Document:

Exhibit 10.1

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

TECHNOLOGY TRANSFER, LICENSE AND PRODUCT DEVELOPMENT AGREEMENT

 

This agreement (the “Agreement”) is effective August 15, 2014 by and between Corgenix Medical Corporation a corporation organized and existing under the laws of the State of Nevada and having its principal place of business at 11575 Main Street, Suite 400, Broomfield, Colorado, 80020 (hereinafter referred to as “Corgenix”); and Eli Lilly and Company, a corporation organized and existing under the laws of Indiana and having its principal place of business at Lilly Corporate Center, Indianapolis, IN (hereinafter referred to as “Lilly”). Corgenix and Lilly are also herein referred to as a “Party” or, collectively, the “Parties”.

 

RECITALS

 

WHEREAS, Corgenix is engaged in the business of developing, manufacturing, distributing and marketing diagnostic tests and related products worldwide and is the owner of all rights, title and interest in and to the Corgenix Technology including Corgenix Patent Rights and Corgenix Know-How (as hereinafter defined) relating thereto; and

 

WHEREAS, Lilly is engaged in the business of developing, manufacturing and distributing drug products worldwide and is the owner of all rights, title and interest in and to the Lilly Technology including Lilly Patent Rights and Lilly Know-How (as hereinafter defined); and

 

WHEREAS, the Parties desire to collaborate in conducting a study (the “Technology Transfer and Feasibility Study”) to determine the feasibility of developing, manufacturing and [*] diagnostic test kits for the measurement of certain materials (the “Test Kits”) ; and

 

WHEREAS, if the Technology Transfer and Feasibility Study so indicates, Lilly is willing to grant Corgenix certain rights to develop, manufacture, and register the Test Kits , subject to the terms and conditions set forth herein .

 

WHEREAS, the Parties intend that: 1) this Agreement is focused on the development of an [*].

 

NOW, THEREFORE, in consideration of the above recitals, and in consideration of the mutual covenants and agreements hereinafter set forth, the Parties do hereby agree as follows:

 

AGREEMENT

 

1.                                      Definitions

 

1.1.                            “Lilly Technology” shall mean the Lilly Patent Rights and Lilly Know-How collectively.

 

1.1.1.                  “Lilly Patent Rights” shall mean any and all claims made by and all patent applications and issued patents held by or under the control of Lilly that are reasonably related to the Test Kits or to the development, manufacture, sale and use thereof.

 

1.1.2.                  “Lilly Know-How” shall mean the accumulation of skills, processes and experience, including formulas and specifications, heretofore developed by Lilly pertaining to the Lilly Technology, including, but not limited to, any and all technical information, trade secrets, test results, studies and analysis, approved vendor list for any raw materials, pre-clinical and clinical

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

1

 

data, manufacturing data, formulation and production technology, engineering and assembly methods and other information necessary or useful in the development, manufacture, sale and use of the Test Kits.

 

1.2.                            “Corgenix Technology” shall mean the Corgenix Patent Rights and Corgenix Know-How collectively.

 

1.2.1.                  “Corgenix Patent Rights” shall mean any and all claims made by and all patent applications and issued patents held by or under the control of Corgenix in connection with the Corgenix diagnostic technology.

 

1.2.2.                  “Corgenix Know-How” shall mean the accumulation of skills, processes and experience, including formulas and specifications, heretofore developed by Corgenix pertaining to the Corgenix enzyme immunoassay technology, including, but not limited to, any and all technical information, trade secrets, test results, studies and analysis, pre-clinical and clinical data, manufacturing data, formulation or production technology, engineering or assembly methods and other information necessary or useful in the development, manufacture, sale and use of the Test Kits.

 

1.3.                            “Technology Transfer and Feasibility Study” shall mean an initial product development program related to the development of a Test Kit, attached hereto as Exhibit B.

 

1.4.                            “Test Kit” or “Test Kits” shall mean the products and related components listed in Exhibit A.

 

1.5.                            “Effective Date” shall mean the date this Agreement becomes effective as set forth on the first page hereof.

 

1.6.                            The “Purpose” of this Agreement shall mean the conduct of the Technology Transfer and Feasibility Study, [*].

 

1.7.                            [*].

 

1.8.                            The “Territory” shall mean [*].

 

1.9.                            Subject to the provisions of Sections 12 and 14.2, “Change of Control” shall mean with respect to Corgenix, any of the following events:  (i) the acquisition by any third party of “beneficial ownership” (as defined in Rule 13d-3 under the United States Securities Exchange Act of 1934, as amended), directly or indirectly, of [*] or more of the shares of such Corgenix’ capital stock the holders of which have general voting power under ordinary circumstances to elect at least a majority of Corgenx’s board of directors (the “Board of Directors”) (the “Voting Stock”); (ii) the approval by the shareholders of Corgenix of a merger, share exchange, reorganization, consolidation or similar transaction; or (iii) approval by the shareholders of Corgenix of a complete liquidation of Corgenix or a sale or disposition of all or substantially all of the assets of Corgenix.

 

2.                                      Scope of Work

 

2.1                               Technology Transfer and Feasibility Study. The Parties agree to enter into and conduct the Technology Transfer and Feasibility Study according to Exhibit B.  Costs to perform the Feasibility Study to be paid by Lilly to Corgenix within [*] of receipt of invoices, including but not limited to raw materials and labor costs, are described in Exhibit F. At the conclusion of the Technology Transfer

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

2

 

Feasibility Study, but no later than [*] after the Effective Date unless extended by both Parties, Lilly will decide whether or not to continue the relationship envisioned by this Agreement. If Lilly, in its own determination, is not satisfied with the results of the Technology Transfer and Feasibility Study, it shall notify Corgenix in writing of its decision and this Agreement shall immediately terminate, subject to the terms and conditions of Articles 12 and 13.

 

2.2                               Exchange of General Information. The Parties agree to exchange key information and know-how about [*].

 

2.3                               Development of Project Specifications.  Upon successful completion of the Technology Transfer and Feasibility Study to the satisfaction of the Parties, Corgenix will prepare written project specifications including design criteria, time estimates with milestones, proposed clinical testing requirements, component requirements and regulatory issues. Lilly will review the Project Specifications and either (a) provide written acceptance of the Project Specifications to Corgenix, or (b) promptly notify Corgenix in writing of any requested changes to items in the Project Specifications. The Parties shall negotiate in good faith any disagreement regarding the Project Specifications.

 

2.4                               Development of the Test Kit.  Subject to the provisions of 3.1 and 3.5, Corgenix shall develop the Test Kit to meet Lilly requirements (Exhibit E) and in accordance with the U.S. Food and Drug Administration (FDA) Quality System Regulation, Design Control, 21CFR 820.30 and ISO13485. The Test Kit development shall occur at Corgenix facilities or at other sites designated by Corgenix and approved in advance in writing by Lilly.

 

2.5                               Supply of Components. Corgenix shall provide components as set forth in the Exhibits to be used [*]..

 

2.5.1                     Pricing for components used in the Test Kit shall be negotiated by Corgenix directly with Corgenix qualified third-party vendors.

 

2.6                               Progress Reports. Corgenix will provide written progress reports to Lilly on a monthly basis. These reports will include technical updates and any changes to agreed to milestones in the development of the Test Kits.

 

2.7                               Approval of Prototype.  At the conclusion of development under Section 2.4, Corgenix will provide [*]. In case of disagreement, the Parties will negotiate in good faith any differences. [*]

 

2.8                              Third party contract laboratories.  It is understood that certain work may be performed by third party contractors.  In particular, the Test Kit will be supplied to one or more third party contract laboratory(ies) selected by Lilly (the “Test Lab”), for the purpose of the Test Lab testing clinical patient samples using the Test Kit.  Corgenix shall train certain personnel of the Test Lab in the use of the Test Kit.  The results from the use of the Test Kit by the Test Lab shall be included in the results.

 

2.9                               [*]

 

2.10                        Third Party Contractors. Corgenix may engage one or more subcontractors to perform its obligations under the Agreement, but only with Lilly’s prior written consent; provided, however, that Corgenix will remain fully responsible for the performance of all obligations delegated to the subcontractor.

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

3

 

3.                                      Manufacturing

 

3.1                               Manufacturing Rights of Test Kits. Subject to the terms and conditions hereinafter set forth, [*].

 

3.2                               [*]

 

3.3                               Change of Control.                                        Should Corgenix be subject to a Change of Control, the controlling company shall be bound to the terms and conditions of this Agreement.  In the event of a Change of Control or a sale of all or substantially all of the assets of Corgenix, Lilly shall have the right at its sole option to immediately terminate the collaboration portion of this Agreement and/or suspend any further exchange of confidential information if in Lilly’s reasonable determination such Change of Control is prejudicial to Lilly’s business or scientific interest.  Regardless, if Lilly terminates this Agreement for Change of Control, the license portion of this Agreement to Test Kits and products actively being pursued at the time of the change in control shall be maintained, including license to the intellectual property rights as set forth in Sections 3.2, 3.5 and 4.1.

 

3.4                               Quality Assurance.  Corgenix shall strictly adhere to the applicable Quality System Regulations as found in 21CFR820 and ISO13485 and specifications for the manufacture and performance of the Test Kit(s) as may be necessary to meet applicable regulatory requirements for the development and manufacture thereof. Corgenix shall furnish Lilly with copies of test results and other data supporting quality control if so requested in writing. The Parties shall negotiate and enter into a quality agreement related to the Test Kit(s) as necessary.

 

3.5                               Technology License.  Subject to the terms of this Agreement, each Party hereby grants to the other Party a royalty-free, worldwide, non-transferable, non-exclusive license to use Corgenix Technology and Lilly Technology solely for the Purpose of this Agreement as set forth in Article 1.6 above.

 

3.6                               Technical Assistance.  The Parties shall provide all reasonable technical assistance requested to facilitate the transmission of know-how and to solve production problems as may arise in connection with the production of Test Kits.

 

4.                                      Ownership Rights

 

4.1                               Ownership. Except for the Lilly Technology, Corgenix owns (and title will reside in Corgenix with respect to) all intellectual property rights in and to the Test Kit(s), all of which are deemed the sole and exclusive property of Corgenix.  Such intellectual property rights include all world-wide patents and copyrights, trademarks (including the goodwill associated therewith), trade secrets, trade dress and know-how.  Corgenix acknowledges that Lilly owns (and/or licenses a portion of) any Lilly Technology which may be incorporated into, embedded in or form a material part of the Test Kit(s) and such Lilly Technology will remain the property of Lilly or Lilly’s licensor, as applicable.  [*]

 

4.2                               [*]

 

5.                                      Governance

 

5.1                               Formation of JDC.  The Parties shall form a joint development committee (the “Joint Development Committee” or “JDC”).  [*]

 

5.2                               The JDC shall have the roles and responsibilities and decision-making authority as set forth below. As needed, the JDC may establish subcommittees and other working groups that will report to the JDC (each being a “Subcommittee”), to further the objectives of this Agreement. The JDC shall meet

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

4

 

in-person or by teleconference on a calendar quarter basis or as described below. Draft minutes of the meetings of the JDC will be generated and circulated to its members within two (2) weeks following a JDC meeting and such minutes shall be finalized by the JDC promptly thereafter..  [*]

 

5.3                               Role and Responsibilities of the Joint Development Committee.  The JDC shall be responsible for reviewing and reporting on the progress of the work under the Agreement (the “Work”), and ensuring the Work proceeds according to the timelines. The JDC will be responsible for ensuring the cooperation and participation of the Parties in the performance of the Work and reviewing the recommendations, plans and other activities in support of the Work. [*]

 

5.4                               [*]

 

6.                                      Other Duties of the Parties

 

6.1       Licenses and Permits.  Corgenix shall be responsible for obtaining all licenses and permits required by any governmental authority to support the Lilly clinical trials. Responsibility for cost of obtaining such licenses and permits is described in Exhibit D. Corgenix agrees to comply with all applicable laws regulations and orders governing the sale, disposition, shipment, import or export of the Test Kit(s) and maintain in effect all licenses, permits and authorizations from all government agencies as may be necessary to perform its obligations hereunder.

 

6.2       Defective Product Notice.  Corgenix shall be responsible for the remedy of any defect or condition that may render a Test Kit(s) in violation of the law of any jurisdiction where the Test Kit(s) are sold or otherwise used, or if the Test Kit(s) deviates in any way from the specifications or the warranties set forth herein.  Corgenix shall be responsible for any end-user complaints or information regarding performance and/or allegations or reports of any negative effect from the use or misuse of the Test Kit(s) during the clinical trial as soon as such data is available. Corgenix will maintain a complaint file in accordance with the requirements of 21CFR820 as applicable.  Corgenix will notify Lilly of any of the foregoing defective product information.

 

6.3       Technical Assistance.  The Parties shall, to the extent necessary, provide training and technical assistance to the other party’s personnel and agents necessary for the development and use of the Test Kit(s).  Any travel costs shall be covered according to the terms described in the Exhibits.

 

6.4       Audits.  Upon reasonable advance notice and during normal business hours, the Parties agree to receive qualified personnel from the other Party to perform audits related to quality, audits by regulatory authorities or notified bodies to support regulatory approval, quality system registration, safety or compliance with other standards as required by regulatory agencies at a convenient time mutually agreed upon. Corgenix will notify Lilly of any regulatory inspections of Corgenix related to Test Kits.  This audit will not include the disclosure of trade secrets, know-how, or any other confidential information not necessary to develop, manufacture or distribute the Test Kit.

 

6.5       Taxes.  With respect to the activities of this Agreement, the Parties agree to fully cooperate with each other to enable proper filing of taxes or recovery of any taxes paid. Each Party will be responsible for its own taxes, including property taxes on property it owns or leases, income taxes on its business and, any other taxes incurred by such Party in connection with its business and with performing its obligations hereunder.  Lilly will be responsible for any transaction taxes properly collectible from Lilly under applicable law.  Corgenix will be responsible for payment of any transaction taxes that are, under applicable law, properly borne by Corgenix; including but not limited to all export and import taxes.  The calculation of taxes shall not include, and Lilly shall not

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

5

 

pay, any taxes that are related to intra-corporate transfers or intermediate supplies of the services between Corgenix and its Affiliates or between Corgenix’s Affiliates and related entities.

