Document:

EX-4.2

 Exhibit 4.2 

AFLAC INCORPORATED, 
 AS
ISSUER 
 AND 

THE BANK OF NEW YORK MELLON 

TRUST COMPANY, N.A., 
 AS
TRUSTEE 
 THIRTEENTH SUPPLEMENTAL INDENTURE 

Dated as of September 19, 2016 
  

 
 $400,000,000

 4.000% Senior Notes due 2046 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	
	ARTICLE I	  
	
	4.000% SENIOR NOTES DUE 2046	  
			
	 Section 1.01
	 	 Establishment
	  	 	1	  
	 Section 1.02
	 	 Definitions
	  	 	2	  
	 Section 1.03
	 	 Payment of Principal and Interest
	  	 	2	  
	 Section 1.04
	 	 Denominations
	  	 	3	  
	 Section 1.05
	 	 Global Securities
	  	 	3	  
	 Section 1.06
	 	 Transfer
	  	 	3	  
	 Section 1.07
	 	 Defeasance
	  	 	3	  
	 Section 1.08
	 	 Redemption at the Option of the Company
	  	 	3	  
	 Section 1.09
	 	 Notice to Trustee
	  	 	5	  
	 Section 1.10
	 	 Selection of Senior Notes to be Redeemed; Notice of Redemption
	  	 	5	  
	
	ARTICLE II	  
	
	MISCELLANEOUS PROVISIONS	  
			
	 Section 2.01
	 	 Recitals by the Company
	  	 	5	  
	 Section 2.02
	 	 Ratification and Incorporation of Original Indenture
	  	 	5	  
	 Section 2.03
	 	 Executed in Counterparts
	  	 	5	  
	 Section 2.04
	 	 New York Law to Govern
	  	 	5	  
			
	 EXHIBIT A
	 	 Form of Global Note
	  	 	A-1	  
	 EXHIBIT B
	 	 Form of Certificate of Authentication
	  	 	B-1	  

  
 i 

 THIS THIRTEENTH SUPPLEMENTAL INDENTURE (this “Thirteenth Supplemental Indenture”) is
made as of the 19th day of September, 2016, by and between AFLAC INCORPORATED, a Georgia corporation, as issuer (the “Company”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a
national banking association, as trustee (the “Trustee”): 
 WHEREAS, the Company has heretofore entered into a Senior Indenture,
dated as of May 21, 2009 (the “Original Indenture”), with the Trustee; 
 WHEREAS, the Original Indenture is incorporated
herein by reference, and the Original Indenture, as supplemented by this Thirteenth Supplemental Indenture, is herein called the “Indenture”; 

WHEREAS, under the Original Indenture, a new series of senior notes may at any time be established by the Board of Directors of the Company in
accordance with the provisions of the Original Indenture and the terms of such series may be described by a supplemental indenture executed by the Company and the Trustee; 

WHEREAS, the Company proposes to create under the Indenture a new series of senior notes; 

WHEREAS, additional senior notes of other series hereafter established, except as may be limited in the Original Indenture as at the time
supplemented and modified, may be issued from time to time pursuant to the Indenture as at the time supplemented and modified, and all senior notes issued by the Company of any one series need not be issued at the same time and, unless otherwise so
provided, may be reopened for issuances of additional senior notes of such series; and 
 WHEREAS, all things necessary to authorize the
execution and delivery of this Thirteenth Supplemental Indenture and make it a valid and binding agreement of the Company, in accordance with its terms, have been done. 

NOW THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
 ARTICLE I 

4.000% SENIOR NOTES DUE 2046 

Section 1.01 Establishment. There is hereby established a new series of senior notes to be issued under the Indenture, to be
designated as the Company’s 4.000% Senior Notes due 2046 (the “Senior Notes”). 
 There are to be authenticated and delivered
Senior Notes, initially limited in aggregate principal amount to $400,000,000 and no further Senior Notes shall be authenticated and delivered except as provided by Section 2.8, 2.9, 2.11, 8.5 or 12.3 of the Original Indenture and the terms of
this Thirteenth Supplemental Indenture; provided, however, that the Company may re-open this series of Senior Notes and the aggregate principal amount of the Senior Notes may be increased in the future, without the consent of the holders of the
Senior Notes, with the same ranking, interest rate, maturity date and other terms and with the same CUSIP and ISIN numbers as the Senior Notes other than with respect to: (i) the date of issuance, (ii) the issue price and (iii) the
date from which interest shall accrue and the amount of interest payable on the first Interest Payment Date following the issuance of any such additional Senior Notes (which terms shall be set forth in a Board Resolution accompanying the Order
pursuant to which any such additional Senior Notes are authenticated). Any such additional Senior Notes and the Senior Notes established pursuant hereto shall be considered collectively as a single class for all purposes of the Indenture. The Senior
Notes shall be issued in fully registered form. 

 The Senior Notes shall be issued in the form of one or more Global Securities (as defined below)
in substantially the form set out in Exhibit A hereto. 
 The form of the Trustee’s Certificate of Authentication for the Senior Notes
shall be substantially in the form set forth in Exhibit B hereto. 
 Each Senior Note shall be dated the date of authentication thereof
and shall bear interest from the date of original issuance thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for. 

Section 1.02 Definitions. The following defined terms used herein shall, unless the context otherwise requires, have the meanings
specified below. Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Original Indenture. 

“Global Security” means, with respect to any series of securities, a security authenticated and delivered under the Original
Indenture executed by the Company and held by the Trustee as custodian for the Depositary, all in accordance with the Original Indenture, which shall be registered in the name of the Depositary or its nominee. 

“Interest Payment Date” means April 15 and October 15 of each year, commencing on April 15, 2017. 

“Regular Record Date” means, with respect to each Interest Payment Date, the close of business on April 1 or October 1
immediately preceding such Interest Payment Date. 
 “Stated Maturity” means October 15, 2046. 

Section 1.03 Payment of Principal and Interest. The principal of the Senior Notes shall be due at Stated Maturity. The unpaid and
outstanding principal amount of the Senior Notes, and any overdue installment of interest thereon to the extent permitted by law, shall bear interest at the rate of 4.000% per year until paid or made available for payment, such interest to
accrue from the most recent Interest Payment Date on which interest has been paid or duly provided for or, if no interest has been paid, from September 19, 2016. Interest shall be paid semi-annually in arrears on each Interest Payment Date,
commencing on April 15, 2017, to the Person in whose name the Senior Notes are registered on the Regular Record Date for such Interest Payment Date, provided that interest payable at the Stated Maturity or on a Redemption Date (as defined
below) as provided herein, will be paid to the Person to whom principal is payable. Any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the holders on such Regular Record Date and may be paid
as provided in Section 2.7 of the Original Indenture. 
 Payments of interest on the Senior Notes will include interest accrued to but
excluding the respective Interest Payment Dates. Interest payments for the Senior Notes shall be computed and paid on the basis of a 360-day year consisting of twelve 30-day months. In the event that any date on which interest is payable on the
Senior Notes is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), except that, if such next
succeeding Business Day is in the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on the date the payment was originally payable. 

  
 2 

 Payment of the principal, premium, if any, and interest due at the Stated Maturity of, or on a
Redemption Date for, the Senior Notes shall be made upon surrender of the Senior Notes at the Corporate Trust Office of the Trustee. The principal of and interest on the Senior Notes shall be paid in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts. Payments of interest (including interest on any Interest Payment Date) will be made, subject to such surrender where applicable, at the option of the Company,
(i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security register or (ii) by wire transfer at such place and to such account at a banking institution in the United States as may be
designated in writing to the Trustee at least 15 days prior to the date for payment by the Person entitled thereto. 
 Section 1.04
Denominations. The Senior Notes will be issued only in denominations of $2,000 and integral multiples of $1,000 in excess thereof. 

