maintaining the Purchase Price Adjustment Amount from which to pay any Purchase Price adjustment required to be paid to Buyer pursuant to Section 2.5 of this Agreement, and (ii) maintaining the Buyer Indemnification Amount as a source for the satisfaction of claims by the Buyer Indemnified Parties for Losses suffered or incurred by them and for which they are entitled to recover pursuant to Article 10 or Article 11 hereof (the “Buyer Indemnification Claims”).  The Purchase Price Adjustment Amount shall not be used for any Buyer Indemnification Claims.  The Escrow Amount will be released from the Escrow Account in accordance with the terms of the Escrow Agreement and Section 2.5 of this Agreement.  In the event any portion of the Purchase Price Adjustment Amount is not required to be paid pursuant to Section 2.5 of this Agreement, such remaining portion of the Purchase Price Adjustment Amount shall be disbursed immediately to the Holders pursuant to Section 2.5.  Subject to the provisions of this Agreement and the Escrow Agreement, the Escrow Agent shall release on the Escrow Release Date any remaining funds held in the Escrow Account, less any amounts reserved for payment in connection with any Buyer Indemnification Claims.
(b)    Any Escrow Amount retained for Buyer Indemnification Claims asserted by any Buyer Indemnified Party prior to the Escrow Release Date but which are not yet resolved shall remain in the escrow until released in accordance with the terms of the Escrow Agreement.
(c)    For avoidance of doubt, any disputes regarding the amounts to be reserved in the escrow in connection with any Buyer Indemnification Claim shall be subject to the provisions set forth in Section 12.19.
Section 2.5    Adjustments.
(a)    The Company will deliver to Buyer at least three (3) Business Days prior to the Closing Date a certificate executed by an officer of the Company (the “Estimated Closing Statement”) presenting the Company’s good-faith estimate of:  (i) the unaudited balance sheet for the Company as of the Determination Time; (ii) the Working Capital as of the Determination Time (the “Estimated Closing Date Working Capital”); (iii) the Net Indebtedness as of the Determination Time, if any (the “Estimated Closing Date Net Indebtedness”); (iv) the Net Cash as of the Determination Time, if any (the “Estimated Closing Date Net Cash”); and (v) the Company Transaction Expenses incurred on or before the Closing Date and that remain payable by the Company on the Closing Date (the “Estimated Closing Date Company Transaction Expenses”).  The Estimated Closing Statement shall be accompanied by reasonable supporting documentation.  Buyer shall have the right to review the Estimated Closing Statement and such supporting documentation or data of the Company prior to Closing as Buyer may reasonably request.  If Buyer does not in good faith agree with the Estimated Closing Statement, then the Company and Buyer shall negotiate in good faith prior to Closing to mutually agree on an acceptable Estimated Closing Statement, and the Company shall consider in good faith any proposed comments or changes that Buyer may reasonably suggest; provided, however, that the failure to include in the Estimated Closing Statement any changes proposed by Buyer, or the acceptance by Buyer of the Estimated Closing Statement, or the consummation of the Closing, shall not limit or otherwise affect Buyer’s 

17

remedies under this Agreement, including Buyer’s right to include such changes or other changes in the Closing Date Balance Sheet or the Statement, or constitute an acknowledgment by Buyer of the accuracy of the Estimated Closing Statement.  Notwithstanding anything herein to the contrary, the Indirect Tax Liabilities taken into account in determining the Estimated Closing Date Net Cash, if any, and the Estimated Closing Date Net Indebtedness, if any, shall include the Indirect Tax Liabilities set forth on Schedule 2.5(a), as the same may be adjusted in accordance with Section 6.14 hereof.  
(b)    Not earlier than 5:00 p.m., Atlanta, Georgia time on the date that is ninety (90) days after the Closing Date and no later than 120 days after the Closing Date, Buyer shall deliver to Sellers’ Representative an unaudited balance sheet for the Company as of the Determination Time (the “Closing Date Balance Sheet”) and a statement (the “Statement”) setting forth Buyer’s calculation of (i) the Working Capital as of the Determination Time (the “Closing Date Working Capital”), (ii) the Net Indebtedness as of the Determination Time, if any (the “Closing Date Net Indebtedness”), (iii) the Net Cash as of the Determination Time, if any (the “Closing Date Net Cash”) and (iv) the Company Transaction Expenses incurred on or before the Closing Date and that remained payable by the Company on the Closing Date (the “Closing Date Company Transaction Expenses”).  The Closing Date Balance Sheet, the Statement (and the Closing Date Working Capital, the Closing Date Net Indebtedness, the Closing Date Net Cash and the Closing Date Company Transaction Expenses reflected therein) shall be prepared in accordance with the accounting principles, practices and methods used in the preparation of the calculations set forth in Section 2.5(a) above.  Following the Closing, and until Buyer’s delivery of the Statement, Buyer shall cause the Company to use its commercially reasonable efforts to take such actions as Buyer determines to be necessary, appropriate or advisable to collect, mitigate, minimize, pay, provide for the payment of, remit or otherwise satisfy the Indirect Tax Liabilities with the customers of the Company and/or applicable state, local, federal or foreign Tax authorities, so as to further decrease the amount of the Indirect Tax Liabilities set forth on Adjusted Schedule 2.5(a).  Buyer shall periodically consult with Sellers’ Representative regarding the actions taken pursuant to this Section 2.5(b) and shall otherwise update Sellers’ Representative regarding such actions and the results thereof.  The amount by which the Indirect Tax Liabilities set forth on Adjusted Schedule 2.5(a) are further adjusted as a result of the actions taken pursuant to this Section 2.5(b) shall be taken into account in determining the amount by which the Closing Date Net Cash, if any, and the Closing Date Net Indebtedness, if any, shall be reduced. 
(c)    (I)    Unless Sellers’ Representative notifies Buyer in writing on or before 5:00 p.m. Atlanta, Georgia time on the date that is thirty (30) days after Sellers’ Representative’s receipt of the Closing Date Balance Sheet and the Statement of any objection to the calculation of the Closing Date Working Capital, Closing Date Net Indebtedness, Closing Date Net Cash or Closing Date Company Transaction Expenses (the “Notice of Objection”), the Statement shall become final and binding.  During such 30-day period, Sellers’ Representative and Buyer will make available for review by each other its respective books, records, work papers and other documents and information relating to the Closing Date Balance Sheet as may be reasonably requested by Buyer or Sellers’ Representative.  Any Notice of Objection shall specify in reasonable detail the basis for the objections set forth therein.

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(i)    If Sellers’ Representative provides the Notice of Objection to Buyer within the 30-day period set forth in Section 2.4(c)(i), Sellers’ Representative and Buyer shall, during the 30-day period following Buyer’s receipt of the Notice of Objection (the “Resolution Period”), attempt in good faith to resolve Sellers’ Representative’s objections.  If Sellers’ Representative and Buyer are unable to resolve all such objections prior to the expiration of the Resolution Period, the matters remaining in dispute shall be submitted to a nationally recognized public accounting firm mutually agreed upon by Sellers’ Representative and Buyer and, if Sellers’ Representative and Buyer are unable to so agree within ten (10) days after the end of the Resolution Period, then the accounting firm that Sellers’ Representative desired to resolve such dispute and the accounting firm that Buyer desired to resolve such dispute shall mutually select a different nationally recognized public accounting firm (such selected firm, which shall not have represented the Company or its Affiliates or served as Buyer’s (or its Affiliates) principal independent registered public accounting firm, during the immediately preceding three (3) years prior to the submission of such matters to it, being the “Accountant”) to resolve the dispute. After the end of the Resolution Period, neither Sellers’ Representative nor Buyer may introduce additional disagreements or increase the amount of any disagreement, and any item not so identified shall be deemed to be agreed to by all parties and will be final and binding upon the parties.  If any dispute is submitted to the Accountant, each party will furnish to the Accountant such work papers and other documents and information relating to the disputed issues as the Accountant may request and are available to that party or its independent accountants (including information of the Company) and each party shall be afforded the opportunity to present the Accountant material relating to the determination and to discuss the determination with the Accountant.  The Accountant shall act as an expert and not as an arbitrator and shall resolve matters in dispute and adjust and establish any disputed Statement amount to reflect such resolution.  It is the intent of Buyer and Sellers’ Representative that the process set forth in this Section 2.5(c) and the activities of the Accountant in connection herewith are not intended to be and, in fact, are not arbitration and that no formal arbitration rules shall be followed (including rules with respect to procedures and discovery).  Notwithstanding anything to the contrary in this Agreement, the scope of the Accountant’s review of any dispute between Buyer and Sellers’ Representative regarding the Statement and/or the calculation of the Closing Date Working Capital, Closing Date Net Indebtedness, Closing Date Net Cash or Closing Date Company Transaction Expenses pursuant to this Section 2.5(c) shall be limited solely to the resolution of the objections to the calculation of the Closing Date Working Capital, Closing Date Net Indebtedness, Closing Date Net Cash or Closing Date Company Transaction Expenses that are set forth in the Notice of Objection, and the Accountant shall have no authority over any other disagreement (including questions of Law, interpretation of contract, and fraud).  The parties shall instruct the Accountant to render its reasoned written decision as promptly as practicable but in no event later than sixty (60) days after its selection.  The resolution of disputed items by the Accountant shall be final and binding on Buyer, the Company and Sellers, and the determination of the Accountant shall constitute an arbitral award that is final, binding and non-appealable and upon which a judgment may be entered by a court having jurisdiction thereover.  The fees and expenses of the Accountant (the “Accountant Fees”) shall be allocated between Buyer and Sellers’ Representative (on behalf of Sellers) so that Sellers’ Representative shall be responsible for an amount equal to (A) the Accountant Fees, multiplied by (B) the quotient of (x) the aggregate dollar value of issues in dispute submitted to the Accountant that are resolved in a manner favorable to Buyer (as finally determined by the Accountant), divided by (y) the total dollar value of the issues in dispute so submitted, and Buyer shall be responsible for the remainder of such fees and expenses.

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(d)    Within five (5) Business Days after the Statement has become final and binding in accordance with this Section 2.5:
(i)    The Estimated Purchase Price shall be increased, on a dollar for dollar basis, by the amount (if any) by which the Closing Date Working Capital (as finally determined pursuant to Section 2.5(b) or (c)) is more than the Estimated Closing Date Working Capital, or decreased, on a dollar for dollar basis, by the amount (if any) by which the Estimated Closing Date Working Capital is more than the Closing Date Working Capital (as finally determined pursuant to Section 2.5(b) or (c)).
(ii)    The Estimated Purchase Price shall be decreased, on a dollar for dollar basis, by the amount (if any) by which the Closing Date Net Indebtedness (as finally determined pursuant to Section 2.5(b) or (c)) is more than the Estimated Closing Date Net Indebtedness, or increased, on a dollar for dollar basis, by the amount (if any) by which the Estimated Closing Date Net Indebtedness is more than the Closing Date Net Indebtedness (as finally determined pursuant to Section 2.5(b) or (c)).
(iii)    The Estimated Purchase Price shall be increased, on a dollar for dollar basis, by the amount (if any) by which the Closing Date Net Cash (as finally determined pursuant to Section 2.5(b) or (c)) is more than the Estimated Closing Date Net Cash, or decreased, on a dollar for dollar basis, by the amount (if any) by which the Estimated Closing Date Net Cash is more than the Closing Date Net Cash (as finally determined pursuant to Section 2.5(b) or (c)).
(iv)    The Estimated Purchase Price shall be decreased, on a dollar for dollar basis, by the amount (if any) by which the Closing Date Company Transaction Expenses (as finally determined pursuant to Section 2.5(b) or (c)) is more than the Estimated Closing Date Company Transaction Expenses, or increased, on a dollar for dollar basis, by the amount (if any) by which the Estimated Closing Date Company Transaction Expenses is more than the Closing Date Company Transaction Expenses (as finally determined pursuant to Section 2.5(b) or (c)).
(v)    Without duplication, all increases or decreases set forth in Section 2.5(d)(i)-(iv) above shall be aggregated (and shall be set off against each other, such that a single amount shall be used for adjustment) and the Estimated Purchase Price shall be increased (the amount of such increase, the “Surplus”) or decreased (the amount of such decrease, the “Deficit”), as the case may be.  If the adjustment provisions of this Section 2.5(d) result in a Surplus, then Buyer shall (A) pay to the Holders an aggregate amount in cash equal to the Surplus plus an amount equal to the Interest Rate multiplied by the Surplus, and (B) shall cause the Purchase Price Adjustment Amount to be immediately distributed from the Escrow Account to the Holders.  If the adjustment provisions of this Section 2.5(d) result in a Deficit, then Buyer shall be entitled to receive an amount in cash equal to the Deficit plus an amount equal to the Interest Rate multiplied by the Deficit from the Holders payable first from the Escrow Account up to the Purchase Price Adjustment Amount and in the event the Deficit plus such interest amount exceeds the Purchase Price Adjustment Amount, then Buyer shall be entitled to recover such shortfall amount directly from Sellers.  If any portion of the Purchase Price Adjustment Amount remains in the Escrow Account after payment of the Deficit to Buyer pursuant to the preceding sentence, such remaining portion of the Purchase Price Adjustment Amount shall be immediately distributed from the Escrow Account to the Holders.

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(vi)    For purposes hereof, “Interest Rate” means the prime rate of interest in effect at such time (as published in the Wall Street Journal), calculated on the basis of the number of days elapsed over 360, from the Closing Date to the date of payment.
(vii)    Any payments owed to the Holders by Buyer under this Section 2.5 shall be delivered by wire transfer of immediately available funds using the instructions set forth Schedule I, or shall be deposited in an account or accounts designated by Sellers’ Representative.  Any payments owed to Buyer by the Holders or Sellers (as the case may be) under this Section 2.5 shall be deposited in an account or accounts designated by Buyer.
(viii)    All amounts paid to the Holders under this Section 2.5 shall be allocated to the Holders in accordance with their respective Holder Pro Rata Percentages set forth on Schedule I, or as Sellers’ Representative may otherwise direct.
(ix)    All amounts paid to Buyer under this Section 2.5 shall be allocated among the Holders or Sellers, as applicable, or their respective assignees in accordance with their Holder Pro Rata Percentages or Seller Pro Rata Percentages, respectively, set forth in Schedule I, or as Sellers’ Representative may otherwise direct.
(e)    Any amounts paid pursuant to the provisions of this Section 2.5 shall be deemed to be and treated, to the extent permitted by Law, as an adjustment to the Purchase Price.
Section 2.6    Earnout.
(a)    Earnout Payment.  In addition to the consideration payable to Sellers and the other Holders (as the case may be) pursuant to Sections 2.2, 2.3 and Section 2.5 hereof, Buyer shall pay to the Holders an amount in cash equal to the Earnout Amount for the corresponding Earnout Period allocated among them in accordance with their respective Holder Pro Rata Percentages set forth in Schedule I, or as Sellers’ Representative may otherwise direct in writing.  Schedule 2.6(a) sets forth sample calculations of the Earnout Amounts for illustrative purposes only.
(b)    Time for Determination.
(ii)    Not later than 5:00 p.m., Atlanta, Georgia time on the date that is seventy-five (75) days following the date on which Buyer’s fiscal year ends for each Earnout Period, Buyer shall determine the Earnout Revenue for such Earnout Period (the “Applicable Earnout Revenue”) and deliver to Sellers’ Representative a copy of such computation.  Unless Sellers’ Representative notifies Buyer in writing on or before 5:00 p.m. Atlanta, Georgia time on the date that is thirty (30) days after Sellers’ Representative’s receipt of such computation of any objection to the determination of the Applicable Earnout Revenue (an “Earnout Objection Notice”), such computation of the Applicable Earnout Revenue shall become final and binding.  During such 30-day period, Buyer will make available for review by Sellers’ Representative its books, records, work papers and other documents and information relating to the computation of the Applicable Earnout Revenue as may be reasonably requested by Sellers’ Representative.  Any Earnout Objection Notice shall specify in reasonable detail the basis for the objections set forth therein.  

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(iii)    If Sellers’ Representative provides the Earnout Objection Notice to Buyer the 30-day period set forth in Section 2.6(b)(i), Sellers’ Representative and Buyer shall, during the 30-day period following Buyer’s receipt of the Earnout Objection Notice (the “Earnout Resolution Period”), attempt in good faith to resolve Sellers’ Representative’s objections.  If Sellers’ Representative and Buyer are unable to resolve all such objections prior to the expiration of the Earnout Resolution Period, the matters remaining in dispute shall be submitted to the Accountant to resolve the dispute.  After the end of the Earnout Resolution Period, neither Sellers’ Representative nor Buyer may introduce additional disagreements or increase the amount of any disagreement, and any item not so identified shall be deemed to be agreed to by all parties and will be final and binding upon the parties.  If any dispute is submitted to the Accountant, each party will furnish to the Accountant such work papers and other documents and information relating to the disputed issues as the Accountant may request and are available to that party or its independent accountants (including information of the Company) and each party shall be afforded the opportunity to present the Accountant material relating to the determination and to discuss the determination with the Accountant.  The Accountant shall act as an expert and not as an arbitrator and shall resolve matters in dispute and adjust and establish the disputed Applicable Earnout Revenue to reflect such resolution.  It is the intent of Buyer and Sellers’ Representative that the process set forth in this Section 2.6(b) and the activities of the Accountant in connection herewith are not intended to be and, in fact, are not arbitration and that no formal arbitration rules shall be followed (including rules with respect to procedures and discovery).  Notwithstanding anything to the contrary in this Agreement, the scope of the Accountant’s review of any dispute between Buyer and Sellers’ Representative regarding the Applicable Earnout Revenue pursuant to this Section 2.6(b) shall be limited solely to the resolution of the objections to the calculation of the Applicable Earnout Revenue that are set forth in the Earnout Objection Notice, and the Accountant shall have no authority over any other disagreement (including questions of Law, interpretation of contract, and fraud). The parties shall instruct the Accountant to render its reasoned written decision as promptly as practicable, but in no event later than sixty (60) days after such dispute is submitted to the Accountant.  The resolution of disputed items by the Accountant shall be final and binding, and the determination of the Accountant shall constitute an arbitral award that is final, binding and non-appealable and upon which a judgment may be entered by a court having jurisdiction thereover.  The fees and expenses of the Accountant under this Section 2.6 shall be allocated in a manner consistent with the last sentence of Section 2.5(c)(ii).
(iv)    The Earnout Amount for each Earnout Period shall be paid to the Holders in accordance with their respective Holder Pro Rata Percentages set forth in Schedule I, or as Sellers’ Representative may otherwise direct, within five (5) Business Days after the Applicable Earnout Revenue has become final and binding in accordance with this Section 2.6(b).
(c)    Earnout Covenants.  Subject to Section 2.6(d), Buyer shall conduct and manage its business (including, with regard to the Company) in good faith and Buyer shall also act in good faith in the best interests of Buyer’s business (including the Company) with regard to any action that it takes or omits to take after the Closing that could be reasonably expected to impede the opportunity of the Holders to be entitled to receive, pursuant to this Section 2.6, the maximum Earnout Amount for each Earnout Period.  From and after the Closing, neither Buyer nor its Subsidiaries (including the Company) will have any obligation to conduct their respective businesses 

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(i) outside of the Ordinary Course of Business or (ii) in a manner that disadvantages the long term growth of Buyer and its Subsidiaries (including the Company) in favor of short term earnings or maximizing the Earnout Amounts; provided that, Buyer will not take (and will cause the Company not to take) any action the primary intent or purpose of which is to impede or delay payment of the Earnout Amounts.
(d)    Acceleration of Earnout.  If, during any Earnout Period, Buyer enters into or permits any Future Sale of the Business, then Buyer shall pay, or cause the successor entity to pay, to the Holders, promptly upon the occurrence of such Future Sale of the Business, the maximum aggregate Earnout Amounts for the entire 2015 Earnout Period and the entire 2016 Earnout Period, less any Earnout Amount already paid to the Holders or which was unearned in respect of any prior Earnout Period as of the date on which such Future Sale of the Business occurs (collectively, the “Acceleration Amount”), and the provisions of Section 2.6(c) shall be of no further force or effect thereafter.  Buyer shall notify Sellers’ Representative within five (5) Business Days following the occurrence of such Future Sale of the Business and, within thirty (30) days of such Future Sale of the Business, shall transfer the Acceleration Amount to the Holders, in accordance with their respective Holder Pro Rata Percentages, by wire transfer of immediately available funds using the instructions set forth in Schedule I, or as otherwise directed by Sellers’ Representative.
(e)    Acknowledgement of the Parties.  Buyer, the Company and Sellers’ Representative, on behalf of Sellers, acknowledge: (i) the payment of the Earnout Amounts hereunder are an integral part of the consideration to be received by Sellers pursuant to this Agreement and the transactions contemplated hereby; (ii) the right of Sellers to a portion of the Earnout Amounts is not transferable other than by operation of law or pursuant to the laws of descent and distribution; (iii) the right of Sellers to a portion of the Earnout Amounts shall not be represented by a certificate or other instrument, shall not represent an ownership interest in Buyer, and shall not entitle any Seller to any rights common to any holder of Buyer Common Stock; and (iv) the right of Sellers to payment of the Earnout Amounts shall not bear any interest.
Section 2.7    Withholding.
Each of Buyer, the Escrow Agent and the Company shall be entitled to deduct and withhold from the consideration otherwise payable pursuant to this Agreement to Sellers or any other Person such amounts as Buyer, the Escrow Agent or the Company, as the case may be, is required to deduct and withhold under the Code, or other applicable Tax law, with respect to the making of such payment.  To the extent that amounts are so deducted and withheld, such amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of whom such deduction and withholding was made.
ARTICLE 3     
CLOSING
Section 3.1    Time and Place of Closing.
Subject to the receipt of the deliveries specified in Sections 3.2, 3.3 and 3.4 below, the closing of the transactions contemplated herein (the “Closing”) shall be held as of 10:00 a.m. 

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(Atlanta, Georgia) on the Closing Date at the offices of Rogers & Hardin LLP, 2700 International Tower, 229 Peachtree Street NE, Atlanta, Georgia 30303, or at such other place or on such other date as is mutually acceptable to Buyer and Sellers.  From and after the Closing, the Closing shall be deemed to have occurred at 11:59 p.m., Atlanta, Georgia time, on the date that is one (1) day prior to the Closing (the “Determination Time”).
Section 3.2    Pre-Closing Deliveries.
At least three (3) Business Days prior to the Closing Date, Sellers shall deliver, or shall cause to be delivered, to Buyer the following:  (a) an updated and completed Schedule I, which shall set forth, among other things, each Seller’s Seller Pro Rata Percentage, each Holder’s Holder Pro Rata Percentage, the applicable payments to be made to and deposits to made by or on behalf of each Holder and other Persons receiving payments pursuant to this Agreement and the wire transfer instructions for the accounts to which all payments hereunder are to be made; and (b) the Estimated Closing Statement, as more specifically set forth in Section 2.5(a) of this Agreement.
Section 3.3    Deliveries by Sellers.
At the Closing, each Seller shall deliver, or cause to be delivered, the following to Buyer:
(d)    The stock certificates representing its respective share of the Purchased Shares sold by such Seller hereunder, together with duly executed stock powers;
(e)    The certificate(s) contemplated by Section 8.1 hereof;
(f)    Resignation letters of all Persons who are officers or directors of the Company by which they resign from their positions as officers and directors of the Company;
(g)    A duly executed certificate of non-foreign status from such Seller (other than 91325 Canada, Inc.) in the form and manner that complies with Section 1445 of the Code and the Treasury Regulations promulgated thereunder and is reasonably satisfactory to Buyer;  
(h)    A payoff letter, in form and substance reasonably satisfactory to Buyer, evidencing the repayment in full of the Indebtedness set forth on Schedule 8.4 and the release of all related Encumbrances on the assets of the Company;
(i)    All documents or instruments in form and substance reasonably satisfactory to Buyer evidencing the exercise of all outstanding warrants to purchase shares of Common Stock prior to the Closing; 
(j)    A good standing certificate of the Company from its jurisdiction of incorporation dated within seven (7) days prior to the Closing Date; and
(k)    All other documents, instruments and writings required to be delivered by such Seller at or prior to the Closing Date pursuant to this Agreement.

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Section 3.4    Deliveries by Buyer.
At the Closing, Buyer shall deliver the following to (or cause to be delivered on behalf of) Sellers:
(f)    The amounts of consideration set forth in Sections 2.2, 2.3 and 2.4, in accordance with such Sections and Schedule I;
(g)    The certificate(s) contemplated by Section 7.1 hereof; and
(h)    All other documents, instruments and writings required to be delivered by Buyer at or prior to the Closing Date pursuant to this Agreement.
ARTICLE 4     
REPRESENTATIONS AND WARRANTIES OF EACH SELLER AND THE COMPANY
The representations and warranties (“Reps”) set forth in this Article 4 are made to Buyer as follows: The Reps set forth in Sections 4.2(b), 4.3(a), and 4.9(b) (collectively, the “Individual Reps”) are made by each Seller severally and only as to such Seller and such Seller’s Stock.  All Reps other than the Individual Reps are made by the Company and by all Sellers.  Except as set forth on the Disclosure Schedules attached hereto and specifically referenced herein, which exceptions and disclosures shall be deemed to be part of the Reps made hereunder, each Seller making such Reps hereby represents and warrants to Buyer that such Reps are true and correct as of the date of this Agreement and as of the Closing Date, in each case (except to the extent such Rep expressly relates to a specific date), as follows:
Section 4.1    Organization of the Company.
The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the District of Columbia.  The Company has full corporate power and authority to conduct its business as it is presently being conducted and to own, lease and operate its assets and properties.  The Company is duly qualified or otherwise authorized as a foreign corporation to conduct its business as it is presently being conducted, and is in good standing in each jurisdiction where such authorization or qualification is required for the ownership of its assets or the conduct of its business, except where the failure to obtain such authorization or to so qualify has not had, and would not reasonably be expected to have, a Material Adverse Effect.  True, complete and correct copies of the organizational documents of the Company as of the date of this Agreement previously have been made available to Buyer.
Section 4.2    Capital Stock; Indebtedness.
(l)    Schedule 4.2(a) sets forth (i) a complete and accurate list of the Company’s authorized, issued and outstanding shares of Stock and the holders of record thereof, and (ii) with respect to each Option, its holder, grant date, exercise price, vesting schedule (including any accelerated vesting provisions) and expiration date.  Except as set forth on Schedule 4.2(a), other than the Warrant and the Options, no shares of any other class or series of capital stock of, or other 

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equity or voting interests in, or securities convertible into or exchangeable or exercisable for shares of capital stock of, or other equity or voting interests in the Company are authorized, issued or outstanding.  All of the shares of the Stock have been duly and validly authorized and issued, and are fully paid and nonassessable.  Other than the Warrant, the Options, or as otherwise set forth on Schedule 4.2(a), the Company has not granted any subscriptions, options, stock purchase rights, other equity compensation or equity-linked compensation awards, warrants, calls, commitments, preemptive rights, rights of first refusal or other rights of any kind that entitle any Person to acquire (including securities exercisable or exchangeable for or convertible into) any additional capital stock or equity interests of the Company (or securities convertible into or exchangeable or exercisable for any such additional capital stock or equity interests), and no shares of any class of capital stock of the Company have been reserved or set aside for any purpose.  Except as set forth in Schedule 4.2(a), there are no restrictions upon, or agreements with respect to, the voting or transfer of any shares of the Stock pursuant to the charter or bylaws of the Company or any agreement or other instrument to which the Company is a party or by which the Company is bound.  There are no outstanding obligations of the Company to repurchase, redeem or otherwise acquire or retire for value any Purchased Shares.  The Company has not, in any material respect, violated any applicable Securities Law, state securities Laws or any preemptive or similar rights in connection with the offer, sale or issuance of any of the Purchased Shares.  The Company has no liability for, or obligation with respect to, the payment of dividends, distributions or similar participation interests, whether or not declared or accumulated, and there are no restrictions of any kind, which prevent the payment of the foregoing by the Company.
(m)    Except as set forth on Schedule 4.2(b), each Seller (i) owns of record and beneficially all of its Purchased Shares set forth opposite its name on Schedule 4.2(b) free and clear of all Encumbrances, including any agreement, understanding or restriction affecting the voting rights, transfer or other incidents of record or beneficial ownership pertaining to such Purchased Shares, and (ii) has not granted any options, warrants, calls, commitments, preemptive rights or other rights of any kind for the purchase or acquisition of such Seller’s Purchased Shares.
(n)    Upon consummation of the transactions contemplated by this Agreement, Buyer will own all of the issued and outstanding Stock, free and clear of all Encumbrances other than any Encumbrances arising as a result of action by Buyer.
(o)    Schedule 4.2(d) sets forth all Indebtedness, and for each item set forth thereon, identifies the debtor, the original principal amount, the creditor, the maturity date and the collateral, if any, securing such Indebtedness.  Complete and accurate copies of the Contracts relating to such Indebtedness have been delivered to Buyer.
Section 4.3    Authorization.
(i)    Each Seller has full legal power and authority (as applicable) to execute and deliver this Agreement and the Related Documents to which it is a party and to consummate the transactions contemplated hereby and thereby.  The execution and delivery of this Agreement and the Related Documents and the consummation of the transactions contemplated hereby and thereby has been duly authorized by all necessary corporate, trust, limited partnership or other action of each Seller that is not a natural person.  This Agreement has been, and each of the Related Documents to be 

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executed by such Seller will be, duly executed and delivered by such Seller and, assuming the due execution of this Agreement by Buyer and the other Sellers, is or will be when executed by such Seller a valid and binding obligation of such Seller, enforceable against such Seller in accordance with its terms, except that such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting the rights or remedies of creditors or general principles of equity (whether considered in a proceeding at law or in equity).
(j)    The Company has full legal power and authority to execute and deliver this Agreement and the Related Documents to which it is a party and to consummate the transactions contemplated hereby and thereby.  The execution and delivery of this Agreement and the Related Documents and the consummation of the transactions contemplated hereby and thereby has been duly authorized by all necessary corporate action of the Company.  This Agreement has been duly executed and delivered by the Company and, assuming the due execution of this Agreement by Buyer and Sellers, is a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except that such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting the rights or remedies of creditors or general principles of equity (whether considered in a proceeding at law or in equity).  The Related Documents to which the Company is a party will be, when duly executed and delivered by each of the parties thereto, a valid and binding obligation of the Company, in each case enforceable against the Company in accordance with its terms, except that such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting the rights or remedies of creditors or general principles of equity (whether considered in a proceeding at law or in equity).
Section 4.4    Subsidiaries.
The Company does not legally or beneficially own or control, directly or indirectly, any shares of stock or other equity or voting interest in any corporation, firm, partnership, joint venture or other Person.
Section 4.5    Financial Statements; Minute Books.
The unaudited reviewed balance sheets and the related statements of operations and comprehensive income, of changes in shareholder’s equity and of cash flows (i) of the Company at December 31, 2011, (ii) of the Company at December 31, 2012, and (iii) of the Company at December 31, 2013 and for the periods then ended, including the footnotes thereto (collectively, the “Year End Financial Statements”), and the unaudited balance sheet, statement of operations and changes of shareholder equity for the Company as of and for the eight (8) month period ended August 31, 2014 (the “Interim Financial Statement Date”) (the “Interim Financial Statements”, and along with the Year End Financial Statements, the “Financial Statements”) have been delivered to Buyer by Sellers.  The Financial Statements are based on the books and records of the Company and fairly present, in all material respects, the financial position and results of operations of the Company as of the date of or for the period indicated therein in accordance with GAAP.  The books and records of the Company have been maintained in accordance with GAAP and any other applicable legal and accounting requirements, subject in the case of the Interim Financial Statements 

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to year-end adjustments and the absence of notes thereto (the effect of which, if made, would not be materially adverse to the balance sheet included in the Interim Financial Statements).  The Company is not a party to, nor has it otherwise engaged in, any securitization transactions, synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet refinancing product or off-balance sheet transactions.  The Company has established and maintains a system of “internal controls over financial reporting” (as defined in Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934, as amended) to provide reasonable assurance regarding the reliability of Seller’s financial reporting and the preparation of financial statements for external purposes in accordance with GAAP.  The internal controls over financial reporting are sufficient to provide reasonable assurance (A) that transactions of the Company are being made only in accordance with the authorization of the Company’s management and directors, and (B) regarding prevention or timely detection of the unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the Company’s financial statements.  The minute books of the Company are in the Company’s possession (and/or have been made available to Buyer in accordance with Section 12.15), and contain copies of all written minutes of its meetings of Shareholders and Board of Directors.
Section 4.6    Properties and Insurance.
(a)    The Company owns no real property.  Except (i) as may be reflected in the Financial Statements, and (ii) for Permitted Encumbrances and such other Encumbrances and imperfections of title that do not materially affect the value of personal property reflected in the Financial Statements or acquired since the date of such Financial Statements and that do not materially affect the value of or materially interfere with or impair the present and continued use of such property, the Company has good and marketable indefeasible fee simple title, free and clear of Encumbrances, to all of the personal property reflected in the Financial Statements, and all personal property acquired since the date of the Financial Statements, except such personal property as has been disposed of in the Ordinary Course of Business for adequate consideration and except for liens, security interests, claims, charges, or other such other Encumbrances as have been appropriately reserved for in the Financial Statements.  The Company is not a party to any agreement or option to purchase any real property or interest therein.
(b)    Schedule 4.6(b) sets forth a true, correct and complete list of the address or other description, as of the date hereof, of each lease for real property to which the Company is a party (including the date and name of the parties to such lease).  The Company has previously delivered to Buyer true, correct and complete copies of each lease.  With respect to all leases of real property to which the Company is a party (collectively, the “Leases”), except as set forth on Schedule 4.6(b), (i) the Company has performed all material obligations required to be performed by it to date under each Lease, (ii) the Company has not received a notice of default or termination with respect to any such Lease, (iii) the transactions contemplated by this Agreement do not require the consent of any other party to any such Lease (except for those lease consents to be obtained by the Company pursuant to Section 4.10 of this Agreement), (iv) no security deposit or portion thereof deposited with respect to any such Lease has been applied in respect of a breach or default under such Lease, which has not been redeposited in full, (v) the Company does not owe, nor will it owe in the future, any brokerage commissions or finder’s fees with respect to any such Lease, (vi) the other party to 

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any such Lease is not an Affiliate of, and otherwise does not have any economic interest in, the Company, (vii) the Company has not subleased, licensed or otherwise granted any Person the right to use or occupy the estate or interest created by any such Lease or any portion thereof, (viii) the Company has not collaterally assigned or granted any other security interest in any such Lease or any interest therein, and (ix) there are no Encumbrances (other than Permitted Encumbrances) on the estate or interest created by any such Lease.  The Company quietly enjoys the premises provided for in any such Lease in all material respects.
(c)    Schedule 4.6(c) sets forth a summary of all insurance policies and bonds, pursuant to which the Company is an insured party or a beneficiary, or under which the Company or any of its directors or officers, in his or her capacity as such, is covered (collectively, the “Policies”).  The Company has, prior to the date of this Agreement, made available to Buyer correct and complete copies of all Policies.  The Company is in material compliance with the Policies and is not in default under any of the material terms thereof.  Each Policy is outstanding and in full force and effect and all premiums and other payments due under any Policy have been paid in due and timely fashion, and the Company has not received any notice of a cancellation, or, to the Knowledge of the Company, threatened termination or premium increase with respect to any such Policies.  Such Policies collectively provide insurance coverage that is adequate for the assets and operations of the Company, and collectively are sufficient in all material respects for compliance with all requirements of applicable Law and all material Contracts to which the Company is a party or is otherwise bound.  
(d)    Personal Property.  Schedule 4.6(d) sets forth a complete and accurate list of all personal property owned or leased by the Company with an individual value of $20,000 or greater.  The Company has made available to Buyer prior to the date hereof a complete and accurate fixed asset register of the Company as of August 31, 2014 (the “Fixed Asset Register”) and, except as set forth on Schedule 4.6(d), no material personal property set forth on the Fixed Asset Register has been sold, leased, licensed, transferred or otherwise disposed of prior to the date hereof.  The Company owns and has good title to, hold pursuant to a valid and enforceable lease or otherwise have the legal right to use all material personal property used in the Business, as the Business is currently conducted, free and clear of all Encumbrances (other than Permitted Encumbrances).  All machinery, vehicles, equipment and other tangible personal property owned or leased by the Company are (i) in good condition and repair in all material respects (reasonable wear and tear excepted), and (ii) not obsolete or in need in any material respect of renewal or replacement, except for renewal or replacement in the Ordinary Course of Business.
Section 4.7    Contracts and Commitments.
(a)    Schedule 4.7(a) sets forth a complete list of the Contracts to which the Company is a party, is bound by, or receives benefits under and which are (i) material Contracts not made in the Ordinary Course of Business (including any Contracts pursuant to which the Company received funding from a Seller or an Affiliate of a Seller), (ii) any Contract relating to the borrowing of money by the Company or the guarantee by the Company of any such obligation, (iii) a Contract that by its terms either requires the Company to do business with the contract party on an exclusive basis or restricts or limits the Company from owning, managing or operating any business or in any geographical location (including non-competition agreements), (iv) any joint venture or partnership 

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agreement, (v) any agreement that grants any right of first refusal or right of first offer or similar right to third parties or that limits or purports to limit the ability of the Company in any material respect to pledge, sell, transfer or otherwise dispose of any material amount of assets or the Business, (vi) any Contract providing for any material future payments that are conditioned, in whole or in part, on a change of control with respect to the Company, (vii) any material agency, broker, sale representative, marketing or similar Contract, (viii) any Contract that contains a “most favored nation” clause obligating the Company to change the material terms and conditions of such Contract based on better terms or conditions provided to other parties in similar Contracts, (ix) any Contract relating to any merger or business combination concerning the Company or the acquisition or disposition of any material assets in the last three (3) years, (x) any Contract with any director, officer, employee or Affiliate of the Company, (xi) any currently effective Contract with any customer set forth in Schedule 4.24, (xii) any material Contract of the Company based on aggregate expenditures in excess of $50,000, and (xiii) any other Contract which is otherwise material to the Company (the Contracts of the type covered in clauses (i) through (xiii), the “Material Contracts”).
(b)    Except as set forth in Schedule 4.7(b), the Company has performed in all material respects the obligations required to be performed by it to date under each Material Contract.  The Company is not in material breach or default under any order, writ, judgment, decree or Material Contract to which it is a party or by which it or any of its assets is bound, whether entered into in the Ordinary Course of Business or otherwise and whether written or oral, and, to the Knowledge of the Company, there has not occurred any event that, with the lapse of time or giving of notice or both, would constitute such a material breach or default.  The Company has not received notice of any cancellation, material breach of, or default under (or any condition which, with the passage of time or the giving of notice, would cause a material breach of, or default under), any Material Contract.
(c)    A true, correct and complete copy of each Material Contract has been delivered to Buyer prior to the date of this Agreement.
(d)    Except as set forth in Schedule 4.7(d), each Material Contract will continue to be enforceable after the Closing and shall not be affected in any material respect by the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, and no notice to, or consent, approval or waiver is required from any other party to a Material Contract.
Section 4.8    Absence of Undisclosed Liabilities.
Except as set forth on Schedule 4.8, the Company does not have any liability (contingent or otherwise) that would be required to be reflected in a balance sheet prepared in accordance with GAAP, except (i) as disclosed in the Interim Financial Statements, (ii) for liabilities incurred in the Ordinary Course of Business consistent with past practice since the Interim Financial Statement Date (none of which relate to any breach of contract, breach of warranty, tort, infringement or violation of Law), and (iii) liabilities of the Company arising under this Agreement or the Related Documents to which the Company is a party, and the consummation of the transactions contemplated hereby and thereby.

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Section 4.9    No Conflict or Violation.
(a)    Except as provided for in Schedule 4.9 or Schedule 4.10, neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby (assuming the taking of all necessary actions by each party hereto (including the obtaining of each necessary authorization, consent or approval) and the making of all filings with all applicable governmental authorities), will (i) conflict with or result in a breach that would constitute a default (or which would give rise to any right of consent, acceleration or termination or the loss of any benefit) under any term or provision of any Material Contract to which the Company is a party or subject or by which any material assets of the Company are bound, (ii) result in the creation or imposition of any Encumbrance (other than Permitted Encumbrances) on any of the material assets or property of the Company, (iii) result in any violation of the provisions of the charter or bylaws of the Company, (iv) result in any violation by the Company of any applicable Law, or (v) result in the creation or imposition of any Encumbrance on any of the Purchased Shares.  
(b)    Except as provided for in Schedule 4.9 or Schedule 4.10, neither the execution and delivery of this Agreement by each Seller, nor the consummation of the transactions contemplated hereby will (i) conflict with or result in any material breach which would constitute a default (or which would give rise to any right of consent, acceleration or termination or the loss of any benefit) under any term or provision of any Material Contract to which such Seller is a party or subject or interfere with the ability of such Seller to consummate the transactions contemplated by this Agreement, (ii) result in any violation by such Seller or the Company of any applicable Law, or (iii) result in the creation or imposition of any Encumbrance on any of such Seller’s Purchased Shares.
Section 4.10    Consents and Approvals.
No consent, approval or authorization of, or declaration, notice, filing or registration with, any governmental or regulatory authority, or consent, approval or authorization of any other Person, is required to be made or obtained by any Seller or the Company on or prior to the Closing Date in connection with the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement, except as set forth in Schedule 4.10.
Section 4.11    Litigation.
There is no Litigation instituted, pending or, to the Knowledge of the Company, threatened against the Company or against any asset, interest or right of the Company.  There is no actual or, to the Knowledge of the Company, threatened Litigation that presents a claim to restrain, delay, condition or prohibit the transactions contemplated herein or to impose upon Buyer, any Seller, the Company any material costs, conditions or obligations in connection therewith.  The Company is not subject to any order, injunction, judgment, decree, ruling, assessment or arbitration award of any governmental entity or arbitrator that relates to the Business of, or any material assets owned or used by, the Company.

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Section 4.12    Compliance with Law; Permits and Licenses.
(a)    Except as set forth in Schedule 4.12(a), and subject to the last sentence of this Section 4.12(a), (i) the Company is not or has not been in material violation of, nor has it been the subject of any Litigation with respect to the violation of, any Law within the past three (3) years, (ii) no Litigation is pending, or to the Knowledge of the Company, threatened, with respect to any violation of any Law by the Company, and the Company is and has been in compliance in all material respects with all applicable Laws relating to the conduct of the Business, and (iii) the Company has not received any written notice of any such Litigation or any material liability on the part of the Company to undertake or to bear all or any portion of the cost of any remedial action of any nature.  For the avoidance of doubt, the Reps contained in this Section 4.12(a) are not intended to address the subject matters set forth in Section 4.15 (Taxes), Section 4.16 (Employee Benefit Plans), Section 4.17 (Environmental Liability), Section 4.20 (Labor Matters) or Section 4.26 (Illegal Payments).
(b)    The Company possesses, and at all times has possessed all material Permits necessary to the conduct of the Business as it is presently being conducted.  The Permits set forth in Schedule 4.12(b) constitute all of the Permits used in, or held for use in, the Business by the Company, as of the date hereof.  Each such Permit is validly and presently in effect (and the continuing validity and effectiveness of such Permit will not be affected by the consummation of the transactions contemplated by this Agreement), and the Company is not in default (with or without notice or lapse of time, or both) under any such Permit in any material respect.  There is no Litigation pending, nor, to the Knowledge of the Company, threatened, that seeks the revocation, cancellation, suspension or adverse modification of any such Permit.  No material facts or circumstances exist that, with or without notice or lapse of time, would be reasonably likely to result in such Litigation.  All required filings with respect to such Permit have been timely made and all required applications for renewal thereof have been timely filed, except to the extent not material to the Business.
Section 4.13    No Brokers.
Neither Sellers nor the Company has employed, or is subject to any claim of, any broker, finder, consultant or other intermediary in connection with the transactions contemplated by this Agreement.

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Section 4.14    Intellectual Property and Technology.
(a)    (i)    The following items of Company Owned Intellectual Property are set forth on Schedule 4.14(a)(i) (collectively, “Scheduled Company Owned Intellectual Property”):  (w) all patents and patent applications, including reissuances, continuations, continuations-in-part, revisions, extensions, and reexaminations of such patents and patent applications, (x) all registered and unregistered trademarks, service marks, trade dress, logos, and trade names, (y) all registered copyrights and applications for, and renewals of, copyrights, and (z) all Internet domain names, which Scheduled Company Owned Intellectual Property specifies, as applicable, (A) the nature of such Scheduled Company Owned Intellectual Property and (B) (1) any applications or registrations relating to such Scheduled Company Owned Intellectual Property, together with the application(s) or registration(s) number(s) and (2) any termination or expiration dates for such Scheduled Company Owned Intellectual Property.
(ii)    The following items of Company Information Technology, other than COTS, are set forth on Schedule 4.14(a)(ii) (collectively, “Scheduled Company Information Technology”):  (a) all computer software, including application software, compilers and tool kits in object (or executable) code and/or (human readable) source code, and related documentation, (b) all proprietary computer programming languages, and (c) all data feeds and databases, which Scheduled Company Information Technology specifies, as applicable, (A) whether such Scheduled Company Information Technology is Company Owned Information Technology or provided under a service contract or is licensed to the Company, (B) if provided under a service contract, the service provider, if licensed, the licensor, and if owned, the owner of such Company Information Technology, and (C) the expiration dates of service contracts and licenses.
(b)    Except as set forth on Schedule 4.14(b):
(i)    The Company Intellectual Property and Company Information Technology include all rights necessary to enable the Company to conduct its business operations in the manner in which it is conducting them as of the date of this Agreement, except that (other than as set forth in Section 4.14(b)(vii)(B) below), the Company does not warrant that the Company Intellectual Property and Company Information Technology that is not Company Owned Intellectual Property and Company Owned Information Technology, respectively, can be used without infringement of third party rights.
(ii)    The Company has taken commercially reasonable measures to keep in full force and effect all Company Owned Intellectual Property registrations, renewals, and applications for registration that are listed in Schedule 4.14(a)(i) and designed to maintain the confidentiality of all trade secrets that constitute Company Owned Intellectual Property or Company Owned Information Technology, to the extent (and only to the extent) that the Company believes in good faith that such trade secrets have sufficient business value to warrant such protection.   The Company Owned Intellectual Property and the Company Owned Information Technology is free and clear of any Encumbrance (other than Permitted Encumbrances).  All registrations and applications for registration of Company Owned Intellectual Property with a governmental authority currently comply in all material respects with the legal requirements for such registrations and applications (as applicable).

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(iii)    The Company either exclusively owns or has licensed from a third party the Company Intellectual Property and the Company Information Technology.
(iv)    (A) All licenses, service Contracts, and other Contracts that constitute Company Information Technology are in full force and effect and, to the Knowledge of the Company, the applicable licensor’s legal, valid, and binding obligations, (B) the Company is not in breach of or default under (with or without notice or lapse of time or both) any such licenses or Contracts and (C) none of the Company, all licensors or any other contracting parties has exercised termination rights with respect to such licenses, service Contracts or other Contracts.
(v)    There is no Litigation pending or, to Knowledge of the Company, threatened, that involves a claim (A) that any Company Owned Intellectual Property or Company Owned Information Technology infringes, misappropriates, dilutes, or violates a third party’s Intellectual Property Rights or challenging the ownership, use, protectability, registerability, validity, or enforceability of the Company Owned Intellectual Property or Company Owned Information Technology or (B) against any customers of the Company or any of its Affiliates, as the case may be, with respect to the Company Owned Intellectual Property or Company Owned Information Technology or any such customer’s use thereof.
(vi)    To the Knowledge of the Company, no third party is infringing, violating, diluting, misusing, misappropriating or claiming any ownership of or right to use any Company Owned Intellectual Property or Company Owned Information Technology.  The Company has not made any claim against any third party based upon any such infringement, violation, dilution, misuse or misappropriation.
(vii)    To the Knowledge of the Company, (A) the processes employed, the services provided, the businesses conducted, the products used or dealt in by the Company, the Company Owned Intellectual Property and/or Company Owned Information Technology, do not, and, within the last six (6) years did not, infringe, violate, dilute, misuse or misappropriate any Intellectual Property Rights of a third party, and (B) the Company’s usage of the Company Intellectual Property and Company Information Technology that is not Company Owned Intellectual Property and Company Owned Information Technology in the manner currently used by the Company in the conduct of the Business does not infringe, violate, dilute, misuse or misappropriate any Intellectual Property Rights of a third party; provided, however, that the Company does not warrant that the Company Intellectual Property and Company Information Technology that is not Company Owned Intellectual Property and Company Owned Information Technology otherwise can be used without infringement of third party rights.  No third party has made or, to the Knowledge of the Company, threatened a complaint, demand, notice, material charge or claim against the Company based upon any such infringement, violation, dilution, misuse or misappropriation.  There is no interference or opposition proceedings relating to any Company Owned Intellectual Property or Company Owned Information Technology and, to the Knowledge of the Company, no such proceeding is or has been threatened with respect thereto.
(viii)    No Company Owned Intellectual Property or Company Owned Information Technology is currently, to the Knowledge of the Company, the subject of any re-examination, opposition, cancellation or invalidation proceeding before any governmental authority.

