Document:

Exhibit 10.9

 

 

NOTES PURCHASE AGREEMENT

THIS NOTES PURCHASE AGREEMENT, is made as of February 11, 2015 (the "Agreement"), by and among OpGen, Inc., a Delaware corporation (the "Company"), and the Investors listed on Exhibit A attached to this Agreement (each an "Investor" and together the "Investors").  Certain capitalized terms used in this Agreement are set forth in Section 1.5.

W I T N E S S E T H

WHEREAS, the Company desires to sell to the Investors, and the Investors desire to purchase from the Company, on the terms and conditions set forth in this Agreement, Secured Convertible Promissory Notes in the aggregate principal amount of $1,500,000 (the "Financing"), having the rights, preferences, privileges and restrictions set forth in the form(s) of Secured Convertible Promissory Notes attached to this Agreement as Exhibit B (the "Notes").

WHEREAS, the Notes are convertible (i) at the option of the holder, into shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), at any time after the closing of a QPO (as defined below); (ii) at the option of the holder, into either (a) shares of the Common Stock, or (b) shares of the Company's Series A Convertible Preferred Stock, par value $0.01 per share (the "Series A Preferred Stock"), at a conversion rate of 1 share for each $1.00 of principal amount remaining, at any time after the closing of an initial public offering that is not a QPO; or (iii) at the option of the holder, into shares of the Series A Preferred Stock at a conversion rate of 1.25 shares for each $1.00 of principal amount remaining, if no initial public offering has been consummated; provided, however, and notwithstanding the foregoing, if an initial public offering is not consummated on or before June 30, 2015, then the Notes shall only be convertible pursuant to clause (iii) for so long as the Notes remain outstanding.

WHEREAS, if an initial public offering is not consummated on or before June 30, 2015, each Note will thereafter only be convertible, as long as the Notes remain outstanding, at the option of the holder, into shares of the Series A Preferred Stock at a conversion rate of 1.25 shares for each $1.00 of principal amount remaining.

WHEREAS, the Series A Preferred Stock has the rights, preferences, privileges and restrictions set forth in the Ninth Amended and Restated Certificate of Incorporation (the "Restated Certificate").

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises hereinafter set forth, the parties, intending to be legally bound, hereby agree as follows:

1.             Purchase and Sale of Notes.

1.1        Purchase and Issuance of Notes.  Subject to the terms and conditions of this Agreement, each Investor agrees to purchase at the Closing and the Company agrees to sell and issue to each Investor at the Closing, a Note in the principal amount set forth opposite each Investor's name on Exhibit A attached hereto (each such amount, the "Purchase Price").

1.2        Issuance of Warrants.  As additional consideration for the Investors to participate in the Financing, each Investor also will receive from the Company a Warrant to purchase Common Stock substantially in the form attached hereto as Exhibit D (each, a "Warrant," and, collectively, the "Warrants"), which Warrant will permit such Investor to acquire a number of shares of the Common Stock equal to fifteen percent (15%) of the principal amount of such Investor's Note divided by $1.00 if an initial public offering is consummated.

 

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1.3        Closing; Delivery.

(a)        The purchase and sale of the Notes and Warrants shall take place either remotely via the exchange of documents and signatures or at the offices of Ballard Spahr LLP, 1735 Market Street, 51st Floor, Philadelphia, PA 19103, at 10:00 a.m. on the date above first written or at such other date and time or such other place as the Company and Investors who have agreed to purchase a majority of the aggregate principal Notes listed on Exhibit A mutually agree, orally or in writing (which time and place are designated as the "Initial Closing").  The date on which the Initial Closing occurs is the "Initial Closing Date."

(b)        At any time or from time to time on or before the 30th day following the Initial Closing (each such date, an "Additional Closing Date"), the Company may sell Notes and Warrants to certain existing stockholders of the Company in accordance with the purchase rights granted to such stockholders in the Investors' Rights Agreement among the Company and the investor signatories thereto.  The Company will provide notice of the sale of the Notes and Warrants to all Investors under the Investors' Rights Agreement in accordance with Section 4.1(e) thereof as promptly as possible, but no later than three days after the Initial Closing Date.  All such sales made to any Investor who complies with the notice requirement of Section 4.1(e) of the Investors' Rights Agreement at any additional closings (each an "Additional Closing") shall be made on the same terms and conditions set forth in this Agreement, except that the representations and warranties of the Company set forth in Section 2 hereof (and the Disclosure Schedule) shall speak as of the Initial Closing Date, and the representations and warranties of the additional purchasers in Section 3 hereof shall speak as of such Additional Closing Date on which they purchase Notes.

(c)        Any Notes and Warrants sold pursuant to Section 1.3(b) shall be deemed to be "Notes" and "Warrants," as applicable, for all purposes under this Agreement, any purchasers thereof shall be deemed to be "Investors" for all purposes under this Agreement, in each case without any further action by the parties hereto.  Each of the Initial Closing and any Additional Closings may hereinafter be separately referred to as a "Closing," and each of the Initial Closing Date and any Additional Closing Date may hereinafter be separately referred to as a "Closing Date."

(d)        At each Additional Closing, each purchaser who agrees to purchase Notes and Warrants will execute a Joinder Agreement, pursuant to which such purchaser agrees to become a party hereto as an Investor hereunder and to be subject to the terms and conditions hereof.

(e)        At each Closing, the Company shall issue to each Investor the Note and Warrant being purchased by such Investor at such Closing against payment of the Purchase Price therefor by check payable to the Company or by wire transfer to a bank account designated by the Company.  jVen Capital, LLC ("jVen"), in its sole discretion, may tender to the Company principal and interest due to jVen under that certain Secured Demand Note in the principal amount of $300,000 from the Company to jVen, dated as of January 22, 2015, as partial satisfaction of payment of the Purchase Price of any Notes and Warrants that jVen purchases hereunder.

1.4        Use of Proceeds.  In accordance with the directions of the Board of Directors, the Company will use the proceeds from the sale of the Notes and Warrants for working capital and other general corporate purposes.

1.5        Defined Terms Used in this Agreement.  In addition to the terms defined above, the following terms used in this Agreement shall have the meanings set forth or referenced below.

(a)        "Affiliate" means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including, without limitation, any general partner, managing member, officer or director of such Person or any venture capital fund now or hereafter existing that is controlled by one or more general partners or managing members of, or shares the same management company with, such Person.

 

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(b)        "Amended and Restated Intercreditor Agreement" means the Amended and Restated Intercreditor Agreement, dated as of the date hereof, by and among Harris & Harris Group, Inc. ("H&H"), both as the collateral agent under the Convertible Notes Security Agreement (as defined in the Intercreditor Agreement) and as the collateral agent under the Demand Notes Security Agreement (as defined in the Intercreditor Agreement), each of the Secured Parties (as defined in the Intercreditor Agreement) and the Company, substantially in the form attached hereto as Exhibit I.

(c)        "Certificate of Amendment" means the Certificate of Amendment to the Restated Certificate, attached hereto as Exhibit C.

(d)        "Code" means the Internal Revenue Code of 1986, as amended.

(e)        "Common Stock" means the common stock, par value $0.01 per share, of the Company.

(f)        "Company Intellectual Property" means all patents, patent applications, trademarks, trademark applications, service marks, service mark applications, trade names, copyrights, trade secrets, domain names, mask works, information and proprietary rights and processes, similar or other intellectual property rights, subject matter of any of the foregoing, tangible embodiments of any of the foregoing, licenses in to and under any of the foregoing, and any and all such cases as are necessary to the Company in the conduct of the Company's business as now conducted and as presently proposed to be conducted.

(g)        "Indemnification Agreements" means the agreements between the Company and (i) the director previously designated by any Investor entitled to designate a member of the Board of Directors pursuant to the Voting Agreement and (ii) the director designated by H&H pursuant to the Voting Agreement.

(h)        "Intercreditor Agreement" means that certain Intercreditor Agreement, dated as of October 30, 2014, by and among H&H, both as the collateral agent under the Convertible Notes Security Agreement (as defined in the Intercreditor Agreement) and as the collateral agent under the Demand Notes Security Agreement (as defined in the Intercreditor Agreement), each of the Secured Parties (as defined in the Intercreditor Agreement) and the Company, as amended by the Amended and Restated Intercreditor Agreement.

(i)        "Investor" means each of the Investors who is initially a party to this Agreement and any additional investor who becomes a party to this Agreement.

(j)        "Investors' Rights Agreement" means the Third Amended and Restated Investors' Rights Agreement, dated December 18, 2013, among the Company and the investors signatory thereto, as amended by the Stockholders' Agreements Amendment and the Second Stockholders' Agreements Amendment.

(k)        "Key Employee" means any executive-level employee (including division directors and vice president-level positions) as well as any employee or consultant who either alone or in concert with others develops, invents, programs or designs any Company Intellectual Property.

 

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(l)        "Knowledge," including the phrase "to the Company's knowledge," shall mean the actual knowledge of Evan Jones, C. Eric Winzer, Vadim Sapiro, David Hoekzema and Terrance Walker.

(m)        "Material Adverse Effect" means a material adverse effect on the business, assets (including intangible assets), liabilities, financial condition, property, or results of operations of the Company.

(n)        "Person" means any individual, corporation, partnership, trust, limited liability company, association or other entity.

(o)        "QPO" means the closing of the sale of shares of Common Stock to the public at a price per share of at least $4.00 (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Common Stock), in a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act resulting in at least $30,000,000 of proceeds, net of the underwriting discount and commissions, to the Company, as this definition may be amended from time to time in an amendment or amendment and restatement of the Restated Certificate.

(p)        "Right of First Refusal Agreement" means the Third Amended and Restated Right of First Refusal and Co-Sale Agreement, dated December 18, 2013, among the Company and the investors signatory thereto, as amended by the Stockholders' Agreements Amendment and the Second Stockholders' Agreements Amendment.

(q)        "Securities" means the Notes and the Warrants and any and all securities issuable upon conversion or exercise of the Notes or the Warrants and the conversion of any such securities.

(r)        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

(s)        "Security Agreement" means the Security Agreement by and among the Company and the holders of the Notes dated as of the date hereof and attached hereto as Exhibit E.

(t)        "Stockholders' Agreements Amendment" means that certain Stockholders' Agreements Amendment, dated July 11, 2014, by and among the Company and the investors signatory thereto.

(u)        "Second Stockholders' Agreements Amendment" means the Second Stockholders' Agreements Amendment among the Company and the investors signatory thereto, dated February 7, 2015 and attached hereto as Exhibit F.

(v)        "Series A Convertible Notes" means the existing notes, convertible into Series A Preferred Stock, issued in July through September 2014.

(w)        "Voting Agreement" means the Third Amended and Restated Voting Agreement, dated December 18, 2013, among the Company and the investors signatory thereto, as amended by Amendment No. 1 dated February 19, 2014 and as further amended by the Stockholders' Agreements Amendment and the Second Stockholders' Agreements Amendment.

 

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2.            Representations and Warranties of the Company.  The Company hereby represents and warrants to each Investor that, except as set forth on the Disclosure Schedule attached as Exhibit G to this Agreement, which exceptions shall be deemed to be part of the representations and warranties made hereunder, the following representations are true and complete as of the Initial Closing Date, except as otherwise indicated.  The Disclosure Schedule shall be arranged in sections corresponding to the numbered and lettered sections and subsections contained in this Section 2, and the disclosures in any section or subsection of the Disclosure Schedule shall qualify other sections and subsections in this Section 2 only to the extent it is readily apparent from a reading of the disclosure that such disclosure is applicable to such other sections and subsections.

2.1          Organization, Good Standing, Corporate Power and Qualification.  The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as presently conducted and as proposed to be conducted.  The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a Material Adverse Effect.

2.2          Capitalization.

(a)        The authorized capital of the Company, upon the filing of the Certificate of Amendment, shall consist of:

(1)        10,000,000 shares of Common Stock.  Immediately prior to the Initial Closing, 493,483 shares of Common Stock are issued and outstanding.  All of the outstanding shares of Common Stock have been duly authorized, are fully paid and non-assessable and were issued in compliance with all applicable federal and state securities laws.  The Company holds no shares of Common Stock in treasury.

(2)        7,500,000 shares of Preferred Stock, all of which have been designated Series A Preferred Stock.  Immediately prior to the Initial Closing, 3,999,864 shares of Series A Preferred Stock are issued and outstanding, and 1,500,000 shares of Series A Preferred Stock are reserved for conversion of the outstanding Series A Convertible Notes.  All of the outstanding shares of Series A Preferred Stock have been duly authorized, are fully paid and non‐assessable and were issued in compliance with all applicable federal and state securities laws.  The rights, privileges and preferences of the Series A Preferred Stock are as stated in the Restated Certificate and as provided by the general corporation law of the jurisdiction of the Company's incorporation.  The Company holds no shares of Preferred Stock in treasury.

(b)        Immediately prior to the Initial Closing, the Company has reserved 1,447,485 shares of Common Stock for issuance to officers, directors, employees and consultants of the Company pursuant to its 2008 Stock Option and Restricted Stock Plan, as amended, duly adopted by the Board of Directors and approved by the Company stockholders (the "Stock Plan").  Of such reserved shares of Common Stock, options to purchase 1,239,493 shares have been granted and are currently outstanding, and 207,992 shares of Common Stock remain available for issuance to officers, directors, employees and consultants pursuant to the Stock Plan.  The Company has made available to the Investors complete and accurate copies of the Stock Plan and forms of agreements used thereunder.