Section 1.05 Global Securities. The Senior Notes will initially be issued in the form of one or more Global Securities registered
in the name of the Depositary (which initially shall be The Depository Trust Company (“DTC”)) or its nominee. Except under the limited circumstances described below, Senior Notes represented by Global Securities will not be exchangeable
for, and will not otherwise be issuable as, Senior Notes in definitive form. The Global Securities described above may not be transferred except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or to a successor Depositary or its nominee. 
 Owners of beneficial interests in such Global Securities
will not be considered the holders thereof for any purpose under the Indenture, and no Global Security representing a Senior Note shall be exchangeable, except for another Global Security of like denomination and tenor to be registered in the name
of the Depositary or its nominee or to a successor Depositary or its nominee. The rights of holders of such Global Securities shall be exercised only through the Depositary. 

A Global Security shall be exchangeable for Senior Notes registered in the names of Persons other than the Depositary or its nominee only as
provided by Section 2.8(5) of the Original Indenture. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Senior Notes registered in such names as the Depositary shall direct. 

Section 1.06 Transfer. No service charge will be made for any registration of transfer or exchange of Senior Notes, but payment
will be required of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 

Section 1.07 Defeasance. The provisions of Sections 10.4 and 10.5 of the Original Indenture will apply to the Senior Notes. 

Section 1.08 Redemption at the Option of the Company. The Senior Notes will be redeemable, at the sole option of the Company, in
whole at any time or in part from time to time (a “Redemption Date”), at a redemption price (the “Redemption Price”) as described below. The Redemption Price at any time prior to April 15, 2046 (the “Par Call
Date”) will be equal to the greater of (i) 100% of the aggregate principal amount of the Senior Notes to be redeemed and (ii) an amount equal to the sum of the present values of the remaining scheduled payments for principal of and
interest on the Senior Notes to be redeemed that would be due if the Senior Notes matured on the Par Call Date, not including any portion of the payments of interest accrued as of such Redemption Date, discounted to such Redemption Date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus 25 basis points, plus, in the case of each of (i) and (ii), accrued and unpaid interest on the principal amount of the Senior Notes to be
redeemed to, but excluding, such Redemption Date. 

  
 3 

 On or after the Par Call Date, the Redemption Price will be equal to 100% of the principal amount
of the Senior Notes to be redeemed, plus accrued and unpaid interest thereon to the Redemption Date. 
 “Treasury Rate” means
(1) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published
weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining life, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined
and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month), or (2) if such release (or any successor release) is not published during the week preceding the calculation
date or does not contain such yields, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such Redemption Date. The Treasury Rate shall be calculated on the third Business Day preceding the Redemption Date. 

“Comparable Treasury Issue” means the United States Treasury security selected by the Independent Investment Banker as having a
maturity comparable to the remaining term of the Senior Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Senior Notes (assuming, for this purpose, that the Senior Notes matured on the Par Call Date). 

“Independent Investment Banker” means one of Goldman, Sachs & Co., Mizuho Securities USA Inc., Morgan Stanley &
Co. LLC and Wells Fargo Securities, LLC and their successors, appointed by the Company or, if such firm is unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by
the Company. 
 “Comparable Treasury Price” means with respect to any Redemption Date for the Senior Notes (1) the average of
five Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer than five such Reference Treasury Dealer Quotations,
the average of all such quotations. 
 “Reference Treasury Dealer” means each of (i) Goldman, Sachs & Co., Mizuho
Securities USA Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC and their respective successors; and (ii) one other primary U.S. government securities dealer (a “Primary Treasury Dealer”), as specified by the
Company; provided that if any of the foregoing or their respective successors or any Primary Treasury Dealer as specified by the Company shall cease to be a Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury
Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to the Reference Treasury Dealer and any Redemption Date,
the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed, in each case, as a percentage of its principal amount) quoted in writing to the Independent Investment Banker
by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 

Notwithstanding Section 12.2 of the Original Indenture, the notice of redemption with respect to the foregoing redemption need not set
forth the Redemption Price but only the manner of calculation thereof. 

  
 4 

 Section 1.09 Notice to Trustee. The Company shall notify the Trustee of the
Redemption Price with respect to the foregoing redemption promptly after the calculation thereof. The Trustee shall not be responsible for calculating said Redemption Price. 

Section 1.10 Selection of Senior Notes to be Redeemed; Notice of Redemption. If less than all of the Senior Notes are to be
redeemed, the principal amount of such Senior Notes to be redeemed shall be selected in accordance with the procedures of DTC. Senior Notes, and portions of Senior Notes, may be selected in amounts of $2,000 and whole multiples of $1,000 in excess
thereof. 
 ARTICLE II  

MISCELLANEOUS PROVISIONS 

Section 2.01 Recitals by the Company. The recitals in this Thirteenth Supplemental Indenture are made by the Company only and not
by the Trustee, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Thirteenth Supplemental Indenture or of the Senior Notes. The Trustee shall not be
accountable for the use or application by the Company of the Senior Notes or the proceeds thereof. All of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be
applicable in respect of the Senior Notes and of this Thirteenth Supplemental Indenture as fully and with like effect as if set forth herein in full. 

Section 2.02 Ratification and Incorporation of Original Indenture. As supplemented hereby, the Original Indenture is in all
respects ratified and confirmed, and the Original Indenture and this Thirteenth Supplemental Indenture shall be read, taken and construed as one and the same instrument. 

Section 2.03 Executed in Counterparts. This Thirteenth Supplemental Indenture may be simultaneously executed in several
counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument. 

Section 2.04 New York Law to Govern. This Thirteenth Supplemental Indenture and each Senior Note shall be deemed to be a contract
under the laws of the state of New York, and for all purposes shall be construed in accordance with the laws of such state, except as may be required by mandatory provisions of law. 

  
 5 

 IN WITNESS WHEREOF, each party hereto has caused this instrument to be signed in its name and
behalf by its duly authorized officers, all as of the day and year first above written. 
  

					
	AFLAC INCORPORATED,
	as Issuer
		
	By:	 	 /s/ Frederick J. Crawford

		 	Name:	 	Frederick J. Crawford
		 	Title:	 	Executive Vice President and
		 		 	Chief Financial Officer
	
	 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee

		
	By:	 	 /s/ Valere Boyd

	Name:	 	Valere Boyd
	Title:	 	Vice President

 [Signature Page to Thirteenth Supplemental Indenture] 

 EXHIBIT A 

4.000% Senior Note due 2046 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE THIRTEENTH SUPPLEMENTAL INDENTURE TO THE ORIGINAL INDENTURE HEREINAFTER REFERRED TO.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, TO AFLAC INCORPORATED OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE
BY THE DEPOSITARY TO THE NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

  
 A-1 

 No. 1 

CUSIP No. 001055 AR3 
 ISIN No.
US001055AR35 
 AFLAC INCORPORATED 

4.000% Senior Notes due 2046 
  

			
	Principal Amount:	  	$400,000,000
		
	Regular Record Date:	  	with respect to each Interest Payment Date, the close of business on April 1 or October 1 immediately preceding such Interest Payment Date
		
	Original Issue Date:	  	September 19, 2016
		
	Stated Maturity:	  	October 15, 2046
		
	Interest Payment Dates:	  	April 15 and October 15, commencing on April 15, 2017
		
	Interest Rate:	  	4.000% per year
		
	Authorized Denomination:	  	$2,000 and integral multiples of $1,000 in excess thereof

 Aflac Incorporated, a Georgia corporation (the “Company,” which term includes any successor
corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of FOUR HUNDRED MILLION DOLLARS ($400,000,000) on the Stated Maturity
shown above, and to pay interest thereon, and on any overdue installment of interest thereon to the extent permitted by law, from the most recent Interest Payment Date to which interest has been paid or duly provided for or, if no interest has been
paid, from the Original Issue Date shown above, semi-annually in arrears on each Interest Payment Date as specified above, commencing on April 15, 2017, and on the Stated Maturity at the rate per year shown above until the principal hereof or
such overdue installment is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an Interest Payment Date that is the Stated Maturity) will, as provided in
the Indenture, be paid to the Person in whose name this Note (as defined on the reverse hereof) is registered at the close of business on the Regular Record Date as specified above next preceding such Interest Payment Date, provided that any
interest payable at Stated Maturity or a Redemption Date (as defined on the reverse hereof) will be paid to the Person to whom principal is payable. Except as otherwise provided in the Indenture, any such interest that is not so punctually paid or
duly provided for will forthwith cease to be payable to the holders on such Regular Record Date and may be paid as provided in Section 2.7 of the Original Indenture. 

