Document:

Exhibit 10.40

    

     

      

    
       

      

      	
              Banc of America Leasing & Capital, LLC

            	
              Master Lease Agreement Number: 48869-90000

            

       

      

      
        This Master Lease Agreement, dated as of July 25, 2019, (this “Agreement”), is by and between Banc of America Leasing & Capital. LLC,
            a Delaware limited liability Company having an office at 3400 Pawtucket Avenue, Riverside, RI 02915 (together with its successors and assigns, “Lessor”), and Photronics, Inc. as “Lessee”, a corporation existing under the laws of the state of Connecticut, and having its chief executive office and any organizational identification number as specified with its execution of this Agreement below. Certain defined terms used herein are Identified in bold face and quotation marks throughout this Agreement and in Section 15 below. This Agreement sets forth the terms and conditions for the lease of Equipment between Lessor and Lessee pursuant to one or more “Schedules”
            incorporating by reference the terms of this Agreement,
            together with all exhibits, addenda, schedules, certificates, riders and other documents and instruments executed and delivered in connection with such Schedule (as amended from time to time, a “Lease”). Each Lease constitutes a
            separate, distinct and independent lease of Equipment and contractual

          obligation of Lessee. This Agreement is not an agreement or commitment by Lessor or Lessee to enter into any future Leases or other agreements, or for Lessor to provide any

            financial accommodations to Lessee, Lessor shall not be obligated under any circumstances to advance any progress payments other funds for any Equipment or to enter
          into any Lease if there shall have occurred a material adverse
          change in the operations, business, properties or condition, financial or otherwise, of Lessee or any Guarantor. This Agreement and each Lease

          shall become effective only upon Lessor’s acceptance and execution thereof at its corporate offices set forth
          above.

         

        1.       Lease; Term; Non-lnterference. Lessor
            and Lessee agree to lease Equipment described in Schedules entered into from time to time, together with all other
            documentation from Lessee required by Lessor with respect to
            such Lease. Upon receipt of any item or group of Equipment intended for Lease hereunder, Lessee shall
            execute a Schedule, with all information fully completed and irrevocably accepting such Equipment for Lease, and deliver such Schedule to Lessor for its
          review and acceptance. Provided no Event of Default has occurred,

            Lessee shall be  entitled to use and possess the Equipment during the original Lease Term provided in the Schedule (together with any extensions or renewals thereof in accordance with terms of the Lease, the “Lease Term”) free from interference by any person claiming by, through or under Lessor.

         

        2.       Rent.  “Rent” shall be payable to Lessor during the Lease Term in the amounts and at the times provided in the Schedule. If any Rent or other amount payable hereunder is not paid within 10 days of its due date, Lessee shall pay an administrative late charge of 5% of the amount not timely paid. All Rent and other amounts payable under a Lease shall be made in immediately available

            funds al Lessor’s address above or such other place as Lessor shall specify in writing. Unless otherwise provided herein, payments received under any Lease will be applied to all interest, fees and amounts owing thereunder (other than Rent), and then to Rent payable thereunder.

         

          

        3.       Net Lease; Disclaimer Of Warranties. Each Lease is a net lease and a “finance lease” under Article 2A of the UCC, and Lessee waives all rights and remedies Lessee may have under sections 2A-508 - 2A-522 thereof, including any right to cancel or repudiate any Lease or to reject or revoke acceptance of any Equipment. Upon the “Acceptance Date” provided in the
            Schedule for each Lease, Lessee’s Obligations thereunder (i) shall be non- cancelable, absolute and unconditional under all circumstances for the entire Lease Term, (ii)

          shall be unaffected by the loss or destruction of any Equipment, and (iii) shall not be subject to any abatement, deferment, reduction, set-off, counterclaim, recoupment or defense for any reason whatsoever. LESSOR IS NOT A VENOOR OR AGENT OF THE EQUIPMENT VENDOR, AND HAS NOT ENGAGED IN THE SALE OR DISTRIBUTION OF ANY EQUIPMENT. LESSOR MAKES NO EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES AS TO TITLE,
            MERCHANTABILITY, PERFORMANCE, CONDITION, EXISTENCE, FITNESS OR SUITABILITY FOR LESSEE’S PURPOSES OF ANY EQUIPMENT, PATENT, TRADEMARK OR COPYRIGHT
            INFRINGEMENTS, THE CONFORMITY OF THE EQUIPMENT TO THE DESCRIPTION THEREOF IN ANY LEASE, OR ANY OTHER  REPRESENTATION OR WARRANTY OF ANY KIND WITH RESPECT TO THE EQUIPMENT. If Equipment is not delivered or properly installed, does not operate as warranted, becomes obsolete, or is unsatisfactory for any reason, Lessee shall make  all claims on account thereof solely against Vendor and not against Lessor. Lessee is
            solely responsible for the selection, shipment, delivery and installation

            of the Equipment and its Vendors, expressly disclaims any
            reliance upon any statements or representations made by Lessor in connection therewith, and has received and approved the terms of any purchase orders, warranties, licenses or agreements with respect to
            the Equipment. During the Lease Term, Lessee shall be
            entitled, on a non-exclusive basis. to enforce any
            applicable Vendor warranties, to the extent permitted thereby and by applicable law. Lessor assigns such warranties to Lessee,

          to the extent permitted thereby, and agrees to cooperate with Lessee, at Lessee’s sole cost and expense, in making any reasonable claim against such Vendor arising
            from any defect in the Equipment.

         

        4.       Use; Maintenance; Location; Inspection. Lessee shall: (i) use, operate, protect and maintain the Equipment (a) in good operating order, repair, condition and appearance, in the same condition as when received, ordinary wear and tear excepted, (b) consistent with prudent industry practice (but in

          no event less than the extent to which Lessee maintains other similar equipment In the prudent management of its assets and properties), and (c) in compliance with all applicable insurance policies, laws, ordinances. rules, regulations and manufacturer’s recommended maintenance and repair
            procedures, and (ii) maintain comprehensive books and records regarding the use, operation, maintenance and repair of the Equipment. The Equipment shall be used only within the 48 contiguous United States, solely for business purposes (and not for any consumer, personal, home, or family purpose), and shall not be abandoned or used
          for any unlawful purpose. Lessee shall not discontinue use of any Equipment except for normal maintenance
            nor, through modifications, alterations or otherwise, impair the current or residual value, useful life, utility or originally intended function of any Equipment without Lessor’s prior consent. Any replacement or substitution of parts, improvements, upgrades. or additions to the Equipment during the Lease Term shall be the
          property of Lessor and subject to the Lease, except that if no Event of Default exists, Lessee may at its expense remove improvements

            or additions provided

          by Lessee that can be readily removed without impairing the value, function
          or remaining useful life of the Equipment. If requested by Lessor.

            Lessee shall cause Equipment to be plainly marked to disclose Lessor’s ownership, as specified by Lessor. Lessee shall not change the location or, in the case of over-the-road vehicles, the base of any Equipment specified in its Schedule without Lessor’s prior written consent. Lessor shall have the right to enter any premises where Equipment is located and inspect it (together with related books and records) at any reasonable time.

         

          

         

        
          
            	
                    Master Lease Agreement

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        5.       Loss and Damage. Lessee assumes all risk of (and shall promptly notify Lessor in writing of any occurrence of) any damage to or loss theft, confiscation or destruction of any Equipment from any cause whatsoever (a “Casualty”) from the date shipped or otherwise made available to Lessee and
            continuing until it is returned to and accepted by Lessor in the condition required by the Lease, including Section 8 of this Agreement If any Equipment suffers a Casualty which

          Lessee determines is reparable, Lessee shall at its  expense promptly place the same in good repair,
            condition or working order. If any Equipment suffers a
            casualty which Lessee determines is beyond repair or materially impairs its residual value (a “Total Loss”), Lessee shall at Lessee’s option (unless an Event of Default has occurred and is then continuing, in which case it shall be at Lessor’s option) either (a) promptly replace such Equipment with a similar item reasonably acceptable to Lessor having an equivalent value, utility and remaining useful life of such Equipment, whereupon such

          replacement items shall constitute Equipment for all purposes the Lease, or (b)

          on the Rent payment dale following such Casualty (or, if none. within

            30 days) pay lessor the Stipulated Loss Value for such Equipment,

          together with all Rent scheduled for payment on such dare, and
          all accrued interest, late charges and other amounts then due and owing under the Lease. Upon such payment following a Total Loss. the Lease with respect to the Equipment suffering a Total Loss shall terminate, and Lessor shall transfer all of its right, title and interest in such Equipment, free

          from all liens and encumbrances created by Lessor, but
            otherwise on an “AS-IS, WHERE-IS,” quitclaim basis. if less than all Equipment under a Schedule suffers a Total Loss, (i)the Stipulated
            Loss Value with respect to any such item of Equipment shall
            be calculated by reference to the allocable portion of “Lessor’s Cost” provided in the applicable Schedule, Rent or other amount related to
          such item, as reasonably determined by Lessor, and (ii) the remaining Rent under the Schedule shall be proportionately reduced as reasonably calculated by Lessor upon Lessor’s receipt of the payments
          described above.

         

        6.       Insurance.
          Lessee, at its own expense, shall keep each item of Equipment insured against

            all risks for its replacement value, and in no event less than its
            Stipulated Loss Value, and shall maintain public liability and, with respect to Equipment that is over-the-road vehicles, automotive liability insurance against such risks and for such amounts as lessor may require. All such insurance shall (a) be with companies rated “A” or better by A.M. Best Company. in

            such form as Lessor shall approve, (b) specify Lessor and Lessee as
          insureds and provide that it may  not be canceled or altered in any way that would affect the interest of Lessor without at least 30 days’ prior written notice to Lessor (10 days’ in the case of
            nonpayment of premium), (c) be primary, without right of
            contribution from any other insurance carried by Lessor and contain waiver of subrogation and “breach of warranty” provisions satisfactory to Lessor, (d) provide that all amounts payable by reason of loss or damage to Equipment shall be payable solely to Lessor, unless Lessor otherwise agrees (provided, however, that absent the existence of an Event of Default, Lessor agrees to promptly remit to Lessee any such insurance proceeds

          that are to be used by Lessee to repair or replace the applicable Equipment), and

          (e) contain such other endorsements as Lessor may reasonably require. Lessee shall provide Lessor with evidence satisfactory to Lessor of the required insurance upon the execution of any Schedule and promptly upon any renewal of any required policy.

         

        7.        Indemnities; Taxes. Lessee’s indemnity and reimbursement obligations set forth below shall survive the cancellation, termination or expiration of any Lease or this Agreement

         

        (a)      General indemnity. Lessee shall indemnify, on an
            after-tax basis, defend and hold harmless Lessor and its respective officers, directors, employees, agents and Affiliates (“Indemnified Persons”) against all

          claims, liabilities, losses and expenses whatsoever (except those determined by final

          decision of a court of competent jurisdiction to have been
            directly and primarily caused by the Indemnifier Person’s gross negligence or willful misconduct), including court costs and reasonable attorneys’ fees and expenses (together, “Attorneys’ Fees”), in any way relating to or arising out of the Equipment or any Lease at any time, or the ordering, acquisition, rejection, installation, possession, maintenance, use, ownership, condition,
            destruction or return of the Equipment, including any claims in negligence. strict liability in tort, environmental liability or infringement.

         

        (b)     General Tax, indemnity. Lessee shall pay or reimburse Lessor, and indemnify, defend and hold Lessor harmless from, on an after-tax basis, all taxes. assessments, fees and other governmental charges paid or required to be paid by Lessor or Lessee in any way arising out of or related to the Equipment or any Lease before or during the Lease Term or after the Lease

            Term following an Event of Default, including foreign, Federal,

          stale, county and municipal fees, taxes and assessments, and property, value-added, sales, use, gross receipts. excise, stamp and documentary taxes, and all related penalties, fines, additions to tax and interest charges (“Impositions”),

          excluding only Federal and state taxes based on Lessor’s net income unless such taxes are in lieu of any Imposition Lessee would otherwise be required to pay hereunder. Lessee shall timely pay any Imposition for which Lessee is primarily responsible under law and any other Imposition not payable or not paid by Lessor, but Lessee shall have no obligation to pay any Imposition being contested in good faith and by appropriate legal proceedings, the nonpayment of which does not, in the opinion of Lessor, result in a material risk of adverse effect on the title, property, use, disposition or other rights of Lessor with respect to the Equipment. Upon Lessor’s request, Lessee shall furnish proof

            of its payment of any Imposition.

         

        (c)     Income Tax indemnity. Lessor shall be treated for federal and state income tax purposes as the owner

            of the Equipment and shall be entitled to take into account certain Tax Benefits in computing its income tax liabilities in connection with any Lease. If Lessor suffers a Tax Loss by reason of any act or failure to act by Lessee, or
            Lessee’s breach of any representation, warranty or agreement in any Lease then, upon Lessor’s demand and at Lessor’s option, either:(i) all further Rent under the Lease, if any, shall be increased by an amount, or (ii) Lessee shall pay Lessor a lump sum amount, which in either case shall maintain the net economic after-tax yield, cash-flow and rate of return Lessor originally anticipated, based on Lessor’s federal and state corporate income tax rate in effect on the Acceptance
          Date of the applicable Schedule and other assumptions originally used by Lessor in evaluating the transaction

          and setting the Rent there for and other terms thereof. Lessee shall also pay Lessor on demand

          all interest, costs (including Attorneys’ Fees), penalties and additions to tax associated with the Tax Loss. Lessor shall have no obligation to contest any Tax Loss. All references to
          “Lesser” in this Section 7(c) shall include (A) Lessor’s successors and
          Assignees, and (B) each member of the affiliated group of corporations, as defined in Section 1504(a) of the Code, of which Lessor or such successor or Assignee is
            at any time a member. As used herein: “Tax Benefits” means all items
            of income, deduction (including depreciation consistent with Lessee’s representation in the applicable Schedule), credit, gain or loss relating to ownership of the Equipment as are
          provided to owners of similar equipment under the Code and applicable state
          tax laws in effect on the Acceptance Date of such Schedule; and “Tax

            Loss”
          means and will be deemed to be suffered if Lessor loses, is delayed in claiming, is required to recapture, is not allowed or may not claim all or any potion of any Tax Benefits, provided, however, that Lessee

            shall be under no obligation to make any payments with respect to a Tax Loss to the extent that it (1) is caused by Lessor’s failure to have sufficient taxable income to benefit from any Tax
            Benefits, or (2) results from any disposition of Equipment by Lessor other than a disposition of Equipment following an

          Event of Default.