 

6.6       Confidentiality.                                   The Parties acknowledge that during the course of this Agreement they will have access to certain confidential information concerning technology, business strategy, and other technical, business and financial matters of the Parties. The Parties accordingly agree to hold all such information so designated in strictest confidence and not to disclose any such information to a third party except as expressly permitted in writing, or use such information for any purpose other than the Purpose(s) hereof, unless such information was already in the possession of the Parties at the time of receipt or such information is or becomes public knowledge through no fault of the Parties, is independently developed by a Party or is provided in good faith by any independent third party who has the right to disclose such information.  This Article shall survive any termination of this Agreement for a period of [*]. No press release related to this Agreement , other than as required by law, shall be issued without prior written agreement of the Parties.

 

7.                                      Regulatory

 

7.1       Regulatory Activities and Submissions Generally.  The Parties will confer and cooperate with one another through the JDC (or, as directed by the JDC, through a Subcommittee) and in accordance with this Section 7 with respect to all substantive dealings with regulatory authorities including, but not limited to, [*].

 

7.2       Meetings and Correspondence with Regulatory Authorities.  The Parties shall notify one another in advance of any request for a meeting or substantive discussion with any regulatory authority (including any division thereof) relating to any regulatory filing. Such notification shall where practicable be provided at least ten (10) Business Days prior to any such meeting or substantive discussion, in order to provide the other Party with an opportunity to participate in such meeting or discussion.  Each Party shall have the right to participate in any such meeting or discussion unless the regulatory authority objects.  The foregoing obligations apply with respect to meetings or discussions initiated by a Party or by a regulatory authority.  Corgenix shall promptly furnish Lilly with: [*].

 

7.3       Test Kit Labeling.  The Test Kit will be labeled “[*]” or words of similar import, and in such other manner as required by applicable regulatory requirements.

 

7.4      [*]

 

8.                                      Intellectual Property

 

8.1                               Technology.  Subject to the provisions of Articles 3.2, 3.3, 3.5 and 4.1 of this Agreement, neither Party shall have any interest in the other Party’s technology used in the Test Kit(s).

 

8.2                               Third Party Infringement.  Each Party shall each promptly notify the other Party upon learning that a third party is making, having made, using,  selling, or importing for sale a product or component of a product which is within the scope of a valid licensed claim of any patent owned by any of the Parties. The Party whose technology is being infringed by a third party shall have the right to bring, maintain and settle any suit, action or proceeding involving any such infringement, and shall pay all expenses incurred in connection therewith and shall retain any amount recovered in any such suit, action or proceeding whether by judgment or settlement.

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

6

 

8.3                               Negligent Product Handling. Except for actual third party claims covered by Article 10 below, neither Party shall be responsible to the other Party or the other Party’s agents for that Party’s or that Party’s agents’ negligence in handling of the Test Kit(s) which causes a breach of warranty.

 

9                 Representations and Warranties

 

Each Party hereby represents and warrants to the other Party as follows:

 

9.1       Corporate Existence and Power. Such Party (a) is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated; (b) has the corporate power and authority and the legal right to own and operate its property and assets, to lease the property and assets it operates under lease; (c) has the right to transfer the Lilly Technology and Corgenix Technology and other technology and/or has the right to acquire and use any other technology transferred hereunder in a manner and for the uses contemplated under the Agreement, and (d) is in compliance with all requirements of applicable law, except to the extent that any non-compliance would not materially adversely affect its ability to perform its obligations under the Agreement.

 

9.2       Authorization and Enforcement of Obligations. Such Party (a) has the corporate power and authority and the legal right to enter into the Agreement and to perform its obligations hereunder and (b) has taken all necessary corporate action on its part authorize the executions and delivery of the Agreement and the performance of its obligations hereunder. The Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, binding obligation, enforceable against such Party in accordance with its terms.

 

9.3       No Consents. All necessary consents, approvals and authorizations of all governmental authorities and other persons required to be obtained by such Party in connection with the Agreement have been obtained.

 

9.4       No Conflict.  The execution and delivery of the Agreement and the performance of such Party’s obligations hereunder (a) do not conflict with or violate any requirement of applicable laws or regulations,  and (b) do not conflict with, or constitute a default under, any contractual obligation of it.

 

9.5       Disclaimer. Notwithstanding anything in the Agreement to the contrary, it is understood that neither Party makes any representation or warranty as to the validity of any of the technology within the scope of this agreement or the conduct of the activities contemplated by this Agreement would not infringe the intellectual property rights of any third party.

 

EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, NO PARTY MAKES ANY WARRANTIES WITH RESPECT TO ANY PRODUCT, PATENT RIGHTS, GOODS, SERVICES, MATERIALS, KNOW-HOW OR ANY OTHER SUBJECT MATTER OF THIS AGREEMENT, AND EACH PARTY HEREBY DISCLAIMS WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT WITH RESPECT TO ANY AND ALL OF THE FOREGOING.

 

9.6       Limited Liability.  EXCEPT WITH RESPECT TO (I) BREACH OF THE CONFIDENTIALITY OBLIGATIONS SET FORTH IN ARTICLE 5, (II) THE WILLFUL MISCONDUCT OR GROSS NEGLIGENCE BY A PARTY, OR (III) FOR AMOUNTS SOUGHT BY THIRD PARTIES IN CLAIMS THAT ARE SUBJECT TO THE PARTIES’ RESPECTIVE INDEMNITY OBLIGATIONS UNDER ARTICLE 10, NO PARTY WILL BE LIABLE WITH RESPECT TO ANY MATTER ARISING UNDER THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR ANY PUNITIVE, EXEMPLARY, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF BUSINESS OR GOOD WILL, LOSS OF REVENUE OR LOST PROFITS.

 

7

 

9.7       Debarment.  Neither Corgenix nor any of its officers, directors, agents, affiliates or employees rendering services under this Agreement has been or is under investigation by the U.S. Food and Drug Administration for debarment action; or was or is presently debarred pursuant to the Generic Drug Enforcement Act of 1992.  In addition, Corgenix represents and warrants (i) that it has not been convicted of a crime related to health care and (ii) that it is not listed by a federal agency as debarred, excluded or otherwise ineligible for participation in federally funded programs (including federally-funded health care programs such as Medicare and Medicaid).  Corgenix shall notify LILLY immediately upon any inquiry or the commencement of any such investigation or proceeding or of any circumstance that would cause the foregoing statements under this Section 9.7 to become false or inaccurate.

 

9.8       Safety and Regulatory Obligations.  Provisions for Pharmacovigilance Data Exchange and Requirements for the Test Kit(s) are included in Exhibit G.  Should Lilly determine that an FDA clearance or approval would benefit the Test Kit commercialization efforts, the Parties will meet to renegotiate responsibilities for safety obligations in humans (including adverse event management, surveillance activities, periodic reporting, risk management/minimization, product complaints/malfunctions), etc., and regulatory obligations (including labeling, chemistry, manufacturing and control, promotional materials, submissions, etc.) for the Test Kit.

 

9.9       Compliance.  Each Party guarantees that it shall comply with the Agreement, all applicable laws, regulations and industrial codes in the Territory, including GMPs, GLPs, GCPs, GRPs, etc.  From time-to-time, the Parties shall discuss activities necessary to insure compliance.  If either Party requests, the Parties will negotiate in good faith and execute a written compliance agreement that will set forth and define the compliance policies, standards, and procedures the Parties will adhere to when conducting activities under the Agreement.  The compliance agreement may also include provisions relating to interactions between the respective compliance organizations of the Parties, sharing of compliance related information, execution of training, implementation and monitoring activities, and resolution of compliance issues that may arise. Each Party affirms that, in connection with the work done under the Agreement and in connection with any other business involving a Party, that it has not given or promised to give, and will not make, offer, agree to make or authorize any payment or transfer anything of value, directly or indirectly, (i) to any Government or Public Official, as defined herein; (ii) any political party, party official or candidate for public or political office; (iii) any person while knowing or having reason to know that all or a portion of the value will be offered, given, or promised, directly or indirectly, to anyone described in items (i) or (ii) above; or (iv) any owner, director, employee, representative or agent of any actual or potential customer of a Party or its Affiliates, other than fair market payments for services performed by such individuals in accordance with applicable law.  The Parties agree to comply with all applicable anti-bribery laws in the countries where the Parties have their principal places of business and where they conduct activities under the Agreement. Additionally, each Party understands and agrees to comply with the U.S. Foreign Corrupt Practices Act (“US FCPA”), as revised, as well as similar applicable laws of the countries in the Territory and to take no action that would cause a Party to be in violation of the US FCPA or similar applicable laws of the country where the Parties conduct activities under the Agreement.  Additionally, the Parties will make reasonable efforts to comply with requests for information, including answering questionnaires and narrowly tailored audit inquiries, to enable the other Party to ensure compliance with applicable anti-bribery laws.  For purposes of the Agreement, “Government or Public Official” is any officer or employee or anyone acting in an official capacity on behalf of: a government or any department or agency thereof; a public international organization (such as the United Nations, the International Monetary Fund, the International Red Cross, and the World Health Organization), or any department, agency or institution thereof; or a government-owned or controlled company, institution, or other entity, including a government-owned hospital or university. All internal compliance codes shall apply only to the Party to which they relate.  The Parties agree to cooperate with each other to insure that each Party is able to comply with the substance of its respective internal compliance codes and, to the extent practicable, to operate in a manner consist with its usual compliance related processes. Each Party is solely responsible to ensure compliance by it and its Affiliates. With respect to joint activities, in the event of any conflict between the Parties as to how to ensure compliance that the Parties are unable to resolve, the more conservative view (i.e., the view

 

8

 

least likely to risk non-compliance) shall prevail. The Parties agree to cooperate with each other as may reasonably be required to ensure that each is able to fully meet its obligations with respect to the Party specific regulations applicable to it. Neither Party shall be obligated to pursue any course of conduct that would result in such Party being in material breach of any Party specific regulation applicable to it.  All Party specific regulations are binding only in accordance with their terms and only upon the Party to which they relate.  All internal compliance codes shall apply only to the Party to which they relate.  The Parties agree to cooperate with each other to insure that each Party is able to comply with the substance of its respective internal compliance codes and, to the extent practicable, to operate in a manner consist with its usual compliance related processes.

 

9.10                        Records That Must Be Created and Maintained.  At its own expense and in accordance with its standard record retention policy, Corgenix will create and maintain for all required legal and regulatory periods, all records: (i) required by this Agreement and applicable law that relate to this Agreement and to Corgenix ‘s performance under this Agreement; (ii) sufficient to demonstrate that any and all amounts invoiced to Lilly under this Agreement are accurate and proper in both kind and amount; (iii) sufficient to demonstrate the accuracy of any representations or reports submitted to Lilly under this Agreement; and (iv) sufficient to enable Lilly to comply with applicable laws and other legal obligations. This provision shall survive termination of the Agreement.

 

10                                  Indemnification

 

10.1                        Indemnification by the Parties.  Each Party hereto hereby agrees to defend, indemnify and hold the other Party, its employees, agents and affiliates harmless against any and all claims, liabilities, losses, damages or expenses, (including, without limitation, attorney’s fees) by a third party, to the extent that any such claims, liabilities, losses, damages or expenses result from, arise out of, or are connected with any inaccuracy, breach of, or non-fulfillment of any covenant, representation, warranty or agreement made by or any other obligation of the Parties contained in this Agreement, or third party product liability and infringement claims for which the indemnifying Party’s actions are the proximal cause. Notwithstanding the foregoing, each Party, its employees, agents and affiliates shall not be entitled to indemnification for any claim, liability, loss, cost, damage or expense to the extent caused by its or their own fraud, misrepresentation, gross negligence, willful misconduct or malfeasance.

 

10.2                        Defense, Settlement.  The indemnified Party shall give the indemnifying Party prompt notice of any claims of third parties as to which it proposes to demand indemnification hereunder. The indemnifying Party shall have the right to assume the good faith defense, compromise or settlement of any such claim (without prejudice to the right of the indemnified Party to participate in such defense) at its own expense through attorneys reasonably acceptable to the indemnified Party, but may not, without the prior written consent of the indemnified Party agree to (i) any injunctive relief or restrictions affecting the indemnified Party, or (ii) any settlement which would adversely affect the business or operations of the indemnified Party. If the indemnifying Party does not elect to defend such claim or suit within thirty (30) days after having received notice thereof or fails to prosecute its defense diligently, the indemnified Party may at its sole discretion defend against such claim or suit at the indemnifying Party’s expense. The indemnified Party may thereafter elect to settle such claim or suit or otherwise enter into a compromise with the claimant.

 

10.3                        Notwithstanding the provisions of Sections 10.1 -10.2, the Parties agree that Lilly shall defend, settle or otherwise handle, at its expense, any third-party action, suit, or proceeding against Corgenix (“Claim”) to the extent such Claim is based upon an allegation during the term of the Agreement that the Critical Components of the Test Kit, or the use thereof in the Test Kits, infringes a valid patent. If Lilly so defends, Lilly will indemnify Corgenix for any judgments, settlements and reasonable attorney fees resulting from a Claim as provided in this Section 10.3; provided that Corgenix promptly notifies Lilly of the Claim in writing once Corgenix is aware of the claim, Corgenix gives Lilly sole authority and control of the defense or settlement of the claim unless otherwise agreed to in

 

9

 

writing, and Corgenix provides all information and assistance requested by Lilly to handle the defense or settlement of the Claim.

 

11                                  Effective Date and Term

 

This Agreement shall become effective upon execution by both Parties and shall be deemed effective as of the date first set forth above. This Agreement shall continue to be in effect unless terminated by either Party as provided in Article 12 hereof.

 

12                                  Termination

 

Either Party will have the right to terminate this Agreement if the other Party:  (a) assigns this Agreement or any of its rights hereunder in violation of the provisions of this Agreement; (b) becomes bankrupt or insolvent; (c) makes an assignment for the benefit of creditors, or a receiver, trustee in bankruptcy or similar officer is appointed to take charge of all or part of its property; (d) materially breaches its obligations under this Agreement, and such breach has not been cured within [*] of notice thereof by the non-breaching Party; (e) after the completion of the Technology Transfer and Feasibility Study or within [*]after the Effective Date, determines that the relationship as envisioned by this Agreement is not feasible.  Information referring to the above events should be given to the other Party within [*], and this Party receiving such information should communicate its intentions to the other Party within [*].  For purposes of this Article, a material breach on the part of either Party includes, but is not limited to, failure to adhere to the confidentiality provisions and restrictions on use of information set forth in Articles 6.6, and any failure to make any payment required hereunder within [*] of the date due. For purposes of this Article 12, a material breach by Corgenix also includes failure to adhere to the quality control procedures and specifications for the manufacture and performance of the Test Kit(s) as defined throughout the Agreement, including, the specifications described in Exhibit E andany Quality Agreement related to the Test Kit(s).,

 

13                                  Rights and Obligations Upon Termination

 

13.1                        Effect of Termination.  Termination, cancellation or abandonment of this Agreement through any means and for any reason shall not relieve the Parties of any obligation accruing prior thereto and shall be without prejudice to the rights and remedies of either Party with respect to any antecedent breach of any of the provisions of this Agreement.

