Document:

Securities Purchase Agreement

 Exhibit 4.1 
  
 
 
  
 SECURITIES PURCHASE AGREEMENT 
  
 BY AND AMONG 
  
 EQUINIX, INC. 
  
 THE GUARANTORS PARTY HERETO FROM TIME TO TIME 
  
 AND 
  
 THE
PURCHASERS NAMED HEREIN 
  
 Dated as of 
  
 October 2, 2002 
  
  
 
 

 TABLE OF CONTENTS 
  
 
	  	  	  	  	 Page
 

	 1.
 	  	 Definitions; Construction
 
	 
	  	  	 1.1    Definitions
 	  	 1
 
	  	  	 1.2    Accounting Principles
 	  	 7
 
	  	  	 1.3    Interpretation
 	  	 7
 
	 
	 2.
 	  	 The Purchase and Sale of the Securities
 
	 
	  	  	 2.1    Authorization of the Financing
 	  	 8
 
	  	  	 2.2    Obligations to Purchase and Sell Securities
 	  	 8
 
	  	  	 2.3    Determination of Warrant Shares
 	  	 9
 
	  	  	 2.4    Cash Trigger Warrants
 	  	 10
 
	 
	 3.
 	  	 Representations and Warranties of the Issuers
 
	 
	  	  	 3.1    Authority Relative to This Agreement
 	  	 10
 
	  	  	 3.2    No Conflict; Required Filings and Consents
 	  	 11
 
	  	  	 3.3    Collateral
 	  	 11
 
	  	  	 3.4    Governmental Regulation
 	  	 12
 
	  	  	 3.5    Margin Stock
 	  	 12
 
	  	  	 3.6    Private Placement; No Brokers
 	  	 12
 
	  	  	 3.7    Incorporation of Representations and Warranties by Reference
 	  	 12
 
	  	  	 3.8    No Misstatements
 	  	 12
 
	 
	 4.
 	  	 Representations and Warranties of the Purchasers
 
	 
	  	  	 4.1    Investment Intent
 	  	 13
 
	  	  	 4.2    ERISA Matters
 	  	 13
 
	  	  	 4.3    Authority Relative to This Agreement
 	  	 13
 
	  	  	 4.4    No Conflict; Required Filings and Consents
 	  	 13
 
	  	  	 4.5    Access to Funds
 	  	 14
 
	  	  	 4.6    Legend
 	  	 14
 
	  	  	 4.7    Private Placement; No Brokers
 	  	 14
 
	 
	 5.
 	  	 Affirmative Covenants
 
	 
	  	  	 5.1    Affirmative Covenants of Credit Agreement
 	  	 14
 
	  	  	 5.2    Certificate Upon Event of Default
 	  	 14
 
	  	  	 5.3    Notice of Adverse Proceeding
 	  	 14
 
	  	  	 5.4    Further Assurances
 	  	 15
 
	  	  	 5.5    Tax Treatment
 	  	 15
 
	  	  	 5.6    Collateral Obligations
 	  	 15
 
	  	  	 5.7    Subsidiaries
 	  	 15
 
	  	  	 5.8    Singapore Holding Company
 	  	 15
 
	 
	 6.
 	  	 Negative Covenants
 
	 
	  	  	 6.1    Negative Covenants of Credit Agreement
 	  	 16
 
	  	  	 6.2    Usury Laws
 	  	 16
 
	  	  	 6.3    Tax Treatment
 	  	 16
 
	 
	 7.
 	  	 Conditions to Closing
 
	 
	  	  	 7.1    Purchasers’ Closing Conditions
 	  	 17
 
	  	  	 7.2    Parent Closing Conditions
 	  	 19
 

 

 
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	  	  	  	  	 Page
 

	 
	   8.
 	  	 Events of Default
 	  	 19
 
	 
	   9.
 	  	 Terms of the Notes
 	  	 22
 
	 
	  	  	 9.1        Registration; Exchange; Substitution of Notes

	  	 22
 
	  	  	 9.2        Cash Payments on Notes
 	  	 23
 
	  	  	 9.3        Acquisition of Notes
 	  	 23
 
	  	  	 9.4        Conversion at Option of Holder
 	  	 23
 
	  	  	 9.5        Conversion at the Option of Parent
 	  	 24
 
	  	  	 9.6        Conversion Price
 	  	 25
 
	  	  	 9.7        Change in Control
 	  	 29
 
	  	  	 9.8        Payment of Interest in Kind
 	  	 31
 
	  	  	 9.9        Transfer Restrictions
 	  	 31
 
	  	  	 9.10      Security; Intercreditor Agreement
 	  	 32
 
	 
	 10.
 	  	 Termination
 	  	 32
 
	 
	  	  	 10.1      Termination
 	  	 32
 
	  	  	 10.2      Effect of Termination
 	  	 32
 
	 
	 11.
 	  	 Miscellaneous
 	  	 33
 
	 
	  	  	 11.1      Entire Agreement
 	  	 33
 
	  	  	 11.2      Expenses and Indemnities
 	  	 33
 
	  	  	 11.3      Amendment and Waiver
 	  	 34
 
	  	  	 11.4      Survival of Representations and Warranties
 	  	 35
 
	  	  	 11.5      Disclosure to Other Persons
 	  	 35
 
	  	  	 11.6      Satisfaction of Closing Conditions
 	  	 36
 
	  	  	 11.7      Notices
 	  	 36
 
	  	  	 11.8      Descriptive Headings
 	  	 37
 
	  	  	 11.9      Satisfaction Requirement
 	  	 37
 
	  	  	 11.10    Severability
 	  	 37
 
	  	  	 11.11    Governing Law
 	  	 37
 
	  	  	 11.12    Arbitration
 	  	 37
 
	  	  	 11.13    Waiver of Jury Trial
 	  	 38
 
	  	  	 11.14    No Assignment
 	  	 38
 
	  	  	 11.15    Counterparts
 	  	 38
 
	  	  	 11.16    Maximum Interest Rate
 	  	 39
 

 

 
 ii 

  
 LIST OF SCHEDULES AND EXHIBITS 
  
 
	 
	 Schedule 1
 	  	 A-1 Purchasers
 
	 
	 Schedule 2
 	  	 A-2 Purchasers
 
	 
	 Schedule 2.3(a)
 	  	 Fully Diluted Capitalization as of August 31, 2002
 
	 
	 Exhibit 2.1(a)
 	  	 Form of Notes
 
	 
	 Exhibit 2.1(b)(i)
 	  	 Form of Series A Warrant
 
	 
	 Exhibit 2.1(b)(ii)
 	  	 Form of Common Warrants
 
	 
	 Exhibit 2.1(b)(iii)
 	  	 Form of Change in Control Warrants
 
	 
	 Exhibit 2.1(c)
 	  	 Form of Guaranty
 
	 
	 Exhibit 2.4
 	  	 Form of Cash Trigger Warrants
 
	 
	 Exhibit 7.1(a)
 	  	 Form of Opinion of Counsel
 
	 
	 Exhibit 7.1(j)(iii)
 	  	 Form of A-1 Security Documents
 
	 
	 Exhibit 7.1(j)(iv)
 	  	 Form of Registration Rights Agreement
 

 
 

 iii 

 SECURITIES PURCHASE AGREEMENT 
  
 SECURITIES PURCHASE AGREEMENT, dated as of October 2, 2002 (this “Agreement”), by and among Equinix, Inc., a Delaware corporation (the “Parent”), the subsidiaries of Parent that
from time to time become Guarantors of Parent’s obligations under this Agreement, and the Purchasers named in Schedule 1 and Schedule 2 to this Agreement (severally and not jointly, the “Purchasers”). 
  
