Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
 AMENDMENT NO. 4
AND REFINANCING AMENDMENT 
 Dated as of July 26, 2017 

to 
 CREDIT AGREEMENT 

Dated as of February 13, 2014 

THIS AMENDMENT NO. 4 AND REFINANCING AMENDMENT (this “Amendment”) is made as of July 26, 2017 by and among YRC
Worldwide Inc. (the “Borrower”), the other Guarantors party to the Credit Agreement, the financial institutions listed on the signature pages hereof and Credit Suisse AG, Cayman Islands Branch, as administrative agent (in such
capacity, the “Administrative Agent”) and collateral agent, under that certain Credit Agreement dated as of February 13, 2014, by and among the Borrower, the Guarantors party thereto from time to time, the Lenders, Credit
Suisse AG, Cayman Islands Branch, as the Administrative Agent and collateral agent (as amended, amended and restated, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”;
the Credit Agreement as amended hereby, the “Amended Credit Agreement”). Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement. 

WHEREAS, the Borrower desires to effectuate a refinancing of the Initial Term Loans in accordance with Section 2.18 of the Credit
Agreement by incurring Other Term Loans pursuant to Article I hereof (the “Refinancing”), which Other Term Loans will be established as a new Class designated as the Tranche B-1 Term
Loans (as defined herein) pursuant to amendments authorized by Section 2.18 of the Credit Agreement with terms as set forth in the Amended Credit Agreement, with the proceeds of such Tranche B-1 Term
Loans, together with cash on hand of the Borrower, being used to refinance all of the Initial Term Loans; 
 WHEREAS, the Borrower has
requested certain other amendments to the Credit Agreement, which shall become effective immediately following consummation of the Refinancing; 

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Guarantors party hereto, the Tranche B-1 Term Lenders (as defined herein), the Administrative Agent and the
Required Lenders (immediately after giving effect to the Refinancing) party hereto have agreed to enter into this Amendment. 
 ARTICLE I.
Tranche B-1 Term Loans. 
 (a) Each Person set forth on Schedule I hereto under the caption
“Tranche B-1 Term Lender” (each, a “Tranche B-1 Term Lender”) agrees, severally and not jointly, to make, on the Fourth Amendment Effective
Date (as defined herein), Other Term Loans (the “Tranche B-1 Term Loans”) to the Borrower in a principal amount not to exceed the amount set forth opposite to such Tranche B-1 Term Lender’s name on Schedule I hereto (the “Tranche B-1 Term Loan Commitments”). Amounts repaid or prepaid in respect of the Tranche B-1 Term Loans may not be reborrowed. 

 (b) The Tranche B-1 Term Loan Commitments of each Tranche
B-1 Term Lender shall automatically terminate upon the making of the Tranche B-1 Term Loans by such Tranche B-1 Term Lender on
the Fourth Amendment Effective Date. 
 (c) The Tranche B-1 Term Loans shall have the terms set
forth in the Amended Credit Agreement. Unless the context shall otherwise require, (i) the Tranche B-1 Term Loans shall constitute “Other Term Loans”, “Term Loans” and
“Loans” and (ii) the Tranche B-1 Term Lenders shall constitute “Term Lenders”, “Additional Lenders” and “Lenders”, in each case for all purposes of the Amended
Credit Agreement. 
 (d) The proceeds of the Tranche B-1 Term Loans are to be used solely to prepay
in full the Initial Term Loans and to pay fees and expenses incurred in connection with the transactions contemplated hereby. 
 ARTICLE II.
Refinancing Amendments. Effective as of the date of satisfaction or waiver of the conditions precedent set forth in Article IV below, the Credit Agreement is hereby amended as follows: 

(a) Section 1.01 of the Credit Agreement is hereby amended by adding the following definitions in proper alphabetical sequence: 

““Early Maturity Date” has the meaning assigned to such term in the definition of “Maturity Date”.” 

““Fourth Amendment” means that certain Amendment No. 4 and Refinancing Amendment to this Agreement, dated as of
July 26, 2017, among the Borrower, the Guarantors, the Administrative Agent, and the financial institutions listed on the signature pages thereto.” 

““Fourth Amendment Effective Date” shall have the meaning assigned to such term in Article IV of the Fourth
Amendment.” 
 ““Single-Employer Plans” shall mean the Roadway LLC Pension Plan, the Yellow Corporation Pension
Plan and the YRC Retiree Pension Plan or any other Plans sponsored or maintained by the Borrower or any Restricted Subsidiary.” 

““Tranche B-1 Term Loans” means the Other Term Loans incurred pursuant to the
Fourth Amendment.” 
 (b) The definition of “Applicable ECF Percentage” in Section 1.01 of the Credit Agreement
is hereby amended and restated in its entirety as follows: 
 ““Applicable ECF Percentage” shall mean, for any Excess
Cash Flow Period, (a) 75% if the Total Leverage Ratio as of the last day of such Excess Cash Flow Period is greater 

  
 2 

 
than 3.25:1.00, (b) 50% if the Total Leverage Ratio as of the last day of such Excess Cash Flow Period is less than or equal to 3.25:1.00 and greater than 3.00:1.00, (c) 25% if the Total Leverage
Ratio as of the last day of such Excess Cash Flow Period is less than or equal to 3.00:1.00 but is greater than 2.50:1.00, and (d) 0% if the Total Leverage Ratio as of the last day of such Excess Cash Flow Period is less than or equal to
2.50:1.00.” 
 (c) The definition of “Applicable Margin” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety as follows: 
 ““Applicable Margin” commencing on the Fourth Amendment Effective
Date, shall mean, with respect to (a) any Eurodollar Tranche B-1 Term Loan and (b) any ABR Tranche B-1 Term Loan, the percentages per annum set forth in the
table below, based upon the Total Leverage Ratio (on a Pro Forma Basis) as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(a). 

 

													
	 Pricing
Level
	  	Total Leverage
Ratio	 	  	ABR Tranche B-1
Term Loans	 	 	Eurodollar Tranche
B-1 Term Loans	 
	 I
	  	 	> 2.00 to 1.00	 	  	 	7.50	% 	 	 	8.50	% 
	 II
	  	 	£ 2.00 to 1.00	 	  	 	5.50	% 	 	 	6.50	% 

 Any increase or decrease in the Applicable Margin resulting from a change in the Total Leverage Ratio shall
become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(a). 

In addition, at any time an Event of Default exists as a result of the Borrower failing to deliver the applicable Compliance Certificate, at
the option of the Lenders having more than 50% of the sum of the outstanding Tranche B-1 Term Loans, the Total Leverage Ratio shall be deemed to be in Pricing Level I for the purposes of determining the
Applicable Margin (but only for so long as such failure continues, after which such ratio and Pricing Level shall be determined based on the then existing Total Leverage Ratio).” 

In the event that any financial statement or compliance certificate delivered pursuant to Sections 6.01 or 6.02 is inaccurate (and this
Agreement remains in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin
applied for such Applicable Period, then (i) the Borrower shall promptly upon obtaining knowledge of such inaccuracy deliver to the Administrative Agent a corrected financial statement and a corrected compliance certificate for such Applicable
Period, (ii) the Applicable Margin shall be determined based on the corrected financial statement and corrected compliance certificate for such Applicable Period and (iii) the Borrower shall promptly pay to the Administrative Agent (for
the account of the Lenders during the Applicable Period or their successors and assigns) the accrued additional interest owing as a result of such increased Applicable Margin for such Applicable Period. This paragraph shall not limit the rights of
the Administrative Agent or the Lenders with respect to Section 2.07 hereof. No Default or Event of Default shall arise or exist as a result of the initial non-payment of such amounts so long as the
Borrower complies with this paragraph.” 

