Document:

WELLS FARGO & COMPANY 8-K

 

Exhibit 4.2

 

[Face of Note]

 

Unless this certificate
is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”),
to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

	CUSIP NO. 95001HAV3	FACE AMOUNT:  $________
	REGISTERED NO. ___	 

 

 

WELLS FARGO FINANCE LLC

 

MEDIUM-TERM NOTE, SERIES A

Fully and Unconditionally Guaranteed by Wells
Fargo & Company

 

Principal at Risk Securities Linked to the
S&P 500® Index

due September 22, 2022

 

WELLS FARGO FINANCE
LLC, a limited liability company duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company,”
which term includes any successor corporation under and as defined in the Indenture hereinafter referred to), for value received,
hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the Maturity Payment Amount (as defined
below), in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public
and private debts, on the Stated Maturity Date. The “Initial Stated Maturity Date” shall be September 22, 2022.
If the Calculation Day (as defined below) is not postponed, the Initial Stated Maturity Date will be the “Stated Maturity
Date.” If the Calculation Day is postponed, the “Stated Maturity Date” shall be the later of (i) the
Initial Stated Maturity Date and (ii) three Business Days (as defined below) after the Calculation Day as postponed. This
Security shall not bear any interest.

Any payments on
this Security at Maturity will be made against presentation of this Security at the office or agency of the Company maintained
for that purpose in the City of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose.

“Face Amount”
shall mean, when used with respect to this Security, the amount set forth on the face of this Security as its “Face Amount.”

    	 	 	 

    	 

    

Determination of Maturity Payment
Amount

The “Maturity
Payment Amount” of this Security will equal:

 

		•	if the Ending Level is greater than the Starting Level: the Face Amount plus the lesser of:

 

	 	 	 

 

(ii)       the
Maximum Return;

 

		•	if the Ending Level is less than or equal to the Starting Level, but greater than or equal to the Threshold Level: the Face
Amount; or

 

		•	if the Ending Level is less than the Threshold Level: the Face Amount minus:

 

	 	 

 

All calculations with respect to the Maturity
Payment Amount will be rounded to the nearest one hundred-thousandth, with five one-millionths rounded upward (e.g., 0.000005 would
be rounded to 0.00001); and the Maturity Payment Amount will be rounded to the nearest cent, with one-half cent rounded upward.

 

“Index”
shall mean the S&P 500® Index.

 

The “Pricing Date”
shall mean September 18, 2019.

 

The “Starting
Level” is 3005.70, the Closing Level of the Index on September 17, 2019.

 

The “Closing Level”
of the Index on any Trading Day means the official closing level of the Index reported by the Index Sponsor on such Trading Day,
as obtained by the Calculation Agent on such Trading Day from the licensed third-party market data vendor contracted by the Calculation
Agent at such time; in particular, taking into account the decimal precision and/or rounding convention employed by such licensed
third-party market data vendor on such date, subject to the provisions set forth below under “Adjustments to the Index,”
“Discontinuance of the Index” and “Market Disruption Events.”

 

The “Ending Level”
will be the Closing Level of the Index on the Calculation Day.

 

The “Threshold
Level” is 2554.845, which is equal to 85% of the Starting Level.

 

The “Participation
Rate” is 150%.

 

The “Maximum Return”
is 30.50% of the Face Amount of this Security.

 

    	 	2	 

    	 

    

“Index Sponsor”
shall mean S&P Dow Jones Indices LLC.

 

“Business Day”
shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions are
authorized or required by law or regulation to close in New York, New York.

 

A “Trading Day”
means a day, as determined by the Calculation Agent, on which (i) the Relevant Stock Exchanges with respect to each security
underlying the Index are scheduled to be open for trading for their respective regular trading sessions and (ii) each Related
Futures or Options Exchange is scheduled to be open for trading for its regular trading session.

 

The “Related Futures
or Options Exchange” for the Index means an exchange or quotation system where trading has a material effect (as determined
by the Calculation Agent) on the overall market for futures or options contracts relating to the Index.

 

The “Relevant
Stock Exchange” for any security underlying the Index means the primary exchange or quotation system on which such security
is traded, as determined by the Calculation Agent.