Payments of interest on this Note (as defined on the reverse hereof) will include interest accrued to but excluding the respective Interest
Payment Dates. Interest payments for this Note shall be computed and paid on the basis of a 360-day year consisting of twelve 30-day months. In the event that any date on which interest is payable on this Note is not a Business Day, then payment of
the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), except that, if such next succeeding Business Day is in the next succeeding
calendar year, payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on the date the payment was originally payable. 

Payment of the principal of and interest due at the Stated Maturity of, or on a Redemption Date (as defined on the reverse hereof) for, this
Note shall be made upon surrender of this Note at the Corporate Trust Office of the Trustee. The principal of and interest on this Note shall be paid in such coin 

  
 A-2 

 
or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. Payment of interest (including interest on an Interest Payment Date)
will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security register or (ii) by wire transfer at
such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least 15 days prior to the date for payment by the Person entitled thereto. 

The Senior Notes (as defined on the reverse hereof) will be unsecured obligations of the Company and will rank equally in right of payment
with all the other unsecured, unsubordinated indebtedness of the Company from time to time outstanding. The Senior Notes will rank senior to any subordinated indebtedness of the Company. 

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. 
 Unless the certificate of authentication hereon has been executed by the
Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 A-3 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

			
	 AFLAC INCORPORATED,
 as
Issuer

		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	Attest:
	
	  

	Name:	 	
	Title:	 	
		 	

 CERTIFICATE OF AUTHENTICATION 

This is one of the 4.000% Senior Notes due 2046 referred to in the within-mentioned Indenture. 

 

							
		 		 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
		 		 	as Trustee
				
	Dated: September 19, 2016	 		 	By:	 	  

		 		 	Authorized Signatory

  
 A-4 

 (Reverse Side of Note) 

This note (the “Note”) represents one of a duly authorized issue of senior notes of the Company issued and issuable in one or more
series under a Senior Indenture dated as of May 21, 2009 (the “Original Indenture”), as supplemented by the Thirteenth Supplemental Indenture dated as of September 19, 2016 (the “Thirteenth Supplemental Indenture” and,
together with the Original Indenture, the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which
Indenture and all indentures incidental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the holders of the Senior Notes (as defined
below) issued thereunder and of the terms upon which said Senior Notes are, and are to be, authenticated and delivered. The Securities represented by this Note are one of the series designated on the face hereof as 4.000% Senior Notes due 2046 (the
“Senior Notes”), initially limited in aggregate principal amount to $400,000,000; provided, however, that the aggregate principal amount of the Senior Notes may be increased in the future, without the consent of the holders of the Senior
Notes, as provided in the Thirteenth Supplemental Indenture. Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture. 

This Note is exchangeable in whole or from time to time in part for Senior Notes of this series in definitive registered form only as provided
in the Indenture. 
 If an Event of Default with respect to the Senior Notes shall occur and be continuing, the principal of the Senior
Notes may be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture. 
 The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the holders of the Senior Notes under the Indenture at any time by the Company
and the Trustee with the consent of the holders of not less than a majority in aggregate principal amount of the Senior Notes at the time Outstanding. The Indenture also contains provisions permitting the holders of specified percentages in
principal amount of the Senior Notes at the time Outstanding, on behalf of the holders of all Senior Notes, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders of this Note and of any Senior Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note. 
 The Indenture contains provisions for
defeasance at any time of (i) the entire indebtedness of the Company pursuant to this Note and (ii) restrictive covenants and the related Events of Default, upon compliance by the Company with certain conditions set forth therein, which
provisions apply to this Note. 
 The Senior Notes will be redeemable, at the sole option of the Company, in whole at any time or in part
from time to time (a “Redemption Date”), at a redemption price (the “Redemption Price”) as described below. The Redemption Price at any time prior to April 15, 2046 (the “Par Call Date”) will be equal to the
greater of (i) 100% of the aggregate principal amount of the Senior Notes to be redeemed and (ii) an amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the Senior Notes to be
redeemed that would be due if the Senior Notes matured on the Par Call Date, not including any portion of the payments of interest accrued as of such Redemption Date, discounted to such Redemption Date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate, plus 25 basis points, plus, in the case of each of (i) and (ii), accrued and unpaid interest on the principal amount of the Senior Notes to be redeemed to, but excluding, such Redemption
Date. 

  
 A-5 

 On or after the Par Call Date, the Redemption Price will be equal to 100% of the principal amount
of the Senior Notes to be redeemed, plus accrued and unpaid interest thereon to the Redemption Date. 
 “Treasury Rate” means
(i) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published
weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the
maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining life, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined
and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month), or (ii) if such release (or any successor release) is not published during the week preceding the calculation
date or does not contain such yields, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such Redemption Date. The Treasury Rate shall be calculated on the third Business Day preceding the Redemption Date. 

“Comparable Treasury Issue” means the United States Treasury security selected by the Independent Investment Banker as having a
maturity comparable to the remaining term of the Senior Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Senior Notes (assuming, for this purpose, that the Senior Notes matured on the Par Call Date). 

“Independent Investment Banker” means one of Goldman, Sachs & Co., Mizuho Securities USA Inc., Morgan Stanley &
Co. LLC and Wells Fargo Securities, LLC and their successors, appointed by the Company or, if such firm is unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by
the Company. 
 “Comparable Treasury Price” means with respect to any Redemption Date for the Senior Notes (1) the average of
five Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Company obtains fewer than five such Reference Treasury Dealer Quotations,
the average of all such quotations. 
 “Reference Treasury Dealer” means each of (i) Goldman, Sachs & Co., Mizuho
Securities USA Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC and their respective successors; and (ii) one other primary U.S. government securities dealer (a “Primary Treasury Dealer”), as specified by the
Company; provided that if any of the foregoing or their respective successors or any Primary Treasury Dealer as specified by the Company shall cease to be a Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury
Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to the Reference Treasury Dealer and any Redemption Date,
the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed, in each case, as a percentage of its principal amount) quoted in writing to the Independent Investment Banker
by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 Notice of
any redemption will be mailed at least 30 days but no more than 60 days before the Redemption Date to each holder of the Senior Notes to be redeemed. Notwithstanding Section 12.2 of the Original Indenture, the notice of redemption with respect
to the foregoing redemption need not set forth the Redemption Price but only the manner of calculation thereof. 

  
 A-6 

 The Company shall notify the Trustee of the Redemption Price with respect to the foregoing
redemption promptly after the calculation thereof. The Trustee shall not be responsible for calculating said Redemption Price. Unless the Company defaults in payment of the Redemption Price, on and after the Redemption Date, interest will cease to
accrue on the Senior Notes or portions thereof called for redemption. 
 If less than all of the Senior Notes are to be redeemed, the
principal amount of such Senior Notes to be redeemed shall be selected in accordance with the procedures of DTC. Senior Notes, and portions of Senior Notes, may be selected in amounts of $2,000 and whole multiples of $1,000 in excess thereof. 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on this Note at the time, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security
register, upon surrender of this Note for registration of transfer at the office or agency of the Company for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company or the Security
registrar and duly executed by, the holder hereof or his attorney duly authorized in writing, and thereupon one or more new Senior Notes, of authorized denominations and of like tenor and for the same aggregate principal amount, will be issued to
the designated transferee or transferees. No service charge shall be made for any such exchange or registration of transfer, but the Company will require payment of a sum sufficient to cover any tax or other governmental charge payable in connection
therewith. 
 Prior to due presentment of this Note for registration of transfer, the Company, the Trustee, any Person authorized by the
Company to pay the principal of or any premium or interest on any Senior Note on behalf of the Company (a “Paying Agent”) and the Security registrar may deem and treat the Person in whose name this Note is registered as the absolute owner
hereof for all purposes, whether or not this Note be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the Security registrar, and neither the Company nor the Trustee nor any Paying Agent nor the
Security registrar shall be affected by notice to the contrary. 
 The Senior Notes are issuable only in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Senior Notes are exchangeable for a like aggregate principal amount of Senior Notes of a
different authorized denomination, as requested by the holder surrendering the same upon surrender of the Senior Note or Senior Notes to be exchanged at the office or agency of the Company. 