 WHEREAS, Parent desires to issue and sell (a) to the A-1 Purchaser up to $40 million aggregate principal amount of Parent’s 14%
Series A-1 Convertible Secured Notes due 2007, warrants (the “Preferred Warrants”) to purchase shares of preferred stock of Parent, and warrants (the “Change in Control Warrants”) to purchase shares of Parent’s common stock,
par value $0.001 per share (the “Common Stock”), and (b) to the A-2 Purchasers, if any, up to $10 million aggregate principal amount of Parent’s 10% Series A-2 Convertible Secured Notes due 2007 and warrants (the “Common
Warrants”) to purchase shares of Common Stock and Change in Control Warrants, in each case, on the terms and subject to the conditions in this Agreement; 
  
 WHEREAS, the A-1 Purchaser desires to purchase the A-1 Notes, the Preferred Warrants and Change in Control Warrants and the A-2 Purchasers, if any, desire to severally, and not jointly, purchase A-2
Notes, the Common Warrants and Change in Control Warrants, in each case, on the terms and subject to the conditions in this Agreement; 
  
 WHEREAS, the Guarantors shall receive a direct and substantial benefit, which benefit is hereby acknowledged, from the use of the proceeds of the sale of the Notes and Warrants to, among other things, reduce the outstanding
obligations under the Amended and Restated Credit and Guaranty Agreement, dated as of September 30, 2001 (as amended, modified, renewed, refinanced or extended from time to time, the “Credit Agreement”), by and among Equinix Operating Co.,
Inc., a Delaware corporation, Parent, Equinix Europe, Inc., a Delaware corporation, Equinix-DC, Inc., a Delaware corporation, the Lenders who are a party thereto from time to time, Goldman Sachs Credit Partners L.P., as Joint Lead Arranger, Joint
Book Runner and Syndication Agent, Salomon Smith Barney Inc., Citicorp USA, Inc., as Administrative Agent, and CIT Lending Services Corporation, as Collateral Agent; and 
  
 WHEREAS, Parent and the Purchasers intend that (a) the Notes be secured by second-priority security interests in the collateral securing Parent’s obligations under the
Credit Agreement and (b) until the later of the fourth anniversary of the Closing Date (as defined) or the date the obligations under the Credit Agreement are repaid in full, the A-1 Notes be secured by a first-priority security interest in the A-1
Assets. 
  
 NOW THEREFORE, in consideration of the foregoing and the mutual covenants in this Agreement, the Parties,
intending to be legally bound, agree as follows: 
  
 1.    Definitions; Construction.

  
 1.1    
Definitions.    Unless otherwise defined in this Agreement, capitalized terms used in this Agreement or the Notes without definition have the respective meanings given to them in the Credit Agreement.
For the purpose of this Agreement, the following terms shall have the following specified meanings: 
  
 “A-1 Assets” means the assets in which a security interest is granted by Parent pursuant to the A-1 Security Documents. 
  
 “A-1 Notes” means Parent’s 14% Series A-1 Convertible Secured Notes due 2007 and any corresponding PIK Notes. 
  
 “A-1 Principal Amount” means $40,000,000 less the A-2 Principal Amount. 
  
 “A-1 Purchaser” means the Purchaser of the A-1 Notes set forth on Schedule 1. 
  

 
 1 

 “A-1 Security Documents” means the Debenture, made on the Closing Date, between i-STT
Pte Ltd. and STT Communications, the Share Charge, made on Closing Date, between Interco Singapore and STT Communications, the Assignment of Tenancy Agreements, made on the Closing Date, between i-STT Pte Ltd. and STT Communications and the Option
Agreement, made on the Closing Date, between Interco Singapore and STT Communications, each substantially in the form as Exhibit 7.1(j)(iii) and substantially equivalent documents creating a security interest in the shares and assets (including
leasehold or other real property interests) of the subsidiaries of i-STT Pte Ltd. located in Thailand and Shanghai, China and the subsidiaries of Pihana located in Singapore. 
  
 “A-2 Notes” means Parent’s 10% Series A-2 Convertible Secured Notes due 2007 and any corresponding PIK Notes. 
  
 “A-2 Principal Amount” means the aggregate principal amount of the A-2 Notes to be issued under this
Agreement, if any, as set forth on Schedule 2, which will not exceed $10 million. 
  
 “A-2
Purchasers” means Purchasers of the A-2 Notes including LoneTree Capital Management, LLC or its respective affiliates to the extent they become Purchasers pursuant to Section 2.2(a) and such other Purchasers, if any, as are reasonably
acceptable to each of STT Communications and Parent. 
  
 “Administrative Agent”
means the Person named as the Administrative Agent in the Credit Agreement or any successor thereto. 
  
 “Asian Subsidiaries” means i-STT Pte Ltd., i-STT Nation Ltd., a company organized under the laws of the Republic of Thailand, and i-STT (Shanghai) Co., Ltd., a company organized under the laws of the People’s
Republic of China. 
  
 “Business Day” means a day that is not a Saturday, a Sunday
or a day on which banking institutions are required to be closed in the City of New York, State of New York. 
  
 “Cash Trigger Warrants” means warrants to purchase shares of Common Stock for an aggregate cash amount of up to $30,000,000, exercisable upon the occurrence of certain events of default under the Credit Agreement,
and denominated as the Series A Cash Trigger Warrants or Series B Cash Trigger Warrants depending on their exercise price, each to be substantially in the form of Exhibit 2.4. 
  
 “Certificate of Designation” means the certificate of designation of the Series A Preferred Stock and the Series A-1 Preferred Stock
attached to the Combination Agreement as Exhibit B, as filed with the Secretary of State of the State of Delaware on the Closing Date. 
  
 “Change in Control” means (a) the direct or indirect sale or transfer of all or substantially all of Parent’s assets; (b) any business combination which results in the holders of
Parent’s Capital Stock, calculated on an as-converted basis, prior to such business combination beneficially owning less than 50% of the voting securities of the resulting parent entity in such business combination; or (c) a change in the
composition of the board of directors of Parent, as a result of which fewer than 50% of the incumbent directors are directors who either (i) had been members of Parent’s board of directors on the corresponding calendar day of the second
preceding year (the “Original Directors”); or (ii) were nominated for election or appointed to the board of directors of Parent by a majority of the aggregate of the Original Directors and other directors nominated or appointed in a manner
consistent with this clause (ii). Notwithstanding the foregoing, the acquisition by STT Communications or its affiliates and associates of beneficial ownership up to 66 2/3% of the voting securities of Parent shall not constitute a Change in
Control. 
  
 “Change in Control Payment Date” is defined in Section 9.7(a).

  
 “Change in Control Price” means, with respect to each Note, 100% of the
principal amount of such Note. 
  
 “Change in Control Warrants” is defined in the
recitals to this Agreement. 
  
 “Change in Control Warrant Shares” is defined in
Section 9.7(a). 

 
 2 

  
 “Closing” is defined in Section 2.2(b).

  
 “Closing Date” means the date and time at which the Closing actually occurs.

  
 “Collateral” means, collectively, all of the real, personal and mixed property
(including capital stock) in which Liens are purported to be granted pursuant to the Collateral Documents as security for the Obligations and the Financing Document Obligations. 
  
 “Collateral Agent” means the Person named as Collateral Agent in the Credit Agreement and any successor thereto. 
  
 “Collateral Documents” has the meaning set forth in the Credit Agreement but also includes the
Intercreditor Agreement and the A-1 Security Documents. 
  
 “Combination” means the
transactions (other than the transactions contemplated by this Agreement) contemplated by the Combination Agreement, including (a) the acquisition of all of the outstanding capital stock of i-STT and (b) the merger of a wholly-owned Subsidiary of
Parent with and into Pihana. 
  