 

The “Calculation
Day” shall be September 19, 2022. If such day is not a Trading Day, the Calculation Day will be postponed to the next
succeeding Trading Day. The Calculation Day is also subject to postponement due to the occurrence of a Market Disruption Event
(as defined below). If a Market Disruption Event occurs or is continuing with respect to the Index on the Calculation Day, such
Calculation Day will be postponed to the first succeeding Trading Day on which a Market Disruption Event has not occurred and is
not continuing; however, if such first succeeding Trading Day has not occurred as of the eighth Trading Day after the originally
scheduled Calculation Day, that eighth Trading Day shall be deemed to be the Calculation Day. If the Calculation Day has been postponed
eight Trading Days after the originally scheduled Calculation Day and a Market Disruption Event occurs or is continuing on such
eighth Trading Day, the Calculation Agent will determine the Closing Level of the Index on such eighth Trading Day in accordance
with the formula for and method of calculating the Closing Level of the Index last in effect prior to commencement of the Market
Disruption Event, using the closing price (or, with respect to any relevant security, if a Market Disruption Event has occurred
with respect to such security, its good faith estimate of the value of such security at the Scheduled Closing Time of the Relevant
Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock
Exchange) on such date of each security included in the Index. As used herein, “closing price” means, with respect
to any security on any date, the Relevant Stock Exchange traded or quoted price of such security as of the Scheduled Closing Time
of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such
Relevant Stock Exchange.

 

“Calculation Agent
Agreement” shall mean the Calculation Agent Agreement dated as of May 18, 2018 between the Company and the Calculation
Agent, as amended from time to time.

 

“Calculation Agent”
shall mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among other things,
the determination of the

    	 	3	 

    	 

    

Ending Level and the Maturity Payment Amount,
which term shall, unless the context otherwise requires, include its successors under such Calculation Agent Agreement. The initial
Calculation Agent shall be Wells Fargo Securities, LLC. Pursuant to the Calculation Agent Agreement, the Company may appoint a
different Calculation Agent from time to time after the initial issuance of this Security without the consent of the Holder of
this Security and without notifying the Holder of this Security.

 

Adjustments to the Index

 

If at any time the method
of calculating the Index or a Successor Equity Index, or the closing level thereof, is changed in a material respect, or if the
Index or a Successor Equity Index is in any other way modified so that such index does not, in the opinion of the Calculation Agent,
fairly represent the level of such index had those changes or modifications not been made, then the Calculation Agent will, at
the close of business in New York, New York, on each date that the closing level of such index is to be calculated, make such calculations
and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive at a level of an index
comparable to the Index or Successor Equity Index as if those changes or modifications had not been made, and the Calculation Agent
will calculate the closing level of the Index or Successor Equity Index with reference to such index, as so adjusted. Accordingly,
if the method of calculating the Index or Successor Equity Index is modified so that the level of such index is a fraction or a
multiple of what it would have been if it had not been modified (e.g., due to a split or reverse split in such equity index),
then the Calculation Agent will adjust the Index or Successor Equity Index in order to arrive at a level of such index as if it
had not been modified (e.g., as if the split or reverse split had not occurred).

 

Discontinuance of the Index

If the Index Sponsor
discontinues publication of the Index, and the Index Sponsor or another entity publishes a successor or substitute equity index
that the Calculation Agent determines, in its sole discretion, to be comparable to the Index (a “Successor Equity Index”),
then, upon the Calculation Agent’s notification of that determination to the Trustee and the Company, the Calculation Agent
will substitute the Successor Equity Index as calculated by the Index Sponsor or any other entity and calculate the Ending Level
as described above. Upon any selection by the Calculation Agent of a Successor Equity Index, the Company will cause notice to be
given to the Holder of this Security.

In the event that
the Index Sponsor discontinues publication of the Index prior to, and the discontinuance is continuing on, the Calculation Day
and the Calculation Agent determines that no Successor Equity Index is available at such time, the Calculation Agent will calculate
a substitute Closing Level for the Index in accordance with the formula for and method of calculating the Index last in effect
prior to the discontinuance, but using only those securities that comprised the Index immediately prior to that discontinuance.
If a Successor Equity Index is selected or the Calculation Agent calculates a level as a substitute for the Index, the Successor
Equity Index or level will be used as a substitute for the Index for all purposes, including the purpose of determining whether
a Market Disruption Event exists.

    	 	4	 

    	 

    

If on the Calculation
Day the Index Sponsor fails to calculate and announce the level of the Index, the Calculation Agent will calculate a substitute
Closing Level of the Index in accordance with the formula for and method of calculating the Index last in effect prior to the failure,
but using only those securities that comprised the Index immediately prior to that failure; provided that, if a Market Disruption
Event occurs or is continuing on such day, then the provisions set forth above under the definition of “Calculation Day”
shall apply in lieu of the foregoing.