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(ix)    Neither the execution of this Agreement nor the consummation of the transactions contemplated by this Agreement will result in:  (A) the granting to any Person of rights to Company Intellectual Property or Company Information Technology greater than the rights granted prior to the date of this Agreement; (B) Buyer or its Affiliates being bound by, or subject to, any (I) non-compete or (II) other restriction on the operation or scope of its business other than license limitations and confidentiality and nondisclosure obligations that both (y) are entered into in the Ordinary Course of Business and applicable to Company Intellectual Property and Company Information Technology that are not Company Owned Intellectual Property and Company Owned Information Technology, respectively, and (z) do not change by virtue of the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby; (C) Buyer being obligated to pay any royalties or other amounts to any Person in excess of the amounts payable by the Company prior to the date of this Agreement; or (D) the loss, forfeiture, cancellation, suspension, limitation, termination or other impairment of the right of Buyer to own or use or otherwise exercise any other rights that the Company currently has with respect to any Company Intellectual Property or Company Information Technology.
(c)    As used in this Section 4.14(c), “Open Source Materials” means any software that is licensed, distributed or conveyed under a Contract (an “Open Source License”) that requires as a condition of its use, modification or distribution that it, or other software into which such software is incorporated or with which such software is distributed or that is derived from such software, be disclosed or distributed in source code form, delivered at no charge or be licensed, distributed or conveyed under the same terms as such Contract; Open Source Materials includes software licensed under the GNU General Public License (GPL) or Lesser/Library GPL, the Mozilla Public License, the Netscape Public License, the Sun Community Source License, the Sun Industry Standards License, the BSD License, a Microsoft Shared Source License, the Common Public License, the Apache License, and any license listed at www.opensource.org.  The Company has not distributed, licensed or otherwise used in any manner any Open Source Materials, including by statically linking Open Source Materials with other software, in such a manner that requires any material proprietary software owned or (other than Open Source Materials themselves, which are not materially modified from what is currently generally publically available in a manner that would include in such Open Source Materials source code that has material independent value and that was developed by or on behalf of the Company, and such inclusion would have the effect thereon described in following clauses (i) or (ii) of this sentence) used under license by the Company to be (i) disclosed or distributed in source code form, or (ii) delivered at no charge or otherwise being dedicated to the public.
Section 4.15    Taxes.
Except as set forth on Schedule 4.15:
(a)    The Company has timely filed all Tax Returns required to be filed by or with respect to the Company and such Tax Returns are complete and accurate in all material respects.  All Taxes that were required to have been paid by, or with respect to, the Company have been paid.  The unpaid Taxes of the Company did not, as of the Interim Financial Statement Date, exceed the reserve for Tax liability (excluding any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of the balance sheet set forth on the Interim 

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Financial Statements (rather than in any notes thereto).  Since the Interim Financial Statement Date, the Company has not incurred any liability for Taxes outside the Ordinary Course of Business or otherwise inconsistent with past custom and practice.
(b)    The Company is not currently the beneficiary of any extension of time within which to file any Tax Return.
(c)    No deficiencies for any Tax have been proposed, asserted or assessed against the Company during the last five (5) years which have not been settled and paid in full or for which adequate reserves in accordance with GAAP have not been established, and, to the Knowledge of the Company, no such assertion of material deficiency or assessment of Tax liability is pending or being threatened with respect to the Company.
(d)    There are currently no agreements in effect with respect to the Company to extend the period of limitations for the assessment or collection of any Tax.
(e)    There is no presently pending audit, examination, refund claim, litigation, proposed adjustment or matter in controversy with respect to any Taxes for which the Company may be liable, and, to the Knowledge of the Company, no such audit, examination, action or proceeding is threatened.
(f)    The Company has not ever been a member of an affiliated, combined, consolidated or unitary group for purposes of filing any income or franchise Tax Return.
(g)    The Company has not constituted a “United States real property holding corporation” within the meaning of Section 897(c)(2) of the Code during the applicable period described in Section 897(c)(1)(A)(ii) of the Code.  Except in the case of 91325 Canada, Inc., such Seller is not a “foreign person” within the meaning of Treasury Regulations Section 1.1445-2(b).
(h)    Set forth on Schedule 4.15 is a list identifying each Person who is a “disqualified individual” within the meaning of Section 280G and who will or may, absent compliance with the shareholder approval procedures set forth in Section 6.7, receive or have the right or entitlement to receive a “parachute payment” within the meaning of Section 280G in connection with the transactions contemplated by this Agreement.
(i)    The Company is not a party to any Tax sharing agreement, Tax allocation agreement, Tax indemnity agreement or similar agreement relating to Taxes
(j)    The Company has withheld and paid to the proper taxing authority on a timely basis all Taxes required to have been withheld and paid in connection with amounts paid, or deemed to have been paid, or owing, or amounts allocated to any employee, independent contractor, creditor, shareholder or other third party, including with respect to any and all non-cash compensation paid to any service provider of the Company.
(k)    No power of attorney has been granted with respect to the Company as to any matter relating to Taxes.

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(l)    There are no Encumbrances for Taxes on the assets of the Company other than Encumbrances for Taxes not yet due and payable or for which adequate reserves in accordance with GAAP have been established.
(m)    To the Knowledge of the Company, no claim has ever been made by a taxing authority in a jurisdiction where the Company does not file Tax Returns that the Company is or may be required to file Tax Returns with respect to such jurisdiction.
(n)    The Company will not be required to include any item of income in, or exclude any item of deduction from, taxable income for any period ending after the Closing Date as a result of any (i) change in method of accounting for a taxable period ending on or prior to the Closing Date, (ii) “closing agreement” as described in Code Section 7121 (or any corresponding or similar provision of any law relating to income Tax) executed prior to the Closing, (iii) installment sale or open transaction disposition made prior to the Closing, or (iv) prepaid amount received prior to the Closing.
(o)    The Company has not distributed stock of another Person, nor has it had its stock distributed by another Person, in a transaction that was purported or intended to be governed in whole or in part by Code Section 355 or Code Section 361.
(p)    The Company has not been a party to a transaction that is or is substantially similar to a “reportable transaction,” as such term is defined in Treasury Regulations Section 1.6011-4(b)(1).
(q)    At all times since its formation, the Company has been properly treated as a “C corporation” within the meaning of Code Section 1361(a)(2) for U.S. federal income tax purposes.
(r)    No compensation has been or could reasonably be expected to be includable in the gross income of any “service provider” (within the meaning of Section 409A of the Code) of the Company as a result of the operation of Section 409A of the Code.  
(s)    There is no Contract, agreement, plan or arrangement to which the Company is a party, which requires or could reasonably be expected to require the Company to pay a Tax gross-up or reimbursement payment to any Person, including with respect to any Tax-related payments under Section 409A of the Code or Section 280G or Section 4999 of the Code.
Section 4.16    Employee Benefit Plans.
(a)    Schedule 4.16(a) sets forth an accurate and complete list of all Company Employee Benefit Plans and identifies, with respect to each such Company Employee Benefit Plan, either the Company or the applicable ERISA Affiliate thereof that established, sponsors or maintains such Company Employee Benefit Plan or that contributes or is required to contribute to such Company Employee Benefit Plan or that has entered into such Company Employee Benefit Plan.  Except as set forth on Schedule 4.16(a), neither the Company nor any of its ERISA Affiliates has announced or otherwise made a commitment to implement any arrangement that, if implemented, would be a Company Employee Benefit Plan.

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(b)    With respect to each Company Employee Benefit Plan, Sellers have made available or caused to be made available to Buyer a true and complete copy of each Company Employee Benefit Plan, any amendments thereto (or if the Company Employee Benefit Plan is not written, a description thereof), any related trust or other funding vehicle, any annual reports or summary plan descriptions required to be prepared under ERISA or applicable Law, the three (3) most recently prepared actuarial reports, financial statements and trustee reports (if applicable), all material records, notices and filings concerning Internal Revenue Service or Department of Labor audits or investigations and the most recent determination letter received from the Internal Revenue Service with respect to each Company Qualified Plan.
(c)    Each Company Employee Benefit Plan complies in form and has been established, maintained and operated in accordance, in all material respects, with the requirements of all applicable Laws, including ERISA and the Code, and each Company Employee Benefit Plan has been maintained and operated, in all material respects,  in accordance with its terms.  With respect to each Company Employee Benefit Plan that is intended to meet requirements for tax-favored treatment under the Code, the term “applicable Laws” shall include the provisions of the Code that provide for such tax-favored treatment.
(d)    Schedule 4.16(d) separately identifies each Company Qualified Plan.  Each Company Qualified Plan and each trust established in connection with each Company Qualified Plan is the subject of a favorable determination letter issued by the Internal Revenue Service and, to the Knowledge of the Company, no event has occurred and no condition exists which would be reasonably likely to result in the revocation of any such determination letter.
(e)    No Company Employee Benefit Plan is, and neither the Company nor any of its ERISA Affiliates contributes to or has an obligation to contribute to or has contributed to or has any liability or obligation, whether actual or contingent, with respect to (i) a multiemployer pension plan (as defined in Section 3(37) of ERISA), (ii) a plan subject to Title IV or Section 302 of ERISA or Section 412 of the Code, (iii) a multiple employer plan within the meaning of Section 413(c) of the Code, or (iv) a voluntary employees’ beneficiary association within the meaning of Section 501(c)(9) of the Code.
(f)    No Company Employee Benefit Plan is a multiple employer welfare arrangement within the meaning of Section 3(40) of ERISA.
(g)    The Company has not, and, following the Closing Date, Buyer will not, have any liability (actual or contingent) with respect to any Employee Benefit Plan established, maintained, or sponsored by any ERISA Affiliate of the Company, or to which any such ERISA Affiliate has contributed or is required to contribute, or into which any such ERISA Affiliate has entered that is not a Company Employee Benefit Plan.
(h)    Except as provided on Schedule 4.16(h), neither the execution or delivery of this Agreement nor the consummation of the transactions contemplated by this Agreement will, either alone or in combination with another event, (i) entitle any current or former director, employee, officer or consultant of the Company to severance pay, unemployment compensation or any other payment or benefit, or (ii) accelerate the time of payment, vesting or funding of any such benefit 

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or compensation, or (iii) increase the amount or value of benefit or compensation otherwise payable or required to be provided to any such director, employee, officer or consultant.
(i)    Except as provided on Schedule 4.16(i), no Company Employee Benefit Plan provides, and the Company has no obligation to provide, medical, surgical, hospitalization, death or similar benefits (whether or not insured) for employees or former employees or other service providers of the Company or its ERISA Affiliates (or any dependents or beneficiaries of the foregoing) for periods extending beyond their retirement or other termination of service, other than (i) coverage mandated by applicable Law, (ii) group health plan continuation coverage pursuant to Section 4980B of the Code or any similar legal requirements, or (iii) benefits the full cost of which is borne by the current or former employee or service provider (or his dependent or beneficiary).
(j)    There are no pending, or, to the Knowledge of the Company, threatened or anticipated material claims by, on behalf of or against any Company Employee Benefit Plan, the assets of any trust under any Company Employee Benefit Plan, or the plan sponsor, plan administrator or any fiduciary of any Company Employee Benefit Plan by any employee or beneficiary covered under any such Company Employee Benefit Plan, or otherwise involving any such Company Employee Benefit Plan (other than routine claims for benefits).
(k)    No Company Employee Benefit Plan is subject to the laws of any jurisdiction outside of the United States or provides compensation or benefits to any employee or former employee of the Company (or any dependent thereof) subject to the Laws of any jurisdiction outside of the United States.
Section 4.17    Environmental Liability.
To the Company’s Knowledge, (a) the Company is, and has been, in compliance in all material respects with all Environmental Laws, (b) there has been no release or threatened release of any material amount of any Hazardous Substance on, upon, into or from any site currently or heretofore leased or otherwise operated or used by the Company and (c) there have been no Hazardous Substances generated by the Company that have been disposed of or come to rest at any site that has been included in any published U.S. federal, state or local “superfund” site list or any other similar list of hazardous or toxic waste sites published by any governmental authority in the United States.
Section 4.18    Receivables.
The accounts receivable reflected on the Interim Financial Statements, and those to be reflected on the Estimated Closing Statement or the Closing Date Balance Sheet, have (or will have) arisen from bona fide transactions in the Ordinary Course of the Business and are (or will be) valid obligations of the respective makers thereof consistent with past practice, are not subject to any pledge, dispute, defense, setoff or other claim, and will be collected no later than one hundred twenty (120) days following the Closing Date in accordance with their terms at their recorded amounts, in each case net of reserves shown on the balance sheet included within the Interim Financial Statements or the Closing Date Balance Sheet.  Except as set forth in Schedule 4.18, none of the accounts receivable has been pledged or assigned to any other Person.