  
 3 

 (d) The definition of “Class” in Section 1.01 of the Credit Agreement is
hereby amended and restated in its entirety as follows: 
 ““Class” commencing on the Fourth Amendment Effective Date,
when used in reference to (a) any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Initial Term Loans, Tranche B-1 Term Loans, Incremental Term Loans, Other Term
Loans or Extended Term Loans, (b) any Commitment, refers to whether such Commitment is a Term Loan Commitment, Other Term Loan Commitment (and, in the case of an Other Term Loan Commitment, the Class of Term Loans to which such commitment
relates), or a commitment in respect of Term Loans to be made pursuant to an Incremental Amendment or an Extension Offer and (c) any Lender, refers to whether such Lender has a Loan or Commitment with respect to a particular Class of Loans
or Commitments. Other Term Loan Commitments, Other Term Loans, Incremental Term Loans and Extended Term Loans that have different terms and conditions, and each tranche of Extended Term Loans, shall be construed to be in different Classes.”

 (e) The definition of “Facility” in Section 1.01 of the Credit Agreement is hereby amended and restated in its
entirety as follows: 
 ““Facility” shall mean the Initial Term Loans, the Tranche
B-1 Term Loans, the Extended Term Loans, the Incremental Term Loans or the Other Term Loans, as the context may require.” 

(f) The definition of “Maturity Date” in Section 1.01 of the Credit Agreement is hereby amended and restated in its
entirety as follows: 
 ““Maturity Date” shall mean, (i) with respect to the Tranche B-1 Term Loans, July 26, 2022; provided, that, if the final maturity date of the Specified Pension Fund Obligations is not extended (including pursuant to any Permitted Refinancing (disregarding clauses
(b) and (c) of the definition of such term) thereof) to October 26, 2022 or later on or prior to November 1, 2019 (such date, the “Early Maturity Date”), then the Maturity Date with respect to the Tranche B-1 Term Loans shall be the Early Maturity Date, (ii) with respect to any tranche of Extended Term Loans, the final maturity date as specified in the applicable Extension Offer accepted by the respective Lender
or Lenders, (iii) with respect to any Other Term Loans, the final maturity date as specified in the applicable Refinancing Amendment and (iv) with respect to any Incremental Term Loans, the final maturity date as specified in the
applicable Incremental Amendment; provided that if any such day is not a Business Day, the applicable Maturity Date shall be the Business Day immediately succeeding such day.” 

(g) The definition of “Other Term Loans” in Section 1.01 of the Credit Agreement is hereby amended and restated in its
entirety as follows: 
 ““Other Term Loans” shall mean one or more Classes of Term Loans that result from a Refinancing
Amendment entered into after the Closing Date, and shall, for the avoidance of doubt, include the Tranche B-1 Term Loans.” 

  
 4 

 (h) The definition of “Term Loans” in Section 1.01 of the Credit Agreement
is hereby amended and restated in its entirety as follows: 
 ““Term Loans” shall mean the Initial Term Loans, Tranche B-1 Term Loans, Extended Term Loans, Incremental Term Loans and Other Term Loans.” 
 (i) The
definition of “Term Loan Commitment” in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

““Term Loan Commitment” shall mean, with respect to each Lender, the commitment, if any, of such Lender to make a Term
Loan hereunder, expressed as an amount representing the maximum principal amount of the Term Loan to be made by such Lender hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.09 and (b) reduced or
increased from time to time pursuant to (i) assignments by or to such Lender pursuant to an Assignment and Acceptance, (ii) an Incremental Amendment, (iii) a Refinancing Amendment or (iv) an Extension. The initial amount of each
Lender’s Term Loan Commitment as of the Fourth Amendment Effective Date is set forth on Schedule I to the Fourth Amendment or, otherwise, in the Assignment and Acceptance, Incremental Amendment or Refinancing Amendment pursuant to which such
Lender shall have assumed its Term Loan Commitment, as the case may be. The initial aggregate amount of the Term Loan Commitments as of the Fourth Amendment Effective Date is $600,000,000.” 

(j) Section 2.11(a) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“The Borrower shall repay to the Administrative Agent for the ratable account of the applicable Term Lenders (i) on the last Business
Day of each March, June, September and December, commencing with the last Business Day of December 2017, an amount equal to 0.75% of the aggregate principal amount of the Tranche B-1 Term Loans outstanding on
the Fourth Amendment Effective Date (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Sections 2.12 and 2.13 or, if applicable, Section 10.04(k)(vii)) and
(ii) on the Maturity Date for such Tranche B-1 Term Loans, the aggregate principal amount of such Tranche B-1 Term Loans outstanding on such date, together in each
case with accrued and unpaid interest on the principal amount to be paid to but excluding the date of such payment. Upon the conversion of Tranche B-1 Term Loans to Extended Term Loans or the refinancing of
Tranche B-1 Term Loans with Credit Agreement Refinancing Indebtedness, all amortization payments shall be reduced ratably by the aggregate principal amount of the Tranche
B-1 Term Loans so converted, refinanced or replaced. The Borrower shall repay Incremental Term Loans, Extended Term Loans and Other Term Loans in such amounts and on such date or dates as shall be specified
therefor in the applicable Incremental Amendment, Extension Offer, Refinancing Amendment or other governing documentation.” 
 ARTICLE
III. Credit Agreement Amendments. Effective as of the date of satisfaction or waiver of the conditions precedent set forth in Article IV below and consummation of the Refinancing, the Credit Agreement is hereby amended as follows: 

(a) The cover page of the Credit Agreement is hereby amended by adding the following new legend: 

  
 5 

 “BEGINNING NO LATER THAN 10 DAYS AFTER THE FOURTH AMENDMENT EFFECTIVE DATE, IF APPLICABLE, A LENDER MAY
OBTAIN THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY OF THE TRANCHE B-1 TERM LOANS BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO THE BORROWER AT THE ADDRESS SET
FORTH IN SECTION 10.01.” 
 (b) Section 1.01 of the Credit Agreement is hereby amended by adding the following definitions in proper
alphabetical sequence: 
 ““Make-Whole Premium” shall mean, with respect to any Tranche
B-1 Term Loans at any date of voluntary prepayment or mandatory assignment thereof from a Non-Consenting Lender prior to the first anniversary of the Fourth Amendment
Effective Date, the excess of (A) the present value at such date of (i) the price at which such Term Loans may be prepaid on the first anniversary of the Fourth Amendment Effective Date (based on a premium equal to 1.00% of the principal
amount to be prepaid) plus (ii) all required remaining scheduled interest payments with respect to such Term Loans through the first anniversary of the Fourth Amendment Effective Date (assuming that the interest rate in effect for the
Tranche B-1 Term Loans on the date of prepayment or assignment would apply throughout such period), computed using a discount rate equal to the Treasury Rate as of such prepayment or assignment date plus 50
basis points, over (B) the principal amount of the Tranche B-1 Term Loans prepaid or assigned.” 

““Net Equity Proceeds” shall mean 50% of the cash proceeds from the issuance or sale by the Borrower (or contributions
in respect) of any Equity Interests issued after the Fourth Amendment Effective Date, net of all taxes paid or reasonably estimated to be payable as a result thereof and fees (including investment banking fees and discounts), commissions, costs and
other expenses, in each case incurred in connection with such issuance or sale, provided, that, if the amount of any estimated taxes exceeds the amount of taxes actually required to be paid in cash, the aggregate amount of such excess shall
constitute Net Proceeds at the time such taxes are actually paid.” 
 ““Treasury Rate” shall mean, with respect
to any date of determination, the yield to maturity at the time of computation of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15(519) that has become
publicly available at least two Business Days prior to such date (or, if such Statistical Release is no longer published, any publicly available source of similar market data)) most nearly equal to the period from such date to the first anniversary
of the Fourth Amendment Effective Date; provided, however, that if the period from such date to the first anniversary of the Fourth Amendment Effective Date is not equal to the constant maturity of a United States Treasury security for
which a weekly average yield is given, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year shall be used.” 