No recourse shall be had for payment of the principal of or interest on this Note, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture, against any incorporator, as such or against any past, present or future shareholder, officer or director, as such, of the Company or of any successor, either directly or through the Company or any
successor, under any rule, law statute or constitutional provision, or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released, by the acceptance hereof and as
part of the consideration for the issuance hereof. 

  
 A-7 

 Unless the certificate of authentication hereon has been executed by the Trustee by manual
signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 This Note shall
be governed by, and construed in accordance with, the internal laws of the state of New York. 

  
 A-8 

 ABBREVIATIONS 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations: 
  

					
	TEN COM – as tenants in common	 		 	 UNIF GIFT MIN ACT – Custodian under Uniform Gift to Minors Act

 
 (State)

			
	TEN ENT – as tenants by the entireties	 		 	
			
	JT TEN – as joint tenants with rights of survivorship and not as tenants in common	 		 	CUST – Custodian

 Additional abbreviations may also be used 

though not on the above list. 
 FOR VALUE
RECEIVED, the undersigned hereby sell(s) and transfer(s) unto 
 PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE 

	
	  

	  

 (please insert Social Security or other identifying number of assignee) 

the within Note and all rights thereunder, hereby irrevocably constituting and appointing 

	
	  

	  

	  

 agent to transfer said Note on the books of the Company, with full power of substitution in the premises. 

 

							
	Dated:	 		 		 	  

		 		 		 	  

		 		 		 	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement, or any change whatever.

  
 A-9 

 EXHIBIT B 

CERTIFICATE OF AUTHENTICATION 

This is one of the 4.000% Senior Notes due 2046 referred to in the within-mentioned Indenture. 

 

							
		 		 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
		 		 	as Trustee
				
	Dated:	 		 	By:	 	  

		 		 	Authorized Signatory

  
 B-1Exhibit 10.1

 

AGREEMENT

This AGREEMENT, dated as of September 13, 2016 (this “Agreement”), is by and among Frequency Electronics, Inc., a Delaware corporation (the “Company”), the entities and natural persons listed on Schedule A hereto (collectively, the “Privet Group”) and their Affiliates (as defined below).

WHEREAS, General Joseph P. Franklin, a member of the Company’s Board of Directors (the “Board”), intends to resign from the Board;

 WHEREAS, following General Franklin’s resignation, the Board intends to (i) increase the size of the Board from seven (7) to eight (8) members and (ii) appoint the Director Designees as directors to fill the two (2) vacancies resulting from General Franklin’s resignation and the increase in Board size, each with a term expiring at the 2016 Annual Meeting;

WHEREAS, on the date hereof the Privet Group Economically Owns (as defined below) the interests in shares, each with a $1.00 par value, of the Company’s common stock (the “Common Stock”) specified on Schedule A of this Agreement; and

WHEREAS, the Company and the Privet Group have agreed that it is in their mutual interest to enter into this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

ARTICLE I

REPRESENTATIONS

SECTION 1.1          Authority; Binding Agreement.  (a)  The Company hereby represents that this Agreement and the performance by the Company of its obligations hereunder (i) has been duly authorized, executed and delivered by the Company, and is a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, (ii) does not require the approval of the shareholders of the Company and (iii) does not and will not violate any law, any order of any court or other agency of government, the charter of the Company or the bylaws of the Company, or any stock exchange rule or regulation, or any provision of any indenture, agreement or other instrument to which the Company or any of its properties or assets is or are bound, or conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument, or result in the creation or imposition of, or give rise to, any lien, charge, restriction, claim, encumbrance or adverse penalty of any nature whatsoever pursuant to any such indenture, agreement or other instrument.

(b)          Each member of the Privet Group represents and warrants that this Agreement and the performance by such member of the Privet Group of its obligations hereunder (i) has been duly authorized, executed and delivered by the Privet Group and such member, and is a valid and binding obligation of such member, enforceable against such member in accordance

with its terms, (ii) does not require approval by any owners or holders of any equity interest in any member of the Privet Group (except as has already been obtained) and (iii) does not and will not violate any law, any order of any court or other agency of government, the charter or other organizational documents of any member of the Privet Group, as amended, or any provision of any agreement or other instrument to which any member of the Privet Group or any of its properties or assets is bound, or conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any such agreement or other instrument, or result in the creation or imposition of, or give rise to, any lien, charge, restriction, claim, encumbrance or adverse penalty of any nature whatsoever pursuant to any such agreement or instrument.

SECTION 1.2           Interests in Common Stock.  The members of the Privet Group hereby represent and warrant to the Company that, as of the date hereof, they and their Affiliates are, collectively, the Economic Owners of such number of shares of Common Stock as is accurately and completely set forth (including, without limitation, as to the form of ownership) on Schedule A hereto, and none of the members of the Privet Group or any of their Affiliates Economically Own any other securities of the Company.  During the Standstill Period (as defined below), the Privet Group shall promptly (and in any event within three business days) notify the Company in writing (a) upon the Privet Group, together with its Affiliates, selling or disposing of an amount of Physical Shares (as defined below) equal to the First Trigger Percentage (as defined below) and (b) upon the Privet Group, together with its Affiliates, becoming the Economic Owners, in the aggregate, of more than 14.9% of the then outstanding shares of Common Stock (based, in the case of this clause (b), on the number of outstanding shares of Common Stock most recently indicated by the Company as outstanding in (x) any of the Company’s Annual Report on Form 10-K, Quarterly Report on Form 10-Q or definitive proxy statement on Schedule 14A, in each case as filed by the Company with the Securities and Exchange Commission (the “SEC”) or (y) a written notice by the Company to the Privet Group); provided, however, that the Company acknowledges and agrees that the timely filing of a Form 4 by the members of the Privet Group with the SEC in accordance with Section 16 of the Exchange Act (as defined below) shall constitute written notice to the Company.  At any time during the Standstill Period during which the members of the Privet Group are not subject to Section 16 of the Exchange Act, the Privet Group shall, upon written request of the Company (which request shall not be made more than twice during any quarterly period), promptly (and no later than five business days after the request is received) provide the Company with a written report specifying the number of shares of Common Stock Economically Owned, in the aggregate, by the Privet Group together with its Affiliates, as of the close of business on the date immediately preceding the receipt of such request.

 

SECTION 1.3          Defined Terms.  For purposes of this Agreement

(a)          The term “Affiliate” has the meaning set forth in Rule 12b-2 promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”); provided, that the term “Affiliate” shall not include any portfolio or operating company of the Privet Group for which all of the following conditions are satisfied: (i) whose equity securities are registered under the Exchange Act (or are publicly traded in a foreign jurisdiction), (ii) as to which the Privet Group and its Affiliates own less than a majority of the total voting power of all outstanding voting securities and do not have representatives or designees who occupy a majority of the seats on the board of directors or other similar governing body of such portfolio

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or operating company and do not otherwise control (as the term “control” is defined in Rule 12b-2 promulgated by the SEC under the Exchange Act) such portfolio or operating company, and (iii) to which no non-public information about the Company has been made available by the Director Designee or any member of the Privet Group or their Affiliates.  For purposes of this Agreement, the Privet Group, on the one hand, and the Company, on the other, shall not be deemed to be Affiliates of each other.

(b) References to “Annual Meeting” mean the Company’s annual shareholders’ meeting.