(c)        Section 2.2(c) of the Disclosure Schedule sets forth the capitalization of the Company immediately following the Initial Closing including the number of shares of the following:  (i) issued and outstanding Common Stock, including, with respect to restricted Common Stock, vesting schedule and repurchase price; (ii) issued stock options, including vesting schedule and exercise price; (iii) stock options not yet issued but reserved for issuance; (iv) the Series A Preferred Stock; and (v) warrants to acquire shares of Common Stock.  Except for (A) the rights provided in Section 5.3 of the Investors' Rights Agreement and (B) the securities and rights described in Section 2.2(b) of this Agreement and Section 2.2(c) of the Disclosure Schedule, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally or in writing, to purchase or acquire from the Company any shares of Common Stock or Series A Preferred Stock, or any securities convertible into or exchangeable for shares of Common Stock or Series A Preferred Stock.

 

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(d)        Except as set forth on Section 2.2(d) of the Disclosure Schedule, none of the Company's stock purchase agreements or stock option documents contains a provision for acceleration of vesting (or lapse of a repurchase right) or other changes in the vesting provisions or other terms of such agreement or understanding upon the occurrence of any event or combination of events.  The Company has never adjusted or amended the exercise price of any stock options previously awarded, whether through amendment, cancellation, replacement grant, repricing, or any other means.  Except as set forth in the Restated Certificate, the Company has no obligation (contingent or otherwise) to purchase or redeem any of its capital stock.

(e)        Attached hereto as Exhibit H-1 is the capitalization of the Company as of February 11, 2015.  Attached hereto as Exhibit H-2 is the capitalization of the Company immediately following the Initial Closing.

2.3        Subsidiaries.  The Company does not currently own or control, directly or indirectly, any interest in any other corporation, partnership, trust, joint venture, limited liability company, association, or other business entity.  The Company is not a participant in any joint venture, partnership or similar arrangement.

2.4        Authorization.  All corporate action required to be taken by the Company's Board of Directors and stockholders in order to authorize the Company to enter into this Agreement at the Initial Closing, and to issue and sell the Notes and Warrants at the Initial Closing or any additional Closing, including the reservation of Securities issuable upon conversion of the Notes and exercise of the Warrants, has been taken or will be taken prior to the Initial Closing.  All action on the part of the officers of the Company necessary for the execution and delivery of this Agreement, the performance of all obligations of the Company under this Agreement to be performed as of the Initial Closing, and the issuance and delivery of the Securities has been taken or will be taken prior to the Initial Closing.  This Agreement, when executed and delivered by the Company, shall constitute valid and legally binding obligations of the Company, enforceable against the Company in accordance with their respective terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies, or (iii) to the extent the indemnification provisions contained in the Investors' Rights Agreement and the Indemnification Agreements may be limited by applicable federal or state securities laws.

2.5        Valid Issuance of the Securities.

(a)        The Securities, when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement, will be validly issued, fully paid and non-assessable and free of restrictions on transfer other than restrictions on transfer under this Agreement, the Right of First Refusal Agreement, applicable state and federal securities laws and liens or encumbrances created by or imposed by an Investor.  Assuming the accuracy of the representations of the Investors in Section 3 of this Agreement and subject to the filings described in Section 2.6(ii) below, the Securities will be issued in compliance with all applicable federal and state securities laws.

(b)        The Securities issuable upon conversion of the Notes or exercise of the Warrants have been duly reserved for issuance and, upon issuance in accordance with the terms of the Notes, will be validly issued, fully paid and non-assessable and free of restrictions on transfer other than restrictions on transfer under this Agreement, the Right of First Refusal Agreement, applicable state and federal securities laws and liens or encumbrances created by or imposed by an Investor.

 

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2.6        Governmental Consents and Filings.  Assuming the accuracy of the representations made by the Investors in Section 3 of this Agreement, no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority is required on the part of the Company in connection with the consummation of the transactions contemplated by this Agreement, except for (i) the filing of the Certificate of Amendment, which will have been filed as of the Initial Closing, and (ii) filings pursuant to Regulation D of the Securities Act, and applicable state securities laws, which have been made or will be made in a timely manner.

2.7        Litigation.  Except as set forth on Section 2.7 of the Disclosure Schedule, there is no claim, action, suit, proceeding, arbitration, complaint, charge or investigation pending or to the Company's knowledge, currently threatened (i) against the Company or any officer, director or Key Employee of the Company arising out of their employment or board relationship with the Company; or (ii) that questions the validity of this Agreement or the right of the Company to enter into it, or to consummate the transactions contemplated by this Agreement; or (iii) that would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.  Neither the Company nor, to the Company's knowledge, any of its officers, directors or Key Employees is a party or is named as subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality (in the case of officers, directors or Key Employees, such as would affect the Company).  There is no action, suit, proceeding or investigation by the Company pending or which the Company intends to initiate.  The foregoing includes, without limitation, actions, suits, proceedings or investigations pending or threatened in writing (or any basis therefor known to the Company) involving the prior employment of any of the Company's employees, their services provided in connection with the Company's business, or any information or techniques allegedly proprietary to any of their former employers, or their obligations under any agreements with prior employers.

2.8        Intellectual Property.

(a)        Section 2.8(a)(i) of the Disclosure Schedule lists all Company Intellectual Property, other than trade secrets, that is owned by the Company.  Section 2.8(a)(ii) of the Disclosure Schedule lists all contracts relating to intellectual property rights owned by Persons other than the Company, other than with respect to commercially available software products under standard end-user object code license agreements, which are used or held for use by the Company with the permission of the owner.  Except as set forth on Section 2.8(a)(ii) of the Disclosure Schedule, each of the contracts listed or required to be listed on Section 2.8(a)(ii) of the Disclosure Schedule grants the Company exclusive rights in regard to the intellectual property covered by the contract, is in full force and effect, and all actions required to keep such rights pending or in effect or to provide full protection, including payment of filing, examination, annuity, and maintenance fees and filing of renewals, statements of use or working, affidavits of incontestability and other similar actions, have been taken.  No intellectual property right for which the Company has rights pursuant to a contract listed or required to be listed on Section 2.8(a)(ii) of the Disclosure Schedule is the subject of any interference, opposition, cancellation, nullity, re-examination or other proceeding placing in question the validity or scope of such right.  The Company has no present expectation or intention of not fully performing any obligation pursuant to any license, and, to the Company's knowledge, there is no breach, anticipated breach or default by any other party to any license.  There are no renegotiations of, attempts to renegotiate, demands for or outstanding rights to renegotiate any license that have been communicated to the Company.  All rights under each license will be fully available to the Company after the Initial Closing to the full extent available to the Company prior to the Initial Closing.  There are no outstanding options, licenses, agreements, claims, encumbrances or shared ownership interests of any kind relating to the Company Intellectual Property other than those licenses set forth in Section 2.8(a)(ii) of the Disclosure Schedule, nor is the Company bound by or a party to any options, licenses or agreements of any kind with respect to the patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, proprietary rights and processes of any other Person, other than those licenses and agreements set forth in Section 2.8(a)(ii) of the Disclosure Schedule.  Section 2.8(a)(iii) of the Disclosure Schedule lists any agreements pursuant to which the Company has disclosed, delivered, licenses or otherwise made available to any Person of any of the Company Intellectual Property.

 

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(b)        Except as set forth on Section 2.8(b) of the Disclosure Schedule, the Company owns or possesses or can acquire or license on commercially reasonable terms sufficient legal rights to all Company Intellectual Property without any known conflict with the rights of others.  To the Company's knowledge and in the Company's opinion, no product or service marketed or sold (or proposed to be marketed or sold) by the Company violates any license or infringes any intellectual property rights of any other party.

(c)        The Company has not received any communications alleging that the Company has violated or, by conducting its business, would violate any of the patents, trademarks, service marks, trade names, copyrights, trade secrets, mask works or other proprietary rights or processes of any other Person.  The Company has obtained and possesses valid licenses to use all of the software programs present on the computers and other software-enabled electronic devices that it owns or leases or that it has otherwise provided to its employees for their use in connection with the Company's business.  To the Company's knowledge, it will not be necessary to use any inventions of any of its employees or consultants (or Persons it currently intends to hire) made prior to their employment by the Company.

(d)        Except as set forth on Section 2.8(d) of the Disclosure Schedule, each employee and consultant has assigned or has agreed to assign to the Company all intellectual property rights he or she owns that are related to the Company's business as now conducted and as presently proposed to be conducted.

(e)        Except as set forth in Section 2.8(e) of the Disclosure Schedule, the Company has not embedded any open source, copyleft or community source code in any of its products generally available or in development, including but not limited to any libraries or code licensed under any General Public License, Lesser General Public License or similar license arrangement.

(f)        For purposes of this Section 2.8, the Company shall be deemed to have knowledge of a patent right if the Company has actual knowledge of the patent right or would be found to be on notice of such patent right as determined by reference to United States patent laws after reasonable inquiry.

2.9        Compliance with Other Instruments.  Except as set forth in Section 2.9 of the Disclosure Schedule, the Company is not in violation or default (a) of any provisions of its Restated Certificate or Bylaws, nor will be at the time of filing, in violation or default under any provisions of its Certificate of Amendment, (b) of any instrument, judgment, order, writ or decree, (c) under any note, indenture or mortgage, or (d) under any lease, agreement, contract or purchase order to which it is a party or by which it is bound that is required to be listed on the Disclosure Schedule, or of any provision of federal or state statute, rule or regulation applicable to the Company, the violation of which would have a Material Adverse Effect.  The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in any such violation or be in conflict with or constitute, with or without the passage of time and giving of notice, either (i) a default under any such provision, instrument, judgment, order, writ, decree, contract or agreement or (ii) an event which results in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, forfeiture, or nonrenewal of any material permit or license applicable to the Company.

 

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2.10        Agreements; Actions.

(a)        Except for this Agreement or as set forth in Section 2.10(a) of the Disclosure Schedule, there are no agreements, understandings, instruments, contracts or proposed transactions to which the Company is a party or by which it is bound that involve (i) obligations (contingent or otherwise) of, or payments to, the Company in excess of $50,000, (ii) the license of any patent, copyright, trademark, trade secret or other proprietary right to or from the Company, (iii) the grant of rights to manufacture, produce, assemble, license, market, or sell its products to any other Person that limit the Company's exclusive right to develop, manufacture, assemble, distribute, market or sell its products, or (iv) indemnification by the Company with respect to infringements of proprietary rights.

(b)        Except as set forth in Section 2.10(b) of the Disclosure Schedule, the Company has not (i) declared or paid any dividends, or authorized or made any distribution upon or with respect to any class or series of its capital stock, (ii) incurred any indebtedness for money borrowed or incurred any other liabilities in excess of $25,000 or in excess of $50,000 in the aggregate, (iii) made any loans or advances to any Person, other than ordinary advances for travel expenses, or (iv) sold, exchanged or otherwise disposed of any of its assets or rights, other than the sale of its inventory in the ordinary course of business.  For the purposes of subsections (b) and (c) of this Section 2.10, all indebtedness, liabilities, agreements, understandings, instruments, contracts and proposed transactions involving the same Person (including Persons the Company has reason to believe are affiliated with each other) shall be aggregated for the purpose of meeting the individual minimum dollar amounts of such subsection.

(c)        The Company is not a guarantor or indemnitor of any indebtedness of any other Person.

2.11        Certain Transactions.

(a)        Except as set forth on Section 2.11(a) of the Disclosure Schedule, other than (i) standard employee benefits generally made available to all employees, (ii) non‐disclosure, non-competition, assignment of inventions agreements and similar agreements between the Company and certain Key Employees and consultants, (iii) standard director and officer indemnification agreements approved by the Board of Directors, and (iv) the purchase of shares of the Company's capital stock and the issuance of options to purchase shares of the Company's Common Stock, in each instance, approved in the written minutes or by action by written consent of the Board of Directors (previously made available to the Investors or their counsel), there are no agreements, understandings or proposed transactions between the Company and any of its officers, directors, consultants or Key Employees, or any Affiliate thereof.

(b)        Except as set forth on Section 2.11(b) of the Disclosure Schedule, the Company is not indebted, directly or indirectly, to any of its directors, officers or employees or to their respective spouses or children or to any Affiliate of any of the foregoing, other than in connection with expenses or advances of expenses incurred in the ordinary course of business or employee relocation expenses and for other customary employee benefits made generally available to all employees.  None of the Company's directors, officers or employees, or any members of their immediate families, or any Affiliate of the foregoing are, directly or indirectly, indebted to the Company.

2.12        Rights of Registration and Voting Rights.  Except as provided in the Investors' Rights Agreement, the Company is not under any obligation to register under the Securities Act any of its currently outstanding securities or any securities issuable upon exercise or conversion of its currently outstanding securities.  To the Company's knowledge, except as contemplated in the Voting Agreement, no stockholder of the Company has entered into any agreements with respect to the voting of capital shares of the Company.

 

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2.13        Absence of Liens.  Except as set forth in Section 2.13 of the Disclosure Schedule, the property and assets that the Company owns are free and clear of all mortgages, deeds of trust, liens, loans and encumbrances, except for statutory liens for the payment of current taxes that are not yet delinquent and encumbrances and liens that arise in the ordinary course of business and do not materially impair the Company's ownership or use of such property or assets.  With respect to the property and assets it leases, the Company is in compliance with such leases and, to its knowledge, holds a valid leasehold interest free of any liens, claims or encumbrances other than those of the lessors of such property or assets.

2.14        Financial Statements.  The Company has made available to each Investor its audited financial statements as of December 31, 2012 and December 31, 2013, and its unaudited financial statements (including balance sheet, income statement and statement of cash flows) as of and for the fiscal period ended December 31, 2014 (collectively, the "Financial Statements").  The Financial Statements have been prepared in accordance with generally accepted accounting principles applied on a consistent basis throughout the periods indicated, except that the Financial Statements may not contain all footnotes required by generally accepted accounting principles, subject in the case of the unaudited Financial Statements to normal year end audit adjustments.  The Financial Statements fairly present in all material respects the financial condition and operating results of the Company as of the dates, and for the periods, indicated therein.  Except as set forth in the Financial Statements, the Company has no material liabilities or obligations, contingent or otherwise, other than (a) liabilities incurred in the ordinary course of business subsequent to December 31, 2013, (b) obligations under contracts and commitments incurred in the ordinary course of business, and (c) liabilities and obligations of a type or nature not required under generally accepted accounting principles to be reflected in the Financial Statements, which, in all such cases, individually and in the aggregate would not have a Material Adverse Effect.  The Company maintains and will continue to maintain a standard system of accounting established and administered in accordance with generally accepted accounting principles.