  
 6 

 (c) The definition of “Excluded Real Property” in Section 1.01 of the
Credit Agreement is hereby amended and restated in its entirety as follows: 
 ““Excluded Real Property” shall mean
(a) any Real Property having an appraised value of less than $450,000 (as of December 31, 2013 or, with respect to any such Real Property acquired after (or held by a Person that becomes a Loan Party after) December 31, 2013 as
described in Section 6.11 or 6.13, as applicable, at the time of acquisition (or at the time such Person becomes a Loan Party)), in each case, as reasonably estimated by the Borrower in good faith, provided that the aggregate value of
Real Property excluded pursuant to this clause (a) shall not exceed $4,500,000 and (b) any Real Property for so long as such Real Property secures the obligations of the Borrower under the Contribution Deferral Agreement on a first lien
basis on the Closing Date and is listed on Schedule 1.01(a); and provided further, that in the case of each of clauses (a) and (b), the Borrower (or its counsel) shall designate any such property as an “Excluded Real Property”
by written notice (which may include email or other electronic communication receipt of which is confirmed) to the Administrative Agent (or its counsel) on or prior to the Closing Date or, in the case of clause (a), from time to time
thereafter.” 
 (d) Subclause (a) of the definition of “Net Proceeds” in Section 1.01 of the Credit
Agreement is hereby amended and restated in its entirety as follows: 
 “100% of the cash proceeds actually received by the Borrower or
any wholly owned Restricted Subsidiaries (including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise and including casualty insurance
settlements and condemnation and similar awards, but in each case only as and when received) from any Disposition or Casualty Event, net of (i) attorneys’ fees, accountants’ fees, investment banking fees, survey costs, title insurance
premiums, and related search and recording charges, transfer taxes, deed or mortgage recording taxes, required debt payments and required payments of other obligations that are secured by the applicable asset or property (including without
limitation principal amount, premium or penalty, if any, interest, fees and expenses and other amounts) (other than pursuant to the Loan Documents, the ABL Facility Documentation (other than in respect of ABL Priority Collateral) or any Permitted
Secured Additional Debt), other expenses and brokerage, consultant and other fees actually incurred in connection therewith, (ii) in the case of any Disposition or Casualty Event by a non-wholly owned
Restricted Subsidiary, the pro rata portion of the Net Proceeds thereof (calculated without regard to this clause (ii)) attributable to minority interests and not available for distribution to or for the account of the Borrower or a wholly owned
Restricted Subsidiary as a result thereof, (iii) taxes paid or reasonably estimated to be payable as a result thereof (provided, that if the amount of any such estimated taxes exceeds the amount of taxes actually required to be paid in cash in
respect of such Disposition or Casualty Event, the aggregate amount of such excess shall constitute Net Proceeds at the time such taxes are actually paid), (iv) the amount of any reasonable reserve established in accordance with GAAP against any
adjustment to the sale price or any liabilities (other than any taxes deducted pursuant to clause (i) or (iii) above) (x) related to any of the applicable assets and (y) retained by the Borrower or any of the Restricted Subsidiaries
including, without limitation, pension and other post-employment benefit liabilities and liabilities related to environmental matters or against any indemnification obligations (however, the amount of any subsequent reduction of such reserve (other
than in connection with a payment in respect of any such liability) shall be deemed to be Net Proceeds of such Disposition or Casualty Event occurring on the date of such reduction) and (v) any funded escrow established pursuant to the
documents evidencing any such sale or disposition to secure any indemnification obligations or adjustments to the purchase price 

  
 7 

 
associated with any such sale or disposition; provided, that if no Event of Default exists such proceeds, other than any such proceeds realized from any Disposition of fee owned Real
Property or Sale and Leaseback Transaction (in each case, consummated on or after the Fourth Amendment Effective Date), may be applied by the Borrower or any Restricted Subsidiary to acquire, maintain, develop, construct, improve, upgrade or repair
assets useful in the business of the Borrower or its Restricted Subsidiaries or to make Permitted Acquisitions or any acquisition permitted hereunder of all or substantially all the assets of, or all the Equity Interests (other than directors’
qualifying shares) in, a Person or division or line of business of a Person (or any subsequent investment made in a Person, division or line of business previously acquired), in each case within 270 days of such receipt, and such portion of such
proceeds shall not constitute Net Proceeds except to the extent not, within 270 days of such receipt, so used or contractually committed with a third party to be so used (it being understood that if any portion of such proceeds are not so used
within such 270 day period but within such 270 day period are contractually committed with a third party to be used, then upon the termination of such contract or if such Net Proceeds are not so used within the later of such 270 day period and 180
days from the entry into such contractual commitment, such remaining portion shall constitute Net Proceeds as of the date of such termination or expiry without giving effect to this proviso; it being understood that such proceeds shall constitute
Net Proceeds if there is a Specified Default at the time of a proposed reinvestment unless such proposed reinvestment is made pursuant to a binding commitment with a third party entered into at a time when no Specified Default was continuing);
provided, further, that, other than with respect to proceeds realized from Dispositions of fee owned Real Property or Sale and Leaseback Transactions (in each case, consummated on or after the Fourth Amendment Effective Date), no
proceeds realized in a single transaction or series of related transactions shall constitute Net Proceeds unless the aggregate net proceeds exceeds $7,500,000 in any fiscal year (and thereafter only net cash proceeds in excess of such amount shall
constitute Net Proceeds under this clause (a)),” 
 (e) Section 2.12(d) of the Credit Agreement is hereby amended and restated in its
entirety as follows: 
 “In the event that, (i) the Borrower voluntarily prepays any Tranche
B-1 Term Loans (other than with Net Equity Proceeds) or (ii) a Term Lender is deemed a Non-Consenting Lender and must assign its Tranche B-1 Term Loans pursuant to Section 3.06(a), then in each case, the Borrower shall pay to the Administrative Agent on the date of such voluntary prepayment or assignment, for the ratable account of each
applicable Term Lender a prepayment premium equal (x) to the Make-Whole Premium with respect to the principal amount of the Term Loans being voluntarily prepaid or assigned if such prepayment or assignment occurs prior to the first anniversary
of the Fourth Amendment Effective Date and (y) 1% of the aggregate amount of the applicable Tranche B-1 Term Loans being voluntarily prepaid or assigned if such prepayment or assignment occurs on or after the
first but prior to the second anniversary of the Fourth Amendment Effective Date. For the avoidance of doubt, no prepayment premium shall be payable on or following the second anniversary of the Fourth Amendment Effective Date.” 