Market Disruption Events 

A “Market Disruption
Event” means any of the following events as determined by the Calculation Agent in its sole discretion:

 

		(A)	The occurrence or existence of a material suspension of or limitation imposed on trading by the
Relevant Stock Exchanges or otherwise relating to securities which then comprise 20% or more of the level of the Index or any Successor
Equity Index at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of movements
in price exceeding limits permitted by those Relevant Stock Exchanges or otherwise.

		(B)	The occurrence or existence of a material suspension of or limitation imposed on trading by any
Related Futures or Options Exchange or otherwise in futures or options contracts relating to the Index or any Successor Equity
Index on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that
day, whether by reason of movements in price exceeding limits permitted by the Related Futures or Options Exchange or otherwise.

		(C)	The occurrence or existence of any event, other than an early closure, that materially disrupts
or impairs the ability of market participants in general to effect transactions in, or obtain market values for, securities that
then comprise 20% or more of the level of the Index or any Successor Equity Index on their Relevant Stock Exchanges at any time
during the one-hour period that ends at the Close of Trading on that day.

		(D)	The occurrence or existence of any event, other than an early closure, that materially disrupts
or impairs the ability of market participants in general to effect transactions in, or obtain market values for, futures or options
contracts relating to the Index or any Successor Equity Index on any Related Futures or Options Exchange at any time during the
one-hour period that ends at the Close of Trading on that day.

		(E)	The closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities that
then comprise 20% or more of the level of the Index or any Successor Equity Index are traded or any Related Futures or Options
Exchange prior to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant Stock Exchange or Related
Futures or Options Exchange, as

    	 	5	 

    	 

    

applicable, at least one hour
prior to the earlier of (1) the actual closing time for the regular trading session on such Relevant Stock Exchange or Related
Futures or Options Exchange, as applicable, and (2) the submission deadline for orders to be entered into the Relevant Stock
Exchange or Related Futures or Options Exchange, as applicable, system for execution at such actual closing time on that day.

		(F)	The Relevant Stock Exchange for any security underlying the Index or Successor Equity Index or
any Related Futures or Options Exchange fails to open for trading during its regular trading session.

For purposes of
determining whether a Market Disruption Event has occurred:

		(1)	the relevant percentage contribution of a security to the level of the Index or any Successor Equity
Index will be based on a comparison of (x) the portion of the level of such Index attributable to that security and (y) the
overall level of the Index or Successor Equity Index, in each case immediately before the occurrence of the Market Disruption Event;

		(2)	the “Close of Trading” on any Trading Day for the Index or any Successor Equity
Index means the Scheduled Closing Time of the Relevant Stock Exchanges with respect to the securities underlying the Index or Successor
Equity Index on such Trading Day; provided that, if the actual closing time of the regular trading session of any such Relevant
Stock Exchange is earlier than its Scheduled Closing Time on such Trading Day, then (x) for purposes of clauses (A) and (C) of
the definition of “Market Disruption Event” above, with respect to any security underlying the Index or Successor Equity
Index for which such Relevant Stock Exchange is its Relevant Stock Exchange, the “Close of Trading” means such actual
closing time and (y) for purposes of clauses (B) and (D) of the definition of “Market Disruption Event” above, with
respect to any futures or options contract relating to the Index or Successor Equity Index, the “close of trading”
means the latest actual closing time of the regular trading session of any of the Relevant Stock Exchanges, but in no event later
than the Scheduled Closing Time of the Relevant Stock Exchanges;

		(3)	the “Scheduled Closing Time” of any Relevant Stock Exchange or Related Futures
or Options Exchange on any Trading Day for the Index or any Successor Equity Index means the scheduled weekday closing time of
such Relevant Stock Exchange or Related Futures or Options Exchange on such Trading Day, without regard to after hours or any other
trading outside the regular trading session hours; and

		(4)	an “Exchange Business Day” means any Trading Day for the Index or any Successor
Equity Index on which each Relevant Stock Exchange for the securities underlying the Index or any Successor Equity Index and each
Related Futures or Options Exchange are open for trading during their respective regular

    	 	6	 

    	 

    

trading sessions, notwithstanding
any such Relevant Stock Exchange or Related Futures or Options Exchange closing prior to its Scheduled Closing Time.