 

13.2                        Survival.  In the event of termination of this Agreement, the distribution, ownership and license rights of articles [*], shall survive.

 

14                                  General Provisions

 

14.1                        Entire Agreement.  This Agreement, including the Appendices, constitutes the entire agreement between the Parties with respect to the subject matter hereof, and may not be modified (unless expressly provided otherwise herein) except in writing duly signed by both Parties.  The terms and conditions of this Agreement shall prevail notwithstanding any other terms and conditions on any order submitted by either Party.  On quality related matters, the provisions of the Quality Agreement shall prevail.

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

10

 

14.2                        Assignment, Waiver, Severability.  Neither Party may assign this Agreement without the prior written consent of the other Party except that either Party may assign this Agreement to a successor in interest to substantially all of its assets upon prior written notice to the other Party.  All rights and remedies conferred under this Agreement or by any other instrument or law shall be cumulative and may be exercised singularly or concurrently.  Failure by either Party to enforce any term hereof shall not be deemed a waiver of future enforcement of that or any other term.  If any provision of this Agreement is declared void or unenforceable by any judicial, administrative or arbitration authority, such action will not nullify the remaining provisions of this Agreement.

 

14.3                        Governing Law.  The validity and interpretation of this Agreement shall be governed and construed according to the laws of Delaware, U.S.A.

 

14.4                        Compliance with Laws.  Both Parties agree to comply at all times with all applicable laws.

 

14.5                        Authority.  Each Party hereby represents and warrants that it has full power and authority to enter into and perform this Agreement, without any governmental approvals, and that its entering into and performance of this Agreement will not conflict with any other agreement to which it is a Party or by which it is bound.

 

14.6                        Notices.  All notices, payments, demands, requests, instructions or other communication required or permitted to be given by any of the provisions of this Agreement must be in writing and shall be deemed to have been sufficiently given only if (i) delivered by hand against receipt therefore, (ii) sent by Federal Express or similar overnight delivery service, or (iii) mailed by certified or registered mail, postage prepaid, return receipt requested as follows:

 

If to Corgenix:

11575 Main Street, Suite 400

Broomfield CO 80020

USA

Attn: President

 

If to Lilly:

Lilly Corporate Center

Indianapolis, IN

Attn: [*]

 

14.7                        Payments.  All payments under this Agreement will be made payable in United States Dollars and will be by appropriate electronic funds transfer in immediately available funds to such bank account as each Party will designate. Corgenix shall invoice Lilly for documented amounts owed by Lilly during such month and Lilly shall pay to Corgenix such invoiced amount within [*].

 

-                                            signature page follows —

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

11

 

IN CONSIDERATION OF the foregoing terms and conditions, Corgenix and Lilly have executed this Agreement on the day and year first written above.

 

	
 
    	
Corgenix, Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By s/ [*]
    
	
 
    	
 
    
	
 
    	
Its [*]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Eli Lilly and Company
    
	
 
    	
 
    
	
 
    	
By s/ [*]
    
	
 
    	
 
    
	
 
    	
Its [*]
    

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

12

 

Exhibit A

 

Test Kit(s)

 

	
Product
    	
 
    	
Description
    
	
[*]
    	
 
    	
[*]
    

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

13

 

Exhibit B

 

Technology Transfer and Feasibility Study

 

·                  Technology Transfer, Antibody/Antigen Characterization and Feasibility. The definition of these activities in this project is as follows: Corgenix will use the same or similar raw materials and same methods/procedures as [*].

 

·                  A complete work-plan will be agreed upon by the Parties, before any work commences.  An estimated timeline, entitled “[*]” is attached to this Agreement.

 

·                  Document Preparation. Creation of manufacturing, QC and QA documents.

 

·                  Antibody/Antigen Characterization. Includes [*].

 

·                  R&D Feasibility.  To include [*].

 

·                  Potential Unforeseen Issues. The following are items that could drive up costs.

 

·                  Assay performance characteristics do not meet expectations.

·                  Environmental influences site-to-site.

·                  Additional technology transfer requirements.

·                  Critical reagents do not meet specifications.

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

14

 

EXHIBIT C

 

KIT OPTIMIZATION [*]

 

·                  KIT OPTIMIZATION [*].

·                  Within this section are two milestones: Milestone 1 is [*], and Milestone 2 is [*].

 

·                  An estimated timeline, entitled “[*]” is attached to this Agreement.

 

·                  Design Control R&D.  To include inputs generation in conjunction with Lilly; finish feasibility per Design Control; complete optimization of assay per Lilly requirements in Exhibit E; pre-pilot kit generation and testing (with option to transfer pre-pilot kits to Lilly for additional testing); pilot lot kit generation and testing; full data and Design Control Documentation.

 

·                  Packaging and Labeling. Includes design, set up charges and printing costs.

 

·                  Transportation Stress Testing. Testing is conducted on finished Product to ensure that, after shipment to customers, a product’s performance characteristics continue to meet all package insert Quality Control claims and shelf-life claims.

 

·                  Package Integrity Testing. Testing is conducted on finished Product to ensure the packaging meets transportation safety regulations.

 

·                  Stability Testing. Establish sampling plan, initiate documents and perform real time stability testing. Accelerated stability testing, if required.

 

·                  Preservative Effectiveness Testing. This includes sending out to third party to test two (2) components.

 

·                  Potential Unforeseen Issues.

 

·                  Second vendor qualifications

·                  Specification changes needed

·                  Additional instrumentation validation

·                  Critical reagent stability

·                  Alterations to Design Input performance characteristics

·                  Critical Reagent characterization and optimization take longer than anticipated

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

15

 

EXHIBIT D

 

[*]

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

16

 

EXHIBIT E

LILLY REQUIREMENTS

 

TABLE OF CONTENTS

 

	
1
    	
[*]
    
	
2
    	
[*]
    
	
3
    	
GENERAL OVERVIEW
    
	
4
    	
PRODUCT REQUIREMENTS
    

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

17

 

 

TERMS, ABBREVATIONS (ACRONYMS), AND DEFINITIONS

 

	
TERM
    	
 
    	
DEFINITIONS
    
	
Accessories
    	
 
    	
Additional   equipment or material required to perform the diagnostic test that is not   provided in the kit. These materials must be supplied by the clinical   laboratory performing assay.
    
	
[*]
    	
 
    	
[*]
    
	
[*]
    	
 
    	
[*]
    
	
CLSI
    	
 
    	
Clinical   and Laboratory Standards Institute
    
	
Component
    	
 
    	
Material   required to perform the diagnostic test that is provided in the kit.
    
	
[*]
    	
 
    	
[*]
    
	
EDTA
    	
 
    	
Ethylenediaminetetraacetic   acid
    
	
ELISA
    	
 
    	
Enzyme-linked   immunosorbent assay
    
	
FDA
    	
 
    	
Food   and Drug Administration
    
	
[*]
    	
 
    	
[*]
    
	
HCP
    	
 
    	
Health   care provider
    
	
[*]
    	
 
    	
[*]
    
	
[*]
    	
 
    	
[*]
    
	
nm
    	
 
    	
nanometer
    
	
Operator
    	
 
    	
Lab   technician performing assay and using product
    
	
[*]
    	
 
    	
[*]
    
	
Product
    	
 
    	
Refers   specifically to the assay and kit that is developed and manufactured by the   diagnostic partner. It does not include the instrument platform required to   run the diagnostic.
    
	
Software
    	
 
    	
Computer   programming on instrument to analyze sample.
    
	
System
    	
 
    	
Includes   all the equipment needed to obtain regulatory approval/clearance such as   instrument, software and kit.
    
	
[*]
    	
 
    	
[*]
    
	
[*]
    	
 
    	
[*]
    
	
User
    	
 
    	
Person   that will use the product. User could be physician, patient or lab   technician.
    

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

18

 

1.              [*]

 

[*]

 

2.              [*]

 

[*]

 

3.              GENERAL OVERVIEW

 

A.            [*]

 

[*]

 

B.            [*]

 

[*]

 

C.            [*]

 

[*]

 

4.              PRODUCT REQUIREMENTS

 

[*]

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

19

 

EXHIBIT F

PAYMENT SCHEDULE*

 

	
Phase
    	
 
    	
Payment Due
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    
	
[*]
    	
 
    	
 
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    
	
[*]
    	
 
    	
 
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
[*]
    	
 
    	
[*]
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
[*]**
    	
 
    	
[*]
    	
 
    

 

* [*].

 

** [*].

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

20

 

Exhibit G

 

[*]

 

[*]

 

1                               Definitions

 

	
[*]
    	
[*]
    
	
[*]
    	
[*]
    
	
[*]
    	
[*]
    
	
[*]
    	
[*]
    
	
[*]
    	
[*]
    
	
[*]
    	
[*]
    
	
[*]
    	
[*]
    

 

2                               [*]

2.1                     [*]

2.2                     [*]

2.3                     [*]

2.4                     [*]

2.5                     [*]

2.6                     [*]

2.7                     [*]

 

3                               [*]

3.1                     [*]

3.2                     [*]

3.3                     [*]

 

4                               Contact Information

Contact information is provided as part of this exhibit but may be revised from time to time without re-approval of the agreement.

 

Eli Lilly and Company

 

	
[*]
    	
[*]
    
	
[*]
    	
[*]
    
	
[*]
    	
[*]
    
	
[*]
    	
[*]
    

 

Corgenix

 

	
[*]
    	
 
    

 

CORGENIX MEDICAL CORPORATION HAS REQUESTED THAT THE PORTIONS OF THIS DOCUMENT DENOTED BY BRACKETS AND ASTERISKS BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

 

21EX-4.1

 Exhibit 4.1 

AMENDED AND RESTATED 

CERTIFICATE OF DESIGNATION 

OF 
 SERIES J CONVERTIBLE
PREFERRED STOCK 
 OF 

LIGHTING SCIENCE GROUP CORPORATION 
  

 
 Pursuant to
Section 242 of the 
 General Corporation Law of the State of Delaware 

 
  

Lighting Science Group Corporation, a corporation organized and existing under and by virtue of the General Corporation Law of the State of
Delaware (the “Corporation”), in accordance with the provisions of Section 242 thereof, hereby certifies as follows: 

FIRST: That pursuant to the authority conferred upon the Board of Directors (the “Board of Directors”) of the Corporation in
accordance with the Amended and Restated Certificate of Incorporation of the Corporation, as amended (the “Certificate of Incorporation”), and the Amended and Restated Bylaws of the Corporation, as amended to date (the
“Bylaws”), the Board of Directors has duly adopted a resolution amending and restating the rights of the Series J Convertible Preferred Stock, declaring said amendment and restatement to be advisable and authorizing the appropriate
officers of the Corporation to solicit the requisite consent of the holders of the Series J Convertible Preferred Stock therefor: 

RESOLVED, that the rights set forth in the Certificate of Designation of Series J Convertible Preferred Stock (the “Certificate of
Designation”), are hereby amended and restated as follows: 
 1. Number of Shares; Designation. A total of 70,000
shares (the “Preferred Shares”) of preferred stock, par value $0.001 per share, of the Corporation have been designated as Series J Convertible Preferred Stock (the “Series”). 

2. Rank. The Series shall, with respect to payment of dividends, distributions and rights (including to redemption payments) upon
liquidation, dissolution or winding-up of the affairs of the Corporation, rank: 
 (a) Senior and prior to (i) the Series H Convertible
Preferred Stock of the Corporation, par value 0.001 per share (the “Series H Preferred Stock”); (ii) the Series I Convertible Preferred Stock of the Corporation, par value 0.001 per share (the “Series I
Preferred Stock”); (iii) the Common Stock of the Corporation, par value $0.001 per share (the “Common Stock”); (iv) all other Equity Securities of the Corporation (including warrants and other securities
exercisable, convertible or exchangeable into or for (A) shares of Common Stock (“Common Stock Equivalents”), (B) shares of Series H Preferred Stock and (C) shares of Series I Preferred Stock; and (v) any
additional class or series of stock which may in the future be issued by the Corporation and is designated in the amendment to the Corporation’s Certificate of Incorporation or the certificate of designation establishing such additional class
or series of stock as ranking junior to the Preferred Shares or which does not state they are Parity Liquidation Shares (as defined below) or Senior Liquidation Shares (as defined below). Any shares of the Corporation’s Capital Stock that are
junior to the Preferred Shares with respect to dividends, distributions and rights (including to redemption payments) upon liquidation, dissolution or winding up of the affairs of the Corporation, including upon a Liquidation Event (as defined
below), are hereinafter referred to as “Junior Liquidation Shares.”

 (b) Pari passu with any additional class or series of stock which may in the future be
issued by the Corporation in accordance with the terms hereof and is expressly designated in the amendment to the Corporation’s Certificate of Incorporation or the certificate of designation establishing such additional class or series of stock
as ranking equal to the Preferred Shares. Any shares of the Corporation’s Capital Stock that rank equal to the Preferred Shares with respect to dividends, distributions and rights (including to redemption payments) upon liquidation, dissolution
or winding-up of the affairs of the Corporation, including upon a Liquidation Event, are hereinafter referred to as “Parity Liquidation Shares.” 

(c) Junior to any additional class or series of stock which may in the future be issued by the Corporation in accordance with the terms hereof
and is expressly designated in the amendment to the Corporation’s Certificate of Incorporation or the certificate of designation establishing such additional class or series of stock as ranking senior to the Preferred Shares. Any shares of the
Corporation’s Capital Stock that rank senior to the Preferred Shares with respect to dividends, distributions and rights (including to redemption payments) upon liquidation, dissolution or winding up of the affairs of the Corporation, including
upon a Liquidation Event, are hereinafter referred to as “Senior Liquidation Shares.” 
 3. Dividends.  