(c) The terms “Beneficial Owner,” “Beneficially Own” and “Beneficial Ownership” shall have the same meanings as set forth in Rule 13d-3 (“Rule 13d-3”) promulgated by the SEC under the Exchange Act.  The terms “Economic Owner,” “Economically Own” and “Economic Ownership” shall have the same meanings as “Beneficial Owner,” “Beneficially Own” and “Beneficial Ownership” except that a person will also be deemed to “Economically Own,” to be the “Economic Owner” and to have “Economic Ownership” of (i) all shares of Common Stock which such person has the right to acquire pursuant to the exercise of any rights in connection with any securities or any agreement, regardless of when such rights may be exercised and whether they are conditional, and (ii) all shares of Common Stock in which such person has any economic interest, including, without limitation, pursuant to a cash settled call option or other derivative security, contract or instrument in any way related to the price of shares of Common Stock.

(d)          The term “Director Designees” shall mean each of General Lance Lord and Mr. Ryan Levenson, or any replacement agreed upon by the Company and the Privet Group in accordance with and subject to Section 2.1(b).

(e)          “Extraordinary Matter” means (i) any merger, consolidation, share exchange, recapitalization, or other business combination, in each case as a result of which the holders of the Common Stock of the Company immediately prior to the consummation of such transaction would cease to own at least a majority of the outstanding shares of common stock of the resulting company (or, if such resulting company is a subsidiary, then the ultimate parent company) or (ii) any liquidation, dissolution or sale of all or substantially all of the assets of the Company, in each case referred to in (i) or (ii) that is subject to approval by the shareholders of the Company.  For the avoidance of doubt, “Extraordinary Matter” does not include a proxy contest or consent solicitation with respect to the election of directors.

 (f)          “Final Trigger Event” means the first date on which the Privet Group, together with its Affiliates, do not own, in the aggregate the Second Trigger Percentage.

(g)          “First Trigger Event” means the first date on which the Privet Group, together with its Affiliates, do not own, in the aggregate the First Trigger Percentage.

(h)          “First Trigger Percentage” means Beneficial Ownership by the Privet Group of Physical Shares of 70% or less of the aggregate number of Physical Shares Beneficially Owned by the Privet Group as of the date of this Agreement due to any sale or disposition of shares of Common Stock after the date of this Agreement.

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(i)          “Physical Shares” means, with respect to a person or entity, shares Beneficially Owned by such person or entity as to which such person or entity directly or indirectly has voting and investment power and which are held either of record by such person or entity or through a broker, dealer, agent, custodian or other nominee that is the holder of record of such shares.  For the avoidance of doubt, it is understood that (i) “Physical Shares” shall not include shares Beneficially Owned by such person or entity solely as a result of the operation of (x) clauses (i) and (ii) of Section 1.3(c) or (y) Rule 13d-3(d)(1)(i)(A)-(B), and (ii) the fact that shares are held in a margin account or are pledged as collateral pursuant to customary loan documentation shall not result in such shares not being considered Physical Shares unless and until such shares are liquidated pursuant to a margin call or otherwise foreclosed upon by the applicable broker, lender or other third party.

(j)          “Second Trigger Percentage” means Beneficial Ownership by the Privet Group of Physical Shares of 50% or less of the aggregate number of Physical Shares Beneficially Owned by the Privet Group as of the date of this Agreement due to any sale or disposition of shares of Common Stock after the date of this Agreement.

(k)          The “Standstill Period” means the period from the date of this Agreement through the earliest of:

 (1) thirty days prior to the first day of the notice period specified in the advance notice provision applicable to the Company’s 2018 Annual Meeting (whether pursuant to applicable law or regulation or the Company’s charter or bylaws, each as may hereafter be amended);

(2) if the Company has materially breached this Agreement (including by failing to appoint either Director Designee to serve as a director of the Board with a term expiring at the 2016 Annual Meeting in violation of this Agreement, or failing to appoint the mutually agreed replacement to either Director Designee in accordance with and subject to Section 2.1(b), and within the timeframe set forth in Section 1.3(k)(4) if such replacement has been mutually agreed during such timeframe), the date that the Privet Group delivers to the Company written notice of termination of the Standstill Period specifying this Section 1.3(k)(2), provided that, if such material breach can be cured, such notice will be effective and such termination of the Standstill Period shall occur only if (A) such notice of termination is delivered to the Company on or after the 10th calendar day following the receipt by the Company of written notice from the Privet Group describing the Company’s breach of this Agreement in reasonable detail and (B) the Company, at the time of delivery of such notice of termination, has failed to cure such breach;

(3) if either Director Designee is removed from the Board (but not including removal of the Director Designee (A) following such Director Designee’s failure to resign in accordance with Section 2.1(a), (B) in connection with such Director Designee’s required resignation pursuant to Section 2.1(a) or Section 3.1(b), or (C) under the circumstances described in Section 1.3(k)(4)(A)), the date (on or after the date of such removal) on which the Privet Group delivers to the Company written notice of termination of the Standstill Period specifying this Section 1.3(k)(3); or

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(4) if both (A) either then-current Director Designee voluntarily resigns as a director  of the Company or is unable to serve as a director of the Company as a result of his or her death or incapacity or any removal for cause and (B) the Board fails to appoint pursuant to Section 2.1(b) the replacement to the Board within 60 calendar days following the date that the prior Director Designee ceased to be a director of the Company if such replacement has been selected and approved during such timeframe, the date (on or after the expiration of such 60 calendar days) on which the Privet Group delivers to the Company written notice of termination of the Standstill Period specifying this Section 1.3(k)(4).

(l)          “Trigger Event Resignation Date” means any date on which a resignation of a Director Designee, due to the occurrence of a First Trigger Event or a Final Trigger Event, takes effect.

ARTICLE II

COVENANTS

SECTION 2.1 Directors.

(a)  As promptly as practicable following the date of the Company’s next Board meeting and, in any event, on or before September 30, 2016, General Joseph P. Franklin shall resign from the Board and the Company agrees that the Board and all applicable committees of the Board shall take all actions necessary to (i) increase the size of the Board from seven (7) to eight (8) directors, (ii) appoint the Director Designees as directors of the Company to serve on the Board with a term expiring at the 2016 Annual Meeting and shall appoint one Director Designee to the Audit Committee and the other Director Designee to the Compensation Committee, subject to Section 2.1(b), and (iii) include the Director Designees on the Company’s slate of nominees for the election of directors at the 2016 Annual Meeting and recommend and solicit proxies for the election of the Director Designees at the 2016 Annual Meeting in the same manner as for the other nominees nominated by the Board at the 2016 Annual Meeting.  The members of the Privet Group agree that (i) one of its two Director Designees will resign as a member of the Board (and all committees thereof) if five or more calendar days have elapsed since the First Trigger Event and the Board has requested in writing the Director Designee’s resignation, in which case the resignation shall take effect at the time the Board has delivered such request to the Director Designee and the Privet Group and (ii) all of its Director Designees will resign as members of the Board (and all committees thereof) if five or more calendar days have elapsed since the Final Trigger Event and the Board has requested in writing the Director Designee(s)’s resignation(s), in which case the resignation(s) shall take effect at the time the Board has delivered such request to the Director Designee and the Privet Group.  By entering into this Agreement, each Director Designee hereby irrevocably agrees to resign as a member of the Board (and all committees thereof) on the earlier of (x) the Trigger Event Resignation Date, and (y) the date that the Board delivers a written request to the Director Designee and the Privet Group for the Director Designee’s resignation under the circumstances described in, and in accordance with, Section 3.1(b).  If the Standstill Period has not expired on the first day of the advanced notice period for

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shareholders to nominate directors for election at the Company’s 2017 Annual Meeting, unless the Board determines in good faith that doing so would violate the Board’s fiduciary duties under applicable law, the Board shall nominate the Director Designees for election to the Board at the 2017 Annual Meeting and will recommend and solicit proxies for the election of the Director Designees at the 2017 Annual Meeting in the same manner as for the other nominees nominated by the Board at the 2017 Annual Meeting.  The Board and the Company shall have no obligation to nominate any Director Designee for election at the Company’s 2018 Annual Meeting.   The Company further agrees that without the unanimous approval of the Board, including each Director Designee, the size of the Board shall not exceed nine (9) directors following the 2016 Annual Meeting and prior to the 2018 Annual Meeting; however, in the event a ninth (9th) director is added to the Board at any time prior to the 2018 Annual Meeting, such director shall be mutually agreed upon by the Company and the Privet Group.