 “Combination Agreement” means the Combination
Agreement, dated the date of this Agreement, among Parent, Eagle Panther Acquisition Corp., a Delaware corporation and wholly-owned indirect subsidiary of Parent, Eagle Jaguar Acquisition Corp., a Delaware corporation and a wholly owned subsidiary
of Parent, i-STT, STT Communications, Pihana and Jane Dietze as the representative of the stockholders of Pihana. 
  
 “Combination Documents” means the Combination Agreement and all other documents to be delivered by the parties to such agreement in connection with the transactions (other than the transactions contemplated by this
Agreement) contemplated thereby. 
  
 “Common Stock” is defined in the recitals to
this Agreement. 
  
 “Common Warrant Shares” means the number of shares of Common
Stock issuable, as of any date of determination, upon exercise of a Common Warrant 
  
 “Common Warrants” is defined in the recitals to this Agreement. 
  
 “Conversion Date” means immediately prior to the close of business on the day that a Holder delivers Notes and an instrument instructing Parent to convert such Notes to shares of Series A Preferred Stock or Common
Stock, as the case may be, pursuant to this Agreement; provided that if such day is not a Business Day, then the Conversion Date shall be deemed to be immediately prior to the close of business on the next preceding Business Day.

  
 “Conversion Preferred Stock” shall mean shares of Series A Preferred Stock;
provided that “Conversion Preferred Stock” shall mean shares of Series A-1 Preferred Stock if at the time of conversion or exercise of any Note or Warrant by an A-1 Purchaser, the receipt of Series A Preferred Stock by such purchaser
would cause (a) the voting power of the issued and outstanding shares held by such purchaser or its affiliates to exceed 40% of the then outstanding voting power of all securities of Parent then entitled to vote on the election of members of
Parent’s board of directors or (b) (x) the value of all outstanding voting securities held by such purchaser following such conversion or exercise would exceed $50,000,000 (as determined by reference to the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 (the “HSR Act”)), or any other applicable threshold that would require compliance with the HSR Act and (y) such purchaser has not complied with the HSR Act prior to such conversion or exercise; provided,
further, that clause (a) shall terminate upon the earlier of (A) the second anniversary of the Closing Date or (B) a Voting Stock Trigger Event (as defined in the Certificate of Designation). 
  

“Conversion Price” means $0.3366, as adjusted pursuant to Section 9.6. 
  
 “Credit Agreement” is defined in the recitals to this Agreement. 
  
 “Current Market Value” per share of Common Stock or any other security at any date means (a) if the security is not registered under the
Exchange Act, (i) the value of the security, determined in good faith by
 

 
 3 

 
the board of directors of Parent and certified in a board resolution, based on the most recently completed arm’s-length transaction between Parent and a Person other than an affiliate of
Parent and the closing of which occurs on such date or shall have occurred within the six-month period preceding such date, or (ii) if no transaction shall have occurred on such date or within such six-month period, the fair market value of the
security as determined by an Independent Financial Expert (provided that, in the case of the calculation of Current Market Value for determining the cash value of fractional shares, any such determination made by the board of directors of
Parent within six months that is, in the good faith judgment of the board of directors of Parent, a reasonable determination of value, may be utilized) or (b) (i) if the security is registered under the Exchange Act, the average of the daily closing
sales prices of the securities for the twenty consecutive Trading Days ending on and including such date, or (ii) if the securities have been registered under the Exchange Act for less than twenty consecutive Trading Days immediately preceding such
date, then the average of the daily closing sales prices for all of the Trading Days before such date for which closing sales prices are available. The closing sales price for each such trading day shall be: (a) in the case of a security listed or
admitted to trading on any United States national securities exchange or quotation system, the closing sales price, regular way, on such day, or if no sale takes place on such day, the average of the closing bid and asked prices on such day, (b) in
the case of a security not then listed or admitted to trading on any national securities exchange or quotation system, the last reported sale price on such day, or if no sale takes place on such day, the average of the closing bid and asked prices
on such day, as reported by a reputable quotation source designated by Parent, (c) in the case of a security not then listed or admitted to trading on any national securities exchange or quotation system and as to which no such reported sale price
or bid and asked prices are available, the average of the reported high bid and low asked prices on such day, as reported by a reputable quotation service, or a newspaper of general circulation in The City, County and State of New York, customarily
published on each Business Day, designated by Parent, or, if there shall be no bid and asked prices on such day, the average of the high bid and low asked prices, as so reported, on the most recent day (not more than thirty days prior to the date in
question) for which prices have been so reported and (d) if there are not bid and asked prices reported during the thirty trading days prior to the date in question, the Current Market Value shall be determined as if the shares of Common Stock (or
other securities) were not registered under the Exchange Act. 
  
 “Default” means a
condition or event that, after notice or lapse of time or both, would constitute an Event of Default. 
  
 “Determination Date” means the tenth Business Day prior to the anticipated date on which the Closing is expected to occur. 
  
 “Dollars,” “dollars” or the symbol, “$,” means United States dollars. 
  
 “Event of Default” is defined in Section 8(a). 
  
 “Exchange Act” means the Securities Exchange Act of 1934. 
  
 “Excluded Conversion Adjustment” is defined in Section 9.6. 
  
 “Existing Guarantor” means any Person that is a Guarantor as of the date of this Agreement or the Closing Date, as applicable. For the
avoidance of doubt, each Person that is acquired pursuant to the Combination Documents shall be deemed to be an Existing Guarantor as of the Closing Date. 
  
 “Final Schedule” is defined in Section 2.3(c). 
  
 “Financing Documents” means this Agreement, each Note, the A-1 Security Documents, the Intercreditor Agreement, each Guaranty, each Warrant
and the Registration Rights Agreement. 
  
 “Financing Document
Obligations” means all obligations of every nature of Parent and each Guarantor from time to time owed to the Purchasers or the Holders or any of them or their respective affiliates, under any Financing Document, whether for
principal, interest (including interest which, but for the filing of a petition in bankruptcy with respect to Parent or such Guarantor, would have accrued on any Financing Document Obligations, whether or not a claim is allowed against such Credit
Party for such interest in the related bankruptcy proceeding), fees, expenses, indemnification or otherwise. 

 
 4 

  
 “First Anniversary” means the
first anniversary of the Closing Date. 
  
 “Forced Conversion Date”
means immediately prior to the close of business on a Trading Day that is two Trading Days after Parent delivers notice to the Holders that, as of the close of trading on the day preceding such notice, a Trading Period had occurred. 

 
 “Fundamental Transaction” a single transaction or a series of related
transactions through which Parent merges, consolidates or amalgamates with or into any other Person or sells, assigns, transfers, licenses, leases, conveys or otherwise disposes of all or substantially all of its assets to another Person or group of
affiliated Persons or is a party to a merger or binding share exchange which reclassifies or changes its outstanding Common Stock, other than the transactions contemplated by the Transaction Documents. 
  
 “GAAP” means accounting principals generally accepted in the United States, as in effect
from time to time. 
  
 “Governmental Entity” means any domestic or
foreign governmental, regulatory or administrative authority, agency or commission, any court, tribunal or arbitral body, or any quasi-governmental or private body exercising any regulatory, taxing, importing or other governmental authority.

  
 “Guaranty” means a Guaranty of the Notes substantially in the form
of Exhibit 2.1(c), executed by each Guarantor. 
  
 “Guarantor” means
each Existing Guarantor and, from and after the date a Person becomes a Restricted Subsidiary, such new Restricted Subsidiary. 
  
 “Holder” means each Person in whose name Notes are registered. 
  
 “i-STT Pte. Ltd.” means i-STT Pte. Ltd., a company organized under the laws of the Republic of Singapore. 
  