  
 8 

 (f) Section 2.13(a)(i) of the Credit Agreement is hereby amended and restated in its entirety as
follows: 
 “Within five (5) Business Days after the earlier of (x) 90 days after the end of each Excess Cash Flow Period and
(y) the date on which financial statements have been delivered pursuant to Section 6.01(a) (commencing with the Excess Cash Flow Period ended December 31, 2014) and the related Compliance Certificate has been delivered pursuant to
Section 6.02(a), the Borrower shall cause to be prepaid an aggregate amount of Term Loans in an amount equal to (A) the Applicable ECF Percentage of Excess Cash Flow, if any, for the Excess Cash Flow Period covered or required to have been
covered by such financial statements minus (B) the sum of (1), except for the prepayment referred to in clause (c) of Article IV of the Fourth Amendment, all voluntary prepayments of principal of Term Loans that are Initial Term Loans or
are pari passu with the Initial Term Loans and Other Applicable Indebtedness during such Excess Cash Flow Period (including the amount of cash used to make all debt buybacks and repurchases pursuant to Section 10.04(k)) and (2) all
voluntary prepayments of loans under the ABL Facility during such fiscal year to the extent accompanied by a corresponding permanent reduction in the commitments under the ABL Facility and, in the case of each of the immediately preceding clauses
(1) and (2), to the extent such prepayments are funded with Internally Generated Cash; provided that, the amount of prepayment required under this Section 2.13(a)(i) shall be reduced to the extent (but only to the extent) that
(x) after giving effect to such prepayment, the sum of (a) the maximum aggregate amount available to be drawn under the ABL Credit Agreement that would not result in a Financial Covenant Trigger Period under the ABL Facility (or any
similar term under any replacement ABL Facility) plus (b) the aggregate amount of cash and Cash Equivalents of the Borrower and its Restricted Subsidiaries (other than any cash or Cash Equivalents appearing on the consolidated balance
sheet of the Borrower as “restricted” (or with a like designation)) would be less than $200,000,000 and (y) the Borrower shall have delivered to the Administrative Agent a certificate of a Responsible Officer certifying as to the
foregoing. Notwithstanding anything to the contrary contained herein, the Borrower shall not be obligated to make any such prepayments described in this Section 2.13(a)(i) (and no Default or Event of Default shall arise as a result of such
nonpayment) to the extent such payment would otherwise constitute a violation or breach of the ABL Credit Agreement in respect of minimum liquidity requirements (as in effect on the date hereof in respect of such restriction, or as otherwise
modified, supplemented or amended in a manner not adverse to the Lenders).” 
 (g) Section 2.13(a) of the Credit Agreement is hereby
amended by the addition of the following subclause (iv): 
 “If the Borrower issues any Equity Interests after the Fourth Amendment
Effective Date, the Borrower shall cause to be prepaid an aggregate principal amount of Term Loans in an amount equal to 50% of all Net Equity Proceeds received therefrom on or prior to the date which is five (5) Business Days after the receipt
by the Borrower of such Net Equity Proceeds; provided, that the Borrower shall only be required to apply up to $30,000,000 in the aggregate of Net Equity Proceeds pursuant to this Section 2.13(a)(iv).” 

(h) Section 2.17(a) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“The Borrower may at any time or from time to time after the Closing Date, by notice to the Administrative Agent (whereupon the
Administrative Agent shall promptly make a 

  
 9 

 
copy of such notice available to each of the Lenders), request one or more additional tranches or additions to an existing tranche of term loans (the “Incremental Term Loans”) in
an amount (when taken together with any Alternative Incremental Indebtedness issued or incurred prior to, or that will be issued or incurred concurrently with, the incurrence of the Incremental Term Loans) not to exceed $250,000,000, so long as the
Senior Secured Leverage Ratio calculated on a Pro Forma Basis shall not be greater than 2.00 to 1.00 (calculated as if such Incremental Term Loans had been outstanding on such last day and as though any unsecured Alternative Incremental Indebtedness
were secured Alternative Incremental Indebtedness), plus (z) the aggregate amount of all voluntary prepayments of Term Loans pursuant to Section 2.12(a) (the “Maximum Incremental Facility Amount”), provided that the
Borrower shall have delivered a certificate of a Responsible Officer certifying that the Maximum Incremental Facility Amount has not been exceeded, together with reasonably detailed calculations with respect thereto (which calculations shall, if
made as of the last day of any fiscal quarter of the Borrower for which the Borrower has not delivered to the Administrative Agent the financial statements and Compliance Certificate required to be delivered by Section 6.01(a) or 6.01(b) and
Section 6.02(a), respectively, be accompanied by a reasonably detailed calculation of Consolidated EBITDA for the relevant period). Each tranche of Incremental Term Loans shall be in an aggregate principal amount that is not less than
$10,000,000 and shall be in an increment of $1,000,000 (provided that such amount may be less than $10,000,000 if such amount represents all remaining availability under the Maximum Incremental Facility Amount).” 

(i) Section 7.01 of the Credit Agreement is hereby amended by the addition of the following clause (gg): 

“Liens on any Real Property described in clause (b) of the definition of Excluded Real Property related to or arising on account of
Indebtedness in respect of Specified Pension Fund Obligations permitted pursuant to Section 7.03(u).” 
 (j)
Section 7.02(p) of the Credit Agreement is hereby amended and restated in its entirety as follows: 
 “other Investments (including for
Permitted Acquisitions) in an aggregate amount outstanding pursuant to this clause (p) at any time not to exceed (x) the greater of (i) $30,000,000 and (ii) 2% of Consolidated Total Assets at the time of such Investment plus, (y) the
portion, if any, of the Cumulative Credit on the date of such election that the Borrower elects to apply to this subclause (y); provided, that with respect to any Investment made pursuant to this Section 7.02(p), (A) no Event of Default
shall have occurred and be continuing or would result from the making of any such Investment and (B) with respect to Investments made in reliance on this subclause (y) (i) other than Investments made in Restricted Subsidiaries organized
under the laws of Canada or Mexico or, in each case, any political subdivision thereof, on a Pro Forma Basis after giving effect thereto the Total Leverage Ratio is equal to or less than 2.00:1.00 or (ii) with respect to Investments in
Restricted Subsidiaries organized under the laws of Canada or Mexico or, in each case, any political subdivision thereof, on a Pro Forma Basis after giving effect thereto the Total Leverage Ratio is equal to or less than 4.00:1.00.” 

  
 10 

 (k) Section 7.03(u) of the Credit Agreement is hereby amended and restated in its entirety as
follows: 
 “(i) Indebtedness in respect of the Specified Pension Fund Obligations and Guarantees thereof, to the extent existing on the
Closing Date, in an aggregate principal amount at any time outstanding not to exceed the amount outstanding as of the Closing Date (and as adjusted from time to time pursuant to any audits), plus any interest paid in kind thereon and any accrued but
unpaid interest thereon, and (ii) any Permitted Refinancing (disregarding clauses (b) and (c) of the definition of such term) thereof;” 

(l) Section 7.06(e) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“the Borrower may make Restricted Payments in an aggregate amount not to exceed (x) the greater of (i) $30,000,000 and (ii) 2% of
Consolidated Total Assets at the time of any such Restricted Payment, plus (y) the portion, if any, of the Cumulative Credit on such date that the Borrower elects to apply to this subclause (y); provided, that with respect to any
Restricted Payment made pursuant to this Section 7.06(e), (A) no Event of Default has occurred and is continuing or would result therefrom and (B) on a Pro Forma Basis after giving effect thereto the Total Leverage Ratio is equal to or
less than 2.00:1.00.” 
 (m) Section 7.10 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“Financial Covenant. The Borrower shall not permit the Total Leverage Ratio as of the last day of any Test Period ending as of the
end of each of its fiscal quarters, commencing with the fiscal quarter ending June 30, 2014, set forth below to exceed the applicable ratio set forth below: 
  

					
	 Test Period Ending
	  	 Maximum Total Ratio
	 
	 June 30, 2014
	  	 	6.00 to 1.0	 
	 September 30, 2014
	  	 	5.25 to 1.0	 
	 December 31, 2014
	  	 	5.25 to 1.0	 
	 March 31, 2015
	  	 	5.00 to 1.0	 
	 June 30, 2015
	  	 	4.75 to 1.0	 
	 September 30, 2015
	  	 	4.50 to 1.0	 
	 December 31, 2015
	  	 	4.25 to 1.0	 
	 March 31, 2016
	  	 	4.00 to 1.0	 
	 June 30, 2016
	  	 	3.75 to 1.0	 
	 September 30, 2016
	  	 	3.75 to 1.0	 
	 December 31, 2016
	  	 	3.50 to 1.0	 
	 March 31, 2017
	  	 	3.85 to 1.0	 
	 June 30, 2017
	  	 	3.85 to 1.0	 
	 September 30, 2017
	  	 	3.75 to 1.0	 
	 December 31, 2017
	  	 	3.50 to 1.0	 
	 March 31, 2018
	  	 	3.50 to 1.0	 
	 June 30, 2018
	  	 	3.50 to 1.0	 
	 September 30, 2018
	  	 	3.50 to 1.0	 
	 December 31, 2018
	  	 	3.50 to 1.0	 
	 March 31, 2019
	  	 	3.25 to 1.0	 