2.15        Changes.  To the Company's knowledge, since December 31, 2013, there have been no events or circumstances of any kind that have had or could reasonably be expected to result in a Material Adverse Effect.

2.16        Employee Matters.

(a)        As of the date hereof, the Company employs 29 full-time employees and no part-time employees and engages 13 consultants or independent contractors.  Section 2.16 of the Disclosure Schedule sets forth a detailed description of all compensation, including salary, bonus, severance obligations and deferred compensation paid or payable for each officer, employee, consultant and independent contractor of the Company.

(b)        To the Company's knowledge, none of its employees is obligated under any contract (including licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would materially interfere with such employee's ability to promote the interest of the Company or that would conflict with the Company's business.  Neither the execution or delivery of this Agreement, nor the carrying on of the Company's business by the employees of the Company, nor the conduct of the Company's business as now conducted and as presently proposed to be conducted, will, to the Company's knowledge, conflict with or result in a breach of the terms, conditions, or provisions of, or constitute a default under, any contract, covenant or instrument under which any such employee is now obligated.

 

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(c)        The Company is not delinquent in payments to any of its employees, consultants, or independent contractors for any wages, salaries, commissions, bonuses, or other direct compensation for any service performed for it to the date hereof or amounts required to be reimbursed to such employees, consultants, or independent contractors.  The Company has complied in all material respects with all applicable state and federal equal employment opportunity laws and with other laws related to employment, including those related to wages, hours, worker classification, and collective bargaining.  The Company has withheld and paid to the appropriate governmental entity or is holding for payment not yet due to such governmental entity all amounts required to be withheld from employees of the Company and is not liable for any arrears of wages, taxes, penalties, or other sums for failure to comply with any of the foregoing.

(d)        To the Company's knowledge, no Key Employee intends to terminate employment with the Company or is otherwise likely to become unavailable to continue as a Key Employee, nor does the Company have a present intention to terminate the employment of any of the foregoing.  The employment of each employee of the Company is terminable at the will of the Company.  Except as set forth in Section 2.16 of the Disclosure Schedule or as required by law, upon termination of the employment of any such employees, no severance or other payments will become due.  Except as set forth in Section 2.16 of the Disclosure Schedule, the Company has no policy, practice, plan, or program of paying severance pay or any form of severance compensation in connection with the termination of employment services.

(e)        The Company has not made any representations regarding equity incentives to any officer, employees, director or consultant that are inconsistent with the share amounts and terms set forth in the minutes of meetings of the Company's board of directors.

(f)        Each former Key Employee whose employment was terminated by the Company has entered into an agreement with the Company providing for the full release of any claims against the Company or any related party arising out of such employment.

(g)        Section 2.16 of the Disclosure Schedule sets forth each employee benefit plan maintained, established or sponsored by the Company, or which the Company participates in or contributes to, which is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA").  Except as set forth on Section 2.16 of the Disclosure Schedule, the Company has made all required contributions and has no liability to any such employee benefit plan, other than liability for health plan continuation coverage described in Part 6 of Title 1(B) of ERISA, and has complied in all material respects with all applicable laws for any such employee benefit plan.

(h)        To the Company's knowledge, none of the Key Employees of the Company has been (a) subject to voluntary or involuntary petition under the federal bankruptcy laws or any state insolvency law or the appointment of a receiver, fiscal agent or similar officer by a court for his business or property; (b) convicted in a criminal proceeding or named as a subject of a pending criminal proceeding (excluding traffic violations and other minor offenses); (c) subject to any order, judgment, or decree (not subsequently reversed, suspended, or vacated) of any court of competent jurisdiction permanently or temporarily enjoining him from engaging, or otherwise imposing limits or conditions on his engagement in any securities, investment advisory, banking, insurance, or other type of business or acting as an officer or director of a public company; or (d) found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated any federal or state securities, commodities, or unfair trade practices law, which such judgment or finding has not been subsequently reversed, suspended, or vacated.

2.17        Tax Returns and Payments.  There are no federal, state, county, local or foreign taxes due and payable by the Company which have not been timely paid.  There are no accrued and unpaid federal, state, county, local or foreign taxes of the Company which are due, whether or not assessed or disputed.  There have been no examinations or audits of any tax returns or reports by any applicable federal, state, local or foreign governmental agency.  The Company has duly and timely filed all federal, state, county, local and foreign tax returns required to have been filed by it and there are in effect no waivers of applicable statutes of limitations with respect to taxes for any year.

 

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2.18        Insurance.  Except as set forth on Section 2.18 of the Disclosure Schedule, the Company has in full force and effect fire and casualty insurance policies with extended coverage, sufficient in amount (subject to reasonable deductions) to allow it to replace any of its properties that might be damaged or destroyed.

2.19        Confidential Information and Invention Assignment Agreements.  Each current and former employee, consultant and officer of the Company has executed an agreement with the Company regarding confidentiality and proprietary information substantially in the form or forms made available to the counsel for the Investors (the "Confidential Information Agreements").  No current or former Key Employee has excluded works or inventions from his or her assignment of inventions pursuant to such Key Employee's Confidential Information Agreement.  The Company is not aware that any of its Key Employees is in violation thereof.  Except as set forth on Section 2.19 of the Disclosure Schedule, each Key Employee has entered into a non-competition agreement with the Company.

2.20        Permits; Compliance with Laws.  The Company has all franchises, permits, licenses and any similar authority necessary for the conduct of its business, the lack of which could reasonably be expected to have a Material Adverse Effect.  The Company is not in default in any material respect under any of such franchises, permits, licenses or other similar authority.  The Company is in compliance in all material respects with all applicable federal, state and local laws, regulations, orders and decrees.

2.21        Corporate Documents.  The Restated Certificate, the Certificate of Amendment and Bylaws of the Company are in the form provided to the Investors.  Except as set forth on Section 2.21 of the Disclosure Schedule, the copy of the minute books of the Company made available to the Investors contains minutes of all meetings of directors and stockholders and all actions by written consent without a meeting by the directors and stockholders since the date of incorporation which are in the possession of the Company and such minutes and actions accurately reflect in all material respects all actions by the directors (and any committee of directors) and stockholders with respect to all transactions referred to in such minutes.

2.22        Environmental and Safety Laws.  Except as could not reasonably be expected to have a Material Adverse Effect to the best of its knowledge (a) the Company is and has been in compliance with all Environmental Laws; (b) there has been no release or to the Company's knowledge threatened release of any pollutant, contaminant or toxic or hazardous material, substance or waste, or petroleum or any fraction thereof, (each a "Hazardous Substance") on, upon, into or from any site currently or heretofore owned, leased or otherwise used by the Company; (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; and (d) there are no underground storage tanks located on, no polychlorinated biphenyls ("PCBs") or PCB-containing equipment used or stored on, and no hazardous waste as defined by the Resource Conservation and Recovery Act, as amended, stored on, any site owned or operated by the Company, except for the storage of hazardous waste in compliance with Environmental Laws.  The Company has made available to the Investors true and complete copies of all material environmental records, reports, notifications, certificates of need, permits, pending permit applications, correspondence, engineering studies, and environmental studies or assessments.  For purposes of this Section 2.22, "Environmental Laws" means any law, regulation, or other applicable requirement relating to (a) releases or threatened release of Hazardous Substance; (b) pollution or protection of employee health or safety, public health or the environment; or (c) the manufacture, handling, transport, use, treatment, storage, or disposal of Hazardous Substances.

 

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2.23        No Disqualification Events.

(a)        With respect to the Notes and Warrants to be offered and sold hereunder in reliance on Rule 506 under the Securities Act, none of the Company, any of its predecessors, any affiliated company, any director, executive officer, other officer of the Company participating in the offering, any beneficial owner of 20% or more of the Company's outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 promulgated under the Securities Act) connected with the Company in any capacity at the time of sale (each, a "Company Covered Person" and, together, "Company Covered Persons") is subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) promulgated under the Securities Act (a "Disqualification Event"), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Company Covered Person is subject to a Disqualification Event.  The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e).

(b)        The Company is not aware of any Person (other than any Company Covered Person) that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Regulation D Securities.

(c)        The Company will notify the Investors in writing, prior to the Closing Date of (i) any Disqualification Event relating to any Company Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Company Covered Person.

2.24        Disclosure.  The Company has made available to the Investors all the information reasonably available to the Company that the Investors have requested for deciding whether to acquire the Notes and Warrants.  No representation or warranty of the Company contained in this Agreement, as qualified by the Disclosure Schedule, and no certificate furnished or to be furnished to Investors at the Closing contains any untrue statement of a material fact or, to the Company's knowledge, omits to state a material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances under which they were made.  It is understood that this representation (but not any other representation) is qualified by the fact that the Company has not delivered to the Investors, and has not been requested to deliver, a private placement or similar memorandum or any written disclosure of the types of information customarily furnished to purchasers of securities.

3.            Representations and Warranties of the Investors.  Each Investor hereby represents and warrants to the Company, severally and not jointly, that:

3.1        Authorization.  The Investor has full power and authority to enter into this Agreement to which the Investor is a party.  This Agreement to which the Investor is a party, when executed and delivered by the Investor, will constitute valid and legally binding obligations of the Investor, enforceable in accordance with their terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement of creditors' rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies or (b) to the extent the indemnification provisions contained in the Investors' Rights Agreement may be limited by applicable federal or state securities laws.

3.2        Purchase Entirely for Own Account.  This Agreement is made with the Investor in reliance upon the Investor's representation to the Company, which by the Investor's execution of this Agreement, the Investor hereby confirms, that the Securities to be acquired by the Investor will be acquired for investment for the Investor's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same.  By executing this Agreement, the Investor further represents that the Investor does not presently have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with respect to any of the Securities.  The Investor has not been formed for the specific purpose of acquiring the Securities.

 

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3.3        Disclosure of Information.  The Investor has had an opportunity to discuss the Company's business, management, financial affairs and the terms and conditions of the offering of the Securities with the Company's management and has had an opportunity to review the Company's facilities.  The foregoing, however, does not limit or modify the representations and warranties of the Company in Section 2 of this Agreement or the right of the Investors to rely thereon.

3.4        Restricted Securities.  The Investor understands that the Securities have not been, and will not be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Investor's representations as expressed herein.  The Investor understands that the Securities are "restricted securities" under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Investor must hold the Securities indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available.  The Investor acknowledges that the Company has no obligation to register or qualify the Securities for resale except as set forth in the Investors' Rights Agreement.  The Investor further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Securities, and on requirements relating to the Company which are outside of the Investor's control, and which the Company is under no obligation and may not be able to satisfy.

3.5        No Public Market.  The Investor understands that no public market now exists for the Securities, and that the Company has made no assurances that a public market will ever exist for the Securities.

3.6        Legends.  The Investor understands that the Securities, including any securities issued in respect of or exchange for the Securities, may bear one or all of the following legends:

(a)        "THE SECURITIES REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933."

(b)        Any legend set forth in, or required by, this Agreement or a substantially similar legend set forth in, or required by, this Agreement.

(c)        Any legend required by the securities laws of any state to the extent such laws are applicable to the Securities represented by the certificate so legended.

 

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3.7        Accredited Investor.  The Investor is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

3.8        No Disqualification Event.  With respect to the Securities, neither the Investor nor any of its directors, executive officers, other officers is subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) promulgated under the Securities Act.  To the extent that the Investor delivered a Rule 506 Disqualification Event Questionnaire to the Company in November 2013, as of the applicable Closing Date, such Investor represents and warrants that the statements made in such November 2013 Rule 506 Disqualification Event Questionnaire remain true, correct and complete.

3.9        Foreign Investors.  If the Investor is not a United States person (as defined by Section 7701(a)(30) of the Code), the Investor hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Securities, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Securities.  The Investor's subscription and payment for and continued beneficial ownership of the Securities will not violate any applicable securities or other laws of the Investor's jurisdiction.

3.10        No General Solicitation.  Neither the Investor, nor any of the Investor's officers, directors, employees, agents, stockholders or partners has either directly or indirectly, including through a broker or finder (a) engaged in any general solicitation, or (b) published any advertisement in connection with the offer and sale of the Securities.

3.11        Exculpation Among Investors.  The Investor acknowledges that the Investor is not relying upon any Person, other than the Company and its officers and directors and the Investor's advisors, in making its investment or decision to invest in the Company.  The Investor agrees that neither any Investor nor the respective controlling Persons, officers, directors, partners, agents, or employees of any Investor shall be liable to any other Investor for any action heretofore taken or omitted to be taken by any of them in connection with the purchase of the Securities.

3.12        Residence.  If the Investor is an individual, then the Investor resides in the state or province identified in the address of the Investor set forth on Exhibit A; if the Investor is a partnership, corporation, limited liability company or other entity, then the office or offices of the Investor in which it maintains its principal place of business is identified in the address or addresses of the Investor set forth on Exhibit A.

4.            Conditions to the Investors' Obligations at Closing.  The obligations of each Investor to purchase the Notes and Warrants at the Initial Closing or any other Closing are subject to the fulfillment, on or before such Closing, of each of the following conditions, unless otherwise waived:

4.1        Representations and Warranties.  The representations and warranties of the Company contained in Section 2 shall be true and correct in all respects as of such Closing.