Calculation Agent

The Calculation
Agent will determine the Maturity Payment Amount and the Ending Level. In addition, the Calculation Agent will (i) determine if
adjustments are required to the Closing Level of the Index under the circumstances described in this Security, (ii) if publication
of the Index is discontinued, select a Successor Equity Index or, if no Successor Equity Index is available, determine the Closing
Level of the Index under the circumstances described in this Security, and (iii) determine whether a Market Disruption Event or
non-Trading Day has occurred.

The Company covenants
that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which shall be a broker-dealer,
bank or other financial institution) with respect to this Security.

All determinations
made by the Calculation Agent with respect to this Security will be at the sole discretion of the Calculation Agent and, in the
absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security.

Tax Considerations

The Company agrees,
and by acceptance of a beneficial ownership interest in this Security each Holder of this Security will be deemed to have agreed
(in the absence of a statutory, regulatory, administrative or judicial ruling to the contrary), for United States federal income
tax purposes to characterize and treat this Security as a prepaid derivative contract that is an “open transaction.”

Redemption and Repayment

This Security is
not subject to redemption at the option of the Company or repayment at the option of the Holder hereof prior to September 22, 2022.
This Security is not entitled to any sinking fund.

Acceleration

If an Event of Default,
as defined in the Indenture, with respect to this Security shall occur and be continuing, the Maturity Payment Amount (calculated
as set forth in the next sentence) of this Security may be declared due and payable in the manner and with the effect provided
in the Indenture. The amount payable to the Holder hereof upon any acceleration permitted under the Indenture will be equal to
the Maturity Payment Amount hereof calculated as provided herein as though the date of acceleration was the Calculation Day.

__________________

Reference is hereby
made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

    	 	7	 

    	 

    

Unless the certificate
of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature or its duly authorized
agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

 

[The remainder of this page has been
left intentionally blank]

    	 	8	 

    	 

    

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

DATED: 
 

	
 

	
WELLS FARGO FINANCE LLC

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
Its:
	 

	
 

	
Attest:

	
 

	
 

	
 

	
 

	
 

	
 

	
Its:  

TRUSTEE’S
CERTIFICATE OF

AUTHENTICATION

This is one of the Securities of the

series designated therein described

in the within-mentioned Indenture. 

	
CITIBANK, N.A.,

	
 

	
 

	
as Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
Authorized Signature

	
 

	
 

	
 

	
 

	
 

	
OR

	
 

	
 

	
 

	
 

	
WELLS FARGO BANK, N.A., 

	
 

	
 

	
as Authenticating Agent for the Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
Authorized Signature

	
 

 

    	 	9	 

    	 

    

[Reverse of Note]

 

 

WELLS FARGO FINANCE LLC

 

MEDIUM-TERM NOTE, SERIES A

Fully and Unconditionally Guaranteed by Wells
Fargo & Company

 

Principal at Risk Securities Linked to the
S&P 500® Index

due September 22, 2022

 

This Security is
one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to
be issued in one or more series under an indenture dated as of April 25, 2018, as amended or supplemented from time to time
(herein called the “Indenture”), among the Company, as issuer, Wells Fargo & Company, as guarantor
(the “Guarantor”) and Citibank, N.A., as trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantor,
the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series of the Securities designated as Medium-Term Notes, Series A, of the Company.
The amount payable on the Securities of this series may be determined by reference to the performance of one or more equity-, commodity-
or currency-based indices, exchange traded funds, securities, commodities, currencies, statistical measures of economic or financial
performance, or a basket comprised of two or more of the foregoing, or any other market measure or may bear interest at a fixed
rate or a floating rate. The Securities of this series may mature at different times, be redeemable at different times or not at
all, be repayable at the option of the Holder at different times or not at all and be denominated in different currencies.

The Securities are
issuable only in registered form without coupons and will be either (a) book-entry securities represented by one or more
Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities issued to and
registered in the names of, the beneficial owners or their nominees.

The Company agrees,
to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of interest against
a Holder of this Security.

Guarantee 

The Securities of
this series are fully and unconditionally guaranteed by the Guarantor as and to the extent set forth in the Indenture.

Modification and Waivers 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the Guarantor and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time
by the

    	 	10	 

    	 

    

Company, the Guarantor and the Trustee
with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be
affected, acting together as a class. The Indenture also contains provisions permitting the Holders of a majority in principal
amount of the Securities of all series at the time Outstanding affected by certain provisions of the Indenture, acting together
as a class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company or the Guarantor with
those provisions of the Indenture. Certain past defaults under the Indenture and their consequences may be waived under the Indenture
by the Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders
of all Securities of such series. Solely for the purpose of determining whether any consent, waiver, notice or other action or
Act to be taken or given by the Holders of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding
Securities in the requisite aggregate principal amount, the principal amount of this Security will be deemed to be equal to the
amount set forth on the face hereof as the “Face Amount” hereof. Any such consent or waiver by the Holder of this Security
shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.