(a) Subject to the rights and preferences of any Senior Liquidation Shares, each Holder shall be entitled to receive, when, as and if declared
by the Board of Directors, out of funds legally available for the payment of dividends for each Preferred Share, dividends of the same type as any dividends or other distribution, whether in cash, in kind or in other property, payable or to be made
on outstanding shares of Common Stock, in an amount equal to the amount of such dividends or other distribution as would be made on the number of shares of Common Stock equal to the number of Optional Conversion Shares issuable to each Holder on the
applicable record date for such dividends or other distribution on the Common Stock (the “Dividends”). 
 (b) Any Dividends
shall be payable to each Holder at the same time as and when such dividend or other distribution on Common Stock is paid to the holders of Common Stock and shall be payable to each Holder on the record date for the corresponding dividend or
distribution on the Common Stock; provided, that no dividend or distribution on Common Stock shall be made to any holders of Common Stock unless the Dividends are paid (or are concurrently being paid) to all Holders pursuant to this
Section 3. 
 (c) The Preferred Shares shall not be entitled to any dividend, whether payable in cash, in kind or other property,
in excess of or in any instance other than the Dividends as provided in this Section 3. 
 (d) So long as any
Preferred Shares remain outstanding, the Corporation shall not, directly or indirectly, make any Parity Securities Distribution or Junior Securities Distribution, other than (i) as may be required pursuant to that certain Commitment Agreement,
dated September 25, 2012, by and between the Corporation and Pegasus Partners IV, L.P., as may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof, (ii) subject to
Section 5, for the redemption of any shares of the Series H Preferred Stock or Series I Preferred Stock or (iii) with respect to any other Parity Securities Distribution, to the extent that such distribution is made in
accordance with the requirements of Section 11(b) and the Holders participate in such Parity Securities Distribution in exactly the same manner, to the same extent and in the same proportions (on an as converted basis) as all other
Parity Liquidation Shares. 

  
 2 

 4. Conversion. 

(a) Conversion at Option of Holder. Each Preferred Share shall be convertible, at the option of the Holder thereof, at any time and from
time to time, into the number of duly authorized, validly issued, fully paid and nonassessable shares of Common Stock equal to the number of Optional Conversion Shares issuable with respect to each Preferred Share (subject to
Section 4(e)). In the event of a Liquidation Event, the conversion rights provided by this Section 4(a) shall terminate at the close of business on the last full day preceding the date fixed for payment of any amounts
distributable on such Liquidation Event to the Holders. 
 (b) Procedures for Conversion at Option of Holder. Each Holder shall effect
an optional conversion pursuant to Section 4(a) by providing the Corporation with a written conversion notice specifying (i) the number of Preferred Shares to be converted and (ii) the date on which such conversion is to be
effected (such date, the “Conversion Date”), which conversion date and time shall not be prior to the date such Holder delivers such notice to the Corporation nor more than twenty (20) business days thereafter. If no Conversion
Date is specified in a notice of conversion, the Conversion Date shall be the date that such notice of conversion to the Corporation is deemed delivered to the Corporation hereunder. To effect any conversion of the Preferred Shares, each Holder
shall surrender the certificate(s) representing such Preferred Shares to the Corporation. Any Preferred Shares converted into Common Stock pursuant to the terms hereof shall be canceled and shall not be reissued. As soon as practicable after the
Conversion Date and the surrender of the certificate(s) representing Preferred Shares, the Corporation shall issue and deliver to each such Holder or its nominee, at such Holder’s address as it appears on the books of the Corporation, a
certificate(s) for the number of Optional Conversion Shares. Such conversion shall be deemed to have been made on the Conversion Date, and the Holder entitled to receive the shares of Common Stock issuable upon such conversion shall be treated for
all purposes as the record holder of such shares of Common Stock on the Conversion Date. Unless a Holder converts all of its Preferred Shares pursuant to an Optional Conversion, the Corporation shall, as soon as practicable and in no event later
than five (5) business days after the Conversion Date and at its own expense, issue a new certificate evidencing the number of Preferred Shares owned by such Holder after giving effect to the Preferred Shares converted on the Conversion Date.

 (c) Conversion at the Option of the Corporation. At any time on or after the first date that fewer than 2,500 Preferred Shares
remain outstanding in the aggregate (as adjusted for any Reclassification (as defined below) of the Preferred Shares), then at the Corporation’s option and election, all outstanding Preferred Shares, in whole but not in part, may be converted
automatically into the number of duly authorized, validly issued, fully paid and nonassessable shares of Common Stock equal to the number of Optional Conversion Shares with respect to all outstanding Preferred Shares (subject to
Section 4(e)). The Corporation shall effect an optional conversion pursuant to this Section 4(c) by mailing a written conversion notice to each Holder at the address of record on the books of the Corporation specifying
(i) the Conversion Date, which conversion date and time shall not be prior to fifteen (15) days after the date the Corporation delivers such notice, and (ii) (A) that at any time prior to the Conversion Date, each Holder shall
have the right in lieu of conversion to exercise its right to redeem such Preferred Shares for an amount in cash equal to the Liquidation Amount with respect thereto in the same manner as upon receipt of a Mandatory Redemption Notice pursuant to
Section 5(a)(i), and (B) the Redemption Date with respect to any such Redemption (as defined below), which Redemption Date shall be no more than sixty (60) days after the Conversion Date. 

(d) Automatic Conversion. Upon the date on which a Qualified Public Offering is consummated (the “Forced Conversion
Date”), each Preferred Share shall automatically be converted (a “Forced Conversion”), into the number of duly authorized, validly issued, fully paid and nonassessable shares of Common Stock equal to the greater of
(1) the number of Optional Conversion Shares issuable 

  
 3 

 
with respect to each Preferred Share (subject to Section 4(e)) or (2) the quotient obtained by dividing (I) the Returned Value by (II) the price per share of Common Stock
paid by the public in such Qualified Public Offering. All outstanding Preferred Shares shall, on the Forced Conversion Date, be converted into Common Stock for all purposes, notwithstanding the failure of any Holder thereof to surrender any
certificate representing such shares on or prior to such date. On and after the Forced Conversion Date, (w) no Preferred Shares shall be deemed to be outstanding or be transferable on the books of the Corporation; and (x) each Holder, as
such, shall not be entitled to receive any dividends or other distributions, to receive notices or to vote such Preferred Shares or to exercise or enjoy any other powers, preferences or rights in respect thereof, other than (y) the right, upon
surrender of the certificate(s) representing such Preferred Shares, to receive a certificate(s) for the shares of Common Stock into which such shares have been converted, and (z) all dividends accrued and unpaid with respect to Preferred Shares
accrued up to and including the Forced Conversion Date. On the Forced Conversion Date, all such Preferred Shares shall be retired and cancelled and shall not be reissued. 

(e) Fractional Shares. No fractional shares of Common Stock or scrip shall be issued upon conversion of any Preferred Shares. In lieu of
any fractional share to which any Holder would otherwise be entitled, based on the number of Preferred Shares of such Holder being converted in a single or series of related transactions, the Corporation shall issue a number of shares of Common
Stock to such Holder rounded up to the nearest whole number of shares of Common Stock. No cash shall be payable to any Holder upon conversion of Preferred Shares. 

5. Redemption. 
 (a)
Redemption Rights; Automatic and at Option of Holders. 
 (i) Upon the Corporation’s receipt of written notice of
any Series H Redemption, the Corporation shall redeem all of the Preferred Shares for an amount in cash equal to the Liquidation Amount of such Preferred Shares (the “Mandatory Redemption”) unless, and only to the extent that, any
Holder of Preferred Shares gives written notice to the Corporation of such Holder’s election to have less than all or none of its Preferred Shares so redeemed. The Corporation shall mail via nationally recognized overnight courier service to
each Holder at the address of record on the books of the Corporation, and e-mail and fax (to the extent the Corporation has a current e-mail and fax number, as applicable, on record for such Holder) a written notice (a “Mandatory Redemption
Notice”) of such Mandatory Redemption not later than one (1) business day following the Corporation’s receipt of notice of a Series H Redemption, which Mandatory Redemption Notice shall specify the earliest redemption date for
that Series H Redemption. Each Holder shall have until the earliest redemption date specified in the Mandatory Redemption Notice triggering the Mandatory Redemption to deliver a notice to the Corporation electing to exercise its right to have less
than all or none of its Preferred Shares redeemed (a “Notice of Non-Redemption”). To the extent any Preferred Shares are redeemed in a Mandatory Redemption, such Mandatory Redemption shall be senior to and payable in full prior to
the payment of any amounts pursuant to any Series H Redemption or Series I Redemption (including, without limitation, with respect to the Series H Redemption that triggered the Mandatory Redemption); provided, that the redemption date for
such Mandatory Redemption (the “Mandatory Redemption Date”) shall be the earliest redemption date specified in the Mandatory Redemption Notice triggering the Mandatory Redemption. If, for any or no reason at all, the Series H
Redemption triggering the Mandatory Redemption is withdrawn or if the Corporation satisfies or cures, or the applicable Series H Holders waive, the obligation or obligations giving rise to such Series H Redemption, or any other action is taken such
that there is no longer an obligation on the part of the Corporation to consummate the Series H Redemption at such time, and no shares of Series H Preferred Stock are redeemed, the Holders shall no longer have the right to redeem Preferred Shares on
such Mandatory Redemption Date. 

  
 4 

 (ii) Notwithstanding anything in Section 5(a)(i) the contrary, after
the Corporation has redeemed any shares of the Series H Preferred Stock, each Holder may at any time and from time to time thereafter elect to have all or a portion of such Holder’s Preferred Shares redeemed by the Corporation for an amount in
cash equal to the Liquidation Amount of such Preferred Shares (the “Optional Redemption Right”). 
 (iii)
For the avoidance of doubt, the obligations of the Corporation to the Holders shall be senior to the obligations of the Corporation to any and all Junior Liquidation Shares. 

(b) Limitations on Redemption. Any redemption of Preferred Shares pursuant to this Section 5 or Section 6 (a
“Redemption”) shall be payable out of any cash or surplus available therefor under applicable Delaware law, and if there is not a sufficient amount of cash or surplus available, then out of the remaining assets of the Corporation
available therefor under applicable Delaware law (valued at the fair market value thereof on the date of payment, as determined by the Board of Directors). If the Redemption is executed prior to or simultaneously with any Series H Redemption or any
Series I Redemption, the Corporation shall pay all Holders of Preferred Shares any amounts payable pursuant to such Redemption prior to any payments made in respect of any Junior Liquidation Shares. At the time of a Redemption, the Corporation shall
take all actions required or permitted under Delaware law to permit the Redemption of the Preferred Shares, including, without limitation, through the revaluation of its assets in accordance with Delaware law, to make funds available under
applicable Delaware law for such Redemption or to determine the existence of sufficient surplus. Notwithstanding anything to the contrary herein, the Corporation shall not be permitted or required to redeem any Preferred Shares for so long as such
Redemption would result in an event of default under: (x) that certain Second Lien Letter of Credit, Loan and Security Agreement, dated September 20, 2011, by and among the Corporation, as borrower, the guarantors and lenders party from
time to time thereto and Ares Capital Corporation, as agent; (y) that certain Loan and Security Agreement, dated as of November 22, 2010, by and among the Corporation, the guarantors and lenders from time to time party thereto, Wells Fargo
Bank, National Association, as agent, (or its successor) and Wells Fargo Capital Finance, LLC, as sole lead arranger, manager and bookrunner (or its successor) (together, (x) and (y), the “Credit Facilities”); or (z) any
amendments or restatements of, supplements to, or new facility or facilities entered into in replacement of, the Credit Facilities in accordance with the terms hereof, including Section 11(b) (to the extent applicable). 

(c) Redemption Procedures. 

(i) A Redemption pursuant to Section 5(a)(i) shall occur automatically on the applicable Mandatory Redemption Date
unless and only to the extent that the Holder has provided the Corporation with a Notice of Non-Redemption specifying the number of Preferred Shares to be retained by such Holder. 

(ii) Holders shall exercise the Optional Redemption Right (an “Optional Redemption”) by providing the
Corporation with a written notice of their election to exercise such Optional Redemption Right (an “Optional Redemption Notice”) specifying (i) the number of Preferred Shares to be redeemed and (ii) the date on which such
Optional Redemption is to be effected (the “Optional Redemption Date”), which Optional Redemption Date and time shall not be prior to sixty (60) days after delivery of such Optional Redemption Notice to the Corporation nor more
than one hundred eighty (180) days thereafter. 

  
 5 

 (iii) To effect a Redemption of the Preferred Shares, a Holder shall surrender
the certificate(s) representing such Preferred Shares to the Corporation. On the Mandatory Redemption Date or Optional Redemption Date, as applicable, the Corporation shall pay the Liquidation Amount by check to the order of the record holder of the
Preferred Shares or, if written instructions are provided therefor in the Mandatory Redemption Notice or Optional Redemption Notice, as applicable, or otherwise (it being acknowledged that e-mail instruction shall be sufficient), by wire transfer of
immediately available funds in accordance with such instructions. Unless all of a Holder’s Preferred Shares are redeemed on the Mandatory Redemption Date or Optional Redemption Date, as applicable, the Corporation shall, as soon as practicable
and in no event later than five (5) business days after the Mandatory Redemption Date or Optional Redemption Date, as applicable, and at its own expense, issue a new certificate evidencing the number of Preferred Shares owned by such Holder
after giving effect to the Preferred Shares redeemed on the Mandatory Redemption Date or Optional Redemption Date, as applicable. Any Preferred Shares redeemed pursuant to the terms hereof shall be canceled and shall not be reissued. 