  
 11 

					
	 June 30, 2019
	  	 	3.25 to 1.0	 
	 September 30, 2019
	  	 	3.25 to 1.0	 
	 December 31, 2019
	  	 	3.00 to 1.0	 
	 March 31, 2020
	  	 	3.00 to 1.0	 
	 June 30, 2020
	  	 	3.00 to 1.0	 
	 September 30, 2020
	  	 	2.75 to 1.0	 
	 December 31, 2020
	  	 	2.75 to 1.0	 
	 March 31, 2021
	  	 	2.75 to 1.0	 
	 June 30, 2021 and thereafter
	  	 	2.50 to 1.0”	 

 (n) Section 7.11 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“Capital Expenditures. The Borrower shall not, nor shall it permit any Restricted Subsidiary to, make Capital Expenditures during
any period set forth below in excess of the amount set forth below for such period: 
  

					
	 Period
	  	 Amount
	 
	 2014
	  	$	200,000,000	 
	 2015
	  	$	200,000,000	 
	 2016
	  	$	275,000,000	 
	 2017
	  	$	350,000,000	 
	 2018
	  	$	375,000,000	 
	 2019
	  	$	350,000,000	 
	 2020
	  	$	350,000,000	 
	 2021
	  	$	350,000,000	 
	 2022
	  	$	350,000,000”	 

 (a) Subclause (a)(i) of Section 7.13 of the Credit Agreement is hereby amended and restated in its
entirety as follows: 
 “any Permitted Refinancing permitted in respect thereof (including any Permitted Refinancing set forth in
Section 7.03(u) hereof),” 
 (b) Article 7 of the Credit Agreement is hereby amended by the addition of the following
Section 7.14: 
 “Section 7.14. Prepayments, Etc. of Single-Employer Plans. The Borrower shall not, except to the
extent required by ERISA or other applicable Law, make any early lump sum payment to satisfy any liability under any Single-Employer Plan, in each case, directly from the cash or Cash Equivalents of the Borrower or the Restricted Subsidiaries
(including, for the avoidance of doubt, the proceeds of any borrowing under the ABL Facility).” 

  
 12 

 (c) Article 10 of the Credit Agreement is hereby amended by the addition of the following
Section 10.24: 
 “Section 10.24 Acknowledgement and Consent to Bail-In of EEA
Financial Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among the parties hereto, each party hereto acknowledges that any liability of any Lender which is an
EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be
bound by: 
 (a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising
hereunder which may be payable to it by any Lender party hereto that is an EEA Financial Institution; and 
 (b) the effects of any Bail-in Action on any such liability, including, if applicable: 
 (i) a reduction in full
or in part or cancellation of any such liability; 
 (ii) a conversion of all, or a portion of, such liability into shares or
other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu
of any rights with respect to any such liability under this Agreement or any other Loan Document; or 
 (iii) the variation
of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority. 

The following terms shall for purposes of this Section 10.24 have the meanings set forth below: 

“Bail-In Action” shall mean, as to any EEA Financial Institution, the
exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution. 

“Bail-In Legislation” shall mean with respect to any EEA Member
Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule. 
 “EEA Financial Institution” shall mean
(a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution
described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to
consolidated supervision with its parent. 

  
 13 

 “EEA Member Country” shall mean any member state of the
European Union, Iceland, Liechtenstein and Norway. 
 “EEA Resolution Authority” shall mean any public
administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. 

“EU Bail-In Legislation Schedule” shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time. 

“Write-Down and Conversion Powers” shall mean with respect to any EEA Resolution Authority, the write-down
and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.” 
 ARTICLE IV. Conditions of Effectiveness. The effectiveness
of this Amendment and the obligations of the Tranche B-1 Term Lenders to make the Tranche B-1 Term Loans hereunder are subject to the satisfaction (or waiver) of the
following conditions precedent (the date on which such conditions precedent are satisfied or waived and the Tranche B-1 Term Loans are funded being referred to herein as the “Fourth Amendment Effective
Date”): 
 (a) The Administrative Agent shall have received counterparts of this Amendment duly executed by the Borrower, each
Guarantor, the Administrative Agent, the Tranche B-1 Term Lenders and the Lenders constituting the Required Lenders (immediately after giving effect to the Refinancing). 

(b) The Borrower shall have paid (i) all expenses of the Administrative Agent (including, without limitation, all previously invoiced,
reasonable, out-of-pocket expenses of the Administrative Agent (including, to the extent invoiced, reasonable attorneys’ fees and expenses, in each case to the
extent reimbursable under the terms of the Credit Agreement)) and (ii) all fees earned, due and payable to the Administrative Agent (or its Affiliates) on the Fourth Amendment Effective Date. 

(c) The Borrower shall have made a voluntary prepayment in respect of the Initial Term Loans in an amount equal to $35,189,687.63. 

(d) The Administrative Agent shall have received (i) a customary written legal opinion from Kirkland & Ellis LLP, counsel to the
Loan Parties, and (ii) customary written legal opinions from each local counsel to the Loan Parties, in each case, in form and substance reasonably satisfactory to the Administrative Agent. 

(e) The Administrative Agent shall have received: (i) a copy of each Organization Document of the Borrower and the Guarantors, and, to
the extent applicable, certified as of a recent date by the appropriate governmental official; (ii) signature and incumbency certificates of the officers of such Person executing the Loan Documents to which it

  
 14 

 
is a party as of the Fourth Amendment Effective Date; (iii) resolutions of the board of directors or similar governing body of the Borrower and the Guarantors approving and authorizing the
execution, delivery and performance of this Amendment, certified as of the Fourth Amendment Effective Date by such Loan Party as being in full force and effect without modification or amendment; (iv) a good standing certificate from the
applicable Governmental Authority of the Borrower and the Guarantors’ jurisdiction of incorporation, organization or formation dated a recent date prior to the Fourth Amendment Effective Date. 

(f) The representations and warranties set forth in Article 5 of the Credit Agreement and in each other Loan Document (including this
Amendment) shall be true and correct in all material respects on and as of the Fourth Amendment Effective Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to
an earlier date, in which case they shall be true and correct in all material respects as of such earlier date; provided, that any such representation and warranty that is qualified by “materiality”, “material adverse
effect” or similar language shall be true and correct in all respects (after giving effect to such qualification therein) on and as of the Fourth Amendment Effective Date with the same effect as though made on and as of such date or such
earlier date, as applicable. 
 (g) No Default shall exist or would result from the extension of the Tranche
B-1 Term Loans or from the application of the proceeds therefrom. 
 (h) The Administrative Agent
shall have received for the account of each Tranche B-1 Term Lender, an upfront fee in an amount equal to 1.00% of the aggregate principal amount of the Tranche B-1 Term
Loans of such Tranche B-1 Term Lender on the Fourth Amendment Effective Date. 
 (i) The
Administrative Agent shall have received from the Borrower, in accordance with Section 2.03 of the Credit Agreement, a Request for Credit Extension with respect to the Tranche B-1 Term Loans. 