4.2        Performance.  The Company shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by the Company on or before such Closing.

4.3        Compliance Certificate.  The Chief Financial Officer of the Company shall deliver to the Investors at such Closing a certificate certifying that the conditions specified in Sections 4.1, 4.2 and 4.4 through 4.13 have been fulfilled or satisfied.

 

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4.4        Qualifications.  All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Notes and Warrants pursuant to this Agreement shall be obtained and effective as of such Closing.

4.5        Certificate of Amendment.  The Company shall have filed the Certificate of Amendment with the Secretary of State of Delaware on or prior to the Initial Closing, and the Restated Certificate, as amended by the Certificate of Amendment, shall continue to be in full force and effect as of each Closing.

4.6        Secretary's Certificate.  The Secretary of the Company shall have delivered to the Investors at the Closing a certificate certifying with respect to (i) the Restated Certificate and the Certificate of Amendment, (ii) the Amended and Restated Bylaws of the Company, (iii) resolutions of the Board of Directors of the Company approving the Agreement, the Notes, the Warrants, the Second Stockholders' Agreements Amendment, the Security Agreement, and the Amended and Restated Intercreditor Agreement (collectively, the "Transaction Documents"), the Certificate of Amendment and the transactions contemplated under the Transaction Documents, and (iv) resolutions of the stockholders of the Company approving the Certificate of Amendment and the Transaction Documents.

4.7        Proceedings and Documents.  All corporate and other proceedings in connection with the transactions contemplated at the Closing and all documents incident thereto shall be reasonably satisfactory in form and substance to each Investor, and each Investor (or its counsel) shall have received all such counterpart original and certified or other copies of such documents as reasonably requested.  Such documents may include good standing certificates.

4.8        Preemptive Rights.  The Company shall have fully satisfied (including with respect to rights of timely notification) or obtained enforceable waivers in respect of any preemptive or similar rights directly or indirectly affecting any of its securities; provided, however, compliance with the participation rights provided to Investors under Section 4.1 of the Investors' Rights Agreement shall be conducted in accordance with Section 1.3(b) of this Agreement.

4.9        Second Stockholders' Agreements Amendment.  The Second Stockholders' Agreements Amendment shall have been executed and delivered by the Company and the stockholders party thereto.

4.10        Security Agreement.  The Security Agreement shall have been executed and delivered by the Company and the stockholders party thereto.

4.11        Amended and Restated Intercreditor Agreement.  The Amended and Restated Intercreditor Agreement shall have been executed and delivered by the Company and the stockholders party thereto.

4.12        Required Number of Investors.  At least five Investors must agree to purchase Notes; provided that H&H, jVen Capital, LLC, Versant Venture Capital III, L.P. and Versant Side Fund III, L.P. may collectively agree to waive this closing condition.

4.13        Investment Banker.  An engagement letter with at least one investment banker to act as the managing underwriter of an initial public offering of the Company's securities shall have been executed and delivered by the Company and the investment banker(s) party thereto.

 

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5.        Conditions of the Company's Obligations at Closing.  The obligations of the Company to sell the Notes and the Warrants to the Investors at the Initial Closing or any other Closing are subject to the fulfillment, on or before such Closing, of each of the following conditions, unless otherwise waived:

5.1        Representations and Warranties.  The representations and warranties of each Investor contained in Section 3 shall be true and correct in all respects as of such Closing.

5.2        Performance.  The Investors shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by them on or before such Closing.

5.3        Qualifications.  All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Notes and Warrants pursuant to this Agreement shall be obtained and effective as of such Closing.

5.4        Certificate of Amendment.  The Certificate of Amendment shall have been approved by the requisite stockholders, shall have been filed with the Secretary of State of Delaware on or prior to the Initial Closing, and the Restated Certificate, as amended by the Certificate of Amendment, shall continue to be in full force and effect as of each Closing.

5.5        Second Stockholders' Agreements Amendment.  The Second Stockholders' Agreements Amendment shall have been approved by the Board of Directors of the Company and the applicable stockholders and executed and delivered by the Company and the stockholders party thereto.

5.6        Security Agreement.  The Security Agreement shall have been approved by the Board of Directors of the Company and the applicable stockholders and executed and delivered by the Company and the stockholders party thereto.

5.7        Amended and Restated Intercreditor Agreement.  The Amended and Restated Intercreditor Agreement shall have been approved by the Board of Directors of the Company and the applicable stockholders and executed and delivered by the Company and the stockholders party thereto.

6.        Miscellaneous.

6.1        Survival of Warranties.  Unless otherwise set forth in this Agreement, the representations and warranties of the Company and the Investors contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and each Closing and shall in no way be affected by any investigation or knowledge of the subject matter thereof made by or on behalf of the Investors or the Company.

6.2        Successors and Assigns.  The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

6.3        Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware excluding that body of law pertaining to conflict of law.

 

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6.4        Counterparts; Facsimile.  This Agreement may be executed and delivered by facsimile signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

6.5        Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

6.6        Notices.  All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient's next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt.  All communications shall be sent to the respective parties at their address as set forth on the signature page or Exhibit A, or to such e-mail address, facsimile number or address as subsequently modified by written notice given in accordance with this Section 6.6.

If notice is given to the Company, a copy shall also be sent to

Ballard Spahr LLP

1735 Market Street, 51st Floor

Philadelphia, PA 19103-7599

 Attn: Mary J. Mullany

6.7        No Finder's Fees.  Except as set forth on Section 6.7 of the Disclosure Schedule, each party represents that it neither is nor will be obligated for any finder's fee or commission in connection with this transaction.  Each Investor agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a finder's or broker's fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which such Investor or any of its officers, employees, or representatives is responsible.  The Company agrees to indemnify and hold harmless each Investor from any liability for any commission or compensation in the nature of a finder's or broker's fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

6.8        Amendments and Waivers.  Any term of this Agreement may be amended, terminated or waived only with the written consent of the Company and the holders of at least 67% of the then-outstanding aggregate value of the Notes.  Any amendment or waiver effected in accordance with this Section 6.8 shall be binding upon the Investors and each transferee of the Securities, each future holder of all such Securities, and the Company.  This Agreement may not be terminated or amended and the observance of any term of this Agreement may not be waived with respect to any Investor without the consent of such Investor unless such amendment, termination or waiver applies to all Investors in the same fashion.  Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing; and shall be effective only to the extent specifically set forth in such writing.

6.9        Severability.  The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.

 

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6.10        Delays or Omissions.  No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

6.11        Entire Agreement.  This Agreement (including the Exhibits hereto) and the Restated Certificate, as amended by the Certificate of Amendment, constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties are expressly canceled.

6.12        Exculpation Among Investors.  Each Investor acknowledges to the other Investors that such Investor is not relying upon any person, firm, or corporation, other than the Company and its officers and directors, in making its investment or decision to invest in the Company.  Each Investor agrees that no Investor, nor the respective Affiliates of any Investor, shall be liable to each of the other Investors for any action heretofore or hereafter taken or omitted to be taken by any of them in connection with the transactions described in this Agreement.

[Remainder of Page Intentionally Left Blank]

 

 

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IN WITNESS WHEREOF, the parties have executed this Notes Purchase Agreement as of the date first written above.

COMPANY:

OPGEN, INC.

By:  /s/ C. Eric Winzer

Name: C. Eric Winzer

 Its:  Chief Financial Officer

 

 

  

IN WITNESS WHEREOF, the parties have executed this Notes Purchase Agreement as of the date first written above.

INVESTORS:

HARRIS & HARRIS GROUP, INC.

By: /s/ Daniel Wolfe

Name:  Daniel Wolfe

 Title:

IN WITNESS WHEREOF, the parties have executed this Notes Purchase Agreement as of the date first written above.

INVESTORS:

jVEN CAPITAL, LLC

By:   /s/ Evan Jones

Name:  Evan Jones

 Title:    Managing Member

IN WITNESS WHEREOF, the parties have executed this Notes Purchase Agreement as of the date first written above.

INVESTORS:

VERSANT VENTURE CAPITAL III, L.P.

By:         Versant Ventures III, LLC,

its General Partner

By: /s/ Brian Atwood

Name: Brian Atwood

Title: Managing Director

VERSANT SIDE FUND III, L.P.

By:         Versant Ventures III, LLC,

its General Partner

By: /s/ Brian Atwood

Name: Brian Atwood

Title: Managing Director

IN WITNESS WHEREOF, the parties have executed this Notes Purchase Agreement as of the date first written above.

INVESTORS:

CROSS CREEK CAPITAL, L.P.

By:      Cross Creek Capital GP, L.P.,

             its Sole General Partner

By:  /s/ Tyler Christenson

Name:

Title:

CROSS CREEK CAPITAL EMPLOYEES FUND, L.P.

By:     Cross Creek Capital GP, L.P.,

             its Sole General Partner

By:  /s/ Tyler Christenson

Name:

Title:

IN WITNESS WHEREOF, the parties have executed this Notes Purchase Agreement as of the date first written above.

INVESTOR:

/s/ Virginia Collett

VIRGINIA COLLETT

IN WITNESS WHEREOF, the parties have executed this Notes Purchase Agreement as of the date first written above.

INVESTOR:

/s/ John C. Lee

JOHN C. LEE IV

 

  

IN WITNESS WHEREOF, the parties have executed this Notes Purchase Agreement as of the date first written above.

INVESTOR:

THUNDER RIVER LLC

By:    /s/ Charles M. Fleischman

Name: Charles M. Fleischman

Title: Authorized Signatory

 

  

EXHIBITS

	
Exhibit A -

	
Schedule of Investors

	 	 
	
Exhibit B -

	
Form of Note

	 	 
	
Exhibit C -

	
Form of Certificate of Amendment of Certificate of Incorporation

	 	 
	
Exhibit D -

	
Form of Warrant

	 	 
	
Exhibit E -

	
Form of Security Agreement

	 	 
	
Exhibit F -

	
Form of Second Stockholders' Agreements Amendment

	 	 
	
Exhibit G -

	
Disclosure Schedule

	 	 
	
Exhibit H-1 -

	
Capitalization as of February 11, 2015

	 	 
	
Exhibit H-2 -

	
Capitalization Immediately Following the Initial Closing

	 	 
	
Exhibit I -

	
Form of Amended and Restated Intercreditor Agreement

	 	 
	 	 

 

 

 

  

	
Investor

	
Principal Amount of Note

	
Versant Venture Capital III, L.P.

Versant Side Fund III, L.P.

 

	
$400,452

 $2,366

	
jVen Capital, LLC

 

	
$540,443

	
Harris & Harris Group, Inc.

 

	
$208,035

	
Cross Creek Capital, L.P.

Cross Creek Capital Employees Fund, L.P.

 

	
$59,578

 $5,855

	
Virginia Collett

 

	
$13,101

	
John C. Lee IV

 

	
$11,115

	
Thunder River LLC

 

	
$3,054

	
TOTAL

	
$1,243,999

 

 

 

  

A-1

EXHIBIT B

FORM OF NOTE

THE SECURITIES REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

OPGEN, INC.

 SECURED CONVERTIBLE PROMISSORY NOTE

Note No.  N-______

	
Amount: $___________

	
Issue Date:  February __, 2015

1.   Principal Amount.  For value received, OpGen, Inc., a Delaware corporation (the "Company), does hereby promise to pay to the order of ________________________________ or its permitted assignee (the "Holder"), the principal sum of __________________ and ___/100 Dollars ($__________), plus interest accrued thereon, as hereinafter specified (collectively, the "Obligations") on the earliest to occur of (i) February __, 2016 (the "Maturity Date") or (ii) an Event of Default (as defined below).

2.   Notes Purchase Agreement.  This Note is one of a series of promissory notes (the "Financing Notes") issued pursuant to the Notes Purchase Agreement, dated as of February 11, 2015, among the Company and the investors named therein (as the same may be amended from time to time, the "Purchase Agreement"), and is subject to the provisions thereof.  Capitalized terms used but not defined herein have the meanings given to them in the Purchase Agreement.

3.   Definitions.  In addition to the other terms defined herein, the following terms shall have the following meanings ascribed to them:

3.1   "Bankruptcy Law" means Title 11, United States Code or any similar Federal or state law for the relief of debtors.

3.2   "IPO" means an initial public offering of the securities of the Company registered under the Securities Act.

3.3   "Requisite Holders" means the holders holding at least 67% of the principal amount then outstanding of the Financing Notes.

3.4   "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

3.5   "QPO" means the closing of the sale of shares of Common Stock to the public at a price per share of at least $4.00 (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Common Stock), in a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act resulting in at least $30,000,000 of proceeds, net of the underwriting discount and commissions, to the Company, as this definition may be amended from time to time in an amendment or amendment and restatement of the Restated Certificate.

 

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4.   Interest.  The Company agrees to pay interest, from the date hereof on the unpaid principal amount, at a rate equal to eight percent (8%) per annum, compounded annually (the "Interest Rate"), until the principal amount and all interest accrued thereon are paid (or converted, as provided in Section 5 hereof).  Subject to Section 5 hereof, interest shall be due and payable to the Holder on the Maturity Date.  In no event shall the amount of interest paid or agreed to be paid to the Holder hereunder exceed the highest lawful rate permissible under any law which a court of competent jurisdiction may deem applicable hereto.  In such event, the Interest Rate shall automatically be reduced to the maximum rate permitted by such law.

5.   Conversion.

5.1   This Note will be convertible (the "Conversion"), in whole and not in part:

(a)    at the option of the Holder, into shares of the Company's common stock, par value $0.01 per share ("Common Stock"), at any time after the closing of a QPO;

(b)    at the option of the Holder, into either (i) shares of Common Stock, or (ii) shares of the Company's Series A Convertible Preferred Stock, par value $0.01 per share ("Series A Preferred Stock"), at any time after the closing of an IPO that is not a QPO; or

(c)    at the option of the Holder, into shares of Series A Preferred Stock, if no IPO has been consummated.  Notwithstanding anything in this Section 5.1 to the contrary, if an IPO is not consummated on or before June 30, 2015, then this Note will be convertible only pursuant to this Section 5.1(c) as long as this Note remains outstanding.