         

        8.      Return.

          Upon any cancellation, termination or expiration of any Lease (after the occurrence of an Event

          of Default or otherwise). Lessee shall, at its expense, Cause the Equipment
          to be prepared and adequately protected for shipment by an authorized manufacturer’s representative and either surrender it to Lessor in place or, if instructed by Lessor, ship the Equipment to Lessor, freight and insurance pre-paid, to a place designated by Lessor within the 48 contiguous United Stales, in the condition required

            under Section 4 hereof and under the applicable Schedule, able to be put into immediate service and to perform at manufacturer’s rated levels (if any), together with all related manuals, documents and records, and, if applicable, reassembled by an authorized manufacturer’s representative and immediately qualified for the manufacturer’s (or its authorized servicing representative’s) then available service contract or warranty. If requested by Lessor, Lessee shall, at its expense: (i) cause the Equipment to qualify for all applicable licenses or permits necessary for its operation  and for its intended purpose, and to comply with all
            specifications and requirements of applicable federal, slate and local laws, regulations and ordinances; (ii) provide safe, suitable storage, acceptable to Lessor, for the Equipment for a period not to exceed 90 days from the date of return;
            and (iii) cooperate with Lessor in attempting to remarket the Equipment, including display and demonstration to prospective parties, and allowing Lessor to conduct a private sale on Lessee’s premises. If Lessee does not surrender or return any item of Equipment to Lessor on the date or in the condition required under a Lease, in addition to all other available rights and remedies, at Lessor’s

            election, such Equipment shall continue to be subject to all the  terms and conditions of the
          Lease, with Rent and other charges
              continuing to accrue and be payable under the Lease with respect to such Equipment until it is so surrendered or returned to Lessor.

         

        
          
            	
                    Master Lease Agreement

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          9.       Lessee Representations and Agreements. Lessee represents, warrants and agrees that: (a) Lessee has had for the previous 5 years (except as previously disclosed to Lessor in writing) the legal name
              and form of business organization in the state described above; (b) Lessee’s chief executive office and notice address, taxpayer identification number and any organizational identification number is as described with its execution of this Agreement below; (c) Lessee shall notify Lessor in writing at least 30 days before changing its legal name, state of organization, chief
              executive office location or organizational identification number; (d) Lessee is duly

            organized and existing in good standing under
              the laws of the state described above and all other jurisdictions where legally required in order to carry on its business, shall maintain its good standing in all such jurisdictions, and shall conduct its businesses and manage its properties (and cause each of its Affiliates to conduct its businesses

              and manage its properties) in compliance with all applicable laws, rules or regulations binding, in any jurisdiction, on Lessee and its Affiliates
              including, without limitation, all anti-money laundering laws and regulations; (e) the execution, delivery and performance of this Agreement, each Lease and

            Related Agreement to which it is a party has been duly authorized by Lessee, each of which are and will be binding on and enforceable against Lessee in accordance with
              their terms, and do not and will not contravene any other instrument or agreement
              binding Lessee; and (f) there is no pending litigation, tax or environmental claim, proceeding, dispute or regulatory or
              enforcement action (and Lessee shall promptly notify Lessor of any of the same that may hereafter arise) that may adversely affect any Equipment or Lessee’s financial condition or impair its ability to perform its Obligations.

        

         

        All covenants of Lessee
            that are based upon a specified level or ratio relating to assets, liabilities, indebtedness, rentals, net worth, cash flow, earnings, profitability, or any other accounting-based measurement or test, now or hereafter existing (collectively, the “Additional Covenants”), In that certain. Fourth Amended and Restated Credit Agreement dated September 27, 2018. by and between Lessee and Bank of America, N.A.,
                as Syndication Agent, and

              JPMorgan Chase Bank, N,A., as
                Administrative Agent and Collateral Agent or in any replacement credit facility accepted in writing by Lessor between Lessee and a
              United States national banking association or other financial institution (a ‘‘Bank Facility”), are hereby incorporated into and made a part of this Agreement
              (with such adjustments to defined terms as may be necessary to assure consistency) without modification or amendment unless specifically accepted and approved in writing by Lessor. Lessee acknowledges and agrees that (i) the Additional Covenants in the
            form included in the existing Bank Facility shall be deemed to be permanently incorporated into this Agreement, and shall remain in effect for all purposes of this Agreement notwithstanding the cancellation or termination of a
              Bank Facility due to voluntary prepayment, payment at maturity, default or otherwise, unless a replacement credit facility with Additional Covenants has been accepted in writing by Lessor in its sole discretion prior to the effective date of such
              cancellation or termination of such Bank Facility, and (ii) any waiver of any breach (or anticipated breach) of any Additional Covenant under the Bank Facility (by reason of amendment, forbearance or otherwise) shall not constitute a waiver of the corresponding default (or anticipated default) under this Agreement unless specifically agreed to in writing by Lessor. Lessee hereby certifies that Lessor has been furnished a true, correct and complete copy of all documentation concerning the existing
              Bank Facility, and further covenants and agrees to promptly
              provide Lessor: (a) certified copies of true, correct and complete documentation of any other Bank Facility in effect from time to time, and any all proposed amendments and modifications to any Bank Facility;
              (b) notices of any event of default or other condition of non-compliance issued to Lessee in connection with a Bank Facility; (c) all financial statements and
              reports required pursuant to a Bank Facility and any certificates of compliance in the form required thereunder as they pertain to the Additional Covenants. and shall continue to provide the same to Lessor notwithstanding the cancellation or other termination of such Bank Facility for so long as any Obligations owing to Lessor remain outstanding in connection with this Agreement; and (d) prior written notice of the cancellation or termination of a Bank Facility for any reason. Lessee further acknowledges and agrees that any event of default under a Bank Facility shall constitute an Event of Default under this Agreement

         

        10.    Title; Property; Additional

          Security. (a) Title; Personal Property. Each Lease is and is intended to be a lease of personal property for all purposes. Lessee does not acquire any right, title or interest in or to any Equipment, except the right to use and possess the same under the terms of the applicable Lease. Except as specifically provided in the applicable Schedule, Lessee has no right or option to
            extend the Lease Term of a Lease or purchase any Equipment Lessee assigns all of its rights (but none of its obligations) to Lessor under any purchase
            orders, invoices or other contracts of sale with respect to the Equipment, and conveys whatever right, title and interest it may now or hereafter have in any Equipment lo Lessor. Lessor shall be the sole owner of Equipment free and clear of all liens or encumbrances, other than Lessee’s rights under the Lease. Lessee will not create or
            permit to exist any lien, security interest, charge or encumbrance on any Equipment except those created by Lessor. The Equipment shall remain personal property at all times, notwithstanding

            the manner in which it may be affixed to realty. Lessee shall obtain and record such instruments and take such steps as may be necessary to (i) prevent any creditor, landlord, mortgagee or
            other entity (other than Lessor) from having any lien, charge, security interest or encumbrance on any Equipment, and (ii) ensure Lessor’s right of access to and removal of Equipment in accordance with the Lease.

         

        (b)  Additional

              Security. To secure the punctual payment and performance of Lessee’s Obligations under each Lease and, as a separate grant of security, to secure the payment and performance of all other Obligations owing to Lessor, Lessee grants to Lessor a continuing security
            interest in the Collateral, provided, however, that if there then exists no Event of Default, Lessor’s security interest in Collateral subject to a Lease shall terminate upon the payment and performance

            of all Obligations of Lessee under the applicable Lease. Notwithstanding the grant of a security interest in any Collateral, Lessee shall have no right to sell, lease, rent, dispose or surrender possession, use or operation of any Equipment to any third parties without the prior written consent of Lessor. The foregoing grant of a security Interest shall not of itself be a factor in determining whether any Lease creates a lease or security interest in the Equipment under applicable provisions of the UCC.

         

        
          
            	
                    Master Lease Agreement

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        11.     Default. Each of the following (a “Default”) shall with the giving of any notice or passage of any time

            period specified, constitute an “Event of Default” hereunder and under all Leases: (I) Lessee fails to pay any Rent or other amount owing under any Lease within 10 days of its due date; (2) Lessee fails lo maintain insurance as required herein, or sells, leases, subleases assigns, conveys, or suffers to exist any lien, charge, security interest or encumbrance on, any Equipment without Lessor’s prior consent, or any Equipment is subjected to levy, seizure or attachment; (3)
              Lessee fails to perform or comply with any other covenant
              or obligation under any Lease or Related Agreement and, if curable,

            such failure continues for 30 days after written notice there of by Lessor to Lessee; (4) any representation. warranty or other written statement made to Lessor by Lessee in connection with this Agreement, any Lease, Related Agreement or other Obligation, or by any Guarantor pursuant to any Guaranty
              (including financial statements) proves to have been incorrect in any material respect when made; (5) Lessee (w) enters into any merger or consolidation with. or sells or transfers all or any substantial portion of its assets to, or enters into any partnership or joint venture other than in the
              ordinary course of business with, any entity, (x) dies (if a natural person), dissolves, liquidates or ceases or suspends the conduct of business, or ceases to maintain its existence, (y) if Lessee is a privately held entity, enters into or suffers
            any transaction or series of transactions as a result of which Lessee is directly or

            indirectly controlled by persons or entities not directly or indirectly controlling Lessee as of the date
            hereof, or (z) if Lessee is a publicly held entity, there shall be a change in the ownership of Lessee’s stock or other equivalent ownership interest such that Lessee is no longer subject to the reporting
            requirements of, or no longer has a class of equity securities registered under, the Securities Act of 1933 or
            the Securities Exchange Act of 1934; (6) Lessee undertakes any general assignment for the benefit of creditors
            or commences any voluntary case or proceeding for relief under the bankruptcy code, or any other law for the
            relief of debtors, or takes any action to authorize or implement any of the foregoing; (7) the filing of any petition or application against Lessee under any law for the relief of debtors, including proceedings
            under the federal bankruptcy code, or for the subjection of property of Lessee to the control of any court, receiver or agency for the benefit of creditors if such petition or application is consented to by Lessee or is otherwise

            not dismissed within 60 days from the date of filing; (8) any default occurs under any other lease, credit or other agreement or instrument to which Lessee and Lessor or any Affiliate of Lessor are now or hereafter party; (9) any default occurs under any other agreement or
            instrument to which Lessee is a party and under which there is outstanding. owing or committed an aggregate amount greater than $5,000,000; (10) any attempted repudiation, breach or default of any Guaranty; or (11) the occurrence of any event described in clauses (4) through (9)
            above with reference to any Guarantor or any controlling shareholder, general partner or member of lessee.
            Lessee shall promptly notify Lessor in writing of any Default or Event of Default

         

        12.     Remedies. (a) Upon the occurrence of an Event of Default, Lessor may, in its
              discretion, exercise any one or more of the following remedies with respect to any or all Leases or Equipment: (1) cause Lessee to promptly discontinue use of or disable any Equipment, or to assemble and return any Equipment or other Collateral in accordance with the terms of the applicable Lease; (2) remedy such Event of Default or proceed by court
              action, either at law or in equity, to enforce performance of the applicable provisions of any Lease; (3) with or without court order, enter upon the premises where Equipment is located and repossess and remove the same, all without liability for damage to such premises or by reason such entry or repossession, except for Lessor’s, gross negligence or willful misconduct; (4) dispose of any Equipment in a public or private transaction, or hold, use, operate or keep idle the

              Equipment, tree and clear of any rights or interests of Lessee therein; (5) recover direct, incidental consequential and other damages for the breach of any Lease, including the payment of all Rent and other amounts payable thereunder (discounted at the Discount Rate with respect to any accelerated future amounts), and all costs and expenses incurred by Lessor in exercising its remedies or
              enforcing its rights thereunder (including all Attorneys’ Fees); (6) by written notice to Lessee, cancel any Lease and, as liquidated damages for the loss of Lessor’s bargain and not as a penalty, declare
              immediately due and payable an amount equal to the Stipulated Loss Value applicable to such Leases which Lessee acknowledges to be reasonable
              liquidated damages in light of the anti harm to Lessor that might be caused by an Event of Default and the facts and circumstances existing as of the Acceptance Date

            of each Lease; (7) without notice to Lessee, apply or set-off against any Obligations all security
              deposits, advance payments, proceeds of letters of credit, certificates

              of deposit (whether or not matured), securities or other additional

              collateral held by Lessor or otherwise credited by or due
            from Lessor to Lessee; or (8) pursue all other remedies provided under the UCC or other applicable law. Upon the
              commencement of any voluntary case under the federal bankruptcy code concerning the Lessee, the remedy provided in clause (6) above shall be
              automatically exercised without the requirement of prior written notice to Lessee or of any other act or declaration by Lessor, and the liquidated damages
            described therein shall be immediately due and payable. Lessee shall pay interest equal to the lesser of (a) 12%
              per annum, or (b) the highest rate permitted by applicable law (“Default Rate”) on (i) any amount other than Rent owing under
              any Lease and not paid when due, (ii) Rent not paid within 30 days of its due date, and (iii) any amount required to be paid upon cancellation of any Lease under this Section 12. Any payments received by Lessor after an Event of Default, including proceeds of any disposition of Equipment, shall be applied in the following order: (A) to all of Lessor’s costs (including Attorneys’ Fees), charges and expenses incurred in taking, removing, holding, repairing and selling or leasing the Equipment or other Collateral or
              enforcing the provisions hereof; (B) to the extent not previously paid by Lessee, to pay Lessor for any damages then remaining unpaid hereunder, (C) to reimburse Lessee for any sums previously paid by Lessee as damages; and (D) the balance, if any, shall be retained by Lessor.

         

        (b)   No remedy referred to in this Section 12 shall be exclusive, each shall be cumulative (but not duplicative of recovery of any Obligation) and in addition to

          any other remedy referred to above or other wise available to Lessor at law or inequity, and all such remedies shall survive the cancellation of any Lease. Lessor’s exercise or partial exercise of; or failure to exercise, any remedy shall not restrict Lessor from further exercise of that remedy or any other available remedy. No extension of time for payment or performance of any Obligation shall operate to release, discharge. modify, change or affect the original liability of Lessee for any Obligations, either in whole or in part.

          Lessor may proceed against any Collateral or Guarantor, or may proceed contemporaneously or in the first instance against Lessee, in such order and at such times

            following an Event of Default as Lessor determines in its sole discretion. In any action to repossess

            any Equipment or other Collateral, Lessee waives any bonds and any surety or security required by any applicable
            laws as an incident to such repossession. Notices of Lessor’s intention to accelerate, acceleration, nonpayment, presentment, protest, dishonor, or any other notice whatsoever (other than notices of Default specifically required of Lessor pursuant to Section 11 above) arc waived by Lessee and any Guarantor. Any notice, given by Lessor of any disposition of Collateral or other intended action of lessor which is given in accordance with this Agreement at least 5 business days prior to such action,
          shall constitute fair and reasonable notice of such action.