(j) The Administrative Agent shall have received from the Borrower, in accordance with Section 2.12 of the Credit Agreement, a notice of
prepayment with respect to the prepayment of all outstanding Initial Term Loans on the Fourth Amendment Effective Date. 
 (k) The
Administrative Agent shall have received from the chief financial officer of the Borrower a solvency certificate, dated as of the Fourth Amendment Effective Date, in substantially the form of Exhibit H to the Credit Agreement (but with any reference
to “Transactions” referring to the transactions contemplated hereby). 
 ARTICLE V. Representations and Warranties of the
Borrower. Each of the Borrower and each of the Guarantors party hereto hereby represents and warrants as follows as of the Fourth Amendment Effective Date: 

(a) This Amendment has been duly authorized, executed and delivered by the Borrower and each Guarantor and this Amendment and the Amended
Credit Agreement constitute legal, valid and binding obligations of the Borrower and the Guarantors and are enforceable against the Borrower and the Guarantors in accordance with their terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 

  
 15 

 (b) As of the date hereof, (i) no Default has occurred and is continuing and (ii) the
representations and warranties of the Borrower and the Guarantors set forth in the Amended Credit Agreement and in each other Loan Document are true and correct in all material respects on and as of the date hereof, except to the extent any such
representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty shall have been true and correct in all material respects on and as of such earlier date. 

(c) Immediately after giving effect to the consummation of the transactions contemplated hereby, including the making of the Tranche B-1 Term Loans under this Amendment, and immediately after giving effect to the application of the proceeds of such Tranche B-1 Term Loans, on the Fourth Amendment Effective
Date (a) the fair value of the assets of the Borrower and its Subsidiaries, on a consolidated basis (on a going concern basis), exceeds, on a consolidated basis, their debts and liabilities, subordinated, contingent or otherwise; (b) the
present fair saleable value of the property of the Borrower and its Subsidiaries, on a consolidated basis, is greater than the amount that will be required to pay the probable liability, on a consolidated basis, of their debts and other liabilities,
subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured in the ordinary course of business; (c) the Borrower and its Subsidiaries, on a consolidated basis, are able to pay their debts and
liabilities, subordinated, contingent or otherwise, as such liabilities become absolute and matured; and (d) the Borrower and its Subsidiaries, on a consolidated basis, are not engaged in, and are not about to engage in, business for which they
have unreasonably small capital. For purposes of this paragraph, the amount of any contingent liability at any time shall be computed as the amount that would reasonably be expected to become an actual and matured liability in the ordinary course of
business. 
 ARTICLE VI. Reference to and Effect on the Credit Agreement. 

(a) Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be
a reference to the Amended Credit Agreement. This Amendment is a Refinancing Amendment and shall constitute a Loan Document. 
 (b) Except
as specifically amended above, the Credit Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed. 

(c) Except as otherwise set forth in this Amendment, the Tranche B-1 Term Loans and credit extensions
thereunder shall have the same terms as those applicable to the Initial Term Loans and credit extensions thereunder under the Amended Credit Agreement. 

(d) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the
Administrative Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement or any other documents, instruments and agreements executed and/or delivered in connection therewith. 

  
 16 

 (e) For purposes of determining withholding Taxes imposed under FATCA, from and after the
effective date of this Amendment, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Amended Credit Agreement as not qualifying as a “grandfathered obligation”
within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i). 
 ARTICLE VII.
Acknowledgements. By executing this Amendment, each of the Loan Parties (a) consents to this Amendment and the performance by the Borrower and each of the other Loan Parties of their obligations hereunder, (b) acknowledges that
notwithstanding the execution and delivery of this Amendment, the obligations of each of the Loan Parties under each of the Collateral Documents and each of the other Loan Documents to which such Loan Party is a party, are not impaired or affected
and each such Collateral Document and each such other Loan Document continues in full force and effect, and (c) affirms and ratifies, to the extent it is a party thereto, each Collateral Document and each other Loan Document with respect to all
of the Obligations as expanded or amended hereby. 
 ARTICLE VIII. Mortgage Covenant. Notwithstanding anything to the contrary in the
Loan Documents, the Borrower, Administrative Agent and Required Lenders agree that, not later than the date that is 90 days after the Fourth Amendment Effective Date (or such longer period of time as the Administrative Agent, in its reasonable
discretion, may agree in writing), the Borrower shall (i) execute and deliver to the Collateral Agent, or caused to be executed and delivered to the Collateral Agent, (a) amendments to, or amendments and restatements of the existing
Mortgages, or a new Mortgage, in form reasonably acceptable to the Administrative Agent (and with respect to any property that becomes a Mortgaged Property as a result of this Amendment, a new Mortgage in form reasonably acceptable to the
Administrative Agent) and (b) all such other documents, instruments, agreements and certificates that the Administrative Agent shall reasonably request to secure the Obligations under the Amended Credit Agreement and to grant, preserve,
protect, confirm, continue and maintain in favor of the Collateral Agent, for the benefit of the Secured Parties, a valid and enforceable first-priority security interest (subject only to Liens permitted under Section 7.01 of the Amended Credit
Agreement and as such enforceability may be limited by Debtor Relief Laws and by general principles of equity) in the real property and improvements thereto with respect to each of the Mortgaged Properties in each case to the extent consistent with
the documents, instruments, agreements and certificates delivered in connection with the Closing Date, and (ii) deliver to the Collateral Agent, with respect to each Mortgaged Property, a policy of title insurance reasonably acceptable to the
Administrative Agent (with such endorsements and co-insurance as the Administrative Agent shall reasonably require), opinions of local counsel in form and substance reasonably acceptable to Administrative
Agent with respect to the enforceability of the Mortgages, and such surveys as the Administrative Agent shall reasonably require (provided no survey or survey update shall be required where the applicable property owner may furnish to the title
company issuing the aforementioned title insurance policies such affidavits as such title insurance company will require to provide or continue coverage for matters that an accurate survey would show and policy endorsements related thereto). To the
extent that the Collateral Agent shall accept an amendment or amendment and restatement of an existing Mortgage with respect to a Mortgaged 

  
 17 

 
Property hereunder, then, in lieu of a new title policy, the Borrower may satisfy the requirement for title insurance insuring the lien of such Mortgage with delivery of a date down and
modification endorsement to the existing title insurance policy in favor of the Collateral Agent in form reasonably acceptable to the Administrative Agent and insuring the Collateral Agent’s first-priority lien with respect to such Mortgaged
Property. Additionally, Borrower shall deliver prior to the Fourth Amendment Effective Date a flood hazard determination on the form approved by the Federal Emergency Management Agency (“FEMA”) with respect to each Mortgaged
Property, and, with respect to any Mortgaged Property this is located in a special flood hazard area (as determined by reference to the flood hazard maps maintained or produced by FEMA), a signed copy of such form together with evidence of flood
insurance as required under the Amended Credit Agreement. 
 ARTICLE IX. Governing Law. This Amendment shall be construed in
accordance with and governed by the law of the State of New York. 
 ARTICLE X. Headings. Section headings in this Amendment are
included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose. 
 ARTICLE XI.
Counterparts. This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Signatures
delivered by facsimile or PDF shall have the same force and effect as manual signatures delivered in person. 
 [Signature Pages Follow] 

  
 18 

 IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above
written. 
  

			
	YRC WORLDWIDE INC.
		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President and Treasurer

  

			
	 EXPRESS LANE SERVICE, INC.

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 NEW PENN MOTOR EXPRESS LLC

(F/K/A NEW PENN MOTOR EXPRESS INC.)

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 ROADWAY EXPRESS INTERNATIONAL, INC.

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 ROADWAY LLC

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 ROADWAY NEXT DAY CORPORATION

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 ROADWAY REVERSE LOGISTICS, INC.