5.2    Conversion Rate.

(a)   Upon Conversion pursuant to Section 5.1(a), this Note shall be converted into one (1) share of Common Stock for each $1.00 of principal remaining on the Note.

(b)   Upon Conversion pursuant to Section 5.1(b), this Note shall be converted, at the option of the Holder, into either (i) one (1) share of Common Stock for each $1.00 of principal remaining on this Note, or (ii) one (1) share of Series A Preferred Stock for each $1.00 of principal remaining on this Note.

(c)   Upon Conversion pursuant to Section 5.1(c), this Note shall be converted into one and one quarter (1.25) shares of Series A Preferred Stock for each $1.00 of principal remaining on this Note.

Any accrued and unpaid interest on this Note shall be paid in cash at the time of Conversion.

 

2

5.3   Mechanics and Effect of Conversion.

(a)   No fractional units will be issued upon conversion of this Note.  In lieu of any fractional units to which the Holder may otherwise be entitled, the Company will pay to the Holder in cash the unconverted amount that would otherwise be converted into such fractional units.

(b)   Upon Conversion of this Note and payment of all accrued and unpaid interest due hereunder, the Holder shall surrender this Note, duly endorsed, at the principal offices of the Company or any transfer agent of the Company, and this Note shall be canceled in all respects.  The Company will, at its expense, as soon as practicable thereafter, issue and deliver to the Holder a certificate or certificates for the number of shares of Common Stock or Series A Preferred Stock, as applicable, to which the Holder is entitled upon the Conversion.

(c)   Upon Conversion of this Note and payment of all accrued and unpaid interest due hereunder, the Company will be forever released from all of its obligations and liabilities under this Note with regard to that portion of the principal amount and accrued interest being converted, including, without limitation, the obligation to pay such portion of the principal amount and accrued interest.

5.4   Authorization of Conversion Shares.  The Company hereby covenants and agrees to take all such actions as may be necessary to authorize such number of additional shares of Common Stock and Series A Preferred Stock as will be sufficient to accomplish the Conversion.

6.   Security Agreement. This Note is subject to the terms and conditions of that certain Security Agreement dated as of February ___, 2015, by and between the Company and each holder of the Financing Notes (as amended or restated from time to time, the "Security Agreement"), and each holder of this Note, by his, her or its acceptance hereof, is entitled to the rights and benefits of, and agrees to be bound by, the Security Agreement.

7.   Payment.

7.1   Repayment.  All payment of principal shall be due and payable in lawful money of the United States of America at the principal office of the Holder, or at such other place as the holder hereof may from time to time designate in writing to the Company, not later than 1:00 p.m. Pacific Time on the Maturity Date, unless this Note shall have been previously converted pursuant to Section 5 above.  All payments shall be applied first to interest accrued and unpaid hereunder, and thereafter to principal.

7.2   Prepayment.  The Company may prepay, without penalty, any principal amount on this Note, in whole or in part, at any time following the three-month anniversary of the closing of an IPO, provided that any prepayment between the 3-month anniversary of the closing of an IPO and the 6-month anniversary of an IPO may only be paid from capital raised by the Company subsequent to such IPO.  Any prepayment will be applied first to interest accrued and unpaid hereunder, and thereafter to principal.

8.   Events of Default.  The occurrence of any one or more of the following events shall constitute an "Event of Default" under this Note:

8.1   Payment Default.  The Company shall fail to pay the outstanding principal or accrued interest amount due hereunder or the outstanding principal due or accrued interest amount due under any of the Financing Notes, or any portion thereof when due, whether on the Maturity Date, or on such earlier date as is required by Section 9, or otherwise;

 

3

8.2   Other Default.  The Company shall materially breach the terms of this Note, or other material agreements between the Company and the holders of the Financing Notes, and shall fail to cure such material breach within ten (10) days after written notice thereof to the Company;

8.3   Other Indebtedness.  The Company shall default under any other material indebtedness of the Company, and shall fail to cure such default within ten (10) days after written notice thereof to the Company; or

8.4   Bankruptcy, Etc.  (a) The Company, pursuant to or within the meaning of any Bankruptcy Law, (i) admits in writing its inability to pay its debts generally as they become due, (ii) commences a voluntary case or proceeding under any Bankruptcy Law with respect to itself, (iii) consents to the entry of a judgment, decree or order for relief against it in an involuntary case or proceeding under any Bankruptcy Law, (iv) consents to the appointment of a custodian of it or for any part of its assets, (v) consents to or acquiesces in the institution of bankruptcy or insolvency proceedings against it, (vi) applies for, consents to or acquiesces in the appointment of or taking possession by a custodian of the Company or for any part of its assets, (vii) makes a general assignment for the benefit of its creditors, or (viii) takes any corporate act to authorize any of the foregoing; or (b) an involuntary petition is filed against the Company (unless such petition is dismissed or discharged within sixty (60) days) under any Bankruptcy Law now or hereafter in effect, or a custodian, receiver, trustee or assignee for the benefit of creditors (or other similar official) is appointed to take possession, custody or control of any property of the Company.

9.   Remedies.  Upon or at any time after the occurrence of an Event of Default specified in Sections 8.1, 8.2, or 8.3 hereof, all Obligations under this Note shall, upon the demand of the Holder, become due and payable without further presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived.  Upon the occurrence of an Event of Default specified in Section 8.4 hereof, all Obligations shall thereupon and concurrently therewith become due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived.

10.   Waiver and Amendment.  Any waiver by the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note.  The failure or delay of the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive Holder of the right thereafter to insist upon strict adherence to that term or any other term of this Note.  Any waiver must be in writing.  Any term of this Note may be amended and the observance of any term of this Note may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the Requisite Holders, except for the provisions of Section 5 or other provisions related to the Conversion of this Note, which provisions can only be amended with the written consent of the Holder.  This Note may not be terminated or amended and the observance of any term of this Note may not be waived with respect to the Holder without the consent of such Holder unless such amendment, termination or waiver applies to all holders of the Financing Notes in the same fashion.  Any waiver or amendment effected in accordance with this section shall be binding upon the Company and the Holder.

11.   Governing Law.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THE PURCHASE AGREEMENT, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS NOTE AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO OBLIGATIONS MADE AND PERFORMED IN THAT STATE, AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

4

12.   Transfer.  This Note may not be transferred or assigned in any manner without the prior written consent of the Company (which consent may be withheld in its sole and absolute discretion); provided, however, that no prior written consent of the Company shall be required for any transfer of this Note to any venture capital fund now or hereafter existing which is controlled by or under common control with one or more general partners or managing members of the Holder or shares the same management company with the Holder, and, provided, further, that no pledge of this Note by the Holder pursuant to a credit facility or other bank indebtedness shall be considered an assignment hereunder requiring the Company's consent.  Any attempted transfer or assignment of this Note (or any portion thereof) not complying with this Section 12 shall be null and void.

13.   Notices.  Notices hereunder shall be made as described in the Purchase Agreement.

14.   Stockholders, Officers and Directors Not Liable.  In no event shall any stockholder, officer or director of the Company be liable for any amounts due or payable pursuant to this Note.  This Note is solely an obligation of the Company.

15.   Loss of Note.  Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Note or any Note exchanged for it, and indemnity satisfactory to the Company (in case of loss, theft or destruction) or surrender and cancellation of such Note (in the case of mutilation), the Company will make and deliver in lieu of such Note a new Note of like tenor.

[Signature page follows]

 

 

 

5

IN WITNESS WHEREOF, the Company has executed and delivered this Note as of the day and year first above written.

COMPANY:

OPGEN, INC.,

a Delaware corporation

By:  ___________________________________

Name:  C. Eric Winzer

Title:    Chief Financial Officer

 

 

 

 

 

 

6EX-10.1

 Exhibit 10.1 

AMENDMENT NO. 1 TO REVOLVING CREDIT AGREEMENT 

This AMENDMENT NO. 1 TO REVOLVING CREDIT AGREEMENT, dated as of February 25, 2015 (this “Amendment”), among Harris
Corporation, a Delaware corporation (the “Company”) and the Lenders under the Credit Agreement (each as defined below) party hereto amends the Revolving Credit Agreement, dated as of September 28, 2012 (as amended, restated,
extended, supplemented, modified and otherwise in effect on the date hereof, the “Credit Agreement”), among, inter alios, the Company, the Subsidiary Borrowers (as defined in the Credit Agreement, and collectively with the
Company, the “Borrowers”), each lender from time to time party thereto (the “Lenders”) and Suntrust Bank, as administrative agent (in such capacity, together with its successors and permitted assigns, the
“Administrative Agent”), as an issuing bank for letters of credit and as swingline lender. 
 W I T N E S S E T
H: 
 WHEREAS, the Company and the Lenders party hereto constituting the Required Lenders wish to amend the Credit Agreement
as set forth herein. 
 NOW THEREFORE, in consideration of the foregoing recital, mutual agreements contained herein and for good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Lenders party hereto hereby agree as follows: 

Section 1. Defined Terms. All capitalized terms used but not defined in this Amendment shall have the respective meanings
specified in the Credit Agreement. 
 Section 2. Amendments to the Credit Agreement. Subject to the satisfaction of the
conditions set forth in Section 3 of this Amendment, the Credit Agreement is hereby amended as follows: 
 (a) Schedule I to
this Amendment is hereby inserted as a new Exhibit E to the Credit Agreement. 
 (b) The following definitions are hereby inserted in
the appropriate alphabetical locations into Section 1.01: 
 (i) “Acquired Business” means Exelis, together
with its Subsidiaries. 
 (ii) “Amendment No. 1 Effective Date” means February 25, 2015. 

(iii) “CFC” means a “controlled foreign corporation” within the meaning of Section 957(a) of the Code. 

(iv) “Excluded Debt” means (a) the Debt of the Company’s Unrestricted Subsidiaries, (b) prior to the first to
occur of (x) the Exelis Acquisition Closing Date and (y) the date that is ten (10) Business Days following the termination of the Exelis Acquisition Agreement, Debt incurred or issued in connection with or with respect to any Exelis
Acquisition Financing and (c) prior to the first to occur of (x) the date that is thirty (30) Business Days following the Exelis Acquisition Closing Date and (y) the date that is ten (10) Business Days following termination
of the Exelis Acquisition Agreement, Refinancing Debt. 
 (v) “Exelis” means Exelis Inc., an Indiana corporation. 

 (vi) “Exelis Acquisition” means the acquisition by the Company, through a
Subsidiary thereof, of all of the outstanding share capital of Exelis pursuant to the Exelis Acquisition Agreement. 
 (vii) “Exelis
Acquisition Agreement” means the agreement and plan of merger, dated as of February 5, 2015 (as amended, supplemented or modified from time to time), among the Company, a Subsidiary thereof and Exelis. 

(viii) “Exelis Acquisition Closing Date” the date of the consummation of the Exelis Acquisition. 

(ix) “Exelis Acquisition Financing” means Debt (up to an aggregate principal amount of $3,400,000,000) issued or borrowed by
the Company and/or its Subsidiaries to finance the Exelis Acquisition and which is redeemable or prepayable at not more than 101% of the principal amount thereof (plus accrued interest) if the Exelis Acquisition is not consummated. 

(x) “Foreign Subsidiary” means any Subsidiary of the Company that (i) is not organized under the Laws of the United
States of America, any State thereof or the District of Columbia, (ii) is an entity substantially all of whose assets consist (directly or indirectly) of the capital stock and/or Debt of one or more Subsidiaries that are CFCs or (iii) is a
Subsidiary of a Foreign Subsidiary. 
 (xi) “Guarantee” means a guarantee executed by a Guarantor in substantially the form
of Exhibit E. 
 (xii) “Guarantor” means any Restricted Subsidiary of the Company that has executed and delivered a
Guarantee or supplement thereto pursuant to Section 6.13. 
 (xiii) “Refinancing Debt” means Debt incurred or
borrowed by the Company and/or its Subsidiaries, to the extent the proceeds thereof have been escrowed, for the redemption, defeasement, satisfaction and discharge or repayment of any existing Debt of the Company, Exelis or any of their respective
Subsidiaries. 
 (c) The definition of “Loan Documents” set forth in Section 1.01 is hereby restated in its entirety
to read as follows: 
 “Loan Documents” means this Agreement, the Guarantee, the Fee Letter, each Request for Credit
Extension, each Compliance Certificate, any promissory notes issued pursuant to this Agreement and any and all other instruments, documents and agreements executed by any Borrower in connection with any of the foregoing. 

(d) The definition of “Total Capital” set forth in Section 1.01 is hereby amended by adding the following proviso to the
end of such definition: 
 “; provided that the foregoing shall give effect on a pro forma basis to any
acquisition or disposition which has been consummated subsequent thereto” 
 (e) The following Section 6.13 is hereby inserted in
the appropriate location in the Credit Agreement: 

  
 2 

 6.13. Subsidiary Guarantee. In the event that any Restricted Subsidiary (other than a
Foreign Subsidiary) of the Company (including following the Exelis Acquisition Closing Date, the Acquired Business) incurs, borrows or guarantees any Debt in a committed or outstanding principal amount in excess of $100,000,000 or it is otherwise
agreed by the Administrative Agent and the Company that any such Restricted Subsidiary shall become a Guarantor, the Company shall (within ten Business Days of such Restricted Subsidiary having incurred, borrowed or guaranteed such Debt or within 20
Business Days of the Company having agreed that such Restricted Subsidiary shall become a Guarantor (or, in each case, such longer period as the Administrative Agent may approve, such approval not to be unreasonably withheld, delayed or
conditioned)) cause such Restricted Subsidiary to execute and deliver to the Administrative Agent the Guarantee or a supplement to the Guarantee (and in connection therewith, provide to the Administrative Agent such documents with respect to such
Restricted Subsidiary corresponding to those set forth in Section 4.01(a)(ii) and (iii)); provided that in no event shall Exelis or its Subsidiaries be required to become a Guarantor prior to ten Business Days following the
Exelis Acquisition Closing Date. Each Guarantor shall be released from its Guarantee upon the Company’s written request to the Administrative Agent at such time as such Restricted Subsidiary does not or shall no longer have any Debt outstanding
or guarantee (other than pursuant to its Guarantee) any Debt, in each case in a committed or outstanding principal amount in excess of $100,000,000. 
  