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Section 4.19    Absence of Certain Changes or Events.
Except as set forth in Schedule 4.19, since the Interim Financial Statement Date, no Material Adverse Effect has occurred.  Except as contemplated by this Agreement or permitted under Section 6.2, since the Interim Financial Statement Date, the Company has carried on the Business in all material respects in the Ordinary Course of Business and there has not been any event, occurrence, or action taken of the type described in Section 6.2, which, had such event, occurrence, or action occurred following the date hereof without Buyer’s prior approval, would have violated Section 6.2.
Section 4.20    Labor Matters.
(a)    Schedule 4.20(a) contains a true, correct and complete list of the names, titles and current annual salary rates or current hourly wages, bonus opportunity, hire date, accrued vacation and paid-time-off, principal work location and leave status of all present employees of the Company, and each such employee’s status as being exempt or nonexempt from the application of local, state and federal wage and hour laws applicable to employees who do not occupy a managerial, administrative, or professional position.
(b)    The Company has not at any time been a party to, or bound by, any collective bargaining agreement, contract or other agreement or understanding with a labor union or labor organization.  The Company is not the subject of a proceeding asserting that any of them has committed an unfair labor practice (before the National Labor Relations Board or other governmental authority) or asserting any grievances, complaints, claims or judicial or administrative proceedings and, to the Knowledge of the Company, no such proceeding is threatened by or on behalf of any employees and no Person is seeking to compel the Company to bargain with any labor organization as to wages or conditions of employment. There is not, nor has there been during the past three (3) years, any strike or other material labor dispute or disputes involving the Company pending, or to the Knowledge of the Company, threatened.  There is no activity involving any of the Company’s employees seeking to certify a collective bargaining unit or engaging in other organizational activity.
(c)    The Company has not violated any applicable Law in any material respect regarding the terms and conditions of employment of employees, former employees or prospective employees or other labor or employment related matters, including any regulation relating to wrongful discharge, discrimination, personal rights, wages (including any overtime pay), hours, collective bargaining, fair labor standards or occupational health and safety.
(d)    The Company has paid in full to each current or former employee or adequately accrued in accordance with GAAP all wages, salaries, overtime pay, commissions, bonuses, benefits and other compensation due to or on behalf of such employees, and there is no claim with respect to payment of wages, salary, overtime pay, commissions, bonuses, benefits or for other compensation due to or on behalf of such employees that has been asserted or is now pending or, to the Knowledge of the Company, threatened before any governmental authority with respect to any current or former employee.  There are no material liabilities, whether contingent or absolute, of the Company relating to workers’ compensation benefits that are not fully insured against by a bona fide third-party insurance carrier.
(e)    The Company has not effectuated (i) a “plant closing” (as defined in the Worker Adjustment and Retraining Notification Act (the “WARN Act”) or any similar state, local or foreign Law) affecting any site of employment or one or more facilities or operating units within any site of employment or facility of the Company, or (ii) a “mass layoff” (as defined in the WARN Act, or any similar state, local or foreign Law) affecting any site of employment or facility of the Company.
(f)    Schedule 4.20(f) contains a list of all independent contractors, consultants or agents currently engaged by the Company, along with the position, date of retention and rate of remuneration for each such Person.  Except as set forth on Schedule 4.20(f), the Company does not engage or retain any independent contractors, consultants or agents.  The Company has properly classified all of its service providers as either employees or independent contractors and as exempt or non-exempt for all purposes under applicable Law, including local, state and federal wage and hour laws applicable to employees who do not occupy a managerial, administrative or professional position, and has made all appropriate filings in connection with services provided by, and compensation paid to, such service providers.  
(g)    Each current or former employee of the Company is or was at the time of his or her employment with the Company, (i) a United States citizen or lawful permanent resident of the United States or (ii) an alien authorized to work in the United States either specifically for the Company or for any United States employer, and the Company has completed a valid Form I-9 (Employment Eligibility Verification) for each such employee.  No current employee of the Company has a principal place of employment outside the United States or is subject to the labor and employment laws of any country other than the United States.  Each current employee of the Company who performs services in the United States is entitled to work in the United States under the Immigration Reform and Control Act of 1986, as amended, and all other applicable Laws.  Any current employee of the Company who performs services outside the United States is entitled to work under applicable Laws in the country in which such employee performs services and the reporting and payment of, and withholding from, such employee’s compensation complies with all applicable Laws in both the United States and the work country. 
Section 4.21    Transactions with Affiliates.
Except as set forth on Schedule 4.21, there are no outstanding amounts payable to or receivable from, or advances by the Company to, and the Company is not otherwise a creditor or debtor to, any Seller or any Affiliate of any Seller (other than the Company).  Except as set forth on Schedule 4.21, the Company has not purchased, acquired or leased any property or services from or sold, transferred or leased any property or services to, or made any management consulting or similar fee agreement with, or is otherwise party to any direct or indirect business arrangement or relationship with, or has any liabilities or obligations to, any Seller or any Affiliate of any Seller (other than the Company).  Except as set forth in Schedule 4.21, no shareholder, director, officer, consultant or employee of the Company personally owns, directly or indirectly, any material property or right (whether tangible or intangible) that is used by the Company.
Section 4.22    Sufficiency of Assets.
The assets and properties of the Company constitute all of the assets and properties that are required for the operation of the Business as currently conducted.
Section 4.23    No Regulatory Impediment.
Sellers and the Company are not aware of any material fact relating to the Business, operations, financial condition or legal status of the Company that might reasonably be expected to impair its ability to obtain all material consents, orders, authorizations and approvals from federal or state governmental authorities necessary for the consummation of the transactions contemplated hereby within the time period contemplated by this Agreement.
Section 4.24    Customers.
Attached as Schedule 4.24 is a true and correct list of each of the top ten (10) customers (with related or affiliated Persons aggregated for purposes hereof) of the Company, in each case for the year ended December 31, 2012 and for the year ended December 31, 2013, together with the aggregate amount of the revenues received from each such customer during such periods.  Since the Interim Financial Statement Date, except as set forth on Schedule 4.24, none of such customers has notified the Company that such customer intends to discontinue or materially reduce its relationship with the Company.
Section 4.25    Bank Relationships.
Schedule 4.25 sets forth (a) a complete list of all accounts that the Company has with any banks, savings and loan associations or other financial institutions, indicating in each case account numbers, and (b) the names and identification of all Persons authorized to act or sign on behalf of the Company in respect of any of the foregoing or to draw thereon or to have access thereto (including all Persons with automatic debit rights).
Section 4.26    Illegal Payments.
The Company (a) has not used or is not using any Company funds for any illegal contributions, gifts or entertainment relating to political activity, (b) has not used any Company funds for any unlawful payments to any foreign or domestic government officials or employees, (c) has not established or maintained any unlawful fund of monies or other properties of the Company, or (d) has not made any bribe, payoff, influence payment or kickback that is prohibited by any applicable Law.
ARTICLE 5     
REPRESENTATIONS AND WARRANTIES OF BUYER
Buyer hereby represents and warrants to Sellers as of the date hereof and as of the Closing Date (in each case, except to the extent expressly related to a specific date) as follows:
Section 5.1    Organization of Buyer.
Buyer is duly organized and validly existing as a corporation and in good standing under the laws of the jurisdiction of its organization.  Buyer has full corporate power and authority to (a) conduct its business as it is presently being conducted, (b) own and lease its assets and properties and (c) consummate the transactions contemplated under this Agreement and any of the Related Documents to which Buyer is a party.
Section 5.2    Authorization.
Buyer has all requisite power and authority necessary for the execution, delivery and performance by it of this Agreement and each Related Document to which Buyer is a party.  The execution, delivery and performance by Buyer of this Agreement and the Related Documents to which Buyer is, or will be at Closing, a party and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action on the part of Buyer.  This Agreement has been duly executed and delivered by Buyer and, assuming the due execution of this Agreement by the other parties hereto, is a valid and binding obligation of Buyer, enforceable against it in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, receivership, conservatorship, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting the rights and remedies of creditors generally, and general principles of equity (whether considered in a proceeding at law or in equity).  The Related Documents to which Buyer is a party will be, when duly executed and delivered by each of the parties thereto, a valid and binding obligation of Buyer, in each case enforceable against Buyer in accordance with its terms, except that such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting the rights or remedies of creditors or general principles of equity (whether considered in a proceeding at law or in equity).
Section 5.3    Consents and Approvals.
No consent, approval or authorization of, or declaration, notice, filing or registration with, any governmental or regulatory authority, or consent, approval or authorization of any other Person, is required to be made or obtained by Buyer on or prior to the Closing Date in connection with the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement, except any required approvals or consents from federal and state regulatory agencies.
Section 5.4    No Brokers.
Buyer has not employed, and is not subject to any claim of, any broker, finder, consultant or other intermediary in connection with the transactions contemplated by this Agreement or the Related Documents.  
Section 5.5    No Conflict or Violation.
Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated by this Agreement (assuming the taking of all necessary actions by each party hereto (including the obtaining of each necessary authorization, consent or approval) and the making of all filings with all applicable governmental authorities) will (a) conflict with or result in a breach that would constitute a default (or which would give rise to any right of consent, acceleration or termination or the loss of any benefit) under any term or provision of any Contract, agreement, indebtedness, lease, commitment, license, franchise, Permit, authorization or concession to which Buyer or any of its Affiliates is a party or is subject or by which any material assets of Buyer or such Affiliate are bound, (b) result in any violation of the provisions of the charter or bylaws of Buyer, or (c) result in any violation by Buyer or any of its Affiliates of any applicable Law.
Section 5.6    Financial Ability.
Taking into account funds readily available under its credit facility, Buyer presently has, and at the Closing will have, sufficient funds available to it to consummate the transactions contemplated in this Agreement and the Related Documents, including payment of all amounts contemplated by this Agreement and the Related Documents, and the Closing is subject to no financing condition.
Section 5.7    Acquisition of Purchased Shares.
Buyer has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of its purchase of the Purchased Shares.  Buyer confirms that Sellers have made available to Buyer the opportunity to ask questions of the officers and management employees the Company and to acquire additional information about the business and financial condition of the Company.  Buyer is acquiring the Purchased Shares for investment and not with a view toward or for sale in connection with any distribution thereof, or with any present intention of distributing or selling the Purchased Shares.  Buyer understands that the Purchased Shares have not been, and will not be, registered under the Securities Laws, or under any state securities laws, and are being offered and sold in reliance upon federal and state exemptions for transactions not involving any public offering.  Buyer agrees that the Purchased Shares may not be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of without registration under Securities Laws, except pursuant to an exemption from registration under such Securities Laws, and without compliance with state securities laws, in each case, to the extent applicable.
ARTICLE 6     
ACTIONS BY THE COMPANY, SELLERS AND BUYER PRIOR TO THE CLOSING
The Company, Sellers or Buyer, as the case may be, covenant as follows for the period from the date hereof until the earlier of the Closing Date or the termination of this Agreement pursuant to Section 12.1 (the “Interim Period”):
Section 6.1    Maintenance of Business.
Sellers shall cause the Company in all material respects to, and the Company shall in all material respects, (a) carry on its business, in the Ordinary Course of Business except as contemplated or required by this Agreement, or as otherwise agreed in writing by the parties hereto, (b) use commercially reasonable efforts to maintain and preserve intact the business organization, employees and advantageous business relationships of the Company and (c) take no action which would reasonably be expected to adversely affect or delay its ability to obtain any approvals or consents required to consummate the transactions contemplated hereby. 
Section 6.2    Certain Prohibited Transactions.
Except as permitted or contemplated by this Agreement, Sellers shall cause the Company not to, and the Company shall not, without the prior written approval of Buyer, which shall not be unreasonably withheld, conditioned or delayed:
(f)    (i) hire or terminate any employee, consultant or manager (except with respect to non-executive employees with aggregate annual compensation less than $75,000 hired in the Ordinary Course of Business consistent with past practice), (ii) increase the compensation or benefits payable or provided by the Company to any individual (other than any increase in compensation or benefits required by Law or required pursuant to the terms of an existing Company Employee Benefit Plan or existing employment, consulting, change of control, severance or similar agreement with any current or former director, officer, employee or consultant to the extent true, correct and complete copies thereof have been made available to Buyer and are listed on Schedule 4.7(a) or Schedule 4.16(a), as applicable), (iii) enter into or commit itself to any new officer employment, management or consulting agreement with any Person, other than agreements that can be terminated without additional payment in less than thirty (30) days, or (iv) enter into, adopt, amend or terminate any Company Employee Benefit Plan;
(g)    issue any broadly distributed communication of a general nature to Continuing Employees (including general communications relating to benefits and compensation), except for communications that either are in the Ordinary Course of Business that do not relate to the transactions contemplated hereby or are made pursuant to a communications plan agreed to by the Company and Buyer;
(h)    except as set forth on Schedule 6.2(c), and except in the Ordinary Course of Business, permit or allow any material assets or properties of the Company to be subject to any Encumbrance (other than a Permitted Encumbrance);
(i)    make any capital expenditure or any commitment to make any capital expenditure, except for such expenditures or commitments, individually or in the aggregate, not exceeding $50,000 made consistent with the budget attached hereto as Schedule 6.2(d);
(j)    enter into, amend or modify in any material respect, or terminate prior to the scheduled termination date set forth therein, any Material Contract other than in the Ordinary Course of Business;
(k)    except as set forth on Schedule 6.2(f), sell, lease, license, transfer or otherwise dispose of, or acquire or agree to acquire, any material assets;
(l)    incur or otherwise become responsible for any Indebtedness in excess of $50,000, except for borrowings in the Ordinary Course of Business (all of which Indebtedness, including the borrowings in the Ordinary Course of Business, will be included in the Closing Net Indebtedness or repaid or released in full prior to the Closing), or make any loan, advance or capital contribution to, or investment in, any other Person (other than loans or advances to employees in the Ordinary Course of Business);
(m)    change in any material respect any (i) financial accounting policies, practices or procedures, (ii) collections, pricing, origination, or credit policies, practices or procedures, or (iii) actuarial, reserving, investment or risk management or other similar policies of the Company;
(n)    delay or postpone the payment of accounts payable or other liabilities or accelerate the collection of accounts receivable;
(o)    settle or commence any material Litigation or waive any material rights or claims, including under any Material Contract;
(p)    (i) reclassify, combine, split, subdivide or redeem, purchase or otherwise acquire, directly or indirectly, any of its capital stock (or other equity securities), (ii) issue or commit to issue any shares of capital stock of the Company or obligations or securities convertible into or exchangeable for capital stock of the Company, (iii) grant any stock appreciation rights, (iv) grant any Person any right to acquire any shares of capital stock of the Company, or (v) declare, set aside or pay any dividend or make any distribution (whether payable in cash, stock or property) or payment in respect of its capital stock;
(q)    amend its charter or bylaws;
(r)    merge with any other Person or permit any other Person to merge into it or consolidate with any other Person;
(s)    take any action that, individually or in the aggregate, is intended or may reasonably be expected to result in any of its representations and warranties set forth in this Agreement being or becoming untrue in any material respect at any time during the Interim Period, or in any of the conditions set forth in Article 7 or Article 8 not being satisfied in any material respect or in a material violation of any provision of this Agreement, except, in each case, as may be required by Applicable Requirements;
(t)    make or change any Tax election, file any amended Tax Return, enter into any closing agreement, settle any Tax claim or assessment of or relating to the Company, surrender any right to claim a refund of Taxes, or consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment upon or relating to the Company;
(u)    except as set forth on Schedule 6.2(p), engage in any transaction with, or enter into any agreement, arrangement, or understanding with, directly or indirectly, any Affiliate, or make any payment or distribution to any Affiliate (other than payments for services to an officer, director, manager or employee of the Company), except for transactions in the Ordinary Course of Business or involving immaterial amounts or terms; or
(v)    authorize, commit or agree to take any of the foregoing actions.
Section 6.3    Access.
Sellers shall cause the Company to allow Buyer, upon reasonable notice at a mutually agreed upon time, (a) to make such investigation of the Business, properties, books and records of the Company, (b) to conduct such examination of the condition of the Company as Buyer reasonably deems necessary or advisable for purposes of an orderly integration of the Company by Buyer following Closing, and (c) for other purposes reasonably consistent with this Agreement.
Section 6.4    Regulatory Approvals.
As soon as practicable after execution and delivery of this Agreement, Buyer and Sellers shall make all filings required (if any) under applicable Laws for consummation of the transactions contemplated hereby.  In addition, Buyer and Sellers will each furnish as promptly as practicable all information as may be reasonably required by any federal or state regulatory agency properly asserting jurisdiction in order that the requisite approvals for the transactions contemplated hereby may be obtained or to cause any applicable waiting periods to expire.  Sellers and Buyer will, as soon as practicable, use commercially reasonable efforts to take, or cause to be taken, all action required to obtain as promptly as practicable all necessary Permits, consents, approvals, authorizations and agreements of, and to give all notices and reports and make all other filings with, any governmental or regulatory authority, necessary to authorize, approve or permit the consummation of the transactions contemplated hereby, and Buyer and Sellers shall cooperate with each other in good faith with respect thereto. To the extent such documents are publicly available, Buyer and Sellers shall promptly provide to each other copies of all applications, documents, correspondence and written comments that each of them or any of their Affiliates files with, sends to or receives from any regulatory or governmental agency, or the staff or supervisory agents of any of them, relating to this Agreement and the transactions contemplated herein, including any applications filed for the purpose of obtaining any necessary regulatory consents, approvals or waivers. Buyer and each Seller represents and warrants that all information concerning it, its Affiliates or their respective directors, officers, shareholders and subsidiaries (or submitted for inclusion) in any such application or filing shall be true, correct and complete in all material respects.
Section 6.5    Efforts to Close.
Subject to the terms and conditions herein provided, each of the parties hereto shall use commercially reasonable efforts to take, or cause to be taken, all action or do, or cause to be done, all things necessary, proper or appropriate to consummate and make effective the transactions contemplated hereby and to cause the fulfillment of the parties’ obligations hereunder.
Section 6.6    Consents and Waivers of Third Parties.
Sellers shall cause the Company to use commercially reasonable efforts, and Buyer, upon request of Sellers, shall use commercially reasonable efforts to cooperate with the Company and Sellers, in attempting to secure any approvals or consents from (or file notices with or obtain waivers from) any third party required to consummate the transactions contemplated herein.  Sellers shall cause the Company to provide such information to Buyer as may be reasonably necessary to enable Buyer to arrange the pay off and termination at Closing of all the Company’s existing financing with third parties and shall cooperate with Buyer in the filing of UCC-3 termination statements and other similar instruments to effect the release of all Encumbrances related thereto.
Section 6.7    Section 280G.
(c)    Sellers and the Company shall obtain and deliver to Buyer, prior to the initiation of the requisite shareholder approval procedure under Section 6.7(b), a Parachute Payment Waiver from each Person who is, with respect to the Company, a “disqualified individual” (within the meaning of Section 280G) and who will or may, absent such Parachute Payment Waiver, receive or have the right or entitlement to receive a “parachute payment” (within the meaning of Section 280G) in connection with the transactions contemplated by this Agreement.
(d)    As soon as practicable following the delivery by the Company to Buyer of the Parachute Payment Waivers, the Company shall provide adequate disclosure of, and submit to the shareholders of the Company for approval, in each case, in accordance with Section 280G, any payments and/or benefits that are subject to a Parachute Payment Waiver, such that, if approved by the Company’s shareholders in accordance with Section 280G, such payments and benefits shall not be deemed to be “parachute payments” under Section 280G.  Prior to the Closing, the Company shall deliver to Buyer evidence reasonably satisfactory to Buyer (i) that a Company shareholder vote was solicited in conformance with Section 280G, and the requisite Company shareholder approval was obtained with respect to any payments and/or benefits that were subject to the Company shareholder vote (the “Section 280G Approval”), or (ii) that the Section 280G Approval was not obtained and, as a consequence, pursuant to the Parachute Payment Waiver, all payments or benefits that would constitute “parachute payments” if paid or provided shall not be paid or provided.  The Company shall use its commercially reasonable efforts to obtain the Section 280G Approval in a manner which satisfies all applicable requirements of Section 280G(b)(5)(B) of the Code and the regulations promulgated thereunder (in either case, the “Section 280G Vote Materials”).  The form of the Parachute Payment Waiver and any materials to be submitted to the Company’s shareholders in connection with the Section 280G Approval shall be subject to review and approval by Buyer, which approval shall not be unreasonably withheld.  
Section 6.8    Exclusive Dealing.
During the Interim Period, Sellers shall not, directly or indirectly, take, nor will Sellers permit any of its Affiliates or representatives to take, and the Company shall not, directly or indirectly, take, nor will the Company permit any of its Affiliates or representatives to take, any action to solicit, initiate, encourage any inquiry, proposal or offer from any Person or engage in discussions or negotiations with, furnish any information to, or enter into any agreement with or accept any offer from any Person (other than Buyer, its Affiliates and their respective representatives) concerning any Acquisition Proposal.
Section 6.9    No Transfer of Stock.  
Each Seller covenants that prior to the Closing, without Buyer’s written consent, such Seller shall not sell, transfer, mortgage, pledge or otherwise dispose of, or suffer to be imposed any Encumbrance on, the Purchased Shares owned of record or beneficially by such Seller.
Section 6.10    Updated Disclosure Schedule.  
At any time during the Interim Period, but in any event promptly upon becoming aware of any actions, events, conditions, circumstances or matters for which a Disclosure Schedule Supplement is required to be delivered pursuant hereto, the Company shall deliver to Buyer written updates to, or written substitutions of, any section of the Disclosure Schedule identified in Article 4 in order to make the representations and warranties set forth in Article 4 true and correct in all material respects as of the Closing Date (or if such representation and warranty is qualified by materiality, then true and correct in all respects as of the Closing Date) (each such additional written disclosure, a “Disclosure Schedule Supplement”); provided, that a Disclosure Schedule Supplement may only amend sections of this Agreement to reflect actions, events, conditions, circumstances or matters (a) occurring or arising after the execution and delivery of this Agreement, and (b) which are not the result of the failure by any Seller or the Company to perform or comply with any covenant set forth in this Agreement.  The sections to the Disclosure Schedule as amended by any such Disclosure Schedule Supplement shall be effective for all purposes of this Agreement; provided, that such Disclosure Schedule Supplement shall not affect Buyer’s right to terminate this Agreement in accordance with Section 12.1(b).
Section 6.11    Financial Statements; Access to Financial and Other Information.
(a)    The Company shall furnish to Buyer within thirty (30) days after the end of each month and within forty-five (45) days after the end of each fiscal quarter ending during the Interim Period a statement of income and expense of the Company for the applicable month and/or quarter just ended and such financial information (including information on payables and receivables) as Buyer may reasonably request and which is prepared in the Ordinary Course of Business and in accordance with GAAP.
(b)    On not less than seven (7) Business Days’ prior written notice from Buyer and at Buyer’s expense, the Company agrees to provide Buyer and Buyer’s auditors sufficient access to the Company’s information and personnel to obtain all of the information they reasonably require to obtain or develop historical and/or pro forma financial information regarding the Business as Buyer reasonably believes is necessary or appropriate in complying with its public reporting obligations under applicable Securities Laws or the rules of any applicable stock exchange.
Section 6.12    D&O Insurance.
Prior to the Closing, Sellers shall cause the Company to purchase a six (6) year extended reporting period endorsement with respect to the current policies of the directors’ and officers’ liability insurance maintained by the Company (a “Reporting Tail Endorsement”).  All costs, fees and expenses related to the Reporting Tail Endorsement shall be borne by Sellers and shall constitute a Company Transaction Expense.
Section 6.13    Founders Agreement.
The Company and each Seller hereby consents to waive the application of any provision of the Founders Agreement to the transactions contemplated hereby (other than the provisions relating to the “Limited Share Value” of certain Stock held by Juan Esteban Pereira and the distribution of the “Excess Amount Per Share” (in each case, as those terms are defined and used in the Founders Agreement)) and hereby agree that the Founders Agreement shall automatically terminate and be of no further force or effect without further action of any Seller or the Company upon the Closing.
Section 6.14    Indirect Tax Liabilities.
During the Interim Period, Sellers may (or may cause the Company to), with the consent and participation of Buyer, inquire of the customers of the Company and/or the applicable state, local, federal or foreign Tax authorities regarding the status of payment or satisfaction of the Indirect Tax Liabilities, but may not take any action to (a) collect from the customers of the Company, or require that any such customer in any way mitigate, minimize, pay, provide for the payment of, remit or otherwise satisfy, the Indirect Tax Liabilities or (b) negotiate the resolution of such Indirect Tax Liabilities with the customers of the Company and/or the applicable state, local, federal or foreign Tax authorities.  Concurrently with the Company’s delivery of the Estimated Closing Statement to Buyer, the Company shall deliver a revised version of Schedule 2.5(a) reflecting the Company’s good-faith estimate of Indirect Tax Liabilities (“Adjusted Schedule 2.5(a)”), which Adjusted Schedule 2.5(a) shall be subject to the review, negotiation and acceptance process set forth in Section 2.5(a) for the Estimated Closing Statement.
ARTICLE 7     
CONDITIONS TO THE COMPANY’S AND SELLERS’ OBLIGATIONS
The obligations of the Company and Sellers to consummate the transactions contemplated hereby on the Closing Date are subject, in the reasonable discretion of Sellers, to the satisfaction or waiver in writing, on or prior to the Closing Date, of each of the following conditions:
Section 7.1    Representations, Warranties and Covenants.
All representations and warranties of Buyer contained in this Agreement (a) if qualified in any respect as to materiality, shall be true and correct, and (b) if not qualified by materiality, shall be true and correct in all material respects, as of the date of this Agreement and as of the Closing Date as though made on and as of the Closing Date (or on the date when made, in the case of any representation and warranty that specifically relates to an earlier date), and Buyer shall have performed or complied with, in all material respects, all agreements and covenants required hereby to be performed or complied with by Buyer prior to or at the Closing.  Buyer shall deliver to Sellers a certificate (signed by the President or a Vice President of Buyer), certifying as to the satisfaction of the conditions in the immediately preceding sentence.
Section 7.2    No Governmental Orders.
None of the parties hereto shall be subject to any order, decree or injunction of a court or agency of competent jurisdiction that enjoins or prohibits the consummation of this Agreement or the transactions contemplated hereby.
Section 7.3    Corporate Authority.
Sellers shall have received certified copies of resolutions adopted by the board of directors of Buyer approving the execution, delivery and performance of this Agreement.
Section 7.4    Escrow Agreement.
Sellers shall have received the Escrow Agreement, duly executed by the Escrow Agent and Buyer.
ARTICLE 8     
CONDITIONS TO BUYER’S OBLIGATIONS
The obligations of Buyer to consummate the transactions contemplated hereby on the Closing Date are subject, in the reasonable discretion of Buyer, to the satisfaction or waiver in writing, on or prior to the Closing Date, of each of the following conditions:
Section 8.1    Representations, Warranties and Covenants.
All representations and warranties of each Seller and the Company contained in this Agreement (a) if qualified in any respect as to materiality (including references to Material Adverse Effect), shall be true and correct, and (b) if not qualified by materiality (including references to Material Adverse Effect), shall be true and correct in all material respects, as of the date of this Agreement and as of the Closing Date as though made on and as of the Closing Date (or on the date when made, in the case of any representation and warranty which specifically relates to an earlier date), and each Seller and the Company shall have performed or complied with, in all material respects, all agreements and covenants required hereby to be performed or complied with by them prior to or at the Closing.  Each Seller and the Company shall deliver to Buyer a certificate from each Seller and the Company (with respect to the certificate to be delivered by the Company, signed by the President or a Vice President of the Company), certifying as to the satisfaction of the conditions in the immediately preceding sentence, as applicable.
Section 8.2    Consents.
The Company and Sellers, as applicable, shall have obtained and delivered to Buyer the Permits, consents, approvals and waivers set forth in Schedule 8.2.
Section 8.3    No Governmental Orders.
None of the parties hereto shall be subject to any order, decree or injunction of a court or agency of competent jurisdiction that enjoins, conditions or prohibits the consummation of this Agreement or the transactions contemplated hereby.
Section 8.4    Payoff Letters.
The Company shall have delivered to Buyer satisfactory payoff letters evidencing the repayment in full of the Indebtedness set forth on Schedule 8.4 and the release of all related Encumbrances on the assets of the Company.
Section 8.5    No Material Adverse Effect.
Between the date hereof and the Closing Date, there shall not have occurred a Material Adverse Effect.
Section 8.6    Employment.
The Company and each of Jeff Buck, Juan Esteban Pereira and Alan Friedman shall have entered into employment agreements substantially in the form attached hereto as Exhibit C (collectively, the “Employment Agreements”), which Employment Agreements will become effective as of the Closing.
Section 8.7    Option and Warrant Cancellation.
The Company shall have delivered to Buyer evidence, satisfactory to Buyer, that the Options and the Warrant have been, or at the Closing shall be, cancelled in accordance with Section 2.3(b) and Section 2.3(c), respectively, and neither any Option Holder nor the Warrantholder shall have any claims in connection with the Options and the Warrant, respectively, and the cancellations thereof (except for the payments to the Option Holders and the Warrantholder described in Section 2.3(b) and Section 2.3(c), respectively). 
Section 8.8    Section 280G.
The Company shall have timely delivered all Parachute Payment Waivers to Buyer prior to the solicitation of the Section 280G Approval and the Company shall have delivered to Buyer prior to Closing the Section 280G Vote Materials.  
ARTICLE 9     
ACTIONS BY SELLERS AND BUYER AFTER THE CLOSING
Section 9.1    Confidentiality.
From and after the Closing, except as required by applicable Law, each Seller agrees, severally and not jointly, with Buyer that such Seller shall, and shall cause its Affiliates and authorized representatives to, hold all Confidential Information that such Seller possesses concerning the Company and the Business in confidence and not disclose to any third party any such Confidential Information possessed by it, unless such information (a) is disclosed with the prior written approval of Buyer, (b) is or becomes readily available to the public without breach of the terms hereof, or (c) is required to be disclosed by Law, regulation, supervisory authority, other applicable judicial or governmental order or applicable stock exchange rules.  Without limiting the foregoing, each Seller agrees to return to the Company on or before the Closing all Confidential Information such Seller possesses concerning the Company, except such Confidential Information as such Seller is required to maintain for a valid legal or business purpose.  In the event that this Agreement is terminated or the transactions contemplated by this Agreement otherwise fail to be consummated, Buyer promptly will cause all copies of documents or extracts thereof containing information and data as to Sellers or the Company to be returned to Sellers at Buyer’s expense, or (at Buyer’s option) confirm in writing to Sellers that Buyer has completely destroyed all such copies, documents, extracts, information and data.
Section 9.2    Further Assurances.
On and after the Closing Date, Sellers, Sellers’ Representative, the Company and Buyer will take all appropriate action and execute all documents, instruments or conveyances of any kind which may be reasonably necessary or advisable to carry out any of the provisions hereof.
Section 9.3    Noncompetition and Nonsolicitation.
The covenants and agreements set forth in this Section 9.3 shall be between each Restricted Seller (severally, and not jointly with any other Restricted Seller or any other Seller) and Buyer only, with no other Sellers being party to this Section 9.3.  Subject to the foregoing and in further consideration for the payment of the Purchase Price and in order to protect the value of the Purchased Shares purchased by Buyer (including the goodwill inherent in the Company as of the Closing):
(a)    Each Restricted Seller, severally and not jointly, agrees that, during the period beginning on the Closing Date and ending on the date which is three (3) years following the Closing Date, he shall not, within the United States of America, without the prior written consent of Buyer and except for the ownership of less than two percent (2%) of the outstanding voting securities of an entity whose voting securities are traded on a national securities exchange or quoted on a recognized automated quotation system, directly or indirectly, either on his own behalf or on the behalf of any other Person, own, manage, control, participate in, consult with, render services for, permit his name to be used in connection with or in any other manner engage in all or any portion of the Business, as it is being conducted as of the date of this Agreement.  For purposes of this Section 9.3, the term “participate” includes any direct or indirect interest in any enterprise, whether as an officer, director, employee, partner, sole proprietor, agent, representative, independent contractor, seller, franchisor, franchisee, creditor or owner.
(b)    Each Restricted Seller agrees, severally and not jointly, that, for a period beginning on the date of this Agreement and ending on the date two (2) years following the Closing Date, neither he nor his Affiliates or representatives will, directly or indirectly, (i) solicit for employment any of the Continuing Employees or (ii) call on, solicit, or provide services to any Person who at any time during the two (2) year period prior to the Closing Date was a customer, client or licensee of the Company (a “Business Client”) for the purpose of providing to such Person services or products that are within the Business (as it is conducted as of the Closing Date), or encourage, induce or solicit, or attempt to encourage, induce or solicit, any Business Client to cease doing business with the Company; provided, however, that it is understood that this Section 9.3(b) shall not, in the case of clause (i), prohibit generalized solicitations by advertising and the like which are not directed to the Continuing Employees.
(c)    Each Restricted Seller acknowledges that the restrictions and agreements contained in this Section 9.3 are reasonable and necessary to protect the legitimate interests of Buyer, and that any violation of this Section 9.3 by such Restricted Seller will cause substantial and irreparable injury to Buyer that would not be quantifiable and for which no adequate remedy would exist at law, and agrees that injunctive relief, in addition to all other remedies, shall be available therefor.  Each Restricted Seller further acknowledges that the restrictions and agreements contained in this Section 9.3 are integral to this Agreement and the transactions contemplated hereby and that without the protection of such restrictions and agreements, Buyer would not have entered into this Agreement.
(d)    It is the intent and understanding of Buyer and each Restricted Seller that if, in any action before any court or agency legally empowered to enforce this Section 9.3, any term, restriction, covenant, or promise is found to be unreasonable and for that reason unenforceable, then such term, restriction, covenant or promise shall not thereby be terminated, but shall be deemed modified to the extent necessary to make it enforceable by such court or agency and, if it cannot be so modified, that it shall be deemed amended to delete therefrom such provision or portion adjudicated to be invalid or unenforceable, such modification or amendment in any event to apply only with respect to the operation of this Section 9.3 in the particular jurisdiction in which such adjudication is made.
Section 9.4    Post-Closing Cooperation and Retention of Records.
(e)    Buyer and Sellers agree that following the Closing, each party and/or their independent auditors shall have reasonable access during normal business hours to the books and records of the Company and its predecessors applicable to the period prior to the Closing, and shall have the reasonable assistance and cooperation of appropriate personnel consistent with assistance and cooperation furnished during the period prior to the Closing, in each case in connection with the audit, reporting, Litigation or similar needs of Sellers. This Section 9.4(a) shall not apply to any books, records or other matters relating to Taxes, which shall be governed by Article 11 hereof.
(f)    Following the Closing, Buyer shall, and shall cause the Company to, (i) subject to the last sentence of this Section 9.4(b), preserve and keep the records of the Company held by the Company prior to the Closing relating to the Business (including personnel records) for so long as and to the extent required by applicable Law (but in no event less than three (3) years after the Closing Date), and (ii) to the extent permitted by applicable Law, make such records and personnel available to Sellers and their Affiliates, subject to customary confidentiality commitments reasonable under the circumstances, as may be reasonably required by any such party in connection with any insurance claims by, legal proceedings against or investigations by any governmental authority of, Sellers or any of their Affiliates or for similar matters or to enable Sellers to comply with their obligations under applicable Law and this Agreement.  In the event Buyer or any of its Affiliates wishes to destroy any such records after that time in accordance with its normal document retention policy, then Buyer shall (or shall cause such Affiliate to) give thirty (30) days’ prior written notice to Sellers and (to the extent permitted by applicable Law) Sellers shall have the right at their option and expense, upon prior written notice given within such 30-day period, to take possession of the records within sixty (60) days after the date such notice is given.  Sellers shall reimburse Buyer for the cost incurred by Buyer of providing such assistance (including reasonably allocated charges for the cost of the time of any employees of Buyer or the Company made available to Sellers).  This Section 9.4(b) shall not apply to any books, records or other matters relating to Taxes, which shall be governed by Article 11 hereof.
Section 9.5    Indemnification of Directors and Officers.  
For a period of at least six (6) years after the Closing Date, Buyer shall cause the charter and bylaws of the Company to contain provisions no less favorable with respect to the limitation or elimination of liability and indemnification than are set forth in such charter and bylaws as of the date of this Agreement, and such provisions shall not be amended, repealed or otherwise modified in any manner that would adversely affect the rights thereunder of individuals who at or prior to the Closing were directors, officers, agents or employees of the Company or who were otherwise entitled to indemnification pursuant to such charter and bylaws.  In the event the Company, or any of its respective successors or assigns (a) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity in such consolidation or merger, or (b) transfers all or substantially all of its properties and assets to any Person, then, and in either such case, Buyer shall use commercially reasonable efforts to ensure that the successors and assigns of the Company shall assume, at and as of the closing of the applicable transaction referred to in this Section 9.5, all of the obligations set forth in this Section 9.5.  The provisions of this Section 9.5 are (i) intended to be for the benefit of, and shall be enforceable by, each Person entitled to indemnification under this Section 9.5, and each such Person’s heirs, legatees, representatives, successors and assigns, it being expressly agreed that such Persons shall be intended third-party beneficiaries of this Section 9.5, and (ii) in addition to, and not in substitution for, any other rights to indemnification that any such Person may have by contract or otherwise.
Section 9.6    Continuing Employees.  
(a)    For a period of at least one (1) year following the Closing Date, Buyer shall provide, or shall cause the Company to provide, to the Continuing Employees (so long as they are employees) compensation that is, in the aggregate, at least as favorable to such employees as the compensation the Company provided to such employees immediately prior to the Closing (including bonuses, commissions and/or other incentive opportunities at their respective target opportunity levels, but excluding (i) all items of equity compensation and related plans or programs and (ii) with respect to Jeff Buck, the life insurance policy maintained for him by the Company).
(b)    For a period of at least one (1) year following the Closing Date, Buyer shall provide, or shall cause the Company to provide, to the extent possible within Buyer’s current plans available through its carriers, to the Continuing Employees (so long as they are employees) employee benefits that, in the aggregate, are at least as favorable to such employees and their dependents as the benefits the Company provided to such employees and their dependents immediately prior to the Closing.  Continuing Employees shall receive credit for the purposes of eligibility to participate and vesting (but not for benefit accruals) under any plan or other program maintained by the Company as of the Closing Date for service accrued or deemed accrued prior to the Closing with the Company; provided, however, that such crediting of service shall not operate to duplicate any benefit or the funding of any such benefit.  In addition, Buyer shall waive, or cause to be waived, any limitations on benefits relating to any pre-existing conditions to the same extent such limitations are waived under any comparable plan of Buyer or its Subsidiaries and recognize, for purposes of annual deductible and out-of-pocket limits under its medical and dental plans, deductible and out-of-pocket expenses paid by the Continuing Employees (effective with their coverage date under Buyer’s plans) in the calendar year in which the Closing occurs.
(c)    Nothing contained in this Section 9.6 (i) shall alter or limit Buyer or the Company’s ability to amend, modify or terminate any particular benefit plan, program, agreement or arrangement, (ii) is intended to confer upon any current or former employee of the Company any right to employment or continued employment for any period of time by reason of this Agreement, or (iii) is intended to confer upon any individual (including employees, retirees, or dependents or beneficiaries of employees or retirees) any right as a third-party beneficiary of this Agreement.
ARTICLE 10     
INDEMNIFICATION AND MUTUAL RELEASE
Section 10.1    Indemnification by Sellers.
(e)    Indemnification.  From and after the Closing, subject to the provisions of this Article 10 and except as provided in Section 10.3 hereof, each Seller, severally, based on its Seller Pro Rata Percentage set forth in Schedule I, shall save, defend, indemnify and hold harmless Buyer, the Company, and their respective Affiliates, and each of their respective past, present and future directors, officers, agents and representatives (together, the “Buyer Indemnified Parties”) from and against any and all Losses incurred or suffered by, or assessed against, such Buyer Indemnified Party and arising out of or resulting from:
(i)    the breach of, or any inaccuracy in, any representation or warranty made by the Company or such Seller in Article 4 of this Agreement or in the certificate delivered by the Company or such Seller pursuant to Section 8.1; 
(ii)    the failure by the Company or such Seller to timely perform or comply with any obligation or covenant of the Company or such Seller, as the case may be, in this Agreement; or
(iii)    the Company Transaction Expenses, to the extent any such amount thereof to be paid on or before the closing is not paid in full at Closing (the “Unpaid Company Transaction Expenses”);
provided, that in the case of Losses arising out of or resulting from the breach of, or inaccuracy in, any of the Individual Reps made by a given Seller in Article 4 or the failure to perform or comply with any obligation or covenant to be performed or complied with by a given Seller, such Seller who made such Individual Rep or who failed to perform or comply with such obligation or covenant (and no other Seller) shall be solely responsible for such Losses pursuant to this Section 10.1(a).
(f)    Limits on Liability.  No Buyer Indemnified Party shall seek reimbursement or indemnification from Sellers for Losses under Section 10.1(a) until the Buyer Indemnified Parties, as a group, have suffered among them aggregate Losses under Section 10.1(a) in excess of $159,000 (the “Basket”), in which event the Buyer Indemnified Parties, as a group, may seek reimbursement or indemnification from Sellers severally (and not jointly) solely for the amount of such Losses in excess of the Basket, with each Seller obligated for an amount equal to the amount of such Losses in excess of the Basket multiplied by such Seller’s Seller Pro Rata Percentage set forth on Schedule I.  No Seller shall have any obligation under Section 10.1(a) to pay by way of indemnification any amounts exceeding twenty percent (20%) of the portion of the Purchase Price actually paid to such Seller (the “Cap”).  Notwithstanding the foregoing, the Basket and Cap shall not apply to:  (i) Losses resulting from breaches of, or any inaccuracies in, the representations and warranties contained in Section 4.1 (Organization of the Company), Section 4.2 (Capital Stock), Section 4.3 (Authorization), Section 4.4 (Subsidiaries), Section 4.13 (No Brokers), Section 4.14 (Intellectual Property and Technology), Section 4.15 (Taxes), Section 4.18 (Receivables) and Section 4.20(c), (d) and (f) (Labor Matters); (ii) Losses described in Section 11.2(a); (iii) Losses resulting from the failure to perform or comply with the obligations and covenants of a Seller or the Company in this Agreement; (iv) any Losses resulting from the Unpaid Company Transaction Expenses; or (v) any Losses resulting from fraud or intentional misrepresentation.  Notwithstanding anything to the contrary in this Agreement, (A) except for fraud, intentional misrepresentation or willful breach, and subject to the limitations set forth herein, the aggregate liability of any Seller for Losses shall be equal to the aggregate amount of all payments actually received by such Seller pursuant to Article 2 hereof and (B) no Seller shall be liable for the willful or intentional breach of another Seller, or for any act of fraud committed by another Seller.
(g)    Exclusion from Liability.  Notwithstanding anything else to the contrary in this Agreement, and in addition to any other limitations and exclusions set forth in this Agreement, Sellers shall not indemnify or hold harmless any Buyer Indemnified Party, and no Buyer Indemnified Party shall seek reimbursement or indemnity from Sellers for any Losses, unless written demand for reimbursement of such Losses is made no later than the date that is eighteen (18) months following the Closing Date, except that such time limitation shall not apply to the extent a Buyer Indemnified Party seeks reimbursement or indemnification for Losses resulting from (i) breaches of, or any inaccuracies in, any representations and warranties set forth in (A) Section 4.14 (Intellectual Property and Technology), Section 4.16 (Employee Benefit Plans) or Section 4.20(c), (d) and (f) (Labor Matters), in which case written demand for reimbursement or indemnification must be made within three (3) years from the Closing Date, (B) Section 4.1 (Organization of the Company), Section 4.2 (Capital Stock), Section 4.3 (Authorization), Section 4.4 (Subsidiaries) or Section 4.13 (No Brokers), in which case written demand for reimbursement or indemnification may be made at any time after Closing, and (C) Section 4.15 (Taxes), or the obligations and covenants set forth in Section 11.2(a), in which each such case written demand for reimbursement or indemnification must be made within the time period set forth in Section 11.2(e), or (ii) Losses resulting from the failure to perform or comply with the obligations and covenants of a Seller and the Company in this Agreement. The representations and warranties of the Company and Sellers herein shall survive the Closing until the date that is eighteen (18) months following the Closing Date or, if applicable, the time periods set forth in clause (i) of the preceding sentence.  Any such written demand must be delivered within the applicable time period set forth in this Section 10.1(c) and must (x) reasonably describe the Losses (to the extent known) that the Buyer Indemnified Party has determined in good faith have begun to accrue but in respect of which the total liability has not yet been fixed or (y) contain a notice from a third party of a claim that will cause actual Losses to accrue after such applicable survival period, including pending curtailments, lawsuits or government investigations, in which case the applicable survival period will be extended in order to cover the finally determined Losses related thereto.
Section 10.2    Indemnification by Buyer.
(e)    From and after the Closing, subject to the provisions of this Article 10 and except as provided in Section 10.3 hereof, Buyer shall save, defend, indemnify and hold harmless Sellers and their respective Affiliates, and each of their respective past, present and future directors, officers, agents and representatives (together, the “Seller Indemnified Parties”) from and against any Losses incurred or suffered by, or assessed against, such Seller Indemnified Party and arising out of or resulting from:
(i)    the breach of, or any inaccuracy in, any representation or warranty made by Buyer in Article 5 of this Agreement; or
(ii)    the failure by Buyer to timely perform or comply with any obligation or covenant in this Agreement.
(f)    Notwithstanding anything else to the contrary in this Agreement, and in addition to any other limitations and exclusions set forth in this Agreement, Buyer shall not indemnify or hold harmless any Seller Indemnified Party, and no Seller Indemnified Party shall seek reimbursement or indemnity from Buyer for any Losses, unless written demand for reimbursement of such Losses is made no later than the date that is eighteen (18) months following the Closing Date, except that such time limitation shall not apply to the extent Sellers seek reimbursement or indemnification for Losses resulting from (i) breaches of, or inaccuracies in, any representations and warranties set forth in Section 5.1 (Organization of Buyer) or Section 5.2 (Authorization), in which case written demand for reimbursement may be made at any time after Closing or (ii) Losses resulting from the failure to perform or comply with the obligations and covenants of Buyer in this Agreement.  Any such written demand must be delivered within the applicable time period set forth in this Section 10.2(b) and must (A) reasonably describe the Losses (to the extent known) that the Seller Indemnified Party has determined in good faith have begun to accrue but in respect of which the total liability may not yet have been fixed or (B) contain a notice from a third party of a claim that will cause actual Losses to accrue after such applicable survival period, including pending curtailments, lawsuits or government investigations, in which case the applicable survival period will be extended in order to cover the finally determined Losses related thereto.
Section 10.3    Coordination with Tax Indemnity.
Except as expressly provided in Article 11 hereof, the provisions of this Article 10 shall not apply to (a) any representations or warranties under Section 4.15 hereof, (b) any obligations or covenants contained in Article 11 hereof, and (c) any other provision of this Agreement providing any representation, warranty or covenant relating to Taxes.  Subject to the foregoing, Article 11 shall provide the exclusive means for indemnity under this Agreement for any indemnity for Losses relating to Taxes.
Section 10.4    Indemnification Procedure; Third-Party Claims.
(a)    Promptly after receipt by an indemnified party under Section 10.1 or 10.2 of notice of the commencement of any Litigation against it, such indemnified party will, if a claim is to be made against any indemnifying party under such Section, give notice to the indemnifying party of the commencement of such Litigation, but the failure to notify the indemnifying party will not relieve the indemnifying party of any liability that it may have to any indemnified party, except to the extent that the indemnifying party demonstrates that the defense of such action is prejudiced by the indemnifying party’s failure to give such notice. As used herein, the term “indemnifying party”, when referring to the obligation of Sellers to indemnify the Buyer Indemnified Parties pursuant to Section 10.1, shall be deemed to refer to Sellers’ Representative on behalf of Sellers.
(b)    If an indemnified party gives notice to the indemnifying party pursuant to Section 10.4(a) of the assertion of a third-party claim, the indemnifying party shall be entitled to participate in the defense of such third-party claim or, subject to Section 10.4(c), to the extent that it wishes, to assume the defense of such third-party claim at its sole cost and expense with counsel reasonably satisfactory to the indemnified party; provided, that the indemnified party shall have the right, but not the obligation, to participate, at its own cost and expense, in the defense of such third-party claim.  After notice from the indemnifying party to the indemnified party of its election to assume the defense of such third-party claim, the indemnifying party shall not, so long as it diligently conducts such defense, be liable to the indemnified party under this Article 10 for any fees of other counsel or any other expenses with respect to the defense of such third-party claim, in each case subsequently incurred by the indemnified party in connection with the defense of such third-party claim, other than reasonable costs of investigation. If the indemnifying party assumes the defense of a third-party claim, (A) such assumption will conclusively establish for purposes of this Agreement that the claims made in that third-party claim are within the scope of and subject to indemnification and (B) no compromise or settlement of such third-party claims may be effected by the indemnifying party without the indemnified party’s consent unless (I) there is no finding or admission of any violation of legal requirement or any violation of the rights of any party, (II) the sole relief provided is monetary damages that are paid in full by the indemnifying party, and (III) the indemnified party shall have no liability with respect to any compromise or settlement of such third-party claims effected without its consent.  If notice is given to an indemnifying party of the assertion of any third-party claim and the indemnifying party has the right to undertake the defense but does not, within fifteen (15) days after the indemnified party’s notice is given, give notice to the indemnified party of its election to assume the defense of such third-party claim, the indemnifying party will be bound by any determination made in such third-party claim or any compromise or settlement effected by the indemnified party.  With respect to any third-party claim subject to indemnification under this Article 10:  (y) both the indemnified party and the indemnifying party, as the case may be, shall keep the other party fully informed of the status of such third-party claim and any related proceedings at all stages thereof where such party is not represented by its own counsel; and (z) the parties agree (each at its own expense) to render to each other such assistance as they may reasonably require of each other and to cooperate in good faith with each other in order to ensure the proper and adequate defense of any third-party claim.
(c)    Notwithstanding the foregoing Section 10.4(b), if (i) the indemnifying party is also a party against whom the third-party claim is made and the indemnified party determines in good faith that joint representation would be inappropriate, (ii) the indemnifying party fails to provide reasonable assurance to the indemnified party of its financial capacity to defend such third-party claim and provide indemnification with respect to such third-party claim, (iii) an indemnified party determines in good faith that there is a reasonable probability that Litigation may materially and adversely affect it or its Affiliates (other than as a result of monetary damages for which it would be entitled to indemnification under this Agreement, and such non-monetary claim is not merely incidental to any such monetary claim), (iv) the indemnifying party fails to diligently conduct the defense of such third-party claim, or (v) the third-party claim is made against any Buyer Indemnified Party by a customer, supplier, licensor or licensee of any Buyer Indemnified Party and such Buyer Indemnified Party has determined in good faith that such Litigation or the compromise or settlement thereof may materially and adversely affect its continuing business relationship with any such customer, supplier, licensor or licensee, then, in each such case, the indemnified party may, by notice to the indemnifying party, assume the exclusive right to defend, compromise, or settle such Litigation, but the indemnifying party will not be bound by any determination of Litigation so defended or any compromise or settlement effected without its consent (which may not be unreasonably withheld, conditioned, or delayed).
(d)    In calculating Losses there shall be deducted (retroactively, if necessary) (i) any insurance proceeds actually recovered in respect thereof (and no right of subrogation shall accrue hereunder to any Insurer), (ii) any amount specifically accrued or reserved against as a liability on the Closing Date Balance Sheet with respect to such Losses (or, in the case of any such Loss consisting of the loss of, or reduced value of, any asset, the extent to which such asset was written down on the Closing Date Balance Sheet to reflect such reduction in value), (iii) any Tax benefit which the indemnified party actually recognizes in the taxable year in which such Loss is incurred as a result of incurring such Loss, and (iv) any amounts actually recovered from third Persons pursuant to indemnification or otherwise with respect thereto. Any indemnified party will use commercially reasonable efforts to recover insurance proceeds under its insurance policies that provide coverage with respect to a Loss; provided, that Losses indemnifiable hereunder shall include any cost to the indemnified party associated with such insurance recovery, including a reasonable estimate of increased future premiums or other insurance costs of the indemnified party.  In the event any of the foregoing deductible amounts are received by an indemnified party after the payment thereof by an indemnifying party, the indemnified party, within thirty (30) days of receiving such amount, shall pay to the indemnifying party (which, if the indemnifying party is a Seller, shall be paid to Sellers’ Representative) such amount (as the same may be offset by the costs set forth in the proviso of the immediately preceding sentence).  Buyer and Sellers agree that, for purposes of computing the amount of any indemnification payment under this Article 10 or Article 11 hereof, any such indemnification payment shall be treated as an adjustment to the Final Purchase Price for all Tax purposes.
(e)    An indemnified party shall make commercially reasonable efforts to mitigate any actual or potential Loss to the extent required by applicable Law, and the failure to do so shall result in a reduction in the indemnifying party’s indemnification obligation hereunder but only to the extent such efforts would have mitigated the Loss; provided, that such obligation to mitigate shall not apply to the extent this Article 10 expressly provides otherwise (for the avoidance of doubt, and by way of example, the provisions of Section 10.4(d) are intended to expressly modify such mitigation obligation). The indemnifying party shall have the right, but not the obligation, and shall be afforded the opportunity by the indemnified party to the extent reasonably possible, to make commercially reasonable efforts to minimize Losses before such Losses actually are incurred or suffered by, or assessed against, the indemnified party.
(f)    To the extent that an indemnified party is otherwise indemnified or compensated for any claim for which indemnification may be asserted under this Article 10 pursuant to any other provision in this Agreement (including pursuant to the Purchase Price Adjustment Amount set forth in Section 2.5 of this Agreement), then that indemnified party shall not be entitled to any duplicative recovery for that matter as an indemnification claim pursuant to this Article 10.
(g)    The parties agree that, other than as provided in Section 2.5, Section 9.3, and Article 11, and other than claims for specific performance, injunctive relief or other equitable remedies, from and after the Closing the remedies provided in this Article 10 shall be the sole and exclusive remedies for any indemnity claim or for a breach of the Company’s, Buyer’s, and Sellers’ representations, warranties, covenants or agreements contained in this Agreement, absent fraud, intentional misrepresentation or willful breach.
(h)    The parties covenant and agree that in the event any indemnity is actually paid to a Buyer Indemnified Party by or on behalf of Sellers pursuant to this Agreement due to a breach of, or inaccuracy in, Section 4.18 based solely upon the uncollectibility of any account receivable included in the Closing Date Working Capital, then Buyer shall (or shall cause the Company to) assign to Sellers’ Representative (on behalf of Sellers) such portion of the account receivable subject to such indemnification (without recourse or warranty, except as to title).  After such assignment, Sellers’ Representative will be permitted to exercise all remedies it deems necessary or appropriate against the account debtor to collect such assigned account receivable; provided, however, that if Sellers’ Representative commences any Litigation against any account debtor in respect of such account receivable, then Sellers’ Representative (on behalf of Sellers) shall indemnify the Company for any Losses incurred, sustained, suffered or paid by, or imposed upon the Company and defend at Sellers’ expense any Litigation (including any counterclaim) commenced against the Company by such account debtor arising from or in any way relating to the sale by the Company of any products to such account debtor, or the performance of any service by the Company for such account debtor, prior to the Closing Date.
(i)    The right to indemnification or other remedy based on the representations, warranties, covenants and agreements contained in this Agreement will not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of this Agreement or the Closing, with respect to the accuracy or inaccuracy of or compliance with, any such representation, warranty, covenant or agreement.
(j)    For purposes of determining whether any inaccuracy in, breach of, failure to perform or comply with, or Loss has occurred, or the amount of any such Loss, the representations, warranties, covenants and agreements of the parties set forth in this Agreement will be considered without regard to any materiality or Material Adverse Effect qualification set forth therein; provided, however, that the foregoing provision shall not apply to (i) the definition of “Material Contracts,” the listing of Material Contracts and the use of such term, and (ii) the Reps made in Section 4.5 (Financial Statements; Minute Books) with respect to the Financial Statements, Section 4.12(a) (Compliance with Law; Permits and Licenses), Section 4.16(c) (Employee Benefit Plans) and Section 4.19 (Absence of Certain Changes or Events).
Section 10.5    Procedure for Indemnification – Other Claims.
A claim for indemnification for any matter not involving a third-party claim may be asserted by notice to the party from whom indemnification is sought.  The indemnifying party shall have twenty (20) days after its receipt of such notice to respond to the claim(s) described therein, which response shall set forth, in reasonable detail, the indemnifying party’s objection(s) to the claim(s) and its bases for such objection(s) (a “Claim Response”).  If the indemnifying party fails to timely deliver a Claim Response to the indemnified party, then the indemnifying party shall be deemed to have accepted the claim(s) and its indemnification obligation with respect thereto.  If the indemnifying party timely delivers a Claim Response to the indemnified party, then the indemnified party and the indemnifying party shall negotiate the resolution of such claim(s) for a period of not fewer than thirty (30) days after delivery of the Claim Response.  If the indemnified party and the indemnifying party are unable to resolve such claim(s) within such time period, then the indemnified party may pursue the enforcement of the indemnity obligations hereunder as permitted by applicable Law.
Section 10.6    Payment of Amounts Due for Indemnification.
(c)    For so long as the Escrow Agent holds the Buyer Indemnification Amount (or a portion thereof), any and all indemnification obligations payable pursuant to this Agreement will be paid first from the Buyer Indemnification Amount, and in the event such payable amount exceeds the funds held in the Buyer Indemnification Amount, Buyer shall be entitled to recover such shortfall amount directly from Sellers, severally (and not jointly), based on their respective Seller Pro Rata Percentages, subject in all cases to the other terms and conditions of this Article 10.  The foregoing payments shall be made within five (5) Business Days after it is determined pursuant to this Article 10 that any amount is due to a Buyer Indemnified Party.
(d)    Within five (5) Business Days after it is determined pursuant to this Article 10 that any amount is due to a Seller Indemnified Party, Buyer shall pay such amount to an account or accounts designated by Sellers’ Representative.
Section 10.7    Mutual Release.
(c)    Effective as of the Closing, in consideration of the mutual covenants and agreements contained herein, including the consideration to be received by Sellers, each Seller (each, a “Seller Releasing Person”) hereby irrevocably releases and forever discharges Buyer, the Company and their respective parents, Subsidiaries, Affiliates (other than a Seller Releasing Person to the extent that such Seller Releasing Person would be deemed such an Affiliate for purposes of this Agreement), divisions and predecessors and their respective past and present shareholders, directors, officers, members, managers, partners (general or limited), agents, employees and Affiliates (other than Seller Releasing Persons to the extent that they would be deemed Affiliates for purposes of this Agreement), and the successors, heirs, assigns, executors and administrators to the foregoing (collectively, the “Buyer Released Persons”), of and from any and all manner or causes of action and actions, claims, suits, rights, debts, sums of money, covenants, contracts, damages and judgments whatsoever, in law or in equity, which such Seller Releasing Person ever had, now has or which it hereafter can, shall or may have, against the Buyer Released Persons, whether known or unknown, suspected or unsuspected, matured or unmatured, fixed or contingent, for, upon or by reason of any matter relating to the Company, and arising at any time on or prior to the Closing Date, whether in such Seller Releasing Person’s capacity as an equityholder, director, officer, holder of Indebtedness or otherwise, and the Buyer Released Persons shall not have liability with respect thereto; provided, however, that such release shall not cover (i) claims or liabilities for amounts owed pursuant to, or other rights set forth in, or other claims arising in connection with this Agreement or any Related Documents or (ii) any obligations (if any) related to accrued but unpaid compensation owed by the Company immediately prior to the Closing to such Seller Releasing Person in connection with the performance of services in the ordinary course by such Seller Releasing Person for the Company; provided, further that, notwithstanding the preceding proviso, such release shall be deemed an irrevocable waiver and release by Sellers of the Company from any right of contribution or right of indemnity from or against the Company with respect to any indemnification payments by Sellers to the Buyer Indemnified Parties pursuant to this Agreement.
(d)    Effective as of the Closing, in consideration of the mutual covenants and agreements contained herein, including the consideration to be received, each of Buyer and the Company (each, a “Buyer Releasing Person”) hereby irrevocably releases and forever discharges each Seller and its successors, heirs, assigns, executors and administrators (collectively, the “Seller Released Persons”), of and from any and all manner or causes of action and actions, claims, suits, rights, debts, sums of money, covenants, contracts, damages and judgments whatsoever, in law or in equity, which such Buyer Releasing Person ever had, now has or which it hereafter can, shall or may have, against the Seller Released Persons, whether known or unknown, suspected or unsuspected, matured or unmatured, fixed or contingent, for, upon or by reason of any matter relating to the Company, and arising at any time on or prior to the Closing Date, whether in such Buyer Releasing Person’s capacity as an equityholder or otherwise, and the Seller Released Persons shall not have liability with respect thereto; provided, however, that such release shall not cover claims or liabilities for amounts owed pursuant to, or other rights set forth in, or other claims arising in connection with this Agreement or any Related Documents.
(e)    Each Seller Releasing Person acknowledges and agrees that the release set forth in this Section 10.7 applies to all claims or liabilities of any nature whatsoever, whether at law or in equity, whether known or unknown, fixed or contingent, suspected or unsuspected, foreseen or unforeseen, that it may have against any of the Buyer Released Persons with respect to the matters being released hereunder.  Each Seller Releasing Person expressly acknowledges that he or she is familiar with Section 1542 of the California Civil Code, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
(f)    Each Buyer Releasing Person acknowledges and agrees that the release set forth in this Section 10.7 applies to all claims or liabilities of any nature whatsoever, whether at law or in equity, whether known or unknown, fixed or contingent, suspected or unsuspected, foreseen or unforeseen, that it may have against Seller Released Persons with respect to the matters being released hereunder.  Each Buyer Releasing Person expressly acknowledges that it is familiar with Section 1542 of the California Civil Code, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
(g)    Each Seller Releasing Person and Buyer Releasing Person acknowledges that the significance and consequence of this waiver of Section 1542 of the California Civil Code is that even if he or it should eventually suffer additional damages arising out of claims or liabilities released in this Agreement, he or it will not be able to make any claim for those damages.  Each Seller Releasing Person and Buyer Releasing Person expressly waives and relinquishes any and all rights and benefits, which he or it may have under Section 1542 of the California Civil Code.
ARTICLE 11     
TAXES
Section 11.1    Transfer Taxes.
All sales, use, transfer, documentary, stamp, registration and other similar Taxes that are payable in connection with the transactions contemplated by this Agreement shall be borne one-half by Buyer and one-half by Sellers.  The party required by applicable law to file any Tax Returns and other documentation with respect to any such Taxes shall prepare and file such Tax Returns and Buyer and Sellers shall each, and shall each cause its Affiliates to, cooperate in the timely preparation and filing of, and join in the execution of, any such Tax Returns and other documentation.
Section 11.2    Indemnification for Taxes.
(g)    Except as otherwise provided herein, Sellers (severally and not jointly) shall be liable for and shall indemnify the Buyer Indemnified Parties for:  (i) any Losses attributable to (A) any Taxes of any member (other than the Company) of an affiliated, consolidated, combined or unitary group of which the Company is or was a member on or prior to the Closing Date, including pursuant to Treasury Regulations Section 1.1502-6 or any similar provision of state, local or foreign law, (B) any Taxes that are imposed on the Company for any taxable year or period that ends on or before the Closing Date and, with respect to any Straddle Period, the portion of such Straddle Period ending on and including the Closing Date, and (C) any Taxes of any Person (other than the Company) liability for which is imposed on the Company as a transferee or successor, by contract or otherwise, pursuant to a transaction or contract or other indemnification obligation that occurs or arises before the Closing; and (ii) any Losses (including Taxes) for which the Company, Buyer or any of Buyer’s Affiliates become liable as a result of the inaccuracy of any representation or warranty relating to Taxes made by Sellers in Section 4.15 of this Agreement. Notwithstanding the foregoing, Sellers shall have no obligation pursuant to this Section 11.2(a) for any Taxes or Losses to the extent taken into account as a liability in the calculation of the Closing Date Working Capital or which were taken into account in the calculation of the Final Purchase Price as Indebtedness, as finally determined pursuant to Section 2.5(c).  In determining whether any transaction occurs on the Closing Date, it is expressly understood and agreed that amounts included as Company Transaction Expenses (including the Change of Control Payments) shall be treated as deductions in the Tax Returns for taxable periods ending on the Closing Date, to the extent such amounts are deductible in such taxable periods under any provision of the Code and the Treasury Regulations thereunder.  Buyer and its includible Affiliate or Affiliates will file a consolidated federal income tax return including the income of the Company for the period beginning on the day after the Closing Date.  Tax Returns for the period ending on the Closing Date will be prepared by closing the books at the end of the Closing Date under the general provisions of Treasury Regulation 1.1502-76(b)(1)(ii)(A) and (b)(2)(i), and no election will be made under Treasury Regulation 1.1502-76(b)(2)(ii)(D).
(h)    Sellers shall be entitled to any refund of Taxes of the Company attributable to taxable periods ending on or before the Closing Date, net of any reasonable cost to Buyer and its Affiliates attributable to the obtaining and receipt of such refund, provided, that (i) such Taxes were paid by the Company prior to the Closing or by Sellers after the Closing, (ii) such refund is actually recognized by Buyer or its Subsidiaries (including the Company), whether as a refund or reduction in Taxes payable, after the Closing, (iii) such refund does not arise as the result of a carryback of a loss or other Tax benefit from a taxable period (or portion thereof) beginning after the Closing Date and (iv) such refund was not included in the Closing Date Working Capital and taken into account in the calculation of the Final Purchase Price. Buyer shall pay, or cause to be paid, to Sellers any amount to which Sellers are entitled pursuant to the prior sentence within fifteen (15) Business Days of the receipt of the applicable refund or credit by Buyer or its Subsidiaries.  To the extent such refund is subsequently disallowed or required to be returned to the applicable Tax authority, Sellers agree promptly to repay the amount of such refund, together with any interest, penalties or other additional amounts imposed by such Tax authority, to Buyer.
(i)    For purposes of Section 11.2(a), whenever it is necessary to determine the liability for Taxes of the Company for a Straddle Period, the determination of the Taxes for the portion of the Straddle Period ending on and including, and the portion of the Straddle Period beginning after, the Closing Date shall be determined by assuming that the Straddle Period consisted of two (2) taxable years or periods, one which ended at the close of the Closing Date and the other which began at the beginning of the day following the Closing Date, and items of income, gain, deduction, loss or credit, and state and local apportionment factors of the Company for the Straddle Period shall be allocated between such two (2) taxable years or periods on a “closing of the books basis” by assuming that the books of the Company were closed at the close of the Closing Date; provided, however, that (i) exemptions, allowances or deductions that are calculated on an annual basis, such as the deduction for depreciation, and Taxes calculated on a periodic basis (such as real property Taxes and other ad valorem Taxes) shall be apportioned ratably between such periods on a daily basis, and (ii) any extraordinary item within the meaning of Treasury Regulations Section 1.1502-76(b)(2)(ii)(C) that occurs or results from a transaction that takes place after the Closing on the Closing Date shall be treated as occurring at the beginning of the day following the Closing Date.
(j)    The provisions of Sections 10.3, 10.4(d), 10.4(f), 10.4(g), 10.4(i), 10.4(j) and 10.6 shall apply for purposes of the indemnification provisions of this Section 11.2 and the contest provisions of Section 11.5.  For the avoidance of doubt and without limitation, no indemnified party shall have any obligation to make any efforts to mitigate any actual or potential Losses attributable to Taxes or provide any indemnifying party any opportunity to minimize any such Losses.
(k)    Notwithstanding anything else to the contrary, Sellers shall not indemnify or hold harmless any Buyer Indemnified Party, and no Buyer Indemnified Party shall seek reimbursement or indemnity from Sellers, for any Losses pursuant to Section 11.2(a) unless written demand for reimbursement of such Losses is delivered to Sellers’ Representative within one (1) month following the expiration of the applicable statute of limitations, including any applicable tolling period.
Section 11.3    Payments.
Any payment by Buyer or Seller under this Article 11 or under Article 10, or any payment by Buyer or Sellers under Section 2.5 of the difference between the Estimated Purchase Price and the Final Purchase Price (determined under Sections 2.2 and 2.5 hereof), shall be treated by Buyer and Sellers as an adjustment to the Final Purchase Price for Tax purposes if payment occurs after the Closing Date.
Section 11.4    Tax Returns.
(d)    Sellers shall file or cause to be filed when due (i) all Tax Returns by or with respect to the Company that are due before the Closing Date, and (ii) all income and franchise Tax Returns and other Tax Returns either (A) measured by or based on net income or (B) measured by or based on equity that, in either case, are required to be filed by or with respect to the Company for taxable years or periods ending on or before the Closing Date, and shall pay (or cause to be paid by the Company prior to the Closing) any Taxes due in respect of the Tax Returns described in clauses (i) and (ii) for which Sellers are liable pursuant to Section 11.2(a); provided, that the Tax Returns described in clauses (i) and (ii) shall be submitted to Buyer not later than thirty (30) days prior to the due date for filing of such Tax Returns (or if such due date is within forty-five (45) days following the Closing Date, as promptly as practicable following the Closing Date), Buyer shall have the right to review such Tax Returns, and Sellers’ Representative shall consider in good faith any reasonable comments that Buyer submits to Sellers’ Representative within ten (10) days after receipt of such Tax Returns.  Buyer shall file, or cause to be filed when due, all other Tax Returns (including all Straddle Period Tax Returns) with respect to the Company and shall remit any Taxes due in respect of such Tax Returns.  Sellers shall pay by wire transfer to Buyer the Taxes for which Sellers are liable pursuant to Section 11.2(a) but which are payable with Tax Returns to be filed by Buyer pursuant to the previous sentence at least three (3) Business Days prior to the due date for the payment of such Taxes.
(e)    All Straddle Period Tax Returns to be filed by Buyer pursuant to Section 11.4(a) (i) shall be prepared in a manner consistent with past practice (unless the positions that would otherwise be taken in accordance with past practice have no “reasonable basis” within the meaning of Code Section 6662(d) (or comparable state, local, or foreign law) or otherwise are not reasonable positions), and (ii) shall be submitted to Sellers’ Representative not later than thirty (30) days prior to the due date for filing of such Tax Returns (or if such due date is within forty-five (45) days following the Closing Date, as promptly as practicable following the Closing Date). Sellers’ Representative shall have the right to review such Straddle Period Tax Returns, and Buyer shall consider in good faith any reasonable comments that Sellers’ Representative submits to Buyer within ten (10) days after receipt of such Tax Returns.
(f)    Buyer will not carry back (nor permit the Company to carry back) to any period ending on or before the Closing Date (treating for this purpose such date as the end of a short taxable year) any losses, deductions, or credits giving rise to a refund of Taxes for such period without the prior written consent of Sellers’ Representative, which consent shall not be unreasonably withheld, conditioned, or delayed.
(g)    None of Buyer or any Affiliate of Buyer shall (or shall cause or permit the Company to) amend, refile or otherwise modify (or grant an extension of any statute of limitation with respect to) any Tax Return relating in whole or in part to the Company with respect to any taxable year or period ending on or before the Closing Date (or with respect to any Straddle Period) without the prior written consent of Sellers’ Representative, which consent shall not be unreasonably withheld, conditioned, or delayed.
(h)    With respect to any taxable period for which Sellers are responsible to prepare and file a Tax Return pursuant to this Section 11.4, Buyer, if so requested by Sellers’ Representative, shall promptly cause the Company to prepare and provide to Sellers’ Representative a package of tax information materials (the “Tax Package”), which shall be completed in accordance with past practice, including past practice as to providing the information, schedules and work papers and as to the method of computation of separate taxable income or other relevant measure of income of the Company.  Sellers’ Representative shall reimburse Buyer for reasonable out of pocket costs incurred in preparing the Tax Package.
(i)    For the avoidance of doubt, Buyer shall be permitted to prepare and file, or cause to be prepared and filed, unfiled state and local Tax Returns required to be filed by the Company, as determined by Buyer, for any period ending on or before the Closing Date in any Tax jurisdiction in which the Company does not currently file such Tax Returns, whether or not pursuant to or otherwise in connection with any “voluntary disclosure agreement” or similar arrangement with the applicable taxing authority.  For further avoidance of doubt, any Taxes for any period ending on or before the Closing Date relating to such Tax Returns and any reasonable expenses incurred with respect thereto shall be deemed for all purposes of this Agreement to constitute Losses subject to indemnification pursuant to Section 11.2(a).  All such Tax Returns (except in the case of Straddle Period Tax Returns addressed in Section 11.4(b) above) shall be submitted to Sellers’ Representative not later than fifteen (15) days prior to Buyer’s proposed date for filing of such Tax Returns, and Buyer shall consider in good faith any reasonable comments that Sellers’ Representative submits to Buyer within ten (10) days after receipt of such Tax Returns.
Section 11.5    Contest Provisions.
(e)    In the event that (a) Sellers or their Affiliates or (b) Buyer or its Affiliates receive notice of any pending or threatened Tax audits or assessments or other disputes concerning Taxes (each, a “Tax Contest”) with respect to which the other party may incur liability under Article 11 hereof, the party in receipt of such notice shall promptly notify the other party of such matter in writing, provided, that failure to comply with this provision shall not affect a party’s right to indemnification hereunder unless such failure materially and adversely affects the indemnifying party’s ability to challenge or participate in such Tax Contest in accordance with the provisions of this Section 11.5. 
(f)    Buyer shall control all Tax Contests.  Sellers’ Representative shall have the right to participate in any Tax Contest, at the expense of Sellers.  Buyer shall not settle any Tax Contest without the prior written consent of Sellers’ Representative (such consent not to be unreasonably withheld, conditioned, or delayed) if such contest is solely with respect to a taxable period ending on or before the Closing Date and could not adversely affect in any material respect the liability for Taxes of Buyer or the Company for any period (or portion thereof) after the Closing Date to any extent (including the imposition of Tax deficiencies, the reduction of asset basis or cost adjustments, the lengthening of any amortization or depreciation periods, the denial of amortization or depreciation deductions or the reduction of loss or credit carryforwards).
Section 11.6    Tax Sharing Agreements.
Any Tax allocation or sharing agreement or arrangement, whether or not written, that may have been entered into by Sellers or any of their respective Affiliates and the Company shall be terminated as to the Company as of the Closing Date, and no payments which are owed by or to the Company pursuant thereto shall be made thereunder.
Section 11.7    Assistance and Cooperation.
After the Closing Date, each Seller and Buyer shall (and shall cause their respective Affiliates to):
(d)    assist the other party in preparing any Tax Returns or reports which such other party is responsible for preparing and filing in accordance with this Article 11;
(e)    cooperate fully in preparing for any audits of, or disputes with taxing authorities regarding, any Tax Returns of the Company;
(f)    make available to the other and to any taxing authority as reasonably requested all information, records, and documents relating to Taxes of the Company; provided, however, that Buyer shall have no obligation to make available to Sellers such information, records, and documents that relate to taxable periods beginning after the Closing Date;
(g)    provide timely notice to the other in writing of any pending or threatened Tax audits or assessments of the Company for taxable periods for which the other may have a liability under this Article 11;
(h)    furnish the other with copies of all correspondence received from any taxing authority in connection with any Tax audit or information request with respect to any such taxable period; and
(i)    cooperate with and assist the other in obtaining any refund that Buyer or Sellers reasonably believe should be available, including through the filing of appropriate forms with the applicable taxing authorities.
Section 11.8    Retention of Records.
Buyer will cause the Company to retain any records relevant to the determination of Tax liabilities of the Company for taxable periods ending on or prior to the Closing Date and for Straddle Periods for a period of not less than seven (7) years following the Closing Date; provided, however, that Buyer may dispose of such records prior to that time with the prior written consent of Sellers’ Representative, which consent shall not be unreasonably withheld.
Section 11.9    Sellers Not Foreign Persons.
At the Closing, each Seller (other than 91325 Canada, Inc.) shall deliver to Buyer an affidavit of such Seller, in a form reasonably satisfactory to Buyer and in compliance with Treasury Regulations Section 1.1445-2(b)(2), signed under penalties of perjury setting forth such Seller’s U.S. taxpayer identification number and address and stating that such Seller is not a foreign person.  
Section 11.10    Other.
(a)    In the event either Sellers or Buyer breaches any obligation imposed on it under this Article 11, such breaching party shall indemnify the other party for all Losses incurred or suffered by, or assessed against, that other party as a result of that breach.
(b)    It is the intention of the parties that the provisions of this Article 11 shall exclusively govern all matters relating to Taxes with respect to the Company as between Buyer and its Affiliates (including the Company following the Closing) and Sellers and their Affiliates, and that the provisions of this Article 11 shall exclusively govern the determination and administration of all claims between them relating to such Tax matters.
(c)    Notwithstanding any other provisions of this Agreement, (i) the obligations of the parties set forth in this Article 11 shall be unconditional and absolute, and (ii) any amounts held in the Escrow Account shall be first used to meet any obligations of Sellers (indemnity or otherwise) under this Article 11.  For the avoidance of doubt, there shall not be any duplicative payments of indemnities by Sellers or Buyer under this Article 11 or otherwise under this Agreement.
(d)    Notwithstanding anything to the contrary in this Agreement, (i) the obligation of Sellers under this Article 11 shall not be subject to a deductible, threshold or similar concept, (ii) each Seller’s indemnification obligations under this Article 11 shall be for an amount equal to the amount of Losses hereunder multiplied by such Seller’s Seller Pro Rata Percentage set forth on Schedule I, and (iii) (A) except for fraud, intentional misrepresentation or willful breach, the aggregate liability of any Seller for Losses shall be equal to the aggregate amount of all payments actually received by such Seller pursuant to Article 2 hereof and (B) no Seller shall be liable for the willful or intentional breach of another Seller, or for any act of fraud committed by another Seller.
ARTICLE 12     
MISCELLANEOUS
Section 12.1    Termination.
This Agreement may be terminated and the transactions contemplated hereby abandoned at any time prior to the Closing:
(l)    by mutual written consent of the Company, Buyer and Sellers’ Representative;
(m)    by Buyer in writing, if Sellers or the Company have, or by Sellers’ Representative in writing, if Buyer has, breached (i) any covenant or agreement contained herein in any material respect, or (ii) any representation or warranty contained herein and such breach would constitute a failure to satisfy the condition contained in Section 7.1 or Section 8.1, as applicable, and in either case if such breach is not curable or, if curable, has not been cured by the earlier of thirty (30) days after the date on which written notice of such breach is given to the party committing such breach or the Closing Date; provided, however, that a party shall not have the right to terminate this Agreement pursuant to this Section 12.1(b) if such party is then in material breach of any of its representations, warranties, covenants or agreements contained in this Agreement;
(n)    by any of Buyer, the Company or Sellers’ Representative in writing, if (i) any governmental or regulatory agency which must grant a Permit, consent, approval or waiver contemplated by Section 8.2 has denied such Permit, consent, approval or waiver and such denial has become final and nonappealable or (ii) any governmental or regulatory agency of competent jurisdiction shall have issued a final nonappealable order enjoining or otherwise prohibiting the consummation of the transactions contemplated by this Agreement; or
(o)    by any of Buyer, the Company or Sellers’ Representative in writing, if the Closing Date has not occurred on or before 5:00 p.m., Atlanta, Georgia time, on November 30, 2014 (the “Outside Date”); provided, that the right to terminate this Agreement under this Section 12.1(d) (i) shall not be available to Buyer if the failure of Buyer to fulfill (or breach by Buyer of) any obligation under this Agreement has been the cause of, or resulted in, the failure of the Closing to occur on or before the Outside Date, and (ii) shall not be available to the Company or Sellers’ Representative if the failure of the Company or any Seller to fulfill (or breach by the Company or any Seller of) any obligation under this Agreement has been the cause of, or resulted in, the failure of the Closing to occur on or before the Outside Date.
Section 12.2    Effect of Termination.
In the event this Agreement is terminated pursuant to Section 12.1 hereof, this Agreement shall become void and have no effect (except that the provisions relating to publicity and expenses set forth in Sections 12.5 and 12.14 shall survive any such termination) without any liability whatsoever of any party hereto; provided, that no such termination of this Agreement shall relieve any party of its liability to the other parties with respect to any breach, fraud or intentional misrepresentation of such party prior to such termination.
Section 12.3    Assignment.
Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party without the prior written consent of the other; provided, that Buyer may assign this Agreement and any rights and obligations hereunder to any Affiliate without the consent of Sellers or the Company; provided, that no such assignment shall relieve Buyer of any of its obligations hereunder.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, and no other Person shall have any right, benefit or obligation hereunder except (a) for the rights of the Buyer Indemnified Parties and the Seller Indemnified Parties hereunder and (b) as set forth in Section 9.5.
Section 12.4    Notices.
Unless otherwise provided herein, any notice, request, instruction or other document to be given hereunder by any party to the others shall be in writing and delivered in person, by courier, by facsimile transmission (subject to electronic confirmation of good facsimile transmission) or mailed by certified mail, postage prepaid, return receipt requested, and shall be deemed given when received, as follows:
	
		
	If to Buyer:
	Epicor Software Corporation
804 Las Cimas Parkway
Austin, Texas 78746
Attn:  General Counsel
Facsimile:  (949) 341-4225

	With copies to (which shall not constitute notice):
	

Rogers & Hardin LLP
2700 International Tower
229 Peachtree Street NE
Atlanta, Georgia 30303
Attn:  Robert C. Hussle
Facsimile:  (404) 230-0949

	If to Sellers:
	At the address set forth on Exhibit A

	With copies to (which shall not constitute notice):
	

Sellers’ Representative
P.O. Box 8564
Atlanta, Georgia 31106
Attn:  Jeff Buck
Facsimile:  (___) ____________

	With copies to (which shall not constitute notice):
	

Morris, Manning & Martin, LLP 
1600 Atlanta Financial Center 
3343 Peachtree Road, NE 
Atlanta, Georgia 30326
Attn:  Carl J. Erhardt
Facsimile:  (404) 365-9532

	If to Sellers’ Representative:
	

Sellers’ Representative
P.O. Box 8564
Atlanta, Georgia 31106
Attn:  Jeff Buck
Facsimile:  (___) ____________

	With copies to (which shall not constitute notice):
	

Morris, Manning & Martin, LLP
1600 Atlanta Financial Center 
3343 Peachtree Road, NE 
Atlanta, Georgia 30326
Attn:  Carl J. Erhardt
Facsimile:  (404) 365-9532

or to such other place and with such other copies as either party may designate as to itself by written notice to the others.
Section 12.5    Press Releases or Public Announcements.
Neither party shall issue any press release or make any public announcement or other disclosure relating to the existence or subject matter of this Agreement without the prior written consent of the other party; provided, however, that any party may make any public announcement or disclosure concerning its publicly-traded securities it believes in good faith is required by applicable Law, any listing or trading agreement, or the rules and regulations of any applicable securities exchange (in which case the disclosing party will use its reasonable best efforts to advise the other party prior to making the disclosure and consult with the other party regarding such disclosure), including the filing by Buyer of a Current Report on Form 8-K (the “Buyer 8-K”) to report execution of this Agreement. In connection with the preparation of the Buyer 8-K, Sellers shall, upon request by Buyer, furnish Buyer with all information as may be reasonably necessary or advisable in connection with the transactions contemplated by this Agreement.  At or after the execution of this Agreement, Sellers and Buyer shall jointly issue a public announcement and/or press release and/or other disclosure, as shall be mutually agreed, of the transactions contemplated by this Agreement.  Each party will not unreasonably withhold approval from the others with respect to any press release or public announcement.  If any party determines with the advice of counsel that it is required to make this Agreement and the terms of the transaction public or otherwise issue a press release or make public disclosure with respect thereto, it shall, at a reasonable time before making any public disclosure, consult with the other party regarding such disclosure, seek such confidential treatment for such terms or portions of this Agreement or the transaction as may be reasonably requested by the other party and disclose only such information as is legally compelled to be disclosed. This provision will not apply to communications by any party to its counsel, accountants and other professional advisors.
Section 12.6    Entire Agreement.
This Agreement, together with all exhibits and schedules hereto (including the Disclosure Schedules), constitute the entire agreement among the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties.
Section 12.7    Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Counterparts may be delivered by facsimile or other electronic transmission.
Section 12.8    Headings.
The headings of the Articles, Sections, Exhibits and Disclosure Schedules herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.
Section 12.9    Disclosure Schedules.
Neither the specification of any dollar amount in any representation or warranty contained in this Agreement nor the inclusion of any specific item in any Disclosure Schedule hereto is intended to imply that such amount, or higher or lower amounts, or the item so included or other items, are or are not material or that such item has had or is reasonably likely to result in a material adverse effect with respect to the disclosing party, and no party shall use the fact of the setting forth of any such amount or the inclusion of any such item in any dispute or controversy between the parties as to whether any obligation, item or matter not described herein or in any Disclosure Schedule is or is not material or that such item has had or is reasonably likely to result in a material adverse effect with respect to the disclosing party for purposes of this Agreement.  Unless this Agreement specifically provides otherwise, neither the specification of any item or matter in any representation or warranty contained in this Agreement nor the inclusion of any specific item in any Disclosure Schedule hereto is intended to imply that such item or matter, or other items or matters, are or are not in the Ordinary Course of Business.  
Section 12.10    Sellers’ Representative.
(a)    Each Seller by executing this Agreement hereby irrevocably constitutes and appoints Jeff Buck, as Sellers’ Representative, with full power and authority to act in the name of and for and on behalf of such Seller with respect to all matters arising in connection with, or related to, this Agreement and the Escrow Agreement and the transactions contemplated hereby and thereby.  Each Seller hereby appoints Sellers’ Representative as (i) the agent and true and lawful attorney-in-fact of such Seller, with full power of substitution, and with full capacity and authority in its sole discretion, to act in the name of and for and on behalf of such Seller in connection with all matters arising out of, resulting from, contemplated by or related or incident to this Agreement and the Escrow Agreement, and (ii) the agent for service of process for such Seller, and such Seller hereby irrevocably consents to the service of any and all process in any action or proceeding arising out of or relating to this Agreement by the delivery of such process to Sellers’ Representative.  Without limiting the generality of the foregoing, the power of Sellers’ Representative shall include the power to represent such Seller with respect to all aspects of this Agreement and the Escrow Agreement, which power shall include the power to (A) receive any payment or transfer of funds to be made pursuant to this Agreement on behalf of such Seller, (B) waive any and all conditions of this Agreement, (C) amend, modify or supplement this Agreement and the Escrow Agreement in any respect, (D) defend, negotiate or settle, and take any and all other actions with respect to the matters set forth in Section 2.5, Section 2.6, Article 10 and Article 11, (E) retain legal counsel or accountants and be reimbursed by Sellers for all fees, expenses and other charges of such legal counsel or accountants, (F) receive notices or other communications, (G) deliver any notices, certificates or other documents required hereunder, (H) take all such other action and to do all such other things as Sellers’ Representative deems necessary, appropriate, desirable or advisable with respect to this Agreement and the Escrow Agreement, and (I) perform its obligations as set forth in, and in accordance with, this Agreement and the Escrow Agreement.
(b)    Each Seller agrees that Buyer, the Escrow Agent, and their respective Affiliates shall have the absolute right and authority to rely upon the acts taken or omitted to be taken by Sellers’ Representative on behalf of Sellers or any other Holders and shall have no liability with respect thereto, and none of Buyer, the Escrow Agent, or any of their respective Affiliates shall have any duty to inquire as to the acts and omissions of Sellers’ Representative, and by approval of the transactions contemplated by this Agreement, Sellers waive any claim arising out of, or right to object to, any action taken by Buyer, the Escrow Agent, or any of their respective Affiliates in reliance upon the acts taken or omitted to be taken by Sellers’ Representative.  
(c)    Each Seller agrees that (i) all deliveries by Buyer, including any payment of funds under Article 2 (including the Expense Amount), to Sellers’ Representative shall be deemed deliveries to Sellers, (ii) Buyer shall not have any liability with respect to any aspect of the distribution or communication of such deliveries between Sellers’ Representative and any Seller and (iii) any disclosure made to Sellers’ Representative by or on behalf of Buyer shall be deemed to be a disclosure made to each Seller.  Each Seller that makes a claim against Buyer alleging the lack of authority of Sellers’ Representative shall indemnify the Buyer Indemnified Parties for Losses incurred or suffered by, or assessed against, such Buyer Indemnified Party as a result of its good faith reliance on the acts or omissions of Sellers’ Representative.  Each Seller agrees that any payment made by or on behalf of Buyer to Sellers’ Representative on a Seller’s behalf shall be deemed a direct payment to a Seller, and no Seller shall have any recourse against Buyer or any of its Affiliates in the event that such payment is not delivered to such Seller by Sellers’ Representative for any reason.
(d)    Each Seller agrees that the amounts deposited in the Expense Fund shall be available for the payment of all fees and expenses reasonably incurred by Sellers’ Representative in performing its duties and exercising its rights under this Agreement and the Escrow Agreement, provided, that any portion of the Expense Fund not ultimately required for the payment of such fees and expenses (if any) shall be returned by Sellers’ Representative to Sellers based on their respective Seller Pro Rata Percentage, and further provided, that if the Expense Fund is depleted or insufficient, Sellers’ Representative may deduct such fees and expenses from the amounts distributed to Sellers’ Representative on behalf of Sellers from the Buyer Indemnification Amount prior to delivery of such funds to Sellers.  
(e)    In the event Sellers’ Representative refuses to, or is no longer capable of, serving as Sellers’ Representative hereunder, Sellers shall promptly appoint a successor Sellers’ Representative who shall thereafter be a successor Sellers’ Representative hereunder, and Sellers’ Representative shall serve until such successor is duly appointed and qualified to act hereunder.  Upon the appointment of such successor, such successor shall promptly provide written notice of such appointment to Buyer and Escrow Agent.
(f)    Without limiting the foregoing provisions of this Section 12.10, Sellers’ Representative shall not be held liable by any of Sellers for actions or omissions in exercising or failing to exercise all or any of the power and authority of Sellers’ Representative pursuant to this Agreement, except in the case of Sellers’ Representative’s gross negligence, bad faith or willful misconduct.  Sellers’ Representative shall be entitled to rely on the advice of counsel, public accountants or other independent experts that it reasonably determines to be experienced in the matter at issue, and will not be liable to any Seller for any action taken or omitted to be taken in good faith based on such advice.  Sellers will jointly and severally indemnify (in accordance with their respective Seller Pro Rata Percentages) Sellers’ Representative from any Losses arising out of its serving as Sellers’ Representative hereunder, except for Losses arising out of or caused by Sellers’ Representative’s gross negligence, bad faith or willful misconduct.  Sellers’ Representative is serving in its capacity as such solely for purposes of administrative convenience, and is not personally liable in such capacity for any of the obligations of Sellers hereunder, and Buyer agrees that it will not look to the personal assets of Sellers’ Representative, acting in such capacity, for the satisfaction of any obligations to be performed by Sellers hereunder.
Section 12.11    Governing Law.
This Agreement shall be governed by and construed in accordance with the domestic Laws of the State of Delaware without giving effect to any choice or conflict of Law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of Delaware.
Section 12.12    Amendments, Modifications and Waivers.
No amendment, modification or waiver of any provision of this Agreement shall be valid unless the same shall be in writing and signed by Buyer and Sellers’ Representative.  No waiver by either party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.
Section 12.13    Severability.
In the event that any provision of this Agreement, or the application thereof, or any other instrument referred to herein becomes or is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement or any other instrument referred to herein will continue in full force and effect and the application of such provision to other persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto.  The parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the economic, business and other purposes of such void or unenforceable provision.
Section 12.14    Expenses.
Except as otherwise provided in this Agreement, each of the parties will bear its own costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby, including the negotiation, execution and delivery of this Agreement and all documents related hereto and any expenses related to the due diligence investigation.