         

        

        
          
            13.     Assignment.  Lessor and any Assignee may assign or transfer any of Lessor’s interests in any Lease or Equipment without notice to Lessee, subject. however, to the rights of Lessee to use and possess the Equipment under such Lease for so long as no Event of Default has occurred and is continuing. Lessee agrees that: (i) the rights of any
                Assignee shall not be affected by any breach or default of Lessor or any prior Assignee, and Lessee shall not assert any defense, rights of set-off
                or counterclaim against any Assignee, nor hold or attempt to hold such Assignee liable for any such breach or default; (ii) no Assignee shall be required to assume any obligations of Lessor under any Lease except the obligation of non-interference in Section I above, (iii) any Assignee expressly assuming the obligations of Lessor shall thereupon be responsible for Lessor’s duties under the applicable accruing after assignment and Lessor shall be released from such duties, and (iv) Lessee shall execute and  deliver upon request such additional documents, instruments and assurances as Lessor deems necessary in order to (y) acknowledge and confirm all of the terms
                and conditions of any Lease and Lessor’s or such Assignee’s rights with respect thereto, and lessee’s compliance with all of the terms and provisions
                thereof, and (z) preserve, protect and perfect Lessor’s or Assignee’s right, title or interest hereunder and in any Equipment, including, without limitation, such UCC financing statements or amendments, control
                agreements, corporate or member resolutions, votes, notices of assignment of interests, and confirmations of lessee’s obligations and representations and warranties with respect thereto as of the dates requested. lessor may disclose to any potential Assignee any information regarding Lessee, any Guarantor and their Affiliates. Lessee shall not assign, pledge, hypothecate or in any way dispose of any of its rights or obligations under any Lease, or enter into any sublease or any Equipment, without Lessor’s prior written consent. Any purported assignment, pledge, hypothecation, disposal or sublease by Lessee made without Lessor’s prior written consent shall be null and void.

          

        

         

        

        
          
            	
                    Master Lease Agreement

                  	4	 

          

          
            

          

        

        
          14.     Financial and Other Data. (a) During any Lease Term, Lessee shall (i) maintain books and records in accordance with generally accepted accounting principles
              consistently applied (“GAAP”) and prudent business practice; (ii) promptly provide lessor, within 120 days after the close of each fiscal year, and. upon Lessor’s request, within 45 days of the end of each quarter of Lessee’s fiscal year, a copy of financial statements for Lessee requested by Lessor, in each case prepared in accordance with GAAP and (in the case of annual statements) audited by independent certified public accountants and (in the case of quarterly statements) certified by the chief financial officer of lessee; provided, however, that for so long as Lessee is legally and timely filing annual and quarterly financial reports on Forms 10-K and 10-Q with the Securities and Exchange Commission which are readily available to the public, the
              filing of such reports shall satisfy the foregoing financial statement reporting requirements for such entity; and (iii) furnish Lessor all other financial information and reports and such other information as Lessor may reasonably request concerning lessee, its affairs, or the

            Equipment or its condition, location, use or operation.

        

         

        (b)   lessee represents and warrants that all information and financial statements at any time furnished by or on behalf of Lessee are accurate and reasonably reflect as of their respective dates, results of operations and the financial condition of lessee or such other entity they purport to cover. Credit and other information regarding Lessee, its Affiliates, any Lease or Equipment may be disclosed by lessor to its Affiliates, agents and potential Assignees, notwithstanding anything contained

            in any agreement that may purport to limit or prohibit such disclosure.

         

        15.     Definitions

         

        

        As used herein, the following tens shall have the meanings
            assigned or referred to them below:

         

        “Affiliate” means any entity
            controlling, controlled by or under common control with the referent entity; “control” includes (i) the ownership of 25% or more of the voting stock or other ownership interest of any entity and (ii) the status of a general
            partner of a partnership or managing member of a limited liability company.

         

          

        “Assignee” means any assignee or transferee of all
            or any of Lessor’s right, title and interest in any Lease or any Equipment.

         

          

        “Code” means the Internal Revenue Code of 1986, as amended.

         

        “Collateral” means and includes all of Lessee’s right, title and interest in and to all Equipment, together with: (i) all parts, attachments, accessories and accessions to, substitutions and replacements for, each item of Equipment; (ii) all accounts, chattel paper, and general intangibles arising from or related to any sale, lease, rental or other disposition of any Equipment to third parties, or otherwise resulting from the possession, use or operation of any Equipment by third parties, including instruments, investment property, deposit accounts, letter of credit rights, and supporting
            obligations arising thereunder or in connection therewith; (iii) all insurance, warranty and other claims against third parties with respect to any Equipment; (iv) all software and other intellectual property rights used in connection therewith; (v) proceeds of all of the foregoing, including insurance proceeds and any proceeds in the form of goods, accounts, chattel paper, documents, instruments, general intangibles, investment property, deposit accounts, letter of credit rights and supporting obligations; and (vi) all books and records regarding the foregoing. in each case, now existing or hereafter arising.

         

        “Discount Rate” means the 1-year Treasury Constant Maturity rate as published in the Selected Interest
          Rates table of the Federal Reserve statistical release H.15(519) for the week ending immediately prior to the original Acceptance Date of a lease (or if such rate is no longer determined or published, a successor or alternate rate selected by Lessor).

         

        “Equipment” means the items, units and groups of personal property, licensed materials and fixtures described in each Schedule, together with
            all replacements, parts, additions, accessories and substitutions therefor, and “item of Equipment” means

            a “commercial unit” as defined and described in Article 2A of the UCC, and includes each functionally integrated and separately marketable group or unit of Equipment.

         

        “Guarantor” means any
            guarantor, surety, endorser, general partner or co-lessee of Lessee, or other party liable in any capacity, or providing additional collateral security for, the payment or performance of any Obligations of Lessee.

         

        “Guaranty” means any guaranty, surety instrument, security, indemnity, “keep-well” agreement
            or other instrument or arrangement from or with any Guarantor.

         

        “Obligations” means and includes all obligations of Lessee owing to Lessor under this Agreement, any Lease or Related Agreement, or of any Guarantor owing to Lessor under any Guaranty, together with all other obligations, indebtedness and liabilities of lessee to Lessor under any other financings. leases, loans, notes, progress payment agreements,
            guaranties or other agreements, of every kind and description, now existing or hereafter arising, direct or indirect, joint or several, absolute or
            contingent, whether for payment or performance, regardless of how the same may arise or by what instrument, agreement

            or book account they may be evidenced, including without limitation, any such obligations, indebtedness and liabilities of lessee to others which may be obtained by Lessor through purchase, negotiation,
            discount, transfer, assignment or otherwise.

         

        “Related Agreement” means and includes any Guaranty and any approval letter or progress payment, assignment, security or other agreement or addendum related to this Agreement, any Lease or any Collateral to which Lessee or any Guarantor is a party.

         

          

        “Stipulated Loss Value” means, as of any particular date, the product obtained by multiplying the “Lessor’s Cost” specified in the Schedule by the percentage set forth in the “Schedule

              or Stipulated Loss Values” attached to the Schedule, specified opposite the Rent installment number (or date) becoming due immediately after the Casualty, Event of Default or other event requiring the calculation of Stipulated Loss Value. If there is no Schedule of Stipulated Loss
            Values attached to a Schedule, or if the Schedule of Stipulated Loss Values does not otherwise cover a
            Rent installment number (or date), Stipulated Loss Value on any Rent payment date shall equal the net present value of: (a) all unpaid Rent for the
            remainder of the Lease Term, plus (b) the amount of any purchase obligation, fixed price purchase option,
            or TRAC amount payment or, if there is no such obligation, option or payment, then the fair market value of the Equipment as of the end of

            the Lease Term, as estimated by lessor in its sole discretion, all discounted to present value at the Discount Rate.

         

          

        “UCC” means the Uniform Commercial Code in effect in the state specified in Section 16(f) of this Agreement.

         

        
          
            	
                    Master Lease Agreement

                  	5	 

          

          
            

          

        

        
        
          
            “Vendor” means the manufacturer, distributor, supplier or other seller (whether or not a merchant or dealer) of the Equipmen1 and any sales representative or agent thereof.

             

            16.     Miscellaneous. (a) At Lessor’s request, Lessee shall execute, deliver, file and record such financing statements and other documents as Lessor deems
                necessary to protect Lessor’s interest in the Equipment and to effectuate the purposes of any Lease or Related Agreement, and Lessee authorizes, and irrevocably appoints Lessor as its agent and attorney-in-fact, with right of substitution and coupled with an interest, to (i) execute,
                deliver, tile, and record any such item, and to take such
                action for Lessee and in Lessee’s name, place and stead, (ii) make minor corrections to manifest errors in factual data in any Schedule and any addenda, attachments, exhibits and riders
                thereto, and (iii) after the occurrence of an Event of Default, enforce claims relating to the Equipment against insurers, Vendors or other persons, and to make, adjust, compromise, settle and receive payment under such claims; but without any obligation to do so.

             

            (b)   Federal law requires all financial institutions to obtain, verify and record information that
                identifies each entity that obtains a loan or other financial accommodation. The first time lessee requests a financial accommodation from Lessor, the
                Lessor may ask for Lessee’s (or any Guarantor’s) legal name, address, tax ID number and other identifying information. Lessee shall promptly provide copies of business licenses or other documents evidencing the existence and good standing
                of Lessee or any Guarantor requested by Lessor.

             

            (c)   Time is of the essence in the payment and performance of all of Lessee’s Obligations under any Lease
                or Related Agreement. This Agreement,, and each Lease or Related Agreement may be executed in one or more counterparts, each of which shall constitute one and the

                same agreement. All demands, notices, requests, consents, waivers and other communications concerning this Agreement and any Lease or Related A agreement shall be in writing and shall be deemed to have been duly given when received, personally delivered or three business days after being deposited in the mail, first class postage prepaid, or the business day after delivery to an express carrier, charges prepaid, addressed to each party at the address provided herein, or at such other address as may hereafter be furnished in writing by such party to the other.

             

            (d)   Except as otherwise agreed between Lessee and Lessor in writing, Lessee shall reimburse Lessor upon demand for costs and
                expenses incurred by Lessor in connection with the execution and delivery of this Agreement, any Lease or Related Agreement. Lessee shall reimburse
                Lessor on demand for all costs (including Attorneys’ Fees) incurred by Lessor in connection with Lessee’s exercise of any purchase or extension option under any Lease, or any amendment or waiver of the terms of this Agreement or any Lease or Related Agreement requested by Lessee.

             

            (e)  Any provisions of this Agreement or any Lease or Related Agreement which are unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions thereof, and any such unenforceability shall not render unenforceable such provisions in any other jurisdiction. Any requirement for the execution and delivery of any document, instrument or notice may be satisfied, in Lessor’s
                discretion, by authentication as a record within the meaning of, and to the extent permitted by, Article 9 of the UCC.

             

            (f)   THIS AGREEMENT AND ANY LEASE OR RELATED AGREEMENT, AND THE LEGAL RELATIONS OF THE PARTIES THERETO, SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF RHODE ISLAND, WITHOUT REGARD TO CHOICE OF LAW PRINCIPLES;
              THE PARTIES CONSENT AND SUBMIT TO THE JURISDICTION OF THE STATE AND FEDERAL COURTS OF SUCH STATE FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING
                THEREFROM, AND EXPRESSLY WAIVE ANY OBJECTIONS THAT IT MAY HAVE TO THE VENUE

              OF SUCH COURTS. THE PARTIES EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY IN

              ANY ACTION BROUGHT ON OR WITH RESPECT THERETO. IN NO EVENT SHALL LESSOR HAVE ANY LIABILITY TO LESSEE FOR INCIDENTAL, GENERAL, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES. Any cause of action by Lessee against Lessor relating to this Agreement or any Lease or Related Agreement shall be
              brought within one year after any such cause of action first arises, and Lessee hereby waives the benefit of any longer period provided by statute.

            
               

              

              
                
                  (g)  EACH LEASE, TOGETHER WITH THIS AGREEMENT AND ANY REL.ATED AGREEMENTS, (i) CONSTITUTES THE FINAL AND ENTIRE AGREEMENT BETWEEN THE PARTIES SUPERSEDING ALL CONFLICTING TERMS OR PROVISIONS OF ANY PRIOR PROPOSALS, APPROVAL LETTERS, TERM SHEETS OR OTHER AGREEMENTS OR UNDERSTANDINGS BETWEEN THE PARTIES, (ii) MAY NOT BE
                      CONTRADICTED BY EVIDENCE OF (y) ANY PRIOR WRITTEN OR ORAL AGREEMENTS OR UNDERSTANDINGS, OR (z) ANY CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS BETWEEN THE PARTIES; and (iii) MAY NOT BE AMENDED, NOR MAY ANY RIGITTS THEREUNDER BE WAIVED, EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY THE PARTY
                      CHARGED WITH SUCH AMENDMENT OR WAIVER.

                   

                    

                

              

            

            In Witness Whereof, Lessor and Lessee have executed this Agreement as of the date first above written.

             

            

            
              	
                      
                        BANC OF AMERICA LEASING & CAPITAL, LLC (Lessor)

                      

                    	PHOTRONICS,INC. (Lessee)

                    	

                    
	 	

                    	

                    	

                    	

                    	

                    	

                    
	 	
                      By:

                    	/s/ Denise C. Simpson

                    	

                    	
                      By:

                    	
                      /s/ JOHN P. JORDAN

                    	

                    
	 	Print Name:	Denise C. Simpson	

                    	Print Name:	
                      JOHN P. JORDAN

                    	

                    
	 	Title:	Vice President

                    	

                    	Title:	Sr Vice President, CFO & Treasurer

                    	

                    

              	 	

                    	

                    	

                    	Taxpayer ID# :	06-0854886

                    	

                    
	 	 	 	 	Org. ID#(if any)	

                    	 
	 	 	 	 	Chief Executive Office:

                    	 
	 	 	 	 	

                    	15 Secor Road

                    	 
	 	 	 	 	 	Brookfield, CT 06804

                    	 

            

          

           

        

        
          
            	
                    Master Lease Agreement

                  	6	 

          

          
            

        

        
        
          
            		
                     

                  
	
                    Banc of America Leasing & Capital, LLC

                  	
                    Amended Acceptance Notice/

                    Pay Proceeds Authorization

                  

          

          

          

          
            Master Lease Agreement Number: 48869-90000

             

            Amended Schedule Number: 001 (the “Transaction”)

             

              

            To: Banc of America Leasing & Capital, LLC

             

            The undersigned hereby certifies that all property described in the above-referenced Transaction by and between Banc of America Leasing & Capital, LLC, and the undersigned has been furnished, that delivery and installation has been fully completed
              as required, and that such property has been irrevocably accepted and is satisfactory in all respects to the undersigned for purposes of the Transaction.