	 	(f)	Section 7.01 is hereby amended by making the following changes: 

  

	 	(i)	Delete “and” at the end of Section 7.01(p); 

  

	 	(ii)	Insert immediately after Section 7.01(p) the following: 

 “(q) Liens in
connection with the deposit of cash or cash equivalents from the proceeds of any Refinancing Debt; and”; and 
  

	 	(iii)	Renumber Section 7.01(q) as Section 7.01(r), replace the reference to “(p)” therein with “(q)” and replace the reference to “(q)” therein with “(r)”.

  

	 	(g)	Section 7.06 is hereby restated in its entirety to read as follows: 

Section 7.06. Consolidated Total Indebtedness to Total Capital. Permit the ratio of Consolidated Total Indebtedness (excluding
Excluded Debt) (it being understood that Consolidated Total Indebtedness does not include pension liabilities) to Total Capital (excluding the Net Worth of Unrestricted Subsidiaries) to be greater than (i) 0.65:1.00 prior to the Exelis
Acquisition Closing Date, (ii) 0.675:1.00 from and including the Exelis Acquisition Closing Date until and including the date that is nine (9) months following the Exelis Acquisition Closing Date and (iii) 0.65:1.00 thereafter.
Compliance with this requirement shall be required 

  
 3 

 
at all times and shall be reported for the last day of each fiscal quarter commencing with the fiscal quarter ending closest to the Amendment No. 1 Effective Date. 

 

	 	(h)	Section 10.01(g) is hereby restated in its entirety to read as follows: 

  

	 	(g)	(x) release the Company from its obligations under Article XI or (y) release any Guarantor from its Guarantee other than a release made in accordance with the applicable provision of this Agreement or
such Guarantee; 

  

	 	(i)	Section 10.20 is hereby restated in its entirety to read as follows: 

Section 10.20. Patriot Act Notice. The Administrative Agent and each Lender hereby notifies the Borrowers that, pursuant to
the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies the Borrowers and the Guarantors which information includes the name and address of the Borrowers and the Guarantors and other information
that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrowers and the Guarantors in accordance with the Patriot Act. The Company shall, and shall cause each Guarantor to, provide to the extent commercially
reasonable, such information and take such actions as are reasonably requested by the Administrative Agent or any Lender in order to assist the Administrative Agent and the Lenders in maintaining compliance with the Patriot Act. 

Section 3. Conditions to Effectiveness. This Amendment shall become effective on the date hereof (the “Effective
Date”) when and if each of the following conditions is satisfied: 
 (a) Executed Amendment No. 1 to Credit Agreement.
The Administrative Agent shall have received one or more counterparts of this Amendment duly executed by the Company and the Lenders constituting Required Lenders. 

(b) Expenses. The Administrative Agent shall have received payment of all expenses then due and payable to the Administrative Agent
pursuant to the Credit Agreement (including all Attorney Costs of the Administrative Agent), subject to the Company receiving an invoice with respect thereto two (2) Business Days prior to the date hereof. 

Section 4. Representations and Warranties. To induce the Lenders to enter into this Amendment, the Company represents and warrants
to the Administrative Agent and Lenders that, as of the Effective Date: 
 (a) the execution, delivery and performance by the Company of
this Amendment and the transactions contemplated hereby are within its corporate power, have been duly authorized by all necessary corporate or analogous action, and do not contravene (i) the Company’s Organization Documents, (ii) any
applicable Laws or (iii) any material contractual restriction binding on or affecting the Company; 
 (b) no authorization or approval
or other action by, and no notice to or filing with, any Governmental Authority or any other Person is required for the due execution, delivery and performance by the Company of this Amendment; 

  
 4 

 (c) each of this Amendment and the Credit Agreement, as amended hereby, when delivered by the
Company hereunder, will be, the legal, valid and binding obligation of each Borrower enforceable against such Borrower in accordance with its respective terms except that such enforcement may be limited by applicable Debtor Relief Laws; 

(d) no Default or Event of Default shall exist, or would result from the execution, delivery or performance by the Company of this Amendment;
and 
 (e) the representations and warranties of each Borrower as set forth in this Amendment and in the Credit Agreement, as amended
hereby, are true and correct in all material respects on and as of the Effective Date as if made on and as of the Effective Date except to the extent that such representations and warranties specifically refer to an earlier date, in which case they
shall be true and correct in all material respects as of such earlier date. 
 Section 5. Miscellaneous.  

(a) Confirmation of Loan Documents. Except as expressly provided in this Amendment, the Company hereby ratifies and confirms all of the
terms and conditions of the Credit Agreement (including, without limitation, the Company’s guaranty in Article XI thereof) and the other Loan Documents to which it is a party and all documents, instruments and agreements related thereto,
which remain in full force and effect. The Company hereby reconfirms its obligations pursuant to the Credit Agreement to pay and reimburse the Administrative Agent, the L/C Issuers and the Lenders for all costs and expenses (including without
limitation, all Attorney Costs) incurred in connection with the negotiation, preparation, execution and delivery of this Amendment to the extent required by Section 10.04 of the Credit Agreement, as amended hereby. The Credit Agreement,
together with this Amendment, shall be read and construed as a single agreement. All references in the Loan Documents to the Credit Agreement or any other Loan Document shall hereafter refer to the Credit Agreement, as amended hereby, or any other
Loan Document as amended hereby. This Amendment shall constitute a Loan Document. 
 (b) Limitation of this Amendment. The amendments
set forth herein are effective solely for the purposes set forth herein and shall be limited precisely as written. Except as expressly provided herein, this Amendment shall not be deemed to (i) be a consent to any amendment, waiver or
modification of any other term or condition of the Credit Agreement or any other Loan Document, or (ii) operate as a waiver or otherwise prejudice any right, power or remedy that the Administrative Agent or Lenders may now have or may have in
the future under or in connection with the Credit Agreement or any other Loan Document, except as specifically set forth herein. Upon the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”,
“herein”, “hereof” and words of like import and each reference in the Credit Agreement and the Loan Documents to the Credit Agreement shall mean the Credit Agreement as amended hereby. This Amendment shall be construed in
connection with and as part of the Credit Agreement. 
 (c) Captions. Section headings used herein are for convenience of reference
only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment. 

(d) Governing Law. This Amendment shall be governed by, and construed in accordance with, the law of the State of New York. 

(e) Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed 

  
 5 

 
to be an original and all of which taken together shall constitute one and the same agreement. Receipt by facsimile or electronic transmission of any executed signature page to this Amendment
shall constitute effective delivery of such signature page. 
 (f) Successors and Assigns. This Amendment shall be binding upon and
shall inure to the sole benefit of the Borrowers, the Administrative Agent and the Lenders and their respective successors and assigns. 

(g) References. Any reference to the Credit Agreement contained in any notice, request, certificate, or other document executed
concurrently with or after the execution and delivery of this Amendment shall be deemed to include this Amendment unless the context shall otherwise require. 

  
 6 

 IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and delivered as
of the date first above written. 
  

			
	SUNTRUST BANK, as a Lender
		
	By:		/s/ Mark Kelley
			Name: Mark Kelley
			Title: Managing Director

  
  

(Signature Page to Amendment No. 1) 

 
			
	MORGAN STANLEY BANK, N.A., as a Lender
		
	By:		/s/ Jason Lipschitz
			Name: Jason Lipschitz
			Title: Authorized Signatory

  
  
  

(Signature Page to Amendment No. 1) 

 
			
	BANK OF AMERICA, N.A., as a Lender
		
	By:		/s/ Kenneth Beck
			Name: Kenneth Beck
			Title: Director

  
  
  

(Signature Page to Amendment No. 1) 

 
			
	CITIBANK, N.A., as a Lender
		
	By:		/s/ Robert F. Parr
			Name: Robert F. Parr
			Title: Vice President and Managing Director

  
  
  

(Signature Page to Amendment No. 1) 

 
			
	BRANCH BANKING AND TRUST COMPANY, as a Lender
		
	By:		/s/ Kelly Attayek
			Name: Kelly Attayek
			Title: Banking Officer

  
  
  

(Signature Page to Amendment No. 1) 

 
			
	JPMORGAN CHASE BANK, N.A., as a Lender
		
	By:		/s/ Antje B. Focke
			Name: Antje B. Focke
			Title: Vice President

  
  
  

(Signature Page to Amendment No. 1) 

 
			
	HSBC BANK USA, N.A., as a Lender
		
	By:		/s/ Santiago Riviere
			Name: Santiago Riviere
			Title: Senior Vice President

  
  
  

(Signature Page to Amendment No. 1) 

 
			
	PNC BANK N.A., as a Lender
		
	By:		/s/ Ryan Thompson
			Name: Ryan Thompson
			Title: Vice President

  
  
  

(Signature Page to Amendment No. 1) 

 
			
	TD BANK, N.A., as a Lender
		
	By:		/s/ Craig Welch
			Name: Craig Welch
			Title: Senior Vice President

  
  
  

(Signature Page to Amendment No. 1) 

 
			
	THE NORTHERN TRUST COMPANY, as a Lender
		
	By:		/s/ Molly Drennan
			Name: Molly Drennan
			Title: Senior Vice President

  
  
  

(Signature Page to Amendment No. 1) 

 
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender
		
	By:		/s/ Scott Santa Cruz
			Name: Scott Santa Cruz
			Title: Managing Director

  
  
  

(Signature Page to Amendment No. 1) 

 
			
	THE BANK OF NOVA SCOTIA, as a Lender
		
	By:		/s/ Eugene Dempsey
			Name: Eugene Dempsey
			Title: Director

  
  
  

(Signature Page to Amendment No. 1) 

 
			
	U.S. BANK NATIONAL ASSOCIATION, as a Lender
		
	By:		/s/ John T. Pearson
			Name: John T. Pearson
			Title: Vice President

  
  
  

(Signature Page to Amendment No. 1) 

 
			
	THE BANK OF NEW YORK MELLON, as a Lender
		
	By:		/s/ Jeffrey Dears
			Name: Jeffrey Dears
			Title: Vice President

  
  
  

(Signature Page to Amendment No. 1) 

 Accepted and Agreed: 
  

 

			
	HARRIS CORPORATION, as Borrower
		
	By:		/s/ Miguel A. Lopez
	Name:		Miguel A. Lopez
	Title:		 Senior Vice President and
 Chief Financial
Officer

		
			
	
		
	By:		/s/ Charles J. Greene
	Name:		Charles J. Greene
	Title:		Vice President Tax and Treasurer
		
			

  
  
  

 
  

(Signature Page to Amendment No. 1) 

 SCHEDULE I 

FORM OF 
 GUARANTEE

 GUARANTEE 
 Dated
as of [            ], 20[    ] 
 among 

THE GUARANTORS NAMED HEREIN 
 and

 THE ADDITIONAL GUARANTORS REFERRED TO HEREIN, 

as Guarantors, 
 and 

SUNTRUST BANK, 
 as Administrative
Agent 

 TABLE OF CONTENTS 

 

							
	 Section
	  	 	  	Page	 
			
	 SECTION 1.
	  	 Guarantee; Limitation of Liability
	  	 	1	  
	 SECTION 2.
	  	 Guarantee Absolute
	  	 	2	  
	 SECTION 3.
	  	 Waivers and Acknowledgments
	  	 	3	  
	 SECTION 4.
	  	 Subrogation
	  	 	4	  
	 SECTION 5.
	  	 Representations and Warranties
	  	 	4	  
	 SECTION 6.
	  	 Covenants
	  	 	5	  
	 SECTION 7.
	  	 Guarantee Supplements, Etc
	  	 	5	  
	 SECTION 8.
	  	 Notices, Etc
	  	 	5	  
	 SECTION 9.
	  	 No Waiver; Remedies
	  	 	5	  
	 SECTION 10.
	  	 Right of Set-off
	  	 	5	  
	 SECTION 11.
	  	 Continuing Guarantee; Assignments under the Credit Agreement
	  	 	6	  
	 SECTION 12.
	  	 Fees and Expenses; Indemnification
	  	 	6	  
	 SECTION 13.
	  	 Subordination
	  	 	6	  
	 SECTION 14.
	  	 Right of Contribution
	  	 	7	  
	 SECTION 15.
	  	 Execution in Counterparts
	  	 	7	  
	 SECTION 16.
	  	 Governing Law; Jurisdiction; Waiver of Jury Trial, Etc
	  	 	8	  
	 SECTION 17.
	  	 Severability
	  	 	8	  
	 SECTION 18.
	  	 Headings
	  	 	8	  
	 SECTION 19.
	  	 Guarantee Enforceable by Administrative Agent
	  	 	8	  
			
	 Exhibit A
	  	 Guarantee Supplement
	  			

  
 i 

 GUARANTEE 

GUARANTEE dated as of [            ], 20[    ] (as amended,
restated, amended and restated, supplemented or otherwise modified from time to time, this “Guarantee”) among the Persons listed on the signature pages hereof and the Additional Guarantors (as defined in Section 7(b))
(such Persons so listed and the Additional Guarantors being, collectively, the “Guarantors” and, individually, a “Guarantor”) in favor of SunTrust Bank, as administrative agent (in such capacity together with any
successor administrative agent, the “Administrative Agent”) for the benefit of the Lenders (as defined below). 