40

Section 12.15    Construction.
Unless otherwise indicated to the contrary herein by the context or use thereof:  (a) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation,” (b) the word “or” is not exclusive, (c) the words, “herein,” “hereto,” “hereof” and words of similar import refer to this Agreement as a whole and not to any particular Section or paragraph hereof, (d) the masculine gender shall also include the feminine and neutral genders, and vice versa, and (e) words importing the singular shall also include the plural, and vice versa.  Unless the context otherwise requires, references herein:  (i) to Articles, Sections, Disclosure Schedule and Exhibits mean the Articles and Sections of, and Disclosure Schedule and Exhibits attached to, this Agreement, (ii) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof, and (iii) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder, all as in effect prior to or on the Closing Date.  The parties intend that each representation, warranty, and covenant contained herein shall have independent significance.  If any party has breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation, warranty, or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the party has not breached shall not detract from or mitigate the fact that the party is in breach of the first representation, warranty or covenant.  The parties hereto agree that they have been represented by counsel during the negotiation and execution of this Agreement and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.  For purposes of this Agreement, documents and information shall be deemed to have been “delivered,” “furnished” or “made available” to Buyer if such documents or information were (A) made available to Buyer in the “virtual data room” maintained by or on behalf of Sellers and located at www.dropbox.com at least two (2) Business Days prior to the date of this Agreement, or (B) physically delivered or delivered by email to Buyer or its counsel, accountants and other professional advisors.
Section 12.16    Incorporation of Exhibits and Schedules.
The exhibits and schedules identified in this Agreement are incorporated herein by reference and made a part hereof.
Section 12.17    Specific Performance.
Each of the parties acknowledges and agrees that the other parties would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached.  Accordingly, each of the parties agrees that the other parties shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in any action instituted in any court of the United States or any state thereof having jurisdiction over the party and the matter, in addition to any other remedy to which they may be entitled, at law or in equity.
Section 12.18    Attorneys’ Fees.
If a party to this Agreement shall bring any action or proceeding against the other parties, declaratory or otherwise, to enforce the terms hereof or to declare rights hereunder (referred to herein as an “Action”), the non-prevailing party in such Action shall pay to the prevailing party in such Action a reasonable sum for the prevailing party’s attorneys’ fees and expenses (at the prevailing party’s attorneys’ then-current rates, as increased from time to time by the giving of advance written notice by such counsel to such party) incurred in prosecuting or defending such Action and/or enforcing any judgment, order, ruling or award (referred to herein as a “Decision”), granted therein, all of which shall be deemed to have accrued from the commencement of such Action, and shall be paid whether or not such Action is prosecuted to a Decision.  Any Decision entered into in such Action shall contain a specific provision providing for the recovery of attorneys’ fees and expenses incurred in enforcing such Decision.  The court or arbitrator may fix the amount of reasonable attorneys’ fees and expenses upon the request of any party.  For purposes of this Section 12.18, attorneys’ fees shall include fees incurred in connection with (a) postjudgment motions and collection actions, (b) contempt proceedings, (c) garnishment, levy and debtor and third-party examination, (d) discovery and (e) bankruptcy litigation. 
Section 12.19    Consent to Jurisdiction.
Each of the parties consents to the exclusive jurisdiction of the Chancery Court of the State of Delaware (or, if such court declines to accept jurisdiction over a particular matter, then any state or federal court within the State of Delaware), in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court.  Each party also agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court.  Each of the parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of the other party with respect thereto.  Any party may make service on another party by sending or delivering a copy of the process to the party to be served at the address and in the manner provided for the giving of notices set forth in this Agreement.  Nothing in this Section 12.19, however, shall affect the right of any party to serve legal process in any other manner permitted by law or at equity.  Each party agrees that a final judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by law or at equity.
Section 12.20    Waiver of Trial by Jury.
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN ANY ACTION OR PROCEEDING ARISING OUT OF THIS AGREEMENT, THE PARTIES HERETO CONSENT TO TRIAL WITHOUT A JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO AGAINST THE OTHER OR THEIR SUCCESSORS IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, REGARDLESS OF THE FORM OF ACTION OR PROCEEDING.
Section 12.21    Time of the Essence; Computation of Time.
Time is of the essence for each and every provision of this Agreement.  Whenever the last day for the exercise of any privilege or the discharge or any duty hereunder shall fall upon a day that is not a Business Day, the party having such privilege or duty may exercise such privilege or discharge such duty on the next succeeding day which is a regular Business Day.
{Signatures on Following Page}

IN WITNESS WHEREOF, the parties hereto have executed this Agreement, or have caused this Agreement to be duly executed on their respective behalf by their respective officers thereunto duly authorized, as of the day and year first above written.
QUANTISENSE, INC.

By:                        
Name:                        
Title:                        

EPICOR SOFTWARE CORPORATION

By:                        
Name:                        
Title:                        

SELLERS’ REPRESENTATIVE

                        
JEFF BUCK

[Signature page to Stock Purchase Agreement]

41

[SELLERS]

[Signature page to Stock Purchase Agreement, cont’d.]Exhibit 4.1

 

EXECUTION VERSION

 

 

  

 

 

 

IGI Laboratories, Inc.

 

(Company)

 

Wilmington
Trust, National Association

 

(Trustee)

 

3.75%
Convertible Senior Notes due 2019

 

INDENTURE

 

 Dated
as of December 16, 2014 

 

 

 

 

    	 

    	 

    

  

	ARTICLE 1. DEFINITIONS
    AND OTHER PROVISIONS OF GENERAL APPLICATION	1
	 	 	 
	Section 1.01	Definitions and References.	1
	Section 1.02	References to Interest.	14
	Section 1.03	Acts of Holders.	14
	 	 	 
	ARTICLE 2. The
    Notes 	16
	 	 	 
	Section 2.01	Title and Terms; Payments.	16
	Section 2.02	Ranking.	17
	Section 2.03	Denominations.	17
	Section 2.04	Execution, Authentication, Delivery and Dating.	17
	Section 2.05	Temporary Notes.	18
	Section 2.06	Registration; Registration of Transfer and Exchange.	18
	Section 2.07	Transfer Restrictions.	20
	Section 2.08	Expiration of Restrictions.	22
	Section 2.09	Mutilated, Destroyed, Lost and Stolen Notes.	23
	Section 2.10	Persons Deemed Owners.	24
	Section 2.11	Transfer and Exchange.	24
	Section 2.12	Purchase of Notes; Cancellation.	27
	Section 2.13	CUSIP Numbers.	28
	Section 2.14	Payment and Computation of Interest.	28
	 	 
	ARTICLE 3. REPURCHASE
    AT THE OPTION OF THE HOLDERS	29
	 	 	 
	Section 3.01	Purchase at Option of Holders upon a Fundamental Change.	29
	Section 3.02	Fundamental Change Company Notice.	29
	Section 3.03	Repurchase Procedures.	31
	Section 3.04	Effect of Fundamental Change Purchase Notice.	31
	Section 3.05	Withdrawal of Fundamental Change Purchase Notice.	32
	Section 3.06	Deposit of Fundamental Change Purchase Price.	32
	Section 3.07	Notes Purchased in Whole or in Part.	32
	Section 3.08	Covenant To Comply with Applicable Laws upon Purchase of Notes.	33
	Section 3.09	Repayment to the Company.	33
	 	 	 
	ARTICLE 4. CONVERSION	33
	 	 
	Section 4.01	Right To Convert.	33
	Section 4.02	Conversion Procedures.	36
	Section 4.03	Settlement Upon Conversion.	38
	Section 4.04	Adjustment of Conversion Rate.	42
	Section 4.05	Discretionary and Voluntary Adjustments.	52
	Section 4.06	Adjustment to Conversion Rate Upon Conversion in Connection with
    a Make-Whole Fundamental Change or a Redemption Notice.	52
	Section 4.07	Effect of Recapitalization, Reclassification, Consolidation,
    Merger or Sale.	54

 

    	i

    	 

    

 

	Section 4.08	Certain Covenants.	56
	Section 4.09	Responsibility of Trustee.	56
	Section 4.10	Notice of Adjustment.	57
	Section 4.11	Notice to Holders.	57
	 	 	 
	ARTICLE 5. COVENANTS	58
	 	 	 
	Section 5.01	Payment of Principal and Interest, the Fundamental Change Purchase Price and Redemption Price.	58
	Section 5.02	Maintenance of Office or Agency.	58
	Section 5.03	Provisions as to Paying Agent.	59
	Section 5.04	Reports.	60
	Section 5.05	Statements as to Defaults.	61
	Section 5.06	Additional Interest Notice.	62
	Section 5.07	Compliance Certificate and Opinions of Counsel.	62
	Section 5.08	Additional Interest.	63
	Section 5.09	Corporate Existence.	64
	Section 5.10	Restriction on Resales.	64
	Section 5.11	Further Instruments and Acts.	64
	Section 5.12	Par Value Limitation.	64
	Section 5.13	Company to Furnish Trustee Names and Addresses of Holders.	64
	 	 	 
	ARTICLE 6. REMEDIES	64
	 	 	 
	Section 6.01	Events of Default.	64
	Section 6.02	Acceleration; Rescission and Annulment.	66
	Section 6.03	Additional Interest.	67
	Section 6.04	Waiver of Past Defaults.	68
	Section 6.05	Control by Majority.	68
	Section 6.06	Limitation on Suits.	69
	Section 6.07	Rights of Holders to Receive Payment and to Convert.	69
	Section 6.08	Collection of Indebtedness; Suit for Enforcement by Trustee.	69
	Section 6.09	Trustee May Enforce Claims Without Possession of Notes.	70
	Section 6.10	Trustee May File Proofs of Claim.	70
	Section 6.11	Restoration of Rights and Remedies.	70
	Section 6.12	Rights and Remedies Cumulative.	71
	Section 6.13	Delay or Omission Not a Waiver.	71
	Section 6.14	Priorities.	71
	Section 6.15	Undertaking for Costs.	71
	Section 6.16	Waiver of Stay, Extension and Usury Laws.	72
	Section 6.17	Notices from the Trustee.	72
	 	 	 
	ARTICLE 7. SATISFACTION AND DISCHARGE	72
	 	 	 
	Section 7.01	Discharge of Liability on Notes.	72
	Section 7.02	Deposited Monies to Be Held in Trust by Trustee.	73
	Section 7.03	Paying Agent to Repay Monies Held.	73

 

    	ii

    	 

    

 

	Section 7.04	Return of Unclaimed Monies.	73
	Section 7.05	Reinstatement.	74
	 	 	 
	ARTICLE 8. SUPPLEMENTAL INDENTURES	74
	 	 	 
	Section 8.01	Supplemental Indentures Without Consent of Holders.	74
	Section 8.02	Supplemental Indentures With Consent of Holders.	75
	Section 8.03	Notice of Amendment or Supplement.	76
	Section 8.04	Trustee to Sign Amendments, Etc.	76
	 	 	 
	ARTICLE 9. SUCCESSOR COMPANY	76
	 	 	 
	Section 9.01	Company May Consolidate, Etc. on Certain Terms.	76
	Section 9.02	Successor Corporation to Be Substituted.	77
	Section 9.03	Officer’s Certificate and Opinion of Counsel to Be Given to Trustee.	78
	 	 	 
	ARTICLE 10. Optional REDEMPTION	78
	 	 	 
	Section 10.01	Redemption.	78
	Section 10.02	Notice of Optional Redemption.	78
	Section 10.03	Restrictions on Redemption.	79
	Section 10.04	Payment of Notes Called for Redemption.	80
	 	 	 
	ARTICLE 11. THE TRUSTEE	80
	 	 
	Section 11.01	Duties and Responsibilities of Trustee.	80
	Section 11.02	Rights of the Trustee.	82
	Section 11.03	Trustee’s Disclaimer.	83
	Section 11.04	Trustee or Agents May Own Notes.	83
	Section 11.05	Monies to be Held in Trust.	84
	Section 11.06	Compensation and Expenses of Trustee.	84
	Section 11.07	Officer’s Certificate as Evidence.	85
	Section 11.08	Conflicting Interests of Trustee.	85
	Section 11.09	Eligibility of Trustee.	85
	Section 11.10	Resignation or Removal of Trustee.	85
	Section 11.11	Acceptance by Successor Trustee.	87
	Section 11.12	Succession by Merger, Etc.	87
	Section 11.13	Preferential Collection of Claims.	88
	Section 11.14	Trustee’s Application for Instructions from the Company.	88
	 	 	 
	ARTICLE 12. MISCELLANEOUS	88
	 	 	 
	Section 12.01	Effect on Successors and Assigns.	88
	Section 12.02	Governing Law.	88
	Section 12.03	No Note Interest Created.	88
	Section 12.04	Trust Indenture Act.	88
	Section 12.05	Benefits of Indenture.	89
	Section 12.06	Calculations.	89

 

    	iii

    	 

    

 

	Section 12.07	Execution in Counterparts.	89
	Section 12.08	Notices.	90
	Section 12.09	No Recourse Against Others.	91
	Section 12.10	Tax Withholding.	91
	Section 12.11	Waiver of Jury Trial.	91
	Section 12.12	U.S.A. Patriot Act.	91
	Section 12.13	Force Majeure.	91
	Section 12.14	Submission to Jurisdiction.	92

 

    	iv

    	 

    

 

INDENTURE, dated as of December 16, 2014,
between IGI Laboratories, Inc., a Delaware corporation, as issuer (the “Company”), and Wilmington Trust, National
Association, initially as trustee, conversion agent, registrar, bid solicitation agent and paying agent (in such capacities, and
subject to the provisions herein for replacements or successors for such parties, the “Trustee”, “Conversion
Agent”, “Registrar”, “Bid Solicitation Agent” and “Paying Agent”,
respectively).

 

RECITALS OF THE COMPANY

 

WHEREAS, the Company has duly authorized
the creation of an issue of the Company’s 3.75% Convertible Senior Notes due 2019 (the “Notes”), having
the terms, tenor, amount and other provisions hereinafter set forth, and, to provide therefor, has duly authorized the execution
and delivery of this Indenture; and

 

WHEREAS, all things necessary to make the
Notes, when duly executed by the Company and authenticated and delivered hereunder and duly issued by the Company, the legal, valid
and binding obligations of the Company, in accordance with the terms of the Notes and this Indenture, have been done and performed,
and the execution of this Indenture and the issue hereunder of the Notes have in all respects been duly authorized;

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH,
for and in consideration of the premises and the purchases of the Notes by the Holders thereof, it is mutually agreed, for the
benefit of each other and the equal and proportionate benefit of all Holders (as hereinafter defined), as follows:

 

ARTICLE
1.

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section
1.01         Definitions and References.

 

The terms defined in this Section 1.01
(except as herein otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and
of any indenture supplemental hereto shall have the respective meanings specified in this Section 1.01. The words “herein”,
“hereof”, “hereunder” and words of similar import refer to this Indenture as a whole and not to any particular
Article, Section or other Subdivision. The word “or” is not exclusive and the word “including” means including
without limitation. The terms defined in this Article include the plural as well as the singular. References to any Article, Section,
Schedule or Exhibit are to this Indenture except as herein otherwise expressly provided.

 

“Act” has the meaning specified
in Section 1.03.

 

“Additional Interest” means
all amounts, if any, payable by the Company pursuant to Section 5.08 or Section 6.03, as applicable.

 

“Additional Notes” means
any Notes (other than the Initial Notes) issued under this Indenture in accordance with Section 2.01, with the same terms as the
Initial Notes except to the extent permitted otherwise under Section 2.01.

 

    	1

    	 

    

  

“Additional Shares” has
the meaning specified in Section 4.06(a).

 

“Affiliate” of any specified
Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with
such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person
means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

 

“Agent Members” has the
meaning specified in Section 2.06(b).

 

“Agent” means any Paying
Agent, Registrar, Conversion Agent or any other agent appointed pursuant to this Indenture.

 

“Aggregate Available Share Cap”
has the meaning specified in the definition of “Stockholders Approvals” under this Section 1.01.

 

“Aggregate NYSE Share Cap”
has the meaning specified in the definition of “Stockholders Approvals” under this Section 1.01.

 

“Applicable Procedures”
means, with respect to any matter at any time, the policies and procedures of a Depositary, if any, that are applicable to such
matter at such time.

 

“Authenticating Agent”
means any Person authorized by the Trustee to act on behalf of the Trustee to authenticate Notes.

 

“Bid Solicitation Agent”
means, initially, the Trustee, or any agent the Company may appoint in the future (which may be the Company) to solicit market
bid quotations for the Notes as may be required pursuant to Section 4.01(b)(ii).

 

“Board of Directors” means
either the board of directors of the Company or any duly authorized committee of that board.

 

“Board Resolution” when
used with reference to the Company means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company
to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered
to the Trustee.

 

“Business Day” means any
day other than (x) a Saturday, (y) a Sunday or (z) a day on which state or federally chartered banking institutions in New York,
New York are authorized or required by law, regulation or executive order to close.

 

“Capital Stock” means,
for any Person, any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) the equity of such Person, but excluding any debt securities convertible into such equity.

 

“Cash Settlement” has the
meaning specified in Section 4.03(a).

 

    	2

    	 

    

  

“Change in Control” means
an event that will be deemed to have occurred at the time, after the first date of original issuance for the Initial Notes, any
of the following occurs:

 

(1)         any
“person” or “group” (within the meaning of Section 13(d) of the Exchange Act) is or becomes the direct
or indirect “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of the Company’s Common Equity
representing 50% or more of the total voting power of the Company’s Common Equity, or has the power, directly or indirectly,
to elect a majority of the members of the Company’s Board of Directors;

 

(2)         the
Company consolidates with, enters into a binding share exchange, merger or similar transaction with or into another person or the
Company sells, assigns, conveys, transfers, leases or otherwise disposes of all or substantially all of the consolidated assets
of the Company, or any Person consolidates with, or merges with or into, the Company; provided, that any merger, binding
share exchange, consolidation or similar transaction pursuant to which the Persons that “beneficially owned,” (as defined
in Rule 13d-3 under the Exchange Act) directly or indirectly, the Company’s Common Equity immediately prior to such transaction
“beneficially own,” (as defined in Rule 13d-3 under the Exchange Act) directly or indirectly, the Common Equity representing
at least a majority of the total voting power of all outstanding classes of the Common Equity of the surviving or transferee Person
and such holders’ proportional voting power immediately after such transaction vis-à-vis each other with respect to
the securities they receive in such transaction will be in substantially the same proportions as their respective voting power
vis-à-vis each other immediately prior to such transaction will not constitute a “Change in Control”; or

 

(3)         the
holders of the Company’s Capital Stock approve any plan or proposal for the liquidation or dissolution of the Company (whether
or not otherwise in compliance with this Indenture).

 

provided that, notwithstanding the
foregoing, a “Change in Control” will not be deemed to have occurred if at least 90% of the consideration paid for
the Common Stock in a transaction or transactions described under clause (2) of this definition of “Change in Control”
above (excluding cash payments for any fractional shares and cash payments made pursuant to dissenters’ appraisal rights)
consists of shares of common stock traded on a Permitted Exchange, or will be so traded immediately following such transaction,
and as a result therefrom, such consideration becomes the Reference Property for the Notes.

 

If any transaction in which the Common Stock
is replaced by the Reference Property comprised of securities of another entity occurs, following completion of any related Make-Whole
Fundamental Change Period and any related Fundamental Change Purchase Date, references to the Company in this definition of “Change
in Control” will apply to such other entity instead.

 

“Clause A Distribution”
has the meaning specified in Section 4.04(c).

 

“Clause B Distribution”
has the meaning specified in Section 4.04(c).

 

    	3

    	 

    

  

“Clause C Distribution”
has the meaning specified in Section 4.04(c).

 

“Close of Business” means
5:00 p.m., New York City time.

 

“Closing Sale Price” of
the Common Stock for any day, as determined by the Company, means the closing sale price per share (or, if no closing sale price
is reported, the average of the last bid and last ask prices or, if more than one in either case, the average of the average last
bid and the average last ask prices) at 4:00 p.m. New York City time on that day as reported in composite transactions for the
Exchange, or if the Common Stock is not listed on the Exchange, the principal U.S. national or regional securities exchange on
which the Common Stock is listed for trading or, if the Common Stock is not listed on a U.S. national or regional securities exchange,
as reported by OTC Markets Group Inc. at 4:00 p.m. New York City time on such date (or in either case the then-standard closing
time for regular trading on the relevant exchange or trading system). If the closing sale price of the Common Stock is not so reported,
the “Closing Sale Price” will be the average of the mid-point of the last bid and last ask prices for the Common Stock
on the relevant date from each of at least three nationally recognized independent investment banking firms selected by the Company
for this purpose.

 

“Combination Settlement”
has the meaning specified in Section 4.03(a).

 

“Commission” means the
U.S. Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any time after
the execution of this indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

 

“Common Equity” of any
Person means the Capital Stock of such Person that is generally entitled (a) to vote in the election of directors of such
Person or (b) if such Person is not a corporation, to vote or otherwise participate in the selection of the governing body,
partners, managers or others that will control the management or policies of such Person.

 

“Common Stock” means the
shares of common stock, par value $0.01 per share, of the Company authorized at the date of this instrument as originally executed
or shares of any class or classes of common stock resulting from any reclassification or reclassifications thereof; provided,
however, that if at any time there shall be more than one such resulting class, the shares so issuable on conversion of
Notes shall include shares of all such classes, and the shares of each such class then so issuable shall be substantially in the
proportion which the total number of shares of such class resulting from all such reclassifications bears to the total number of
shares of all such classes resulting from all such reclassifications.

 

“common stock” includes
any stock of any class of Capital Stock which has no preference in respect of dividends or of amounts payable in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the issuer thereof and which is not subject to redemption by
the issuer thereof.

 

“Company” has the meaning
specified in the first paragraph of this Indenture, and subject to the provisions of Article 9, shall include its successors
and assigns.

 

    	4

    	 

    

  

“Company Order” means a
written request or order signed in the name of the Company by one of its Officers, and delivered to the Trustee.

 

“Conversion Agent” has
the meaning specified in Section 5.02.

 

“Conversion Date” has the
meaning specified in Section 4.02(b).

 

“Conversion Notice” has
the meaning specified in Section 4.02(b).

 

“Conversion Period” means,
with respect to any Note surrendered for conversion, (i) if the relevant Conversion Date occurs prior to the 45th Scheduled
Trading Day immediately preceding the Maturity Date, the 40 consecutive VWAP Trading Day period beginning on, and including, the
third VWAP Trading Day immediately following such Conversion Date; and (ii) if the relevant Conversion Date occurs on or after
the 45th Scheduled Trading Day immediately preceding the Maturity Date, the 40 consecutive VWAP Trading Day period beginning on,
and including, the 42nd Scheduled Trading Day immediately preceding the Maturity Date.

 

“Conversion Price” means,
in respect of each Note, as of any date, $1,000 divided by the Conversion Rate in effect on such date.

 

“Conversion Rate” means
initially 88.5716 shares of Common Stock per $1,000 principal amount of Notes, subject to adjustment as set forth herein.

 

“Corporate Trust Office”
means, with respect to the office of the Trustee, the designated corporate trust office of the Trustee, at which at any particular
time this Indenture shall be principally administered, which office at the date hereof is located at 1100 North Market Street,
Wilmington, Delaware 19890, Attn: IGI Laboratories, Inc. 2019 Notes Administrator, or such other address in the continental United
States as the Trustee may designate from time to time by notice to the Holders and the Company, or the corporate trust office of
any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders
and the Company).

 

“corporation” means a corporation,
association, joint stock company, limited liability company or business trust.

 

“Custodian” means the Trustee,
as custodian for the Depositary with respect to the Notes (so long as the Notes constitute Global Notes), or any successor entity.

 

“Daily Conversion Value”
means, for each VWAP Trading Day during any Conversion Period, one-fortieth (1/40th) of the product of (i) the Conversion
Rate in effect on such VWAP Trading Day and (ii) the Daily VWAP on such VWAP Trading Day.

 

“Daily Measurement Value”
means, for any conversion of Notes, the applicable Specified Dollar Amount divided by 40.

 

    	5

    	 

    

  

“Daily Net Share Number”
means, for each $1,000 principal amount of Notes surrendered for conversion, for each of the 40 consecutive VWAP Trading Days during
the Conversion Period, a number of shares of Common Stock equal to (A) the greater of (x) the difference between the Daily Conversion
Value for such VWAP Trading Day and the Daily Measurement Value and (y) zero, divided by (B) the Daily VWAP for such VWAP Trading
Day

 

“Daily Settlement Amount”
for each $1,000 principal amount of Notes surrendered for conversion, for each of the 40 consecutive VWAP Trading Days during the
Conversion Period, will consist of: (i) if the Daily Conversion Value for such VWAP Trading Day exceeds the Daily Measurement Value,
(x) a cash payment of the Daily Measurement Value; and (y) a number of shares of Common Stock equal to the Daily Net
Share Number for such VWAP Trading Day; or (ii) if the Daily Conversion Value for such VWAP Trading Day is less than or equal to
the Daily Measurement Value, a cash payment equal to the Daily Conversion Value.

 

“Daily VWAP” for the Common
Stock (or any security that is part of the Reference Property), in respect of any VWAP Trading Day, means the per share volume-weighted
average price of the Common Stock (or other security) as displayed under the heading “Bloomberg VWAP” on Bloomberg
Page “IG Equity AQR” (or its equivalent successor if such page is not available, or the Bloomberg Page for any security
that is part of the Reference Property, if applicable) in respect of the period from the scheduled open of trading until the scheduled
close of trading of the primary trading session on such VWAP Trading Day or, if such volume-weighted average price is unavailable
(or the Reference Property is not a security), the market value of one share of the Common Stock (or other Reference Property)
on such VWAP Trading Day as determined in good faith by the Board of Directors or a duly authorized committee thereof in a commercially
reasonable manner, using a volume-weighted average price method (unless the Reference Property is not a security). The “Daily
VWAP” will be determined without regard to after-hours trading or any other trading outside the regular trading session.

 

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

 

“Depositary” means, with
respect to the Notes issuable or issued in the form of a Global Note, the Person designated as Depositary by the Company until
a successor Depositary shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary”
shall mean or include each Person who is then a Depositary hereunder. The Company has appointed The Depository Trust Company as
the initial Depositary for the Notes.

 

“Dollar” or “$”
means a dollar or other equivalent unit in such coin or currency of the U.S. that is legal tender for the payment of public and
private debts at the time of payment.

 

“Effective Date” means
(i) with respect to a Fundamental Change or a Make-Whole Fundamental Change, as applicable, the date such Fundamental Change or
Make-Whole Fundamental Change occurs or becomes effective and (ii) with respect to a Redemption Notice, the Redemption Notice Date
of such Redemption Notice.

 

“Event of Default” has
the meaning specified in Section 6.01.

 

    	6

    	 

    

  

“Ex-Dividend Date” means,
except to the extent otherwise provided under Section 4.04(c), the first date on which the shares of Common Stock trade on
the applicable exchange or in the applicable market, regular way, without the right to receive the issuance, dividend or distribution
in question, from the Company or, if applicable, from the seller of the Common Stock on such exchange or market (in the form of
due bills or otherwise) as determined by such exchange or market.

 

“Exchange” means The NYSE
MKT or its successor.

 

“Exchange Act” means the
U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Form of Assignment and Transfer”
means the “Form of Assignment and Transfer” attached as Attachment 3 to the Form of Note attached hereto
as Exhibit A.

 

“Form of Fundamental Change Purchase
Notice” means the “Form of Fundamental Change Purchase Notice” attached as Attachment 2 to the
Form of Note attached hereto as Exhibit A.

 

“Form of Notice of Conversion”
means the “Form of Notice of Conversion” attached as Attachment 1 to the Form of Note attached hereto
as Exhibit A.

 

“Free Trade Date” means
the date that is one year after the Last Original Issuance Date.

 

“Free Transferability Certificate”
means a certificate substantially in the form attached hereto as Exhibit B.

 

“Freely Tradable” means,
with respect to any Notes, that such Notes are eligible to be sold by a Person who is not an affiliate of the Company (within the
meaning of Rule 144) and has not been an affiliate of the Company (within the meaning of Rule 144) during the immediately preceding
90 days without any volume or manner of sale restrictions under the Securities Act.

 

“Fundamental Change” means
the occurrence of a Change in Control or a Termination of Trading.

 

“Fundamental Change Company Notice”
has the meaning specified in Section 3.02(a).

 

“Fundamental Change Expiration Time”
has the meaning specified in Section 3.03(a)(i).

 

“Fundamental Change Purchase Date”
has the meaning specified in Section 3.01.

 

“Fundamental Change Purchase Notice”
has the meaning specified in Section 3.03(a)(i).

 

    	7

    	 

    

  

“Fundamental Change Purchase Price”
has the meaning specified in Section 3.01.

 

“Global Note” means a Note
evidencing all or part of a series of Notes, issued to the Depositary for such series or its nominee, and registered in the name
of such Depositary or nominee.

 

“Holder” means the Person
in whose name a Note is registered in the Register.

 

“Indenture” means this
Indenture as amended or supplemented from time to time.

 

“Initial Notes” has the
meaning specified in Section 2.01.

 

“Initial Purchasers” means
the Persons listed in Schedule I to the Purchase Agreement.

 

“Interest Payment Date”
means, with respect to the payment of interest on the Notes, each June 15 and December 15 of each year, beginning on, in the case
of the Initial Notes, June 15, 2015.

 

“Issue Date” means, with
respect to any Notes, the date the Notes are originally issued as set forth on the face of the Notes under this Indenture.

 

“Last Original Issuance Date”
means the last date of original issuance of the Initial Notes.

 

“Make-Whole Fundamental Change”
means (i) any Change in Control (determined after giving effect to any exceptions or exclusions from the definition of “Change
in Control” but without giving effect to the proviso in clause (2) of the definition thereof) and (ii) any Termination of
Trading.

 

“Make-Whole Fundamental Change Period”
has the meaning specified in Section 4.06(a).

 

“Market Disruption Event”
means, if the Common Stock is listed for trading on the Exchange or listed on another U.S. national or regional securities exchange,
the occurrence or existence during the one-half hour period ending on the scheduled close of trading on any Scheduled Trading Day
of any material suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the
stock exchange or otherwise) in the Common Stock or in any options, contracts or futures contracts relating to the Common Stock.

 

“Maturity Date” means December
15, 2019.

 

“Merger Event” has the
meaning specified in Section 4.07(a).

 

“Non-Affiliate Legend”
has the meaning specified in the Form of Note attached hereto as Exhibit A.

 

    	8

    	 

    

  

“Note” or “Notes”
has the meaning specified in the first paragraph of the Recitals of this Indenture.

 

“Offer Expiration Date”
has the meaning specified in Section 4.04(e).

 

“Officer” or “officer”
shall mean, the Chairman of the Board of Directors, the Chief Executive Officer, the Chief Financial Officer, the President, a
Vice President (whether or not designated by a number or word or words added before or after the title “Vice President”)
or any Director of the Company.

 

“Officer’s Certificate”
means a certificate signed by an Officer of the Company and delivered to the Trustee.

 

“Open of Business” means
9:00 a.m., New York City time.

 

“Opinion of Counsel” means
a written opinion of counsel, who may be an employee of, or counsel for, the Company or an Affiliate of the Company, who is reasonably
satisfactory to the Trustee.

 

“Optional Redemption” has
the meaning specified in Section 10.01.

 

“Outstanding” means, with
respect to the Notes, any Notes authenticated by the Trustee except (i) Notes cancelled by it, (ii) Notes delivered to
it for cancellation and (iii)(A) Notes replaced pursuant to Section 2.09 hereof, on and after the time such Note is replaced
(unless the Trustee and the Company receive proof satisfactory to them that such Note is held by a protected purchaser), (B) Notes
converted pursuant to Article 4 hereof, on and after their Conversion Date, (C) any and all Notes, the principal of which
has become due and payable as of the Maturity Date, on a Fundamental Change Purchase Date, Redemption Date or otherwise and in
respect of which the Paying Agent is holding, in accordance with this Indenture, money sufficient to pay, repurchase or redeem
all of the Notes then to be paid, repurchased or redeemed and (D) any and all Notes owned by the Company or any other obligor
upon the Notes or any Affiliate of the Company or of such other obligor. In determining whether the Holders of the required principal
amount of Notes have concurred in any request, demand, authorization, direction, notice, consent or waiver, Notes owned by the
Company or any other obligor upon the Notes or any Affiliate of the Company will be considered as though not Outstanding, except
that in determining whether the Trustee shall be protected in relying upon any request, demand, authorization, direction, notice,
consent or waiver, only such Notes which a Responsible Officer of the Trustee actually knows to be so owned shall be disregarded.

 

“Paying Agent” means, initially,
the Trustee or any Person authorized by the Company in the future to pay the principal amount of, any premium on, interest on,
the Fundamental Change Purchase Price or Redemption Price of any Notes on behalf of the Company.

 

“Permitted Exchange” has
the meaning specified in the definition of “Termination of Trading” under this Section 1.01.

 

    	9

    	 

    

  

“Person” means any individual,
corporation, partnership, joint venture, trust, unincorporated organization or government or any agency or political subdivision
thereof.

 

“Physical Notes” means
permanent, non-global certificated Notes in definitive, fully registered form issued in minimum denominations of $1,000 principal
amount and integral multiples of $1,000 in excess thereof.

 

“Physical Settlement” has
the meaning specified in Section 4.03(a).

 

“Preliminary Offering Memorandum”
means the Preliminary Offering Memorandum dated December 9, 2014 related to the offering of the Initial Notes.

 

“Purchase Agreement” means
that certain Purchase Agreement, dated December 10, 2014, among the Company and the Initial Purchasers.

 

“Record Date” means, with
respect to any dividend, distribution or other transaction or event in which the holders of Common Stock have the right to receive
any cash, securities or other property or in which Common Stock (or other applicable security) is exchanged for or converted into
any combination of cash, securities or other property, the date fixed for determination of holders of Common Stock entitled to
receive such cash, securities or other property (whether such date is fixed by the Board of Directors or a duly authorized committee
thereof, statute, contract or otherwise).

 

“Redemption Date” has the
meaning specified in Section 10.02(a).

 

“Redemption Notice” has
the meaning specified in Section 10.02(a).

 

“Redemption Notice Date”
has the meaning specified in Section 10.02(a).

 

“Redemption Price” has
the meaning specified in Section 10.01.

 

“Reference Property” has
the meaning specified in Section 4.07(a).

 

“Register” and “Registrar”
have the respective meanings specified in Section 2.06.

 

“Regular Record Date” means,
with respect to any Interest Payment Date, June 1 (whether or not a Business Day) or December 1 (whether or not a Business
Day), as the case may be, immediately preceding such Interest Payment Date.

 

“Relevant Distribution”
has the meaning specified in Section 4.04(c).

 

“Reporting Event of Default”
has the meaning specified in Section 6.03.

 

“Resale Restriction Termination Date”
has the meaning specified in Section 2.08(b)(ii).

 

    	10

    	 

    

  

“Responsible Officer,”
when used with respect to the Trustee, means any officer within the corporate trust department (or any other successor group of
the Trustee) customarily performing functions similar to those performed by any of the above designated officers who at the time
shall be such officers, respectively, or to whom any corporate trust matter is referred because of his or her knowledge of and
familiarity with the particular subject and who in each case shall have direct responsibility for the administration of this Indenture.

 

“Restricted Global Note”
has the meaning specified in Section 2.08(b)(i).

 

“Restricted Note” has the
meaning specified in Section 2.07(a)(i).

 

“Restricted Notes Legend”
has the meaning specified in the Form of Note attached hereto as Exhibit A.

 

“Restricted Stock” has
the meaning specified in Section 2.07(b)(i).

 

“Restricted Stock Legend”
means a legend substantially in the form set forth in Exhibit C hereto.

 

“Rule 144” means Rule 144
under the Securities Act (including any successor rule thereto), as the same may be amended from time to time.

 

“Scheduled Trading Day”
means any day that is scheduled to be a Trading Day on the principal U.S. national or regional securities exchange or market on
which the Common Stock is listed for trading. If the Common Stock is not so listed, “Scheduled Trading Day” means a
“Business Day.”

 

“Securities Act” means
the U.S. Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Settlement Amount” has
the meaning specified in Section 4.03(a)(iii).

 

“Settlement Election” has
the meaning specified in Section 4.03(a)(i).

 

“Settlement Election Notice”
has the meaning specified in Section 4.03(a)(i).

 

“Settlement Method” means,
with respect to any conversion of Notes, Physical Settlement, Cash Settlement or Combination Settlement, as elected (or deemed
to be elected) by the Company in accordance with Section 4.03(a)(i).

 

“Settlement Method Election Date”
has the meaning specified in Section 4.03(a)(i).

 

“Significant Subsidiary”
means, with respect to any Person at any given time, a Subsidiary of such person that would constitute a “significant subsidiary”
as such term is defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as in effect on
the Issue Date.

 

    	11

    	 

    

  

“Specified Dollar Amount”
means, for any conversion of Notes, the maximum cash amount per $1,000 principal amount of Notes to be received by the Holder upon
conversion as specified in the Company’s Specified Dollar Amount Election Notice (which may be part of the Settlement Election
Notice) or otherwise deemed to be elected by the Company in respect of such conversion as provided herein.

 

“Specified Dollar Amount Election”
has the meaning specified in Section 4.03(a)(i).

 

“Specified Dollar Amount Election
Notice” has the meaning specified in Section 4.03(a)(i).

 

“Spin-Off” has the meaning
specified in Section 4.04(c).

 

“Stock Price” has the meaning
specified in Section 4.06(b).

 

“Stockholders Approvals”
means the requisite approvals from the Company’s stockholders to (i) amend its restated certificate of incorporation to sufficiently
increase the aggregate number of authorized but unissued shares of Common Stock and treasury shares of Common Stock available to
the Company for the purpose of satisfying the conversion of the Initial Notes which number is, as of the date of this Indenture,
2,583,059 shares (the “Aggregate Available Share Cap”), to permit the conversion and settlement of all the Initial
Notes into shares of Common Stock pursuant to Physical Settlement (including, for the avoidance of doubt, any applicable Additional
Shares) and (ii) issue more than 10,558,675 shares of Common Stock in accordance with the continued listing standards of The NYSE
MKT (the “Aggregate NYSE Share Cap”).

 

“Subsidiary” of any Person
means (a) any corporation, association or other business entity of which more than 50% of the outstanding total voting power
ordinarily entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, trustees
or other voting members of the governing body thereof is at the time owned or controlled, directly or indirectly, by the Company
or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries or (b) any partnership the sole
general partner or the managing general partner of which is the Company or a Subsidiary of the Company or the only general partners
of which are the Company or of one or more Subsidiaries of the Company (or any combination thereof).

 

“Successor Company” has
the meaning specified in Section 9.01(a).

 

“Termination of Trading”
means that the Common Stock (or other Reference Property into which the Notes are then convertible pursuant to the terms of
this Indenture) are not listed for trading on any of the Exchange, The New York Stock Exchange, The NASDAQ Global Select Market
or The NASDAQ Global Market (or any of their respective successors) (such exchanges or any of their respective successors, a “Permitted
Exchange”).

 

“Trading Day” means a day
on which (i) the Exchange or, if the Common Stock is not listed on the Exchange, the principal other U.S. national or regional
securities exchange on which the Common Stock is then listed is open for trading or, if the Common Stock is not so listed, any
Business Day and (ii) a Closing Sale Price for the Common Stock is available on such securities exchange or market. A “Trading
Day” only includes those days that have a scheduled closing time of 4:00 p.m. (New York City time) or the then-standard closing
time for regular trading on the relevant exchange or trading system.

 

    	12

    	 

    

  

“Trading Price” means,
on any date of determination, the average of the secondary market bid quotations per $1,000 principal amount of Notes obtained
by the Bid Solicitation Agent (or, if the Company is acting as the Bid Solicitation Agent, the Company) for $5,000,000 principal
amount of the Notes at approximately 3:30 p.m., New York City time, on such determination date from three independent nationally
recognized securities dealers selected by the Company; provided that, if three such bids cannot reasonably be obtained by
the Company or the Bid Solicitation Agent, as applicable, but two such bids are obtained, then the average of the two bids shall
be used, and if only one such bid can reasonably be obtained by the Company or the Bid Solicitation Agent, as applicable, that
one bid shall be used. If on any date of determination, (i) the Company or the Bid Solicitation Agent, as applicable, cannot reasonably
obtain at least one bid for $5,000,000 principal amount of the Notes from an independent nationally recognized securities dealer,
(ii) the Company fails to request the Bid Solicitation Agent to obtain bids when required or (iii) the Company requests that the
Bid Solicitation Agent obtain bids and the Bid Solicitation Agent fails to make such determination (or, if the Company is the Bid
Solicitation Agent, the Company fails to make such determination), then, in each case, the Trading Price per $1,000 principal amount
of Notes on such date of determination or on each Trading Day of such failure (as the case may be) will be deemed to be less than
98% of the product of (i) the Closing Sale Price of the Common Stock on such date and (ii) the applicable Conversion
Rate.

 

“Trigger Event” has the
meaning specified in Section 4.04(c).

 

“Trustee” means the Person
named as the “Trustee” in the first paragraph of this Indenture until a successor Trustee shall have become such pursuant
to Section 11.11, and thereafter “Trustee” shall mean or include each Person who is then a Trustee hereunder.

 

“Trust Indenture Act” means
the Trust Indenture Act of 1939, as amended.

 

“Unit of Reference Property”
has the meaning specified in Section 4.07(a).

 

“U.S.” means the United
States of America.

 

“Valuation Period” has
the meaning specified in Section 4.04(c).

 

“Vice President,” when
used with respect to the Company or the Trustee, as applicable, means any vice president, whether or not designated by a number
or a word or words added before or after the title “vice president”.

 

“VWAP Market Disruption Event”
means (i) a failure by the primary exchange or quotation system on which the Common Stock trades or is quoted to open for trading
during its regular trading session or (ii) the occurrence or existence for more than one half-hour period in the aggregate on any
Scheduled Trading Day for the Common Stock of any suspension or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by the Exchange or otherwise) in the Common Stock or in any options, contracts or future contracts relating
to the Common Stock, and such suspension or limitation occurs or exists at any time before 1:00 p.m. (New York City time) on such
day.

 

    	13

    	 

    

  

“VWAP Trading Day” means
a day on which (i) there is no VWAP Market Disruption Event and (ii) the Exchange or, if the Common Stock is not listed
on the Exchange, the principal other U.S. national or regional securities exchange on which the Common Stock is then listed is
open for trading or, if the Common Stock is not so listed, any Business Day. A “VWAP Trading Day” only includes those
days that have a scheduled closing time of 4:00 p.m. (New York City time) or the then-standard closing time for regular trading
on the relevant exchange or trading system.

 

Section
1.02         References to Interest.

 

Any reference to interest on, or in respect
of, any Note in this Indenture shall be deemed to include Additional Interest, if, in such context, Additional Interest, is, was
or would be payable pursuant hereto. Any express mention of the payment of Additional Interest in any provision hereof shall not
be construed as excluding Additional Interest in those provisions hereof where such express mention is not made.

 

Section
1.03         Acts of Holders.

 

(a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided or permitted by this Indenture to be made, given or taken by Holders
may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or
by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company. Such instrument
or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act”
of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any
such agent, or of the holding by any Person of Notes, shall be sufficient for any purpose of this Indenture and conclusive in favor
of the Trustee and the Company, if made in the manner provided in this Section 1.03.

 

(b)          The
fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying
that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by a
signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient
proof of his authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing
the same, may also be proved in any other manner which the Trustee deems sufficient.

 

    	14

    	 

    

  

(c)          The
amount of Notes held by any Person executing any such instrument or writings as the Holder thereof, the numbers of such Notes and
the date of his holding the same may be proved by the production of such Notes or by a certificate executed, as depositary, by
any trust company, bank, banker or member of a national securities exchange (wherever situated), if such certificate is in form
satisfactory to the Trustee, showing that at the date therein mentioned such Person had on deposit with such depositary, or exhibited
to it, the Notes therein described; or such facts may be proved by the certificate or affidavit of the Person executing such instrument
or writing as the Holder thereof, if such certificate or affidavit is in form satisfactory to the Trustee. The Trustee and the
Company may assume that such ownership of any Notes continues until (1) another certificate bearing a later date issued in
respect of the same Notes is produced or (2) such Notes are produced by some other Person or (3) such Notes are no longer
Outstanding.

 

(d)          The
fact and date of execution of any such instrument or writing and the amount and number of Notes held by the Person so executing
such instrument or writing may also be proved in any other manner that the Trustee deems sufficient. The Trustee may in any instance
require further proof with respect to any of the matters referred to in this Section 1.03.

 

(e)          The
principal amount (except as otherwise contemplated in clause (ii) of the definition of “Outstanding”), serial
numbers of Notes held by any Person and the date of holding the same shall be proved by the Register.

 

(f)          Any
request, demand, authorization, direction, notice, consent, election, waiver or other Act of the Holder of any Note shall bind
every future Holder of the same Note and the Holder of every Note issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company in reliance
thereon, whether or not notation of such action is made upon such Note.

 

(g)          The
Company may but shall not be obligated to set a record date for purposes of determining the identity of Holders of any Outstanding
Notes entitled to vote or consent to any action by vote or consent authorized or permitted by Sections 2.11, 6.02, 6.04, 6.05,
6.06, 8.02 or 11.10. Such record date shall be not less than 10 nor more than 60 days prior to the first solicitation of such
consent or the date of the most recent list of Holders of such Notes furnished to the Trustee pursuant to Section 5.13 prior
to such solicitation.

 

(h)          If
the Company solicits from Holders any request, demand, authorization, direction, notice, consent, election, waiver or other Act,
the Company may, at its option, fix in advance a record date for the determination of Holders entitled to give such request, demand,
authorization, direction, notice, consent, election, waiver or other Act, but the Company shall have no obligation to do so. If
such a record date is fixed, such request, demand, authorization, direction, notice, consent, election, waiver or other Act may
be given before or after such record date, but only the Holders of record at the close of business on the record date shall be
deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of the Outstanding Notes have
authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, election, waiver or other
Act, and for that purpose the Outstanding Notes shall be computed as of the record date; provided that no such authorization, agreement
or consent by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions
of this Indenture not later than six months after the record date.

 

    	15

    	 

    

  

ARTICLE
2.

The Notes

 

Section
2.01         Title and Terms; Payments.