             

            Subject to the holdback provisions set forth in the Schedule, We hereby authorize you to disburse the proceeds of this Transaction as follows:

          

          

          

          
            	
                    Disburse To:

                  	
                    Amount:

                  
	
                     

                  	
                     

                  
	
                    Previously funded through Progress Payment(s)

                  	
                    $ 32,130,455.08 *(JPY 3,336,300,000)

                  
	
                     

                  	
                     

                  
	
                    Hold-Back from Vendor (NuFlare)

                  	
                    $ 3,576,780.16 *(JPY 370,700,000)

                  
	
                     

                  	
                     

                  
	
                    Credit to Sch 001 (Exchange Rate Fluctuation)

                  	
                    ($ 112,559.44) *(USD)

                  
	
                     

                  	
                     

                  
	
                    TOTAL

                  	
                    $35,594,675.80 *(JPY 3,707,000,000)

                  

             

            

            
              *Portion held by Banc of America Leasing & Capital, LLC per the request of Photronics, Inc., and Hold-Back and Total amounts subject to adjustment, as stated in more detail in Section 9. of the Amended Schedule 001*

            

             

            

            
              	
                       

                    	
                      PHOTRONICS, INC.

                      

                      (Lessee)

                      

                    

              	 	 	 
	
                       

                    	By:

                    	
                      /s/ JOHN P. JORDAN

                    
	 	 	 

              	
                       

                    	Printed Name:

                    	JOHN P. JORDAN

              	 	 	 
	
                       

                    	Tittle:

                    	
                      Executive Vice President & CFO

                      

                    
	 	 	 

              	
                       

                    	Date:

                    	FEBRUARY 8, 2021

                    

              

              

               

              
                
                  	Pay Proceeds Authorization 4.1.06

                        	Page 1 of  1

                        

                

                
                  

              

               

            
              	
                       

                    

              	
                      
                        Banc of America Leasing & Capital, LLC

                      

                    	
                      Amended Schedule to

                      Master Lease Agreement 

                    	

                    	
                      Amended Schedule

                      
                        Number .001

                      

                    

            

             

            

            
              This Schedule (“Schedule”), dated as of December 11, 2020, between Banc of America Leasing & Capital, LLC
                (“Lessor”) and .Photronics. Inc. (“Lessee”) is executed pursuant to Master Lease Agreement Number 48869-90000 dated July 25, 2019. (the “Master Lease”), which is incorporated into this Schedule by this reference. Unless otherwise defined in this
                  Schedule, capitalized terms used in this Schedule have the respective meanings assigned to such terms in the Master Lease. If any provision of this Schedule conflicts with any provision of the Master Lease. the provisions contained in this Schedule shall prevail. Lessee hereby authorizes Lessor to insert the serial numbers and other identification data of the Equipment, dates, and other omitted factual matters or descriptions in this Schedule.

            

             

              
                
                  
                    1.       Description of Equipment; Location. The
                        Equipment subject to this Schedule, which has a cost to Lessor in the aggregate of $35,594,675.80 (JPY 3,707.000.000), which may include taxes, shipping, installation and other related expenses, if any (collectively “Lessor’s Cost”), are as follows:

                  

                

              

              

              

              
                	
                        
                          .Quantity.

                        

                      	

                      	
                        Description.

                      	
                        
                          Lessor’s Cost

                        

                      
	
                        1

                      	

                      	
                        
                          EBM-9000 Electron-Beam Mask Lithography System

                        

                      	
                         

                      
	

                      

                

                

                	
                        
                          Location of Equipment. The Equipment will be located or (in the case of over-the-road vehicles) based at the following locations:

                        

                      

              

              

              

              
                	
                        .Location.

                      	

                      	
                        Address.

                      	
                        .City.

                      	
                        County.

                      	
                        .State.

                      	
                        ZIP

                      
	
                        A

                      	

                      	
                        10136 S. Federal Way

                      	
                        Boise

                      	 Ada

                      	 ID

                      	 83716

                      

              

              

              

              
                2.      Acceptance. Lessee acknowledges and represents that the Equipment (a) has been delivered to, received and
                  Inspected by Lessee, (b) is in good operating order, repair, condition and appearance, (c) is of the manufacture, design and capacity selected by Lessee

                    and is suitable for the purposes for which the Equipment is leased, and is acceptable and satisfactory to Lessee. (d) does not require any additions or modifications to make it suitable for use,
                    other than ancillary modifications or additions normally made by lessees of similar assets. and is available for use and lease by Lessee and Lessor, and (e) has been irrevocably accepted as “Equipment” leased by Lessee under this Schedule as of the date written below (the “Acceptance Date”). Lessee hereby authorizes and directs Lessor to reimburse Lessee or pay Vendors for the purchase price of the Equipment in accordance with Vendors’ invoices therefor, receipt and approval of which are hereby reaffirmed by Lessee.

              

              

              

              
                3.       Lease Term. The original Lease Term for the Lease of Equipment under this Schedule consists of: (i) an “Interim Term” (if any) beginning on the Acceptance Date, and continuing through and including the day preceding the Base Date;

                    and (ii) a “Base Term” of Sixty (60) months, beginning on December 30, 2020 (the “Base Date”).

                 

                4.       Rent   Rent payable under
                    this Schedule consists of: (i) ‘‘Interim Rent’’,   which shall be due Lessor for each day of the Interim Term and equal the daily equivalent of the initial Base Rent, and payable on the Base Date; and (ii) “Base Rent”, which shall be payable in arrears in Three (3) consecutive monthly installments of $39.071.98 each, followed by Nine (9) consecutive monthly installments of $626.960.07 each, followed by Forty-Eight (48) consecutive monthly installments of $479,988.05 each,

                    or as set forth in the Schedule of Base Rent installments attached hereto, with the first Base Rent installment being payable Thirty (30) days

                    following the Base Date and the remaining Base Rent installments being payable on the 30th day of each succeeding month.

                 

                
                  5.       Tax Exemption; Personal Property Taxes. Lessor will
                      invoice Lessee for all sales and use taxes as and when due and payable in accordance with
                      applicable law, unless Lessee timely delivers to Lessor a valid exemption certificate with respect to such taxes. Delivery of such certificate shall constitute Lessee’s representation and warranty that no such taxes shall become due and payable with respect to the Equipment, and
                      Lessee shall indemnify and hold harmless Lessor from and against any and all liability or damages, including late charges and interest which Lessor may incur

                    by reason of the assessment of such taxes.
                      Notwithstanding any provision to the contrary in this Lease, Lessor shall file directly with all
                    appropriate taxing authorities all declarations, returns, inventories and other documentation with
                      respect to any personal property taxes due or to become due with respect to the Equipment (“Taxes”) and  shall pay on or before the date when due all such Taxes assessed, billed or
                    otherwise payable with respect to such Equipment directly  to  such  taxing authorities. Lessee shall indemnify and, upon demand, reimburse Lessor for all Taxes paid by Lessor. The indemnity, covenants and reimbursement obligations set
                    forth herein shall continue in full force and effect and shall survive the expiration or earlier termination of this Lease.

                   

                  

                

              

               

              
                
                  	Lease Schedule (standard FMV) 4.1.06

                        	Page 1 of  3

                        

                

                
                  

              

              
                6.       Tax Matters. Lessee represents, warrants and agrees
                    that (i) Lessee will not claim that Lessee is the owner of the Equipment or that Lessee is otherwise entitled to all or any of the Tax Benefits; (ii) the Equipment will not require any improvements,  modifications, or additions  (other
                    than ancillary  or incidental items  of removable  equipment)  in  order to be rendered complete for its intended use by  Lessee; (iii) the Equipment  will not constitute “limited use  property”  within the meaning of Rev. Proc.
                    2001-28; (iv) during the Lease  Term, Lessor  shall not be required  to  include in its  gross income for federal income tax purposes (1) any amount derived from the cost of any alteration, addition, improvement, modification,
                    replacement, or substitution of the Equipment or from any refund or  credit  from  the  Vendor  of  the Equipment  or  (2) any  foreign  source  income under Section 863 of the  Code; (v) the  Equipment  will not constitute “public
                    utility property” or “tax-exempt use  property” within the meaning of  Sections  168(i)(10)  or  168(h)  of the  Code; and (vi) the Equipment constitutes “qualified property” eligible for the additional “bonus depreciation” deduction
                    allowance described in Section 168(k) of the Internal Revenue Code of 1986, as amended,  and Lessee acknowledges  that Lessor has assumed such eligibility in reliance upon the foregoing representation and warranty of Lessee. The
                    definition of “Tax Benefits• set forth in Section 7(c) of the Master Lease is hereby amended to include such allowance, and any loss, disallowance, recapture or delay in claiming of such allowance shall constitute a “Tax Loss” as
                    defined therein.

                

                

                7.       Further Representations and Agreements. Lessee represents, warrants and agrees as follows: (a) all representations and warranties of Lessee contained in the Master Lease are
                    restated as of the Acceptance Date and are true and correct as of such date; (b) there has been no material adverse change in the operations, business, properties or condition, financial or otherwise, of Lessee or any Guarantor since October 31. 2019; (c) there exists no Default
                    or Event of Default as of the Acceptance Date; and (d) the operation and maintenance of any Equipment in the ordinary course by Lessee does not require the entry into any software or other intellectual property rights agreement with any
                    licensor or other person, except as disclosed to Lessor in writing prior to the Acceptance Date.

                 

                
                  8.       Lease Options.

                

                 

                (A)   Extension: Purchase Options.. Provided no Event of Default has occurred and remains uncured, and upon Lessee having provided
                    Lessor with written notice not more than 360 days or less than 180 days prior to expiration of the Lease Term, Lessee may irrevocably elect to:

                 

                	 	(i)	
                        extend the Lease Term as to all and not less than all of the Equipment under this Schedule for a renewal period to be agreed upon by Lessee and Lessor for an amount equal to the then fair market
                          rental value of the Equipment, as determined by Lessor, plus applicable taxes, payable monthly by Lessee to Lessor on the first day of each month during the extension term, or

                      

                 

                	

                      	(ii)	
                        purchase all of Lessor’s right, title and interest in and to all, but not less than all, of the Equipment under this Schedule, free from all liens
                            and encumbrances created by Lessor, but otherwise on an “AS-IS, WHERE-IS,” quitclaim basis, for a
                            purchase price equal to: the then fair market value of the Equipment, as determined by Lessor; plus all Base Rent installments, late charges and other amounts then due and owing under the Lease; plus all applicable taxes, assessments and other charges due or payable in connection with the sale of the Equipment (collectively, the “Purchase Price”). Lessee shall pay
                            Lessor the Purchase Price on or before the expiration of the Base Term in immediately available funds.

                      

                 

                As used herein, “fair market
                    value” means the amount which would be obtained in an arm’s-length transaction between an informed and willing buyer-user (other than a buyer-user currently in possession or
                    a used equipment or scrap dealer) and an informed and willing seller, each under no compulsion to buy or sell, and “fair market rental value” means the amount which would be obtained in an arm’s-length transaction between an informed and willing lessee (other than a lessee currently in possession) and an informed and willing
                    lessor, each under no compulsion to lease; provided, however, that in each such determination (a) the costs of removal of any Equipment from the location of current use shall not be a deduction from such value, (b) it shall be assumed (whether or not the same be true) that the
                    Equipment has been maintained and would have been returned to Lessor in compliance with the requirements of this Lease, and (c) if any Equipment has been attached to or installed on or in any other property leased or owned by Lessee,
                    the value for such Equipment shall be determined on an installed basis, in place and in use.

                  

                

                

              

               

               

              
                
                  	Lease Schedule (standard FMV) 4.1.06

                        	Page 2 of  3

                        

                

                
                  

              

              
              
                
                  (B)     Early Buy-Out.   Provided no Event of Default has occurred and then remains uncured, Lessee may, by written notice to

                      Lessor, purchase all, but not less than all, Equipment subject to this Schedule as of the due date for the Forty-Eighth (48), scheduled Base Rent installment (the “Early Buy-Out Date”).  Such notice to Lessor shall be given not more than 360 days or less than 180 days prior to the
                      Early Buy-Out Date and once given shall be irrevocable.   On the Early Buy-Out Date, Lessee shall pay to Lessor the Base Rent installment then due, together with all accrued interest, late charges and all other amounts then due and owing under this Lease, plus an
                      amount equal to Thirty-Nine and 8400/10000 percent (39.8400%)
                    of Lessor’s Cost for all Equipment, which Lessor and Lessee acknowledge represents a reasonable current estimate of the fair market value of the Equipment as of the Early Buy -Out Date, plus any applicable taxes. Upon such payment, the obligation of Lessee to pay Rent hereunder with respect to the Equipment after the Early
                      Buy-Out Date shall cease, the Lease Term of this Lease shall terminate on the Early Buy-Out Date,
                      and Lessor shall convey all of its right, title and interest in the Equipment to Lessee free from all liens and encumbrances created by Lessor, but otherwise on an “AS-IS, WHERE-IS,” quitclaim basis.

                   

                  9.       Holdback. Lessee has
                      requested, and Lessor has agreed, that Lessor withhold from the vendor of the Equipment a portion of the Lessor’s Cost in the amount of $3.576.780.16. (subject to adjustment as described below. the “Holdback Amount’’) for a period not to exceed 150 days (the “Holdback Period”). It shall be deemed an Event of Default in the event Lessee does not, for whatever reason, authorize Lessor (both in writing and through verbal telephonic confirmation) to disburse the Holdback Amount to the vendor prior to the expiration of the Holdback Period. The Holdback Amount is an estimate based on an amount withheld from the
                      vendor of the Equipment equal to JPY 370,000,000 at US Dollar to Japanese Yen (USO to JPY) exchange rates in effect on or about the date of
                      this Schedule. Lessee acknowledges and agrees that the Holdback Amount will be adjusted to reflect the US Dollar to Japanese Yen (USD to JPY) exchange rates in effect and available to
                      Lessor on or about the date on which Lessor funds the Holdback Amount to the vendor of the Equipment. Lessee authorizes Lessor to adjust all amounts set forth in this Schedule to reflect the actual and final Holdback Amount, as funded by Lessor, and Lessee shall promptly, upon Lessor’s request, confirm in writing the final US Dollar
                      equivalent of the Holdback Amount and any and all amounts adjusted in this Schedule as a result of the determination of the actual and final Holdback Amount.