(b)          In the event (without regard to any termination of the Standstill Period pursuant to Sections 1.3(k)(2) or 1.3(k)(4)) that any Director Designee (i) voluntarily resigns as a director of the Company or (ii) is unable to serve as a director of the Company due to death or incapacity or due to any removal for cause, the Privet Group shall be entitled to recommend a substitute person(s) to fill the resulting vacancy, subject to the approval of a majority of the directors serving on the Board which are not Director Designees or otherwise affiliated with the Privet Group (collectively, the “Unaffiliated Directors”), it being understood that the Unaffiliated Directors cannot unreasonably withhold their consent to such a replacement candidate and that a good faith belief that a replacement candidate’s appointment would not be in the best interest of the Company or its business does not constitute an unreasonable withholding of consent, and the Board’s good faith customary due diligence process, including review of a directors’ and officers’ questionnaire, background check and interviews. In the event the Unaffiliated Directors do not accept a substitute person recommended by the Privet Group, the Privet Group will have the right to recommend additional substitute person(s) for consideration by the Unaffiliated Directors. Upon the approval of a replacement Director Designee by the Unaffiliated Directors acting in good faith, the Board will take such actions as necessary to appoint such replacement Director Designee to the Board no later than five business days after the Unaffiliated Directors’ approval of such replacement Director Designee.  It is understood that no person may be a Director Designee unless he or she has executed (i) a joinder to this Agreement with respect to the obligations set forth in the second sentence of Section 2.1(a) and Section 3.1(b), and (ii) enters into a confidentiality agreement having substantially the same terms as any confidentiality agreement entered into by the previous Director Designee.

(c)  Security Clearance.  Each party hereto shall use its reasonable best efforts to ensure that each Director Designee obtains, from the Defense Security Service of the U.S. Department of Defense (or other appropriate agency), a security clearance at the “Secret” level (the “Security Clearance”) as soon as reasonably practicable following the execution of this Agreement or the nomination of a replacement Director Designee, as the case may be. Each Director Designee will use its good faith efforts to maintain his or her Security Clearance after it is obtained.  Any Director Designee who does not obtain or maintain his or her Security Clearance shall not be permitted to access the Company’s Classified Information (as determined by a majority of directors who have Security Clearance; provided, however, if General Lord disagrees with such determination, it shall be submitted to an independent, mutually agreed upon qualified person for decision) or to participate in those portions of Board meetings at which

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Company Classified Information (as determined by a majority of directors who have Security Clearance; provided, however, if General Lord disagrees with such determination, it shall be submitted to an independent, mutually agreed upon qualified person for decision) is discussed.

SECTION 2.2          Voting Provisions.   During the Standstill Period, each member of the Privet Group shall cause, and shall cause its respective Affiliates to cause, all shares of Common Stock or any rights, warrants, options or other securities convertible into or exchangeable for shares of Common Stock or any other securities of the Company for which they have the right to vote to be present for quorum purposes and to be voted at any meeting of shareholders or at any adjournments or postponements thereof, and to consent in connection with any action by consent in lieu of a meeting, (i) in favor of each director nominated and recommended by the Board for election at any such meeting, (ii) against any shareholder nominations for director which are not approved and recommended by the Board for election at any such meeting and against any proposals or resolutions to remove any member of the Board and (iii) in accordance with the recommendations by the Board on all other proposals of the Board set forth in the Company’s proxy statements; provided, however, in the event that Institutional Shareholder Services Inc. (“ISS”) or Glass, Lewis & Co., LLC (“Glass Lewis”) recommends otherwise with respect to any proposals (other than the election or removal of directors), the Privet Group shall be permitted to vote in accordance with ISS or Glass Lewis recommendation; provided, further, that if a proposal with respect to any Extraordinary Matter is presented, the Privet Group may vote in its sole discretion with respect to such matter. Each member of the Privet Group shall also cause, and shall cause its respective Affiliates to cause, all shares of Common Stock for which they have the right to vote to be present for quorum purposes and to be voted in accordance with this Section 2.2 at each of the 2016 Annual Meeting, the 2017 Annual Meeting or at any adjournments or postponements thereof.  Not later than five (5) business days prior to each of the 2016 Annual Meeting and 2017 Annual Meeting, each member of the Privet Group shall vote in accordance with this Section 2.2 and shall not revoke or change any such vote.

SECTION 2.3          Actions by the Privet Group.  Each member of the Privet Group agrees that, during the Standstill Period, it shall not, and shall cause its Affiliates not to, unless specifically requested or authorized in writing by a resolution of the Board, directly or indirectly:

(a)          purchase or cause to be purchased or otherwise acquire or agree to acquire Economic Ownership of any Common Stock, if in any such case, immediately after the taking of such action the Privet Group, together with their respective Affiliates, would, in the aggregate, Economically Own more than 14.9% of the then outstanding shares of Common Stock; provided, that any securities of the Company granted or awarded to General Lance Lord in his capacity as a director of the Company shall not be counted toward the 14.9% Economic Ownership limitation;

(b)          form, join, or in any other way participate in, a “partnership, limited partnership, syndicate or other group” within the meaning of Section 13(d)(3) of the Exchange Act with respect to the Common Stock, or deposit any shares of Common Stock in a voting trust or similar arrangement, or subject any shares of Common Stock to any voting agreement or pooling arrangement, or grant any proxy, designation or consent with respect to any shares of Common Stock (other than to a designated representative of the Company pursuant to a proxy or consent solicitation on behalf of the Board), other than solely with one or more Affiliates (other than

7

portfolio or operating companies) of the Privet Group with respect to the shares of Common Stock acquired in compliance with paragraph (a) above or to the extent such a group may be deemed to result with the Company or any of its Affiliates as a result of this Agreement (it being understood that the holding by persons or entities of shares of Common Stock in accounts or through funds not managed or controlled by the Privet Group or any Affiliate of the Privet Group shall not give rise to a violation of this Section 2.3(b) solely by virtue of the fact that such persons or entities, in addition to holding such shares in such manner, are investors in funds and accounts managed by the Privet Group or any of its Affiliates and, in their capacity as such, are or may be deemed to be members of a “group” with the Privet Group within the meaning of Section 13(d)(3) of the Exchange Act with respect to the Common Stock; provided there does not exist as between such persons or entities, on the one hand, and the Privet Group or any of its Affiliates, on the other hand, any agreement, arrangement or understanding with respect to any action that would otherwise be prohibited by this Section 2.3);

(c)          solicit proxies, designations or written consents of shareholders, or conduct any binding or nonbinding referendum with respect to Common Stock, or make or in any way participate in any “solicitation” of any “proxy” within the meaning of Rule 14a-1 promulgated by the SEC under the Exchange Act (but without regard to the exclusion set forth in Rule 14a-1(l)(2)(iv) from the definition of “solicitation”) to vote any shares of Common Stock with respect to any matter, or become a “participant” in any contested solicitation for the election of directors with respect to the Company (as such terms are defined or used in the Exchange Act and the Rules promulgated thereunder), other than solicitations or acting as a “participant” in support of the recommendations of the Board;

(d)          (i) seek to call, request the call of, or call a special meeting of the shareholders of the Company, or make or seek to make a shareholder proposal (whether pursuant to Rule 14a-8 under the Exchange Act or otherwise) at any meeting of the shareholders of the Company or in connection with any action by consent in lieu of a meeting, (ii) make a request for a list of the Company’s shareholders, (iii) seek election to the Board or seek to place a representative on the Board (other than as expressly set forth in Section 2.1 and Section 2.2), (iv) seek the removal of any director from the Board, or (v) otherwise acting alone or in concert with others, seek to control or publicly influence the governance or policies of the Company;