PRELIMINARY STATEMENTS 

Reference is hereby made to that certain Revolving Credit Agreement dated as of September 28, 2012, as amended by that certain Amendment
No. 1 to Revolving Credit Agreement, dated as of February 25, 2015 (as further amended, restated, amended and restated, supplemented or otherwise modified and in effect on the date hereof, the “Credit Agreement”), among
Harris Corporation, a Delaware corporation (the “Company”, and together with all Subsidiary Borrowers from time to time, the “Borrowers”), the lenders from time to time party thereto (the “Lenders”)
and the Administrative Agent. Terms used but not otherwise defined herein shall have the meanings set forth in the Credit Agreement. 

WHEREAS, it is a requirement under certain circumstances set forth in Section 6.13 of the Credit Agreement that each Guarantor shall have
executed and delivered this Guarantee and the Lenders would not have provided the Loans without such requirement. 
 WHEREAS, each Guarantor
will obtain benefits from the incurrence of Loans by the Borrowers and, accordingly, desires to execute this Guarantee in order to satisfy the requirements described in the preceding paragraph and to induce the Lenders to make Loans from time to
time. 
 NOW, THEREFORE, in consideration of the premises, the other benefits accruing to each Guarantor, the receipt and sufficiency of
which are hereby acknowledged, each Guarantor hereby makes the following representations and warranties to the Administrative Agent for the benefit of the Lenders and each Guarantor, jointly and severally with each other Guarantor, hereby covenants
and agrees as follows: 
 SECTION 1. Guarantee; Limitation of Liability 

(a) Each Guarantor hereby, jointly and severally, absolutely, unconditionally and irrevocably guarantees, as a primary obligor and not merely
as a surety, the full and punctual payment when due and performance, whether at scheduled maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all obligations of the Borrowers and any other Guarantor now or
hereafter existing under or in respect of the Loan Documents (including, without limitation, any extensions, increases, modifications, substitutions, amendments or renewals of any or all of the foregoing obligations), whether direct or indirect,
absolute or contingent, and whether for principal, interest, premiums, fees, indemnities, contract causes of action, costs, expenses or otherwise (such obligations being the “Guaranteed Obligations”), and agrees to pay any and all
expenses (including, without limitation, fees and expenses of counsel) incurred by the Administrative Agent or any other Lender in enforcing any rights under this Guarantee or any other Loan Document, to the extent reimbursable under
Section 10.04 of the Credit Agreement. Without limiting the generality of the foregoing, each Guarantor’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by the Borrowers or any
other Guarantor to any Lender under or in respect of the Loan Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving the Borrowers or any other
Guarantor. 

  
 1 

 (b) Each Guarantor, the Administrative Agent and each other Lender, hereby confirms that it is
the intention of all such Persons that this Guarantee and the obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of any Debtor Relief Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to such Guarantor. To effectuate the foregoing intention, by acceptance of the benefits of this Guarantee, the Administrative Agent, the other Lenders and
the Guarantors hereby irrevocably agree that the obligations of each Guarantor under this Guarantee at any time shall be limited to the maximum amount as will result in the obligations of such Guarantor under this Guarantee not constituting a
fraudulent transfer or conveyance or subject to avoidance under Debtor Relief Laws or any similar foreign, federal or state law, in each case applicable to such Guarantor. 

(c) Each Guarantor hereby unconditionally and irrevocably agrees that in the event any payment shall be required to be made to any Lender
under this Guarantee, such Guarantor will contribute, to the maximum extent permitted by law, such amounts to each other Guarantor so as to maximize the aggregate amount paid to the Lenders under or in respect of the Loan Documents. 

SECTION 2. Guarantee Absolute. Each Guarantor agrees its guarantee constitutes a guarantee of payment when due of the Guaranteed
Obligations and not of collection, which will be paid strictly in accordance with the terms of the Loan Documents to the fullest extent permitted by applicable law. The obligations of each Guarantor under or in respect of this Guarantee are
independent of the Guaranteed Obligations or any other obligations of any Borrower or any other Guarantor under or in respect of the Loan Documents, and a separate action or actions may be brought and prosecuted against any Guarantor to enforce this
Guarantee, irrespective of whether any action is brought against any Borrower or any Guarantor or whether any Borrower or any Guarantor is joined in any such action or actions. The liability of each Guarantor under this Guarantee shall be
irrevocable, absolute and unconditional and shall not be affected or impaired by any circumstance or occurrence whatsoever irrespective of, and each Guarantor hereby irrevocably waives any defenses (other than a defense of payment in full in cash of
the Guaranteed Obligations (excluding contingent obligations as to which no claim has been made) or the release of this Guarantee in accordance with any relevant release provisions in the Loan Documents) it may now have or hereafter acquire in any
way relating to, any or all of the following: 
 (a) any lack of validity or enforceability, at any time, of any Loan Document (including
this Guarantee) or any agreement or instrument relating thereto; 
 (b) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Guaranteed Obligations or any other obligations of any Borrower or any Guarantor under or in respect of the Loan Documents, or any other amendment or waiver of or any consent to departure from any Loan Document,
including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional credit to any Borrower, any Guarantor or any of their respective Subsidiaries or otherwise; 

(c) any change, restructuring or termination of the corporate structure or existence of any Borrower, any Guarantor or any of their respective
Subsidiaries; 
 (d) any failure of any Lender to disclose to the Company any information relating to the business, condition (financial or
otherwise), operations, performance, properties or prospects of any Borrower or any Guarantor now or hereafter known to such Lender; 
 (e)
the failure of any other Person to execute or deliver this Guarantee, any Guarantee Supplement (as hereinafter defined) or any other guarantee or agreement or the release or reduction of liability of any Guarantor or any other guarantor or surety
with respect to the Guaranteed Obligations; 

  
 2 

 (f) any rescission, waiver, amendment or modification of, or any release from any of the terms or
provisions of, any Loan Document or any other agreement, including with respect to any other Guarantor under this Guarantee; 
 (g) any
invalidity, rescission, irregularity or unenforceability of all or any part of the Guaranteed Obligations; or 
 (h) any other circumstance
(including, without limitation, any statute of limitations), any act or omission, or any existence of or reliance on any representation by any Lender that might otherwise constitute a defense available to, or a discharge of, any Borrower, any
Guarantor or any other guarantor or surety. 
 This Guarantee shall continue to be effective or be reinstated, as the case may be, if at any time any
payment or any part thereof, of any of the Guaranteed Obligations is rescinded or must otherwise be returned by any Lender or any other Person upon the insolvency, bankruptcy or reorganization (or any analogous proceeding in any jurisdiction) of the
Borrowers, any Guarantor or otherwise, all as though such payment had not been made. For the avoidance of doubt this paragraph shall survive the termination of this Guarantee. 

SECTION 3. Waivers and Acknowledgments 

(a) Each Guarantor hereby unconditionally and irrevocably waives promptness, diligence, notice of acceptance, presentment, demand for
performance, notice of nonperformance, default, acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed Obligations and this Guarantee and any requirement that any Lender exhaust any right or take any action
against any Borrower, any Guarantor or any other Person. 
 (b) Each Guarantor hereby unconditionally and irrevocably waives any right to
revoke this Guarantee and acknowledges that this Guarantee is continuing in nature (in accordance with the terms hereof) and applies to all Guaranteed Obligations, whether existing now or in the future; provided that such Guarantor shall be
automatically released from this Guarantee upon such Guarantor no longer being required to provide a Guarantee in accordance with Section 6.13 of the Revolving Credit Agreement. 

(c) Each Guarantor hereby unconditionally and irrevocably waives (i) any defense arising by reason of any claim or defense based upon an
election of remedies by any Lender that in any manner impairs, reduces, limits, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of such Guarantor, (ii) any defense
based on any right of set-off or counterclaim against or in respect of the Obligations of such Guarantor hereunder, (iii) any right to proceed against any Borrower, any Guarantor or any other party and (iv) any right to proceed against or
exhaust any security held from any Borrower or any other party. 
 (d) Each Guarantor hereby unconditionally and irrevocably waives any duty
on the part of any Lender to disclose to such Guarantor any matter, fact or thing relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any Borrower, any Guarantor or any of their
respective Subsidiaries now or hereafter known by such Lender. Each Guarantor acknowledges that the Lenders shall have no obligation to investigate the financial condition or affairs of any Borrower, any Guarantor or any of their respective
Subsidiaries. 

  
 3 

 (e) Each Guarantor hereby unconditionally and irrevocably waives any right (i) to require
the Administrative Agent or any of the Lenders to first proceed against, initiate any actions before a court or any other judge or authority, or enforce any other rights or security or claim payment from any Borrower or any other person, before
claiming any amounts due from such Guarantor hereunder; (ii) to which it may be entitled to have the assets of any Borrower or any other person first be used, applied or depleted as payment of the Borrowers’ obligations, prior to any
amount being claimed from or paid by such Guarantor hereunder; and (iii) to which it may be entitled to have claims against it, or assets to be used or applied as payment, divided between the Borrowers and such Guarantor (including other
Guarantors). 
 (f) Each Guarantor acknowledges that it will receive substantial direct and indirect benefits from the financing
arrangements contemplated by the Loan Documents and that the waivers set forth in Section 2 and this Section 3 are knowingly made in contemplation of such benefits and with full knowledge of its significance and consequences
and that if any of such waivers are determined to be contrary to any applicable law or public policy, such waivers shall be effective only to the maximum extent permitted by applicable law. 

(g) Each Guarantor confirms that it is aware of the content of the Credit Agreement and acknowledges and agrees that this Guarantee and any
and all of its obligations under the Loan Documents shall be subject in all respects to the provisions set forth in the Credit Agreement as such provisions relate to and are applicable to such Guarantor (in any capacity). 

SECTION 4. Subrogation. Each Guarantor hereby agrees that until the payment and satisfaction in full of all Guaranteed Obligations
(other than contingent obligations that are not yet due and payable), and the expiration or termination of any commitments or other obligations of the Lender to make financial accommodations available to the Borrowers under the Loan Documents, such
Guarantor shall not exercise any right or remedy arising by reason of any performance by such Guarantor of the guarantee in this Section 4, whether by subrogation or otherwise, against any Borrower or any other Guarantor. 

SECTION 5. Representations and Warranties. Each Guarantor hereby represents and warrants as follows: 

(a) Each Guarantor (i) is a corporation or limited liability company duly incorporated or organized, validly existing and (b) in
good standing under the laws of its jurisdiction of incorporation or organization. 
 (b) The execution, delivery and performance by each
Guarantor of this Guarantee (i) is within such Guarantor’s corporate or analogous powers, (ii) has been duly authorized by all necessary corporate or analogous action, and (iii) does not contravene (x) such Guarantor’s
Organization Documents, (y) any applicable Laws or (z) any material contractual restriction binding on such Guarantor. 
 (c) No
authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or any other Person is required for the due execution, delivery and performance by each Guarantor of this Guarantee. 

(d) This Guarantee is the legal, valid and binding obligation of each Guarantor enforceable against such Guarantor in accordance with its
respective terms except that such enforcement may be limited by applicable Debtor Relief Laws. 

  
 4 

 SECTION 6. Covenants. Each Guarantor covenants and agrees that unless and until all of the
Guaranteed Obligations and all other amounts payable under this Guarantee shall have been paid in full in cash and the expiration or termination of all Commitments, such Guarantor will perform and observe, and cause each of its respective Restricted
Subsidiaries to perform and observe, all of the terms, covenants and agreements set forth in the Loan Documents applicable to such Guarantor on its or their part to be performed or observed or that the Company has agreed to cause such Guarantor or
such Restricted Subsidiaries to perform or observe. 
 SECTION 7. Guarantee Supplements, Etc. It is understood and agreed that any
Guarantor that is required to execute a counterpart of this Guarantee after the date hereof pursuant to the Credit Agreement shall upon the execution and delivery by any Person of a guarantee supplement in substantially the form of Exhibit A
hereto (each, a “Guarantee Supplement”), (i) such Person shall be referred to as an “Additional Guarantor” and shall become and be a Guarantor hereunder, and each reference in this Guarantee to a
“Guarantor” shall also mean and be a reference to such Additional Guarantor, and (ii) each reference herein to “this Guarantee,” “hereunder,” “hereof” or words of like import
referring to this Guarantee, and each reference in any other Loan Document to “thereunder,” “thereof” or words of like import referring to this Guarantee, shall mean and be a reference to this Guarantee as
supplemented by such Guarantee Supplement. 
 SECTION 8. Notices, Etc. All notices and other communications provided for hereunder
shall be in writing (including telegraphic, telecopy or telex communication or facsimile transmission) and mailed, telegraphed, telecopied, telexed, faxed or delivered as follows: if to any Guarantor, addressed to it in care of the Company at its
address specified in Section 10.02 of the Credit Agreement; if to the Administrative Agent or any Lender, at its address specified in Section 10.02 of the Credit Agreement or at such other address as shall be designated by the recipient in
a written notice to each other party. All such notices and other communications shall be deemed to be given or made at such time as shall be set forth in Section 10.02 of the Credit Agreement. 

SECTION 9. No Waiver; Remedies. No failure on the part of any Lender to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law. 
 SECTION 10. Right of Set-off. Upon the occurrence and during the continuance of any Event of Default
under Section 8.01(a) of the Credit Agreement, the Administrative Agent and each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by the Administrative Agent or such Lender, to or for the credit or the account of any Guarantor against any and all of the obligations of such
Guarantor now or hereafter existing hereunder or under the other Loan Documents, irrespective of whether the Administrative Agent or such Lender shall have made any demand under this Guarantee or any other Loan Document and although such obligations
may be unmatured. Each Lender agrees promptly to notify the Company and the Administrative Agent after any such set-off and application made by such Lender; provided that the failure to give such notice shall not affect the validity of such
set-off and application. The rights of the Administrative Agent and each Lender under this Section 10 are in addition to other rights and remedies (including, without limitation, other rights of set-off) that the Administrative Agent and
such Lender may have. This Section 10 is subject to the terms and conditions set forth in Section 10.09 of the Credit Agreement. 