		
	By:	 	/s/ Terry Gerrond
	Name:	 	Terry Gerrond
	Title:	 	Vice President, Tax

  
 Signature Page to
Amendment No. 4 
 YRC Worldwide Inc. 

Credit Agreement dated as of February 13, 2014 

 
			
	 USF BESTWAY INC.

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 USF DUGAN INC.

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 USF GLEN MOORE INC.

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 USF HOLLAND LLC

(F/K/A USF HOLLAND INC.)

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 USF REDSTAR LLC

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 USF REDDAWAY INC.

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  
 Signature Page to
Amendment No. 4 
 YRC Worldwide Inc. 

Credit Agreement dated as of February 13, 2014 

 
			
	 YRC ASSOCIATION SOLUTIONS, INC.

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 YRC INC.

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 YRC INTERNATIONAL INVESTMENTS, INC.

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 YRC LOGISTICS SERVICES, INC.

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 YRC MORTGAGES, LLC

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 YRC ENTERPRISE SERVICES, INC.

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  

			
	 YRC REGIONAL TRANSPORTATION, INC.

		
	By:	 	/s/ Mark D. Boehmer
	Name:	 	Mark D. Boehmer
	Title:	 	Vice President

  
 Signature Page to
Amendment No. 4 
 YRC Worldwide Inc. 

Credit Agreement dated as of February 13, 2014 

 
			
	 CREDIT SUISSE AG, CAYMAN ISLANDS
 BRANCH, as Administrative Agent and as Tranche B-1
 Term
Lender

 
			
		
	By:	 	/s/ Mikhail Faybusovich
	Name:	 	Mikhail Faybusovich
	Title:	 	Authorized Signatory
		
	By:	 	/s/ Whitney Gaston
	Name:	 	Whitney Gaston
	Title:	 	Authorized Signatory

  
 Signature Page to
Amendment No. 4 
 YRC Worldwide Inc. 

Credit Agreement dated as of February 13, 2014 

 Schedule I 

Tranche B-1 Term Lender 

 

					
	 Tranche B-1 Term Lender
	  	 Tranche B-1 Term Lender

Commitment Amount
	 
	 Credit Suisse AG, Cayman Islands Branch
	  	$	600,000,000	 
	 TOTAL
	  	$	600,000,000ex4-1.htm

Exhibit 4.1

 

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES. 

 

COMMON STOCK PURCHASE WARRANT 

DIGITAL POWER CORPORATION 

 

 

	
Warrant Shares: [●]
	
Initial Issuance Date: July 27, 2017

 

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, [●] or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the six (6) month anniversary of the Initial Issuance Date (the “Initial Exercise Date”) and on or prior to the close of business on January 26, 2023 (the “Termination Date”) but not thereafter, to subscribe for and purchase from DIGITAL POWER CORPORATION, a California corporation (the “Company”), up to [●] shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). 

 

Section 1.        Intentionally Left Blank. 

 

Section 2.        Exercise. 

 

(a)     Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile or email copy of the Notice of Exercise Form annexed hereto. Within three (3) Trading Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. Notwithstanding anything herein to the contrary (although the Holder may surrender the Warrant to, and receive a replacement Warrant from, the Company), the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one (1) Trading Day of delivery of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof. 

 

 

 

 

 

(b)     Exercise Price. The initial exercise price per share of the Common Stock under this Warrant shall be $0.55, (the “Initial Exercise Price”) subject to adjustment hereunder (as adjusted, the “Exercise Price”), payable, subject to Section 2(c) below, in immediately available funds. 

 

(c)      Cashless Exercise 

 

Notwithstanding anything contained herein to the contrary, if at the time of exercise hereof the Registration Statement is not effective (or the prospectus contained therein is not available for use) for the issuance by the Company to the Holder of all of the Warrant Shares, then the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following formula (a “Cashless Exercise”): 

 

            Net Number = (A x B) - (A x C) 

 

                                                B

 

            For purposes of the foregoing formula:

 

A= the total number of shares with respect to which this Warrant is then being exercised. 

 

B= as applicable: (i) the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the date of the applicable Exercise Notice if such Exercise Notice is (1) both executed and delivered pursuant to Section 1(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 1(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) the Bid Price of the Common Stock as of the time of the Holder’s execution of the applicable Exercise Notice if such Exercise Notice is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter pursuant to Section 1(a) hereof or (iii) the Closing Sale Price of the Common Stock on the date of the applicable Exercise Notice if the date of such Exercise Notice is a Trading Day and such Exercise Notice is both executed and delivered pursuant to Section 1(a) hereof after the close of “regular trading hours” on such Trading Day. 

 

C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise. 

 

	
 
	
(d)
	
Mechanics of Exercise. 

 

(i)       Delivery of Certificates upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the Company’s transfer agent for its Common Stock (the “Transfer Agent”) to the Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder or (B) this Warrant is being exercised via cashless exercise and Rule 144 is available, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid. The Company understands that a delay in the delivery of the Warrant Shares after the Warrant Share Delivery Date could result in economic loss to the Holder. As compensation to the Holder for such loss, the Company agrees to pay (as liquidated damages and not as a penalty) to the Holder for late issuance of Warrant Shares upon exercise of this Warrant the proportionate amount of $10 per Trading Day (increasing to $20 per Trading Day after the fifth (5th) Trading Day) after the Warrant Share Delivery Date for each $1,000 of Exercise Price of Warrant Shares for which this Warrant is exercised which are not timely delivered. The Company shall pay any payments incurred under this Section in immediately available funds upon demand. Furthermore, in addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect delivery of the Warrant Shares by the Warrant Share Delivery Date, the Holder may revoke all or part of the relevant Warrant exercise by delivery of a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective positions immediately prior to the exercise of the relevant portion of this Warrant, except that the liquidated damages described above shall be payable through the date notice of revocation or rescission is given to the Company.

 

 

2

 

 

(ii)      Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 

 

(iii)     Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right, at any time prior to issuance of such Warrant Shares, to rescind such exercise. 

 

(iv)     Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date (subject to receipt of the aggregate exercise price for the applicable exercise (other than in the case of a Cashless Exercise), and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. 

 

 

3

 

 

(v)      No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

(vi)     Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise. 

 

(vii)     Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof. 

 

(e)       Holder’s Exercise Limitations. (i) The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Securities and Exchange Commission (the “Commission”), as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder may decrease the Beneficial Ownership Limitation at any time and the Holder, upon not less than 61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any such increase will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant. 

 

 

4

 

 

Section 3.       Certain Adjustments. 

 

(a)     Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant or pursuant to any of the other Transaction Documents), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification. 

 

(b)     Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). 

 

(c)     Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock (which shall be subject to Section 3(c)), then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such convertible rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above. 

 

 

5

 

 

(d)      Fundamental Transaction. If, at any time while this Warrant is outstanding, the Company enters into a Fundamental Transaction then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant) the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein. 

 

(e)      Intentionally Omitted. 

 

(f)      Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding. 

 

(g)      Notice to Holder.      Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment. 

 

 

6

 

 

(i)       Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, to the extent that such information constitutes material non-public information (as determined in good faith by the Company) the Company shall deliver to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein. 

 

Section 4.       Transfer of Warrant. 

 

(a)     Transferability. Subject to compliance with any applicable securities laws and the provisions of the Convertible Note Purchase Agreement, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. If the 

Holder has assigned this Warrant in full, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date the Holder delivers an assignment form to the Company assigning this Warrant full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued. 

 

(b)     New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto. 

 

(c)     Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. 