(e)          propose, offer or participate in (i) any effort to acquire the Company or any of its subsidiaries or any material assets or operations of the Company or any of its subsidiaries, (ii) any effort to engage in a  transaction or enter into any agreement that would result in Economic Ownership by any person or entity (whether or not member of the Privet Group) or group (as defined in Section 13(d)(3) of the Exchange Act) of more than 14.9% of the outstanding shares of Common Stock at any time or outstanding voting power of the Company at any time (excluding securities granted or awarded to Mr. Levenson in his capacity as a director of the Company), (iii) any tender offer, exchange offer, merger, acquisition, share exchange or other business combination or “change in control” (as such term is used in Item 6 of Schedule 14A) transaction involving the Company or any of its subsidiaries, or (iv) any recapitalization, restructuring, liquidation, disposition, dissolution or other extraordinary transaction involving the Company, any of its subsidiaries or any material portion of their businesses;

8

(f)          publicly disclose, or cause or facilitate the public disclosure (including without limitation the filing of any document or report with the SEC or any other governmental agency or any disclosure to any journalist, member of the media or securities analyst) of, any intent, purpose, plan or proposal to obtain any waiver, consent under, or amendment of, any of the provisions of Section 2.2 or Section 2.3, or otherwise (i) publicly seek in any manner to obtain any waiver,  consent under, or amendment of, any provision of this Agreement or (ii) bring any action or otherwise act to contest the validity or enforceability of Section 2.2 or Section 2.3 or publicly seek a release from the restrictions or obligations contained in Section 2.2 or Section 2.3 (it being understood, however, that the Privet Group may make confidential requests to the Board to amend, modify or waive any provision of Section 2.2 or Section 2.3, which the Board may accept or reject in its sole discretion, so long as any such request is not publicly disclosed by the Privet Group and is made by the Privet Group in a manner that does not require the public disclosure thereof by the Company, the Privet Group or any other person);

(g)          make or issue or cause to be made or issued any public disclosure, announcement or statement (including without limitation the filing of any document or report with the SEC or any other governmental agency or any disclosure to any journalist, member of the media or securities analyst) (i) in support of any solicitation described in paragraph (c) above (other than solicitations on behalf of the Board), (ii) in support of any matter described in paragraph (d) above, or (iii) concerning any potential matter described in paragraph (e) above; or

(h)          enter into any discussions, negotiations, agreements or understandings with any person or entity (other than the persons or entities set forth on Schedule A) with respect to the foregoing, or advise, assist, encourage, support or seek to persuade others to take any action with respect to any of the foregoing, or act in concert with others or as part of a group (within the meaning of Section 13(d)(3) of the Exchange Act) with respect to any of the foregoing.

In the event the Company has announced or entered into a binding agreement providing for, or has recommended that its shareholders support, an Extraordinary Matter, the provisions of this Section 2.3 shall not operate to prevent the Privet Group from proposing or taking any actions in furtherance of, or consummating, a competing Extraordinary Matter, provided that all of the other provisions of this Agreement shall continue in full force and effect.

Notwithstanding anything herein to the contrary, nothing in this Section 2.3 shall be deemed to in any way restrict or limit: (i) a Director Designee, in his or her capacity as a member of the Board, from confidentially (A) expressing or advocating for his or her views to the Company, the Board, officers of the Company, other directors, representatives and advisors of the Company or at Board meetings, (B) voting in his or her capacity as a director or (C) taking any action in his or her capacity as a director of the Company required by his or her fiduciary duties to the Company; (ii) the Privet Group or its Affiliates from (A) discussing any matter privately with the Company, the Board, officers of the Company or any directors of the Company solely to the extent that, without the prior written consent of the Company, such discussions (1) are not publicly disclosed, and would not reasonably be expected to require public disclosure, (including, without limitation, in any document or report filed with the SEC) by the Privet Group or any Affiliate of the Privet Group at or around the time such discussions take place, and (2) are not reasonably expected to require public disclosure (including, without limitation, in any document or report filed with the SEC) by the Company at or around the time

9

such discussions take place, (B) voting their shares of Common Stock on any matter brought before the shareholders of the Company without violation of this Section 2.3 in any manner that they choose, other than as expressly provided in Section 2.2, (C) selling or tendering any shares of Common Stock, including in response to a Company or third-party tender offer or exchange offer, or (D) buying any shares of Common Stock other than as expressly provided in Section 2.3(a) (and Section 2.3(h) to the extent relating to Section 2.3(a)); or (iii) the Director Designee or the Privet Group from communicating, on a confidential basis, with attorneys, accountants or financial advisors (excluding any advisor who has taken, takes or is expected by the Privet Group to take, any action that if taken by the Privet Group would violate Section 2.3), or as otherwise required by law.

In the event that, within a thirty day period, both (A) the Privet Group sells or otherwise disposes of all Physical Shares of Common Stock owned by the Privet Group and (B) both Director Designees voluntarily resign as directors of the Company, then, upon written notice received by the Company from the Privet Group following such events the Standstill Period shall terminate, solely with respect to the obligations set forth in Sections 2.3(a), 2.3(b), 2.3(e) and 2.3(g)(iii), on the earlier to occur of (unless otherwise earlier terminated in accordance with Section 1.3(k)) (x) the first anniversary of the date of such notice and (y) thirty days prior to the first day of the notice period specified in the advance notice provision applicable to the Company’s 2018 Annual Meeting (whether pursuant to applicable law or regulation or the Company’s charter or bylaws, each as may hereafter be amended).  For the avoidance of doubt, unless otherwise earlier terminated in accordance with Section 1.3(k), all other obligations contained in Section 2.3 shall continue in accordance with the terms of this Section 2.3 until thirty days prior to the first day of the notice period specified in the advance notice provision applicable to the Company’s 2018 Annual Meeting (whether pursuant to applicable law or regulation or the Company’s charter or bylaws, each as may hereafter be amended).

SECTION 2.4          Additional Representations and Agreements by the Parties.

(a)          The Privet Group acknowledges and agrees that the Company will file a current report on Form 8-K or Annual Report on Form 10-K that describes this Agreement. The Company acknowledges and agrees that the Privet Group will file an amendment to its Schedule 13D reporting the entry into this Agreement. The relevant disclosure in such filings shall be consistent with the press release described in Section 2.5 and the terms of this Agreement, and shall each be in form and substance reasonably acceptable to the Company and the Privet Group.

(b)          The Company acknowledges that:

(i)          as of the date of this Agreement, each Director Designee qualifies as an “independent director”  for purposes of the Nasdaq Stock Market Rules; and

 

(ii)          for purposes of determining whether each Director Designee is in compliance with any stock ownership guidelines of the Company relating to the amount of shares of Common Stock required to be owned by the Company’s directors, the Physical Shares of Common Stock Beneficially Owned by the Privet Group together with their Affiliates shall be included in any such determination.

10

(c)          During the Standstill Period, the Privet Group shall not, and the Privet Group shall cause its respective Affiliates not to, make, or cause to be made, any comments or statements by press release or similar public statement to the press or media, or in any SEC filing, any statement or announcement that is negative with respect to or disparages, the Company, partners, officers, directors or employees or the Company’s businesses, operations, strategic plans or strategic direction.  During the Standstill Period (without regard to any termination of the Standstill Period pursuant to Sections 1.3(g)(2) or 1.3(g)(4)), neither the Company, its Affiliates nor any of their respective officers, directors or employees shall, make, or cause to be made, by press release or similar public statement, including to the press or media or in an SEC filing, any statement or announcement that is negative with respect to or disparages, any member of the Privet Group, its Affiliates or any of their respective officers, directors, members or employees.  The foregoing shall not apply to compelled testimony, either by legal process, subpoena or otherwise, or if the comments or statements of the type covered by this Section 2.4(c) are required to be made by law or regulation by either party.

SECTION 2.5          Publicity.  Promptly after the execution of this Agreement, the Company will issue a mutually agreeable press release substantially in the form attached hereto as Schedule B.