Defeasance

Section 403
and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating
to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon
compliance by the Company or the Guarantor with certain conditions set forth therein, shall not apply to this Security. The remaining
provisions of Section 401 of the Indenture shall apply to this Security.

Authorized Denominations

This Security is
issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which is an integral
multiple of $1,000.

Registration of Transfer

Upon due presentment
for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis, Minnesota, a new
Security or Securities of this series, with the same terms as this Security, in authorized denominations for an equal aggregate
Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject to the limitations provided
therein and to the limitations described below, without charge except for any tax or other governmental charge imposed in connection
therewith.

This Security is
exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that it is unwilling
or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency registered
under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days after the
Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines that
this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z) an Event
of Default with respect

    	 	11	 

    	 

    

to the Securities represented hereby
has occurred and is continuing. If this Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for
definitive Securities in registered form, having the same date of issuance, Stated Maturity Date and other terms and of authorized
denominations aggregating a like amount.

This Security may
not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a
nominee of such successor. Except as provided above, owners of beneficial interests in this Global Security will not be entitled
to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under
the Indenture.

Prior to due presentment
of this Security for registration of transfer, the Company, the Guarantor, the Trustee and any agent of the Company, the Guarantor
or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or
not this Security be overdue, and neither the Company, the Guarantor, the Trustee nor any such agent shall be affected by notice
to the contrary.

Obligation of the Company Absolute

No reference herein
to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the Maturity Payment Amount at the times, place and rate, and in the coin or currency, herein
prescribed, except as otherwise provided in this Security.

No Personal Recourse

No recourse shall
be had for the payment of the Maturity Payment Amount, or for any claim based hereon, or otherwise in respect hereof, or based
on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or director,
as such, past, present or future, of the Company or any successor corporation or of the Guarantor or any successor corporation,
whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise,
all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and
released.

Defined Terms

All terms used in
this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless otherwise defined
in this Security.

Governing Law

This Security shall
be governed by and construed in accordance with the law of the State of New York, without regard to principles of conflicts of
laws.

    	 	12	 

    	 

    

ABBREVIATIONS

 

 

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

	
TEN COM

	
--

	
as tenants in common

	
 

	
 

	
 

	
 

	
 

	
TEN ENT

	
--

	
as tenants by the entireties

	
 

	
 

	
 

	
 

	
 

	
JT TEN

	
--

	
as joint tenants with right 

of survivorship and not 

as tenants in common

	
 

 

	UNIF
                                         GIFT MIN ACT

	--

	 

	Custodian

	 

	 

	 

	(Cust)

	 

	(Minor)

	
Under Uniform Gifts to Minors Act

	
 

	
 

	
 

	
(State)

	
 

Additional
abbreviations may also be used though not in the above list. 

FOR
VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto 

	
Please Insert Social Security or

	
 

	
Other Identifying Number of Assignee

	
 

	
 

	
 

	
 

	
 

 

	
 

	
 

	
 

(Please
print or type name and address including postal zip code of Assignee) 

    	 	13	 

    	 

    

the within Security of WELLS FARGO FINANCE
LLC and does hereby irrevocably constitute and appoint __________________ attorney to transfer the said Security on the books of
the Company, with full power of substitution in the premises.

 

 

Dated: _________________________

 

	 	 
	 	 
	 	 
	 	 

 

 

 

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

 

 

 

    	 	14EX-10.1

 Exhibit 10.1 

VOTING AGREEMENT 
 THIS
VOTING AGREEMENT (this “Agreement”) is made and entered into as of September 22, 2019, by and among Argonaut Intermediate, Inc., a Delaware corporation (“Parent”), Arotech Corporation, a Delaware corporation
(the “Company”), and each of the undersigned stockholders of the Company (each, a “Holder”). 
 RECITALS