(d) Other than with respect to a Mandatory Redemption (in the event any Holder elects not to be so Redeemed) or Optional Redemption as set
forth in Section 5(a), in no event shall the Corporation or any of its Subsidiaries redeem, purchase or acquire any Preferred Shares from one or more Holders unless the Corporation (or the applicable Subsidiary) irrevocably offers to
simultaneously redeem, purchase or acquire a pro rata amount of Preferred Shares from each other Holder on the same terms. 
 6. Change
of Control. 
 (a) Except to the extent Section 9(b) applies, upon consummation of a Change of Control, the Corporation
shall immediately (and in any event within two (2) business days) make an offer in writing to each Holder to redeem all of the outstanding Preferred Shares for cash equal to the aggregate Liquidation Amount with respect to such Preferred
Shares. 
 (b) Upon a Change of Control, the Corporation shall give to each Holder notice (the “Change of Control Notice”)
of the occurrence of the Change of Control and of the Holder’s right to receive the Liquidation Amount as a result of such Change of Control (the “Repurchase Right”). The Change of Control Notice shall be mailed to each Holder
at the address of record on the books of the Corporation and shall state (i) the date on which the Preferred Shares shall be repurchased (the “Repurchase Date”); (ii) the date by which the Repurchase Right must be
exercised, which date shall be no earlier than twenty (20) days after the delivery by the Corporation of the Change of Control Notice (the “Repurchase Right Expiration Date”); (iii) the Liquidation Amount; and (iv) a
description of the procedures a Holder must follow to exercise the Repurchase Right. 
 (c) To exercise the Repurchase Right, a Holder shall
deliver to the Corporation, on or before the Repurchase Right Expiration Date, a written notice specifying the number of Preferred Shares to be repurchased by the Corporation. Each Holder shall retain the right to convert Preferred Shares at any
time on or prior to the Repurchase Date, or to withdraw an election to have such shares repurchased at any time on or prior to the Repurchase Date. 

  
 6 

 (d) Notwithstanding anything herein to the contrary, the Corporation shall comply with all
requirements under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the Repurchase Right as a result of a Change of Control. No failure by the
Corporation to give the Change of Control Notice and no defect in any Change of Control Notice shall limit any Holder’s right to exercise its Repurchase Right or affect the validity of the proceedings for the repurchase of Preferred Shares.

 7. Liquidation. In the event of any voluntary or involuntary liquidation, dissolution or winding-up of the Corporation (a
“Liquidation Event”), the Holders shall be entitled to receive and to be paid out of the assets of the Corporation, the Liquidation Amount of the Preferred Shares held by them; provided, that the Holders (i) shall not be
entitled to receive the Liquidation Amount of the Preferred Shares held by them until the liquidation value of any and all Senior Liquidation Shares shall have been paid in full, and (ii) shall be entitled to receive the Liquidation Amount of
such shares held by them in preference to and in priority over any distributions upon any Junior Liquidation Shares. Upon payment in full of the then present Liquidation Amount to which the Holders are entitled, the Holders will not be entitled to
any further participation in any distribution of assets by the Corporation and the Preferred Shares held by such Holders shall be deemed redeemed and cancelled. If the assets of the Corporation are not sufficient to pay in full the then present
Liquidation Amount payable to the Holders and the liquidation value payable to the holders of any Parity Liquidation Shares, the holders of all such shares shall share ratably in such distribution of assets in accordance with the amounts that would
be payable on the distribution if the amounts to which the Holders and the holders of any Parity Liquidation Shares are entitled were paid in full. For purposes of this Section 7, a Change of Control (in and of itself) shall not be
deemed a Liquidation Event (it being understood that an actual liquidation, dissolution or winding up of the Corporation in connection with a Change of Control will be subject to this Section 7). 

8. Status and Reservation of Shares. 

(a) Status. All Preferred Shares that are at any time converted pursuant to Section 4 or redeemed or repurchased pursuant to
Sections 5, 6 or 7, and all Preferred Shares that are otherwise reacquired by the Corporation and subsequently canceled by the Board of Directors, shall be retired and shall not be subject to reissuance and shall be
automatically returned to the status of authorized and unissued shares of preferred stock of the Corporation, available for future designation and issuance pursuant to the terms of the Corporation’s Certificate of Incorporation. 

(b) Reservation. On and after the Investment Date, the Corporation shall at all times reserve and keep available out of any stock held
as treasury or out of its authorized but unissued Common Stock, or both, solely for the purpose of effecting optional conversions or the Forced Conversion, no less than the aggregate number of shares of Common Stock equal to the product obtained by
multiplying (a) the Optional Conversion Shares by (b) the aggregate number of issued and outstanding Preferred Shares. All shares of Common Stock issued upon conversion of the Preferred Shares will, upon issuance by the Corporation, be
duly and validly issued, fully paid and nonassessable, not issued in violation of any preemptive rights arising under law or contract and free from all taxes, liens and charges with respect to the issuance thereof, and the Corporation shall take no
action which will cause a contrary result. 
 9. Certain Adjustments. 

(a) Stock Reclassifications, Splits and Dividends. If the Corporation, at any time while any Preferred Shares remain outstanding, shall
undertake any reclassification, stock split, reverse stock split, stock dividend, subdivision, combination, consolidation, recapitalization or any similar proportionately-applied change (collectively, a “Reclassification”) of
outstanding shares of Common Stock (other than a change in, of, or from par value), then the Conversion Price shall be adjusted such that each Holder shall 

  
 7 

 
thereafter be entitled to receive upon conversion the kind and amount of shares of Common Stock and/or other Capital Stock and/or property that such Holder of outstanding Preferred Shares would
have been entitled to acquire immediately prior to such Reclassification as if such Preferred Shares were converted to Common Stock immediately prior to such Reclassification. Any adjustment made pursuant to this Section 9(a) shall
become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or
reclassification. 
 (b) Mergers or Consolidations. If at any time or from time to time prior to a conversion pursuant to
Section 4(a), Section 4(c) or Section 4(d) there is a merger, consolidation or similar capital reorganization of the Common Stock (each a “Reorganization”), then as part of such Reorganization,
provision shall be made so that each Holder of outstanding Preferred Shares at the time of such Reorganization shall thereafter be entitled to receive, upon conversion of such Preferred Shares and in lieu of Common Stock, the Capital Stock or
property that such Holder of outstanding Preferred Shares would have been entitled to receive in such Reorganization as if such Preferred Shares were converted to Common Stock immediately prior to such Reorganization, subject to adjustment in
respect of such Capital Stock by the terms thereof. In any such case, the resulting or surviving entity (if not the Corporation) shall expressly assume the obligations to deliver, upon such conversion, such Capital Stock or property as the Holders
of Preferred Shares remaining outstanding (or of other convertible preferred stock received by such Holders in place thereof) shall be entitled to receive pursuant to the provisions hereof, and to make provisions for the protection of the conversion
rights as provided above. If this Section 9(b) applies to a Reorganization, Section 9(a) shall not apply to such Reorganization. 

(c) Mandatory Exchange into Follow-On Securities; Automatic Amendments. 

(i) To the extent that (x) Pegasus and Riverwood collectively hold more than a majority of the outstanding Preferred
Shares (as adjusted for any Reclassification of the Preferred Shares) and (y) in connection with any Qualified Follow-On, Pegasus and Riverwood elect to exercise their rights pursuant to the Subscription Agreement to exchange all of the
Preferred Shares then held by Pegasus and Riverwood into the equivalent face amount (based on the original purchase price for such Preferred Shares and the purchase price for such Follow-On Securities) of the Follow-On Securities being offered in a
such Qualified Follow-On on substantially the same terms and conditions that govern such Qualified Follow-On (an “Exchange”), then all of the then-outstanding Preferred Shares held by all of the Holders shall participate in such
Exchange and be mandatorily exchanged into the equivalent face amount (based on the original purchase price for such Preferred Shares and the purchase price for such Follow-On Securities) of the Follow-On Securities being offered in such Qualified
Follow-On on substantially the same terms and conditions that govern such Qualified Follow-On. 
 (ii) Upon the issuance of
any Follow-On Securities in a Qualified Follow-On that would, upon the conversion thereof, permit the holders thereof to receive shares of Common Stock at a price per share (regardless of the form of consideration to be paid) less than the
Conversion Price, then the Conversion Price in effect immediately prior to such Qualified Follow-On shall be adjusted so that the Conversion Price shall equal the price at which the holders of such Follow-On Securities are able to convert such
Follow-On Securities into shares of Common Stock. In determining whether any Follow-On Securities entitle the holders thereof to receive shares of Common Stock at a price per share less than the Conversion Price, there shall be taken into account
any consideration received by the Corporation for such Follow-On Securities, the value of such consideration, if other than cash, to be determined in good faith by the Board, whose determination shall be conclusive and described in a certificate
filed with the records of corporate proceedings of the Corporation. 

  
 8 

 (iii) If, in connection with any Follow-On Offering, either the Series H
Certificate of Designation, on the one hand, or the Series I Certificate of Designation, on the other, is amended in a manner that is more favorable to the Series I Holders, on the one hand, or the Series H Holders, on the other (any such
amendments, the “Improved Terms”), then, to the extent that the Certificate of Designation contains any term that is equivalent to the Improved Term in the Series H Certificate of Designation or Series I Certificate of Designation
and without any action required on the part of any Holder, the Series J Certificate of Designation shall similarly be amended to provide the Holders with the benefit of the applicable Improved Terms. Notwithstanding the foregoing, no term contained
in the Series H Certificate of Designation and Series I Certificate of Designation in effect immediately following consummation of any Follow-On Offering shall be deemed to be an Improved Term to the extent that the difference between the applicable
term in the Series H Certificate of Designation or Series I Certificate of Designation is substantially similar to the difference in the Series H Certificate of Designation and Series I Certificate of Designation as of the date of the Subscription
Agreement. 
 10. Voting Rights. 

(a) Generally. Unless otherwise provided by any Federal or State law, the Corporation’s Certificate of Incorporation, the
Corporation’s Bylaws, this Section 10 or Section 11 hereof, the Holders shall not have the right to vote for the election of directors or on any other matters presented to the Corporation’s stockholders for action
by their written consent or at any annual or special meeting of stockholders. On any matter on which the Holders are entitled by any Federal or State law, under the Corporation’s Certificate of Incorporation or Bylaws or pursuant to this
Section 10 or Section 11 hereof to vote separately as a class, each such Holder shall be entitled to one vote for each Preferred Share held and such matter shall be determined by a majority of the Preferred Shares voting on
such matter. Notwithstanding the foregoing, the joint vote, consent, approval, waiver or authorization of each Primary Investor on any matter, including without limitation, any matter on which the Holders are entitled by any Federal or State law
(other than as may be required by Section 242(b)(2) of the Delaware General Corporation Law), under the Corporation’s Certificate of Incorporation or Bylaws or pursuant to this Series J Certificate of Designation to vote separately as a
class, shall be, and shall be deemed to be, the vote, consent, approval, waiver or authorization of all of the Preferred Shares and the Holders of all of the Preferred Shares; provided, that no Primary Investor shall, without the consent of
each adversely affected Holder, act to amend this Series J Certificate of Designation so as to alter the terms of the Preferred Shares of any Holder in a manner different from the other Holders with respect to their Preferred Shares or otherwise
specifically targeting and materially and adversely affecting any such Holder with respect to its Preferred Shares in a manner different from the other Holders with respect to their Preferred Shares (and for the avoidance of doubt, the foregoing
shall not restrict the ability of the Corporation and/or any Primary Investor to effect a Reorganization that complies with the terms and provisions of Section 9(b) in all respects, or an amendment to this Certificate of Designation to
comply with the terms and conditions set forth in Section 9(c) or in Section 5 of the Subscription Agreement). The foregoing sentence may not be amended without the consent of each Holder of Preferred Shares. 

(b) Waivers. Any provision of this Certificate of Designation may be waived in a written instrument executed by the waiving party
including, without limitation, a waiver executed by each Primary Investor in accordance with the third sentence of Section 10(a). 

11. Restrictions and Limitations. 

(a) The Holders of the Preferred Shares are entitled to vote separately as a single class on all matters to which they are entitled to vote
under Section 242(b)(2) of the Delaware General Corporation Law, and on all other matters as required by applicable law, including (i) any increase or decrease in the authorized amount of Preferred Shares, except for the cancellation and
retirement of shares set forth in Section 8(a); and (ii) any amendment, alteration or change in the powers, preferences or special rights of the Preferred Shares that would affect the Holders adversely. 

  
 9 

 (b) The Corporation shall not, without the written consent of each Primary Investor: 

(i) alter, modify or amend (whether by amendment to the Certificate of Incorporation or Bylaws, merger, consolidation or
otherwise) the terms, rights, preferences, privileges or powers of, or the other restrictions provided for the benefit of, the Series in any way as set forth herein or in any other agreement entered into by the Corporation (provided, that the
written consent of the Primary Investor(s) pursuant to this Section 11(b)(i) shall not be required to make such alteration, modification or amendment if effected solely to consummate, and which is otherwise conditioned upon the
consummation of, a Reorganization that complies with the terms and provisions of Section 9(b) or Section 9(c) in all respects); 

(ii) re-issue (whether by merger or otherwise) any Preferred Shares that have been converted, redeemed or otherwise reacquired
by the Corporation; 
 (iii) pay dividends or cash interests or other distributions (whether in cash, Equity Securities or
otherwise) on, redeem or repurchase or otherwise acquire any Capital Stock, Equity Securities, convertible debt, or debt coupled with any Common Stock Equivalents of the Corporation other than (i) as may be required by any Senior Liquidation
Shares issued in accordance with the terms hereof, including Section 11(b)(vii) and (ii) as part of any Series H Redemption or Series I Redemption to the extent that such redemption(s) are made in accordance with, and subject to,
the terms and conditions of Section 5. 
 (iv) liquidate, dissolve or wind-up the affairs of the Corporation or
otherwise initiate any insolvency proceeding or any proceeding under the Bankruptcy Reform Act of 1978, as amended, or other applicable bankruptcy or insolvency laws; 

(v) engage in any recapitalization, merger, consolidation, reorganization or similar transaction; provided, that such
consent may not be unreasonably withheld, conditioned or delayed to the extent such transaction will constitute a Change of Control and the Corporation has available, or will obtain in connection with such transaction, sufficient proceeds to redeem
all of the Preferred Shares in accordance with the provisions of Section 6 and, for the avoidance of doubt, to the extent such transaction will constitute a Change of Control, this subsection (v) is not intended to be
utilized by the Primary Investor(s) to modify the amount of proceeds payable to the Holders with respect to the Preferred Shares upon such Change of Control from the amount to which such Holders would otherwise be entitled pursuant to
Section 6 hereof upon such Change of Control; or other than in the ordinary course of business, form or maintain any direct or indirect Subsidiary; 

(vi) engage in a public offering or listing of Equity Securities (including indirectly by means of equity securities of a
successor entity or otherwise) on any national securities exchange, other than (A) in connection with a Qualified Public Offering, (B) an offering made in connection with a business acquisition pursuant to a registration statement on Form
S-4 or any similar form that does not otherwise require consent pursuant to this Section 11(b), or (C) in connection with an employee benefit plan pursuant to a registration statement on Form S-8 or any similar form; 