 “i-STT Disclosure Letter” means the disclosure letter of Jaguar referred to in the Combination Agreement. 

 
 “Independent Financial Expert” means an investment banking firm of national or
regional standing in the United States (a) which does not, and whose directors, officers and employees or affiliates do not have a direct or indirect material financial interest for its proprietary account in Parent or any of its affiliates and (b)
which, in the judgment of the board of directors of Parent, is otherwise independent with respect to Parent and its affiliates and qualified to perform the task for which it is to be engaged. 
  

“Intercreditor Agreement” means the Intercreditor Agreement, to be dated as of the Closing Date, by and among the
Collateral Agent and the Holders, in a form reasonably acceptable to the Purchasers and their special counsel. 
  
 “Internal Revenue Code” means the Internal Revenue Code of 1986. 
  
 “Joint Lead Arranger” means the Person named as Joint Lead Arranger under the Credit Agreement or any successor thereto. 
  
 “Law” means any foreign or domestic (Federal, state or local) law, statute, ordinance, franchise, permit, concession,
license, writ, rule, regulation, order, injunction, judgment or decree. 
  
 “Lender” is defined in the Credit Agreement. 
  
 “Material Adverse Effect” means (a) any event, change, circumstance or effect that is, or would be reasonably likely to result, either individually or in the aggregate, in a materially adverse effect on
the business, operations, condition (financial or otherwise), assets (tangible or intangible), liabilities or results of operations of Parent and its Subsidiaries, taken as a whole, except for any such events, changes, circumstances or effects
primarily resulting from or arising in connection with (i) any changes in general economic or business conditions of the markets in which Parent and its Subsidiaries operate that do not disproportionately impact Parent and its Subsidiaries, (ii) any
changes or events affecting the industry in
 

 
 5 

	 	
which Parent operates that do not disproportionately impact Parent or its Subsidiaries or (iii) the transactions contemplated by this Agreement, or (b) a material adverse change in, or material
adverse effect on (i) the ability of Parent or any Guarantor to fully and timely perform the Financing Document Obligations; (ii) the legality, validity, binding effect or enforceability against Parent or any Guarantor of a Credit Document or
Financing Document to which it is a party; (iii) the rights, remedies and benefits available to, or conferred upon, any Holder or Purchaser under any Financing Document; or (iv) the status, effectiveness or priority of the Liens held by the
Collateral Agent for the benefit of the Secured Parties and the Purchasers. 
 

  
 “Maturity Date” means November 1, 2007. 
  
 “Note Shares” means the shares of Common Stock issuable upon (a) conversion of the A-2 Notes and (b) conversion of the shares of Series A Preferred Stock issued upon conversion of the A-1 Notes.

  
 “Notes” means the A-1 Notes and the A-2 Notes and any notes that
may be issued under this Agreement in substitution or exchange for any outstanding Notes. 
  
 “NMS” means the Nasdaq National Stock Market or any other national stock exchange or quotation system that is the primary market for the Common Stock. 
  
 “Objection Schedule” is defined in Section 2.3(b). 
  
 “Offered Securities” means the Notes, the Guarantees, the Warrants, the Note Shares and
Warrant Shares. 
  
 “Optional Conversion” is defined in Section
9.5(a). 
  
 “Parent Disclosure Letter” means the disclosure letter of
Parent referred to in the Combination Agreement 
  
 “Parent SEC
Reports” means all forms, reports and documents required to be filed by Parent with the SEC since January 1, 2001 through the date of this Agreement. 
  
 “Party” means a party to this Agreement. 
  
 “Pihana” means Pihana Pacific, Inc., a Delaware corporation. 
  
 “Pihana Disclosure Letter” means the disclosure letter of Pihana referred to in the Combination Agreement. 

 
 “Preferred Stock” means the Series A Preferred Stock and the Series A-1
Preferred Stock. 
  
 “Preferred Warrant” is defined in the recitals to
this Agreement. 
  
 “Preferred Warrant Shares” means the number of
shares of Preferred Stock issuable, on any date of determination, upon exercise of a Preferred Warrant. 
  
 “Preliminary Schedule” is defined in Section 2.3(a) 
  
 “PIK Notes” is defined in Section 9.8. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of the Closing Date, by and among Parent and the Initial Purchasers named therein in the form of Exhibit 7.1(j)(iv).

  
 “Requisite Holders” means, at any time of determination, (a) the
Holders of more than fifty percent in aggregate principal amount of the then outstanding A-1 Notes and A-2 Notes, voting together as single class, or (b) the holders of more than fifty percent in aggregate principal amount of the commitments under
Section 2.2 to purchase A-1 Notes and A-2 Notes, voting together as a single class. 
  
 “Second Priority Lien” means, with respect to any Lien purported to be created in any Collateral pursuant to any Collateral Document, that such Lien is the only Lien to which such Collateral is subject,
other than First Priority Liens and Permitted Liens. 

 
 6 

  
 “SEC” means the United States
Securities and Exchange Commission. 
  
 “Second Anniversary” means the
second anniversary of the Closing Date. 
  
 “Secured Parties” is
defined in the Intercreditor Agreement. 
  
 “Securities Act” means the
Securities Act of 1933. 
  
 “Series A Preferred Stock” means the
Series A Preferred Stock, par value $0.001 per share, of Parent. 
  
 “Series A-1
Preferred Stock” means the Series A-1 Preferred Stock, par value $0.001 per share, of Parent. 
  
 “STT Communications” means STT Communications Ltd., a company organized under the laws of the Republic of Singapore. 
  
 “Subsidiaries” has the meaning set forth in the Credit Agreement. For the avoidance of doubt, each Person that is acquired
pursuant to the Combination Documents shall be deemed to be a Subsidiary of Parent as of the Closing Date. 
  
 “Taxes” is defined in Section 11.2(c). 
  
 “Third Anniversary” means the third anniversary of the Closing Date. 
  
 “Trading Day” means any day upon which the NMS is open and providing quotations of the Common Stock. 
  
 “Trading Period” means any consecutive thirty Trading Day period in which (a) on each day of such period (a) the closing
price of the Common Stock on the NMS exceeds $1.1781 (subject to adjustments as provided in Section 9.6) and (b) the average daily trading volume of the Common Stock on the NMS exceeds 550,000 shares (which number of shares shall be deemed
automatically adjusted to give effect to any stock splits, dividends, reclassifications, combinations or recapitalizations occurring after the date of this Agreement). 
  
 “Transaction Documents” means the Combination Documents and the Financing Documents. 
  
 “Transfer” means any sale, transfer, pledge, hypothecation, contribution, distribution,
gift or other disposition of a security, or entry into put, call, straddle, forward sale, hedging or other derivative transaction with respect to a security. 
  
 “Warrant Shares” means shares of Common Stock or Preferred Stock, as the case may be, issuable upon (a) exercise of the
Common Warrants, (b) conversion of shares of Conversion Preferred Stock issued upon exercise of the Preferred Warrant, (c) exercise of the Change in Control Warrants and (d) exercise of the Cash Trigger Warrant. 
  
 “Warrants” means the Cash Trigger Warrants, the Common Warrants, the Preferred Warrants and the Change in
Control Warrants. 
  
 1.2    
Accounting Principles.    Except as otherwise expressly provided in this Agreement, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP.
Calculations in connection with the definitions, covenants and other provisions of this Agreement shall utilize accounting principles and policies in conformity with those used to prepare the Financial Statements. 
  
 1.3    
Interpretation. 
  
 (a)    When a reference is made in
this Agreement to a section or article, such reference shall be to a section or article of this Agreement unless otherwise clearly indicated to the contrary. 
  
 (b)    Whenever the words “include,” “includes” or “including” are used in this Agreement they shall be
deemed to be followed by the words “without limitation.” 