                   

                  This Schedule and any other documents or instruments executed by either party in connection herewith (collectively the “Documents”), may be executed and delivered by facsimile signature or other electronic or digital means (including, without limitation, Adobe’s Portable Document Format (“PDF”)). Any such signature shall be of the same force and effect as
                      an original signature, it being the express intent of the parties to create a valid and legally
                      enforceable contract between them. The exchange and delivery of the Documents and the related signature pages via facsimile or as an attachment to electronic mail (including in PDF) shall constitute effective execution and delivery by
                      the parties and may be used by the parties for all purposes. Notwithstanding the foregoing, at the request of either party, the parties hereto
                      agree to exchange inked original replacement signature pages as soon thereafter as reasonably practicable.

                   

                  
                    	
                            
                              BANC OF AMERICA LEASING & CAPITAL, LLC

                                

                            

                          	PHOTRONICS, INC.

                     

                    

                  

                  
                    	Printed Name:	Alison R Hook	

                          	Printed Name:	JOHN P. JORDAN

                    	Title:	Senior Vice President

                          	

                          	Title:	Executive Vice President & CFO

                          

                    	  	

                          	Acceptance Date:	
                            December 30, 2020

                          

                  

                

                

                

                
                  Where multiple counterpart originals of this Schedule have been executed by Lessee and Lessor, only the counterpart marked “Lessor’s Copy” shall be deemed chattel paper evidencing the Lease of Equipment subject to this Schedule, and a security interest

                    in such chattel paper and Lease may be perfected through the transfer and possession of the “Lessor’s Copy”
                    of such Schedule only, without the need to transfer possession of the Master Lease, any Related Agreement or any other document executed and delivered in connection with this Lease.

                   

                  The terms applicable to the Lease of Equipment subject to this Schedule are supplemented by the following:

                  
                    	 	
                            Annex I:

                          	
                            Schedule of Stipulated Loss Values

                          

                  

                  
                    	 	
                            Annex II:

                          	
                            Supplemental Maintenance and Return Conditions

                          

                  

                  

                  

                

                
                  
                    	Lease Schedule (standard FMV) 4.1.06

                          	Page 3 of  3

                          

                  

                  
                    

                

                ANNEX I 

                TO AMENDED 

                SCHEDULE NO. 001

                48869-90000

                

                

                SCHEDULE OF 

                STIPULATED LOSS VALUES

                

                

                	
                        Base Rent

                        Installment 

                        Number

                      	
                        Stipulated Loss

                        Value 

                        Percentage

                      	
                        Base Rent

                        Installment 

                        Number

                      	
                        Stipulated

                        Loss Value 

                        Percentage

                      
	
                        0

                      	
                        103.50

                      	
                        31

                      	
                        66.41

                      
	
                        1

                      	
                        103.57

                      	
                        32

                      	
                        65.19

                      
	
                        2

                      	
                        103.63

                      	
                        33

                      	
                        63.96

                      
	
                        3

                      	
                        103.70

                      	
                        34

                      	
                        62.73

                      
	
                        4

                      	
                        102.11

                      	
                        35

                      	
                        61.50

                      
	
                        5

                      	
                        100.53

                      	
                        36

                      	
                        60.27

                      
	
                        6

                      	
                        98.94

                      	
                        37

                      	
                        59.04

                      
	
                        7

                      	
                        97.35

                      	
                        38

                      	
                        57.80

                      
	
                        8

                      	
                        95.75

                      	
                        39

                      	
                        56.57

                      
	
                        9

                      	
                        94.16

                      	
                        40

                      	
                        55.33

                      
	
                        10

                      	
                        92.56

                      	
                        41

                      	
                        54.09

                      
	
                        11

                      	
                        90.96

                      	
                        42

                      	
                        52.85

                      
	
                        12

                      	
                        89.35

                      	
                        43

                      	
                        51.61

                      
	
                        13

                      	
                        88.16

                      	
                        44

                      	
                        50.36

                      
	
                        14

                      	
                        86.97

                      	
                        45

                      	
                        49.11

                      
	
                        15

                      	
                        85.77

                      	
                        46

                      	
                        47.87

                      
	
                        16

                      	
                        84.57

                      	
                        47

                      	
                        46.62

                      
	
                        17

                      	
                        83.37

                      	
                        48

                      	
                        45.37

                      
	
                        18

                      	
                        82.17

                      	
                        49

                      	
                        44.11

                      
	
                        19

                      	
                        80.97

                      	
                        50

                      	
                        42.86

                      
	
                        20

                      	
                        79.77

                      	
                        51

                      	
                        41.60

                      
	
                        21

                      	
                        78.56

                      	
                        52

                      	
                        40.34

                      
	
                        22

                      	
                        77.35

                      	
                        53

                      	
                        39.08

                      
	
                        23

                      	
                        76.14

                      	
                        54

                      	
                        37.83

                      
	
                        24

                      	
                        74.93

                      	
                        55

                      	
                        36.57

                      
	
                        25

                      	
                        73.72

                      	
                        56

                      	
                        35.31

                      
	
                        26

                      	
                        72.51

                      	
                        57

                      	
                        34.05

                      
	
                        27

                      	
                        71.29

                      	
                        58

                      	
                        32.79

                      
	
                        28

                      	
                        70.07

                      	
                        59

                      	
                        31.52

                      
	
                        29

                      	
                        68.85

                      	
                        60

                      	
                        30.26

                      
	
                        30

                      	
                        67.63

                      	 	 

                 

                

                
                  
                    

                

                ANNEX II 

                TO AMENDED 

                SCHEDULE NO. 001

                48869-90000

                 

                SUPPLEMENTAL MAINTENANCE AND RETURN CONDITIONS

                SEMICONDUCTOR MANUFACTURING

                

                

                In addition to the maintenance and return provisions applicable to all Equipment set forth in the Master Lease, the following shall apply to the Equipment subject to the Schedule:

                 

                1.     Lessee will at all times use each item of Equipment for the purpose it was originally designed
                    and at the rated capacities as specified by the original equipment manufacturer (“OEM”). Lessee shall (i) use each item of Equipment leased under the Schedule (each, an “Item”) solely in the conduct of the Lessee’s business, for the purpose for which such item was designed, (ii) operate, maintain, service and repair each such item (A) in material compliance with (1) the OEM and/or Supplier’s maintenance and operating manuals, or service agreements, issued by the OEM and/or Supplier or authorized
                    service provider, if and to the extent then applicable to such Item, (2) the supply contract relating to such Item, and (3) all applicable laws pertaining to such Item; and (B) without limiting the foregoing, so as to cause each Item to
                    be in good repair and operating condition and in at least the same condition as when accepted by Lessee under the Schedule, but taking into account ordinary wear and tear, any permitted modifications, and any other circumstances
                    relating to the operation of such Item in the manner contemplated in the Master Lease and the Schedule, including this Annex; and (iii) maintain all records relating thereto, in a manner no less than Lessee’s normal customary practices
                    with respect to similar equipment.

                 

                2.     Equipment shall be under the OEM’s continuous maintenance plan for the duration of the Schedule
                    and at expiration of the Lease Term must be brought to the current revision level including but not limited to hardware and software upgrades and improvements. Maintenance and repairs to the Equipment shall be performed by the OEM or
                    its authorized representative with the authority to sign the maintenance, service and/or repair log. Written records of all work performed on the Equipment shall be dated and signed by the appropriate authority, and kept by the Lessee.

                 

                3.    If any parts comprising any Item purchased and leased by Lessor on the
                    Acceptance Date of the Schedule, or any replacement or substitute parts for such original parts, shall become worn out, lost, stolen, destroyed, damaged beyond repair or otherwise permanently unfit for use, Lessee, at its own expense , shall promptly replace such parts, or cause the same to be replaced, by replacement parts which are
                    free of all liens and of such quality and in such manner that such Item shall be in as good an operating condition as, and have a value, remaining useful life and utility at least equal to the value, remaining useful life and utility of, such Item prior to such replacement (assuming
                    such Item was, at the time of such replacement, in the condition required by the terms hereof). Immediately upon a conforming replacement part becoming incorporated or installed in or attached to such Item as above provided, without further act, (i) title to the replaced part shall vest in Lessee, free and clear of all rights of Lessor, and shall no longer be part of an
                  Item hereunder, (ii) good title to such replacement part shall vest in Lessor free and clear of all liens and (iii) such replacement part shall become subject to the Lease and be deemed part of such Item for all purposes to the same
                  extent as if originally incorporated or installed in or attached to such Item.

                 

                4.     Lessee shall ensure that all Equipment and the operation of such Equipment conforms to any and
                    all applicable local, state, and federal laws.

                 

                5.     Lessee shall ensure that any and all inspections, overhauls, rebuilds, or certifications of the
                    Equipment required to satisfy the terms and conditions of the Schedule, including this Annex, and the Master Lease that are scheduled within six months of the expiration of the Lease Term are completed prior to redelivery to Lessor.

                 

                
                  6.     All tooling and documentation must be current, present and available.

                

                 

                7.     Decommissioning, decontaminating, dismantling, crating and installation of correct locking
                    mechanisms, if any, are to be performed by the OEM, or its authorized service provider. Any transportation devices, such as crates, metal skids, lifting slings, brackets, etc. that were with the Equipment when originally delivered must
                    be used.

                 

                8.    At time of return, all process fluids, gases and solids are to be removed from the Equipment and disposed of in accordance with prevailing waste disposal laws and regulations. Equipment must be purged, cleaned and decontaminated to allow for interstate transfer, storage and subsequent use, which decontamination shall materially comply with (A) Lessee’ s practices for equipment of the same type (but in no event to a standard less stringent than applicable industry standards, (B) OEM requirements and (C) any then applicable federal environment
                  laws. Written certification of such removal and disposal shall be provided by the OEM or its authorized service provider

                 

                  

                
                  
                    

                

                Annex II - Supplemental Maintenance and Return Conditions 

                Page 2

                

                9.     Equipment must be in a condition such that it can perform to the OEM’s then applicable
                    specifications, and Lessee shall provide evidence, in the form of a letter from the OEM, that the Equipment qualifies for continued OEM maintenance service and OEM warranty, if applicable.

                 

                10.   At time of return, all passwords are to be reset to original, or made known to Lessor. In
                    addition, the previous 12-month operating file, calibration report and decommissioning report from the OEM must be provided to Lessor upon return.

                 

                11.   Until the Equipment is decommissioned in readiness for redelivery to Lessor, the Equipment must
                    remain operational with Lessee providing adequate electrical power, lighting, heat, water and compressed air necessary to maintain and demonstrate the Equipment to any potential buyer. Lessee shall permit Lessor to video record the
                    Equipment “under power” at the Lessee’s facility at times mutually agreeable to the Lessor and Lessee prior to de- installation at the end of the Lease Term.

                 

                12.  Unless Lessee elects any purchase option set forth in the Lease, or unless otherwise instructed by
                    Lessor, Lessee will notify Lessor in writing no less than 90 days prior to lease maturity and Equipment redelivery to facilitate coordination of inspection and other return logistics. If Lessee fails to give such notice, the Lease may,
                    at Lessor’s option, continue on a month-to-month basis for 90 days after delivery of such notice.

                 

                  

                
                  
                    

                

                
                  		

                        
	 	 
	Banc Of America Leasing & Capital, LLC

                        	Personal Property Taxes

                        

                

                

                
                  Master Lease Agreement No.  48869-90000

                   

                    

                  Amended Schedule No.  001

                   

                  Tax laws require Banc of America Leasing & Capital, LLC, as legal owner of your leased equipment, to be responsible for listing the
                    equipment under this lease contract, and any supplements thereto, for any Federal, State, County, or Municipal taxes applicable to this leased property, and for timely payment of taxes assessed thereon.

                   

                  Your lease agreement defines your responsibility for reimbursement of these taxes to Banc of America Leasing & Capital, LLC promptly as Lessee. 

                   

                  

                  Please acknowledge your understanding and acceptance of these conditions by signing and dating below:

                   

                  

                  I (We) will declare when listing property to taxing authorities, the equipment covered by this and any subsequent leases as LEASED equipment only.

                   

                  I (We) will immediately notify Banc of America Leasing & Capital, LLC of any change in location of this equipment.

                   

                  I (We) will reimburse

                    Banc of America Leasing & Capital, LLC promptly upon receipt of invoices for any tax.es paid by Banc of America Leasing & Capital, LLC

                    assessed on equipment we are leasing therefrom.

                  

                  

                  Equipment Location:

                

                

                
                  	Location

                          	Address

                          	City

                          	Country

                          	State

                          	ZIP

                          
	A

                        	10136 S. FEDERAL WAY

                        	BOISE

                        	ADA

                        	ID

                        	83716

                        

                

                 

                
                  	PHOTRONICS, INC.

                        	

                        
	

                        	

                        
	

                        	/s/ JOHN P. JORDAN	

                        
	BY

                        	

                        
	

                        	Executive Vice President & CFO

                        	

                        
	TITLE

                        	

                        
	

                        	2/8/21

                        	

                        
	DATE

                        	

                        

                

                 

                

                

                

                
                  	Personal Property Tax 7-06

                          	Page 1 of  1EX-4.4

 Exhibit 4.4 

XOMA CORPORATION 

AND 

_____________, AS WARRANT AGENT 

FORM OF COMMON STOCK 

WARRANT AGREEMENT 

DATED AS OF __________ 

 XOMA CORPORATION FORM OF
COMMON STOCK WARRANT AGREEMENT 
 THIS
COMMON STOCK WARRANT AGREEMENT (this “Agreement”), dated as of [•], between XOMA
CORPORATION, a Delaware corporation (the “Company”), and [•], a [corporation] [national banking association] organized and existing under the laws of [•] and having a corporate
trust office in [•], as warrant agent (the “Warrant Agent”). 

WHEREAS, the Company proposes to sell [If Warrants are sold with other securities
—[title of such other securities being offered] (the “Other Securities”) with] warrant certificates evidencing one or more warrants (the “Warrants” or, individually, a
“Warrant”) representing the right to purchase Common Stock of the Company, par value $0.0075 per share (the “Warrant Securities”), such warrant certificates and other warrant certificates issued
pursuant to this Agreement being herein called the “Warrant Certificates”; and 

WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing so to act, in connection with the issuance, registration, transfer, exchange, exercise and replacement of the Warrant Certificates, and in this Agreement wishes to set forth, among other things, the form and provisions of
the Warrant Certificates and the terms and conditions on which they may be issued, registered, transferred, exchanged, exercised and replaced. 