  
 10 

 (vii) other than with respect to any Permitted Equity Issuance, (A) issue
any Senior Liquidation Shares or Parity Liquidation Shares, or reclassify any outstanding Equity Securities into Senior Liquidation Shares or Parity Liquidation Shares or (B) issue any other Equity Securities, or reclassify any other
outstanding Equity Securities; provided, that consent shall not be required pursuant to this Section 11(b)(vii) with respect to any issuance of Equity Securities to the extent the proceeds thereof shall upon receipt thereof
immediately be used to satisfy in full the obligations of the Corporation to redeem all then-outstanding Preferred Shares pursuant to Section 4, Section 5 or Section 6 hereof; 

(viii) incur any Indebtedness (A) in excess of $50.0 million, other than (x) any Indebtedness incurred pursuant to a
refinancing of the Credit Facilities or any other working capital facilities of the Corporation in effect as of the Investment Date, in each case without any increase in the available principal amount thereof or (y) pursuant to any refinancing
or replacement of the Credit Facilities with respect to working capital or other working capital facilities as approved by the Board of Directors, in each case such that the aggregate available principal amount thereunder is secured only by the
Corporation’s account receivables and finished goods inventory and does not exceed 80% of accounts receivable, 60% of finished goods inventory and $75 million in the aggregate (each of (A)(x) and (A)(y), “Permitted
Indebtedness”); or (B) containing any provision that limits the Corporation’s ability to redeem any Preferred Shares pursuant to Section 5(a) for a period that exceeds that contained in the Credit Facilities as in
effect as of the Investment Date; provided, that if such provision is contained in any Permitted Indebtedness, such Indebtedness shall continue to be Permitted Indebtedness for purposes of the foregoing clause (A) and consent shall only
be required pursuant to this clause (B) with respect to such provision; and provided further that consent shall not be required pursuant to this Section 11(b)(viii) for Indebtedness to the extent the proceeds thereof
shall upon receipt thereof immediately be used to satisfy in full the obligations of the Corporation to redeem all then-outstanding Preferred Shares pursuant to Section 4, Section 5 or Section 6 hereof; 

(ix) enter into any new agreements or transactions or series of agreements or transactions with any Affiliate of the
Corporation or any holder of five percent (5%) or more of the Corporation’s Capital Stock or any Affiliates of any such stockholder of the Corporation (a “Related Party Agreement”) or amend or modify the terms of any
existing Related Party Agreements, other than: (A) up to $500,000 in the aggregate of fees or other amounts payable annually by the Corporation to Pegasus pursuant to any management or similar services agreement; (B) up to $200,000 in the
aggregate of fees or other amounts payable annually by the Corporation to Riverwood or any of its Affiliates pursuant to any management or similar services agreement; and (C) up to $100,000 in the aggregate of fees or other amounts payable
annually by the Corporation to any Significant Holder or its Affiliates pursuant to any management or similar services agreement; 

(x) purchase, acquire, license, transfer, sell, divest, or dispose of property, rights or assets (whether tangible or
intangible) of the Corporation or any of its Subsidiaries (whether by merger, consolidation, other business combination, purchase or sale of Capital Stock or other Equity Security, spin-off, divestiture, asset
purchase, asset sale or other transaction involving the Corporation or any of its Subsidiaries) or enter into any joint venture where either (A) the aggregate consideration to be paid or received by the Corporation or any of its Subsidiaries,
or (B) the fair market value of the relevant property, rights or assets, in one transaction or a series of related transactions, exceeds $5.0 million, other than commercial transactions with customers and distributors for the sale of the
Corporation’s products in the ordinary course of business; provided, that such consent may not be unreasonably withheld, conditioned or delayed to the extent such transaction will constitute a Change of Control and the Corporation has
available, or will obtain in connection with such transaction, sufficient proceeds to redeem all of the Preferred Shares in accordance with the provisions of Section 6 and, for the avoidance of doubt, to the

  
 11 

 
extent such transaction will constitute a Change of Control, this subsection (x) is not intended to be utilized by the Primary Investor(s) to modify the amount of proceeds payable to
the Holders with respect to the Preferred Shares upon such Change of Control from the amount to which such Holders would otherwise be entitled pursuant to Section 6 hereof upon such Change of Control; 

(xi) (A) appoint a new, or remove the then-current, Chief Executive Officer, Chief Operating Officer, Chief Financial Officer
or Chief Technology Officer (or equivalents thereof) of the Corporation and any other senior executive officer having a comparable scope of authority to the foregoing with respect to his or her relevant function, or (B) determine or modify any
compensation (including cash and equity) or establish any compensation performance targets for any individual that is an “officer” of the Corporation as such term is defined in Rule 3b-2 of the Exchange Act; 

(xii) enter into any definitive agreement or commitment with respect to any of the foregoing; or

(xiii) indirectly engage in any of the foregoing through an affiliated person (including without limitation Pegasus or
Riverwood), including cause or permit any Subsidiary to engage in or enter into any definitive agreement or commitment with respect to any of the foregoing. 

(c) In the event that the Holders of at least a majority of the outstanding Preferred Shares agree (whether by a vote, written consent, waiver
or otherwise) to allow the Corporation to alter or change the rights, preferences or privileges of the Series pursuant to applicable law, no such change shall be effective to the extent that, by its terms, such change applies to less than all of the
Preferred Shares then outstanding. 
 (d) Notwithstanding anything to the contrary herein, subject to applicable law, the provisions of this
Section 11 shall terminate automatically and be of no further force or effect upon the consummation of a Qualified Public Offering or the conversion or redemption of all outstanding Preferred Shares pursuant to Section 4(c).

 12. Covenants. 

(a) For so long as any Primary Investor continues to beneficially own at least 2,000 Preferred Shares (as adjusted for any Reclassification of
the Preferred Shares), the Corporation agrees that: 
 (i) Maintenance of Existence; Compliance. The Corporation
shall, and shall cause each of its Subsidiaries to (A) preserve, renew and keep in full force and effect its organizational existence, (B) take all reasonable action to maintain all material rights, privileges and franchises necessary or
desirable in the normal conduct of its business and (C) comply in all material respects with all material contractual obligations and requirements of law applicable to the Corporation and its Subsidiaries, and its and their respective
properties, rights and assets. 
 (ii) Maintenance of Property; Insurance. The Corporation shall, and shall cause each
of its Subsidiaries to (A) keep all property necessary for the conduct of its business as conducted on the Investment Date in good working order and condition, ordinary wear and tear excepted, and (B) maintain with financially sound and
reputable insurance companies insurance on all property necessary for the conduct of its business in at least such amounts and against at least such risks (but including in any event public liability, product liability and business interruption) as
are usually insured against in the same general area by companies engaged in the same or a similar business. 

  
 12 

 (b) Notices. The Corporation shall, and shall cause each of its Subsidiaries to, promptly
give the Holders written notice of the occurrence of any Liquidation Event. 
 (c) Freedom to Pursue Corporate Opportunities. The
Corporation expressly acknowledges and agrees as follows, for so long as a Primary Investor or Significant Holder beneficially owns any Preferred Shares (or shares of Common Stock issued upon conversion thereof) (i) such Primary Investor or
Significant Holder and each director of the Corporation who is a member, director, officer, employee or Affiliate of such Primary Investor or Significant Holder (an “Affiliated Person”) has the right to, and shall have no duty
(contractual or otherwise) not to, directly or indirectly engage in the same or similar business activities or lines of business as the Corporation or any of its Subsidiaries, including those deemed to be competing with the Corporation or any of its
Subsidiaries; and (ii) in the event that such Primary Investor or such Affiliated Person acquires knowledge of a potential transaction or matter that may be a corporate opportunity for the Corporation, such Primary Investor, Significant Holder
or Affiliated Person shall have no duty (contractual or otherwise) to communicate or present such corporate opportunity to the Corporation or any of its Subsidiaries, as the case may be, and, notwithstanding any provision of any agreement to the
contrary, shall not be liable to the Corporation or its Affiliates or stockholders or creditors for breach of any duty (contractual or otherwise) by reason of the fact that such Primary Investor, Significant Holder or Affiliated Person, directly or
indirectly, pursues or acquires such opportunity for itself, directs such opportunity to another person, or does not present such opportunity to the Corporation or any of its Subsidiaries; provided, that the provisions of this
Section 12(c) shall not apply with respect to the actions of any individual while serving in an operational capacity as an officer or other employee of the Corporation. Each Primary Investor and each Significant Holder agrees on behalf
of itself and each Affiliated Person to keep confidential all proprietary and non-public information regarding the Corporation received in such capacity and not to use such proprietary and non-public information for any purpose other than in
connection with evaluating, monitoring or taking any other action with respect to the investment by such Primary Investor or such Significant Holder in the Preferred Shares, provided, that nothing herein shall prevent such Primary Investor,
Significant Holder or Affiliated Persons from disclosing or using any such information that (i) is or becomes generally available to the public in accordance with Federal or State laws other than as a result of a disclosure by such Primary
Investor, Significant Holder or Affiliated Persons in violation of this Section 12(c) or any other legal duty, fiduciary duty or other duty of trust and confidence, of such Primary Investor, Significant Holder or Affiliated Person;
(ii) was in such Primary Investor’s, such Significant Holder’s or such Affiliated Person’s possession or developed by it prior to being furnished with such information, as evidenced by such Primary Investor’s, such
Significant Holder’s or such Affiliated Person’s records; (iii) becomes available to such Primary Investor, Significant Holder or Affiliated Person on a non-confidential basis from a source other than the Corporation, or (iv) is
required to be disclosed by applicable law or legal process. 
 13. Transfers. 

(a) Generally. Subject to this Section 13, Preferred Shares may be Transferred by any Holder pursuant to a Permitted
Transfer. During the Restrictive Period, Holders may not Transfer Preferred Shares except pursuant to a Permitted Transfer. As used herein, the “Restrictive Period” shall mean the period commencing on the Investment Date and ending
upon the earliest of (A) May 25, 2015, (B) a Qualified Public Offering and (C) a Triggering Event. 
 (b) To the extent
the Restrictive Period ends by reason of the occurrence of the date provided in clauses (A) of the definition thereof, and neither a Qualified Public Offering nor a Redemption Event has occurred, Preferred Shares may be Transferred by any
Holder with the prior written consent of the Corporation, such consent not to be unreasonably withheld, conditioned or delayed, or pursuant to a Permitted Transfer. Notwithstanding the foregoing, Preferred Shares may be offered, sold, transferred or
assigned by any Holder without consent after the occurrence of a Change of Control or a Liquidation Event. 

  
 13 

 (c) All Transfers of Preferred Shares must also be made in accordance with the Securities Act,
and applicable state securities laws. Any attempted Transfer of Preferred Shares in violation of this Section 13 shall be null and void ab initio. 

(d) Primary Investor Rights. Notwithstanding Section 13(a), the Primary Investor Rights shall not be transferrable and shall
terminate with respect to such Transferred shares upon any Transfer by any Primary Investor of Preferred Shares. 
 (e) Lock-up. In
connection with a Qualified Public Offering or any other underwritten public offering, each Holder shall complete and execute a customary lock-up agreement to the extent required pursuant to the terms of the underwriting arrangements of the
Qualified Public Offering agreeing not to effect any public sale or distribution, including any sale pursuant to Rule 144 under the Securities Act, of any Capital Stock of the Corporation during the seven (7) day period prior to, and for the
one hundred and eighty (180) days after, the effective date of the registration statement for such Qualified Public Offering or other underwritten public offering (or such lesser period as the managing underwriters may require or permit),
except for such Capital Stock to be included in such offering; provided that all of the Corporation’s Affiliates and executive officers and all of the members of the Board of Directors are restricted in the same manner and for the same
duration; provided, further, that notwithstanding anything in this Section 13(e) to the contrary, in no event shall any Holder be obligated to execute a lock-up agreement restricting it or otherwise prohibiting it from
effecting any public sale or distribution, including any sale pursuant to Rule 144 under the Securities Act, of any Capital Stock for any period of time exceeding the period of time (including with respect to any requirements that such period be
applicable to other persons or entities) that such Holder has contractually agreed to in writing with the Corporation. 
 (f) Registration
Rights. To the extent that any shares of Common Stock are being offered for the account of selling stockholders in the Qualified Public Offering (an “Eligible Offering”), each Holder shall be permitted to participate in such
Eligible Offering and to sell an Eligible Amount of the shares of Common Stock issuable upon conversion of such Holder’s Preferred Shares. The Corporation will, at least twenty (20) days prior to the filing of a registration statement with
respect to an Eligible Offering, notify the Holders in writing of such Eligible Offering. Each Holder may elect to participate in such Eligible Offering (up to the Eligible Amount) by delivering written notice of such Holder’s election to the
Corporation within five (5) days after the Corporation’s delivery of the notice provided under this Section 13(f). The right of any Holder to participate in an Eligible Offering shall be conditioned upon such Holder agreeing
to: (i) sell its shares of Common Stock in the Eligible Offering on the basis provided in any customary underwriting arrangements and (ii) complete and execute all reasonable questionnaires, powers of attorney, indemnities, underwriting
agreements, and other documents required under the terms of such underwriting arrangements. The registration rights provided by this Section 13(f) shall be junior to any registration rights granted to any other holder of the
Corporation’s Equity Securities on or prior to the Investment Date and any registration rights granted after the Investment Date, in each case to the extent a written agreement evidencing such registration rights is executed by the parties and
provides rights senior to those provided by this Section 13(f). For the avoidance of doubt, the registration rights provided by this Section 13(f) shall be pari passu with the registration rights set forth in the
Series H Certificate of Designation and Series I Certificate of Designation. 