 
 7 

  
 (c)    The words “hereof,”
“herein” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement, and annex, article, section, paragraph,
exhibit and schedule references are to the annex, articles, sections, paragraphs, exhibits and schedules of this Agreement unless otherwise specified. 
  
 (d)    The plural of any defined term shall have a meaning correlative to such defined term, and words denoting any gender shall include
all genders and the neuter. Where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning. 
  
 (e)    A reference to any party to this Agreement or any other agreement or document shall include such party’s successors and permitted assigns. 
  
 (f)    A reference to any legislation or to any provision of any legislation shall include any
modification, amendment or re-enactment thereof, any legislative provision substituted therefor and all rules, regulations and statutory instruments issued under or related to such legislation. 
  

(g)    The Parties have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of
intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provisions of this
Agreement. 
  
 (h)    No prior draft of this Agreement nor any course of
performance or course of dealing shall be used in the interpretation or construction of this Agreement. 
  
 (i)    The Parties intend that each provision of this Agreement shall be given full separate and independent effect. Although the same or similar subject matters may be addressed in different provisions of this
Agreement, the Parties intend that, except as expressly provided in this Agreement, each such provision be read separately, be given independent significance and not be construed as limiting any other provision in this Agreement (whether or not more
general or more specific in scope, substance or context). 
  
 2.    The Purchase and Sale of
the Securities 
  
 2.1    
Authorization of the Financing 
  
 (a)    Parent has
authorized the issuance, sale and delivery of the Notes to the Purchasers, in the original aggregate principal amount of up to $40,000,000, to be dated the date of issuance thereof, to mature on the Maturity Date, to bear interest on the unpaid
balances thereof from the date of issuance thereof until the principal thereof shall be paid in full at the rate of 14.0% per annum for the A-1 Notes and 10.0% per annum for the Series A-2 Notes based upon a 360 day year for actual days elapsed,
payable on each May 1 and November 1 in arrears, commencing on May 1, 2003 and to be substantially in the form of Exhibit 2.1(a). 
  
 (b)    Parent has authorized the issuance, sale and delivery of (i) the Preferred Warrants, substantially in the form of Exhibit 2.1(b)(i), to the A-1 Purchaser, (ii) the Common
Warrants to the A-2 Purchasers, if any, each substantially in the form of Exhibit 2.1(b)(ii), and the Change in Control Warrants to the Purchasers, each substantially in the form of Exhibit 2(b)(iii). The Warrants have a cashless exercise price
(subject to anti-dilution adjustments) of $0.01 per Warrant Share. 
  
 (c)    Each of the Existing Guarantors has, or shall have prior to the Closing, authorized its Guaranty. Each of the Existing Guarantors is, or shall be at the Closing, also obligated under the Credit Agreement
and shall receive a direct and substantial benefit as a result of the use of the proceeds of the sale of the Notes to reduce the outstanding obligations under the Credit Agreement. 
  
 2.2    
Obligations to Purchase and Sell Securities. 
  
 (a)    Subject to the terms and conditions in this Agreement, Parent agrees to issue and sell to the Purchasers and each Purchaser, severally and not jointly, agrees to purchase from Parent, the Notes and

 
 8 

	 	
the Warrants in the series and denominations set forth opposite such Purchaser’s name on Schedule 1 or Schedule 2, as the case may be. Each A-2 Purchaser, if any, shall deliver, on or before
the Determination Date, a fully-executed counterpart signature page to this Agreement to each of Parent and the A-1 Purchaser whereby such A-2 Purchaser shall be made a Party. The execution and delivery of such counterpart signature page shall
represent such A-2 Purchaser’s acceptance of, and agreement to become a party to and be bound by, all of the terms and conditions of this Agreement and until delivery of a counterpart signature page, no A-2 Purchaser shall have any obligation
to purchase any A-2 Notes or Warrants. A-2 Notes shall be purchased and sold in increments of $1,000,000 principal amount. 
 

  
 (b)    Subject to the satisfaction or waiver of the conditions in Article 7 and concurrently with the closing of the transactions contemplated by the Combination Agreement, the
transactions contemplated in Section 2.2(a) shall be consummated (the “Closing”), at 10:00 a.m. (New York City time) the offices of Latham & Watkins, 885 Third Avenue, Suite 1000, New York, New York 10022-4802, or at such other time
and place and the Parties may agree. 
  
 (c)    At the Closing, each Purchaser
shall deliver to Parent a wire transfer of immediately available funds in the amount set forth opposite such Purchaser’s name on Schedule 1 or Schedule 2, as the case may be, against delivery of duly-executed Notes, Common Warrants or Preferred
Warrants and Change in Control Warrants, dated as of the date of date during which the Closing Date occurs, registered in such Purchaser’s name, in the series and denominations set forth opposite such Purchaser’s name on Schedule 1 or
Schedule 2, as the case may be. Wire transfers shall be sent to Parent’s account identified to the Purchasers at least five Business Days before the Closing Date. 
  
 (d)    On the Determination Date, Schedule 1 shall be amended to reflect the A-1 Principal Amount and, if necessary, Schedule 2 shall be
amended to reflect the A-2 Principal Amount and shall include the A-2 Purchasers, if any, and the respective principal amount of A-2 Notes to be purchased by each A-2 Purchaser. STT Communications shall have the right, but not the obligation, to
purchase, and Parent shall reserve for purchase by STT Communications, A-1 Notes up to the A-1 Principal Amount; provided that STT Communications shall be obligated to purchase no less than $30,000,000 principal amount of A-1 Notes (together
with the Preferred Warrants), and provided further that Jaguar Parent may assign its right to purchase up to $10,000,000 principal amount of Notes to one or more assignees who are current stockholders of Pihana or other persons reasonably
acceptable to Parent, and in such event, such assignees shall purchase A-2 Notes in accordance with this Section 2.2 (together with Common Warrants as determined pursuant to Section 2.3). Any amount of Notes not purchased by Jaguar or its assignees
may be sold by Parent in the form of A-2 Notes to Purchasers that Parent may select in its discretion, prior to the Determination Date, in an amount up to the A-2 Principal Amount (together with Common Warrants as determined pursuant to Section
2.3). Notwithstanding the foregoing, prior to the Determination Date, LoneTree Capital Management LLC or its designated affiliates shall have the right, but not the obligation, to purchase, and Parent shall reserve for purchase by LoneTree Capital
Management LLC or its affiliates, not more than $2,000,000 principal amount of A-2 Notes (together with any Common Warrants as determined pursuant to Section 2.3), regardless of the amount, if any, of A-2 Notes purchased by any other Purchaser, and
the amount of A-2 Notes so purchased by LoneTree Capital Management LLC or its designated affiliates shall be deducted from the $10,000,000 principal amount of Notes as to which Jaguar Parent may assign purchase rights. A Person may only become an
assignee of Jaguar Parent under this Section 2.2 if such Person delivers a fully executed counterpart signature page to this Agreement on or prior to the Determination Date. 
  
 
2.3    Determination of Warrant Shares. 
  
 (a)    On the Determination Date, Parent shall cause to be delivered to the Purchasers and their special counsel a schedule (the “Preliminary Schedule”) calculating (a) the fully-diluted capitalization
of Parent, as of the Closing Date, after giving pro-forma effect to the transactions contemplated by the Combination Documents and (b) the number of shares of Conversion Preferred Stock issuable upon

 
 9 

 
exercise of the Preferred Warrants and the number of shares of Common Stock issuable upon exercise of the Common Warrants. The Common Warrants shall be exercisable into a number of shares of
Common Stock representing a percentage of the fully-diluted capitalization of Parent equal to the product of the A-2 Principal Amount and 0.000000275. The Preferred Warrant shall be exercisable into a number of shares of Conversion Preferred Stock
representing a percentage of the fully-diluted capitalization of Parent equal to the product of the A-1 Principal Amount and 0.000000275.The Preliminary Schedule shall be in a form substantially similar to Schedule 2.3(a) which shows the pro forma
fully-diluted capitalization of Parent as of August 31, 2002 and the number of Warrant Shares that would be issuable with respect to the A-1 Notes and A-2 Notes, if any. 
  