NOW THEREFORE, in consideration of the premises and of the mutual agreements
herein contained, the parties hereto agree as follows: 
 ARTICLE 1 

ISSUANCE OF WARRANTS AND EXECUTION AND 

DELIVERY OF WARRANT CERTIFICATES 

1.1 Issuance of Warrants. [If Warrants alone —Upon issuance, each Warrant Certificate shall
evidence one or more Warrants.] [If Other Securities and Warrants —Warrant Certificates will be issued in connection with the issuance of the Other Securities but shall be separately transferable and each Warrant Certificate shall
evidence one or more Warrants.] Each Warrant evidenced thereby shall represent the right, subject to the provisions contained herein and therein, to purchase one Warrant Security. [If Other Securities and Warrants —Warrant
Certificates will be issued with the Other Securities and each Warrant Certificate will evidence [•] Warrants for each [$[•] principal amount] [[•] shares] of Other Securities issued.] 

1.2 Execution and Delivery of Warrant Certificates. Each Warrant Certificate, whenever issued, shall
be in registered form substantially in the form set forth in Exhibit A hereto, shall be dated the date of its countersignature by the Warrant Agent and may have such letters, numbers, or other marks of identification or designation and such
legends or endorsements printed, lithographed or engraved thereon as the officers of the Company executing the same may approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this
Agreement, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange on which the Warrants may be listed, or to conform to usage. The Warrant
Certificates shall be signed on behalf of the Company by any of its present or future chief executive officers, presidents, senior vice presidents, vice presidents, chief financial officers, chief legal officers, treasurers, assistant treasurers,
controllers, assistant controllers, secretaries or assistant secretaries under its corporate seal reproduced thereon. Such signatures may be manual or facsimile signatures of such authorized officers and may be imprinted or otherwise reproduced on
the Warrant Certificates. The seal of the Company may be in the form of a facsimile thereof and may be impressed, affixed, imprinted or otherwise reproduced on the Warrant Certificates. 

  
 1 

 No Warrant Certificate shall be valid for any purpose, and no Warrant evidenced thereby
shall be exercisable, until such Warrant Certificate has been countersigned by the manual signature of the Warrant Agent. Such signature by the Warrant Agent upon any Warrant Certificate executed by the Company shall be conclusive evidence that the
Warrant Certificate so countersigned has been duly issued hereunder. 
 In case any officer of the Company who shall have signed any of the
Warrant Certificates either manually or by facsimile signature shall cease to be such officer before the Warrant Certificates so signed shall have been countersigned and delivered by the Warrant Agent, such Warrant Certificates may be countersigned
and delivered notwithstanding that the person who signed such Warrant Certificates ceased to be such officer of the Company; and any Warrant Certificate may be signed on behalf of the Company by such persons as, at the actual date of the execution
of such Warrant Certificate, shall be the proper officers of the Company, although at the date of the execution of this Agreement any such person was not such officer. 

The term “holder” or “holder of a Warrant Certificate” as used herein shall mean any person in
whose name at the time any Warrant Certificate shall be registered upon the books to be maintained by the Warrant Agent for that purpose. 

1.3 Issuance of Warrant Certificates. Warrant Certificates evidencing the right to purchase Warrant
Securities may be executed by the Company and delivered to the Warrant Agent upon the execution of this Agreement or from time to time thereafter. The Warrant Agent shall, upon receipt of Warrant Certificates duly executed on behalf of the Company,
countersign such Warrant Certificates and shall deliver such Warrant Certificates to or upon the order of the Company. 
 ARTICLE 2

 WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS 

2.1 Warrant Price. During the period specified in Section 2.2, each Warrant shall, subject to the terms of this Agreement
and the applicable Warrant Certificate, entitle the holder thereof to purchase the number of Warrant Securities specified in the applicable Warrant Certificate at an exercise price of $[•] per Warrant Security, subject to adjustment upon the
occurrence of certain events, as hereinafter provided. Such purchase price per Warrant Security is referred to in this Agreement as the “Warrant Price.” 

2.2 Duration of Warrants. Each Warrant may be exercised in whole or in part at any time, as specified
herein, on or after [the date thereof] [•] and at or before [•] p.m., [City] time, on [•] or such later date as the Company may designate by notice to the Warrant Agent and the holders of Warrant Certificates mailed to their addresses
as set forth in the record books of the Warrant Agent (the “Expiration Date”). Each Warrant not exercised at or before [•] p.m., [City] time, on the Expiration Date shall become void, and all rights of the holder of the
Warrant Certificate evidencing such Warrant under this Agreement shall cease. 
 2.3 Exercise of Warrants. 

(a) During the period specified in Section 2.2, the Warrants may be exercised to purchase a whole number of Warrant Securities in
registered form by providing certain information as set forth on the reverse side of the Warrant Certificate and by paying in full, in lawful money of the United States of America, [in cash or by certified check or official bank check in New York
Clearing House funds] [by bank wire transfer in immediately available funds] the Warrant Price for each Warrant Security 

  
 2 

 
with respect to which a Warrant is being exercised to the Warrant Agent at its corporate trust office, provided that such exercise is subject to receipt within five business days of such payment
by the Warrant Agent of the Warrant Certificate with the form of election to purchase Warrant Securities set forth on the reverse side of the Warrant Certificate properly completed and duly executed. The date on which payment in full of the Warrant
Price is received by the Warrant Agent shall, subject to receipt of the Warrant Certificate as aforesaid, be deemed to be the date on which the Warrant is exercised; provided, however, that if, at the date of receipt of such Warrant Certificates and
payment in full of the Warrant Price, the transfer books for the Warrant Securities purchasable upon the exercise of such Warrants shall be closed, no such receipt of such Warrant Certificates and no such payment of such Warrant Price shall be
effective to constitute the person so designated to be named as the holder of record of such Warrant Securities on such date, but shall be effective to constitute such person as the holder of record of such Warrant Securities for all purposes at the
opening of business on the next succeeding day on which the transfer books for the Warrant Securities purchasable upon the exercise of such Warrants shall be opened, and the certificates for the Warrant Securities in respect of which such Warrants
are then exercised shall be issuable as of the date on such next succeeding day on which the transfer books shall next be opened, and until such date the Company shall be under no duty to deliver any certificate for such Warrant Securities. The
Warrant Agent shall deposit all funds received by it in payment of the Warrant Price in an account of the Company maintained with it and shall advise the Company by telephone at the end of each day on which a payment for the exercise of Warrants is
received of the amount so deposited to its account. The Warrant Agent shall promptly confirm such telephone advice to the Company in writing. 

(b) The Warrant Agent shall, from time to time, as promptly as practicable, advise the Company of (i) the number of Warrant
Securities with respect to which Warrants were exercised, (ii) the instructions of each holder of the Warrant Certificates evidencing such Warrants with respect to delivery of the Warrant Securities to which such holder is entitled upon such
exercise, (iii) delivery of Warrant Certificates evidencing the balance, if any, of the Warrants for the remaining Warrant Securities after such exercise, and (iv) such other information as the Company shall reasonably require. 

(c) As soon as practicable after the exercise of any Warrant, the Company shall issue to or upon the order of the holder of the Warrant
Certificate evidencing such Warrant the Warrant Securities to which such holder is entitled, in fully registered form, registered in such name or names as may be directed by such holder. If fewer than all of the Warrants evidenced by such Warrant
Certificate are exercised, the Company shall execute, and an authorized officer of the Warrant Agent shall manually countersign and deliver, a new Warrant Certificate evidencing Warrants for the number of Warrant Securities remaining unexercised.

 (d) The Company shall not be required to pay any stamp or other tax or other governmental charge required to be paid in connection
with any transfer involved in the issue of the Warrant Securities, and in the event that any such transfer is involved, the Company shall not be required to issue or deliver any Warrant Security until such tax or other charge shall have been paid or
it has been established to the Company’s satisfaction that no such tax or other charge is due. 
 (e) Prior to the issuance of
any Warrants there shall have been reserved, and the Company shall at all times through the Expiration Date keep reserved, out of its authorized but unissued Warrant Securities, a number of shares sufficient to provide for the exercise of the
Warrants. 

  
 3 

 ARTICLE 3 

OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF 

WARRANT CERTIFICATES 

3.1 No Rights as Warrant Securityholder Conferred by Warrants or Warrant
Certificates. No Warrant Certificate or Warrant evidenced thereby shall entitle the holder thereof to any of the rights of a holder of Warrant Securities, including, without limitation, the right to receive the payment of dividends or
distributions, if any, on the Warrant Securities or to exercise any voting rights, except to the extent expressly set forth in this Agreement or the applicable Warrant Certificate. 

3.2 Lost, Stolen, Mutilated or Destroyed Warrant Certificates. Upon receipt by the Warrant Agent of
evidence reasonably satisfactory to it and the Company of the ownership of and the loss, theft, destruction or mutilation of any Warrant Certificate and/or indemnity reasonably satisfactory to the Warrant Agent and the Company and, in the case of
mutilation, upon surrender of the mutilated Warrant Certificate to the Warrant Agent for cancellation, then, in the absence of notice to the Company or the Warrant Agent that such Warrant Certificate has been acquired by a bona fide purchaser, the
Company shall execute, and an authorized officer of the Warrant Agent shall manually countersign and deliver, in exchange for or in lieu of the lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant Certificate of the same tenor and
evidencing Warrants for a like number of Warrant Securities. Upon the issuance of any new Warrant Certificate under this Section 3.2, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may
be imposed in relation thereto and any other expenses (including the fees and expenses of the Warrant Agent) in connection therewith. Every substitute Warrant Certificate executed and delivered pursuant to this Section 3.2 in lieu of any lost,
stolen or destroyed Warrant Certificate shall represent an additional contractual obligation of the Company, whether or not the lost, stolen or destroyed Warrant Certificate shall be at any time enforceable by anyone, and shall be entitled to the
benefits of this Agreement equally and proportionately with any and all other Warrant Certificates duly executed and delivered hereunder. The provisions of this Section 3.2 are exclusive and shall preclude (to the extent lawful) all other
rights and remedies with respect to the replacement of mutilated, lost, stolen or destroyed Warrant Certificates. 
 3.3 Holder
of Warrant Certificate May Enforce Rights. Notwithstanding any of the provisions of this Agreement, any holder of a Warrant Certificate, without the consent of the Warrant Agent, the holder of any Warrant Securities or the
holder of any other Warrant Certificate, may, in such holder’s own behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company suitable to enforce, or otherwise in
respect of, such holder’s right to exercise the Warrants evidenced by such holder’s Warrant Certificate in the manner provided in such holder’s Warrant Certificate and in this Agreement. 

3.4 Adjustments. 

(a) In case the Company shall at any time subdivide its outstanding shares of Common Stock into a greater number of shares, the Warrant
Price in effect immediately prior to such subdivision shall be proportionately reduced and the number of Warrant Securities purchasable under the Warrants shall be proportionately increased. Conversely, in case the outstanding shares of Common Stock
of the Company shall be combined into a smaller number of shares, the Warrant Price in effect immediately prior to such combination shall be proportionately increased and the number of Warrant Securities purchasable under the Warrants shall be
proportionately decreased. 

  
 4 

 (b) If at any time or from time to time the holders of Common Stock (or any shares of
stock or other securities at the time receivable upon the exercise of the Warrants) shall have received or become entitled to receive, without payment therefor, 

(i) Common Stock or any shares of stock or other securities which are at any time directly or indirectly convertible into or
exchangeable for Common Stock, or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution; 

(ii) any cash paid or payable otherwise than as a cash dividend paid or payable out of the Company’s current or retained
earnings; 
 (iii) any evidence of the Company’s indebtedness or rights to subscribe for or purchase the Company’s
indebtedness; or 
 (iv) Common Stock or additional stock or other securities or property (including cash) by way of spinoff, split-up, reclassification, combination of shares or similar corporate rearrangement (other than shares of Common Stock issued as a stock split or adjustments in respect of which shall be covered by the terms of
Section 3.4(a) above), then and in each such case, the holder of each Warrant shall, upon the exercise of the Warrant, be entitled to receive, in addition to the number of Warrant Securities receivable thereupon, and without payment of any
additional consideration therefore, the amount of stock and other securities and property (including cash and indebtedness or rights to subscribe for or purchase indebtedness) which such holder would hold on the date of such exercise had such holder
been the holder of record of such Warrant Securities as of the date on which holders of Common Stock received or became entitled to receive such shares or all other additional stock and other securities and property. 

(c) In case of (i) any reclassification, capital reorganization, or change in the Common Stock of the Company (other than as a
result of a subdivision, combination, or stock dividend provided for in Section 3.4(a) or Section 3.4(b) above), (ii) share exchange, merger or similar transaction of the Company with or into another person or entity (other than a share
exchange, merger or similar transaction in which the Company is the acquiring or surviving corporation and which does not result in any change in the Common Stock other than the issuance of additional shares of Common Stock) or (iii) the sale,
exchange, lease, transfer or other disposition of all or substantially all of the properties and assets of the Company as an entirety (in any such case, a “Reorganization Event”), then, as a condition of such Reorganization
Event, lawful provisions shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the holders of the Warrants, so that the holders of the Warrants shall have the right at any time prior
to the expiration of the Warrants to purchase, at a total price equal to that payable upon the exercise of the Warrants, the kind and amount of shares of stock and other securities and property receivable in connection with such Reorganization Event
by a holder of the same number of Warrant Securities as were purchasable by the holders of the Warrants immediately prior to such Reorganization Event. In any such case appropriate provisions shall be made with respect to the rights and interests of
the holders of the Warrants so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property deliverable upon exercise the Warrants, and appropriate adjustments shall be made to the
Warrant Price payable hereunder provided the aggregate purchase price shall remain the same. In the case of any transaction described in clauses (ii) and (iii) above, the Company shall thereupon be relieved of any further obligation hereunder
or under the Warrants, and the Company as the predecessor corporation may thereupon or at any time thereafter be dissolved, wound up or liquidated. Such successor or assuming entity thereupon may cause to be signed, and may issue either in its own
name or in the name of the Company, any or all of the Warrants issuable hereunder which heretofore shall not have been signed by the Company, and 

  
 5 

 
may execute and deliver securities in its own name, in fulfillment of its obligations to deliver Warrant Securities upon exercise of the Warrants. All the Warrants so issued shall in all respects
have the same legal rank and benefit under this Agreement as the Warrants theretofore or thereafter issued in accordance with the terms of this Agreement as though all of such Warrants had been issued at the date of the execution hereof. In any case
of any such Reorganization Event, such changes in phraseology and form (but not in substance) may be made in the Warrants thereafter to be issued as may be appropriate. The Warrant Agent may receive a written opinion of legal counsel as conclusive
evidence that any such Reorganization Event complies with the provisions of this Section 3.4. 
 (d) The Company may, at its
option, at any time until the Expiration Date, reduce the then current Warrant Price to any amount deemed appropriate by the Board of Directors of the Company for any period not exceeding twenty consecutive days (as evidenced in a resolution adopted
by such Board of Directors), but only upon giving the notices required by Section 3.5 at least ten days prior to taking such action. 