  
 14 

 14. Preemptive Rights.  

(a) Except with respect to any Exempt Equity Issuances or any offering of Capital Stock by the Corporation that is registered pursuant to the
Securities Act, if the Corporation after the date hereof, proposes to issue or sell any Equity Securities, the Corporation will, at least twenty (20) days prior to the proposed issuance or sale but subject to applicable Federal and State laws,
notify the Holders in writing (the “Issuance Notice”) of (i) the number and type of Equity Securities which the Corporation proposes to issue, the price thereof and the date on which such price shall be paid; (ii) all
other material terms and conditions, including terms of condition of payment, relating to the proposed issuance or sale; (iii) the proportionate number of Equity Securities which each Holder shall have the right to purchase, which shall be
equal to such Holder’s Pro Rata Share of such Equity Securities; and (iv) where the proposed purchasers of such Equity Securities are known, the identities of such proposed purchasers. Each Holder may elect to purchase all or any portion
of its respective Pro Rata Share of the securities to be issued in such issuance or sale at the same price and on the same terms identified in the notice. If electing to participate, such Holder (an “Exercising Holder”) shall be
required to purchase the same Equity Securities that are being issued by the Corporation and shall be entitled to make such purchase on the same terms and conditions, in each case as set forth in the Issuance Notice. Such Holder’s election to
participate in any such transaction must be made in writing and be delivered to the Corporation ten (10) days after the Corporation’s delivery of the Issuance Notice; provided, that if there is a material change in the
Corporation’s proposed terms or conditions of issuance or sale, a new Issuance Notice shall be provided to the Holders pursuant to this Section 14(a) and the Holders will have ten (10) days after the Corporation’s delivery
of such new Issuance Notice with such revised terms to reconfirm such Holder’s intention to invest. To the extent any Holder does not elect to purchase all of its Pro Rata Share of the Equity Securities (a “Declining Holder”),
the Exercising Holders shall be entitled to purchase the Equity Securities allocated to the Declining Holder, and the Corporation shall deliver to each Exercising Holder a written notice (the “Remaining Equity Notice”) not less than
fifteen (15) days after the date of the Issuance Notice specifying the aggregate number of Equity Securities that all of the Declining Holders did not elect to purchase. Each Exercising Holder shall have the right to purchase additional Equity
Securities, which right must be exercised not less than ten (10) days after delivery of the Remaining Equity Notice, by notifying the Corporation in writing (a “Second Exercise Notice”) of the maximum number of such Equity
Securities that such Exercising Holder wishes to purchase. To the extent the aggregate number of shares sought to be purchased under the Second Exercise Notices is equal to or less than the number of Equity Securities set forth in the Remaining
Equity Notice, each Holder delivering a Second Exercise Notice shall be entitled to purchase the number of Equity Securities set forth in such Holder’s Second Exercise Notice. To the extent the aggregate number of shares sought to be purchased
under the Second Exercise Notices is greater than the number of Equity Securities set forth in the Remaining Equity Notice, such Equity Securities shall be allocated among the Holders on a pro rata basis based on their relative Pro Rata Share. If
after notifying the Holders, the Corporation elects not to proceed with the issuance or sale, any elections made by such Holder shall be deemed rescinded. Notwithstanding anything to the contrary contained in this Section 14(a), if the
consideration to be received by the Corporation with respect to the issuance of Equity Securities specified in the Issuance Notice is other than cash to be paid upon the issuance of the Equity Securities (that is, if the consideration would
constitute so called “in kind” property), or if security is to be provided to secure the payment of any deferred portion of the purchase price, then any Holder exercising his, hers or its rights under this Section 14 may
purchase such Equity Securities by making a cash payment at the time of the closing specified in the Issuance Notice in the amount of the reasonably equivalent value of the “in kind” property specified in the Issuance Notice and/or may
provide reasonably equivalent security to that provided in the Issuance Notice. Such “reasonably equivalent value” or “reasonably equivalent security” shall be determined by the Board of Directors. In the event of any issuance or
sale of any debt securities by the Corporation to any Significant Holder or any Affiliate of any Significant Holder, in whole or in part, other than any offering of debt securities by the Corporation that is registered pursuant to the Securities Act
(a “Preemptive Debt Issuance”), such Preemptive Debt Issuance shall be treated in the same manner as an issuance of Equity Securities for purposes of the rights provided in this Section 14 and each Holder shall have the
right to notice of, and to elect to participate in, such Preemptive Debt Issuance as if each reference to “Equity Securities” in this Section 14 were replaced with a reference to such debt

  
 15 

 
securities. If, in connection with any issuance of Equity Securities or debt securities by the Corporation after the date hereof other than any Exempt Equity Issuance or any offering of Capital
Stock or debt securities that is registered pursuant to the Securities Act, the Corporation grants any Significant Holder or any Affiliate of any Significant Holder (i) any new material right or contractual benefit which is in addition and/or
supplemental to those rights and benefits of such Significant Holder that are in effect immediately prior to such issuance (and which is not granted as a condition of such issuance) or (ii) any additional securities (clauses (i) and
(ii) each, an “Ancillary Right”) in connection with or relating to such Significant Holder’s ownership of Preferred Shares, which Ancillary Right (x) is not otherwise made available to the Holders that exercise their
rights in full pursuant to this Section 14 and (y) does not arise out of a law, regulation, order or other legal circumstance that is applicable to such Significant Holder but not to such other Holders that exercise their rights in
full, then each other Significant Holder shall be offered a Pro Rata Share of such Ancillary Right on the same terms and conditions as such Significant Holder or such Affiliate of such Significant Holder in the same manner as is provided in this
Section 14, so long as such other Significant Holder participates in such issuance of Equity Securities or debt securities to the same extent on a pro rata basis as such Significant Holder or such Affiliate of such Significant Holder.

 (b) If the Holders do not elect to purchase all of the Equity Securities proposed to be issued in such issuance or sale as described in
Section 14(a), upon the expiration of the offering periods described in Section 14(a), the Corporation shall be entitled to sell any Equity Securities that the Holders have not elected to purchase during the one hundred and
twenty (120) calendar days following such expiration at a price not less than, and on other terms and conditions either substantially the same as, or more favorable to the Corporation than, those set forth in the Issuance Notice. Any shares of
Capital Stock offered or sold by the Corporation after such one hundred and twenty (120) day period (or, if prior to such one hundred and twenty (120) day period, at a price less than, or on other terms and conditions not substantially the
same as, or more favorable to the Corporation than, those offered set forth in the Issuance Notice) must be reoffered to the Holders pursuant to the terms of this Section 14. 

(c) Notwithstanding anything to the contrary contained in Section 14(a), in the event that the Board of Directors determines that
time is of the essence in completing any issuance of Equity Securities pursuant to this Section 14, the Corporation may issue or sell Equity Securities without first complying with the terms of Section 14(a); provided
that the terms of such issuance or sale shall require that, promptly following such issuance or sale, (i) the Corporation shall deliver an Issuance Notice to each Holder and (ii) each Holder shall have the right to purchase all or any part
of the Equity Securities described in the Issuance Notice (whether pursuant to the resale of Equity Securities by the initial purchaser(s) of such Equity Securities or the issuance by the Corporation of additional Equity Securities) upon the terms,
and subject to the conditions, set forth in Section 14(a). 
 15. Notices. 

(a) Notices of Record Date. In the event of any taking by the Corporation of a record of the holders of any class of the
Corporation’s Equity Securities for the purposes of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend) or other distribution, any right to subscribe for, purchase or otherwise acquire any
Equity Securities of any class or any other securities or property, or any other right, the Corporation shall mail to each Holder, at least ten (10) days prior to the date specified therein, a notice specifying the date on which any such record
is to be taken for the purpose of such dividend, distribution or right, and the amount and character of such dividend, distribution or right. 

  
 16 

 (b) Notices by the Corporation. Any notice required by the provisions of this Series J
Certificate of Designation to be given to the Holders shall be deemed given if sent by U.S. nationally recognized overnight courier service, and addressed to each holder of record at his or her address appearing on the books of the Corporation. 

16. Certain Definitions. As used in this Series J Certificate of Designation, the following terms shall have the following
respective meanings: 
 “Affiliate” of, or a person or entity “Affiliated” with, a specified person or
entity, is a person or entity that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person or entity specified. Notwithstanding the foregoing, for purposes hereof, the
Corporation, its Subsidiaries and its other controlled Affiliates shall not be considered Affiliates of any Holder by reason of such person being a Holder. 

“Appraiser” means a nationally recognized investment bank, financial advisor or valuation or appraisal firm selected by
mutual agreement of the Corporation and each Primary Investor as having appropriate experience in the Corporation’s industry in doing valuations of the nature required, which is independent of and not affiliated with the Corporation, any
Primary Investor whose agreement was required for the selection of the Appraiser, any other Holder participating in the relevant transaction or any of their respective Affiliates. 

“Capital Stock” of any person or entity means any and all shares, interests, rights to purchase, warrants, options,
participations or other equivalents of or interests in the common stock or preferred stock of such person or entity, including, without limitation, partnership and membership interests. 

“Change of Control” means (a) the sale, conveyance or disposition, including but not limited to any spin-off or in-kind
distribution (a “Divestiture”), by the Corporation or by one or more of its Subsidiaries, of all or substantially all of the assets of the Corporation (on a consolidated basis) to any person or group (other than the Corporation or
its wholly-owned Subsidiaries and other than pursuant to a joint venture arrangement in which the Corporation, directly or indirectly, receives at least fifty percent (50%) of the equity and voting interests); (b) the effectuation of a
transaction or series of related transactions in which more than thirty-five percent (35)% of the voting power of the Corporation is disposed of (other than (i) as a direct result of normal, uncoordinated trading activities in the Common Stock
generally or (ii) solely as a result of the disposition by a stockholder of the Corporation to an Affiliate of such stockholder); (c) any merger, consolidation, stock or asset purchase, recapitalization or other business combination
transaction (or series of related transactions) as a result of which the shares of Capital Stock entitled to vote generally in the election of directors and the Preferred Shares (treated on an as-converted basis) immediately prior to such
transaction (or series of related transactions) are converted into and/or continue to represent (on an as-converted basis), in the aggregate, less than sixty-five percent (65%) of the total voting power of all shares of Capital Stock that are
entitled to vote generally in the election of directors of the entity surviving or resulting from such transaction (or ultimate parent thereof); (d) a transaction or series of transactions in which any person, entity or “group” (as
such term is used in Sections 13(d) and 14(d) of the Exchange Act) acquires more than thirty-five percent (35)% of the voting equity of the Corporation (other than the acquisition by a person, entity or “group” that is an Affiliate of or
Affiliated with a person, entity or “group” that immediately prior to such acquisition, beneficially owned thirty-five percent (35)% or more of the voting equity of the Corporation) or (e) Pegasus ceases to beneficially own in the
aggregate at least ten percent (10%) of the outstanding Capital Stock of the Corporation, on a fully-diluted basis. 

“Conversion Price” means $0.95, subject to adjustment in accordance with the terms hereof. 

“Co-Sale Agreement” means the rights set forth in that certain co-sale agreement, dated as of September 25, 2012, among
Pegasus, Riverwood, Cleantech Europe II (A) LP, Cleantech Europe II (B) LP, Portman Limited and certain of their Affiliates. 

  
 17 

 “Co-Sale Rights” means the rights of each of the parties to the Co-Sale
Agreement, as set forth in such Agreement. 
 “Eligible Amount” means with respect to any Holder, the “Eligible
Amount” of shares of Common Stock equal to the product obtained by multiplying (a) the maximum number of shares of Common Stock that the underwriter(s) estimate(s) can be underwritten in connection with an Eligible Offering at a price
range that is acceptable to the Corporation less any shares of Common Stock being offered by the Corporation or any other person or entity holding registration rights that are senior to those granted to the Holders in this Series J Certificate of
Designation, by (b) a fraction, the numerator of which shall equal the number of shares of Common Stock issuable to such Holder upon the conversion of such Holder’s Preferred Shares, and the denominator of which shall equal the total
number of shares of Common Stock issuable to all Holders upon conversion of such Holders’ Preferred Shares that are requested to be included in the Eligible Offering. 

“Equity Securities” means any Capital Stock or any other equity securities of the Corporation and any of its Subsidiaries,
whether now or hereafter authorized, and any instrument convertible into or exchangeable for any of the foregoing equity securities or equity security. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Exempt Equity Issuance” means the issuance of any Capital Stock of the Corporation: (i) upon the
conversion or exercise of any options, warrants or rights to acquire securities of the Corporation which options, warrants or rights were (A) outstanding on the Investment Date (as certified by an officer of the Corporation to each Primary
Investor, (B) issued as part of another Exempt Equity Issuance or (C) offered to the Holders pursuant to an Issuance Notice in compliance with Section 14(a) hereof; (ii) compensatory issuances to (A) the executives
and directors of the Corporation in their capacity as such and (B) other employees of the Corporation in their capacity as such, in each case pursuant to an option, stock or other equity plan approved by the Board of Directors;
(iii) having a value of less than or equal to $15.0 million in the aggregate for all such issuances under this clause (iii), provided, that any such issuance must also be at a price per share (or equivalent security) greater than or
equal to the Conversion Price; (iv) in a Qualified Public Offering; (v) for consideration in lieu of cash pursuant to the bona fide acquisition of another corporation or entity by the Corporation by
consolidation, merger, purchase of all or substantially all of the assets of such other corporation or entity or fifty percent (50%) or more of the voting power of such other corporation or entity or fifty percent (50%) or more of the
equity ownership of such other corporation or entity approved by the Board of Directors and by each Primary Investor to the extent required (but only to the extent actually required) by Section 11(b) hereof, in each case the primary
purpose of which is not to raise capital; (vi) in connection with a bona fide strategic commercial agreement or commercial relationship as determined by the Corporation and approved by the Board of Directors
and by each Primary Investor to the extent required (but only to the extent actually required) by Section 11(b) hereof, the primary purpose of which is not to raise capital; (vii) pursuant to any stock split or reverse stock split;
(viii) upon the exercise by any Series H Holder of the preemptive rights granted pursuant to the terms of the Series H Certificate of Designation; (ix) upon the conversion of any shares of Series H Preferred Stock pursuant to the terms of
the Series H Certificate of Designation; (x) upon the exercise by any Series I Holder of any preemptive rights contained in the Series I Certificate of Designation; (xi) upon the conversion of any shares of Series I Preferred Stock
pursuant to the terms of the Series I Certificate of Designation; (xii) upon the exercise by any holder of Preferred Shares of the preemptive rights set forth in Section 14; or (xiii) shares of Capital Stock of the Corporation
issued upon conversion or exercise of the securities set forth in the foregoing clauses (i) – (xii); provided that “Exempt Equity Issuance” shall in no event include any issuance of Senior Liquidation Shares,
or any issuance of Parity Liquidation Shares. 