 (b)    If the Purchasers object to the calculation in the Preliminary Schedule, they shall provide on the eighth Business Day prior to
the anticipated date on which the Closing is expected to occur, their schedule (the “Objection Schedule”) calculating (a) the fully diluted capitalization of Parent, as of the Closing Date, after giving pro-forma effect to the transactions
contemplated by the Combination Documents and (b) the number of shares of Conversion Preferred Stock issuable upon exercise of the Preferred Warrant and the number of shares of Common Stock issuable upon exercise of the Common Warrants. Such
schedule shall be in a form substantially similar to Schedule 2.3(a) which shows the fully diluted capitalization of Parent as of August 31, 2002 and the number of Warrant Shares that would be issuable with respect to the A-1 Notes and A-2 Notes, if
any. 
  
 (c)    If Parent objects to the Objection Schedule on or before the
third Business Day before the Closing Date, Parent and representatives of the Purchasers shall request that Ernst & Young LLP prepare a final schedule (the “Final Schedule”) on or before the Business Day immediately before the Closing,
after reviewing the Preliminary Schedule and the Objection Schedule. The number of Preferred Warrant Shares and Common Warrant Shares set forth in the Final Schedule shall be conclusive as to the number of shares issuable, as of the Closing Date
(subject to future adjustment as provided in the Warrants), upon exercise of the Warrants. 
  
 
2.4    Cash Trigger Warrants.    At Closing, Parent shall issue the Cash Trigger Warrants. The Series A Cash Trigger Warrants and the Series B Cash Trigger Warrants
shall represent $10,000,000 and $20,000,000, respectively, of the aggregate cash exercise price payable under the Cash Trigger Warrants. The Cash Trigger Warrants will be issued to the Purchasers, and other Persons who will be stockholders of Parent
following the Closing, in such amount and allocations as shall be mutually agreed among the Purchasers prior to Closing. 
  
 3.    Representations and Warranties of the Issuers.    Parent hereby represents and warrants to the Purchasers that the statements contained in this Article 3 are true and correct.

  
 
3.1    Authority Relative to This Agreement.    Subject to obtaining approval of Parent stockholders, Parent and each Existing Guarantor has all necessary corporate
power and authority to execute and deliver each of the Financing Documents to which it is a party and to consummate the transactions contemplated by this Agreement. Except for a vote of Parent stockholders, the execution and delivery of each of such
Financing Documents by Parent and each Existing Guarantor and the consummation by Parent and each Existing Guarantor, as applicable, of the transactions contemplated by this Agreement have been duly and validly authorized by all necessary corporate
action and no other corporate proceedings on the part of Parent are necessary to authorize each of such Financing Documents or to consummate the transactions contemplated by this Agreement. Each of the Financing Documents to which Parent or an
Existing Guarantor is a party has been duly and validly executed and delivered by Parent and each Existing Guarantor, as applicable, and, assuming, approval of Parent stockholders and the due authorization, execution and delivery by the other
parties thereto, constitutes a legal, valid and binding obligation of Parent and each Existing Guarantor, as applicable, enforceable against Parent and each Existing Guarantor, as applicable, in accordance with its terms. 

 
 10 

  
 3.2    
No Conflict; Required Filings and Consents  
  
 (a)    The execution and delivery by Parent and each Existing Guarantor of each of the Financing Documents to which it is a party do not, and the performance by Parent and each Existing Guarantor of its respective
obligations under each of the Financing Documents will not, (i) conflict with or violate the certificate of incorporation or bylaws of Parent or any of its Subsidiaries, (ii) conflict with or violate in any material respect any Law applicable to
Parent or any of its Subsidiaries or by which any property or asset of Parent or any of its Subsidiaries is bound or affected, or (iii) conflict with, result in any material breach of or constitute a material default (or an event which with notice
or lapse of time or both would become a default) under, require consent, approval or notice under, give to others any right of termination, amendment, acceleration or cancellation of, require any payment under, or result in the creation of a lien or
other encumbrance on any material property or asset of Parent or any of its Subsidiaries pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation to which Parent or
any of its Subsidiaries is a party or by which any material property or asset of Parent or any of its Subsidiaries is bound or affected, except in the case of clauses (ii) and (iii) for such conflicts, violations, breaches, defaults, consents,
approvals, notices or other rights that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect and, except in the case of clause (iii), for the liens contemplated by the Financing Documents.

  
 (b)    The execution and delivery by Parent and each Existing Guarantor of
each of the Financing Documents to which it is a party do not, and the performance of its respective obligations under this Agreement will not, require any consent, approval, order, permit, or authorization from, or registration, notification or
filing with a Governmental Entity, except for such other consents, approvals, orders, permits, authorizations, registrations, notifications or filings, which if not obtained or made could not reasonably be expected, individually or in the aggregate,
to prevent or materially delay the consummation of the transactions contemplated by this Agreement, except for filings with Government Entities with respect to collateral contemplated by the Financing Documents. 
  
 
3.3    Collateral. 
  
 (a)    The execution and delivery of the Collateral Documents by Parent and any Existing Guarantor, together with the actions to be taken on or prior to the Closing Date for the benefit of the Holders shall create
a valid security interest in the Collateral, subject only to the First Priority Liens and the Permitted Liens, and all filings and other actions necessary or desirable to perfect and maintain the perfection and First Priority or Second Priority
status, as applicable, of such Liens have been or shall be duly made or taken by the Closing Date, other than the actions required under federal law to register and record interests in intellectual property. 
  
 (b)    No authorization, approval or other action by, and no notice to or filing with, any
Governmental Authority or regulatory body is required for either (i) the pledge or grant by Parent or any Existing Guarantor of the Liens purported to be created in favor of the Collateral Agent for the benefit of the Secured Parties pursuant to any
of the Collateral Documents or (ii) the exercise by the Collateral Agent of any rights or remedies in respect of any Collateral (whether specifically granted or created pursuant to any of the Collateral Documents or created or provided for by
applicable law), except for filings or recordings as may be required in connection with the perfection of security interests, the disposition of any Investment Related Property, or by laws generally affecting the offering and sale of securities.

  
 (c)    Except with respect to any Permitted Lien and such as may have been
filed in favor of Collateral Agent, no effective UCC financing statement, fixture filing or other instrument similar in effect covering all or any part of the Collateral is on file in any filing or recording office. 
  
 (d)    All information supplied to the Collateral Agent by or on behalf of Parent or any Existing
Guarantor with respect to any of the Collateral (in each case taken as a whole with respect to any particular Collateral) is accurate and complete in all material respects. 

 
 11 

  
 (e)    Without limiting the generality of the
foregoing, Parent and each Existing Guarantor represents and warrants that all of its Cash and Cash Equivalents shall be maintained in accounts in existence as of the Closing in which the Collateral Agent has a perfected security interest or such
other accounts as may be pre-approved by the Collateral Agent, and in which Collateral Agent has a perfected security interest, other than Permitted Liens. 
  
 
3.4    Governmental Regulation.    Neither Parent nor the Existing Guarantor is subject to regulation under the Public Utility Holding Parent Act of 1935, the Federal Power Act
or the Investment Parent Act of 1940 or under any other federal or state statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all or any portion of the Obligations or Financing Document Obligations
unenforceable. Neither Parent nor the Existing Guarantor is a “registered investment company” or a company “controlled” by a “registered investment company” or a “principal underwriter” of a “registered
investment company” as such terms are defined in the Investment Company Act of 1940. 
  