 Pursuant to an Agreement and Plan of Merger, dated as of the date hereof (the “Merger Agreement”), by and among
Parent, Argonaut Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Parent (“Merger Sub”), and the Company, Merger Sub is merging with and into the Company (the
“Merger”) and the Company, as the surviving corporation of the Merger, will thereby become a wholly-owned subsidiary of Parent. Concurrently with the execution and delivery of the Merger
Agreement and as a condition and inducement to Parent and Merger Sub to enter into the Merger Agreement, Parent has required that Holder enter into this Agreement. Holder is the beneficial owner (within the meaning of Rule 13d-3 of the Exchange Act) of such number of shares of the outstanding common stock, par value $0.01 per share, of the Company as is indicated beneath Holder’s signature on the last page of this Agreement (the
“Shares”). 
 Capitalized terms used herein but not defined shall have the meanings ascribed to them in the Merger
Agreement. 
 AGREEMENT 

The parties agree as follows: 

1.    Agreement to Retain Shares. 

(a)    Transfer. During the period beginning on the date hereof and ending on the earlier to occur of (i) the
Effective Time and (ii) the Expiration Date (as defined in Section 4), (1) except as contemplated by the Merger Agreement, and except as provided in Section 1(b), Holder agrees not to,
directly or indirectly, sell, transfer, exchange or otherwise dispose of (including by merger, consolidation or otherwise by operation of law) the Shares or any New Shares (as defined below), and (2) Holder agrees not to, directly or
indirectly, grant any proxies or powers of attorney, deposit any of the Shares into a voting trust or enter into a voting agreement with respect to any of the Shares, or enter into any agreement or arrangement providing for any of the actions
described in this clause (2) (other than as required to comply with Section 2(a)). 

(b)    Permitted Transfers. Section 1(a) shall not prohibit a transfer of Shares or New
Shares (as defined below) by Holder (i) for the net settlement of Holder’s restricted stock units (including performance-based restricted stock units) settled in shares of common stock of the Company (to pay any tax withholding
obligations), (ii) for the receipt upon settlement of Holder’s restricted stock units, and the sale of a sufficient number of such shares of common stock of the Company acquired upon settlement of such restricted stock units as would generate
sales proceeds sufficient to pay the taxes payable by Holder as a result of such settlement, 

 
(iii) made pursuant to, and in compliance with, a written plan that meets the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934,
as amended, established prior to a date hereof, (iv) to any family member or trust for the benefit of any family member, (v) to any stockholder, member or partner of any Holder which is an entity, (vi) to any Affiliate of Holder,
(vii) to any person or entity if and to the extent required by any non-consensual Order, by divorce decree or by will, intestacy or other similar applicable Law or (viii) to the extent necessary to
generate proceeds sufficient to pay taxes payable by Holder as a result of the vesting of, or lapse of restrictions with respect to, restricted Shares and/or restricted New Shares, so long as, in the case of the foregoing clauses (iv), (v), (vi) and
(vii), the assignee or transferee agrees to be bound by the terms of this Agreement and executes and delivers to the parties hereto a written consent and joinder memorializing such agreement. During the term of this Agreement, the Company will
not register or otherwise recognize the transfer (book-entry or otherwise) of any Shares or any certificate or uncertificated interest representing any of Holder’s Shares, except as permitted by, and in accordance with, this
Section 1(b). 
 (c)    New Shares. Holder agrees that any shares of common stock of
the Company that Holder purchases or with respect to which Holder otherwise acquires record or beneficial ownership after the date of this Agreement and prior to the earlier to occur of (i) the Effective Time and (ii) the Expiration
Date (“New Shares”) shall be subject to the terms and conditions of this Agreement to the same extent as if they comprised the Shares. 

2.    Agreement to Vote Shares. 

(a)    Until the earlier to occur of the Effective Time and the Expiration Date, at every meeting of the stockholders of
the Company called with respect to any of the following, and at every adjournment thereof, and on every action or approval by written consent of the stockholders of the Company with respect to any of the following, Holder shall appear at such
meeting (in person or by proxy) and shall vote or consent the Shares and any New Shares (i) in favor of adoption of the Merger Agreement and (ii) against any Acquisition Proposal (the “Covered Proposal”). This Agreement is
intended to bind Holder as a stockholder of the Company and only with respect to the Covered Proposal. Except as expressly set forth in clauses (i) and (ii) of this Section 2, Holder shall not be restricted from voting
in favor of, against or abstaining with respect to any other matter presented to the stockholders of the Company. Until the earlier to occur of the Effective Time and the Expiration Date, Holder covenants and agrees not to enter into any agreement
or understanding with any Person with respect to voting of its Shares on any Covered Proposal which conflicts with the terms of this Agreement. 