  
 18 

 “Fair Market Value” means, as of any date, the value of a share of the Common
Stock determined as follows: (a) if the Common Stock is publicly traded and is then listed on a national securities exchange, the volume weighted average closing price of the Common Stock on the ten (10) consecutive trading days
immediately preceding (but not including) such date on the principal national securities exchange on which the Common Stock is listed or admitted to trading as reported by Bloomberg L.P.; (b) if the Common Stock is publicly traded but is
neither listed nor admitted to trading on a national securities exchange, the volume weighted average closing price of the Common Stock on the ten (10) consecutive trading days immediately preceding (but not including) such date in the
over-the-counter market as reported by Bloomberg L.P.; (c) if the Common Stock is neither listed nor admitted to trading on a national securities exchange or quoted in the over-the-counter market, the average of the highest closing bid price
and the lowest closing ask price of any of the market makers for the Common Stock for the ten (10) consecutive trading days immediately preceding (but not including) such date as reported in the “pink sheets” by Pink Sheets LLC
(formerly the National Quotation Bureau, Inc.); or (d) if none of the foregoing is applicable, by an Appraiser, which Appraiser shall be instructed to present its conclusions within thirty (30) days and to use one or more valuation methods
that, in its best professional judgment, would be most appropriate to ascertain the price at which such Common Stock would change hands between a willing buyer and a willing seller, each having reasonable knowledge of relevant facts and neither
being under any compulsion to act; provided that the valuation of the Corporation by Appraiser shall assume that the Corporation has continued ownership of its Subsidiaries and other properties and continued benefit of its contractual and
other relationships and arrangements and shall take in to account other factors relevant to such valuation, including the prospects of the Corporation and its Subsidiaries, and the value of the estimated future earning of the Corporation and its
Subsidiaries. All such determinations shall be appropriately adjusted for any share dividend, share split or other similar transaction during such period. 

“Follow-On Offering” shall mean any issuance or sale of any security of the Corporation (whether debt, equity or otherwise
but excluding any security issued pursuant to an Exempt Equity Issuance or the Preemptive Rights Offering (as defined in the Subscription Agreement)), which offer for issuance or sale is made on or before the earlier of (i) the consummation of
one or more Qualified Follow-Ons that result in aggregate gross proceeds to the Corporation equal to or in excess of $30,000,000 and (ii) March 11, 2014 provided, that for purposes of this paragraph (ii) only, if the
Corporation has substantially negotiated the material terms of an issuance or sale by or prior to March 11, 2014, that, but for the fact that such transaction does not actually close by such date would have been a Follow-On Offering, then such
transaction, when and if consummated, shall still be considered a Follow-On Offering to the extent consummated on such terms within forty-five (45) days of March 11, 2014. 

“Follow-On Securities” shall mean, with respect to any Follow-On Offering or Qualified Follow-On, the securities of the
Corporation issued or sold in such Follow-On Offering or Qualified Follow-On. 
 “Holder” means any holder of Preferred
Shares, all of such holders being the “Holders.” 
 “Indebtedness” means, with respect to the Corporation
and its Subsidiaries: (a) any liabilities for borrowed money or amounts owed or indebtedness issued in substitution for or exchange of indebtedness for borrowed money; (b) obligations evidenced by notes, bonds, debentures or other similar
instruments; (c) obligations under leases (contingent or otherwise, as obligor, guarantor or otherwise) required to be accounted for as capitalized leases pursuant to generally accepted accounting principles; (d) obligations for amounts
drawn and outstanding under acceptances, letters of credit, contingent reimbursement liabilities with respect to letters of credit or similar facilities; (e) any liability for deferred purchase price of property or services, contingent or
otherwise, as obligor or otherwise, other than accounts payable incurred in the ordinary course of business and (f) any accrued and unpaid interest on, and any prepayment premiums, penalties or similar contractual charges in respect of, any of
the foregoing. 

  
 19 

 “Investment Date” means the first issue date of the Preferred Shares. 

“Junior Securities Distribution” means the declaration or payment on account of, or setting apart for payment money for a
sinking or other similar fund for, the purchase, redemption or other retirement of, any Junior Liquidation Shares, or any distribution in respect thereof, either directly or indirectly, and whether in cash, obligations, securities or other property,
or the purchase or redemption by any entity directly or indirectly controlled by the Corporation of any of the Junior Liquidation Shares. 

“Liquidation Amount” means the greater of (a) the Fair Market Value of the Optional Conversion Shares issuable to a
Holder upon conversion of each Preferred Share on the applicable date of determination and (b) the Returned Value. 

“Non-Pegasus Purchasers” shall mean, collectively, Riverwood, Zouk and Portman. 

“Optional Conversion Shares” means the number of shares of Common Stock equal to the quotient obtained by dividing
(a) the Stated Value of each Preferred Share by (b) the Conversion Price as in effect on the relevant Conversion Date. 

“Parity Securities Distribution” means the declaration or payment on account of, or setting apart for payment money for a
sinking or other similar fund for, the purchase, redemption or other retirement of (other than by conversion into or exchange for Junior Liquidation Shares), any Parity Liquidation Shares, or any distribution in respect thereof, either directly or
indirectly, and whether in cash, obligations, Common Stock, securities or other property, or the purchase or redemption by any entity directly or indirectly controlled by the Corporation of any of the Parity Liquidation Shares. 

“Pegasus” means, collectively, Pegasus Capital Advisors, L.P., Pegasus Partners IV, L.P. and each of their Affiliates. 

“Permitted Equity Issuance” means the issuance of any Capital Stock of the Corporation: (1) in an Exempt Equity Issuance
pursuant to clause (i)(A), (i)(C), (ii)(B) (provided, that the shares reserved to be issued under such plan(s) do not exceed in the aggregate three percent (3%) of the issued and outstanding shares of Common Stock at
the time of adoption of such plan(s)), (iii), (iv), (vii), (viii), (ix), (x) or (xi) of the definition of “Exempt Equity Issuance”, (2) in an Exempt Equity Issuance pursuant
to clause (i)(B) of the definition of “Exempt Equity Issuance” to the extent relating to an Exempt Equity Issuance as described in the foregoing clause (1), and (3) in an Exempt Equity Issuance as described in clause
(xii) of the definition of “Exempt Equity Issuance” to the extent relating to an Exempt Equity Issuance as described in the foregoing clauses (1) or (2); provided, that “Permitted Equity Issuance” shall in
no event include any issuance of Senior Liquidation Shares, or any issuance of Parity Liquidation Shares. 
 “Permitted
Transfer” means any Transfer by: (1) a Holder of all or any portion of the Preferred Shares (a) to Pegasus; (b) to Riverwood; (c) to the Corporation or any of the Corporation’s Subsidiaries, (d) pursuant to the
exercise of the Co-Sale Rights; (e) in any transaction in which all or substantially all of the Equity Securities of the Corporation are Transferred pursuant to any reorganization, merger, consolidation or sale of the Corporation; (f) in a
Qualified Public Offering; (g) pursuant to a tender or exchange offer pursuant to the Securities Act or the Exchange Act; or (h) with the prior written consent of the Corporation, such consent not to be unreasonably withheld, conditioned
or delayed; (2) by a Primary Investor pursuant to a pro rata in-kind distribution or dividend to the equityholders of such Primary Investor (and any intermediary transfers amongst Affiliates of such Primary Investor as part of giving effect
thereto) who were equityholders of such Primary Investor on the Investment Date (provided, that such distribution or dividend shall not result in a Transfer to any such equityholder of more than 15% of

  
 20 

 
the Equity Securities held by such Primary Investor as of the Investment Date; provided, further, that such distribution or dividend shall not be structured so as to avoid the
occurrence or triggering of a Change of Control); (3) Zouk to any Affiliate or direct or indirect equityholder of Zouk; or (4) Portman to any Affiliate or direct or indirect equityholder of Portman. 

“Portman” shall mean Portman Limited, a Cayman Islands exempted company and its Affiliates. 

“Primary Investor” means (i) so long as Pegasus and Riverwood both continue to beneficially own all of the Preferred
Shares acquired thereby, both Pegasus and Riverwood, (ii) in the event either Pegasus or Riverwood, but not both, continues to beneficially own all of the Preferred Shares acquired thereby, whichever one of Pegasus and Riverwood that continues
to beneficially own all such Preferred Shares, (iii) in the event that both Pegasus and Riverwood beneficially own less than all of the Preferred Shares acquired thereby, (x) Pegasus to the extent that Pegasus continues to beneficially own
at least 1,750 Preferred Shares (as adjusted for any Reclassification of the Preferred Shares) and (y) Riverwood to the extent that Riverwood continues to beneficially own at least 1,750 Preferred Shares (as adjusted for any Reclassification of
the Preferred Shares). To the extent that both (A) Pegasus beneficially owns fewer than 1,750 Preferred Shares (as adjusted for any Reclassification of the Preferred Shares) and (B) Riverwood beneficially owns fewer than 1,750 Preferred
Shares (as adjusted for any Reclassification of the Preferred Shares), there shall be no Primary Investor. For purposes of the foregoing definition and the determination of the number of Preferred Shares beneficially owned by Pegasus or Riverwood,
beneficial ownership of shares of Common Stock, as adjusted for any Reclassification thereof, issued upon conversion of Preferred Shares on an as-converted basis shall be treated as beneficial ownership of Preferred Shares. 

“Primary Investor Rights” means those rights provided to the Primary Investor(s) pursuant to Section 11(b) and
Section 12 hereof. 
 “Pro Rata Share” means, at all times on or after the Investment Date, with respect any
Holder, the quotient (in percentage terms) obtained by dividing (i) the number of shares of Common Stock and shares of Common Stock Equivalents owned by such Holder and its Affiliates at the time of determination and (ii) the number of
shares of Common Stock and Common Stock Equivalents issued and outstanding at the time of such determination. For purposes of determining each Holder’s Pro Rata Share, the number of Common Stock Equivalents shall include the number of shares of
Common Stock that would be issuable upon the conversion of the applicable Preferred Shares but in no event shall the shares of Common Stock or shares of Common Stock Equivalents owned by a person or entity Affiliated with more than one Holder be
counted more than once for purposes of determining the respective Pro Rata Share of such Affiliated Holders. 
 “Qualified
Follow-On” shall mean a Follow-On Offering led by any of the Non-Pegasus Purchasers. 
 “Qualified Public
Offering” means a firmly committed underwritten public offering of the Common Stock on The NASDAQ Stock Market or the New York Stock Exchange pursuant to an effective registration statement filed under the Securities Act, where (a) the
gross proceeds received by the Corporation and any selling stockholders in the offering are no less than $100 million and (b) the market capitalization of the Corporation immediately after consummation of the offering is no less than $500
million. 
 “Responsible Officer” means either the Chief Executive Officer or Chief Financial Officer of the Corporation.

  
 21 

 “Returned Value” means with respect to each Preferred Share, if the Triggering
Event occurs (i) on or prior May 26, 2014, an amount equal to the product obtained by multiplying (A) the Stated Value thereof by (B) 1.75 and (ii) subsequent to May 26, 2014, an amount equal to the product obtained by
multiplying (A) the Stated Value thereof by (B) 2.0. 
 “Riverwood” means RW LSG Holdings LLC and its Affiliates.

 “Securities Act” means the Securities Act of 1933, as amended. 

“Series H Certificate of Designation” means the Certificate of Designation of Series H Preferred Stock of the Corporation, as
filed with the Secretary of State of the State of Delaware and as the same may be amended, restated, supplemented or otherwise modified from time to time. 

“Series H Holder” means any holder of the Corporation’s outstanding shares of Series H Preferred Stock. 

“Series H Redemption” means the Redemption (as defined in the Series H Certificate of Designation) of any shares of Series H
Preferred Stock. 
 “Series I Certificate of Designation” means the Certificate of Designation of governing terms of the
Series I Preferred Stock. 
 “Series I Holder” means any holder of the Corporation’s outstanding shares of Series I
Preferred Stock. 
 “Series I Redemption” means the Redemption (as defined in the Series I Certificate of Designation) of
any shares of Series I Preferred Stock. 
 “Series J Certificate of Designation” means this Certificate of Designation of
Preferred Stock to be designated Series J Convertible Preferred Stock. 
 “Significant Holder” means, as of the applicable
date of determination, (i) each Primary Investor so long as such Primary Investor remains a Primary Investor (as defined herein); (ii) any Holder that beneficially owns at least 20,000 Preferred Shares (as adjusted for any Reclassification
of the Preferred Shares); (iii) any Series H Holder that beneficially owns at least 20,000 shares of the Corporation’s Series H Convertible Preferred Stock (as adjusted for any reclassification of such shares of Series H Convertible
Preferred Stock); and (iv) any Series I Holder that beneficially owns at least 20,000 shares of the Corporation’s Series I Convertible Preferred Stock (as adjusted for any reclassification of such shares of Series I Convertible Preferred
Stock). 
 “Stated Value” means, with respect to a Preferred Share, $1,000 (as adjusted for any Reclassification of the
Preferred Shares). 
 “Subscription Agreement” means that certain Preferred Stock Subscription Agreement entered into on
the Investment Date by and between the Corporation, Pegasus and RW LSG Holdings LLC, as may be amended or modified from time to time in accordance with its terms. 

“Subsidiary” means any corporation, partnership, trust, association, limited liability company or other entity owned or
controlled by the Corporation, or in which the Corporation, directly or indirectly, owns a majority of the Capital Stock or similar interest that would be disclosable pursuant to Regulation S-K, Item 601(b)(21). 

  
 22 

 “Transfer” means, as a noun, any voluntary or involuntary transfer, sale, pledge
or hypothecation or other disposition, whether directly or indirectly and whether through one or a series of transactions, and, as a verb, voluntarily or involuntarily to transfer, sell, pledge or hypothecation or otherwise dispose of, whether
directly or indirectly and whether through one or a series of transactions. 
 “Triggering Event” means any Change of
Control, Liquidation Event or the delivery of a Redemption Notice pursuant to the exercise of the Mandatory Redemption Right. 

“Zouk” means Cleantech Europe II (A) LP, Cleantech Europe II (B) LP and their Affiliates. 

[signature page follows] 

  
 23 

 IN WITNESS WHEREOF, the Corporation has caused this Certificate to be duly executed on its behalf
by its undersigned Chief Financial Officer as of August 14, 2014. 
  

					
	LIGHTING SCIENCE GROUP CORPORATION
		
	By:	 	 /s/ Dennis McGill

		 	Name:	 	Dennis McGill
		 	Title:	 	Chief Financial Officer

 Signature Page to Amended and Restated Series J Certificate of Designation

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}]]