 

The aggregate principal amount of Notes
that may be authenticated and delivered under this Indenture is initially limited to $125,000,000 (as may be increased by an amount
(not to exceed $18,750,000) equal to the aggregate principal amount of additional Notes purchased by the Initial Purchasers pursuant
to the exercise of their option to purchase additional Notes as set forth in the Purchase Agreement) (the “Initial Notes”),
except for Notes authenticated and delivered upon registration or transfer of, or in exchange for, or in lieu of, other Notes pursuant
to Sections 2.05, 2.06, 2.07, 2.08, 2.09, 2.11, 3.07, 4.02(d) or 10.04. The Company may, from time to time after the execution
of this Indenture, execute and deliver to the Trustee for authentication Additional Notes of an unlimited aggregate principal amount,
and the Trustee shall thereupon authenticate and deliver said Additional Notes to or upon receipt of a Company Order, without any
further action by the Company hereunder; provided, however, that (1) if any such Additional Notes are not fungible
with the Initial Notes for U.S. federal income tax purposes, any such Additional Notes will have a separate CUSIP number for so
long as they remain not fungible; (2) such Additional Notes must be issued pursuant to the same terms (other than the date
of issuance for such Notes, the issue price, and, if applicable in accordance with Section 2.14, the date from which interest will
initially accrue and the date of the first interest payment) as the Initial Notes; (3) the Trustee must receive an Officer’s
Certificate to the effect that such issuance of Additional Notes complies with the provisions of this Indenture, including each
provision of this paragraph and all conditions precedent to the issuance and authentication of such Additional Notes have been
satisfied; and (4) the Trustee must receive an Opinion of Counsel which shall state (a) that the form of such Additional Notes
has been established by a supplemental indenture or pursuant to the Board Resolutions in accordance with this Section 2.01 and
Section 2.04 and in conformity with the provisions of this Indenture; (b) that the terms of such Additional Notes have been established
in accordance with this Section 2.01 and in conformity with the other provisions of this Indenture and all conditions precedent
to the issuance and authentication of such Additional Notes have been satisfied; and (c) that such Additional Notes have been duly
authorized, executed and delivered by the Company and, when authenticated and delivered by the Trustee and issued by the Company
in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations
of the Company, enforceable in accordance with their terms, subject to bankruptcy, insolvency, reorganization and other laws of
general applicability relating to or affecting the enforcement of creditors' rights and to general equity principles.

 

The Notes shall be known and designated
as the “3.75% Convertible Senior Notes due 2019” of the Company. The principal amount shall be payable on the Maturity
Date unless no longer Outstanding because earlier purchased, redeemed or converted in accordance with this Indenture.

 

    	16

    	 

    

  

The principal amount of Physical Notes shall
be payable in U.S. dollars at the Corporate Trust Office and at any other office or agency maintained by the Company for such purpose.
Interest on Physical Notes will be payable (i) to Holders holding Physical Notes having an aggregate principal amount of $1,000,000
or less of Notes, by check mailed to such Holders at the address set forth in the Register and (ii) to Holders holding Physical
Notes having an aggregate principal amount of more than $1,000,000 of Notes, either by check mailed to such Holders or, upon written
application by a Holder to the Company and Registrar at least three Business Days prior to the relevant Interest Payment Date,
by wire transfer in immediately available funds to such Holder’s account within the U.S., which application shall remain
in effect until the Holder notifies the Registrar to the contrary in writing. The Company will pay or cause the Trustee or Paying
Agent to pay principal of, and interest on, Global Notes in U.S. dollars and in immediately available funds to the Depositary or
its nominee, as the case may be, as the registered Holder of such Global Note, on each Interest Payment Date, Fundamental Change
Purchase Date, Redemption Date, the Maturity Date or other payment date, as the case may be.

 

Section
2.02         Ranking.

 

The Notes constitute direct unsecured, senior
obligations of the Company.

 

Section
2.03         Denominations.

 

The Notes shall be issuable only in registered
form without coupons and in minimum denominations of $1,000 and in integral multiples of $1,000 in excess thereof.

 

Section
2.04         Execution, Authentication, Delivery and Dating.

 

The Notes shall be executed on behalf of
the Company by one of its Officers.

 

Notes bearing the manual or facsimile signatures
of individuals who were at any time Officers of the Company shall bind the Company, notwithstanding that such individual has ceased
to hold such office prior to the authentication and delivery of such Notes or did not hold such office at the date of such Notes.

 

At any time and from time to time after
the execution and delivery of this Indenture, the Company may deliver Notes executed by the Company to the Trustee for authentication,
together with a Company Order for the authentication and delivery of such Notes. The Company Order shall specify the amount of
Notes to be authenticated, and shall further specify the amount of such Notes to be issued as one or more Global Notes or as one
or more Physical Notes. The Trustee in accordance with such Company Order shall authenticate and deliver such Notes as provided
in this Indenture and not otherwise.

 

Each Note shall be dated the date of its
authentication.

 

No Note shall be entitled to any benefit
under this Indenture or be valid or obligatory for any purpose unless there appears on such Note a certificate of authentication
substantially in the form provided for herein executed by an authorized signatory of the Trustee by manual signature, and such
certificate upon any Note shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated and delivered
hereunder.

 

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Section
2.05         Temporary Notes.

 

Pending the preparation of Physical Notes,
the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Notes that are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the Physical Notes
in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other variations as the Officer
executing such Notes may determine, as evidenced by such Officer’s execution of such Notes; provided that any such
temporary Notes shall bear legends on the face of such Notes as set forth in the Form of Note attached hereto as Exhibit A
and/or Sections 2.07 and 2.11.

 

After the preparation of Physical Notes,
the temporary Notes shall be exchangeable for Physical Notes upon surrender of the temporary Notes at any office or agency of the
Company designated pursuant to Section 5.02, without charge to the Holder. Upon surrender for cancellation of any one or more temporary
Notes, the Company shall execute, and the Trustee shall, upon receipt of a Company Order, authenticate and deliver, in exchange
therefor a like principal amount of Physical Notes of authorized denominations. Until so exchanged, the temporary Notes shall in
all respects be entitled to the same benefits under this Indenture as Physical Notes.

 

Section
2.06         Registration; Registration of
Transfer and Exchange.

 

(a)          The
Company shall cause to be kept at the applicable Corporate Trust Office of the Trustee in the continental United States a register
(the register maintained in such office and in any other office or agency designated pursuant to Section 5.02 being herein sometimes
collectively referred to as the “Register”) in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the registration and transfer of Notes. The Trustee is
hereby appointed registrar (the “Registrar”) for the purpose of registering
the transfer and exchange of the Notes as herein provided.

 

Upon surrender for registration of transfer
of any Note at an office or agency of the Company designated pursuant to Section 5.02 for such purpose, the Company shall execute,
and upon receipt of a Company Order the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Notes of any authorized denomination and of a like aggregate principal amount and tenor, each such Note bearing
such restrictive legends as may be required by this Indenture (including the Form of Note attached hereto as Exhibit A
and Sections 2.07 and 2.11).

 

At the option of the Holder and subject
to the other provisions of Sections 2.07 and 2.11, Notes may be exchanged for other Notes of any authorized denomination and of
a like aggregate principal amount and tenor, upon surrender of the Notes to be exchanged at such office or agency. Whenever any
Notes are so surrendered for exchange, the Company shall execute, and the Trustee shall, upon receipt of a Company Order, authenticate
and deliver, the Notes which the Holder making the exchange is entitled to receive.

 

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All Notes issued upon any registration of
transfer or exchange of Notes shall be the valid obligations of the Company evidencing the same debt, and entitled to the same
benefits under this Indenture as the Notes surrendered upon such registration of transfer or exchange.

 

Every Note presented or surrendered for
registration of transfer or for exchange shall (if so required by the Company or the Trustee) be duly endorsed, or be accompanied
by a written instrument of transfer in form satisfactory to the Company and the Registrar duly executed, by the Holder thereof
or his attorney duly authorized in writing. As a condition to the registration of transfer of any Restricted Notes, the Company
or the Trustee may require evidence satisfactory to them as to the compliance with the restrictions set forth in the legend on
such Notes.

 

No service charge shall be made for any
registration of transfer or exchange of Notes, but the Company and the Registrar may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes,
other than exchanges pursuant to Section 2.11 not involving any transfer.

 

Neither the Company nor the Registrar shall
be required to exchange or register a transfer of any Note in the circumstances set forth in Section 2.11(a)(iv).

 

(b)          Neither
any members of, or participants in, the Depositary (collectively, the “Agent Members”)
nor any other Persons on whose behalf any Agent Member may act shall have any rights under this Indenture with respect to any Global
Note registered in the name of the Depositary or any nominee thereof, or under any such Global Note, and the Depositary or such
nominee, as the case may be, may be treated by the Company, the Trustee, the Agents and any of their respective agents as the absolute
owner and Holder of such Global Note for all purposes whatsoever. Neither the Trustee nor any Agent shall have any liability, responsibility
or obligation to any Agent Members or any other Person on whose behalf Agent Members may act with respect to (i) any ownership
interests in the Global Note, (ii) the accuracy of the records of the Depositary or its nominee, (iii) any notice required
hereunder, (iv) any payments under or with respect to the Global Note or (v) actions taken or not taken by any Agent Members.

 

(c)          Notwithstanding
the foregoing, nothing herein shall prevent the Company, the Trustee, any Agent or any of their respective agents from giving effect
to any written certification, proxy or other authorization furnished by the Depositary or such nominee, as the case may be, or
impair, as between the Depositary, its Agent Members and any other Person on whose behalf an Agent Member may act, the operation
of customary practices of such Persons governing the exercise of the rights of a Holder of any Note. The registered Holder of a
Global Note may grant proxies and otherwise authorize any Person, including Agent Members and persons that may hold interests through
Agent Members, to take any action that a Holder is entitled to take under this Indenture or the Notes.

 

Section
2.07         Transfer Restrictions.

 

(a)          Restricted
Notes.

 

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(i)          Every
Note (and any security issued in exchange therefor or substitution thereof) that bears, or that is required under this Section 2.07
to bear, the Restricted Notes Legend will be deemed to be a “Restricted Note.”
Each Restricted Note will be subject to the restrictions on transfer set forth in this Indenture (including in the Restricted Notes
Legend) and will bear the restricted CUSIP number for the Notes unless the Company notifies the Trustee in writing that such restrictions
on transfer are eliminated or otherwise waived by written consent of the Company (including, without limitation, by the Company’s
delivery of the Free Transferability Certificate as provided herein), and each Holder of a Restricted Note, by such Holder’s
acceptance of such Restricted Note, will be deemed to be bound by the restrictions on transfer applicable to such Restricted Note.

 

(ii)         Until
the Resale Restriction Termination Date, any Note will bear the Restricted Notes Legend unless:

 

(A) (1)       such
Note, since last held by the Company or an affiliate of the Company (within the meaning of Rule 144), if ever, was transferred
(I) to a Person other than (x) the Company, (y) an affiliate of the Company (within the meaning of Rule 144)
or (z) a Person that was an affiliate of the Company (within the meaning of Rule 144) within the 90 days immediately preceding
such transfer and (II) pursuant to a registration statement that was effective under the Securities Act at the time of such
transfer; or

 

(1)         such
Note was transferred (I) to a Person other than (x) the Company or (y) an affiliate of the Company (within the meaning
of Rule 144) or a Person that was an affiliate of the Company (within the meaning of Rule 144) within the 90 days immediately
preceding such transfer and (II) pursuant to the exemption from registration provided by Rule 144 or any similar provision
then in force under the Securities Act; and

 

(B)         the
Company delivers written notice to the Trustee and the Registrar (including, without limitation, by the Company’s delivery
of the Free Transferability Certificate as provided herein) stating that the Restricted Notes Legend may be removed from such Note
and all Applicable Procedures have been complied with.

 

(iii)        In
addition, until the Resale Restriction Termination Date, no transfer of any Restricted Note will be registered by the Registrar
unless the transferring Holder delivers to the Trustee a completed notice substantially in the form of the Form of Assignment and
Transfer, which contains a certification that the transferee is (A) IGI Laboratories, Inc. or a subsidiary thereof or (B) such
other person that is not an affiliate of the Company (within the meaning of Rule 144) and has not been an affiliate of the
Company (within the meaning of Rule 144) within the 90 days immediately preceding the date of such proposed transfer.

 

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(iv)         On
and after the Resale Restriction Termination Date, any Note will bear the Restricted Note Legend if at any time the Company determines
that, to comply with applicable law, such Note must bear the Restricted Notes Legend and the Company notifies the Trustee in writing.

 

(b)          Restricted
Stock.

 

(i)          Every
share of Common Stock that bears, or that is required under this Section 2.07 to bear, the Restricted Stock Legend will be deemed
to be “Restricted Stock”. Each share of Restricted Stock will be subject to the restrictions on transfer set
forth in this Indenture (including in the Restricted Stock Legend) and will bear a restricted CUSIP number unless such restrictions
on transfer are eliminated or otherwise waived by written consent (including, without limitation, by the Company’s delivery
of the Free Transferability Certificate in connection with the Notes as provided herein) of the Company, and each Holder of Restricted
Stock, by such Holder’s acceptance of Restricted Stock, will be deemed to be bound by the restrictions on transfer applicable
to such Restricted Stock.

 

(ii)         Until
the Resale Restriction Termination Date, any shares of Common Stock issued upon the conversion of a Note, and any shares of Common
Stock issued upon conversion of a Restricted Note, will be issued in book-entry form by or on behalf of the Company and will bear
the Restricted Stock Legend unless the Company delivers written notice to the transfer agent for the Common Stock stating that
such shares of Common Stock need not bear the Restricted Stock Legend.

 

(iii)        On
and after the Resale Restriction Termination Date, shares of Common Stock will be issued in book-entry form and will bear the Restricted
Stock Legend at any time the Company reasonably determines that, to comply with applicable law, such shares of Common Stock must
bear the Restricted Stock Legend.

 

(c)          As
used in this Section 2.07, the term “transfer” means any sale, pledge,
transfer, loan, hypothecation or other disposition whatsoever of any Restricted Note, any interest therein or any Restricted Stock.

 

(d)          All
Notes, whether Global Notes or Physical Notes, are required to bear the Non-Affiliate Legend at all times, whether before or after
the Resale Restriction Termination Date.

 

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Section
2.08         Expiration of Restrictions.

 

(a)          Physical
Notes. Any Physical Note (or any security issued in exchange or substitution therefor) that does not constitute a Restricted
Note may be exchanged for a new Note or Notes of like tenor and aggregate principal amount that do not bear the Restricted Notes
Legend required by Section 2.07. To exercise such right of exchange, the Holder of such Note must surrender such Note in accordance
with the provisions of Section 2.11 and deliver any additional documentation required by this Indenture in connection with
such exchange.

 

(b)          Global
Notes; Resale Restriction Termination Date.

 

(i)          If,
on the Free Trade Date, or the next succeeding Business Day if the Free Trade Date is not a Business Day, any Notes are represented
by a Global Note that is a Restricted Note (any such Global Note, a “Restricted Global Note”), as promptly as
practicable, the Company will automatically exchange every beneficial interest in each Restricted Global Note for beneficial interests
in Global Notes that do not bear the Restricted Notes Legend and are not subject to the restrictions set forth in the Restricted
Notes Legend and in Section 2.07.

 

(ii)         To
effect such automatic exchange, the Company will (A) deliver to the Depositary an instruction letter for the Depositary’s
mandatory exchange process at least 15 days immediately prior to the Free Trade Date (with a copy to the Trustee) and (B) deliver
to each of the Trustee and the Registrar a duly completed Free Transferability Certificate on or promptly after the Free Trade
Date. The date of the Free Transferability Certificate will be known as the “Resale Restriction
Termination Date”. The Trustee shall assume that the Free Trade Date has not occurred unless and until it receives
a Free Transferability Certificate.

 

(iii)        Immediately
upon receipt of the Free Transferability Certificate by each of the Trustee and the Registrar:

 

(A)         
the Restricted Notes Legend will be deemed removed from each of the Global Notes specified in such Free Transferability Certificate
and the restricted CUSIP number will be deemed removed from each of such Global Notes and deemed replaced with the unrestricted
CUSIP number;

 

(B)         
the Restricted Stock Legend will be deemed removed from any shares of Common Stock previously issued upon conversion of the Notes;
and

 

(C)         thereafter,
shares of Common Stock issued upon conversion of the Notes will be assigned an unrestricted CUSIP number and will not bear the
Restricted Stock Legend (except as provided in Section 2.07(b)(iii)) or any similar legend.

 

(iv)         Promptly
after the Resale Restriction Termination Date, the Company will provide Bloomberg LLP with a copy of the Free Transferability Certificate
and will use reasonable efforts to cause Bloomberg LLP to adjust its screen page for the Notes to indicate that the Notes are no
longer Restricted Notes and are then identified by an unrestricted CUSIP number.

 

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(v)          Prior
to the Company’s delivery of the Free Transferability Certificate and afterwards, the Company and the Trustee will comply
with the Applicable Procedures and the Company shall otherwise use reasonable efforts to cause each Global Note that is not required
to bear the Restricted Notes Legend to be identified by an unrestricted CUSIP number in the facilities of the Depositary by the
date the Free Transferability Certificate is delivered to the Trustee and the Registrar or as promptly as possible thereafter.

 

(vi)         Notwithstanding
anything to the contrary in Sections 2.08(b)(i), (ii) or (iii), the Company
will not be required to deliver the Free Transferability Certificate if it reasonably believes that removal of the Restricted Notes
Legend or the changes to the CUSIP numbers for the Notes could result in or facilitate transfers of the Notes in violation of applicable
law.

 

Section
2.09         Mutilated, Destroyed, Lost and Stolen Notes.

 

If any mutilated Note is surrendered to
the Trustee, the Company shall execute, and the Trustee shall, upon receipt of a Company Order, authenticate and deliver, in exchange
therefor a new Note of like tenor and principal amount and bearing a number not contemporaneously outstanding. If there shall be
delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Note
and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless,
then, in the absence of written notice to the Company or the Trustee that such Note has been acquired by a protected purchaser,
the Company shall execute, and the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Note,
a new Note of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost
or stolen Note has become due and payable, the Company in its discretion may, instead of issuing a new Note, pay such Note.

 

Upon the issuance of any new Note under
this Section 2.09, the Company may require payment by the Holder of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

Every new Note issued pursuant to this Section
2.09 in lieu of any destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder.

 

The provisions of this Section 2.09 are
exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Notes.

 

    	23

    	 

    

  

Section
2.10         Persons Deemed Owners.

 

Subject to the rights of Holders as of the
Regular Record Date to receive payments of interest on the related Interest Payment Date, prior to due presentment of a Note for
registration of transfer, the Company, the Trustee, each Agent, and any of their respective agents may treat the Person in whose
name such Note is registered in the Register as the owner of such Note for the purpose of receiving payment of the principal of
such Note and for all other purposes whatsoever, whether or not such Note be overdue, and neither the Company, the Trustee, the
Agents nor any of their respective agents shall be affected by notice to the contrary.

 

Section
2.11         Transfer and Exchange.

 

(a)          Provisions
Applicable to All Transfers and Exchanges.

 

(i)          Subject
to the restrictions set forth in this Section 2.11, Physical Notes and beneficial interests in Global Notes may be transferred
or exchanged from time to time as desired, and each such transfer or exchange will be noted by the Registrar in the Register.

 

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

 

(iii)        No
service charge will be imposed on any Holder of a Physical Note or any owner of a beneficial interest in a Global Note for any
exchange or registration of transfer, but each of the Company, the Trustee or the Registrar may require such Holder or owner of
a beneficial interest to pay a sum sufficient to cover any transfer tax, assessment or other governmental charge imposed in connection
with such registration of transfer or exchange.

 

(iv)         Unless
the Company specifies otherwise, none of the Company, the Trustee, the Registrar or any co-Registrar will be required to exchange
or register a transfer of any Note (i) that has been surrendered for conversion, (ii) as to which a Fundamental Change
Purchase Notice has been delivered and not withdrawn or (iii) that has been selected for redemption in connection with a Redemption
Notice that has been delivered, except to the extent any portion of such Note is not subject to the foregoing.

 

(v)          Neither
the Trustee nor any Agent will have any obligation or duty to monitor, determine or inquire as to compliance with any restrictions
on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including
any transfers between or among Depositary participants or beneficial owners of interests in any Global Note) other than to require
delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly
required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express
requirements hereof.

 

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(b)          In
General; Transfer and Exchange of Beneficial Interests in Global Notes. So long as the Notes are eligible for book-entry
settlement with the Depositary, unless otherwise required by law or by Section 2.11(c):

 

(i)          all
Notes will be represented by one or more Global Notes;

 

(ii)         every
transfer and exchange of a beneficial interest in a Global Note will be effected through the Depositary in accordance with the
Applicable Procedures and the provisions of this Indenture (including the restrictions on transfer set forth in Section 2.07);
and

 

(iii)        each
Global Note may be transferred only as a whole and only (A) by the Depositary to a nominee of the Depositary, (B) by
a nominee of the Depositary to the Depositary or to another nominee of the Depositary or (C) by the Depositary or any such
nominee to a successor Depositary or a nominee of such successor Depositary.

 

(c)          Transfer
and Exchange of Global Notes for Physical Notes.

 

(i)          Notwithstanding
any other provision of this Indenture, each Global Note will be exchanged for Physical Notes if the Depositary delivers notice
to the Company that:

 

(A)         the
Depositary is unwilling or unable to continue to act as Depositary; or

 

(B)         the
Depositary is no longer registered as a clearing agency under the Exchange Act or is otherwise no longer permitted under applicable
law to continue as Depositary for such Global Note;

 

and, in each case, the Company promptly
delivers a copy of such notice to the Trustee and the Company fails to appoint a successor Depositary within 90 days after receiving
notice from the Depositary.

 

In each such case, the Company
will, in accordance with Section 2.04, promptly execute, and, upon receipt of a Company Order, the Trustee will, in accordance
with Section 2.04, promptly authenticate and deliver, for each beneficial interest in each Global Note so exchanged, an aggregate
principal amount of Physical Notes equal to the aggregate principal amount of such beneficial interest, registered in such names
and in such authorized denominations as the Depositary specifies, and bearing any legends that such Physical Notes are required
to bear under Section 2.07.

 

(ii)         In
addition, if an Event of Default has occurred with regard to the Notes represented by the relevant Global Note and such Event of
Default has not been cured or waived, any owner of a beneficial interest in a Global Note may deliver a written request through
the Depositary to exchange such beneficial interest for Physical Notes.

 

    	25

    	 

    

  

In such case, (A) the Registrar
will deliver notice of such request to the Company and the Trustee, which notice will identify the aggregate principal amount of
such beneficial interest and the CUSIP of the relevant Global Note; (B) the Company will, in accordance with Section 2.04,
promptly execute, and, upon receipt of a Company Order, the Trustee, in accordance with Section 2.04, will promptly authenticate
and deliver, to such owner, for the beneficial interest so exchanged by such owner, Physical Notes registered in such owner’s
name having an aggregate principal amount equal to the aggregate principal amount of such beneficial interest as the Depositary
specifies, and bearing any legends that such Physical Notes are required to bear under Section 2.07; and (C) the Trustee,
in accordance with the Applicable Procedures, will cause the principal amount of such Global Note to be decreased by the aggregate
principal amount of the beneficial interest so exchanged. If all of the beneficial interests in a Global Note are so exchanged,
such Global Note will be deemed surrendered to the Trustee for cancellation, and the Trustee will cause such Global Note to be
cancelled in accordance with the Trustee's customary procedures and the Applicable Procedures.

 

(d)          Transfer
and Exchange of Physical Notes.

 

(i)          If
Physical Notes are issued, a Holder may transfer a Physical Note by: (A) surrendering such Physical Note for registration
of transfer to the Registrar, together with any endorsements or instruments of transfer required by any of the Company, the Trustee
or the Registrar; (B) if such Physical Note is a Restricted Note, delivering any documentation required by Section 2.07;
and (C) satisfying all other requirements for such transfer set forth in this Section 2.11 and Section 2.07. Upon
the satisfaction of conditions (A), (B) and (C) of the immediately preceding sentence, the Company, in accordance with Section 2.04,
will promptly execute and deliver to the Trustee, and the Trustee, upon receipt of a Company Order, will, in accordance with Section 2.04,
promptly authenticate and deliver, in the name of the designated transferee or transferees, one or more new Physical Notes, of
any authorized denomination, having like aggregate principal amount and bearing any restrictive legends that such Physical Notes
are required to bear under Section 2.07.

 

(ii)         If
Physical Notes are issued, a Holder may exchange a Physical Note for other Physical Notes of any authorized denominations and aggregate
principal amount equal to the aggregate principal amount of the Notes to be exchanged by surrendering such Notes, together with
any endorsements or instruments of transfer required by any of the Company, the Trustee or the Registrar, at any office or agency
maintained by the Company for such purposes pursuant to Section 5.02. Whenever a Holder surrenders Notes for exchange, the Company,
in accordance with Section 2.04, will promptly execute and deliver to the Trustee, and the Trustee, upon receipt of a Company
Order and in accordance with Section 2.04, will promptly authenticate and deliver the Notes that such Holder is entitled to
receive, bearing registration numbers not contemporaneously outstanding and any legends that such Physical Notes are required to
bear under Section 2.07.

 

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(iii)        If
Physical Notes are issued, a Holder may transfer or exchange a Physical Note for a beneficial interest in a Global Security by
(A) surrendering such Physical Note for registration of transfer or exchange, together with any endorsements or instruments
of transfer required by any of the Company, the Trustee or the Registrar, at any office or agency maintained by the Company for
such purposes pursuant to Section 5.02; (B) if such Physical Note is a Restricted Note, delivering any documentation required
by Section 2.07; (C) satisfying all other requirements for such transfer set forth in this Section 2.11 and Section 2.07;
and (D) providing written instructions to the Trustee to make, or to direct the Registrar to make, an adjustment in its books
and records with respect to the applicable Global Note to reflect an increase in the aggregate principal amount of the Notes represented
by such Global Note, which instructions will contain information regarding the Depositary account to be credited with such increase.
Upon the satisfaction of conditions (A), (B), (C) and (D), the Trustee will cancel such Physical Note in accordance with its customary
procedures and cause, in accordance with the Applicable Procedures, the aggregate principal amount of Notes represented by such
Global Note to be increased by the aggregate principal amount of such Physical Note, and will credit or cause to be credited the
account of the Person specified in the instructions provided by the exchanging Holder in an amount equal to the aggregate principal
amount of such Physical Note. If no Global Notes are then Outstanding, the Company, in accordance with Section 2.04, will
promptly execute and deliver to the Trustee, and the Trustee, upon receipt of a Company Order and in accordance with Section 2.04,
will authenticate, a new Global Note in the appropriate aggregate principal amount.

 

Section
2.12         Purchase of Notes; Cancellation.

 

The Company may, to the extent permitted
by law, and directly or indirectly (regardless of whether such Notes are surrendered to the Company), purchase Notes in the open
market or by tender offer at any price or by private agreement. The Company will cause any Notes so purchased (other than Notes
purchased pursuant to cash-settled swaps or other cash-settled derivatives) to be surrendered to the Trustee for cancellation.
For the avoidance of doubt, any such Notes purchased by the Company will be retired and no longer Outstanding hereunder.

 

The Company shall deliver to the Trustee
for cancellation any Notes previously authenticated and delivered hereunder that the Company may have acquired in any manner whatsoever,
and may deliver to the Trustee for cancellation any Notes previously authenticated hereunder which the Company has not issued and
sold. The Trustee shall promptly cancel all Notes surrendered for registration of transfer, exchange, payment, purchase, repurchase,
redemption, conversion or cancellation in accordance with its customary procedures and the Applicable Procedures (if applicable).
If the Company shall acquire any of the Notes in any manner whatsoever, such acquisition shall not operate as a redemption or satisfaction
of the indebtedness represented by such Notes unless and until the same are delivered to the Trustee for cancellation. The Notes
so acquired, while held by or on behalf of the Company or any of its Subsidiaries, shall not entitle the Holder thereof to convert
the Notes. The Company may not issue new Notes to replace Notes it has paid in full or delivered to the Trustee for cancellation. 

 

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The Registrar shall retain, in accordance
with its customary procedures, copies of all letters, notices and other written communications received pursuant to this Section
2.12. The Company shall have the right to inspect and make copies of all such letters, notices or other written communications
at any reasonable time upon the giving of reasonable written notice to the Registrar.

 

Section
2.13         CUSIP Numbers.

 

In issuing the Notes, the Company may use
“CUSIP” numbers (if then generally in use); provided that the Trustee shall have no liability for any defect
in the CUSIP numbers as they appear on any Notes, notice, or elsewhere. The Company will promptly notify the Trustee in writing
of any change in the “CUSIP” numbers.

 

Section
2.14         Payment and Computation of Interest.

 

The Notes will bear cash interest at a rate
of 3.75% per year until the Maturity Date, unless earlier purchased, converted or redeemed in accordance with the provisions herein.
Interest on the Notes will accrue from the most recent date on which interest has been paid or duly provided for or, if no interest
has been paid or duly provided for, (x) in the case of the Initial Notes, December 16, 2014 or (y) in the case of any other Notes,
the date of original issuance of such Notes. Interest will be paid to the Person in whose name a Note is registered at the Close
of Business on the Regular Record Date immediately preceding the relevant Interest Payment Date semiannually in arrears on each
Interest Payment Date; provided that, if any Interest Payment Date, Maturity Date, Redemption Date or Fundamental Change
Purchase Date of a Note falls on a day that is not a Business Day, the required payment will be made on the next succeeding Business
Day and no interest on such payment will accrue in respect of the delay. Interest on the Notes shall be computed on the basis of
a 360-day year consisting of twelve 30-day months; provided, however, that for any period in which a particular interest
rate is applicable for less than a full semiannual period, interest on the Notes will be computed on the basis of a 30-day month
and, for periods of less than a month, the actual number of days elapsed over a 30-day month.

 

Unless the context otherwise requires, payments
of the Fundamental Change Purchase Price, Redemption Price, principal and interest on any Note, in each case, that are not made
when due will accrue interest per annum at the then-applicable interest rate from the required payment date.

 

The Company will pay Additional Interest
under certain circumstances as provided in Section 5.08 and 6.03.

 

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ARTICLE
3.

REPURCHASE AT THE OPTION OF THE HOLDERS

 

Section
3.01         Purchase at Option of Holders upon a Fundamental Change.

 

If a Fundamental Change occurs, then each
Holder shall have the right, at such Holder’s option, to require the Company to purchase for cash all of such Holder’s
Notes, or any portion of such Holder’s Notes that is equal to $1,000, or an integral multiple of $1,000, on a date (the “Fundamental
Change Purchase Date”) specified by the Company that is not less than 20 or more than 35 Business Days after the occurrence
of such Fundamental Change, at a purchase price equal to 100% of the principal amount of the Notes to be purchased, plus accrued
and unpaid interest to but excluding the Fundamental Change Purchase Date (the “Fundamental Change Purchase Price”);
provided, however, that if the Fundamental Change Purchase Date is after a Regular Record Date and on or prior to
the Interest Payment Date to which it relates, the Company shall instead pay interest accrued to the Interest Payment Date to the
Holder of record of the Note as of the preceding Regular Record Date and the Fundamental Change Purchase Price shall then be equal
to 100% of the principal amount of the Note subject to purchase and will not include any accrued and unpaid interest. Notwithstanding
the foregoing, there shall be no purchase of any Notes pursuant to this Section 3.01 if the principal amount of the Notes
has been accelerated, and such acceleration has not been rescinded, on or prior to the Fundamental Change Purchase Date (except
in the case of an acceleration resulting from a Default by the Company in the payment of the Fundamental Change Purchase Price
with respect to such Notes). In the event the principal amount of the Notes is accelerated following delivery of a Fundamental
Change Company Notice (except in the case of an acceleration resulting from a Default by the Company in the payment of the Fundamental
Change Purchase Price with respect to such Notes), the Trustee will promptly (i) return to the respective Holders thereof any Physical
Notes tendered to it or (ii) effect appropriate book-entry transfers to the respective beneficial holders thereof any beneficial
interests in a Global Note tendered to it in compliance with the Applicable Procedures, in which case, upon such return or transfer,
as the case may be, the Fundamental Change Purchase Notice with respect thereto shall be deemed to have been withdrawn.

 

Section
3.02         Fundamental Change Company Notice.

 

(a)          General.
On or before the 5th Business Day after the occurrence of a Fundamental Change, the Company shall provide to all Holders of the
Notes, the Trustee and the Paying Agent (in the case of any Paying Agent other than the Trustee) a written notice (the “Fundamental
Change Company Notice”) of the occurrence of such Fundamental Change and of the purchase right at the option of the Holders
arising as a result thereof. Such notice shall be sent to the Holders in accordance with Section 12.08(c) (with a copy to the Trustee).
Simultaneously with providing such Fundamental Change Company Notice, the Company shall issue a press release announcing the occurrence
of such Fundamental Change and make the press release available on the Company’s website. Each Fundamental Change Company
Notice shall specify:

 

(i)          the
events causing the Fundamental Change;

 

(ii)         the
Effective Date of the Fundamental Change, and whether the Fundamental Change is a Make-Whole Fundamental Change, in which case
the notice shall state the Effective Date of the Make-Whole Fundamental Change;

 

(iii)        information
about the Holder’s right to convert the Notes;

 

(iv)         information
about the Holder’s right to require the Company to purchase the Notes;

 

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(v)          the
last date on which a Holder of Notes may exercise the purchase right pursuant to Section 3.01;

 

(vi)         the
Fundamental Change Purchase Price;

 

(vii)        the
Fundamental Change Purchase Date;

 

(viii)      the
name and address of the Paying Agent and the Conversion Agent, if applicable;

 

(ix)         the
applicable Conversion Rate and any adjustments to the applicable Conversion Rate resulting from the Fundamental Change;

 

(x)          if
applicable, that the Notes with respect to which a Fundamental Change Purchase Notice has been delivered by a Holder may be converted
only if the Holder withdraws the Fundamental Change Purchase Notice in accordance with Section 3.05;

 

(xi)         the
procedures required for exercise of the purchase option upon the Fundamental Change, including that the Holder must exercise the
purchase option prior to the Fundamental Change Expiration Time; and

 

(xii)        that
the Holder shall have the right to withdraw any Notes surrendered for purchase prior to the Fundamental Change Expiration Time
and the procedures required for withdrawal of any such exercise as described in 3.05;

 

(b)          No
failure of the Company to give the foregoing notices and no defect therein shall limit the Holders’ repurchase rights or
affect the validity of the proceedings for the repurchase of the Notes pursuant to Section 3.01.

 

(c)          At
the Company’s written request, the Trustee shall give the Fundamental Change Company Notice in the Company’s name and
at the Company’s expense; provided, however, that, in all cases, the Fundamental Change Company Notice shall be prepared
by the Company; provided, further that the Company shall have delivered to the Trustee, at least three Business Days before
the Fundamental Change Company Notice is required to be given to the Holders (or such shorter period agreed to by the Trustee),
an Officer’s Certificate requesting that the Trustee give such notice and attaching the form of Fundamental Change Company
Notice and including the information required by Section 3.02(a). Neither the Trustee nor the Paying Agent shall be responsible
for determining if a Fundamental Change has occurred or for delivering a Fundamental Change Company Notice to Holders or for the
content of any Fundamental Change Company Notice.

 

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Section
3.03         Repurchase Procedures.

 

(a)          Purchases
of Notes under Section 3.01 shall be made, at the option of the Holder thereof, upon:

 

(i)          if
the Notes to be purchased are Physical Notes, delivery to the Trustee by the Holder of a duly completed notice in the Form of Fundamental
Change Purchase Notice (the “Fundamental Change Purchase Notice”) together with the Physical Notes duly endorsed
for transfer, at any time prior to the Close of Business on the Business Day immediately preceding the Fundamental Change Purchase
Date, (the “Fundamental Change Expiration Time”); and

 

(ii)         if
the Notes to be purchased are Global Notes, delivery to the Trustee of the beneficial interest in such Global Notes, by book-entry
transfer, in compliance with the Applicable Procedures and the satisfaction of any other requirements of the Depositary in connection
with tendering beneficial interests in a Global Note for purchase by the Fundamental Change Expiration Time.

 

The Fundamental Change Purchase Notice in
respect of any Notes to be purchased shall state:

 

(i)          if
certificated, the certificate numbers of such Holder’s Notes;

 

(ii)         the
portion of the principal amount of such Notes to be purchased, which must be such that the principal amount not purchased equals
$1,000 or an integral multiple of $1,000; and

 

(iii)        that
such Notes are to be purchased by the Company pursuant to the applicable provisions of the Notes and this Indenture.

 

(b)          Notice
to Company. The Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental Change Purchase Notice
or written notice of withdrawal thereof.

 

Section
3.04         Effect of Fundamental Change Purchase Notice.

 

Upon receipt by the Paying Agent of Physical
Notes and a Fundamental Change Purchase Notice or beneficial interests in a Global Note by book-entry transfer as specified in
Section 3.03, the Holder of the tendered Note shall (unless such Fundamental Change Purchase Notice is withdrawn in accordance
with Section 3.05) thereafter be entitled to receive solely the Fundamental Change Purchase Price, in cash with respect to
such Note (and any previously accrued and unpaid interest on such Note, if applicable). Such Fundamental Change Purchase Price
shall be paid to such Holder, provided that the conditions in this Article 3 have been satisfied (including, without limitation,
the proper delivery or book-entry transfer of such Note as required under Section 3.03(a)) and subject to the Paying Agent holding
money sufficient to pay the Fundamental Change Purchase Price, promptly following the later of the applicable Fundamental Change
Purchase Date and the time of delivery or book-entry transfer of such Note to the Paying Agent by the Holder thereof in the manner
required by Section 3.03(a).

 

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Section
3.05         Withdrawal of Fundamental Change Purchase Notice.

 

A Fundamental Change Purchase Notice may
be withdrawn (in whole or in part) by means of a written notice of withdrawal delivered to the Paying Agent in accordance with
the Fundamental Change Company Notice, as applicable, at any time prior to the Fundamental Change Expiration Time, as applicable,
specifying:

 

(a)          the
principal amount of the Notes with respect to which such notice of withdrawal is being submitted;

 

(b)          if
certificated, the certificate numbers of the withdrawn Notes; and

 

(c)          the
principal amount, if any, of each Note that remains subject to the Fundamental Change Purchase Notice, which must be such that
the principal amount of such Holder’s Notes not purchased equals $1,000 or an integral multiple of $1,000;

 

provided, however, that if the Notes are Global
Notes, the notice must comply with the Applicable Procedures.

 

The Paying Agent will promptly return to
the respective Holders thereof any Physical Notes with respect to which a Fundamental Change Purchase Notice has been withdrawn
in compliance with the provisions of Sections 3.05 or 3.07, as applicable.

 

Section
3.06         Deposit of Fundamental Change Purchase Price.

 

Prior to 11:00 a.m., New York City time,
on the Fundamental Change Purchase Date, the Company shall deposit with the Paying Agent (or, if the Company or a Subsidiary or
an Affiliate of either of them is acting as the Paying Agent, shall segregate and hold in trust as provided herein) an amount of
money (in immediately available funds if deposited on such Business Day) sufficient to pay the Fundamental Change Purchase Price
of all the Notes or portions thereof that are to be purchased as of the Fundamental Change Purchase Date. If the Paying Agent holds
money sufficient to pay the Fundamental Change Purchase Price of the tendered Notes on the Fundamental Change Purchase Date, then
(a) such tendered Notes will cease to be Outstanding and (except as provided below in clause (b)) interest will cease to accrue
thereon (whether or not book-entry transfer of the Notes is made or whether or not the Notes are delivered to the Paying Agent)
and (b) all other rights of the Holders of such tendered Notes will terminate (other than (x) the right to receive the Fundamental
Change Purchase Price and (y) the right of the Holder of record on such Regular Record Date to receive any interest payment pursuant
to Section 3.01, if applicable).

 

Section
3.07         Notes Purchased in Whole or in Part.

 

Any Note that is to be purchased pursuant
to this Article 3, whether in whole or in part, shall be surrendered at the office of the Paying Agent (with due endorsement
by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof
or such Holder’s attorney duly authorized in writing) and, to the extent that only a part of the Note so surrendered is to
be purchased, the Company shall execute and, upon receipt of a Company Order, the Trustee shall authenticate and deliver to the
Holder of such Note, without service charge, a new Note or Notes, of any authorized denomination as requested by such Holder in
aggregate principal amount equal to, and in exchange for, the portion of the principal amount of the Note so surrendered that is
not purchased.

 

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Section
3.08         Covenant To Comply with Applicable Laws upon Purchase of Notes.

 

In connection with any purchase of Notes
under Section 3.01, the Company shall, in each case if required by law, (i) comply with the provisions of Rule 13e-4,
Rule 14e-1 and any other tender offer rules under the Exchange Act to the extent any such rules are applicable, (ii) file
a Schedule TO or any successor or similar schedule, if required, under the Exchange Act and (iii) otherwise comply with all
U.S. federal or state securities laws applicable to the Company in connection with offer by the Company to purchase Notes under
Section 3.01, in each case, so as to permit the rights and obligations under this Article 3 to be exercised in the time and
in the manner specified under this Article 3.

 

Section
3.09         Repayment to the Company.

 

To the extent that the aggregate amount
of money deposited by the Company pursuant to Section 3.06 exceeds the aggregate Fundamental Change Purchase Price of the
Notes or portions thereof that the Company is obligated to purchase as of the Fundamental Change Purchase Date, then, following
the Fundamental Change Purchase Date, the Paying Agent shall, upon demand of the Company, promptly return any such excess to the
Company.

 

ARTICLE
4.

CONVERSION

 

Section
4.01         Right To Convert.

 

(a)          Subject
to and upon compliance with the provisions of this Indenture, each Holder shall have the right, at such Holder’s option,
to convert all or any portion of its Notes at an initial Conversion Rate of 88.5716 shares of Common Stock per $1,000 aggregate
principal amount of Notes (equivalent to an initial Conversion Price of approximately $11.29 per share of Common Stock) into the
Settlement Amount determined in accordance with Section 4.03(a)(iii), (x) prior to the Close of Business on the Business Day
immediately preceding September 15, 2019, only upon satisfaction of one or more of the conditions described in Section 4.01(b),
and (y) on or after September 15, 2019, at any time until the Close of Business on the Business Day immediately preceding
the stated Maturity Date regardless of whether the conditions described in Section 4.01(b) are satisfied.

 

(b)          (i) 
A Holder may surrender all or any portion of its Notes for conversion during any calendar quarter commencing after the quarter
ending March 31, 2015 if the Closing Sale Price of the Common Stock for at least 20 Trading Days (whether or not consecutive) during
the period of 30 consecutive Trading Days ending on the last Trading Day of the calendar quarter immediately preceding the calendar
quarter in which the conversion occurs, is more than 130% of the applicable Conversion Price in effect on each applicable Trading
Day. Neither the Trustee nor the Conversion Agent shall have any obligation (x) to determine whether the condition described in
this Section 4.01(b)(i) has been met or (y) to verify the Company’s determination regarding such condition.

 

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(ii)          If,
prior to the Close of Business on the Business Day immediately preceding September 15, 2019, the Trading Price per $1,000 principal
amount of Notes on each Trading Day during any five consecutive Trading-Day period (the “Measurement Period”)
is less than 98% of the product of (x) the Closing Sale Price of the Common Stock on such date and (y) the Conversion
Rate in effect on such Trading Day, a Holder may surrender Notes for conversion at any time during the ten consecutive Trading
Days following such Measurement Period. The Company shall determine whether the condition to conversion set forth in this Section 4.01(b)(ii)
has been met, and the Company shall notify the Holders, the Trustee and the Conversion Agent (if other than the Trustee) in writing
accordingly. Upon written request of the Company, the Bid Solicitation Agent shall determine the Trading Price pursuant to this
Section 4.01(b)(ii) and the definition of “Trading Price” set forth in Section 1.01. The Company shall provide
written notice to the Bid Solicitation Agent (if other than the Company) of the three independent nationally recognized securities
dealers selected by the Company in accordance with the definition of Trading Price, along with the appropriate contact information
for each, and shall instruct such securities dealers to provide bid quotations upon the request of the Bid Solicitation Agent.
However, the Bid Solicitation Agent (if other than the Company) shall have no obligation to solicit market bid quotations for the
Company to determine the Trading Price of the Notes unless the Company has requested such solicitation in writing; and the Company
shall have no obligation to make such request (or, if the Company is the Bid Solicitation Agent, to determine the Trading Price
of the Notes) unless a Holder of a Note provides it and the Trustee with reasonable evidence that the Trading Price per $1,000
principal amount of Notes would be less than 98% of the product of (x) the Closing Sale Price of the Common Stock on such
Trading Day and (y) the Conversion Rate in effect on such Trading Day. At such time, the Company shall instruct the Bid Solicitation
Agent in writing to solicit market bid quotations for the Notes from three independent nationally recognized securities dealers
selected by the Company for the Company to determine (or, if the Company is the Bid Solicitation Agent, the Company shall determine)
the Trading Price per $1,000 principal amount of the Notes beginning on such Trading Day and on each successive Trading Day until
the Trading Price per $1,000 principal amount of Notes for a Trading Day is greater than or equal to 98% of the product of (x) the
Closing Sale Price of the Common Stock on such Trading Day and (y) the Conversion Rate in effect on such Trading Day. If,
on any Trading Day after the condition to conversion set forth in this Section 4.01(b)(ii) has been met, the Trading Price
per $1,000 principal amount of Notes is greater than or equal to 98% of the product of (x) the Closing Sale Price of the Common
Stock on such Trading Day and (y) the Conversion Rate in effect on such Trading Day, the Company shall so notify the Holders,
the Trustee, the Bid Solicitation Agent and the Conversion Agent (if other than the Trustee) in writing.

 

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(iii)        If
the Company elects to issue or distribute, as the case may be, to all or substantially all holders of the Common Stock (x) any
rights, options or warrants entitling them to subscribe for or purchase, for a period expiring within 45 calendar days after the
declaration date for such issuance, shares of the Common Stock, at a price per share that is less than the average of the Closing
Sale Prices of the Common Stock for the 10 consecutive Trading-Day period ending on, and including, the Trading Day immediately
preceding the declaration date for such issuance; or (y) cash, debt securities (or other evidence of indebtedness) or other
assets or securities (excluding dividends or distributions in respect of which an adjustment to the Conversion Rate is made pursuant
to Section 4.04(a)), which distribution has a per share value exceeding 10% of the Closing Sale Price of the Common Stock as of
the Trading Day immediately preceding the declaration date for such distribution, then, in either case, the Company must deliver
notice of such distribution, and of the Ex-Dividend Date for such distribution, to the Holders at least 50 Scheduled Trading Days
prior to the Ex-Dividend Date for such distribution. After the Company has delivered such notice, Holders may surrender their Notes
for conversion at any time until the earlier of (a) Close of Business on the Business Day immediately preceding such Ex-Dividend
Date and (b) the Company’s announcement that such issuance or distribution will not take place. Neither the Trustee
nor the Conversion Agent shall have any obligation (I) to determine whether the condition described in this Section 4.01(b)(iii)
has occurred or (II) to verify the Company’s determination regarding such condition.

 

(iv)        If a
transaction or event that constitutes a Fundamental Change or a Make-Whole Fundamental Change occurs prior to the Close of Business
on the Business Day immediately preceding September 15, 2019, a holder may surrender Notes for conversion at any time from and
after the date that is 50 Scheduled Trading Days prior to the anticipated effective date of the transaction or event until the
Close of Business on (1) if such transaction or event is a Fundamental Change, the Business Day immediately preceding the
related Fundamental Change Purchase Date, or (2) otherwise, on the 40th Scheduled Trading Day immediately following the effective
date for such transaction or event. To the extent practicable, the Company shall give notice to Holders of the anticipated effective
date for such transaction or event not more than 70 Scheduled Trading Days nor less than 50 Scheduled Trading Days prior to
the anticipated effective date or, if the Company does not have knowledge of such transaction or event at least 50 Scheduled Trading
Days prior to the anticipated effective date, within two Business Days of the date upon which the Company receives notice, or otherwise
becomes aware of such transaction or event (but in no event later than the actual effective date of such transaction or event).
Neither the Trustee nor the Conversion Agent shall have any obligation (x) to determine whether the condition described in this
Section 4.01(b)(iv) has occurred or (y) to verify the Company’s determination regarding such condition.

 

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(v)         Holders
will have the right to surrender Notes for conversion if the Company is a party to a consolidation, merger or binding share exchange
or a sale, assignment, conveyance, transfer, lease or other disposition of all or substantially all of the Company’s property
and assets that does not also constitute a Fundamental Change, in each case pursuant to which the Common Stock would be converted
into cash, securities or other property. In such event, Holders will have the right to surrender Notes for conversion at any time
from and including the 50th Scheduled Trading Day prior to the anticipated effective date of such transaction to, and including,
the 40th Scheduled Trading Day following the effective date of such transaction. The Company shall notify Holders at least 50 Scheduled
Trading Days prior to the anticipated effective date of such transaction. Neither the Trustee nor the Conversion Agent shall have
any obligation (x) to determine whether the condition described in this Section 4.01(b)(v) has occurred or (y) to verify the Company’s
determination regarding such condition.

 

(vi)        If
the Company calls all or a portion of the Notes for redemption pursuant to Article 10, a Holder of Notes (whether or not the Notes
owned by such Holder are subject to redemption) may convert such Notes at any time after, and including, the Redemption Notice
Date and until the Close of Business on the Business Day immediately preceding the Redemption Date (or, if the Company fails to
pay the Redemption Price on such Redemption Date, the date on which payment of the applicable Redemption Price is made). Neither
the Trustee nor the Conversion Agent shall have any obligation (x) to determine whether the condition described in this Section
4.01(b)(vi) has occurred or (y) to verify the Company’s determination regarding such condition.

 

(c)          If
any of the conditions to conversion described under Sections 4.01(b)(i) through (b)(vi) are satisfied, the Company will so notify
Holders, the Trustee and the Conversion Agent (if other than the Trustee) and issue a press release containing the relevant information
(and make the press release available on the Company’s website) by the Close of Business on the first Business Day on which
the Notes have become convertible as a result thereof.

 

Section
4.02         Conversion Procedures.

 

(a)          Each
Physical Note shall be convertible at the office of the Conversion Agent and, if applicable, in accordance with the Applicable
Procedures.