 
3.5    Margin Stock.    Neither Parent nor the Existing Guarantor is engaged principally, or as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying any Margin Stock. No part of the proceeds of sale of the Notes to the Purchasers shall be used to purchase or carry any such margin stock or to extend credit to others for the purpose of purchasing or carrying any
such margin stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T, U or X of the Board of Governors of the Federal Reserve System. 
  
 
3.6    Private Placement; No Brokers.    Neither Parent nor any of its Subsidiaries, nor any agent acting on behalf of any of them has taken any action that (a) would cause the
issuance and sale of any of the Offered Securities to be in violation of the provisions of Section 5 of the Securities Act, or (b) violates the provisions of any securities or blue sky law of any applicable jurisdiction. No broker, financial
advisor, finder or other Person is entitled to any fee from Parent or any of its Subsidiaries in connection with the transactions contemplated by the Financing Documents, except for Salomon Smith Barney Inc. whose engagement letter has been provided
to special counsel for the Purchasers. 
  
 
3.7    Incorporation of Representations and Warranties by Reference. 
  
 (a)    Parent hereby represents and warrants (i) to the Purchasers that the representations and warranties of Parent, in Article 4 of the Combination Agreement, as qualified by the Parent Disclosure
Letter are true and correct as if each such representation or warranty was set forth in full herein; (ii) to the A-1 Purchaser that the representations and warranties in Article 3A of the Combination Agreement, as qualified by the Pihana Disclosure
Letter, are true and correct as if each such representation or warranty were set forth in full herein; and (iii) to the A-2 Purchasers, if any, that the representations and warranties in Article 3B of the Combination Agreement, as qualified by the
i-STT Disclosure Letter, are true and correct as if each such representation or warranty were set forth in full herein. Solely with respect to this Section 3.7, the definitions of the applicable capitalized terms in the Combination Agreement are
applicable to such representations and warranties. 
  
 (b)    Notwithstanding the
survival and remedies provisions of Combination Agreement, for purposes of this Agreement only, each such representation and warranty shall survive the Closing and the purchase and sale of the Offered Securities, the transfer by any Purchaser of any
Offered Securities or portion thereof or interest therein and the payment of any Note, and may be relied upon by Purchaser or any transferee of an Offered Security or Parent, as applicable, regardless of any investigation made at any time by or on
behalf of a Purchaser or any transferee of an Offered Security or Parent in accordance with Section 11.4. 
  
 
3.8    No Misstatements.    No representation or warranty made by Parent or any Existing Guarantors in this Agreement, any other Transaction Documents, any certificate delivered
or written statements furnished deliverable to the Purchasers by or on behalf of Parent or any Existing Guarantor for use in connection with the transactions contemplated hereby contains or shall contain, any untrue statement of a material fact or
omits or shall not, when taken as a whole, to state a material fact (known to Parent or any Existing Guarantor, in the case of any document not furnished by any of them) necessary to make the statements

 
 12 

	 	
contained herein or therein not misleading in light of the circumstances in which the same were made. Any projections and pro forma financial information contained in such materials are based
upon good faith estimates and assumptions believed by Parent and each Existing Guarantor to be reasonable at the time made, it being recognized by the Purchasers that such projections as to future events are not to be viewed as facts and that actual
results during the period or periods covered by any such projections may differ from the projected results. 
 

  
 4.    Representations and Warranties of the Purchasers.    Each Purchaser, severally and not jointly, represents and warrants to Parent and each Existing Guarantor: 

 
 
4.1    Investment Intent.    Such Purchaser is an “accredited investor” within the meaning of Regulation D under the Securities Act, that it is acquiring the Offered
Securities for the purpose of investment and not with a view to the distribution thereof, and that it has no present intention of selling, negotiating, or otherwise disposing of the Offered Securities in violation of applicable law. Such Purchaser
has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the Offered Securities and is capable of bearing the economic risks of such indefinitely. Such
Purchaser understands that Parent is relying on statements contained in this Section 4.1 to establish an exemption from registration under federal and state securities laws. 
  
 
4.2    ERISA Matters.    The source of funds being used by such Purchaser to pay the purchase price of the Notes being purchased by it hereunder constitutes assets: (i) allocated
to the “insurance company general account” (as such term is defined under Section V of the United States Department of Labor’s Prohibited Transaction Class Exemption (“PTCE”) 95-60) of such Purchaser, and the purchase and
holding of the Notes by Purchaser shall at all times satisfy all of the applicable requirements for relief under PTCE 95-60, (ii) allocated to a separate account maintained by the Purchaser in which no employee benefit plan, or group of plans
maintained by the same employer, participates to the extent of 10% or more, and the purchase and holding of the Notes by Purchaser each shall at all times satisfy all of the applicable requirements for relief under PTCE 90-1 or (iii) of an
investment fund or other source, the assets of which do not include assets of any employee benefit plan within the meaning of ERISA. For the purpose of this section, the terms “separate account” and “employee benefit plan” shall
have the respective meanings specified in Section 3 of ERISA. 
  
 
4.3    Authority Relative to This Agreement.    Such Purchaser has all necessary corporate power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by such Purchaser and the consummation by such Purchaser of the transactions contemplated by this Agreement have been duly and validly
authorized by all necessary corporate or partnership action and no other corporate or partnership proceedings on the part of such Purchaser are necessary to authorize this Agreement or to consummate the transactions contemplated by this Agreement.
This Agreement has been duly and validly executed and delivered by such Purchaser and, assuming the due authorization, execution and delivery by Parent and the other Parties, constitutes a legal, valid and binding obligation of such Purchaser,
enforceable against such Purchaser in accordance with its terms. 
  
 
4.4    No Conflict; Required Filings and Consents 
  
 (a)    The execution and delivery of this Agreement by such Purchaser do not, and the performance of its obligations under this Agreement by such Purchaser will not, (i) conflict with or violate the certificate of
incorporation or bylaws (or similar organizational documents) of such Purchaser, (ii) conflict with or violate in any material respect any Law applicable to such Purchaser or by which any property or asset of such Purchaser or affected, or (iii)
conflict with, result in any material breach of or constitute a material default (or an event which with notice or lapse of time or both would become a default) under, require consent, approval or notice under, give to others any right of
termination, amendment, acceleration or cancellation of, require any payment under, or result in the creation of a lien or other encumbrance on any material property or asset of such Purchaser pursuant to, any note, bond, mortgage, indenture,
contract, agreement, lease, license, permit, franchise or other instrument or

 
 13 

	 	
obligation to which such Purchaser is a party or by which any material property or asset of such Purchaser is bound or affected, except in the case of clauses (ii) and (iii) for such conflicts,
violations, breaches, defaults, consents, approvals, notices or other rights that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
 

  
 (b)    The execution and delivery of this Agreement by such Purchaser do not, and the performance of
its obligations under this Agreement by such Purchaser will not, require any consent, approval, order, permit, or authorization from, or registration, notification or filing with a Governmental Entity, except for such other consents, approvals,
orders, permits, authorizations, registrations, notifications or filings, which if not obtained or made could not reasonably be expected, individually or in the aggregate, to prevent or materially delay the consummation of the transactions
contemplated by this Agreement. 
  
 
4.5    Access to Funds.    Such Purchaser currently has sufficient immediately available funds in cash or cash equivalents and shall on the Closing Date have sufficient
immediately available funds, in cash, to pay the purchase price set forth opposite such Purchaser’s name on Schedule 1 and to effect the transactions contemplated hereby. 
  