 

 

7

 

 

Section 5. Certain Definitions. For purposes of this Warrant, the following terms shall have the following meanings: 

 

(a)     “Affiliate” as applied to any Person, means any other Person directly or indirectly controlling, controlled by, or under common control with, that Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise. For purposes of this definition, a Person shall be deemed to be “controlled by” a Person if such latter Person possesses, directly or indirectly, power to vote 10% or more of the securities having ordinary voting power for the election of directors of such former Person 

 

(b)     “Approved Stock Plan” means any benefit or incentive plan which has been approved by the board of directors of the Company prior to or subsequent to the date hereof pursuant to which shares of Common Stock and options or equivalent equity-linked interests may be issued to any employee, officer, director, consultant for services provided to the Company. 

 

(c)     “Bloomberg” means Bloomberg Financial Markets. 

 

(d)     “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed. 

 

(e)     “Closing Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported in the “pink sheets” by the OTC Markets Group LLC. If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period. 

 

(f)     “Common Stock” means (i) the Company’s shares of Common Stock, no par value per share, and (ii) any share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock. 

 

(g)     “Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock 

 

(h)     “Convertible Securities” shall mean any stock or other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock 

 

 

8

 

 

(i)     “Excluded Issuance” shall mean any (i) shares of Common Stock or options to purchase Common Stock issued to directors, officers, employees or consultants of the Company pursuant to any Approved Stock Plan adopted on or following the Initial Issuance Date, provided that (A) all such issuances (taking into account the shares of Common Stock issuable upon exercise of such options) after the Initial Issuance Date pursuant to this clause (i) do not, in the aggregate, exceed more than 10% of the Common Stock issued and outstanding at the time of such issuance and (B) the exercise price of any such options is not lowered after issuance by subsequent amendment thereof, none of such options are amended subsequent to issuance to increase the number of shares issuable thereunder and none of the terms or conditions of any such options are subsequent to issuance otherwise materially changed in any manner that adversely affects any of the Holders of Warrants; (ii) shares of Common Stock issued upon the conversion or exercise of Convertible Securities or contractual agreements (other than options to purchase Common Stock or other equity incentive awards issued pursuant to an Approved Stock Plan that are covered by clause (i) above) issued prior to the date hereof, provided that the conversion price of any such Convertible Securities (other than options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i) above) is not lowered by subsequent amendment, none of such Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i) above) are subsequently amended to increase the number of shares issuable thereunder and none of the terms or conditions of any such Convertible Securities (other than options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i) above) are otherwise materially changed in any manner that adversely affects any of the Holders; and (iii) the shares of Common Stock issuable upon conversion of the Shares issuable pursuant to the Convertible Note Purchase Agreement or the Warrants. 

 

(j)     “Fundamental Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related transactions, (1) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation) any other person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other person, or (3) allow any other person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the person or persons making or party to, or associated or affiliated with the persons making or party to, such purchase, tender or exchange offer), or (4) consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other person whereby such other person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the other person or other persons making or party to, or associated or affiliated with the other persons making or party to, such stock or share purchase agreement or other business combination), or (5) (I) reorganize, recapitalize or reclassify the Common Stock, (II) effect or consummate a stock combination, reverse stock split or other similar transaction involving the Common Stock or (III) make any public announcement or disclosure with respect to any stock combination, reverse stock split or other similar transaction involving the Common Stock (including, without limitation, any public announcement or disclosure of (x) any potential, possible or actual stock combination, reverse stock split or other similar transaction involving the Common Stock or (y) board or stockholder approval thereof, or the intention of the Company to seek board or stockholder approval of any stock combination, reverse stock split or other similar transaction involving the Common Stock), or (ii) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act and the rules and regulations promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company. 

 

(k)     “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 

 

(l)     “Principal Market” means the NYSE MKT, LLC or the principal securities exchange or securities market on which the Common Stock is then quoted or traded. 

 

(m)     “Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities 

 

(n)     “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule 

 

(o)     “Subsidiary” means any subsidiary of the Company including any direct or indirect subsidiary of the Company formed or acquired after the date hereof. 

 

(p)     “Trading Day” means any day on which the Common Stock are traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock are then traded; provided that “Trading Day” shall not include any day on which the Common Stock are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time). 

 

 

9

 

 

(q)     “Voting Stock” of a person means capital stock of such person of the class or classes pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers, trustees or other similar governing body of such person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency). 

 

(r)     “VWAP” means, for any security as of any date, the dollar volume-weighted average price for such security on the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the principal securities exchange or securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg through its “HP” function set to “weighted average” or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest Closing Bid Price and the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market value as mutually determined by the Company and such Holder. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period 

 

Section 6.        Miscellaneous. 

 

(a)      No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i). 

 

(b)      Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate. 

 

(c)      Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next succeeding Trading Day. 

 

(d)      Authorized Shares. 

 

(i)     The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock 150% of the maximum number of shares for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Principal Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). 

 

 

10

 

 

(ii)     Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant. 

 

(iii)     Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof. 

 

(e)      Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Convertible Note Purchase Agreement. 

 

(f)      Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, or unless exercised in a cashless exercise when Rule 144 is available, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws. 

 

(g)     Non-waiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant or the Convertible Note Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder. 

 

(h)     Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Convertible Note Purchase Agreement. 

 

(i)      Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company. 

 

(j)      Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate. 

 

(k)     Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares. 

 

 

11

 

 

(l)      Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holders of 100% of the then outstanding Warrants issued pursuant to the Convertible Note Purchase Agreement. 

 

(m)     Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant. 

 

(n)     Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant. 

 

(o)     Acceptance. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein. 

 

 

******************** 

 

(Signature Page Follows) 

 

 

12

 

 

IN WITNESS WHEREOF, the parties have executed and delivered this Warrant as of the date first above indicated. 

 

 

	
 
	
DIGITAL POWER CORPORATION
	 
	
 
	
 
	 
	
 
	
 
	 
	
 
	
 
	 
	
 By:
	
 
	 
	
 
	
Name: Amos Kohn
	 
	 	Title: President and CEO	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	[●]	 	 
	 	 	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

 

 

 

 

(a)          NOTICE OF EXERCISE 

 

 

TO:      DIGITAL POWER CORPORATION 

 

 

(1)     The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any. 

 

(2)     Payment shall take the form of (check applicable box): 

 

[  ] in lawful money of the United States; or 

 

[  ] [if permitted] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c). 

 

(3)     Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified below: 

 

           _______________________________ 

 

 

(4)     After giving effect to this Notice of Exercise, the undersigned will not have exceeded the Beneficial Ownership Limitation. 

 

 

(5)     The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended. If the undersigned exercises this Warrant other than by Cashless Exercise, the undersigned hereby makes for the benefit of the Company the representations set forth in the Convertible Note Purchase Agreement. 

 

The Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of a certificate to: 

 

          _______________________________ 

 

          _______________________________ 

    

          _______________________________ 

 

 

[SIGNATURE OF HOLDER] 

 

Name of Investing Entity: _______________________________________________________________________

Signature of Authorized Signatory of Investing Entity: _________________________________________________ 

Name of Authorized Signatory: ___________________________________________________________________ 

Title of Authorized Signatory: ____________________________________________________________________ 

Date: _______________________________________________________________________________________

ASSIGNMENT FORM 

 

(To assign the foregoing warrant, execute this form and supply required information. 

Do not use this form to exercise the warrant.) 

 

(b)          DIGITAL POWER CORPORATION 

 

 

 

FOR VALUE RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to 

 

 

 

 

 

_______________________________________________ whose address is 

 

_______________________________________________________________. 

 

 

 

_______________________________________________________________ 

 

       Dated: ______________, _______ 

 

 

Holder’s Signature:      _____________________________ 

 

Holder’s Address:        _____________________________ 

 

                                        _____________________________ 

 

 

 

Signature Guaranteed: ___________________________________________ 

 

 

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}]]