ARTICLE III

OTHER PROVISIONS

SECTION 3.1          Specific Performance; Remedies. (a)  Each party hereto hereby acknowledges and agrees, on behalf of itself and its Affiliates, that irreparable harm would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  It is accordingly agreed that the parties will be entitled to specific relief hereunder, including, without limitation, an injunction or injunctions to prevent and enjoin breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any state or federal court in the State of Delaware, or, if such courts do not accept jurisdiction then any state or federal court in the State of New York, in addition to any other remedy to which they may be entitled at law or in equity.  Any requirements for the securing or posting of any bond with such remedy are hereby waived.

(b)          Notwithstanding any other section in this Agreement and without limiting any other remedies the Company may have in law or equity, in the event that any member of the Privet Group shall have materially breached this Agreement and shall not have cured such breach within 15 calendar days following receipt of written notice describing such breach in reasonable detail from the Company, either or both Director Designees shall, upon the written request of the Board, resign as members of the Board, such resignation to be effective as of the time the Board has delivered such request to the Director Designees and the Privet Group.

(c)          Each party hereto agrees, on behalf of itself and its Affiliates, that any actions, suits or proceedings arising out of or relating to this Agreement or the transactions contemplated hereby will be brought solely and exclusively in any state or federal court in the State of Delaware, or, if such courts do not accept jurisdiction then any state or federal court in the State of New York (and the parties agree not to commence any action, suit or proceeding relating

11

thereto except in such courts), and further agrees that service of any process, summons, notice or document by U.S. registered mail to the respective addresses set forth in Section 3.3 will be effective service of process for any such action, suit or proceeding brought against any party in any such court.  Each party, on behalf of itself and its Affiliates, irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby, in any state or federal court in the State of Delaware, or, if such courts do not accept jurisdiction then any state or federal court in the State of New York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an improper or inconvenient forum.

SECTION 3.2          Entire Agreement.  This Agreement (together with any confidentiality agreement(s) entered into by any Director Designee) contains the entire understanding of the parties with respect to the subject matter hereof and may be amended only by an agreement in writing executed by the parties hereto.  No rights under this Agreement shall be deemed waived absent a written waiver by the party granting the waiver.

SECTION 3.3          Notices.  All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process in regard hereto shall be in writing and shall be deemed validly given, made or served, if (a) given by facsimile, when such facsimile is transmitted to the facsimile number set forth below and the appropriate confirmation is received or (b) if given by any other means, when actually received during normal business hours at the address specified in this subsection:

if to the Company:

Frequency Electronics, Inc.

55 Charles Lindbergh Blvd.

 Mitchel Field, New York 11553

Facsimile:          (516) 794-4340

Attention: Martin Bloch, Chief Executive Officer

with a copy to:

Greenberg Traurig, LLP

200 Park Ave.

New York, New York 10166

Facsimile: (212) 805-5555

Attention: Dennis J. Block, Esq.          

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if to the Privet Group:

Privet Fund LP

79 West Paces Ferry Road

Suite 200B

Atlanta, Georgia 30305

Facsimile: (678) 999-5908

 Attention: Ryan Levenson

with a copy to:

Olshan Frome Wolosky LLP

1325 Avenue of the Americas

New York, New York 10019

 Facsimile: (212) 451-2222

Attention: Steve Wolosky

                    Aneliya Crawford

 

Bryan Cave LLP

One Atlantic Center, 14th Floor

1201 W. Peachtree Street, NW

Atlanta, Georgia 30309

Facsimile: (404) 420-0787

 Attention: Rick Miller

SECTION 3.4          Governing Law.  This Agreement and any claim, controversy or dispute arising under or related to this Agreement, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, without regard to any conflict of laws provisions thereof.

SECTION 3.5          Further Assurances.  Each party agrees to take or cause to be taken such further actions, and to execute, deliver and file or cause to be executed, delivered and filed such further documents and instruments, and to obtain such consents, as may be reasonably required or requested by the other parties in order to effectuate fully the purposes, terms and conditions of this Agreement.

SECTION 3.6          Third-Party Beneficiaries.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns, and nothing in this Agreement is intended to confer on any person other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.  The rights and obligations under this Agreement may not be transferred without the consent of the other parties and any transfer in violation of this sentence shall be null and void.

SECTION 3.7          Fees and Expenses.  Concurrently with the execution of this Agreement, the Board shall authorize the reimbursement to the Privet Group of up to $50,000 of the

13

reasonable and documented third party advisor expenses (including expenses incurred by the Privet Group’s financial and legal advisors) with respect to the Privet Group’s investment in the Company, and any other expenses incurred by the Privet Group in connection with this Agreement and related matters (collectively, the “Expenses”), and such reimbursement shall be paid to the Privet Group within five business days of the date the Expenses are submitted. Except for the Expenses provided for herein, neither the Company, on the one hand, nor the Privet Group, on the other hand, will be responsible for any costs, fees or other expenses of the other in connection with this Agreement or any event leading thereto.

SECTION 3.8          Counterparts; Miscellaneous.  This Agreement may be executed and delivered (including by facsimile transmission or .pdf format) in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  The headings used herein are for convenience only and the parties agree that such headings are not to be construed to be part of this Agreement or to be used in determining the meaning or interpretation of this Agreement.  Unless the context otherwise requires, whenever used in this Agreement the singular shall include the plural, the plural shall include the singular, and the masculine gender shall include the neuter or feminine gender and vice versa.   Except as otherwise expressly provided herein, no failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder, or otherwise available in law or in equity, shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy.   If any provision of this Agreement or the application thereof, becomes or is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement will continue in full force and effect so long as the remaining provisions do not fundamentally alter the relations among the parties.

SECTION 3.9          Interpretation.  Each of the parties hereto acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Agreement, and that it has executed the same with the advice of such counsel.  Each party and its counsel cooperated and participated in the drafting and preparation of this Agreement and the documents referred to herein, and any and all drafts relating thereto exchanged among the parties shall be deemed the work product of all of the parties and may not be construed against any party by reason of its drafting or preparation.  Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties hereto.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement, or caused the same to be executed by its duly authorized representative as of the date first above written.

	 	
COMPANY:

 

FREQUENCY ELECTRONICS, INC.

 

 

By: /s/                                                             

Name: Martin Bloch

 Title: Chief Executive Officer

 

	 	
 

 

PRIVET GROUP:

 

PRIVET FUND LP

	 
	 	
By: Privet Fund Management LLC,

	 
	 	
Its General Partner

	 
	 	
 

	 
	 	
By: /s/                                                           

	 
	 	
Name: Ryan Levenson

	 
	 	
Title: Managing Member

	 
	 	
 

	 
	 	
PRIVET FUND MANAGEMENT LLC

	 
	 	
 

	 
	 	
By: /s/                                                           

	 
	 	
Name: Ryan Levenson

	 
	 	
Its: Managing Member

	 
	 	
 

	 
	 	                                                                        	 
	 	
Ryan Levenson

	 
	 	 	 
	 	                                                                         	 
	 	
General Lance Lord

	 

SCHEDULE A

As of September 13, 2016, the Privet Group Economically Owns, in the aggregate, 1,043,947 shares of Common Stock.

 

The persons and entities that own such shares and the number of shares that they Economically Own are set forth below.

	
Person or Entity

	
Shares of Common Stock Economically Owned

	
 

Privet Fund LP

 

	
 

 990,164 (consisting of shares of Common Stock owned directly)

 

	
Privet Fund Management LLC

	
 1,043,947 (consisting of 53,783 shares of Common Stock owned directly and 990,164 shares of Common Stock owned directly by Privet Fund LP)

	
Ryan Levenson

	
1,043,947 (consisting of 53,783 shares of Common Stock owned directly by Privet Fund Management LLC and 990,164 shares of Common Stock owned directly by Privet Fund LP)

	
 

General Lance Lord 

 

	
 

0 shares of Common Stock

 

         

SCHEDULE B

[Press Release]

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