 

(b)          To
exercise the conversion privilege with respect to a beneficial interest in a Global Note, the Holder must comply with the Applicable
Procedures for converting, and effecting a book-entry transfer to the Conversion Agent of, a beneficial interest on a Global Note
and pay the funds, if any, required by Section 4.02(f) and any taxes or duties if required pursuant to Section 4.02(g),
and the Conversion Agent must be informed of the conversion in accordance with the customary practice of the Depositary.

 

To exercise the conversion privilege with
respect to any Physical Notes, the Holder of such Physical Notes shall:

 

(i)          duly
sign and complete a conversion notice in the form set forth in the Form of Notice of Conversion (the “Conversion Notice”)
or a facsimile of the Conversion Notice;

 

    	36

    	 

    

  

(ii)         deliver
the Conversion Notice, which is irrevocable, and the Note to the Conversion Agent;

 

(iii)        if
required, furnish appropriate endorsements and transfer documents;

 

(iv)        if
required, pay all transfer or similar taxes as set forth in Section 4.02(g); and

 

(v)         if
required, make any payment required under Section 4.02(f).

 

If, upon conversion of a Note, any shares
of Common Stock are to be issued to a Person other than the Holder of such Note, the related Conversion Notice shall include such
other Person’s name and address.

 

If a Note has been submitted for repurchase
pursuant to a Fundamental Change Purchase Notice, such Note may not be converted except to the extent such Note has been withdrawn
by the Holder and is no longer submitted for repurchase pursuant to a Fundamental Change Purchase Notice or unless such Fundamental
Change Purchase Notice is withdrawn in accordance with Section 3.07 prior to the relevant Fundamental Change Expiration Time.

 

For any Note, the date on which the Holder
of such Note satisfies all of the applicable requirements set forth above with respect to such Note shall be the “Conversion
Date” with respect to such Note.

 

Each conversion shall be deemed to have
been effected as to any such Notes (or portion thereof) surrendered for conversion immediately prior to the Close of Business on
the applicable Conversion Date; provided, however, that except to the extent required by Section 4.04, the person
in whose name any shares of Common Stock shall be issuable upon conversion, if any, shall be treated as a stockholder of record
(i) as of the Close of Business on the last VWAP Trading Day of the applicable Conversion Period in a Combination Settlement
and (ii) as of the Close of Business on the Conversion Date in a Physical Settlement. For the avoidance of doubt, subject
to the satisfaction by the Company of each of its obligations in connection with such conversion and any other conditions set forth
in this Indenture, at the Close of Business on the Conversion Date for such conversion, the converting Holder shall no longer be
the Holder of the Notes so converted.

 

(c)          Endorsement.
Any Notes surrendered for conversion shall, unless shares of Common Stock issuable on conversion are to be issued in the same name
as the registration of such Notes, be duly endorsed by, or be accompanied by instruments of transfer in form satisfactory to the
Company duly executed by, the Holder or its duly authorized attorney.

 

(d)          Physical
Notes. If any Physical Notes in a denomination greater than $1,000 shall be surrendered for partial conversion, the Company
shall execute and the Trustee shall authenticate and deliver to the Holder of the Physical Notes so surrendered, without charge,
new Physical Notes in authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered
Physical Notes.

 

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(e)          Global
Notes. Upon the conversion of a beneficial interest in Global Notes, the Conversion Agent shall make a notation in its records
as to the reduction in the principal amount represented thereby. The Company shall notify the Trustee in writing of any conversions
of Notes effected through any Conversion Agent other than the Trustee.

 

(f)          Interest
Due Upon Conversion. If a Holder converts a Note after the Close of Business on a Regular Record Date but prior to the Open
of Business on the Interest Payment Date corresponding to such Regular Record Date, such Holder must accompany such Note with an
amount of cash equal to the amount of interest that will payable on such Note on the corresponding Interest Payment Date; provided,
however, that a Holder need not make such payment (1) if the Conversion Date follows the Regular Record Date immediately
preceding the Maturity Date; (2) if the Company has specified a Fundamental Change Purchase Date that is after a Regular Record
Date and on or prior to the corresponding Interest Payment Date; (3) if the Company has specified a Redemption Date that is after
a Regular Record Date and on or prior to the third Scheduled Trading Day following the corresponding Interest Payment Date; or
(4) to the extent of any overdue interest, if any overdue interest exists at the time of conversion with respect to such Note.

 

(g)          Taxes
Due upon Conversion. If a Holder converts a Note, the Company will pay any documentary, stamp or similar issue or transfer
tax due on the issue of any shares of the Common Stock upon the conversion, unless the tax is due because the Holder requests that
any shares be issued in a name other than the Holder’s name, in which case the Holder will pay that tax.

 

Section
4.03         Settlement Upon Conversion.

 

(a)          Settlement.
Subject to this Section 4.03 and Sections 4.06 and 4.07, if the Company has received both Stockholders Approvals prior to
the relevant Settlement Method Election Date, upon conversion of any Note, the Company shall pay or deliver, as the case may be,
to Holders, in full satisfaction of its conversion obligation under Section 4.01, in respect of each $1,000 principal amount
of Notes being converted, a Settlement Amount consisting of, at the election of the Company in accordance with the requirements
specified herein, solely cash (“Cash Settlement”), solely shares of Common Stock (together with cash in lieu
of any fractional share of Common Stock pursuant to Section 4.03(b)) (“Physical Settlement”) or a combination
of cash and shares of Common Stock (“Combination Settlement”).

 

    	38

    	 

    

  

(i)          Settlement
Election. If the Company has received both Stockholders Approvals prior to the relevant Settlement Method Election Date, all
conversions occurring on or after September 15, 2019 shall be settled in either (i) a Cash Settlement, (ii) a Physical Settlement
or (iii) a Combination Settlement with a particular Specified Dollar Amount. Prior to September 15, 2019, the Company will use
the same Settlement Method for all conversions occurring on the same Conversion Date, but the Company shall not have any obligation
to use the same Settlement Method with respect to conversions that occur on different Conversion Dates, subject to the limitations
set forth in Section 4.03(a)(ii) if the Company has not received both Stockholders Approvals prior to the relevant Settlement Method
Election Date. If the Company elects a Settlement Method (a “Settlement Election”) and a Specified Dollar Amount,
if applicable (a “Specified Dollar Amount Election”), the Company shall provide to the Holders so converting
through the Trustee a notice of such Settlement Method (each such notice, a “Settlement Election Notice”) or
such Specified Dollar Amount (each such notice, a “Specified Dollar Amount Election Notice”), (x) no later than
the Close of Business on the second VWAP Trading Day immediately following the related Conversion Date or (y) in the case of any
conversions occurring on or after September 15, 2019, no later than September 15, 2019 (in either case, the “Settlement
Method Election Date”). In the event that the Company has received both Stockholders Approvals prior to the relevant
Settlement Method Election Date, if the Company does not elect a Settlement Method on or prior to the relevant Settlement Method
Election Date, the Company shall no longer have the right to elect Cash Settlement or Physical Settlement, and the Company shall
be deemed to have elected Combination Settlement in respect of its Conversion Obligation, and the Specified Dollar Amount per $1,000
principal amount of Notes converted shall be deemed to be $1,000. If the Company has received both Stockholders Approvals prior
to the relevant Settlement Method Election Date, and the Company elects Combination Settlement but does not notify converting Holders
of the Specified Dollar Amount per $1,000 principal amount of Notes on or prior to the relevant Settlement Method Election Date,
such Specified Dollar Amount will be deemed to be $1,000.

 

In addition, if the Company has
received both Stockholders Approvals prior to the relevant Settlement Method Election Date, the Company may, prior to September
15, 2019, at its option, irrevocably elect Combination Settlement with a particular Specified Dollar Amount for all conversions
subsequent to its notice to Holders thereof by notice of such election to Holders, the Trustee and the Conversion Agent.

 

(ii)         Notwithstanding
anything to the contrary in the Notes or this Indenture, the Company shall not be permitted to elect Physical Settlement or Combination
Settlement with respect to any conversion of Notes and Cash Settlement shall be deemed to apply to such conversion unless prior
to the relevant Settlement Method Election Date the Company has received both Stockholders Approvals; provided that with
respect to any Conversion Date occurring prior to September 15, 2019, the Company may elect Physical Settlement for all Notes converted
on such Conversion Date only if:

 

(A)         the
aggregate number of shares of Common Stock deliverable upon conversion of such Notes as if Physical Settlement applied to all such
Notes (including, for the avoidance of doubt, any Additional Shares) is less than:

 

    	39

    	 

    

  

(1)         the
lesser of (x) the Aggregate NYSE Share Cap and (y) the Aggregate Available Share Cap; minus

 

(2)         the
aggregate number of shares of Common Stock delivered or deliverable, in each case, upon previous conversions of Notes; and

 

(B)         the
Company informs converting Holders, the Conversion Agent and the Trustee that the Company has elected Physical Settlement for such
Notes no later than the Close of Business on the second VWAP Trading Day immediately following the Conversion Date for such Notes.

 

The Company shall promptly notify
Holders, the Trustee and the Conversion Agent by press release upon obtaining any of the Stockholders Approvals.

 

(iii)        Settlement
Amount. The cash, shares of Common Stock or combination of cash and shares of Common Stock in respect of any conversion of
Notes (the “Settlement Amount”) shall be computed as follows:

 

(A)         if
the Company elects Physical Settlement, the Company shall deliver to the converting Holder, in respect of each $1,000 principal
amount of its Notes being converted, a number of shares of Common Stock equal to the applicable Conversion Rate, together with
cash in lieu of any fractional shares of Common Stock pursuant to Section 4.03(b);

 

(B)         if
the Company elects (or is deemed to have elected) Cash Settlement, the Company shall pay to the converting Holder, in respect of
each $1,000 principal amount of its Notes being converted, cash in an amount equal to the sum of the Daily Conversion Values for
each of the 40 consecutive VWAP Trading Days during the related Conversion Period; and

 

(C)         if
the Company elects (or is deemed to have elected) Combination Settlement, the Company shall pay or deliver, as the case may be,
to the converting Holder, in respect of each $1,000 principal amount of its Notes being converted, an amount of cash and number
of shares of Common Stock, if any, equal to the sum of the Daily Settlement Amounts for each of the 40 consecutive VWAP Trading
Days during the related Conversion Period.

 

    	40

    	 

    

  

(iv)        Delivery
Obligation. The Settlement Amounts upon conversion of the Notes will be paid or delivered, as the case may be, by the Company
through the Conversion Agent. The Company shall pay or deliver, as the case may be, the Settlement Amount due in respect of its
conversion obligation under this Section 4.03, (i) on the third Business Day immediately following the relevant Conversion
Date, if the Company elects Physical Settlement and (ii) on the third Business Day immediately following the last VWAP Trading
Day of the related Conversion Period, in any other case; provided, however, that if prior to the Conversion Date
for any converted Notes, the Common Stock has been replaced by Reference Property consisting solely of cash, the Company will pay
the conversion consideration due in respect of such conversion on the third Trading Day immediately following the related Conversion
Date, and, notwithstanding the foregoing in this Section 4.03, no Conversion Period will apply to those conversions. For the avoidance
of doubt, in the case of Cash Settlement or Combination Settlement, if a VWAP Market Disruption Event occurs on a Scheduled Trading
Day during the Conversion Period, or if such Scheduled Trading day is not a VWAP Trading Day for any other reason, then the Daily
Conversion Value or Daily Settlement Amount, as applicable, will be determined on the next following VWAP Trading Day, and delivery
of the Settlement Amount will be delayed accordingly. No interest will accrue on account of such delay.

 

(b)          Fractional
Shares. Notwithstanding the foregoing, the Company will not issue fractional shares of Common Stock as part of the Settlement
Amount due with respect to any converted Note. Instead, if any Settlement Amount includes a fraction of a share of the Common Stock,
the Company will, in lieu of delivering such fraction of a share of Common Stock, pay an amount of cash equal to the product of
such fraction of a share and (i) in a Physical Settlement, the Daily VWAP on the relevant Conversion Date, or if such Conversion
Date is not a VWAP Trading Day, the immediately preceding VWAP Trading Day or (ii) in the case of any other Settlement Method,
the Daily VWAP on the last VWAP Trading Day of the relevant Conversion Period.

 

(c)          Conversion
of Multiple Notes by a Single Holder. If a Holder surrenders more than one Note for conversion on a single Conversion Date,
the Company will calculate the amount of cash and the number of shares of Common Stock due with respect to such Notes as if such
Holder had surrendered for conversion one Note having an aggregate principal amount equal to the sum of the principal amounts of
each of the Notes surrendered for conversion by such Holder on such Conversion Date or, if the Notes surrendered for conversion
are beneficial interests in a Global Note, based on such other aggregate number of Notes, or beneficial interests therein, being
surrendered by the Holder for conversion on the same date as the Depositary may otherwise request.

 

(d)          Settlement
of Accrued Interest and Deemed Payment of Principal. If a Holder converts a Note, the Company will not adjust the Conversion
Rate to account for any accrued and unpaid interest on such Note, and the Company’s delivery or payment, as the case may
be, of cash, shares of Common Stock or a combination of cash and shares of Common Stock into which a Note is convertible will be
deemed to satisfy and discharge in full the Company’s obligation to pay the principal of, and accrued and unpaid interest,
if any, on, such Note to, but excluding, the Conversion Date; provided, however, that subject to Section 4.02(f),
if a Holder converts a Note after the Close of Business on a Regular Record Date and prior to the Open of Business on the corresponding
Interest Payment Date, the Company will still be obligated to pay the interest due on such Interest Payment Date to the Holder
of such Note on such Regular Record Date.

 

    	41

    	 

    

  

As a result, except as otherwise provided
in the proviso to the immediately preceding sentence, any accrued and unpaid interest with respect to a converted Note will be
deemed to be paid in full rather than cancelled, extinguished or forfeited. In addition, if the Settlement Amount for any Note
includes both cash and shares of Common Stock, accrued but unpaid interest will be deemed to be paid first out of the amount of
cash delivered upon such conversion.

 

(e)          Notices.
Whenever a Conversion Date occurs with respect to a Note, the Conversion Agent will, as promptly as possible, and in no event later
than the Business Day immediately following such Conversion Date, deliver to the Company and the Trustee, if it is not then the
Conversion Agent, notice that a Conversion Date has occurred, which notice will state such Conversion Date, the principal amount
of Notes converted on such Conversion Date and the names of the Holders that converted Notes on such Conversion Date.

 

On the first Business Day immediately
following the last VWAP Trading Day of the Conversion Period applicable to any Note surrendered for conversion in a Cash Settlement
or a Combination Settlement, the Company will deliver a written notice to the Conversion Agent and the Trustee (if not also the
Conversion Agent) stating the amount of cash and the number of shares of Common Stock, if any, that the Company is obligated to
pay or deliver, as the case may be, to satisfy its conversion obligation with respect to each Note converted on such Conversion
Date.

 

Section
4.04         Adjustment of Conversion Rate.

 

The Conversion Rate will be adjusted as
described in this Section 4.04, except that no adjustment to the Conversion Rate will be made for a given transaction if Holders
of the Notes will participate in that transaction, without conversion of the Notes, on the same terms and at the same time as a
holder of a number of shares of Common Stock equal to the principal amount of a Holder’s Notes divided by $1,000 and multiplied
by the Conversion Rate would participate.

 

(a)          If
the Company issues solely shares of Common Stock as a dividend or distribution on all or substantially all shares of the Common
Stock, or if the Company subdivides or combines the Common Stock, the Conversion Rate will be adjusted based on the following formula:

  

	CR1 = CR0 x	OS1
	OS0

 

where,

 

		CR0 =	the Conversion Rate in effect immediately prior to the
Open of Business on the Ex-Dividend Date of such dividend or distribution, or immediately prior to the Open of Business on the
effective date of such share split or combination, as applicable;

 

		CR1 =	the Conversion Rate in effect immediately after the Open
of Business on such Ex-Dividend Date of such dividend or distribution, or immediately after the Open of Business on the effective
date of such share split or combination, as applicable;

 

    	42

    	 

    

  

		OS0 =	the number of shares of Common Stock outstanding immediately
prior to the Open of Business on such Ex-Dividend Date of such dividend or distribution, or immediately prior to the Open of Business
on the effective date of such share split or combination, as applicable; and

 

		OS1 =	the number of shares of Common Stock outstanding immediately
after giving effect to such dividend or distribution, or immediately after the effective date of such subdivision or combination
of common stock, as the case may be.

 

Any adjustment made under this clause (a) will become
effective immediately after the Open of Business on the Ex-Dividend Date for such dividend or distribution (regardless of whether
the dividend or distribution date is scheduled to occur after the Maturity Date), or immediately after the Open of Business on
the effective date of such subdivision or combination of Common Stock, as the case may be. If such dividend, distribution, subdivision
or combination described in this clause (a) is declared but not so paid or made, the Conversion Rate shall be immediately readjusted,
effective as of the date the Board of Directors or a duly authorized committee thereof determines not to pay such dividend or distribution
or to effect such subdivision or combination, to the Conversion Rate that would then be in effect if such dividend or distribution
had not been declared or subdivision or combination had not been announced.

 

(b)          If
an Ex-Dividend Date occurs for a distribution to all or substantially all holders of the Common Stock any rights, options or warrants
entitling them, for a period of not more than 45 calendar days from the announcement date for such distribution, to subscribe for
or purchase shares of the Common Stock, at a price per share less than the average of the Closing Sale Prices of the Common Stock
for the 10 consecutive Trading-Day period ending on, and including, the Trading Day immediately preceding the announcement date
for such distribution, the Conversion Rate will be increased based on the following formula

 

	CR1 = CR0 x	
        OS0
        + X

	OS0 + Y

 

		CR0 =	the Conversion Rate in effect immediately prior to the
Open of Business on the Ex-Dividend Date for such distribution;

 

		CR1 =	the Conversion Rate in effect immediately after the Open
of Business on such Ex-Dividend Date for such distribution;

 

		OS0 =	the number of shares of Common Stock outstanding immediately
prior to the Open of Business on such Ex-Dividend Date for such distribution;

 

    	43

    	 

    

  

		X =	the total number of shares of Common Stock issuable pursuant
to such rights, options or warrants; and

 

		Y =	the number of shares of Common Stock equal to the aggregate
price payable to exercise such rights, options or warrants divided by the average of the Closing Sale Prices of the Common
Stock over the 10 consecutive Trading-Day period ending on, and including, the Trading Day immediately preceding the announcement
date for such distribution.

 

Any increase made under this clause (b) will be made
successively whenever any such rights, options or warrants are issued and will become effective immediately after the Open of Business
on the Ex-Dividend Date for such distribution, regardless of whether the distribution date is scheduled to occur after the Maturity
Date. To the extent that such rights, options or warrants expire prior to the Maturity Date and shares of Common Stock are not
delivered after the expiration of such rights, options or warrants, the Conversion Rate shall be decreased to the Conversion Rate
that would then be in effect had the increase with respect to the issuance of such rights, options or warrants been made on the
basis of delivery of only the number of shares of Common Stock actually delivered. If such rights, options or warrants were scheduled
to be distributed prior to the Maturity Date and are not so distributed, the Conversion Rate shall be decreased to the Conversion
Rate that would then be in effect if the Ex-Dividend Date for such distribution had not occurred.

 

For purposes of this Section 4.04(b) and Section 4.01(b)(iii)(x),
in determining whether any rights, options or warrants entitle the holders to subscribe for or purchase shares of Common Stock
at a price that is less than the average of the Closing Sale Prices of the Common Stock for each Trading Day in the applicable
10 consecutive Trading-Day period, there shall be taken into account any consideration the Company receives for such rights, options
or warrants and any amount payable on exercise thereof, with the value of such consideration, if other than cash, to be determined
in good faith by the Board of Directors or a duly authorized committee thereof.

 

(c)          If
an Ex-Dividend Date occurs for a distribution (the “Relevant Distribution”) of shares of the Company’s
Capital Stock, evidences of the Company’s indebtedness or other assets or property of the Company’s or rights, options
or warrants to acquire the Company’s Capital Stock or other securities, to all or substantially all holders of Common Stock
(excluding (i) dividends or distributions and rights, options or warrants as to which an adjustment was effected under clause (a)
or (b) above; (ii) dividends or distributions paid exclusively in cash; and (iii) Spin-Offs), then the Conversion Rate will be
increased based on the following formula:

  

    	44

    	 

    

  

	CR1 = CR0 x	
        SP0

	SP0 - FMV

 

where,

 

		CR0 =	the Conversion Rate in effect immediately prior to the
Open of Business on the Ex-Dividend Date for such distribution;

 

		CR1 =	the Conversion Rate in effect immediately after the Open
of Business on such Ex-Dividend Date for such distribution;

 

		SP0 =	the average of the Closing Sale Prices of the Common
Stock over the 10 consecutive Trading Day-period ending on, and including, the Trading Day immediately preceding the Ex-Dividend
Date for such distribution; and

 

		FMV =	the fair market value (as determined in good faith by
the Board of Directors or a duly authorized committee thereof) of the shares of Capital Stock, evidences of indebtedness, assets
or property or rights, options or warrants distributed with respect to each outstanding share of Common Stock as of the Open of
Business on the Ex-Dividend Date for such distribution.

 

Any increase made under the above portion of this
clause (c) will become effective immediately after the Open of Business on the Ex-Dividend Date for such distribution. No adjustment
pursuant to the above formula will result in a decrease of the Conversion Rate. However, if such distribution is scheduled to be
paid or made prior to the Maturity Date and is not so paid or made, the Conversion Rate shall be decreased to be the Conversion
Rate that would then be in effect if such distribution had not been declared. Notwithstanding the foregoing, if “FMV”
(as defined above) is equal to or greater than “SP0” (as defined above), in lieu of the foregoing increase,
each Holder of a Note shall receive, in respect of each $1,000 principal amount thereof, at the same time and upon the same terms
as holders of the Common Stock, without having to convert its Notes, the amount and kind of the Relevant Distribution that such
Holder would have received if such Holder owned a number of shares of Common Stock equal to the Conversion Rate in effect on the
Ex-Dividend Date for the distribution.

 

With respect to an adjustment pursuant to this clause
(c) where there has been an Ex-Dividend Date for a dividend or other distribution on the Common Stock of shares of Capital Stock
of any class or series, or similar equity interest, of or relating to a subsidiary or other business unit, that are, or, when issued,
will be, listed or admitted for trading on a U.S. national securities exchange (a “Spin-Off”), the Conversion
Rate will be increased based on the following formula:

 

	CR1 = CR0 x	
        FMV0
        + MP0

	MP0 

 

where,

 

		CR0 =	the Conversion Rate in effect immediately prior to the
Open of Business on the Ex-Dividend Date for such Spin-Off;

 

    	45

    	 

    

 

 

		CR1 =	the Conversion Rate in effect immediately after the Open
of Business on the Ex-Dividend Date for such Spin-Off;

 

		FMV0 =	the average of the Closing Sale Prices of the Capital
Stock or similar equity interest distributed to holders of the Common Stock applicable to one share of the Common Stock over the
first 10 consecutive Trading-Day period commencing on, and including, the Ex-Dividend Date for the Spin-Off (such period, the
“Valuation Period”); and

 

		MP0 =	the average of the Closing Sale Prices of Common Stock
over the Valuation Period.

 

The adjustment to the applicable conversion rate under
the preceding paragraph of this clause (c) will be determined on the last day of the Valuation Period but will be given effect
immediately after the Open of Business on the Ex-Dividend Date for the Spin-Off. If the Ex-Dividend Date for the Spin-Off is less
than 10 Trading Days prior to, and including, the end of the Conversion Period in respect of any conversion, references within
this clause (c) to 10 Trading Days shall be deemed to be replaced, solely in respect of that conversion, with such lesser number
of Trading Days as have elapsed from, and including, the Ex-Dividend Date for the Spin-Off to, and including, the last VWAP Trading
Day of such Conversion Period. In respect of any conversion during the Valuation Period for any Spin-Off, references within this
clause (c) related to 10 Trading Days shall be deemed to be replaced, solely in respect of that conversion, with such lesser number
of Trading Days as have elapsed from, and including, the Ex-Dividend Date for such Spin-Off to, but excluding, the relevant Conversion
Date.

 

For purposes of the second adjustment formula set
forth in this Section 4.04(c), (i) the Closing Sale Price of any Capital Stock or similar equity interest shall be calculated
in a manner analogous to that used to calculate the Closing Sale Price of the Common Stock in the definition of “Closing
Sale Price” set forth in Section 1.01, (ii) whether a day is a Trading Day (and whether a day is a Scheduled Trading
Day and whether a Market Disruption Event has occurred) for such Capital Stock or similar equity interest shall be determined in
a manner analogous to that used to determine whether a day is a Trading Day (or whether a day is a Scheduled Trading Day and whether
a Market Disruption Event has occurred) for the Common Stock, and (iii) whether a day is a Trading Day to be included in a
Valuation Period will be determined based on whether a day is a Trading Day for both the Common Stock and such Capital Stock or
similar equity interest.

 

    	46

    	 

    

  

Subject to Section 4.04(g), for the purposes
of this Section 4.04(c), rights, options or warrants distributed to all or substantially all holders of the Common Stock entitling
them to acquire the Company’s Capital Stock or other securities, (either initially or under certain circumstances), which
rights, options or warrants, until the occurrence of a specified event or events (a “Trigger Event”): (1) are
deemed to be transferred with such shares of Common Stock; (2) are not exercisable; and (3) are also issued in respect
of future issuances of Common Stock (including, for the avoidance of doubt, upon settlement of conversions of Notes), shall be
deemed not to have been distributed for purposes of this Section 4.04(c) (and no adjustment to the Conversion Rate under this
Section 4.04(c) will be required) until the occurrence of the earliest Trigger Event, whereupon such rights, options or warrants
shall be deemed to have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate shall be made
under this Section 4.04(c). If any such rights, options or warrants, distributed prior to the Issue Date are subject to events,
upon the occurrence of which such rights, options or warrants become exercisable to purchase different securities, evidences of
indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution
and Ex-Dividend Date of such deemed distribution (in which case the original rights, options or warrants shall be deemed to terminate
and expire on such date without exercise by any of the holders). In addition, in the event of any distribution or deemed distribution
of rights, options or warrants, or any Trigger Event or other event (of the type described in the preceding sentence) with respect
thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section 4.04(c) was made, (1) in the case of any such rights, options or warrants which shall all have been redeemed
or purchased without exercise by any Holders thereof, upon such final redemption or purchase (x) the Conversion Rate shall
be readjusted as if such rights, options or warrants had not been issued and (y) the Conversion Rate shall then again be readjusted
to give effect to such distribution, deemed distribution or Trigger Event, as the case may be, as though it were a cash distribution,
equal to the per share redemption or purchase price received by holders of Common Stock with respect to such rights, options or
warrants (assuming each such holder had retained such rights, options or warrants), made to all holders of Common Stock as of the
date of such redemption or purchase, and (2) in the case of such rights, options or warrants which shall have expired or been
terminated without exercise by any holders thereof, the Conversion Rate shall be readjusted as if such rights and warrants had
not been issued.

 

For purposes of Sections 4.04(a) through (c),
if any dividend or distribution to which this Section 4.04(c) applies includes one or both of:

 

(A)         a
dividend or distribution of shares of Common Stock to which Section 4.04(a) also applies (the “Clause A Distribution”);
or

 

(B)         an
issuance of rights, options or warrants entitling holders of the Common Stock to subscribe for or purchase shares of the Common
Stock to which Section 4.04(b) also applies (the “Clause B Distribution”),

 

then (i) such dividend or distribution, other
than the Clause A Distribution and the Clause B Distribution, shall be deemed to be a distribution to which this Section 4.04(c)
applies (the “Clause C Distribution”) and any Conversion Rate adjustment required to be made under this
Section 4.04(c) with respect to such Clause C Distribution shall be made, (ii) the Clause B Distribution, if
any, shall be deemed to immediately follow the Clause C Distribution and any Conversion Rate adjustment required by Section 4.04(b)
with respect thereto shall then be made, except that, if determined by the Company, (A) the “Ex-Dividend Date”
of the Clause B Distribution and the Clause A Distribution, if any, shall be deemed to be the Ex-Dividend Date of the
Clause C Distribution and (B) any shares of Common Stock included in the Clause A Distribution or the Clause B
Distribution shall not be deemed to be “outstanding immediately prior to the Open of Business on such Ex-Dividend Date”
within the meaning of Section 4.04(b), and (iii) the Clause A Distribution, if any, shall be deemed to immediately
follow the Clause C Distribution or the Clause B Distribution, as the case may be, except that, if determined by the
Company, (A) the “Ex-Dividend Date” of the Clause A Distribution and the Clause B Distribution, if any,
shall be deemed to be the Ex-Dividend Date of the Clause C Distribution, and (B) any shares of Common Stock included
in the Clause A Distribution shall not be deemed to be “outstanding immediately prior to the Open of Business on such
Ex-Dividend Date or such effective date” within the meaning of Section 4.04(a).

 

    	47

    	 

    

 

(d)          If
an Ex-Dividend Date occurs for a cash dividend or distribution to all, or substantially all, holders of the outstanding Common
Stock (other than any dividend or distribution in connection with the Company’s liquidation, dissolution or winding up),
the Conversion Rate will be increased based on the following formula:

  

	CR1 = CR0 x	
        SP0

	SP0 - C

 

where,

 

		CR0 =	the Conversion Rate in effect immediately prior to the
Open of Business on the Ex-Dividend Date for such dividend or distribution;

 

		CR1 =	the Conversion Rate in effect immediately after the Open
of Business on the Ex-Dividend Date for such dividend or distribution;

 

		SP0 =	the Closing Sale Price of the Common Stock on the Trading
Day immediately preceding the Ex-Dividend Date for such dividend or distribution; and

 

		C =	the amount in cash per share that the Company pays or
distributes to substantially all holders of the Common Stock.

 

Any increase made under this clause (d) shall become
effective immediately after the Open of Business on the Ex-Dividend date for such dividend or distribution. No adjustment pursuant
to the above formula will result in a decrease of the Conversion Rate. However, if any dividend or distribution described in this
clause (d) is scheduled to be paid or made prior to the Maturity Date but is not so paid or made, the new Conversion Rate shall
be readjusted to the Conversion Rate that would then be in effect if such dividend or distribution had not been declared.

 

Notwithstanding the foregoing, if “C”
(as defined above) is equal to or greater than “SP0” (as defined above), in lieu of the foregoing increase,
each Holder of a Note shall receive, for each $1,000 principal amount of Notes, at the same time and upon the same terms as holders
of shares of the Common Stock, without having to convert its Notes, the amount of cash that such Holder would have received if
such Holder owned a number of shares of Common Stock equal to the applicable Conversion Rate on the Ex-Dividend Date for such cash
dividend or distribution.

 

    	48

    	 

    

  

(e)          If
the Company or any of its Subsidiaries makes a payment in respect of a tender or exchange offer for the Common Stock, and if the
cash and value of any other consideration included in the payment per share of Common Stock exceeds the average of the Closing
Sale Prices of the Common Stock over the 10 consecutive Trading-Day period commencing on, and including, the Trading Day next succeeding
the last date on which tenders or exchanges may be made pursuant to such tender or exchange offer (the “Offer Expiration
Date”), the Conversion Rate will be increased based on the following formula:

  

	CR1 = CR0 x	
        AC + (SP1
        x OS1)

	 	OS0 x SP1

 

where,

 

		CR0 =	the Conversion Rate in effect immediately prior to the
Open of Business on the Trading Day next succeeding the Offer Expiration Date;

 

		CR1 =	the Conversion Rate in effect immediately after the Open
of Business on the Trading Day next succeeding the Offer Expiration Date;

 

		AC =	the aggregate value of all cash and any other consideration
(as determined in good faith by the Board of Directors or a duly authorized committee thereof) paid or payable for shares of Common
Stock purchased in such tender or exchange offer;

 

		OS0 =	the number of shares of Common Stock outstanding immediately
prior to the time (the “Offer Expiration Time”) such tender or exchange offer expires (prior to giving effect
to such tender or exchange offer);

 

		OS1 =	the number of shares of Common Stock outstanding immediately
after the Offer Expiration Time (after giving effect to the purchase of all shares accepted for purchase or exchange in such tender
or exchange offer); and

 

		SP1 =	the average of the Closing Sale Prices of the Common
Stock over the 10 consecutive Trading-Day period commencing on, and including, the Trading Day next succeeding the Offer Expiration
Date.

 

The adjustment to the Conversion Rate under the preceding
paragraph of this clause (e) will be determined at the Close of Business on the tenth Trading Day immediately following, but excluding,
the Offer Expiration Date but will be given effect at the Open of Business on the Trading Day next succeeding the Offer Expiration
Date. If the Trading Day next succeeding the Offer Expiration Date is less than 10 Trading Days prior to, and including, the end
of the Conversion Period in respect of any conversion, references within this clause (e) to 10 Trading Days shall be deemed to
be replaced, solely in respect of that conversion, with such lesser number of Trading Days as have elapsed from, and including,
the Trading Day next succeeding the Offer Expiration Date to, and including, the last VWAP Trading Day of such Conversion Period.
In respect of any conversion during the 10 Trading Days commencing on the Trading Day next succeeding the Offer Expiration Date,
references within this clause (e) to 10 Trading Days shall be deemed to be replaced, solely in respect of that conversion, with
such lesser number of Trading Days as have elapsed from, and including, the Trading Day next succeeding the Offer Expiration Date
to, but excluding, the relevant Conversion Date. No adjustment pursuant to the above formula will result in a decrease of the Conversion
Rate.

 

    	49

    	 

    

 

(f)          Special
Settlement Provisions. Notwithstanding anything to the contrary herein, if a Holder converts a Note and:

 

(i)          Combination
Settlement is applicable to such Note and shares of Common Stock are deliverable to settle the Daily Net Share Number for a given
VWAP Trading Day within the Conversion Period applicable to such Note;

 

(ii)         any
distribution, transaction or event described in Sections 4.04(a) through (e) has not yet resulted in an adjustment to the Conversion
Rate on such VWAP Trading Day; and

 

(iii)        the
shares of Common Stock deliverable in respect of such VWAP Trading Day are not entitled to participate in the relevant distribution
or transaction (because such shares of Common Stock were not held on a related Record Date or otherwise),

 

then the Company will adjust the number of shares
of Common Stock delivered in respect of the relevant VWAP Trading Day to reflect the relevant distribution or transaction.

 

If a Holder converts a Note and:

 

(i)          Physical
Settlement is applicable to such Note;

 

(ii)         any
distribution or transaction described in Sections 4.04(a) through (e) has not yet resulted in an adjustment to the Conversion Rate
on a given Conversion Date; and

 

(iii)        the
shares of Common Stock deliverable on settlement of the related conversion are not entitled to participate in the relevant distribution
or transaction (because such shares of Common Stock were not held on a related Record Date or otherwise),

 

then the Company will adjust the number of shares
of Common Stock delivered in respect of the relevant conversion to reflect the relevant distribution or transaction.

 

    	50

    	 

    

  

Notwithstanding the foregoing, if a Conversion Rate
adjustment becomes effective on any Ex-Dividend Date as described above, and a Holder that has converted its Notes on or after
such Ex-Dividend Date and on or prior to the related Record Date would be treated as the record holder of shares of Common Stock
as of the related Conversion Date pursuant to Section 4.03 based on an adjusted Conversion Rate for such Ex-Dividend Date, then,
notwithstanding the foregoing Conversion Rate adjustment provisions, the Conversion Rate adjustment relating to such Ex-Dividend
Date will not be made for such converting Holder. Instead, such Holder will be treated as if such Holder were the record owner
of the shares of Common Stock on an unadjusted basis and participate in the related dividend, distribution or other event giving
rise to such adjustment.

 

(g)          Poison
Pill. If a Holder converts a Note, to the extent that the Company has a rights plan in effect, if Physical Settlement applies
to such Note, on the Conversion Date applicable to such Note, and if Combination Settlement applies to such Note on any VWAP Trading
Day in the Conversion Period applicable to such Note, the Holder converting such Note will receive, in addition to any shares of
Common Stock otherwise received in connection with such conversion on such Conversion Date or such VWAP Trading Day, as the case
may be, the rights under the rights plan, unless prior to such Conversion Date or such VWAP Trading Day, as the case may be, the
rights have separated from the Common Stock, in which case, and only in such case, the Conversion Rate will be adjusted at the
time of separation as if the Company distributed to all holders of the Common Stock, Distributed Property as described in Section 4.04(c),
subject to readjustment in the event of the expiration, termination or redemption of such rights.

 

(h)          Deferral
of Adjustments. Notwithstanding anything to the contrary herein, the Company will not be required to adjust the Conversion
Rate unless such adjustment would result in a change of at least one percent; provided, however, that the Company shall
carry forward any adjustments that are less than one percent of the Conversion rate and make such carried forward adjustments (i)
when the cumulative net effect of all adjustments not yet made will result in a change of at least one percent of the Conversion
Rate or (ii) regardless of whether the aggregate adjustment is less than one percent, (1) upon any offer to purchase the Notes
following a Fundamental Change, (2) on each of the VWAP Trading Days within any Conversion Period, (3) upon any conversion of Notes,
(4) on the Effective Date for any Fundamental Change or Make-Whole Fundamental Change and (5) upon any Redemption Notice Date.

 

(i)          Limitation
on Adjustments. Except as stated in this Section 4.04, the Company will not adjust the Conversion Rate for the issuance
of shares of Common Stock or any securities convertible into or exchangeable for shares of Common Stock or the right to purchase
shares of Common Stock or such convertible or exchangeable securities. If, however, the application of the formulas in Sections
4.04(a) through (e) would result in a decrease in the Conversion Rate, then, except to the extent of any readjustment to the Conversion
Rate, no adjustment to the Conversion Rate will be made (other than as a result of a reverse share split or share combination).

 

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For purposes of this Section 4.04, the number
of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company so long as the Company
does not pay any dividend or make any distribution on shares of Common Stock held in the treasury of the Company, but shall include
shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.

 

Section
4.05         Discretionary and Voluntary Adjustments.

 

(a)          Discretionary
Adjustments. Whenever any provision of this Indenture requires the Company to calculate the Closing Sale Prices, the Daily
VWAPs or any function thereof over a span of multiple days (including during an Conversion Period), the Company will make appropriate
adjustments to each, if any, to account for any adjustment to the Conversion Rate that becomes effective, or any event requiring
an adjustment to the Conversion Rate where the effective date, Ex-Dividend Date or Offer Expiration Date of the event occurs, at
any time during the period when such Closing Sale Prices, the Daily VWAPs or function thereof is to be calculated.

 

(b)          Voluntary
Adjustments. The Company is permitted to increase the Conversion Rate of the Notes by any amount for a period of at least 20
Business Days if such increase is irrevocable for such period and the Board of Directors determines that such increase would be
in the Company’s best interest; provided that the Company must give at least 15 days’ prior notice of any such
increase in the Conversion Rate. The Company may also (but is not required to) increase the Conversion Rate to avoid or diminish
income tax to holders of Common Stock or rights to purchase shares of Common Stock in connection with a dividend or distribution
of shares (or rights to acquire shares) or similar event.

 

Section
4.06         Adjustment to Conversion Rate Upon Conversion in Connection with
a Make-Whole Fundamental Change or a Redemption Notice.

 

(a)          Increase
in the Conversion Rate. If (i) a Holder elects to convert its Notes in connection with a Make-Whole Fundamental Change, or (ii)
a Holder elects to convert its Notes at any time from, and including, a Redemption Notice Date as provided in Section 10.02 to
the Close of Business on the Business Day immediately preceding the Redemption Date, then, in either case, the Company shall, to
the extent provided herein, increase the Conversion Rate for the Notes so surrendered for conversion by a number of additional
shares of Common Stock (the “Additional Shares”), as described in this Section 4.06. A conversion of Notes
shall be deemed for these purposes to be “in connection with” a Make-Whole Fundamental Change if the relevant Conversion
Notice is received by the Conversion Agent during the period from, and including, the Effective Date of the Make-Whole Fundamental
Change up to, and including, the Business Day immediately prior to the related Fundamental Change Purchase Date or, if such Make-Whole
Fundamental Change is not also a Fundamental Change, the 40th Scheduled Trading Day immediately following the Effective Date for
such Make-Whole Fundamental Change (such period, the “Make-Whole Fundamental Change Period”).

 

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(b)          Determining
the Number of Additional Shares. The number of Additional Shares, if any, by which the Conversion Rate will be increased for
a Holder that converts its Notes in connection with a Make-Whole Fundamental Change or a Redemption Notice, as applicable, shall
be determined by reference to the table attached as Schedule A, based on the Effective Date, and the price (the “Stock
Price”) paid (or deemed paid) per share of the Common Stock in the Make-Whole Fundamental Change or in connection with
the Redemption Notice, as applicable, as determined under the two immediately following sentences. If the holders of the Common
Stock receive only cash in a Make-Whole Fundamental Change described in clause (2) of the definition of “Fundamental
Change,” the Stock Price shall be the cash amount paid per share of Common Stock. Otherwise, the Stock Price shall be the
average of the Closing Sale Prices of the Common Stock over the five consecutive Trading-Day period ending on, and including, the
Trading Day immediately preceding the relevant Effective Date.

 

(c)          Interpolation
and Limits. The exact Stock Prices and Effective Dates may not be set forth in the table in Schedule A, in which
case:

 

(i)          If
the Stock Price is between two Stock Prices in the table or the Effective Date is between two dates in the table, the number of
Additional Shares shall be determined by a straight-line interpolation between the number of Additional Shares set forth for the
higher and lower Stock Prices and the earlier and later dates, as applicable, based on a 365 day year.

 

(ii)         If
the Stock Price is greater than $75.00 per share (subject to adjustment in the same manner as the Stock Prices set forth in the
column headings of the table in Schedule A), no Additional Shares will be added to the Conversion Rate.

 

(iii)        If
the Stock Price is less than $8.89 per share (subject to adjustments in the same manner as the Stock Prices set forth in the column
headings of the table in Schedule A), no Additional Shares will be added to the Conversion Rate.

 

Notwithstanding the foregoing, in no event
will the Conversion Rate be increased on account of a Make-Whole Fundamental Change or a Redemption Notice to exceed 112.4859 shares
of Common Stock per $1,000 principal amount of Notes, subject to adjustments in the same manner as the Conversion Rate is required
to be adjusted as set forth in Section 4.04.

 

(iv)        The
Stock Prices set forth in the column headings of the table in Schedule A shall be adjusted as of any date on which
the Conversion Rate of the Notes is otherwise required to be adjusted. The adjusted Stock Prices shall equal the Stock Prices applicable
immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the Conversion Rate immediately prior
to such adjustment giving rise to the Stock Price adjustment and the denominator of which is the Conversion Rate as so adjusted.
The number of Additional Shares set forth in such table shall be adjusted in the same manner and at the same time as the Conversion
Rate is required to be adjusted as set forth in Section 4.04.

 

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(d)          Notices.
The Company will notify Holders, the Trustee and the Conversion Agent of the anticipated Effective Date of any Make-Whole Fundamental
Change and issue a press release as soon as practicable after the Company first determines the anticipated Effective Date of such
Make-Whole Fundamental Change (and make the press release available on the Company’s website). The Company will use its commercially
reasonable efforts to give notice to Holders of the anticipated Effective Date of such Make-Whole Fundamental Change not more than
70 Scheduled Trading Days nor less than 50 Scheduled Trading Days prior to the anticipated Effective Date.

 

Section
4.07         Effect of Recapitalization, Reclassification, Consolidation, Merger
or Sale.

 

(a)          Merger
Events. In the case of:

 

(i)          any
recapitalization, reclassification or change of the Common Stock (other than changes resulting from a split, subdivision or combination
for which an adjustment was made pursuant to Section 4.04(a));

 

(ii)         any
consolidation, merger, combination, binding share exchange or similar transaction involving the Company;

 

(iii)        any
sale, assignment, conveyance, transfer, lease or other disposition to a third party of the consolidated property and assets of
the Company as an entirety or substantially as an entirety; or

 

(iv)        a
liquidation or dissolution of the Company;

 

and, in each case, as a result of which the Common Stock would
be converted into, or exchanged for, common stock, other securities, other property or assets (including cash or any combination
thereof) (any such event, a “Merger Event,” any such common stock, other securities, other property or assets
(including cash or any combination thereof), “Reference Property,” and (i) the amount and kind of Reference
Property that a holder of one share of Common Stock is entitled to receive in the applicable Merger Event, or (ii) if as a result
of the applicable Merger Event, each share of Common Stock is converted into, or exchanged for, the right to receive more than
a single type of consideration (determined based in part upon any form of stockholder election), the per share of Common Stock
weighted average of the amounts and kinds of Reference Property received by the holders of Common Stock that affirmatively make
such an election (disregarding, for these purposes, any arrangement to deliver cash in lieu of any fractional security or other
unit of Reference Property), a “Unit of Reference Property”) then, at the effective time of such Merger Event,
Holders of each $1,000 principal amount of Notes shall be entitled thereafter to convert such Notes into the kind and amount of
Reference Property that a Holder of a number of shares of Common Stock equal to the Conversion Rate in effect immediately prior
to such Merger Event would have owned or been entitled to receive upon such Merger Event, and, prior to or at the effective time
of such Merger Event, the Company or the successor or purchasing person, as the case may be, shall execute with the Trustee a supplemental
indenture providing for such change in the right to convert each $1,000 principal amount of Notes; provided, however,
that at and after the effective time of the Merger Event, (x) the Company will continue to have the right to determine the
Settlement Method upon conversion of the Notes pursuant to Sections 4.03(a)(i) and 4.03(a)(ii), as applicable and (y) (i) any
amount payable in cash upon conversion of the Notes in accordance with Section 4.03 and 4.06 shall continue to be payable in cash,
(ii) the number of shares of Common Stock that the Company would have been required to deliver upon conversion of the Notes
in accordance with Section 4.03 and 4.06 shall instead be deliverable in Units of Reference Property that a Holder of that number
of shares of Common Stock would have received in such Merger Event and (iii) the Daily VWAP and the Closing Sale Price will,
to the extent reasonably possible, be calculated based on the value of a Unit of Reference Property and the definitions of VWAP
Trading Day and VWAP Market Disruption Event shall be determined by reference to the components of a Unit of Reference Property.
The Company shall notify in writing the Holders, the Trustee and the Conversion Agent (if other than the Trustee) of such weighted
average as soon as practicable after such determination is made.

 

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The Company shall not become a party to
any Merger Event unless its terms are consistent with this Section 4.07. Such supplemental indenture described in the immediately
preceding paragraph shall provide for adjustments which shall be as nearly equivalent to the adjustments provided for in this Article
4 in the judgment of the Board of Directors or the board of directors of the successor person. If, in the case of any such Merger
Event, the Reference Property receivable thereupon by a holder of Common Stock includes shares of stock, securities or other property
or assets (including cash or any combination thereof) of a person other than the successor or purchasing person, as the case may
be, in such Merger Event, then such indenture shall also be executed by such other person.

 

If the Notes become convertible into, or
exchanged for Reference Property, the Company shall notify the Trustee and the Conversion Agent, and shall issue a press release
containing the relevant information (and make such press release available on the Company’s website).

 

(b)          Notice
of Supplemental Indentures. The Company shall cause written notice of the execution of such supplemental indenture to be mailed
to each Holder, at the address of such Holder as it appears on the register of the Notes maintained by the Registrar, within 20
calendar days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of such supplemental
indenture. The above provisions of this Section 4.07 shall similarly apply to successive Merger Events.

 

(c)          Prior
Notice. In addition, at least 20 Scheduled Trading Days before any Merger Event, the Company shall give notice to Holders of
such Merger Event, or, if the Company has not publicly announced such Merger Event at such time, as promptly as practicable after
publicly announcing such Merger Event. In any such notice, the Company shall also specify the composition of the Unit of Reference
Property for such Merger Event, or, if the Company has not determined the composition of such Unit of Reference Property at such
time, the Company will provide an additional written notice to Holders that states the composition of such Unit of Reference Property
as promptly as practicable after determining its composition.

 

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(d)          Cash
Mergers. Notwithstanding anything to the contrary herein, if the consideration paid to holders of the Common Stock in any Merger
Event is comprised entirely of cash, then, for any conversion of Notes following such Merger Event, (i) the consideration due upon
the conversion of each $1,000 principal amount of Notes shall be solely in cash in an amount equal to the Conversion Rate in effect
on the Conversion Date (including any adjustment as set forth in Section 4.06), multiplied by the price paid per share of
Common Stock in such Merger Event and (ii) the Company’s conversion obligation will be determined and paid to Holders in
cash on the third Business Day following the applicable Conversion Date.

 

Section
4.08         Certain Covenants.

 

(a)          Reservation
of Shares. As of the Issue Date, the Company shall have reserved and shall keep available, free from preemptive rights, out
of its authorized but unissued Common Stock that is not committed for any other purpose, 2,583,059 shares of Common Stock for the
purpose of satisfying conversions of Notes through Physical Settlement. Upon obtaining the Shareholder Approval contemplated in
clause (i) of the definition thereof, the Company shall reserve and keep available thereafter, free from preemptive rights, out
of its authorized but unissued Common Stock that is not committed for any other purpose, a number of shares of Common Stock at
least equal to the product of (i) the number of Notes then outstanding multiplied by (ii) the maximum Conversion Rate of 112.4589
shares of Common Stock, for the purpose of satisfying conversions of the Notes, which shall be sufficient to satisfy conversions
of all Outstanding Notes through Physical Settlement.

 

(b)          Certain
other Covenants. The Company covenants that all shares of Common Stock that may be issued upon conversion of Notes shall be
newly issued shares or treasury shares, shall be issued in book-entry form, shall be duly authorized, validly issued, fully paid
and non-assessable and shall be free from preemptive rights and free from any tax, lien or charge (other than those created by
the Holder or due to a change in registered owner). The Company shall list or cause to have quoted any shares of Common Stock to
be issued upon conversion of Notes on each national securities exchange or over-the-counter or other domestic market on which the
Common Stock is then listed or quoted.

 

Section
4.09         Responsibility of Trustee.