(b)    Holder further agrees that, until the earlier to occur of the Effective Time and the Expiration Date, Holder will
not, and will not permit any entity under Holder’s control to, (A) solicit proxies or become a “participant” in a “solicitation” (as such terms are defined in Rule 14A under the Exchange Act) in opposition to the
Covered Proposal, (B) initiate a stockholders’ vote with respect to an Acquisition Proposal, (C) become a member of a “group” (as such term is used in Section 13(d) of the Exchange Act) with respect to any voting
securities of the Company with respect to an Acquisition Proposal, or (D) take any action that the Company is prohibited from taking pursuant to Section 5.5 of the Merger Agreement. 

  
 -2- 

 3.    Representations, Warranties and Covenants of Holder. Holder
hereby represents and warrants to Parent that (i) Holder is the beneficial owner of the Shares, which, at the date of this Agreement and at all times up until the earlier to occur of (A) the Effective Time and (B) the Expiration
Date, will be free and clear of any Liens or other encumbrances (other than those created by this Agreement or applicable Law), (ii) as of the date hereof, Holder does not own of record or beneficially any shares of outstanding capital stock of the
Company other than the Shares (excluding shares as to which Holder currently disclaims beneficial ownership in accordance with applicable Law), (iii) Holder has the legal capacity, power and authority to enter into and perform all of
Holder’s obligations under this Agreement and (iv) this Agreement has been duly and validly executed and delivered by Holder and constitutes a valid and binding agreement of Holder, enforceable against Holder in accordance with its terms,
subject to (a) laws of general application relating to bankruptcy, insolvency and the relief of debtors and (b) rules of law governing specific performance, injunctive relief and other equitable remedies. 

4.    Termination. This Agreement shall terminate automatically and shall have no further force and effect as of
the termination of the Merger Agreement in accordance with the terms and provisions thereof (the “Expiration Date”). 

5.    Fiduciary Duties. Notwithstanding anything in this Agreement to the contrary: (i) Holder makes no
agreement or understanding herein in any capacity other than solely in Holder’s capacity as a beneficial owner of the Shares and (ii) nothing in this Agreement shall be construed to limit or affect Holder, or any Affiliate or designee of
Holder, in any other capacity (including as an officer of the Company or as a member of the Company Board in acting in his or her capacity as an officer or director of the Company) or in exercising his or her fiduciary duties and responsibilities as
an officer of the Company or as a member of the Company Board. 
 6.    Miscellaneous. 

(a)    Amendments and Waivers. Any term of this Agreement may be amended or waived with the written consent of the
parties hereto or their respective successors and assigns. Any amendment or waiver effected in accordance with this Section 6(a) shall be binding upon the parties and their respective successors and assigns. 

(b)    Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware, without giving effect to principles of conflicts of law thereof. Each of the parties hereto (i) consents to submit to the personal jurisdiction of the Court of Chancery of the State of Delaware (or, only if the Court of
Chancery of the State of Delaware declines to accept or does not have jurisdiction over a particular matter, any state or federal court within the State of Delaware) in the event any dispute arises out of this Agreement, (ii) agrees that it
shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court and (iii) agrees that it shall not bring any action relating to this Agreement in any court other than the Court of Chancery
of the State of Delaware (or, only if the Court of Chancery of the State of Delaware declines to accept or does not have jurisdiction over a particular matter, any state or federal court within the State of Delaware). 

  
 -3- 

 (c)    Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. 

(d)    Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are
not to be considered in construing or interpreting this Agreement. 
 (e)    Notices. Any notice required or
permitted by this Agreement shall be in writing and shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight delivery service, confirmed email or confirmed facsimile, or 72 hours after being deposited in the
regular mail as certified or registered mail with postage prepaid, if such notice is addressed to the party to be notified at such party’s address, email address or facsimile number as set forth below, or as subsequently modified by written
notice. 
 (f)    Severability. If one or more provisions of this Agreement are held to be unenforceable under
applicable Law, the parties agree to renegotiate such provision in good faith, in order to maintain the economic position enjoyed by each party as close as possible to that under the provision rendered unenforceable. In the event that the parties
cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision were so excluded
and (iii) the balance of the Agreement shall be enforceable in accordance with its terms. 
 (g)    No Ownership
Interest. Nothing contained in this Agreement shall be deemed to vest in Parent or any of its Affiliates any direct or indirect ownership or incidence of ownership of or with respect to any Shares or New Shares. All rights, ownership and
economic benefit of and relating to the Shares and any New Shares shall remain vested in and belong to Holder, and Parent shall have no authority to manage, direct, superintend, restrict, regulate, govern or administer any of the policies or
operations of the Company or exercise any power or authority with respect to Holder in the voting of any Shares or New Shares, except as specifically provided herein and in the Merger Agreement. 