(e) Except as herein otherwise expressly provided, no adjustment in the Warrant Price shall be made by reason of the issuance of shares
of Common Stock, or securities convertible into or exchangeable for shares of Common Stock, or securities carrying the right to purchase any of the foregoing or for any other reason whatsoever. 

(f) No fractional Warrant Securities shall be issued upon the exercise of Warrants. If more than one Warrant shall be exercised at one
time by the same holder, the number of full Warrant Securities which shall be issuable upon such exercise shall be computed on the basis of the aggregate number of Warrant Securities purchased pursuant to the Warrants so exercised. Instead of any
fractional Warrant Security which would otherwise be issuable upon exercise of any Warrant, the Company shall pay a cash adjustment in respect of such fraction in an amount equal to the same fraction of the last reported sale price (or bid price if
there were no sales) per Warrant Security, in either case as reported on the principal registered national securities exchange on which the Warrant Securities are listed or admitted to trading on the business day that next precedes the day of
exercise or, if the Warrant Securities are not then listed or admitted to trading on any registered national securities exchange, the average of the closing high bid and low asked prices as reported on the OTC Bulletin Board Service (the
“OTC Bulletin Board”) operated by the Financial Industry Regulatory Authority, Inc. (“FINRA” ) or, if not available on the OTC Bulletin Board, then the average of the closing high bid and low asked
prices as reported on any other U.S. quotation medium or inter-dealer quotation system on such date, or if on any such date the Warrant Securities are not listed or admitted to trading on a registered national securities exchange, are not included
in the OTC Bulletin Board, and are not quoted on any other U.S. quotation medium or inter-dealer quotation system, an amount equal to the same fraction of the average of the closing bid and asked prices as furnished by any FINRA member firm selected
from time to time by the Company for that purpose at the close of business on the business day that next precedes the day of exercise. 

(g) Whenever the Warrant Price then in effect is adjusted as herein provided, the Company shall mail to each holder of the Warrants at
such holder’s address as it shall appear on the books of the Company a statement setting forth the adjusted Warrant Price then and thereafter effective under the provisions hereof, together with the facts, in reasonable detail, upon which such
adjustment is based. 
 (h) Notwithstanding anything to the contrary herein, in no event shall the Warrant Price, as adjusted in
accordance with the terms hereof, be less than the par value per share of Common Stock. 

  
 6 

 3.5 Notice to Warrantholders. In case the Company shall
(a) effect any dividend or distribution described in Section 3.4(b), (b) effect any Reorganization Event, (c) make any distribution on or in respect of the Common Stock in connection with the dissolution, liquidation or winding up of
the Company, or (d) reduce the then current Warrant Price pursuant to Section 3.4(d), then the Company shall mail to each holder of Warrants at such holder’s address as it shall appear on the books of the Warrant Agent, at least ten
days prior to the applicable date hereinafter specified, a notice stating (x) the record date for such dividend or distribution, or, if a record is not to be taken, the date as of which the holders of record of Common Stock that will be
entitled to such dividend or distribution are to be determined, (y) the date on which such Reorganization Event, dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected that holders of
Common Stock of record shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such Reorganization Event, dissolution, liquidation or winding up, or (z) the first date on which the then
current Warrant Price shall be reduced pursuant to Section 3.4(d). No failure to mail such notice nor any defect therein or in the mailing thereof shall affect any such transaction or any adjustment in the Warrant Price required by
Section 3.4. 
 3.6 [If the Warrants are Subject to Acceleration by the Company, Insert — Acceleration of Warrants by the
Company. 
 (a) At any time on or after [•], the Company shall have the right to accelerate any or all Warrants at any time by
causing them to expire at the close of business on the day next preceding a specified date (the “Acceleration Date”), if the Market Price (as hereinafter defined) of the Common Stock equals or exceeds [•] percent
([•]%) of the then effective Warrant Price on any twenty Trading Days (as hereinafter defined) within a period of thirty consecutive Trading Days ending no more than five Trading Days prior to the date on which the Company gives notice to the
Warrant Agent of its election to accelerate the Warrants. 
 (b) (b) “Market Price” for each Trading
Day shall be, if the Common Stock is listed or admitted to trading on any registered national securities exchange, the last reported sale price, regular way (or, if no such price is reported, the average of the reported closing bid and asked prices,
regular way) of Common Stock, in either case as reported on the principal registered national securities exchange on which the Common Stock is listed or admitted to trading or, if not listed or admitted to trading on any registered national
securities exchange, the average of the closing high bid and low asked prices as reported on the OTC Bulletin Board operated by FINRA, or if not available on the OTC Bulletin Board, then the average of the closing high bid and low asked prices as
reported on any other U.S. quotation medium or inter-dealer quotation system, or if on any such date the shares of Common Stock are not listed or admitted to trading on a registered national securities exchange, are not included in the OTC Bulletin
Board, and are not quoted on any other U.S. quotation medium or inter-dealer quotation system, the average of the closing bid and asked prices as furnished by any FINRA member firm selected from time to time by the Company for that purpose.
“Trading Day” shall be each Monday through Friday, other than any day on which securities are not traded in the system or on the exchange that is the principal market for the Common Stock, as determined by the Board of Directors of the
Company. In the event of an acceleration of less than all of the Warrants, the Warrant Agent shall select the Warrants to be accelerated by lot, pro rata or in such other manner as it deems, in its discretion, to be fair and appropriate. 

(c) Notice of an acceleration specifying the Acceleration Date shall be sent by mail first class, postage prepaid, to each registered
holder of a Warrant Certificate representing a Warrant accelerated at such holder’s address appearing on the books of the Warrant Agent not more than sixty days nor less than thirty days before the Acceleration Date. Such notice of an
acceleration also shall be given no more than twenty days, and no less than ten days, prior to the mailing of notice to registered holders of Warrants pursuant to this Section 3.6, by publication at least once in a newspaper of general
circulation in the City of New York. 

  
 7 

 (d) Any Warrant accelerated may be exercised until [•] p.m., [City] time, on the
business day next preceding the Acceleration Date. The Warrant Price shall be payable as provided in Section 2.] 
 ARTICLE 4

 EXCHANGE AND TRANSFER OF WARRANT CERTIFICATES 

4.1 Exchange and Transfer of Warrant Certificates. Upon surrender at the corporate trust office of the Warrant Agent, Warrant
Certificates evidencing Warrants may be exchanged for Warrant Certificates in other denominations evidencing such Warrants or the transfer thereof may be registered in whole or in part; provided that such other Warrant Certificates evidence Warrants
for the same aggregate number of Warrant Securities as the Warrant Certificates so surrendered. The Warrant Agent shall keep, at its corporate trust office, books in which, subject to such reasonable regulations as it may prescribe, it shall
register Warrant Certificates and exchanges and transfers of outstanding Warrant Certificates, upon surrender of the Warrant Certificates to the Warrant Agent at its corporate trust office for exchange or registration of transfer, properly endorsed
or accompanied by appropriate instruments of registration of transfer and written instructions for transfer, all in form satisfactory to the Company and the Warrant Agent. No service charge shall be made for any exchange or registration of transfer
of Warrant Certificates, but the Company may require payment of a sum sufficient to cover any stamp or other tax or other governmental charge that may be imposed in connection with any such exchange or registration of transfer. Whenever any Warrant
Certificates are so surrendered for exchange or registration of transfer, an authorized officer of the Warrant Agent shall manually countersign and deliver to the person or persons entitled thereto a Warrant Certificate or Warrant Certificates duly
authorized and executed by the Company, as so requested. The Warrant Agent shall not be required to effect any exchange or registration of transfer which will result in the issuance of a Warrant Certificate evidencing a Warrant for a fraction of a
Warrant Security or a number of Warrants for a whole number of Warrant Securities and a fraction of a Warrant Security. All Warrant Certificates issued upon any exchange or registration of transfer of Warrant Certificates shall be the valid
obligations of the Company, evidencing the same obligations and entitled to the same benefits under this Agreement as the Warrant Certificate surrendered for such exchange or registration of transfer. 

4.2 Treatment of Holders of Warrant Certificates. The Company, the Warrant
Agent and all other persons may treat the registered holder of a Warrant Certificate as the absolute owner thereof for any purpose and as the person entitled to exercise the rights represented by the Warrants evidenced thereby, any notice to the
contrary notwithstanding. 
 4.3 Cancellation of Warrant Certificates. Any Warrant Certificate
surrendered for exchange, registration of transfer or exercise of the Warrants evidenced thereby shall, if surrendered to the Company, be delivered to the Warrant Agent and all Warrant Certificates surrendered or so delivered to the Warrant Agent
shall be promptly canceled by the Warrant Agent and shall not be reissued and, except as expressly permitted by this Agreement, no Warrant Certificate shall be issued hereunder in exchange therefor or in lieu thereof. The Warrant Agent shall deliver
to the Company from time to time or otherwise dispose of canceled Warrant Certificates in a manner satisfactory to the Company. 

  
 8 

 ARTICLE 5 

CONCERNING THE WARRANT AGENT 

5.1 Warrant Agent. The Company hereby appoints [•] as Warrant Agent of the Company in respect of the Warrants and the
Warrant Certificates upon the terms and subject to the conditions herein set forth, and [•] hereby accepts such appointment. The Warrant Agent shall have the powers and authority granted to and conferred upon it in the Warrant Certificates and
hereby and such further powers and authority to act on behalf of the Company as the Company may hereafter grant to or confer upon it. All of the terms and provisions with respect to such powers and authority contained in the Warrant Certificates are
subject to and governed by the terms and provisions hereof. 
 5.2 Conditions of Warrant
Agent’s Obligations. The Warrant Agent accepts its obligations herein set forth upon the terms and conditions hereof, including the following to all of which the Company agrees and to all of which the rights hereunder of the
holders from time to time of the Warrant Certificates shall be subject: 
 (a) Compensation and Indemnification.
The Company agrees promptly to pay the Warrant Agent the compensation to be agreed upon with the Company for all services rendered by the Warrant Agent and to reimburse the Warrant Agent for reasonable out-of-pocket expenses (including reasonable counsel fees) incurred without negligence, bad faith or willful misconduct by the Warrant Agent in connection with the services rendered hereunder by the Warrant
Agent. The Company also agrees to indemnify the Warrant Agent for, and to hold it harmless against, any loss, liability or expense incurred without negligence, bad faith or willful misconduct on the part of the Warrant Agent, arising out of or in
connection with its acting as Warrant Agent hereunder, including the reasonable costs and expenses of defending against any claim of such liability. 

(b) Agent for the Company. In acting under this Agreement and in connection with the Warrant
Certificates, the Warrant Agent is acting solely as agent of the Company and does not assume any obligations or relationship of agency or trust for or with any of the holders of Warrant Certificates or beneficial owners of Warrants. 

(c) Counsel. The Warrant Agent may consult with counsel satisfactory to it, which may include counsel for the Company, and the
written advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the advice of such counsel. 

(d) Documents. The Warrant Agent shall be protected and shall incur no liability for or in respect of any action taken or
omitted by it in reliance upon any Warrant Certificate, notice, direction, consent, certificate, affidavit, statement or other paper or document reasonably believed by it to be genuine and to have been presented or signed by the proper parties. 

(e) Certain Transactions. The Warrant Agent, and its officers, directors and employees, may become the owner of, or acquire any
interest in, Warrants, with the same rights that it or they would have if it were not the Warrant Agent hereunder, and, to the extent permitted by applicable law, it or they may engage or be interested in any financial or other transaction with the
Company and may act on, or as depositary, trustee or agent for, any committee or body of holders of Warrant Securities or other obligations of the Company as freely as if it were not the Warrant Agent hereunder. Nothing in this Agreement shall be
deemed to prevent the Warrant Agent from acting as trustee under any indenture to which the Company is a party. 

  
 9 

 (f) No Liability for Interest. Unless otherwise agreed with the
Company, the Warrant Agent shall have no liability for interest on any monies at any time received by it pursuant to any of the provisions of this Agreement or of the Warrant Certificates. 