 

The Trustee and any Conversion Agent shall
not at any time be under any duty or responsibility to any Holder of Notes to determine or calculate the Conversion Rate, to determine
whether any facts exist which may require any adjustment of the Conversion Rate, or to confirm the accuracy of any such adjustment
when made or the appropriateness of the method employed, or herein or in any supplemental indenture provided to be employed, in
making the same. The Trustee and any other Conversion Agent (if other than the Company) shall not be accountable with respect to
the validity or value (or the kind or amount) of any shares of Common Stock or of any other securities or property that may at
any time be issued or delivered upon the conversion of any Notes; and the Trustee and the Conversion Agent (if other than the Company)
make no representations with respect thereto. Neither the Trustee nor any Conversion Agent (if other than the Company) shall be
responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock or stock certificates or other
securities or property or cash upon the surrender of any Notes for the purpose of conversion or to comply with any of the duties,
responsibilities or covenants of the Company contained in this Article 4. The rights, privileges, protections, immunities and benefits
given to the Trustee, including without limitation its right to be compensated, reimbursed and indemnified, are extended to, and
shall be enforceable by, the Trustee in each of its capacities hereunder, including its capacity as Conversion Agent and as Bid
Solicitation Agent.

 

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Section
4.10         Notice of Adjustment.

 

Whenever the Conversion Rate is adjusted
as herein provided, the Company shall promptly file with the Trustee and any Conversion Agent (if other than the Trustee) an Officer’s
Certificate setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the facts requiring
such adjustment. Unless and until a Responsible Officer of the Trustee shall have received such Officer’s Certificate, the
Trustee shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume that the last Conversion
Rate of which it has knowledge is still in effect. Promptly after delivery of such certificate, the Company shall (i) issue a press
release and make the press release available on the Company’s website and (ii) prepare a notice of such adjustment of the
Conversion Rate, in each case, setting forth the adjusted Conversion Rate and the date as of which each adjustment becomes effective
and shall deliver such notice of such adjustment of the Conversion Rate to the Holder of each Note at his or her last address appearing
on the Register provided for in Section 2.06 of this Indenture, within 20 days after execution thereof. Failure to issue such press
release or deliver such notice shall not affect the legality, effectiveness or validity of any such adjustment and shall not be
an Event of Default under this Indenture.

 

Section
4.11         Notice to Holders.

 

(a)          Notice
to Holders Prior to Certain Actions. The Company shall deliver notices of the events specified below at the times specified
below and containing the information specified below unless, in each case, (i) pursuant to this Indenture, the Company is already
required to deliver notice of such event containing at least the information specified below at an earlier time or, (ii) the Company,
at the time it is required to deliver a notice, does not have knowledge of all of the information required to be included in such
notice, in which case, the Company shall (A) deliver notice at such time containing only the information that it has knowledge
of at such time (if it has knowledge of any such information at such time), and (B) promptly upon obtaining knowledge of any such
information not already included in a notice delivered by the Company, deliver notice to each Holder with a copy to the Trustee
and the Conversion Agent containing such information. In each case, the failure by the Company to give such notice, or any defect
therein, shall not affect the legality or validity of such event.

 

(i)          Voluntary
Increases. If the Company increases the Conversion Rate pursuant to Section 4.05(b), the Company shall mail to the Holders
with a copy to the Trustee and the Conversion Agent a notice of the increased Conversion Rate and the period during which such
increased Conversion Rate will be in effect at least 15 calendar days prior to the date the increased Conversion Rate takes effect,
in accordance with the applicable law.

 

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(ii)         Dissolutions,
Liquidations and Winding-Ups. If there is a voluntary or involuntary dissolution, liquidation or winding-up of the Company,
the Company shall deliver notice to the Holders as promptly as possible, but in any event at least 15 calendar days prior to the
earlier of (i) the date on which such dissolution, liquidation or winding-up, as the case may be, is expected to become effective
or occur, and (ii) the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their
Common Stock for securities or other property deliverable upon such dissolution, liquidation or winding-up, as the case may be,
which notice shall state the expected effective date and record date for such event, as applicable, and the amount and kind of
property that a holder of one share of the Common Stock is expected to be entitled, or may elect, to receive in such event. The
Company shall deliver an additional notice to holders, as promptly as practicable, whenever the expected effective date or record
date, as applicable, or the amount and kind of property that a holder of one share of the Common Stock is expect to be entitled
to receive in such event, changes.

 

(b)          Notices
After Certain Actions and Events. Whenever an adjustment to the Conversion Rate becomes effective pursuant to Sections 4.04,
4.05 or 4.06, the Company will (i) file with the Trustee an Officer’s Certificate stating that such adjustment has become
effective, the Conversion Rate, and the manner in which the adjustment was computed and (ii) deliver written notice to the
Holders stating that such adjustment has become effective and the Conversion Rate or conversion privilege as adjusted. Failure
to give any such notice, or any defect therein, shall not affect the validity of any such adjustment.

 

ARTICLE
5.

COVENANTS

 

Section
5.01         Payment of Principal and Interest, the Fundamental Change Purchase
Price and Redemption Price.

 

The Company covenants and agrees that it
will cause to be paid the principal of (including the Fundamental Change Purchase Price or Redemption Price, if applicable), premium,
if any, on and accrued and unpaid interest, if any, on each of the Notes at the places, at the respective times and in the manner
provided herein and in the Notes.

 

Section
5.02         Maintenance of Office or Agency.

 

The Company will maintain in the continental
United States an office of the Paying Agent, an office of the Registrar and an office or agency where Notes may be surrendered
for conversion (“Conversion Agent”) and where notices and demands to or upon the Company in respect of the Notes
and this Indenture (other than the type contemplated by Section 12.14) may be served. The Company will give prompt written notice
to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company shall fail
to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made at the Corporate Trust Office or the office or agency of the Trustee.

 

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The Company may also from time to time designate
as co-registrars one or more other offices or agencies where the Notes may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided that no such designation or rescission shall in any manner relieve
the Company of its obligation to maintain an office or agency in the continental United States for such purposes. The Company will
give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other
office or agency. The terms “Paying Agent” and “Conversion Agent” include any such additional or other
offices or agencies, as applicable.

 

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

 

With respect to any Global Note, the Corporate
Trust Office of the Trustee or any Paying Agent shall be the place of payment where such Global Note may be presented or surrendered
for payment or conversion or for registration of transfer or exchange, or where successor Notes may be delivered in exchange therefor;
provided, however, that any such payment, conversion, presentation, surrender or delivery effected pursuant to the
Applicable Procedures for such Global Note shall be deemed to have been effected at the place of payment for such Global Note in
accordance with the provisions of this Indenture.

 

Section
5.03         Provisions as to Paying Agent.

 

(a)          If
the Company shall appoint a Paying Agent other than the Trustee, the Company will cause such Paying Agent to execute and deliver
to the Trustee an instrument in which such agent shall agree, subject to the provisions of this Section 5.03:

 

(i)          that
it will hold all sums held by it as such agent for the payment of the principal of, any premium on, accrued and unpaid interest,
if any, on, Fundamental Change Purchase Price and Redemption Price for the Notes in trust for the benefit of the Holders of the
Notes;

 

(ii)         that
it will give the Trustee prompt written notice of any failure by the Company to make any payment of the principal of, any premium
on, accrued and unpaid interest, if any, on, Fundamental Change Purchase Price or Redemption Price for the Notes when the same
shall be due and payable; and

 

(iii)        that
at any time during the continuance of an Event of Default, upon request of the Trustee, it will forthwith pay to the Trustee all
sums so held in trust.

 

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The Company shall, on or before each due
date of the principal of, any premium on, accrued and unpaid interest, if any, on, Fundamental Change Purchase Price and Redemption
Price for the Notes, deposit with the Paying Agent a sum sufficient to pay such principal, premium, accrued and unpaid interest,
Fundamental Change Purchase Price or Redemption Price, as the case may be, and (unless such Paying Agent is the Trustee) the Company
will promptly notify the Trustee in writing of any failure to take such action, provided that, if such deposit is made on the due
date, such deposit must be received by the Paying Agent by 11:00 a.m., New York City time, on such date.

 

(b)          If
the Company shall act as its own Paying Agent, it will, on or before each due date of the principal of, any premium on, accrued
and unpaid interest, if any, on, Fundamental Change Purchase Price or Redemption Price for the Notes, set aside, segregate and
hold in trust for the benefit of the Holders of the Notes a sum sufficient to pay such principal, any premium, accrued and unpaid
interest, if any, Fundamental Change Purchase Price or Redemption Price, as the case may be, so becoming due and will promptly
notify the Trustee in writing of any failure to take such action and of any failure by the Company to make any payment of the principal
of, premium on, accrued and unpaid interest on, Fundamental Change Purchase Price or Redemption Price for the Notes when the same
shall become due and payable.

 

(c)          Anything
in this Section 5.03 to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining a satisfaction
and discharge of this Indenture, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust by any
Paying Agent hereunder as required by this Section 5.03, such sums to be held by the Trustee upon the trusts herein contained
and upon such payment by the any Paying Agent to the Trustee, such Paying Agent (if other than the Company) shall be released from
all further liability with respect to such sums.

 

(d)          Subject
to any applicable abandoned property law, any money deposited with the Trustee or any Paying Agent, or then held by the Company,
in trust for the payment of the principal of, any premium on, accrued and unpaid interest, if any, on, Fundamental Change Purchase
Price or Redemption Price for any Note and remaining unclaimed for two years after such principal, premium, accrued and unpaid
interest, Fundamental Change Purchase Price or Redemption Price has become due and payable shall be paid to the Company on written
request of the Company contained in an Officer’s Certificate, or (if then held by the Company) shall be discharged from such
trust; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that before the Trustee or such Paying Agent are required to make
any such repayment, the Company shall cause to be published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in The Borough of Manhattan, The City of New York, New York, notice that
such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 calendar days from the date
of such publication, any unclaimed balance of such money then remaining will be repaid to the Company.

 

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Section
5.04         Reports.

 

As long as any Notes are outstanding, the
Company shall (i) file with the Commission within the time periods prescribed by its rules and regulations and (ii) furnish to
the Trustee and the Holders within 15 calendar days after it is required to file the same with the Commission pursuant to its rules
and regulations (giving effect to any grace period provided by Rule 12b-25 under the Exchange Act), all quarterly and annual financial
information required to be contained in Forms 10-Q and 10-K and, with respect to the annual consolidated financial statements only,
a report thereon by the Company’s independent auditors. The Company shall not be required to file any report or other information
with the Commission if the Commission does not permit such filing, although such reports will be required to be furnished to the
Trustee. Any such report, information or document that the Company files with the Commission through the EDGAR system (or any successor
thereto) will be deemed to be delivered to the Trustee and the Holders for the purposes of this Section 5.04 at the time of
such filing through the EDGAR system (or such successor thereto).

 

At any time the Company is not subject to
Section 13 or 15(d) of the Exchange Act, the Company will, so long as any of the Notes or the shares of Common Stock delivered
upon conversion of the Notes will, at such time, constitute “restricted securities” within the meaning of Rule 144(a)(3)
under the Securities Act, promptly provide to the Trustee and will, upon written request, provide to any Holder, beneficial owner
or prospective purchaser of such Notes or such shares of Common Stock the information required to be delivered pursuant to Rule
144A(d)(4) under the Securities Act to facilitate the resale of such Notes or such shares of Common Stock pursuant to Rule 144A
under the Securities Act.  The Company will take such further action as any Holder or beneficial owner of such Notes or any
holder or beneficial owner of such shares of Common Stock may reasonably request from time to time to enable such Holder or beneficial
owner to sell such Notes or such holder or beneficial owner to sell shares of Common Stock in accordance with Rule 144A under the
Securities Act, as such rule may be amended from time to time.

 

Delivery of any such reports, information
and documents to the Trustee shall be for informational purposes only, and the Trustee’s receipt of such reports, information
and documents shall not constitute actual or constructive notice of any information contained therein or determinable from information
contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled
to rely exclusively on Officer’s Certificates) or any other agreement or document.

 

Section
5.05         Statements as to Defaults.

 

The Company is required to deliver to the
Trustee (i) within 120 days after the end of each fiscal year ending December 31, an Officer's Certificate stating whether or not
the signers thereof know of any default of the Company that occurred during the previous year and whether the Company, to the Officer’s
knowledge, is in default in the performance or observance of any of the terms, provisions and conditions of this Indenture and
(ii) within 30 days after the occurrence thereof, written notice in the form of an Officer’s Certificate of any events that
would constitute Defaults or Events of Default, setting forth the details of such Defaults or Events of Default, their status and
the action the Company is taking or proposes to take in respect thereof. Such Officer’s Certificate shall also comply with
any additional requirements set forth in Section 5.07. The Trustee shall not be deemed to have notice of any Default or Event
of Default except in accordance with Section 11.02(i).

 

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Section
5.06         Additional Interest Notice.

 

If Additional Interest is payable by the
Company pursuant to Section 5.08 or Section 6.03, the Company shall deliver to the Trustee and the Paying Agent an Officer’s
Certificate, prior to the Regular Record Date for each applicable Interest Payment Date, to that effect stating (a) the amount
of such Additional Interest that is payable and (b) the date on which such interest is payable. Unless and until a Responsible
Officer of the Trustee receives at the Corporate Trust Office such a certificate, the Trustee may assume without inquiry that no
such Additional Interest is payable. The Trustee shall have no obligation to calculate or determine, or verify the Company's calculations
or determinations of, the amount of any Additional Interest payable by the Company under this Indenture. If the Company has paid
Additional Interest directly to the Persons entitled to it, the Company shall deliver to the Trustee an Officer’s Certificate
setting forth the particulars of such payment.

 

Section
5.07         Compliance Certificate and Opinions of Counsel.

 

(a)          Except
as otherwise expressly provided in this Indenture, upon any application or request by the Company to the Trustee to take any action
under any provision of this Indenture, the Company shall furnish to the Trustee an Officer’s Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion
of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with; provided
that no Opinion of Counsel shall be required to be delivered in connection with the issuance of the Initial Notes on the date hereof.

 

(b)          Every
certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include:

 

(i)          a
statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein
relating thereto;

 

(ii)         a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;

 

(iii)        a
statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable
him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(iv)        a
statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.

 

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(c)          All
applications, requests, certificates, statements or other instruments given under this Indenture shall be without personal recourse
to any individual giving the same and may include an express statement to such effect.

 

Section
5.08         Additional Interest.

 

(a)          If,
at any time during the six-month period beginning on, and including, the date which is six months after the Last Original Issuance
Date, the Company fails to timely file any periodic report that the Company is required to file with the Commission pursuant to
Section 13 or 15(d) of the Exchange Act, as applicable (after giving effect to all applicable grace periods thereunder and other
than current reports on Form 8-K), or the Notes are not otherwise Freely Tradable, including pursuant to Rule 144 under the Securities
Act, by Holders other than affiliates (within the meaning of Rule 144) of the Company or Holders that were affiliates (within the
meaning of Rule 144) of the Company during the 90 days immediately preceding the date of the proposed transfer (as a result of
restrictions pursuant to U.S. securities laws or the terms of this Indenture or the Notes), the Company shall pay Additional Interest
that will accrue on the Notes at the rate of 0.50% per annum of the principal amount of Notes then Outstanding for each day during
such period for which the Company’s failure to file has occurred and is continuing or for which the restrictions on transfer
are applicable; provided that such six-month period shall end on the date that is one year from the Last Original Issuance
Date.

 

(b)          Further,
if, and for so long as, the Restricted Notes Legend has not been removed from the Notes, the Notes are assigned a restricted CUSIP
number or the Notes are not otherwise Freely Tradable by Holders other than affiliates (within the meaning of Rule 144) of the
Company or Holders that were affiliates (within the meaning of Rule 144) of the Company during the 90 days immediately preceding
the date of the proposed transfer (without restrictions pursuant to U.S. securities laws or the terms of this Indenture or the
Notes) as of the 375th day after the Last Original Issuance Date, the Company will pay Additional Interest on the Notes that will
accrue on the Notes at the rate of 0.50% per annum of the principal amount of Notes then Outstanding until such Restricted Notes
Legend is removed, the Notes are assigned an unrestricted CUSIP number and the Notes are Freely Tradable.

 

(c)          Such
Additional Interest that is payable under this Section 5.08 shall be payable in arrears on each Interest Payment Date following
accrual in the same manner as regular interest on the Notes and will be separate and distinct from, and in addition to, any Additional
Interest that may accrue pursuant to Section 6.03, subject to the limitations on the maximum annual rate of Additional Interest
set forth in Section 6.03(d).

 

(d)          In
no event shall Additional Interest accruing pursuant to this Section 5.08 accrue on any day under the terms of this Indenture
(taking any such Additional Interest pursuant to this Section 5.08 together with any Additional Interest pursuant to Sections 6.03(a)
and 6.03(c)) at an annual rate in excess of 0.50% for any violation or Default caused by the Company’s failure to be current
in respect of its Exchange Act reporting obligations.

 

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Section
5.09         Corporate Existence.

 

Subject to Article 9, the Company will
do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence, rights (charter
and statutory) and franchises; provided, however, that the Company shall not be required to preserve any such right or franchise
if, in the judgment of the Company, the preservation thereof is no longer desirable in the conduct of the business of the Company.

 

Section
5.10         Restriction on Resales.

 

The Company shall not, and shall procure
that no “affiliate” (as defined under Rule 144) of the Company shall, resell any of the Notes that have been reacquired
by the Company or any such “affiliate” (as defined under Rule 144).

 

Section
5.11         Further Instruments and Acts.

 

Upon request of the Trustee, the Company
will execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out
more effectively the purposes of this Indenture.

 

Section
5.12         Par Value Limitation.

 

The Company shall not take any action that,
after giving effect to any adjustment pursuant to Article 4, would result in the issuance of shares of Common Stock for less
than the par value of such shares of Common Stock.

 

Section
5.13         Company to Furnish Trustee Names and Addresses of Holders.

 

The Company will furnish or cause to be
furnished to the Trustee:

 

(a)          semi-annually,
not later than the 10th day after each Regular Record Date, a list, in such form as the Trustee may reasonably require, containing
all the information in the possession or control of the Company, or any of its Paying Agents other than the Trustee, of the names
and addresses of the Holders, as of such preceding Regular Record Date, and

 

(b)          at
such other times as the Trustee may request in writing, within 15 days after the receipt by the Company of any such request,
a list of similar form and content as of a date the Trustee may reasonably require.

 

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ARTICLE
6.

REMEDIES

 

Section
6.01         Events of Default.

 

Each of the following events shall be an
“Event of Default”:

 

(a)          the
Company’s failure to pay the principal of or any premium, if any, on any Note when due and payable on the Maturity Date,
upon declaration of acceleration or otherwise;

 

(b)          the
Company’s failure to comply with its obligations under Article 4 to pay or deliver the Settlement Amount owing upon conversion
of any Note (including any Additional Shares or cash in lieu thereof) within five calendar days;

 

(c)          the
Company’s failure to pay any interest on any Note when due, and such failure continues for a period of 30 days;

 

(d)          the
Company's failure to pay the Fundamental Change Purchase Price or the Redemption Price of any Note when due;

 

(e)          the
Company’s failure to issue a Fundamental Change Company Notice in accordance with the provisions of Section 3.02(a),
notice of a Make-Whole Fundamental Change in accordance with the provisions of Section 4.06(d), Redemption Notice in accordance
with the provisions of Section 10.02 or notice of a distribution in accordance with the provisions of Section 4.01(b)(iii);

 

(f)          the
Company’s failure to perform any other covenant required by the Company in this Indenture (other than a covenant or agreement
a default in whose performance or whose breach is specifically addressed in Sections 6.01(a) through (e) above) and such failure
continues for 60 days after written notice from the Trustee or the Holders of at least 25% in principal amount of the Notes then
Outstanding (a copy of which notice, if given by Holders, must also to be given to the Trustee) has been received by the Company;

 

(g)          any
indebtedness for money borrowed by, or any other payment obligation of, the Company or any of its Subsidiaries that is a Significant
Subsidiary of the Company (or any group of Subsidiaries that, taken together, would constitute a Significant Subsidiary of the
Company), in an outstanding principal amount, individually or in the aggregate, in excess of $5.0 million (or its foreign currency
equivalent at the time) (i) is not paid at final maturity, upon required repurchase, upon redemption or when otherwise due (except
upon acceleration that does not result from such a failure to pay) or (ii) is accelerated or otherwise is declared due and payable,
unless, in the case of this clause (ii), such indebtedness is discharged or the acceleration is cured, waived or rescinded within
30 days of the date on which such indebtedness was accelerated or was declared due and payable;

 

(h)          the
Company or any of its Subsidiaries that is a Significant Subsidiary of the Company (or any group of Subsidiaries that, taken together,
would constitute a Significant Subsidiary of the Company), fails to pay one or more final and non-appealable judgments entered
by a court or courts of competent jurisdiction, the aggregate uninsured or unbonded portion of which is in excess of $5.0 million,
provided that, no Event of Default will be deemed to occur under this clause (h) if such judgments are paid, discharged
or stayed within 60 days after (i) the date on which the right to appeal thereof has expired if no such appeal has commenced, or
(ii) the date on which all rights to appeal have been extinguished;

 

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(i)          the
Company or any of its Significant Subsidiaries (or any group of Subsidiaries that, taken together, would constitute a Significant
Subsidiary of the Company) (i) commences a voluntary case or other proceeding seeking the liquidation, reorganization or other
relief with respect to the Company or such Significant Subsidiary or its debts under any bankruptcy, insolvency or other similar
law now or hereafter in effect; (ii) seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official
of the Company or such Significant Subsidiary of the Company or any substantial part of the Company’s or such Significant
Subsidiary of the Company’s property, (iii) consents to any such relief or to the appointment of or taking possession by
any such official in an involuntary case or other proceeding commenced against it, (iv) makes a general assignment for the benefit
of creditors, or (v) fails generally to pay its debts as they become due; or

 

(j)          an
involuntary case or other proceeding is commenced against the Company or any of its Significant Subsidiaries (or any group of Subsidiaries
that, taken together, would constitute a Significant Subsidiary of the Company) (i) seeking liquidation, reorganization or other
relief with respect to the Company or such Significant Subsidiary of the Company or its debts under any bankruptcy, insolvency
or other similar law now or hereafter in effect or (ii) seeking the appointment of a trustee, receiver, liquidator, custodian or
other similar official of the Company or such Significant Subsidiary of the Company or any substantial part of its property, and
such involuntary case or other proceeding remains undismissed and unstayed for a period of 60 consecutive days.

 

Section
6.02         Acceleration; Rescission and Annulment.

 

(a)          If
an Event of Default (other than an Event of Default specified in Section 6.01(i) or Section 6.01(j) with respect to the
Company) occurs and is continuing, either the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes
then Outstanding may declare 100% of the principal of, premium, if any, and accrued and unpaid interest, if any, on all the Notes
then Outstanding to be due and payable immediately. If an Event of Default specified in Section 6.01(i) or Section 6.01(j)
with respect to the Company occurs, 100% of the principal of, premium, if any, and accrued and unpaid interest, if any, on all
Notes shall automatically become immediately due and payable.

 

(b)          Notwithstanding
anything to the contrary in Section 6.02(a), Section 6.04 or any other provision of this Indenture, if, at any time after the principal
of, and accrued and unpaid interest, if any, on, the Notes shall have been so declared due and payable in accordance with Section
6.02(a), and before any judgment or decree of a court of competent jurisdiction for the payment of the monies due shall have been
obtained, and each of the conditions set forth in the immediately following clauses (i), (ii) and (iii) is satisfied:

 

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(i)          the
Company delivers or deposits with the Trustee the amount of cash sufficient to pay all matured installments of principal and interest
upon all the Notes, and the principal of and accrued and unpaid interest, if any, on all Notes which shall have become due otherwise
than by acceleration (with interest on such principal and, to the extent that payment of such interest is enforceable under applicable
law, on overdue installments of interest, at the rate or rates, if any, specified in the Notes to the date of such payment or deposit),
and such amount as shall be sufficient to pay the Trustee its compensation and reimburse the Trustee for its reasonable expenses,
disbursements and advances (including the fees and expenses of its agents and counsel);

 

(ii)         rescission
and annulment would not conflict with any judgment or decree of a court of competent jurisdiction; and

 

(iii)        any
and all Events of Default under this Indenture, other than the non-payment of the principal of the Notes that became due because
of the acceleration, shall have been cured, waived or otherwise remedied as provided herein,

 

then, the Holders of a majority of the aggregate principal amount
of Notes then Outstanding, by written notice to the Company and to the Trustee, may waive all Defaults and Events of Default with
respect to the Notes (except for any Default or Event of Default arising from (a) the Company’s failure to pay principal
(including the Fundamental Change Purchase Price or Redemption Price) of, or any interest on, any Notes), (b) the Company’s
failure to pay or deliver the Settlement Amounts due upon conversion of any Note within the applicable time period set forth under
Section 4.03(a) or (c) the Company’s failure to comply with any provision of this Indenture the modification of which would
require the consent of the Holder of each Outstanding Note affected) and may rescind and annul the declaration of acceleration
resulting from such Defaults or Events of Default (except for any Default or Event of Default arising from (x) the Company’s
failure to pay principal (including the Fundamental Change Purchase Price or Redemption Price) of, or any interest on, any Notes),
(y) the Company’s failure to pay or deliver the Settlement Amounts due upon conversion of any Note within the applicable
time period set forth under Section 4.03(a) or (z) the Company’s failure to comply with any provision of this Indenture the
modification of which would require the consent of the Holder of each Outstanding Note affected) and their consequences; provided,
that no such rescission or annulment will extend to or will affect any subsequent Default or Event of Default or shall impair any
right consequent on such Default or Event of Default.

 

Section
6.03         Additional Interest.

 

(a)          Notwithstanding
Section 6.02, to the extent the Company elects, the sole remedy for an Event of Default under Section 6.01(f) relating
to the Company’s failure to comply with Section 5.04 (such Event of Default, a “Reporting Event of Default”),
will, for the 180 days after the occurrence of such Reporting Event of Default, consist exclusively of the right to receive Additional
Interest at an annual rate equal to (i) 0.25% per annum of the principal amount of the Notes then Outstanding commencing on the
date on which such a Reporting Event of Default first occurs and ending on the earlier of the date such Reporting Event of Default
is cured or waived or the 90th day following the occurrence of such Reporting Event of Default and (ii) 0.50% per annum of the
principal amount of such tranche of Notes outstanding commencing on the 91st day following the occurrence of such Reporting Event
of Default (if such Reporting Event of Default is continuing on such 91st day) and ending on the earlier of the date such Reporting
Event of Default is cured or waived or the 180th day following the occurrence of such Reporting Event of Default, in each case
payable in the same manner and on the same dates as the stated interest payable on the Notes.

 

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(b)          If
the Reporting Event of Default is continuing on the 181st day after the date on which such Reporting Event of Default occurred,
the Notes will be subject to acceleration as provided in Section 6.02(a).

 

(c)          In
order to elect to pay the Additional Interest as the sole remedy during the first 180 days after the occurrence of a Reporting
Event of Default, the Company must notify all Holders of Notes, the Trustee and the Paying Agent in writing of such election on
or before the Close of Business on the fifth Business Day prior to the date on which such Reporting Event of Default would otherwise
occur. Upon the Company’s failure to timely give such notice of such election or to pay the Additional Interest when due,
the Notes will be immediately subject to acceleration by declaration of the Trustee or the Holders of at least 25% in aggregate
principal amount of the Notes Outstanding as provided in Section 6.02. Nothing in this Section 6.03 shall affect the
rights of Holders of Notes in the event of the occurrence of any other Event of Default.

 

(d)          In
no event shall Additional Interest accruing pursuant to Sections 6.03(a) and 6.03(c) accrue on any day under the terms of
this Indenture (taking any such Additional Interest pursuant to Sections 6.03(a) and 6.03(c) together with any Additional Interest
pursuant to Section 5.08) at an annual rate in excess of 0.50% for any violation or Default caused by the Company’s failure
to be current in respect of its Exchange Act reporting obligations. Such Additional Interest will be payable in the same manner
and on the same dates as the stated interest payable on the Notes.

 

Section
6.04         Waiver of Past Defaults.

 

Subject to Section 6.02(b), the Holders
of not less than a majority of the aggregate principal amount of Notes then Outstanding, by written notice to the Company and to
the Trustee, may waive any Default or Event of Default (except for any Default or Event of Default arising from (a) the Company’s
failure to pay principal of, or any interest on, any Notes), (b) the Company’s failure to pay or deliver the Settlement Amounts
due upon conversion of any Note within the applicable time period set forth under Section 4.03(a), or (c) the Company’s failure
to comply with any provision of this Indenture the modification of which would require the consent of the Holder of each Outstanding
Note affected) and rescind any acceleration resulting from such Default or Event of Default and its consequences; provided,
that no such waiver will extend to or will affect any subsequent Default or Event of Default or shall impair any right consequent
on such Default or Event of Default.

 

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Section
6.05         Control by Majority.

 

The Trustee will not be obligated to exercise
any of its rights or powers at the request of the Holders unless such Holders have offered to the Trustee security or indemnity
satisfactory to the Trustee against any loss, liability or expense. Subject to this Indenture, applicable law and the Trustee’s
indemnification, the Holders of a majority in aggregate principal amount of the Outstanding Notes may direct in writing the time,
method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred
on the Trustee with respect to the Notes. The Trustee, however, may refuse to follow any direction that conflicts with law or this
Indenture or that the Trustee determines is unduly prejudicial to the rights of any Holder.

 

Section
6.06         Limitation on Suits.

 

Subject to Section 6.07, no Holder
will have any right to institute any proceeding under this Indenture, or for the appointment of a receiver or Trustee, or for any
other remedy under this Indenture or with respect to the Notes unless:

 

(a)          the
Holder has previously delivered to the Trustee written notice of a continuing Event of Default;

 

(b)          the
Holders of at least 25% in aggregate principal amount of the then Outstanding Notes deliver to the Trustee a written request that
the Trustee pursue a remedy with respect to such Event of Default and have offered indemnity reasonably satisfactory to the Trustee
to institute such proceeding as Trustee;

 

(c)          the
Trustee has failed to institute a proceeding within 60 days after such notice, request and offer; and

 

(d)          the
Trustee has not received from the Holders of a majority in aggregate principal amount of the then Outstanding Notes a direction
inconsistent with such written request within 60 days after such notice, request and offer.

 

Section
6.07         Rights of Holders to Receive Payment and to Convert.

 

Notwithstanding anything to the contrary
elsewhere in this Indenture, the above limitations set forth under Section 6.06 do not apply to a suit instituted by a Holder for
the enforcement of a payment of the principal (including the Fundamental Change Purchase Price or Redemption Price, if applicable)
of, or any accrued and unpaid interest on, any Note, on or after the applicable due date or the right to convert the Note or to
receive the Settlement Amounts due upon conversion in accordance with Article 4, and such right to receive any such payment or
delivery, as the case may be, on or after the applicable due dates shall not be impaired or affected without the consent of such
Holder. Payments of the Fundamental Change Purchase Price, Redemption Price, principal and interest that are not made when due
will accrue interest per annum at the then-applicable interest rate from the required payment date.

 

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Section
6.08         Collection of Indebtedness; Suit for Enforcement by Trustee.

 

If an Event of Default specified in Section 6.01(a),
6.01(b), 6.01(c) or 6.01(d) occurs and is continuing, the Trustee is authorized to recover judgment in its own name and as trustee
of an express trust against the Company for the whole amount of principal of, premium on, interest on, Fundamental Change Purchase
Price for, Redemption Price for and the Settlement Amounts due upon the conversion of the Notes and such further amount as is sufficient
to cover the costs and expenses of collection, including the compensation and reasonable expenses, disbursements and advances of
the Trustee, its agents and counsel, as well as any other amounts that may be due under Section 11.06.

 

Section
6.09         Trustee May Enforce Claims Without Possession of Notes.

 

All rights of action and claims under this
Indenture or the Notes may be prosecuted and enforced by the Trustee without the possession of any of the Notes or the production
thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name
as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the compensation, and reasonable
expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders in respect
of which such judgment has been recovered.

 

Section
6.10         Trustee May File Proofs of Claim.

 

The Trustee is authorized to file such proofs
of claim and other papers or documents as may be necessary or advisable to have the claims of the Trustee and the Holders allowed
in any judicial proceedings relative to the Company, its creditors or its property and, unless prohibited by law or applicable
regulations, will be entitled to collect, receive and distribute any money or other property payable or deliverable on any such
claims, and any custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee,
and, in the event that the Trustee consents to the making of such payments directly to the Holders, to pay to the Trustee any amount
due to it for the compensation and reasonable expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 11.06. To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 11.06
out of the estate in any such proceeding, will be denied for any reason, payment of the same will be secured by a lien on, and
is paid out of, any and all distributions, dividends, money, securities and other properties that the Holders may be entitled to
receive in such proceeding, whether in liquidation or under any plan of reorganization or arrangement or otherwise. Nothing herein
contained will be deemed to authorize the Trustee to authorize or consent to, or to accept or to adopt on behalf of any Holder,
any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to authorize
the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

Section
6.11         Restoration of Rights and Remedies.

 

If the Trustee or any Holder has instituted
any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination
in such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively to their former positions
hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had
been instituted.

 

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Section
6.12         Rights and Remedies Cumulative.

 

Except as otherwise provided with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Notes in Section 2.09, no right or remedy herein conferred
upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

Section
6.13         Delay or Omission Not a Waiver.

 

No delay or omission of the Trustee or of
any Holder to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute
a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article 6 or by law to the
Trustee or to the Holders may be exercised from time to time and as often as may be deemed expedient by the Trustee (subject to
the limitations contained in this Indenture) or by the Holders, as the case may be.

 

Section
6.14         Priorities.

 

If the Trustee collects any money or property
pursuant to this Article 6, it will pay out the money or property in the following order:

 

FIRST: to the Trustee, its agents and attorneys
for amounts due under Section 11.06, including payment of all compensation, expenses and liabilities incurred, and all advances
made, by the Trustee and the costs and expenses of collection;

 

SECOND: to the Holders, for any amounts
due and unpaid on the principal of, premium on, accrued and unpaid interest on, the Fundamental Change Purchase Price for, the
Redemption Price for and any cash due upon conversion of, any Note, without preference or priority of any kind, according to such
amounts due and payable on all of the Notes; and

 

THIRD: the balance, if any, to the Company
or to such other party as a court of competent jurisdiction directs.

 

The Trustee may fix a record date and payment
date for any payment to the Holders pursuant to this Section 6.14. If the Trustee so fixes a record date and a payment date,
at least 15 calendar days prior to such record date, the Trustee will deliver to each Holder (at the Company's cost and expense)
a written notice, which notice will state such record date, such payment date and the amount of such payment.

 

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Section
6.15         Undertaking for Costs.

 

All parties to this Indenture agree, and
each Holder, by such Holder’s acceptance of a Note, shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any
action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant;
provided, however, that the provisions of this Section 6.15 shall not apply to (i) any suit instituted by the
Trustee, (ii) any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in aggregate principal
amount of the Notes then Outstanding, (iii) any suit instituted by any Holder for the enforcement of the payment of the principal
(including the Fundamental Change Purchase Price or Redemption Price) of, or any interest on, any Note on or after the applicable
due date expressed or provided for in this Indenture, (iv) any suit for the enforcement of the right to convert any Note or to
receive the Settlement Amounts due upon conversion of any Note in accordance with the provisions of Article 4, or (v) any suit
for the enforcement of the right of a beneficial owner to exchange its beneficial interest in a Global Note for a Physical Note
if an Event of Default has occurred and is continuing in accordance with Section 2.11.

 

Section
6.16         Waiver of Stay, Extension and Usury Laws.

 

The Company covenants that, to the extent
that it may lawfully do so, it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may affect the covenants
or the performance of this Indenture; and the Company, to the extent that it may lawfully do so, hereby expressly waives all benefit
or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution
of any power herein granted to the Trustee, but will instead suffer and permit the execution of every such power as though no such
law has been enacted.

 

Section
6.17         Notices from the Trustee.

 

If a Default occurs and is continuing and
is known to the Trustee, the Trustee must send notice of such Default to each Holder within 90 days after such Event of Default
has occurred. Except in the case of a Default in the payment of the principal of, premium, if any, or interest on any Note or of
a Default in the payment or delivery of the Settlement Amounts due upon conversion of any Note, the Trustee may withhold notice
if and so long as the Trustee in good faith determines that withholding notice is in the interests of the Holders.

 

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ARTICLE
7.

SATISFACTION AND DISCHARGE

 

Section
7.01         Discharge of Liability on Notes.

 

When (a) the Company shall deliver
to the Registrar for cancellation all Notes theretofore authenticated (other than any Notes that have been destroyed, lost or stolen
and in lieu of or in substitution for which other Notes shall have been authenticated and delivered) and not theretofore canceled,
or (b) all the Notes not theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable
(whether on the Maturity Date, on any Fundamental Change Purchase Date, on any Redemption Date, upon conversion or otherwise) and
the Company shall deposit with the Trustee, in trust, or deliver to the Holders, as applicable, an amount of cash (and, to the
extent applicable, deliver to the Holders a number of shares of Common Stock to satisfy the Company’s obligations with respect
to outstanding conversions), sufficient to pay all amounts due on all of such Notes (other than any Notes that shall have been
mutilated, destroyed, lost or stolen and in lieu of or in substitution for which other Notes shall have been authenticated and
delivered) not theretofore canceled or delivered to the Trustee for cancellation, including principal and interest due, accompanied,
except in the event the Notes are due and payable solely in cash at the Maturity Date or upon an earlier Fundamental Change Purchase
Date or Redemption Date, by a verification report as to the sufficiency of the deposited amount from an independent certified accountant
or other financial professional reasonably satisfactory to the Trustee, and the Company shall have paid or caused to be paid all
other sums payable hereunder by the Company, then this Indenture shall cease to be of further effect (except as to (i) rights
hereunder of Holders to receive all amounts owing upon the Notes and the other rights, duties and obligations of Holders, as beneficiaries
hereof with respect to the amounts, if any, so deposited with the Trustee and (ii) the rights, obligations, indemnities and
immunities of the Trustee hereunder and the obligations of the Company in respect thereof), and the Trustee, on written demand
of the Company accompanied by an Officer’s Certificate and an Opinion of Counsel and at the cost and expense of the Company,
shall execute instruments acknowledging satisfaction and discharge of this Indenture. Notwithstanding the foregoing, the Company
hereby agrees to reimburse the Trustee for any costs or expenses thereafter incurred by the Trustee, including the reasonable fees
and expenses of its counsel, and to compensate the Trustee for any services thereafter rendered by the Trustee in connection with
this Indenture or the Notes.

 

Section
7.02         Deposited Monies to Be Held in Trust by Trustee.

 

Subject to Section 7.04, all monies
deposited with the Trustee pursuant to Section 7.01 shall be held in trust for the sole benefit of the Holders of the Notes,
and such monies and shall be applied by the Trustee to the payment, either directly or through any Paying Agent (including the
Company if acting as its own Paying Agent), to the Holders of the particular Notes for the payment of all sums or amounts due and
to become due thereon for principal and interest, if any.

 

Section
7.03         Paying Agent to Repay Monies Held.

 

Upon the satisfaction and discharge of this
Indenture, all excess monies then held by any Paying Agent (if other than the Trustee) shall, upon written request of the Company,
be repaid to it or paid to the Trustee, and thereupon such Paying Agent shall be released from all further liability with respect
to such amounts.

 

Section
7.04         Return of Unclaimed Monies.

 

Subject to the requirements of applicable
law, any monies deposited with or paid to the Trustee for payment of the principal of or interest, if any, on the Notes and not
applied but remaining unclaimed by the Holders of the Notes for two (2) years after the date upon which the principal of or
interest, if any, on such Notes, as the case may be, shall have become due and payable, shall be repaid to the Company by the Trustee
on written demand, and all liability of the Trustee shall thereupon cease with respect to such monies; and the Holders shall thereafter
look only to the Company for any payment that such Holder may be entitled to collect unless an applicable abandoned property law
designates another person.

 

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Section
7.05       Reinstatement.

 

If the Trustee or the Paying Agent is unable
to apply any monies in accordance with Section 7.02 by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture and the
Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 7.01 until such time as the Trustee
or the Paying Agent is permitted to apply all such amounts in accordance with Section 7.02; provided, however,
that if the Company makes any payment of interest on, principal of or delivery in respect of any Note following the reinstatement
of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the
monies held by the Trustee or Paying Agent.

 

ARTICLE
8.

SUPPLEMENTAL
INDENTURES

 

Section
8.01       Supplemental Indentures Without Consent of Holders.

 

Without the consent of any Holder, the Company
(when authorized by a Board Resolution) and the Trustee, at any time and from time to time, may enter into one or more indentures
supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes:

 

(a)        to
cure any ambiguity, omission, defect or inconsistency in this Indenture or the Notes;

 

(b)        to
evidence the succession by a Successor Company and to provide for the assumption by a Successor Company of the Company’s
obligations under this Indenture;

 

(c)       to
add guarantees with respect to the Notes;

 

(d)       to
secure the Notes;

 

(e)        to
add to the Company’s covenants such further covenants, restrictions or conditions for the benefit of the Holders or surrender
any right or power conferred upon the Company by this Indenture;

 

(f)        to
make any change that does not adversely affect the rights of any Holder;

 

(g)       to
conform the terms of this Indenture or the Notes to the description thereof in the Preliminary Offering Memorandum, as supplemented
by the pricing term sheet related to the offering of the Initial Notes as evidenced by an Officer’s Certificate from the
Company to the Trustee; or

 

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(h)        upon
the occurrence of an event described in Section 4.07(a), solely (i) to provide that such Notes are convertible into Reference Property,
subject to the provisions in Sections 4.03 and 4.07, and (ii) to effect the related changes to the terms of such Notes under Section
4.07.

 

Section
8.02       Supplemental Indentures With Consent of Holders.

 

With the consent of the Holders of not less
than a majority in aggregate principal amount of the Outstanding Notes (including, without limitation, consents obtained in connection
with a purchase of, or tender or exchange offer for, Notes) and by Act of said Holders delivered to the Company and the Trustee,
the Company, and the Trustee may amend the Notes or enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any
manner the rights of the Holders under this Indenture, and the Holder of a majority in aggregate principal amount of the Outstanding
Notes may waive the Company’s compliance with any provision herein without notice to the other Holders; provided,
however, that no such amendment, supplement or waiver shall, without the consent of the Holder of each Outstanding Note
affected thereby:

 

(a)        change
the stated Maturity Date of the principal of or any interest on the Notes;

 

(b)        reduce
the principal amount of or interest on the Notes;

 

(c)        reduce
the amount of principal payable upon acceleration of the Maturity Date of any Note;

 

(d)        change
the place or currency of payment of principal of or interest on any Note;

 

(e)        impair
the right of any Holder to receive payment of principal of and interest on its Notes on or after the due dates therefor or to institute
suit for the enforcement of any payment on, or with respect to, such Holder’s Notes;

 

(f)         modify
the provisions with respect to the purchase rights of Holders as described in Section 3.01 in a manner adverse to Holders or the
provisions with respect to redemption rights of the Company as described under Article 10;

 

(g)        modify
the ranking provisions of this Indenture;

 

(h)        make
any change that impairs or adversely affects the right of Holders to convert their Notes; or

 

(i)         make
any change to the provisions of this Article 8 which require each Holder’s consent or in the waiver provisions in Section 6.04
of this Indenture except to increase the percentage required for modification, amendment or waiver or to provide for consent of
each affected Holder of Outstanding Notes.

 

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It shall not be necessary for any Act or
consent of Holders under this Section 8.02 to approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act or consent shall approve the substance thereof.

 

Section
8.03       Notice of Amendment or Supplement.

 

After an amendment or supplement under this
Article 8 becomes effective, the Company shall provide to the Holders a written notice briefly describing such amendment or supplement.
However, the failure to give such notice to all the Holders, or any defect in the notice, shall not impair or affect the validity
of the amendment or supplement.

 

Section
8.04       Trustee to Sign Amendments, Etc.

 

The Trustee shall sign any amendment or
supplement authorized pursuant to this Article 8 if the amendment or supplement does not adversely affect the rights, duties, liabilities
or immunities of the Trustee. If it does, the Trustee may, but need not, sign it. In signing or refusing to sign such amendment
or supplement, the Trustee shall receive, and shall be fully protected in conclusively relying upon, an Officer’s Certificate
and an Opinion of Counsel provided at the expense of the Company providing that such amendment or supplement is authorized or permitted
by this Indenture and such amendment or supplement is a legal, valid and binding obligation of the Company enforceable against
the Company in accordance with its terms.

 

ARTICLE
9.

SUCCESSOR
COMPANY

 

Section
9.01       Company May Consolidate, Etc. on Certain Terms.

 

Subject to the provisions of Section 9.03,
the Company shall not consolidate with, enter into a binding share exchange with, or merge with or into, another Person or sell,
assign, convey, transfer, lease or otherwise dispose of its properties and assets substantially as an entirety to another Person,
unless:

 

(a)        the
resulting, surviving transferee or successor Person (the “Successor Company”), if not the Company, is a corporation
organized and existing under the laws of the U.S., any state of the U.S. or the District of Columbia and the Successor Company
expressly assumes, by supplemental indenture, executed and delivered to the Trustee, in form satisfactory to the Trustee, all of
the obligations of the Company under the Notes and this Indenture;

 

(b)        immediately
after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing under this Indenture
with respect to the Notes;

 

(c)       all
other conditions specified in this Article 9 are met.

 

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Upon any such consolidation, merger, binding
share exchange, sale, assignment, conveyance, transfer, lease or other disposition to another Person, the Successor Company (if
not the Company) shall succeed to, and may exercise every right and power of the Company under this Indenture.

 

Section
9.02      Successor Corporation to Be Substituted.

 

In case of any such consolidation, merger,
binding share exchange, sale, assignment, conveyance, transfer, lease or other disposition to another Person and upon the assumption
by the Successor Company (if other than the Company), by supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the due and punctual payment of the principal of and premium (including any Fundamental Change Purchase
Price or Redemption Price), if any, and accrued and unpaid interest, if any, on all of the Notes, the due and punctual payment
or delivery of any Settlement Amount due upon conversion of the Notes and the due and punctual performance of all of the covenants
and conditions of this Indenture to be performed by the Company under this Indenture, such Successor Company shall succeed to and
be substituted for, and may exercise every right and power of, the Company under this Indenture, with the same effect as if it
had been named herein as the party of the first part; provided, however, that in the case of a sale, assignment,
conveyance, transfer, lease or other disposition to one or more of its Subsidiaries of all or substantially all of the properties
and assets of the Company, the Notes will remain convertible based on the Settlement Amount, in accordance with Section 4.03,
but subject to adjustment (if any) in accordance with Section 4.06. Such Successor Company thereupon may cause to be signed,
and may issue either in its own name or in the name of the Company any or all of the Notes issuable hereunder which theretofore
shall not have been signed by the Company and delivered to the Trustee; and, upon the order of such Successor Company instead of
the Company and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate
and shall deliver, or cause to be authenticated and delivered, any Notes that previously shall have been signed and delivered by
the Officers of the Company to the Trustee for authentication, and any Notes that such Successor Company thereafter shall cause
to be signed and delivered to the Trustee for that purpose. All the Notes so issued shall in all respects have the same legal rank
and benefit under this Indenture as the Notes theretofore or thereafter issued in accordance with the terms of this Indenture as
though all of such Notes had been issued at the date of the execution hereof. In the event of such consolidation, merger, binding
share exchange, sale, assignment, conveyance, transfer or other disposition to another Person (but not in the case of a lease),
the Person named as the “Company” in the first paragraph of this Indenture or any successor that shall thereafter have
become such in the manner prescribed in this Article 9 may be dissolved, wound up and liquidated at any time thereafter and, except
in the case of a lease, such Person shall be released from its liabilities as obligor and maker of the Notes and from its obligations
under this Indenture.

 

In case of any such consolidation, merger,
binding share exchange, sale, assignment, conveyance, transfer, lease or other disposition to another Person, such changes in phraseology
and form (but not in substance) may be made in the Notes thereafter to be issued as may be appropriate.

 

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Section
9.03      Officer’s Certificate and Opinion of Counsel to Be Given to Trustee.

  

In the case of any such consolidation, merger,
binding share exchange, sale, assignment, conveyance, transfer, lease or other disposition pursuant to Section 9.01, the Trustee
shall receive an Officer’s Certificate and an Opinion of Counsel stating that any such consolidation, merger, binding share
exchange, sale, assignment, conveyance, transfer, lease or other disposition and any such assumption and, if a supplemental indenture
is required in connection with such transaction, such supplemental indenture, complies with the provisions of this Indenture and
an Opinion of Counsel stating that any such supplemental indenture is the valid, binding and enforceable obligation of the Successor
Company.

 

ARTICLE
10.

Optional
REDEMPTION

 

Section
10.01     Redemption.

 

The Company shall not be permitted to redeem
the Notes prior to December 19, 2017, and no sinking fund is provided for the Notes. On or after December 19, 2017, the Company
may from time to time redeem (an “Optional Redemption”) any or all of the Notes, except for any Notes that the
Company is required to purchase pursuant to Article 3, in cash at a redemption price equal to 100% of the principal amount of the
Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the Redemption Date (the “Redemption
Price”) (unless the Redemption Date falls after a Regular Record Date but on or prior to the related Interest Payment
Date, in which case the Company shall not pay accrued and unpaid interest to the Holder of the Notes being redeemed, and will instead
pay the full amount of accrued and unpaid Interest to the Holder of record as of the Close of Business on such Regular Record Date);
provided, that the Notes shall only be redeemable pursuant to this Article 10 if the Closing Sale Price of the Common Stock
for at least 20 Trading Days (whether or not consecutive) during the 30 consecutive Trading-Day period ending on the Trading Day
immediately preceding the date on which the Company provides a Redemption Notice exceeds 150% of the Conversion Price on each applicable
Trading Day.

 

Section
10.02     Notice of Optional Redemption.

 

(a)        In
case the Company exercises its Optional Redemption right to redeem all or, as the case may be, any part of the Notes pursuant to
Section 10.01, (i) the Company shall fix a date for redemption which must be a Business Day (each, a “Redemption Date”),
and (ii) the Company shall send a written notice of such Optional Redemption (a “Redemption Notice”) to the
Holders of Notes at their addresses set forth in the Register (or, in the case of Global Notes, send in accordance with the Applicable
Procedures), the Trustee and the Conversion Agent not more than 60 calendar days but not less than 30 calendar days prior to the
Redemption Date (the date on which such Redemption Notice is delivered, the “Redemption Notice Date”).