(h)    Specific Performance. Each of the parties hereto recognizes and acknowledges that a breach of any covenants
or agreements contained in this Agreement will cause Parent and Merger Sub to sustain damages for which they would not have an adequate remedy at law for money damages, and therefore each of the parties hereto agrees that in the event of any such
breach Parent shall be entitled to the remedy of specific performance of such covenants and agreements and injunctive and other equitable relief in addition to any other remedy to which they may be entitled, at law or in equity. 

[SIGNATURE PAGE FOLLOWS] 

  
 -4- 

 IN WITNESS WHEREOF, the parties have caused this Voting Agreement to be duly executed
on the date first above written. 
  

			
	ARGONAUT INTERMEDIATE, INC.

 
			
		
	By:	 	 /s/ Noah Blitzer

	Name:	 	Noah Blitzer
	Title:	 	Vice President and Secretary

 
			
		
	Address:	 	
	555 Theodore Fremd Avenue, Suite A-210
	Rye, NY 10580
	Telephone:  	 	914-925-9600
	Facsimile:	 	914-925-9699
	Attention:	 	Noah Blitzer

 
			
	AROTECH CORPORATION

 
			
		
	By:	 	 /s/ Dean M. Krutty

	Name:	 	Dean M. Krutty
	Title:	 	President & CEO

 
			
		
	Address:	 	
	Arotech Corporation
	1229 Oak Valley Drive
	Ann Arbor, Michigan 48108
	Attention: Dean Krutty
	Email: krutty@arotechusa.com

 
	
	HOLDERS:
	
	 /s/ Jon B. Kutler

	JON B. KUTLER
	
	Holder’s Address for Notice:
	
	 68-1052 Honoka’ope Way

	 Kamuela, Hawaii 96743

	  

	Email: jkutler@admiraltypartners.com
	Attention: Jon B. Kutler

  

															
	Shares owned of record:	  
	  				    	Beneficially owned shares:	  

					
	 Class of Shares
	  	Number	 	  	 	 	    	 Class of Shares
	  	Number	 
	 Common Stock
	  	 	83,034	 	  				    	Common Stock	  	 	1,804,863	 

 
	
	ADMIRALTY PARTNERS, INC.
	
	 /s/ Jon B. Kutler

	By: Jon B. Kutler
	Its: Director
	
	Holder’s Address for Notice:
	
	 68-1052 Honoka’ope Way

	 Kamuela, Hawaii 96743

	  

	Email: jkutler@admiraltypartners.com
	Attention: Jon B. Kutler

  

															
	Shares owned of record:	  
	  				  	Beneficially owned shares:	  

					
	 Class of Shares
	  	Number	 	  	 	 	  	 Class of Shares
	  	Number	 
	 Common Stock
	  	 	1,579,984	 	  				  	Common Stock	  	 	0	 

 
	
	THE CAROLINE L. KUTLER 2008 TRUST
	
	 /s/ Jon B. Kutler

	By: Jon B. Kutler
	Its: Trustee
	
	Holder’s Address for Notice:
	
	 68-1052 Honoka’ope Way

	 Kamuela, Hawaii 96743

	  

	Email: jkutler@admiraltypartners.com
	Attention: Jon B. Kutler

  

															
	Shares owned of record:	  
	  				  	Beneficially owned shares:	  

					
	 Class of Shares
	  	Number	 	  	 	 	  	 Class of Shares
	  	Number	 
	 Common Stock
	  	 	124,179	 	  				  	Common Stock	  	 	0	 

 
	
	JON AND SARA KUTLER FAMILY TRUST
	
	 /s/ Jon B. Kutler

	By: Jon B. Kutler
	Its: Trustee
	
	
	Holder’s Address for Notice:
	
	
	 68-1052 Honoka’ope Way

	 Kamuela, Hawaii 96743

	  

	Email: jkutler@admiraltypartners.com
	Attention: Jon B. Kutler

  

															
	Shares owned of record:	  
	  				  	Beneficially owned shares:	  

					
	 Class of Shares
	  	Number	 	  	 	 	  	 Class of Shares
	  	Number	 
	 Common Stock
	  	 	100,700	 	  				  	Common Stock	  	 	0

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