(g) No Liability for Invalidity. The Warrant Agent shall have no liability with respect to any invalidity of this
Agreement or any of the Warrant Certificates (except as to the Warrant Agent’s countersignature thereon). 
 (h) No
Responsibility for Representations. The Warrant Agent shall not be responsible for any of the recitals or representations herein or in the Warrant Certificates (except as to the Warrant Agent’s countersignature thereon), all
of which are made solely by the Company. 
 (i) No Implied Obligations. The Warrant Agent shall be obligated to perform only
such duties as are herein and in the Warrant Certificates specifically set forth and no implied duties or obligations shall be read into this Agreement or the Warrant Certificates against the Warrant Agent. The Warrant Agent shall not be under any
obligation to take any action hereunder which may tend to involve it in any expense or liability, the payment of which within a reasonable time is not, in its reasonable opinion, assured to it. The Warrant Agent shall not be accountable or under any
duty or responsibility for the use by the Company of any of the Warrant Certificates authenticated by the Warrant Agent and delivered by it to the Company pursuant to this Agreement or for the application by the Company of the proceeds of the
Warrant Certificates. The Warrant Agent shall have no duty or responsibility in case of any default by the Company in the performance of its covenants or agreements contained herein or in the Warrant Certificates or in the case of the receipt of any
written demand from a holder of a Warrant Certificate with respect to such default, including, without limiting the generality of the foregoing, any duty or responsibility to initiate or attempt to initiate any proceedings at law or otherwise or,
except as provided in Section 6.2 hereof, to make any demand upon the Company. 
 5.3 Resignation, Removal and Appointment of
Successors. 
 (a) The Company agrees, for the benefit of the holders from time to time of the Warrant Certificates, that there
shall at all times be a Warrant Agent hereunder until all the Warrants have been exercised or are no longer exercisable. 
 (b) The
Warrant Agent may at any time resign as agent by giving written notice to the Company of such intention on its part, specifying the date on which its desired resignation shall become effective; provided that such date shall not be less than three
months after the date on which such notice is given unless the Company otherwise agrees. The Warrant Agent hereunder may be removed at any time by the filing with it of an instrument in writing signed by or on behalf of the Company and specifying
such removal and the intended date when it shall become effective. Such resignation or removal shall take effect upon the appointment by the Company, as hereinafter provided, of a successor Warrant Agent (which shall be a bank or trust company
authorized under the laws of the jurisdiction of its organization to exercise corporate trust powers) and the acceptance of such appointment by such successor Warrant Agent. The obligation of the Company under Section 5.2(a) shall continue to
the extent set forth therein notwithstanding the resignation or removal of the Warrant Agent. 
 (c) In case at any time the Warrant
Agent shall resign, or shall be removed, or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or shall commence a voluntary case under the Federal bankruptcy laws, as now or hereafter constituted, or under any other
applicable Federal or state bankruptcy, insolvency or similar law or shall consent to the appointment of or taking possession by a receiver, custodian, liquidator, assignee, trustee, sequestrator (or other similar official) of the Warrant Agent or
its property or affairs, or shall make an assignment for the benefit of creditors, or 

  
 10 

 
shall admit in writing its inability to pay its debts generally as they become due, or shall take corporate action in furtherance of any such action, or a decree or order for relief by a court
having jurisdiction in the premises shall have been entered in respect of the Warrant Agent in an involuntary case under the Federal bankruptcy laws, as now or hereafter constituted, or any other applicable Federal or state bankruptcy, insolvency or
similar law, or a decree or order by a court having jurisdiction in the premises shall have been entered for the appointment of a receiver, custodian, liquidator, assignee, trustee, sequestrator (or similar official) of the Warrant Agent or of its
property or affairs, or any public officer shall take charge or control of the Warrant Agent or of its property or affairs for the purpose of rehabilitation, conservation, winding up or liquidation, a successor Warrant Agent, qualified as aforesaid,
shall be appointed by the Company by an instrument in writing, filed with the successor Warrant Agent. Upon the appointment as aforesaid of a successor Warrant Agent and acceptance by the successor Warrant Agent of such appointment, the Warrant
Agent shall cease to be Warrant Agent hereunder. 
 (d) Any successor Warrant Agent appointed hereunder shall execute, acknowledge
and deliver to its predecessor and to the Company an instrument accepting such appointment hereunder, and thereupon such successor Warrant Agent, without any further act, deed or conveyance, shall become vested with all the authority, rights,
powers, trusts, immunities, duties and obligations of such predecessor with like effect as if originally named as Warrant Agent hereunder, and such predecessor, upon payment of its charges and disbursements then unpaid, shall thereupon become
obligated to transfer, deliver and pay over, and such successor Warrant Agent shall be entitled to receive, all monies, securities and other property on deposit with or held by such predecessor, as Warrant Agent hereunder. 

(e) Any corporation into which the Warrant Agent hereunder may be merged or converted or any corporation with which the Warrant Agent
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Warrant Agent shall be a party, or any corporation to which the Warrant Agent shall sell or otherwise transfer all or substantially all the
assets and business of the Warrant Agent, provided that it shall be qualified as aforesaid, shall be the successor Warrant Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties
hereto. 
 ARTICLE 6 

MISCELLANEOUS 
 6.1
Amendment. This Agreement may be amended by the parties hereto, without the consent of the holder of any Warrant Certificate, for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained
herein, or making any other provisions with respect to matters or questions arising under this Agreement as the Company and the Warrant Agent may deem necessary or desirable; provided that such action shall not materially adversely affect the
interests of the holders of the Warrant Certificates. 
 6.2 Notices and Demands to the Company
and Warrant Agent. If the Warrant Agent shall receive any notice or demand addressed to the Company by the holder of a Warrant Certificate pursuant to the provisions of the Warrant Certificates, the Warrant Agent shall promptly
forward such notice or demand to the Company. 
 6.3 Addresses. Any communication from the Company to the Warrant Agent with
respect to this Agreement shall be addressed to [•], Attention: [•] and any communication from the Warrant Agent to the Company with respect to this Agreement shall be addressed to XOMA Corporation, 2200 Powell Street, Suite 310,
Emeryville, CA 94608, Attention: [•] (or such other address as shall be specified in writing by the Warrant Agent or by the Company). 

  
 11 

 6.4 Governing Law. This Agreement and each Warrant Certificate issued
hereunder shall be governed by and construed in accordance with the laws of the State of New York. 
 6.5 Delivery of
Prospectus. The Company shall furnish to the Warrant Agent sufficient copies of a prospectus meeting the requirements of the Securities Act of 1933, as amended, relating to the Warrant Securities deliverable upon exercise of the Warrants
(the “Prospectus”), and the Warrant Agent agrees that upon the exercise of any Warrant, the Warrant Agent will deliver to the holder of the Warrant Certificate evidencing such Warrant, prior to or concurrently with the
delivery of the Warrant Securities issued upon such exercise, a Prospectus. The Warrant Agent shall not, by reason of any such delivery, assume any responsibility for the accuracy or adequacy of such Prospectus. 

6.6 Obtaining of Governmental Approvals. The Company will from time to time take all action which may be necessary
to obtain and keep effective any and all permits, consents and approvals of governmental agencies and authorities and securities act filings under United States Federal and state laws (including without limitation a registration statement in respect
of the Warrants and Warrant Securities under the Securities Act of 1933, as amended), which may be or become requisite in connection with the issuance, sale, transfer, and delivery of the Warrant Securities issued upon exercise of the Warrants, the
issuance, sale, transfer and delivery of the Warrants or upon the expiration of the period during which the Warrants are exercisable. 

6.7 Persons Having Rights Under the Agreement. Nothing in this Agreement shall give to any person other than the Company, the
Warrant Agent and the holders of the Warrant Certificates any right, remedy or claim under or by reason of this Agreement. 
 6.8
Headings. The descriptive headings of the several Articles and Sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 

6.9 Counterparts. This Agreement may be executed in any number of counterparts, each of which as so executed shall be deemed to
be an original, but such counterparts shall together constitute but one and the same instrument. 
 6.10 Inspection of
Agreement. A copy of this Agreement shall be available at all reasonable times at the principal corporate trust office of the Warrant Agent for inspection by the holder of any Warrant Certificate. The Warrant Agent may require such holder
to submit such holder’s Warrant Certificate for inspection by it. 

  
 12 

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

 

			
	XOMA Corporation, as Company
		
	By:	 	 
	Name:	 	 
	Title:	 	 
		
	ATTEST:	 	 
		
		 	 

  

			
	COUNTERSIGNED
	
	[•], as Warrant Agent

 
			
		
	By:	 	 
	Name:	 	 
	Title:	 	 
		
	ATTEST:	 	 
		
		 	 

  
 [SIGNATURE
PAGE TO XOMA CORPORATION COMMON STOCK WARRANT AGREEMENT] 

 EXHIBIT A 

FORM OF WARRANT CERTIFICATE 

[FACE OF WARRANT CERTIFICATE] 
  

			
	[Form of Legend if Warrants are not immediately exercisable.]	  	[Prior to [•], Warrants evidenced by this Warrant Certificate cannot be exercised.]

 EXERCISABLE ONLY IF COUNTERSIGNED BY THE WARRANT AGENT AS PROVIDED HEREIN 

VOID AFTER [•] P.M., [City] time, ON [•]. 

 XOMA CORPORATION 

WARRANT CERTIFICATE REPRESENTING 

WARRANTS TO PURCHASE 

COMMON STOCK, PAR VALUE $0.0075 PER SHARE 
  

			
	No. [•]	  	[•] Warrants

 This certifies that [•] or registered assigns is the registered owner of the above indicated number of Warrants, each
Warrant entitling such owner to purchase, at any time [after [•] p.m., [City] time, [on [•] and] on or before [•] p.m., [City] time, on [•], [•] shares of Common Stock, par value $0.0075 per share (the
“Warrant Securities”), of XOMA Corporation (the “Company”) on the following basis: during the period from [•], through and including [•], the exercise price per Warrant Security will be
$[•], subject to adjustment as provided in the Warrant Agreement (as hereinafter defined) (the “Warrant Price”). The Holder may exercise the Warrants evidenced hereby by providing certain information set forth on the
back hereof and by paying in full, in lawful money of the United States of America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds], the Warrant Price for
each Warrant Security with respect to which this Warrant is exercised to the Warrant Agent (as hereinafter defined) and by surrendering this Warrant Certificate, with the purchase form on the back hereof duly executed, at the corporate trust office
of [name of Warrant Agent], or its successor as warrant agent (the “Warrant Agent”), which is, on the date hereof, at the address specified on the reverse hereof, and upon compliance with and subject to the conditions set
forth herein and in the Warrant Agreement (as hereinafter defined). 
 The term “Holder” as used herein shall mean the person in
whose name at the time this Warrant Certificate shall be registered upon the books to be maintained by the Warrant Agent for that purpose pursuant to Section 4 of the Warrant Agreement. 

The Warrants evidenced by this Warrant Certificate may be exercised to purchase a whole number of Warrant Securities in registered form. Upon any exercise of
fewer than all of the Warrants evidenced by this Warrant Certificate, there shall be issued to the Holder hereof a new Warrant Certificate evidencing Warrants for the number of Warrant Securities remaining unexercised. 

This Warrant Certificate is issued under and in accordance with the Warrant Agreement dated as of [•] (the “Warrant Agreement”),
between the Company and the Warrant Agent and is subject to the terms and provisions contained in the Warrant Agreement, to all of which terms and provisions the Holder of this Warrant Certificate consents by acceptance hereof. Copies of the Warrant
Agreement are on file at the above-mentioned office of the Warrant Agent. 
 Transfer of this Warrant Certificate may be registered when this Warrant
Certificate is surrendered at the corporate trust office of the Warrant Agent by the registered owner or such owner’s assigns, in the manner and subject to the limitations provided in the Warrant Agreement. 

After countersignature by the Warrant Agent and prior to the expiration of this Warrant Certificate, this Warrant Certificate may be exchanged at the
corporate trust office of the Warrant Agent for Warrant Certificates representing Warrants for the same aggregate number of Warrant Securities. 
 This
Warrant Certificate shall not entitle the Holder hereof to any of the rights of a holder of the Warrant Securities, including, without limitation, the right to receive payments of dividends or distributions, if any, on the Warrant Securities (except
to the extent set forth in the Warrant Agreement) or to exercise any voting rights. 

 Reference is hereby made to the further provisions of this Warrant Certificate set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 This Warrant Certificate shall not be valid
or obligatory for any purpose until countersigned by the Warrant Agent. 
 IN WITNESS
WHEREOF, the Company has caused this Warrant to be executed in its name and on its behalf by the facsimile signatures of its duly authorized officers. 

Dated:
                     
  

					
	 XOMA Corporation, as Company
	 	

					
			
	 By:
	 	 	 	
	 Name:
	 	 	 	
	 Title:
	 	 	 	

					
			
	ATTEST:	 	 	 	
		 	 	 	

					
			
	COUNTERSIGNED	 		 	

					
			
	 [•], as Warrant Agent
	 		 	

					
			
	 By:
	 	 	 	
	 Name:
	 	 	 	
	 Title:
	 	 	 	

					
			
	ATTEST:	 	 	 	
		 	 	 	

 [REVERSE OF WARRANT CERTIFICATE] 

(Instructions for Exercise of Warrant) 

To exercise any Warrants evidenced hereby for Warrant Securities (as hereinafter defined), the Holder must pay, in lawful money of the United
States of America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds], the Warrant Price in full for Warrants exercised, to [•] [address of Warrant
Agent], Attention: [•], which payment must specify the name of the Holder and the number of Warrants exercised by such Holder. In addition, the Holder must complete the information required below and present this Warrant Certificate in person
or by mail (certified or registered mail is recommended) to the Warrant Agent at the appropriate address set forth above. This Warrant Certificate, completed and duly executed, must be received by the Warrant Agent within five business days of the
payment. 
 (To be executed upon exercise of Warrants) 

The undersigned hereby irrevocably elects to exercise ______ Warrants, evidenced by this Warrant Certificate, to purchase _______ shares of
the Common Stock, par value $0.0075 per share (the “Warrant Securities”), of XOMA Corporation and represents that the undersigned has tendered payment for such Warrant Securities, in lawful money of the United States of
America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds], to the order of XOMA Corporation, c/o [insert name and address of Warrant Agent], in the amount
of $_________ in accordance with the terms hereof. The undersigned requests that said Warrant Securities be in fully registered form in the authorized denominations, registered in such names and delivered all as specified in accordance with the
instructions set forth below. 
 If the number of Warrants exercised is less than all of the Warrants evidenced hereby, the undersigned
requests that a new Warrant Certificate evidencing the Warrants for the number of Warrant Securities remaining unexercised be issued and delivered to the undersigned unless otherwise specified in the instructions below. 

 

					
	Dated:
                                         
   	  	Name:	  	 
		  		  	Please Print

  

	
	Address:
	
	   

	(Insert Social Security or Other Identifying Number of Holder)

 Signature
Guaranteed:                                       
                                    

Signature 
 (Signature must
conform in all respects to name of holder as specified on the face of this Warrant Certificate and must bear a signature guarantee by a FINRA member firm). 

This Warrant may be exercised at the following addresses: By hand at: 

[•] 

 By mail at: 

[Instructions as to form and delivery of Warrant Securities and, if applicable, Warrant Certificates evidencing Warrants for the number of Warrant Securities
remaining unexercised—complete as appropriate.] 

 ASSIGNMENT 

[Form of assignment to be executed if Warrant Holder desires to transfer Warrant] 

FOR VALUE RECEIVED, ______________ hereby sells, assigns and
transfers unto: 

					
			
	   
	 		 	   

	(Please print name and address including zip code)	 		 	Please print Social Security or other identifying number

 the right represented by the within Warrant to purchase _______________ shares of [Title of Warrant Securities] of XOMA
Corporation to which the within Warrant relates and appoints ____________________ attorney to transfer such right on the books of the Warrant Agent with full power of substitution in the premises. 

 

					
	Dated:
                                         
   	  	Name:	  	 
		  		  	Signature

 (Signature must conform in all respects to name of holder as specified on the face of the Warrant) 

 

	
	Signature Guaranteed

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00323-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00323-of-00352.parquet"}]]