 

(b)       Each
Redemption Notice shall specify:

 

(i)          the
Redemption Date;

 

(ii)         the
Redemption Price;

 

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(iii)        that
Holders may surrender their Notes for conversion upon satisfaction of the requirements set forth in this Indenture;

 

(iv)        the
Conversion Rate and, if applicable, the number of Additional Shares under Section 4.06;

 

(v)         the
time at which the Holders’ right to convert the Notes called for redemption will expire, which will be the Close of Business
on the Business Day immediately preceding the Redemption Date;

 

(vi)        the
aggregate principal amount of Notes to be redeemed, and whether less than all of the Outstanding Notes are to be redeemed;

 

(vii)       the
procedures a converting Holder must follow to convert its Notes;

 

(viii)      that
on the Redemption Date, the Redemption Price will become due and payable upon each such Note, and unless the Company defaults on
the payment of the Redemption Price that interest thereon, if any, shall cease to accrue on and after said date;

 

(ix)         the
place or places where such Notes are to be surrendered for payment of the Redemption Price; and

 

(x)          the
CUSIP, ISIN or other similar numbers, if any, assigned to such Notes.

 

(c)        Substantially
concurrently with providing such Redemption Notices, the Company shall issue a press release containing the information set forth
in this Section and publish such information on the Company’s website or through such other public medium as the Company
may use at that time. If less than all of the Outstanding Notes are to be redeemed, and the Notes are Global Notes, the Notes to
be redeemed will be selected by the Depositary in accordance with the Applicable Procedures. If the Notes to be redeemed are not
Global Notes, the Trustee shall select the Notes to be redeemed in principal amounts of $1,000 or an integral multiple of $1,000
in excess thereof by lot, pro rata or by another method the Trustee considers fair and appropriate in accordance with its customary
procedures and, if applicable, the Applicable Procedures. If a portion of a Holder’s Notes are selected for redemption and
such Holder converts a portion of its Notes, such converted portion will be deemed to be of the portion selected for redemption.

 

Section
10.03     Restrictions on Redemption.

 

Notwithstanding anything to the contrary
herein, the Company may not redeem any Notes if it has failed to pay any interest due on the notes and such failure to pay is continuing,
or if the principal amount of the Notes has been accelerated (except in the case of an acceleration resulting from a Default by
the Company in the payment of the Redemption Price with respect to such Notes) and such acceleration has not been rescinded, in
either case, on or prior to the Redemption Date.

 

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Section
10.04     Payment of Notes Called for Redemption.

 

(a)        If
any Redemption Notice has been given in respect of the Notes in accordance with Section 10.02, the Notes shall become due and payable
on the Redemption Date at the place of payment and at the applicable Redemption Price. On presentation and surrender of the Notes
at the place of payment, the Notes shall be paid and redeemed by the Company at the applicable Redemption Price. In the case of
any redemption in part, the Company shall execute and the Trustee shall, upon receipt of an Officer’s Certificate and Company
Order, authenticate and deliver to or upon the written order of the Holder of the Note so surrendered, without charge to such Holder,
a new Note or Notes in authorized denominations in an aggregate principal amount equal to the unredeemed portion of the Note so
surrendered.

 

(b)       Prior
to 11:00 a.m., New York City time, on the Redemption Date, the Company shall deposit with the Paying Agent (or, if the Company
or a Subsidiary or an Affiliate of either of them is acting as the Paying Agent, shall segregate and hold in trust as provided
herein) an amount of cash (in immediately available funds if deposited on the Redemption Date) sufficient to pay the Redemption
Price of all of the Notes to be redeemed on such Redemption Date. Subject to receipt of funds by the Paying Agent, payment for
any Note to be redeemed shall be made on the Redemption Date for such Note or, if later, at the time of presentation of such Note
to the Trustee (or other Paying Agent appointed by the Company) by the Holder thereof in the manner required by this Section 10.04.
Commencing on the Redemption Date, if the Company has deposited, or has segregated and is holding in trust, such funds, the Notes
to be redeemed shall cease to accrue interest. The Paying Agent shall, promptly following such payment and upon written demand
by the Company, return to the Company any funds in excess of the Redemption Price.

 

ARTICLE
11.

THE
TRUSTEE

 

Section
11.01    Duties and Responsibilities of
Trustee.

 

(a)       The
Trustee, prior to the occurrence of an Event of Default and after the curing of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are specifically set forth in this Indenture and no implied covenants
or obligations shall be read into this Indenture against the Trustee. In case an Event of Default has occurred (which has not been
cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture and use the same degree
of care in its exercise as a prudent person would use in the conduct of his or her own affairs.

 

(b)        Prior
to the occurrence of an Event of Default and after the curing or waiving of all Events of Default which may have occurred:

 

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(i)          the
duties and obligations of the Trustee shall be determined solely by the express provisions of this Indenture and applicable law,
and the Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in
this Indenture and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

 

(ii)         in
the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but, in the case of any such certificates or opinions which by any provisions hereof are specifically
required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Indenture (but need not confirm or investigate the accuracy of any mathematical calculations
or other facts stated therein).

 

(c)          No
provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct, except that:

 

(i)          this
subsection (c) does not limit the effect of this Section 11.01;

 

(ii)         the
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Officers of the Trustee, unless
the Trustee was negligent in ascertaining the pertinent facts; and

 

(iii)        the
Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the
written direction of the Holders of not less than a majority in principal amount of the Notes at the time Outstanding determined
as provided in Section 1.03 relating to the time, method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture;

 

(d)          Whether
or not therein provided, every provision of this Indenture relating to the conduct or affecting the liability of, or affording
protection to, the Trustee shall be subject to the provisions of this Section 11.01.

 

(e)          The
Trustee shall not be liable in respect of any payment (as to the correctness or calculation of amount, entitlement to receive or
any other matters relating to payment) or notice effected by the Company or any Paying Agent or any records maintained by any co-Registrar
with respect to the Notes.

 

(f)          If
any party fails to deliver a notice relating to an event the fact of which, pursuant to this Indenture, requires notice to be sent
to the Trustee, the Trustee may conclusively rely on its failure to receive such notice as reason to act as if no such event occurred.

 

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(g)          None
of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties or in the exercise of any of its rights or powers if there is reasonable
ground for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured
to it.

 

Section
11.02    Rights of the Trustee.

 

(a)       The
Trustee may conclusively rely and shall be protected in acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, bond, debenture, note, coupon or other paper or document (whether in its original or facsimile
form) believed by it in good faith to be genuine and to have been signed or presented by the proper party or parties.

 

(b)       Any
request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by an Officer’s Certificate
(unless other evidence in respect thereof be herein specifically prescribed); and any resolution of the Board of Directors may
be evidenced to the Trustee by a Board Resolution.

 

(c)       The
Trustee may consult with counsel of its own selection and any advice or Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken or omitted by it hereunder in good faith and in accordance with such advice or Opinion
of Counsel.

 

(d)       The
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order
or direction of any of the Holders pursuant to the provisions of this Indenture (including upon the occurrence and during the continuance
of an Event of Default), unless such Holders shall have offered to the Trustee indemnity or security satisfactory to the Trustee
against any loss, expenses and liabilities which may be incurred therein or thereby.

 

(e)       The
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document, but the Trustee,
in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises
of the Company, personally or by agent or attorney (at the reasonable expense of the Company and shall incur no liability of any
kind by reason of such inquiry or investigation).

 

(f)        The
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents
or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed
by it with due care hereunder.

 

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(g)       The
Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and reasonably believed
by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture.

 

(h)       In
no event shall the Trustee be responsible or liable for special, indirect, consequential or punitive loss or damage of any kind
whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood
of such loss or damage and regardless of the form of action.

 

(i)        The
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a default is received by a Responsible Officer of
the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Notes and the Indenture.

 

(j)        The
rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified,
are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each Agent, custodian and other
Person employed to act hereunder.

 

(k)       The
Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder.

 

(l)        The
Trustee may request that the Company deliver an Officer’s Certificate setting forth the names of individuals and/or titles
of officers authorized at such time to take specified actions pursuant to this Indenture.

 

Section
11.03     Trustee’s Disclaimer.

 

The recitals contained herein and in the
Notes (except in the Trustee’s certificate of authentication) shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for the correctness of the same. The Trustee makes no representations as to the validity or sufficiency
of this Indenture or of the Notes. The Trustee shall not be accountable for the use or application by the Company of any Notes
or the proceeds of any Notes authenticated and delivered by the Trustee under this Indenture and the Trustee shall not be responsible
for any statement of the Company in this Indenture or in any document issued in connection with the sale of the Notes.

 

Section
11.04    Trustee or Agents May Own Notes.

 

The Trustee or any Agent, in its individual
or any other capacity, may become the owner or pledgee of Notes with the same rights it would have if it were not Trustee or Agent.

 

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Section 11.05    Monies
to be Held in Trust.

 

Subject to the provisions of Section 7.02,
all monies and properties received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes
for which they were received. Money held by the Trustee in trust hereunder need not be segregated from other funds except to the
extent required by law. The Trustee shall be under no liability for interest on or the investment of any money received by it hereunder
except as may be agreed in writing from time to time by the Company and the Trustee.

 

Section
11.06    Compensation and Expenses of
Trustee.

 

The Company covenants and agrees to pay
to the Trustee from time to time, and the Trustee shall be entitled to, such compensation for all services rendered by it hereunder
in any capacity (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust)
as mutually agreed to from time to time in writing between the Company and the Trustee, and the Company will pay or reimburse the
Trustee upon its request for all reasonable expenses, disbursements and advances reasonably incurred or made by the Trustee in
accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements
of its counsel and of all Persons not regularly in its employ) except any such expense, disbursement or advance as may arise from
its own gross negligence or willful misconduct, as determined by a final order of a court of competent jurisdiction.

 

The Company also covenants to indemnify
each of the Trustee and the Agents (and their respective officers, directors and employees), in any capacity under this Indenture
and their respective agents for, and to hold each of them harmless from and against, any and all loss, liability, claim, damage,
cost or expense incurred without gross negligence or willful misconduct, as determined by a final order of a court of competent
jurisdiction on its own part and arising out of or in connection with the acceptance or administration of this trust and the performance
of its duties and/or the exercise of its rights hereunder or in any other capacity hereunder, including the costs and expenses
of defending itself against any claim (whether asserted by the Company, a Holder or any other Person) of liability in the premises.
The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify
the Company shall not relieve the Company of its obligations hereunder. The Company shall defend the claim and the Trustee shall
cooperate in the defense. The Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of such
counsel. The Company need not pay for any settlement made without its consent.

 

The obligations of the Company under this
Section 11.06 to compensate or indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances
shall be secured by a lien prior to that of the Notes upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the benefit of the Holders of particular Notes. The obligation of the Company under this Section 11.06
shall survive the payment of the Notes, the satisfaction and discharge of this Indenture and/or the resignation or removal of the
Trustee.

 

When the Trustee, any Agent, and any of
their respective agents incur expenses or render services after an Event of Default specified in Section 6.01(i) and 6.01(j) with
respect to the Company occurs, the expenses and the compensation for the services are intended to constitute expenses of administration
under any bankruptcy, insolvency or similar laws.

 

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Section
11.07    Officer’s Certificate as Evidence.

 

Subject to Section 11.01, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or
established prior to taking or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of bad faith on the part of the Trustee, be deemed to be conclusively proved and established by
an Officer’s Certificate delivered to the Trustee.

 

Section
11.08    Conflicting Interests of Trustee.

 

If the Trustee has or shall acquire a conflicting
interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent
and in the manner provided by, and subject to the provisions of, this Indenture.

 

Section
11.09     Eligibility of Trustee.

 

There shall at all times be a Trustee hereunder
which shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus
of at least $50,000,000 (or if such Person is a member of a bank holding company system, its bank holding company shall have a
combined capital and surplus of at least $50,000,000). If such Person publishes reports of condition at least annually, pursuant
to law or to the requirements of any supervising or examining authority, then for the purposes of this Section 11.09 the combined
capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report
of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section
11.09, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

 

Section
11.10    Resignation or Removal of Trustee.

 

(a)        The
Trustee may at any time resign by giving written notice of such resignation to the Company and to the Holders of Notes. Upon receiving
such notice of resignation, the Company shall promptly appoint a successor trustee by written instrument, in duplicate, executed
by order of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee. If no successor trustee shall have been so appointed and have accepted appointment thirty (30) days after such
notice of resignation is given to the Company and the Holders, the resigning Trustee may, upon ten (10) Business Days’ notice
to the Company and the Holders, appoint a successor identified in such notice or may petition, at the expense of the Company, any
court of competent jurisdiction for the appointment of a successor trustee, or, if any Holder who has been a bona fide Holder of
a Note or Notes for at least six (6) months may, subject to the provisions of Section 6.15, on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor trustee. Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, appoint a successor trustee.

  

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(b)       In
case at any time any of the following shall occur:

 

(i)          the
Trustee shall fail to comply with Section 11.08 after written request therefor by the Company or by any Holder who has been a bona
fide Holder of a Note or Notes for at least six (6) months; or

 

(ii)         the
Trustee shall cease to be eligible in accordance with the provisions of Section 11.09 and shall fail to resign after written request
therefor by the Company or by any such Holder; or

 

(iii)        the
Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its
property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for
the purpose of rehabilitation, conservation or liquidation;

 

then, in any such case, the Company
may remove the Trustee and appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors,
one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, subject to
the provisions of Section 6.15, any Holder who has been a bona fide Holder of a Note or Notes for at least six (6) months may,
on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor trustee; provided, however, that if no successor Trustee shall have been appointed and
have accepted appointment thirty (30) days after either the Company or the Holders has removed the Trustee, the Trustee so removed
may petition at the Company’s expense any court of competent jurisdiction for an appointment of a successor trustee. Such
court may thereupon, after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor
trustee.

 

(c)      The
Holders of a majority in aggregate principal amount of the Notes at the time Outstanding may at any time remove the Trustee and
nominate a successor trustee which shall be deemed appointed as successor trustee unless, within ten (10) days after notice to
the Company of such nomination, the Company objects thereto, in which case the Trustee so removed or any Holder, or if such Trustee
so removed or any Holder fails to act, the Company, upon the terms and conditions and otherwise as in Section 11.10(a) provided,
may petition any court of competent jurisdiction for an appointment of a successor trustee.

 

(d)       Any
resignation or removal of the Trustee and appointment of a successor trustee pursuant to any of the provisions of this Section
11.10 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 11.11.

  

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Section
11.11     Acceptance by Successor Trustee.

 

Any successor trustee appointed as provided
in Section 11.10 shall execute, acknowledge and deliver to the Company and to its predecessor trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor
trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations of
its predecessor hereunder, with like effect as if originally named as trustee herein; but, nevertheless, on the written request
of the Company or of the successor trustee, the trustee ceasing to act shall, upon payment of any amount then due it pursuant to
the provisions of Section 11.06, execute and deliver an instrument transferring to such successor trustee all the rights and powers
of the trustee so ceasing to act. Upon request of any such successor trustee, the Company shall execute any and all instruments
in writing for more fully and certainly vesting in and confirming to such successor trustee all such rights and powers. Any trustee
ceasing to act shall, nevertheless, retain a lien upon all property and funds held or collected by such trustee as such, except
for funds held in trust for the benefit of Holders of particular Notes, to secure any amounts then due it pursuant to the provisions
of Section 11.06.

 

No successor trustee shall accept appointment
as provided in this Section 11.11 unless, at the time of such acceptance, such successor trustee shall be qualified under the provisions
of Section 11.08 and be eligible under the provisions of Section 11.09.

 

Upon acceptance of appointment by a successor
trustee as provided in this Section 11.11, the Company (or the former trustee, at the written direction of the Company) shall give
or cause to be given notice of the succession of such trustee hereunder to the Holders of Notes in accordance with Section 12.08(c).
If the Company fails to give such notice within ten (10) days after acceptance of appointment by the successor trustee, the successor
trustee shall cause such notice to be given at the expense of the Company.

 

Section
11.12     Succession by Merger, Etc.

 

Any corporation into which the Trustee may
be merged or exchanged or with which it may be consolidated, or any corporation resulting from any merger, exchange or consolidation
to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business
of the Trustee (including any trust created by this Indenture), shall be the successor to the Trustee hereunder without the execution
or filing of any paper or any further act on the part of any of the parties hereto, provided that in the case of any corporation
succeeding to all or substantially all of the corporate trust business of the Trustee, such corporation shall be qualified under
the provisions of Section 11.08 and eligible under the provisions of Section 11.09.

 

In case at the time such successor to the
Trustee shall succeed to the trusts created by this Indenture, any of the Notes shall have been authenticated but not delivered,
any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee or authenticating agent
appointed by such predecessor trustee, and deliver such Notes so authenticated; and in case at that time any of the Notes shall
not have been authenticated, any successor to the Trustee or any authenticating agent appointed by such successor trustee may authenticate
such Notes in the name of the successor trustee; and in all such cases such certificates shall have the full force that is provided
in the Notes or in this Indenture; provided, however, that the right to adopt the certificate of authentication of any predecessor
Trustee or authenticate Notes in the name of any predecessor Trustee shall apply only to its successor or successors by merger,
exchange or consolidation.

 

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Section
11.13     Preferential Collection of Claims.

 

If and when the Trustee shall be or become
a creditor of the Company (or any other obligor upon the Notes), the Trustee shall be subject to the provisions of the Trust Indenture
Act regarding the collection of the claims against the Company (or any such other obligor).

 

Section
11.14    Trustee’s Application for Instructions from the Company.

 

Any application by the Trustee for written
instructions from the Company (other than with regard to any action proposed to be taken or omitted to be taken by the Trustee
that affects the rights of the Holders of the Notes under this Indenture) may, at the option of the Trustee, set forth in writing
any action proposed to be taken or omitted by the Trustee under this Indenture and the date on and/or after which such action shall
be taken or such omission shall be effective. The Trustee shall not be liable for any action taken by, or omission of, the Trustee
in accordance with a proposal included in such application on or after the date specified in such application (which date shall
not be less than three (3) Business Days after the date any officer of the Company actually receives such application, unless any
such officer shall have consented in writing to any earlier date) unless prior to taking any such action (or the effective date
in the case of an omission), the Trustee shall have received written instructions in response to such application specifying the
action to be taken or omitted.

 

ARTICLE
12.

MISCELLANEOUS

 

Section
12.01    Effect on Successors and Assigns.

 

All agreements of the Company, the Trustee,
the Registrar, the Paying Agent and the Conversion Agent in this Indenture and the Notes will bind their respective successors.

 

Section
12.02    Governing Law.

 

This Indenture and the Notes, and any claim,
controversy or dispute arising under or related to this Indenture or the Notes, will be governed by, and construed in accordance
with, the laws of the State of New York, (without regard to the conflicts of laws provisions thereof other than Section 5-1401
of the General Obligations Law).

 

Section
12.03    No Note Interest Created.

 

Nothing in this Indenture or in the Notes,
expressed or implied, shall be construed to constitute a security interest under the Uniform Commercial Code or similar legislation,
as now or hereafter enacted and in effect, in any jurisdiction.

 

Section
12.04    Trust Indenture Act.

 

If any provision hereof limits, qualifies
or conflicts with a provision of the Trust Indenture Act that is required under such Act to be a part of and govern this Indenture,
the latter provision shall control. If any provision of this Indenture modifies or excludes any provision of the Trust Indenture
Act that may be so modified or excluded, the latter provision shall be deemed to apply to this Indenture as so modified or to be
excluded, as the case may be.

 

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Section
12.05     Benefits of Indenture.

 

Nothing in this Indenture or in the Notes,
expressed or implied, will give to any Person, other than the parties hereto, any Agent or their successors hereunder or the Holders
of the Notes, any benefit or any legal or equitable right, remedy or claim under this Indenture.

 

Section
12.06    Calculations.

 

Neither the Trustee nor any Agent shall
be responsible for making any calculation with respect to any matter under this Indenture or the Notes (including, for the avoidance
of doubt, the trading price of the Notes). Except as otherwise expressly provided in this Indenture, the Company and its designated
agents shall be responsible for making all calculations called for under this Indenture and the Notes. These calculations include,
but are not limited to, determinations of any Fundamental Change Purchase Price, Redemption Price, the Closing Sale Prices of the
Common Stock, accrued interest payable on the Notes, and Additional Interest payable on the Notes, the Conversion Rate, the Settlement
Amount and the amount of Additional Interest that may be payable by Company from time to time. The Company shall make all these
calculations in good faith and, absent manifest error, its calculations will be final and binding on Holders. The Company shall
provide a schedule of its calculations to each of the Trustee and the Conversion Agent, and each of the Trustee and the Conversion
Agent and all other agents appointed by the Company herein are entitled to rely conclusively upon the accuracy of the Company’s
calculations without independent verification. The Trustee shall forward the Company’s calculations to any Holders upon the
written request of that Holder.

 

Whenever the Company is required to calculate
or make adjustments to the Conversion Rate, the Company will do so to the 1/10,000th of a share of Common Stock, rounding any additional
decimal places up or down in a commercially reasonable manner.

 

Section
12.07    Execution in Counterparts.

 

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

 

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Section
12.08     Notices.

 

(a)        Except
as otherwise provided herein, any request, demand, authorization, direction, notice, consent, election, waiver or Act of Holders
or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with, the Company or
the Trustee shall be in writing and delivered in person or mailed by first class mail, postage prepaid, overnight courier or transmitted
by facsimile transmission or electronic transmission in PDF format as follows:

 

(i)          if
to the Trustee by any Holder or by the Company, at its Corporate Trust Office;

 

(ii)         if
to the Company by the Trustee or by any Holder, at the address of its principal office at IGI Laboratories, Inc., 105 Lincoln Avenue,
P.O. Box 687, Buena, NJ 08310, Attention: Jason Grenfell-Gardner, with a copy to Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo,
P.C., 666 Third Avenue, New York, NY 100017, Attention: Joel I. Papernik, Esq.

 

(b)      The
Company or the Trustee, by notice given to the other in the manner provided in this Section 12.08, may designate additional
or different addresses for subsequent notices or communications.

 

(c)       Notices
to Holders will be sent to the address of each Holder as it appears in the Register. Notices will be deemed to have been given
on the date of mailing or electronic transmission to such Holder. Whenever a notice is required to be given by the Company, such
notice may be given by the Trustee on the Company’s behalf. With respect to Global Notes, notice shall be sufficiently given
if given to the Depositary for the Notes (or its designee), pursuant to customary procedures of such Depositary (and the Company
will make any notices the Company is required to give to Holders available on the Company’s website).

 

(d)        Whenever
the Company is required to deliver notice to the Holders, the Company will, by the date it is required to deliver such notice to
the Holders, deliver a copy of such notice to the Trustee and the Agents. Notices to the Trustee shall be deemed given upon actual
receipt thereof.

 

(e)        In
respect of this Indenture, the Trustee, in each of its capacities, including without limitation as the Trustee, Registrar, Paying
Agent, Conversion Agent and Bid Solicitation Agent, shall not have any duty or obligation to verify or confirm that the Person
sending instructions, directions, reports, notices or other communications or information by electronic transmission is, in fact,
a Person authorized to give such instructions, directions, reports, notices or other communications or information on behalf of
the party purporting to send such electronic transmission; and the Trustee shall not have any liability for losses, liabilities,
costs or expenses incurred or sustained by any party as a result of such reliance upon or compliance with such instructions, directions,
reports, notices or other communications or information. Each other party agrees to assume all risks arising out of the use of
electronic methods to submit instructions, directions, reports, notices or other communications or information to the Trustee,
including, without limitation the risk of the Trustee acting on unauthorized instructions, notices, reports or other communications
or information, and the risk of interception and misuse by third parties.

 

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Section
12.09    No Recourse Against Others.

 

No director, officer, employee, incorporator
or stockholder of the Company shall have any liability for any obligations of the Company under the Notes, the Indenture or any
claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder, by accepting a Note, waives and
releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.

 

Section
12.10    Tax Withholding.

 

Nothing herein shall preclude any tax withholding
required by law or regulation. Each Holder agrees, and each beneficial owner of an interest in a Note by its acquisition of such
interest is deemed to agree, that if the Company or other applicable withholding agent pays withholding taxes or backup withholding
on behalf of the Holder or beneficial owner as a result of an adjustment to the Conversion Rate, the Company or other applicable
withholding agent may, at its option, set off such payments against payments of cash and shares of Common Stock on the Note (or,
in certain circumstances, against any payments on the Common Stock).

 

Section
12.11     Waiver of Jury Trial.

 

EACH OF THE COMPANY AND THE TRUSTEE HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section
12.12     U.S.A. Patriot Act.

 

The parties hereto acknowledge that in accordance
with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to help fight the funding
of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity
that establishes a relationship or opens an account with the Trustee. The parties to this Indenture agree that they will provide
the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot
Act.

 

Section
12.13     Force Majeure.

 

In no event shall the Trustee or any Agent
be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war
or terrorism, civil or military disturbances, disasters, nuclear or natural catastrophes or acts of God, and interruptions, loss
or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee
shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.

 

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Section
12.14     Submission to Jurisdiction.

 

(a)          The
Company hereby irrevocably consents to jurisdiction of the courts of the State of New York and the courts of the United States
of America located in the City of New York and the County of New York, over any suit, action or proceeding with respect to this
Indenture or the Notes or the transactions contemplated hereby. The Company waives any objection that it may have to the venue
of any suit, action or proceeding with respect to this Indenture or the Notes or the transactions contemplated hereby in the courts
of the State of New York or the courts of the United States of America, in each case, located in the City of New York and County
of New York, or that such suit, action or proceeding brought in the courts of the State of New York or the United States of America,
in each case, located in the City of New York and County of New York was brought in an inconvenient court and agrees not to plead
or claim the same. The Company hereby irrevocably appoints Corporation Service Company, 1180 Avenue of the Americas, Suite 210,
New York, NY 10036, as its authorized agent in the State of New York upon which process may be served in any such suit or proceedings,
and agrees that service of process upon such agent shall be deemed in every respect effective service of process upon the Company
in any such suit or proceeding. The Company further agrees to take any and all action as may be necessary to maintain such designation
and appointment of such agent in full force and effect for the term of this Indenture. Nothing in this Indenture shall in any way
be deemed to limit the ability to serve any such writs, process or summonses in any other manner permitted by applicable law.

 

[Remainder of the page intentionally left
blank]

  

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

 

	 	IGI Laboratories, Inc.
	 	By:	/s/ Jenniffer Collins
	 	Name:	Jenniffer Collins
	 	Title:	Chief Financial Officer and Secretary
	 	 	 
	 	 	 
	 	Wilmington Trust, National Association, as Trustee
	 	By:	/s/ Michael H. Wass
	 	Name:	Michael H. Wass
	 	Title:	Assistant Vice President

 

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SCHEDULE A

 

 

The following table sets forth the number
of Additional Shares by which the Conversion Rate shall be increased pursuant to Section 4.06 based on the hypothetical Stock
Prices and the dates set forth below.

 

	 	 	Stock Price	 
	Effective Date	 	$	8.89	 	 	$	10.00	 	 	$	11.00	 	 	$	12.50	 	 	$	15.00	 	 	$	17.50	 	 	$	20.00	 	 	$	25.00	 	 	$	30.00	 	 	$	35.00	 	 	$	40.00	 	 	$	45.00	 	 	$	50.00	 	 	$	75.00	 
	December 16, 2014	 	 	23.9143	 	 	 	19.9099	 	 	 	16.5871	 	 	 	12.8881	 	 	 	8.8434	 	 	 	6.3121	 	 	 	4.6293	 	 	 	2.6155	 	 	 	1.5203	 	 	 	0.8778	 	 	 	0.4843	 	 	 	0.2383	 	 	 	0.0860	 	 	 	0.0000	 
	December 15, 2015	 	 	23.9143	 	 	 	20.0230	 	 	 	16.4674	 	 	 	12.5654	 	 	 	8.3942	 	 	 	5.8559	 	 	 	4.2107	 	 	 	2.3004	 	 	 	1.2963	 	 	 	0.7223	 	 	 	0.3781	 	 	 	0.1674	 	 	 	0.0427	 	 	 	0.0000	 
	December 15, 2016	 	 	23.9143	 	 	 	19.9250	 	 	 	16.0711	 	 	 	11.9260	 	 	 	7.6402	 	 	 	5.1426	 	 	 	3.5874	 	 	 	1.8662	 	 	 	1.0074	 	 	 	0.5341	 	 	 	0.2578	 	 	 	0.0931	 	 	 	0.0049	 	 	 	0.0000	 
	December 15, 2017	 	 	23.9143	 	 	 	19.2752	 	 	 	15.0492	 	 	 	10.6452	 	 	 	6.3390	 	 	 	4.0142	 	 	 	2.6682	 	 	 	1.2985	 	 	 	0.6684	 	 	 	0.3349	 	 	 	0.1429	 	 	 	0.0309	 	 	 	0.0000	 	 	 	0.0000	 
	December 15, 2018	 	 	23.9143	 	 	 	17.1885	 	 	 	12.4559	 	 	 	7.8405	 	 	 	3.8800	 	 	 	2.1222	 	 	 	1.2829	 	 	 	0.5822	 	 	 	0.2946	 	 	 	0.1366	 	 	 	0.0383	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 
	December 15, 2019	 	 	23.9143	 	 	 	11.4284	 	 	 	2.3375	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

 

    	 

    	 

    

 

EXHIBIT A

 

[FORM OF FACE OF NOTE]

 

[For all Notes, include the following legend
(the “Non-Affiliate Legend”):]

 

NO AFFILIATE (AS DEFINED IN RULE 144 UNDER
THE SECURITIES ACT) OF THE COMPANY OR PERSON THAT HAS BEEN AN AFFILIATE (AS DEFINED IN RULE 144 UNDER THE SECURITIES ACT) OF THE
COMPANY DURING THE IMMEDIATELY PRECEDING THREE MONTHS MAY PURCHASE, OTHERWISE ACQUIRE OR HOLD THIS NOTE OR A BENEFICIAL INTEREST
HEREIN.

 

[For Global Notes, include the following legend (the “Global
Notes Legend”):]

 

[THIS SECURITY IS A GLOBAL NOTE WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED,
IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE.]

 

[For all Notes that are Restricted Notes,
include the following legend (the “Restricted Notes Legend”):]

 

[THIS SECURITY AND THE SHARES OF COMMON
STOCK, IF ANY, ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE
FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER:

 

		(1)	REPRESENTS THAT IT AND ANY ACCOUNT FOR WHICH IT IS
ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT
EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND

 

		(2)	AGREES FOR THE BENEFIT OF IGI LABORATORIES, INC. (THE
“COMPANY”) THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN
PRIOR TO THE DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL ISSUE DATE HEREOF OR SUCH SHORTER PERIOD OF TIME AS
PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THERETO AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED
BY APPLICABLE LAW, EXCEPT:

 

    	A-1

    	 

    

  

		(A)	TO THE COMPANY OR ANY SUBSIDIARY THEREOF, OR

 

		(B)	PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME
EFFECTIVE UNDER THE SECURITIES ACT, OR

 

		(C)	TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT, OR

 

		(D)	PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED
BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

PRIOR TO THE REGISTRATION OF ANY TRANSFER
IN ACCORDANCE WITH CLAUSE (2)(D) ABOVE, THE COMPANY AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS,
CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN
COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.]

  

    	A-2

    	 

    

  

IGI Laboratories, Inc.

3.75% Convertible Senior Notes due 2019

 

No.:     [          ]

 

		CUSIP:	[449575 AA7] [; provided that, at such time as
the Company provides the Free Transferability Certificate to the Trustee and the Registrar, this CUSIP number will be deemed removed
and replaced with the CUSIP number 449575 AB5.]

 

Principal

		Amount $	[          ]
[For Global Notes, include the following: as revised by the Schedule of Increases and Decreases in the Global Note attached
hereto]

 

IGI Laboratories, Inc., a Delaware corporation
(the “Company”), promises to pay to [          ] [include
“Cede & Co.” for Global Note] or registered assigns, the principal amount of [add principal amount in
words] $[          ] [For Global Notes, include the following:, as
revised by the Schedule of Increases and Decreases in the Global Note attached hereto,] on December 15, 2019 (the “Maturity
Date”).

 

Interest Payment Dates: June 15 and December
15.

 

Regular Record Dates: June 1 and December 1.

 

Additional provisions of this Security are
set forth on the other side of this Note.

  

    	A-1

    	 

    

  

IN WITNESS WHEREOF, IGI Laboratories, Inc.
has caused this instrument to be signed manually or by facsimile by one of its duly authorized Officers.

 

	 	IGI Laboratories, Inc.
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

    	A-2

    	 

    

 

This is one of the Notes referred to in
the within-mentioned Indenture.

 

Dated:

 

	 	Wilmington Trust, National Association, as Trustee
	 	 
	 	By:	 
	 	Authorized Signatory

 

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[FORM OF REVERSE OF NOTE]

 

IGI Laboratories, Inc.

3.75% Convertible Senior Notes due 2019

 

This Note is one of a duly authorized issue
of securities of the Company (herein called the “Notes”), issued under the Indenture dated as of December 16,
2014 by and between the Company and Wilmington Trust, National Association, herein called the “Trustee,” and
reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated
and delivered.

 

This Note does not benefit from a sinking
fund. This Note shall be redeemable at the Company’s option on or after December 19, 2017, subjects to the conditions set
forth in the Indenture.

 

As provided in and subject to the provisions
of the Indenture, upon the occurrence of a Fundamental Change, the Holder of this Note will have the right, at such Holder’s
option, to require the Company to purchase this Note, or any portion of this Note such that the principal amount of this Note that
is not purchased equals $1,000 or an integral multiple of $1,000, on the Fundamental Change Purchase Date at a price equal to the
Fundamental Change Purchase Price for such Fundamental Change Purchase Date.

 

As provided in and subject to the provisions
of the Indenture, the Holder hereof has the right, prior to the Close of Business on the Business Day immediately preceding the
Maturity Date, to convert this Note or a portion of this Note such that the principal amount of this Note converted equals $1,000
or an integral multiple of $1,000, into cash, a number of shares of Common Stock or a combination thereof determined in accordance
with Article 4 of the Indenture and subject to adjustment as set forth therein; provided, however, that prior to obtaining
the Stockholders Approvals, the Company shall not be permitted to elect Physical Settlement or Combination Settlement with respect
to any conversion of Notes and Cash Settlement shall be deemed to apply, subject to certain exceptions as set forth in Section
4.03(a)(ii) of the Indenture.

 

As provided in and subject to the provisions
of the Indenture, the Company will make all payments in respect of the Fundamental Change Purchase Price for, the Redemption Price
for and the principal amount of, this Note to the Holder that surrenders this Note to the Paying Agent to collect such payments
in respect of this Note. The Company will pay cash amounts in money of the U.S. that at the time of payment is legal tender for
payment of public and private debts.

 

The Indenture permits, with certain exceptions
as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of
the Holders of the Notes to be effected under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of a majority in principal amount of the Notes at the time Outstanding. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Notes at the time Outstanding, on behalf of the Holders of all
Notes, to waive compliance by the Company with certain provisions of the Indenture and certain past Defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

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As provided in and subject to the provisions
of the Indenture, the Holder of this Note shall not have the right to institute any proceeding with respect to the Indenture, or
for the appointment of a receiver or trustee, or for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the Note, the Holders of not less than 25% in principal
amount of the Notes at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect
of such Event of Default as Trustee and offered the Trustee indemnity reasonably satisfactory to the Trustee, and the Trustee shall
have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity, and shall
not have received from the Holders of a majority in principal amount of Notes at the time Outstanding a direction inconsistent
with such request. The foregoing shall not apply to any suit instituted by the Holder of this Note for the enforcement of any payment
of the principal hereof, premium, if any, or interest hereon, the Fundamental Change Purchase Price or Redemption Price with respect
to and the amount of cash, the number of shares of Common Stock or the combination thereof, as the case may be, due upon conversion
of this Note or after the respective due dates expressed in the Indenture.

 

No reference herein to the Indenture and
no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional,
to pay or deliver, as the case may be, the principal of (including the Fundamental Change Purchase Price or Redemption Price, if
applicable), premium, interest on and the amount of cash, a number of shares of Common Stock or a combination of cash and shares
of Common Stock, if any, as the case may be, due upon conversion of, this Note at the time, place and rate, and in the coin and
currency, herein prescribed.

 

As provided in the Indenture and subject
to certain limitations therein set forth, the transfer of this Note is registrable in the Register, upon surrender of this Note
for registration of transfer to the Trustee, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory
to the Company and the Registrar duly executed by, the Holder hereof or its attorney duly authorized in writing, and thereupon
a new Note of this series and of like tenor for the same aggregate principal amount will be issued to the designated transferee.

 

The Notes are issuable only in registered
form without coupons in minimum denominations of $1,000 and integral multiples of $1,000 in excess thereof. As provided in the
Indenture and subject to certain limitations therein set forth, the Notes are exchangeable for a like aggregate principal amount
of Notes and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same.

 

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Subject to the rights of the Holders as
of the Regular Record Date to receive interest on the related Interest Payment Date, prior to due presentment of this Note for
registration of transfer, the Company, the Trustee, the Agents and any of their respective agents may treat the Person in whose
name the Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company,
the Trustee, the Agents nor any agents shall be affected by notice to the contrary.

 

Customary abbreviations may be used in the
name of a Holder or an assignee, such as TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants
with rights of survivorship and not as tenants in common), CUST (= custodian) and U/G/M/A (= Uniform Gift to Minors Act).

 

Upon the issuance of any new Note, the Company
may require payment by the Holder of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including fees and expenses of the Trustee) connected therewith.

 

All defined terms used in this Note that
are defined in the Indenture shall have the meanings assigned to them in the Indenture. If any provision of this Note limits, qualifies
or conflicts with a provision of the Indenture, such provision of the Indenture shall control.

 

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ATTACHMENT 1

 

[FORM OF NOTICE OF CONVERSION]

 

To:     IGI Laboratories, Inc.

 

The undersigned owner of this Note hereby irrevocably exercises
the option to convert this Note, or a portion hereof (which is such that the principal amount of the portion of this Note that
will not be converted equals $1,000 or an integral multiple of $1,000 in excess thereof) below designated, into cash, a number
of shares of Common Stock or a combination thereof in accordance with the terms of the Indenture referred to in this Note, and
directs that any cash payable and any shares of Common Stock issuable and deliverable upon conversion, together with any Notes
representing any unconverted principal amount hereof, be paid and/or issued and/or delivered, as the case may be, to the registered
Holder hereof unless a different name is indicated below; provided, however, that prior to obtaining the Stockholders Approvals,
the Company shall not be permitted to elect Physical Settlement or Combination Settlement with respect to any conversion of Notes
and Cash Settlement shall be deemed to apply, subject to certain exceptions as set forth in Section 4.03(a)(ii) of the Indenture.

 

Subject to certain exceptions set forth in the Indenture, if
this notice is being delivered on a date after the Close of Business on a Regular Record Date and prior to the Open of Business
on the Interest Payment Date corresponding to such Regular Record Date, this notice must be accompanied by payment of an amount
equal to the interest payable on such Interest Payment Date on the principal amount of this Note to be converted. If any shares
of Common Stock are to be issued in the name of a Person other than the undersigned, the undersigned will pay all transfer taxes
payable with respect to such issuance and transfer as set forth in the Indenture.

 

Principal amount to be converted (if less than all):

 

$     

 

Dated:      

 

Signature(s)

(Sign exactly as your name appears on the other side
of this Note)

 

Signature Guarantee

(Signature(s) must be guaranteed by an institution which
is a member of one of the following recognized signature Guarantee Programs:

(i) The Notes Transfer Agent Medallion Program
(STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) another guarantee program acceptable to the
Trustee.)

 

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Fill in if a check is to be issued, or shares of Common Stock
or Notes are to be registered, otherwise than to or in the name of the registered Holder.

  

(Name)

  

(Address)

 

Please print name and address

(including zip code)

  

(Social Security or other Taxpayer

Identifying Number)

 

Dated:      

 

Signature(s)

(Sign exactly as such Person’s name appears above)

 

Signature Guarantee

(Signature(s) must be guaranteed by an institution which
is a member of one of the following recognized signature Guarantee Programs:

(i) The Notes Transfer Agent Medallion Program
(STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP)
or (iv) another guarantee program acceptable to the Trustee.)

 

    	A-8

    	 

    

 

 ATTACHMENT 2

 

[FORM OF FUNDAMENTAL CHANGE PURCHASE NOTICE]

 

To:     IGI Laboratories, Inc.

 

The undersigned registered owner of this Note hereby acknowledges
receipt of a Fundamental Change Company Notice from IGI Laboratories, Inc. (the “Company”) as to the occurrence
of a Fundamental Change with respect to the Company and specifying the Fundamental Change Purchase Date and requests and instructs
the Company to pay to the registered holder hereof in accordance with the applicable provisions of the Indenture referred to in
this Note (i) the entire principal amount of this Note, or the portion thereof (that is such that the portion not to be purchased
has a principal amount equal to $1,000 or an integral multiple of $1,000 in excess thereof) below designated, and (ii) if
such Fundamental Change Purchase Date does not occur during the period after a Regular Record Date and on or prior to the Interest
Payment Date corresponding to such Regular Record Date, accrued and unpaid interest, if any, thereon to, but excluding, such Fundamental
Change Purchase Date.

 

Principal amount to be purchased (if less than all):

 

$     

 

Certificate number (if Notes are in certificated form)

 

Dated:      

 

     

Signature(s)

(Sign exactly as your name appears on the other side
of this Note)

     

Social Security or Other Taxpayer Identification Number

 

    	A-9

    	 

    

 

ATTACHMENT 3

 

[FORM OF ASSIGNMENT AND TRANSFER]

 

For value received,                
hereby sell(s), assign(s) and transfer(s) unto                     _
(Please insert social security or Taxpayer Identification Number of assignee) the within Note, and hereby irrevocably constitutes
and appoints                 to transfer the
said Note on the books of the Company, with full power of substitution in the premises.

 

In connection with any transfer of the within Note occurring
prior to the Resale Restriction Termination Date, as defined in the Indenture governing such Note, the undersigned confirms that
such Note is being transferred:

 

 ̈     To
IGI Laboratories, Inc. or a subsidiary thereof; or

 

 ̈     Pursuant
to a registration statement which has become effective under the Securities Act of 1933, as amended; or

 

 ̈     To
a qualified institutional buyer in compliance with Rule 144A under the Securities Act of 1933, as amended; or

 

 ̈     Pursuant
to an exemption from registration provided by Rule 144 under the Securities Act of 1933, as amended, or any other available exemption
from the registration requirements of the Securities Act of 1933, as amended.

 

[TO BE SIGNED BY PURCHASER IF THE SECOND, THIRD OR FOURTH BOX
ABOVE IS CHECKED]

 

[Include if the second, third or fourth box above is checked]
[The undersigned (on the immediately following signature line) represents and warrants that it is not, and has not been for the
immediately preceding three months, an “affiliate” (as defined in Rule 144 under the Securities Act of 1933, as amended)
of IGI Laboratories, Inc.]

 

[Include if the third box above is checked] [The undersigned
(on the immediately following signature line) represents and warrants that it is purchasing this Note for its own account or an
account with respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional
buyer” within the meaning of Rule 144A under the Securities Act and is aware that the sale to it is being made in reliance
on Rule 144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant
to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the undersigned’s
foregoing representations in order to claim the exemption from registration provided by Rule 144A.]

 

[Date: ______________________          Signed:
______________________]               

 

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Unless one of the above boxes is checked, the Trustee and Registrar
will refuse to register any of the Notes evidenced by this certificate in the name of any Person other than the registered Holder
thereof; provided that, if the fourth box is checked, the Company may require, prior to registering any such transfer of
the Notes, in its sole discretion, such legal opinions, certifications and other information as the Company may reasonably request
to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act.

 

If none of the foregoing boxes is checked,
the Trustee or Registrar shall not be obligated to register this Note in the name of any Person other than the Holder hereof unless
and until the conditions to any such transfer of registration set forth herein and in Section 2.11 of the Indenture shall have
been satisfied.

 

	Dated:	 
	 	 
	 	 
	 	 
	 	 
	Signature(s)	 

 

(Sign exactly as your name appears on the other side of this
Note)

 

	 	 
	 	 
	Signature Guarantee	 
	(Signature(s) must be guaranteed by an institution which is a member of one of the following recognized signature Guarantee Programs:  (i) The Notes Transfer Agent Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP) or (iv) another guarantee program acceptable to the Trustee)	 

 

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ATTACHMENT 4

 

[Insert for Global Note]

 

SCHEDULE OF INCREASES AND DECREASES IN THE
GLOBAL NOTE

Initial Principal Amount of Global Note:

 

	Date	 	Amount of Increase

in Principal

Amount of Global

Note	 	Amount of

Decrease in

Principal Amount

of Global Note	 	Principal Amount

of Global Note

After Increase or

Decrease	 	Notation by

Registrar, Note

Custodian or

authorized

signatory of

Trustee
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

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EXHIBIT B

 

[FORM OF FREE TRANSFERABILITY CERTIFICATE]

 

Officer’s Certificate

 

[date]

 

[NAME OF OFFICER], the [TITLE] of IGI Laboratories,
Inc., a Delaware corporation (the “Company”) does hereby certify, in connection with the occurrence of the Free
Trade Date on [date] in respect of $[add principal amount] of the Company’s 3.75% Convertible Senior Notes due 2019
(CUSIP: 449575 AA7) (the “Notes”) pursuant to the terms of the Indenture, dated as of December 16, 2014 (as
may be amended or supplemented from time to time, the “Indenture”), by and between the Company and Wilmington
Trust, National Association (the “Trustee”), that:

1.          The
undersigned is permitted to sign this “Officer’s Certificate” on behalf of the Company, as the term “Officer’s
Certificate” is defined in the Indenture.

 

2.          The
undersigned has read, and thoroughly examined, the Indenture and the definitions therein relating thereto.

 

3.          In
the opinion of the undersigned, the undersigned has made such examination as is necessary to enable the undersigned to express
an informed opinion as to whether or not all conditions precedent to the removal of the Restricted Notes Legend described herein
from the Notes as provided for in the Indenture have been complied with.

 

4.          To
the best knowledge of the undersigned, all conditions precedent described herein as provided for in the Indenture and, in the case
of Global Notes, the Applicable Procedures have been complied with.

 

5.      The Resale
Restriction Termination Date for the Notes is the date of this Officer’s Certificate. The Company is satisfied that the Notes
are not subject to the restrictions set forth in the Restricted Notes Legend and Section 2.07 of the Indenture.

 

In accordance with Section 2.08 of
the Indenture, the Company hereby advises you as follows:

 

1.          The
Restricted Notes Legend set forth on the Notes shall be deemed removed from the Notes in accordance with the terms and conditions
of the Notes and as provided in the Indenture, without further action on the part of the Holders.

 

2.          The
restricted CUSIP number for the Notes shall be deemed removed from the Notes and replaced with an unrestricted CUSIP number, which
unrestricted CUSIP number shall be 449575 AB5, in accordance with the terms and conditions of the Notes and as provided in the
Indenture, without further action on the part of the Holders.

 

Capitalized terms used but not otherwise
defined herein shall have the meanings set forth in the Indenture.

 

    	B-1

    	 

    

  

EXHIBIT B

 

IN WITNESS WHEREOF, the undersigned signed
this Officer’s Certificate as of the date written above.

 

	 	IGI Laboratories, Inc.
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

    	B-2

    	 

    

  

EXHIBIT C

 

[FORM OF RESTRICTED STOCK LEGEND]

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER:

 

		(1)	REPRESENTS THAT IT AND ANY ACCOUNT FOR WHICH IT IS
ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT
EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND

 

		(2)	AGREES FOR THE BENEFIT OF IGI LABORATORIES, INC. (THE
“COMPANY”) THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN
PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) (X) THAT IS AT LEAST ONE YEAR AFTER THE LAST DATE OF
ORIGINAL ISSUANCE OF THE COMPANY’S 3.75% CONVERTIBLE SENIOR NOTES DUE 2019 OR SUCH OTHER PERIOD OF TIME AS PERMITTED BY
RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THERETO, AND (Y) ON WHICH THE COMPANY HAS INSTRUCTED THE TRUSTEE
FOR THE COMPANY’S 3.75% CONVERTIBLE SENIOR NOTES DUE 2020 THAT THE RESTRICTIONS DESCRIBED IN THE LEGEND WILL NO LONGER APPLY
IN ACCORDANCE WITH THE PROCEDURES DESCRIBED IN THE INDENTURE GOVERNING THE COMPANY’S 3.75% CONVERTIBLE SENIOR NOTES DUE
2019, EXCEPT:

 

		(A)	TO THE COMPANY OR ANY OF ITS SUBSIDIARIES, OR

 

		(B)	PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED (OR HAS BECOME) EFFECTIVE UNDER THE SECURITIES ACT THAT COVERS RESALE OF THE SHARES OF COMMON STOCK UNDERLYING THE COMPANY’S
3.75% CONVERTIBLE SENIOR NOTES DUE 2019, OR

 

		(C)	TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT, OR

 

		(D)	PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED
BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.

 

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PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE
WITH CLAUSE (2)(D) ABOVE, THE COMPANY AND THE TRANSFER AGENT FOR THE COMPANY’S COMMON STOCK RESERVE THE RIGHT TO REQUIRE
THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT
THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, AND THE TRANSFER
AGENT WILL NOT BE REQUIRED TO ACCEPT FOR REGISTRATION OF TRANSFER ANY SECURITIES ACQUIRED BY A PURCHASER EXCEPT UPON PRESENTATION
OF EVIDENCE SATISFACTORY TO THE TRANSFER AGENT THAT THE RESTRICTIONS SET FORTH HEREIN HAVE BEEN COMPLIED WITH. NO REPRESENTATION
IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

    	C-2

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