  
 5 

 SECTION 11. Continuing Guarantee; Assignments under the Credit Agreement. This Guarantee
is a continuing Guarantee and shall (a) remain in full force and effect until the termination of all of the Commitments and the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Guarantee (other than
contingent obligations that are not yet due and payable) and the Lenders have no further commitment to lend under the Credit Agreement, (b) be binding upon each Guarantor, its successors and assigns and (c) bind and inure to the benefit of
and be enforceable by the Lenders and their permitted successors, permitted transferees and permitted assigns. Without limiting the generality of clause (c) of the immediately preceding sentence, any Lender may assign or otherwise transfer all
or any portion of its rights and obligations under the Credit Agreement (including, without limitation, all or any portion of its Commitments, the Loans owing to it and the promissory note or promissory notes held by it) to any other Person in
accordance with Section 10.07 of the Credit Agreement, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such Lender herein or otherwise, in each case as and to the extent provided in
Section 10.07 of the Credit Agreement. No Guarantor shall have the right to assign its rights hereunder or any interest herein without the prior written consent of the Lenders, other than pursuant to a transaction permitted by the Credit
Agreement and consummated in accordance with the terms and conditions contained therein. 
 SECTION 12. Fees and Expenses;
Indemnification 
 (a) Each Guarantor, jointly and severally, agrees to reimburse the Administrative Agent for its fees and expenses
incurred hereunder to the extent provided in Section 10.04 of the Credit Agreement; provided that each reference therein to the “Borrowers” shall be deemed to be a reference to the “Guarantors.” 

(b) Each Guarantor agrees to indemnify the Indemnified Parties to the extent provided in Section 10.05 of the Credit Agreement;
provided that each reference therein to the “Borrowers” shall be deemed to be a reference to the “Guarantors”. 

(c) Any such amounts payable as provided hereunder shall be additional Guaranteed Obligations guaranteed hereby. The provisions of this
Section 12 shall remain operative and in full force and effect regardless of the termination of this Guarantee, any other Loan Document, the consummation of the transactions contemplated hereby, the repayment of any of the other
Guaranteed Obligations, the invalidity or unenforceability of any term or provision of this Guarantee or any other Loan Document, any resignation of the Administrative Agent or any investigation made by or on behalf of the Administrative Agent or
any other Lender. All amounts due under this Section 12 shall be payable within 30 days after written demand therefor. 

SECTION 13. Subordination. Each Guarantor hereby subordinates any and all debts, liabilities and other obligations now or hereafter
owing to such Guarantor by the Borrowers (the “Subordinated Obligations”) to the Guaranteed Obligations to the extent and in the manner hereinafter set forth in this Section 13: 

(a) Prohibited Payments, Etc. Except as otherwise set forth in this Section 13(a), a Guarantor may receive regularly
scheduled payments from the Borrowers or any other Guarantor on account of the Subordinated Obligations. After the occurrence and during the continuance of any Event of Default under the Credit Agreement (including the commencement and continuation
of any proceeding under any Debtor Relief Law relating to the Borrowers or any Guarantor), unless the Administrative Agent otherwise agrees, no Guarantor shall demand, accept or take any action to collect any payment on account of the Subordinated
Obligations. 

  
 6 

 (b) Prior Payment of Guaranteed Obligations. In any proceeding under any Debtor Relief Law
relating to any Borrower or any Guarantor, each Guarantor agrees that the Lenders shall be entitled to receive payment in full in cash of all Guaranteed Obligations (including all interest and expenses accruing after the commencement of a proceeding
under any Debtor Relief Law, whether or not constituting an allowed claim in such proceeding (“Post Petition Interest”)) before such Guarantor receives payment of any Subordinated Obligations. 

(c) Turn-Over. After the occurrence and during the continuance of any Event of Default (including the commencement and continuation of
any proceeding under any Debtor Relief Law relating to any Borrower or any Guarantor), each Guarantor shall, if the Administrative Agent so requests, collect, enforce and receive payments on account of the Subordinated Obligations as trustee for the
Lenders and deliver such payments to the Administrative Agent on account of the Guaranteed Obligations (including all Post Petition Interest), together with any necessary endorsements or other instruments of transfer, but without reducing or
affecting in any manner the liability of such Guarantor under the other provisions of this Guarantee. 
 (d) Administrative Agent
Authorization. After the occurrence and during the continuance of any Event of Default (including the commencement and continuation of any proceeding under any Debtor Relief Law relating to any Borrower or any Guarantor) the Administrative Agent
is authorized and empowered (but without any obligation to do so), in its discretion, (i) in the name of each Guarantor, to collect and enforce, and to submit claims in respect of, Subordinated Obligations and to apply any amounts received
thereon to the Guaranteed Obligations (including any and all Post Petition Interest), and (ii) to require each Guarantor (A) to collect and enforce, and to submit claims in respect of, Subordinated Obligations and (B) to pay any
amounts received on such obligations to the Administrative Agent for application to the Guaranteed Obligations (including any and all Post Petition Interest). 

SECTION 14. Right of Contribution 

(a) Each Guarantor agrees that to the extent that any Guarantor shall have paid more than its proportionate share of any payment made
hereunder in respect of any Guaranteed Obligation of any other Guarantor, such Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor which has not paid its proportionate share of such payment. 

(b) Each Guarantor’s right of contribution under this Section 14 shall be subject to the terms and conditions of
Section 4. The provisions of this Section 14 shall in no respect limit the obligations and liabilities of any Borrower or any Guarantor to the Administrative Agent and the Lenders, and each Guarantor shall remain liable to
the Administrative Agent and the Lenders for the full amount guaranteed by such Guarantor hereunder. Each Guarantor agrees to contribute, to the maximum extent permitted by law, such amounts to each other Guarantor so as to maximize the aggregate
amount paid to the Lenders under or in respect of the Loan Documents. 
 SECTION 15. Execution in Counterparts. This Guarantee and
each amendment, waiver and consent with respect hereto may be executed in any number of counterparts and by different parties thereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Guarantee and each amendment, waiver and consent with respect hereto by telecopier or other electronic transmission shall be
effective as delivery of an original executed counterpart thereof. 

  
 7 

 SECTION 16. Governing Law; Jurisdiction; Waiver of Jury Trial, Etc. 

(a) THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH PARTY SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 

(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTEE OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW
YORK SITTING IN THE BOROUGH OF MANHATTAN, CITY OF NEW YORK, OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS GUARANTEE, EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS
OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. 

(c) EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02 OF THE CREDIT
AGREEMENT. NOTHING IN THIS GUARANTEE WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. 

SECTION 17. Severability. If any provision of this Guarantee is held to be illegal, invalid or unenforceable, (a) the legality,
validity and enforceability of the remaining provisions of this Guarantee shall not be affected or impaired thereby and (b) the parties shall endeavour in good faith negotiations to replace the illegal, invalid or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction. 
 SECTION 18. Headings. Article and Section headings and the Table of Contents used herein are
for convenience of reference only, are not part of this Guarantee and are not to affect the construction of, or to be taken into consideration in interpreting, this Guarantee. 

SECTION 19. Guarantee Enforceable by Administrative Agent. Notwithstanding anything to the contrary contained elsewhere in this
Guarantee, the Lenders agree (by their acceptance of the benefits of this Guarantee) that this Guarantee may be enforced only by the action of the Administrative Agent, acting upon the instructions of the Required Lenders and that no other Lender
shall have any right individually to seek to enforce or to enforce this Guarantee, it being understood and agreed that such rights and remedies may be exercised by the Administrative Agent. The Lenders further agree that this Guarantee may not be
enforced against any director, officer, employee, partner, member or stockholder of any Guarantor (except to the extent such partner, member or stockholder is also a Guarantor hereunder). 

[Remainder of page left intentionally blank] 

  
 8 

 IN WITNESS WHEREOF, each Guarantor has caused this Guarantee to be duly executed and delivered by
its officer thereunto duly authorized as of the date first above written. 
  

			
	[GUARANTORS]
		
	By:		 
			 Name:
 Title:

  

			
	Acknowledged and Agreed,
	
	 SUNTRUST BANK,
 as Administrative
Agent

		
	By:		 
			 Name:
 Title:

 EXHIBIT A 

Guarantee Supplement 
 FORM OF
GUARANTEE SUPPLEMENT 
 ___________ __, _____ 

SunTrust Bank 

[            ] 

Email: [            ] 

Fax: [            ] 

Attention: [            ] 

Ladies and Gentlemen: 
 Reference is hereby made
to that certain Revolving Credit Agreement dated as of September 28, 2012, as amended by that certain Amendment No. 1 to Revolving Credit Agreement, dated as of February 25, 2015 (as further amended, restated, amended and restated,
supplemented or otherwise modified and in effect on the date hereof, the “Credit Agreement”), among Harris Corporation, a Delaware corporation (the “Company”, and together with all Subsidiary Borrowers from time to
time, the “Borrowers”), the lenders from time to time party thereto (the “Lenders”) and the Administrative Agent and (ii) that certain Guarantee dated as of [ ], 20[ ] (as amended, restated, amended and
restated, supplemented or otherwise modified from time to time, together with this Guarantee Supplement (this “Guarantee Supplement”), the “Guarantee”), among the Guarantors party thereto and the Administrative
Agent. The capitalized terms defined in the Guarantee or in the Credit Agreement and not otherwise defined herein are used herein as therein defined. 

Section 1. Guarantee; Limitation of Liability. 

(a) The undersigned hereby, jointly and severally with the other Guarantors absolutely, unconditionally and irrevocably guarantees, as a
primary obligor and not merely as a surety, the full and punctual payment when due and performance, whether at scheduled maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all obligations of any Borrower and
any other Guarantor now or hereafter existing, including, without limitation, all obligations under or in respect of the Loan Documents (including, without limitation, any extensions, increases, modifications, substitutions, amendments or renewals
of any or all of the foregoing obligations), whether direct or indirect, absolute or contingent, and whether for principal, interest, premium, fees, indemnities, contract causes of action, costs, expenses or otherwise (such obligations being the
“Guaranteed Obligations”), and agrees to pay any and all expenses (including, without limitation, fees and expenses of counsel) incurred by the Administrative Agent or any other Lender in enforcing any rights under this Guarantee
Supplement, the Guarantee or any other Loan Document, to the extent reimbursable under Section 10.04 of the Credit Agreement. Without limiting the generality of the foregoing, the undersigned’s liability shall extend to all amounts that
constitute part of the Guaranteed Obligations and would be owed by any Borrower and any other Guarantor to the Lenders under or in respect of the Loan Documents but for the fact that they are unenforceable or not allowable due to the existence of a
bankruptcy, reorganization or similar proceeding involving the Borrowers or such other Guarantor. 

  
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 (b) The Administrative Agent and any other Lender, hereby confirms that it is the intention of
all such Persons that this Guarantee Supplement, the Guarantee and the obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of any Debtor Relief Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to such Guarantor. To effectuate the foregoing intention, by acceptance of the benefits of this Guarantee Supplement and the Guarantee, the Lenders
and the Guarantors hereby irrevocably agree that the obligations of each Guarantor under this Guarantee Supplement and the Guarantee at any time shall be limited to the maximum amount as will result in the obligations of such Guarantor under this
Guarantee Supplement and the Guarantee not constituting a fraudulent transfer or conveyance or subject to avoidance under Debtor Relief Laws or any similar foreign, federal or state law, in each case applicable to such Guarantor. 

(c) The undersigned hereby unconditionally and irrevocably agrees that in the event any payment shall be required to be made to any Lenders
under this Guarantee Supplement, the Guarantee or any other guarantee, the undersigned will contribute, to the maximum extent permitted by applicable law, such amounts to each other Guarantor and any other Guarantor, as applicable, so as to maximize
the aggregate amount paid to the Lenders under or in respect of the Loan Documents. 
 Section 2. Obligations Under the
Guarantee. The undersigned hereby agrees, as of the date first above written, to be bound as a Guarantor by all of the terms and conditions of the Guarantee to the same extent as each of the other Guarantors thereunder. The undersigned further
agrees, as of the date first above written, that each reference in the Guarantee to an “Additional Guarantor” or a “Guarantor” shall also mean and be a reference to the undersigned. 

Section 3. Representations and Warranties. The undersigned hereby makes each representation and warranty set forth in
Section 5 of the Guarantee to the same extent as each other Guarantor. 
 Section 4. Delivery by Telecopier. Delivery of an
executed counterpart of a signature page to this Guarantee Supplement by telecopier or other electronic transmission shall be effective as delivery of an original executed counterpart of this Guarantee Supplement. 

Section 5. Governing Law; Jurisdiction; Waiver of Jury Trial, Etc. 

(a) THIS GUARANTEE SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH PARTY SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 

(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTEE SUPPLEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE
STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN, CITY OF NEW YORK, OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS GUARANTEE SUPPLEMENT, EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH
LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR
BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. 

  
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 (c) EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES IN SECTION 10.02 OF THE CREDIT AGREEMENT. NOTHING IN THIS GUARANTEE SUPPLEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. 

Very truly yours, 
  

			
	[NAME OF ADDITIONAL GUARANTOR]
		
	By:		 
			Name:
			Title:

  
 Acknowledged and Agreed, 

 
 SunTrust Bank, 

as Administrative Agent 
  

 

			
	
		
	By:		 
			Name:
			Title:

  
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