 
4.6    Legend.    Such Purchaser understands that each certificate or other document evidencing any of the Offered Securities shall be endorsed with the legends in the form set
forth in Section 9.9(d). 
  
 
4.7    Private Placement; No Brokers.    Neither such Purchaser nor any agent acting on behalf of it has taken any action that (a) would cause the issuance and sale
of any of the Offered Securities to be in violation of the provisions of Section 5 of the Securities Act or (b) violates the provisions of any securities or blue sky law of any applicable jurisdiction. No broker, financial advisor, finder or other
Person is entitled to any fee from such Purchaser for which Parent would be liable in connection with the transactions contemplated by the Financing Documents. 
  
 5.    Affirmative Covenants.    Parent and each Existing Guarantor, jointly and severally, covenant and agree that so long as the Notes are outstanding,
Parent and each Existing Guarantor shall, and shall cause each of its Restricted Subsidiaries to perform, all covenants set forth or incorporated by reference in this Section 5. If any covenant in the Credit Agreement incorporated by reference in
this Section 5 shall be amended, modified or superseded, or compliance therewith shall be waived, as provided in the Credit Agreement, (a) such amendment, modification, superseding or waiver shall also be automatically effective with respect to such
incorporated by reference covenant concurrently with the effectiveness of such amendment, modification, superseding or waiver under the Credit Agreement without any action of Parent or any Holder and (b) Parent shall promptly provide notice to each
Holder of such action (together with a copy of any instrument effecting such amendment, modification or waiver) with respect to such covenant. If requested by Parent, the Holders shall promptly execute an instrument evidencing such amendment,
modification or waiver. 
  
 
5.1     Affirmative Covenants of Credit Agreement.    Parent shall at all times perform and comply and cause its Subsidiaries to perform and comply with all
affirmative covenants set forth in the Credit Agreement, as if such covenants were set forth in full herein, mutatis mutandis. 
  
 
5.2    Certificate Upon Event of Default.    Promptly upon any officer of Parent obtaining knowledge (a) of any condition or event that constitutes a Default or an Event of
Default or that notice has been given to Parent with respect thereto; or (b) that any Person has given any notice to Parent or any of its Subsidiaries or taken any other action with respect to any event or condition set forth in Section 8(a)(iii), a
certificate of an executive officer of Parent specifying the nature and period of existence of such condition or event, or specifying the notice given and action taken by any such Person and the nature of any such claimed Event of Default, Default,
event or condition, and what action Parent has taken, is taking and proposes to take with respect thereto. 
  
 
5.3    Notice of Adverse Proceeding.    Promptly upon any officer of Parent obtaining knowledge of the institution of, or non-frivolous threat of, any Adverse Proceeding not
previously disclosed in writing by Parent to the Holders, or any material development in any Adverse Proceeding that, if adversely determined,

 
 14 

 
could be reasonably expected to have a Material Adverse Effect, or seeks to enjoin or otherwise prevent the consummation of, or to recover any damages or obtain relief as a result of, the
transactions contemplated hereby or any of the other Financing Documents, written notice thereof together with such other information as may be reasonably available to Parent to enable the Holders and their counsel to evaluate such matters.

  
 
5.4    Further Assurances.    At any time or from time to time upon the request of Requisite Holders, Parent and any Guarantor shall, at its expense, promptly execute,
acknowledge and deliver such further documents and do such other acts and things as Requisite Holders or the Collateral Agent may reasonably request in order to effect fully the purposes of the Financing Documents. In furtherance and not in
limitation of the foregoing, Parent and each Guarantor shall take such actions as Requisite Holders or the Collateral Agent may reasonably request from time to time (including the execution and delivery of guaranties, security agreements, pledge
agreements, mortgages, deeds of trust, landlord’s consents and estoppels, control agreements, stock powers, financing statements and other documents as contemplated by the Financing Documents, the filing or recording of any of the foregoing,
title insurance with respect to any of the foregoing that relates to any Real Estate Asset, and the delivery of stock certificates and other collateral with respect to which perfection is obtained by possession) to ensure that the Obligations and
the Financing Obligations are guaranteed by the Guarantors and are secured by substantially all of the assets of Parent, and its Restricted Subsidiaries and all of the outstanding Capital Stock of Parent’s Subsidiaries (subject to limitations
contained in the Credit Documents with respect to Foreign Subsidiaries). 
  
 
5.5    Tax Treatment. 
  
 (a)    Parent and each Guarantor shall use their best efforts to ensure that any aspect of the Combination is not treated as a tax-free reorganization under the Internal Revenue Code. 
  
 (b)    For purposes of determining the extent to which gain may be recognized pursuant to Section 897
of the Internal Revenue Code, the Parties agree to treat the conversion of Notes to Conversion Preferred Stock or Common Stock, as the case may be, pursuant to Sections 9.4 and 9.5 as an event in which no gain or loss is realized for United States
federal income tax purposes, unless there is a change in Law affecting such treatment that becomes effective after the date of this Agreement. Notwithstanding the foregoing, to the extent any Conversion Preferred Stock or Common Stock is issued with
respect to any accrued and unpaid interest (including PIK Notes) on a Note upon the conversion, the amount equal to such accrued and unpaid interest (including PIK Notes) shall constitute interest income to the Holder of such Note, unless such
Holder previously included such amount as income. 
  
 
5.6    Collateral Obligations.    Parent shall cause each Guarantor to fulfill its obligations under the A-1 Security Documents and any amendment thereof.

  
 
5.7    Subsidiaries.    If, after the date of this Agreement, any Person becomes a Restricted Subsidiary of Parent, Parent shall (except as provided in the A-1
Security Documents) (i) promptly cause such Restricted Subsidiary to become a Guarantor hereunder and a Grantor under the Pledge and Security Agreement by executing and delivering to the Holders and Collateral Agent a Counterpart Agreement duly
executed by an Authorized Officer of such Domestic Subsidiary, (ii) cause such Domestic Subsidiary to execute a Guaranty, and (iii) take all such actions and execute and deliver, or cause to be executed and delivered, all such documents,
instruments, agreements, and certificates as may be reasonably requested by any Holder. With respect to each such Subsidiary, Parent shall promptly send to the Holders and Collateral Agent written notice setting forth with respect to such Person the
date on which such Person became a Subsidiary of Parent and details of Parent’s ownership thereof. 
  
 
5.8    Singapore Holding Company.    From and after the Closing, Parent shall operate Interco Singapore solely as a holding company for the outstanding shares of Jaguar, and
Parent shall ensure that each of Interco Singapore, Jaguar Singapore and their respective Subsidiaries shall: 
  
 (a)    not dissolve its affairs or consolidate with or merge with any other Person or allow any other Person to consolidate with or merge into it nor enter into any other form of reconstruction or arrangement;

 
 15 

  
 (b)    not acquire or invest in any way in
any assets other than in the ordinary course of operations; 
  
 (c)    not enter
into any transaction with any holding company, subsidiary or affiliate of Parent other than on normal commercial arms’ length terms; 
  
 (d)    not make or grant any loan or advance or provide or extend any credit or accommodation other than customary short term trade credit in the ordinary course of trading or give
any guarantee, indemnity or other assurance against loss to or for the benefit of any Person or act as surety or otherwise voluntarily assume any liability, whether actual or contingent, in respect of any obligation of any other Person;

  
 (e)    not incur, assume or permit to exist any Indebtedness in respect of
borrowed moneys other than: 
  
 (i)    trade or any other similar Indebtedness
raised in the ordinary course of business and on bona fide open market terms; and 
  
 (ii)    any other indebtedness which has been approved in writing by the A-1 Purchaser prior to such indebtedness being incurred; 
  
 (iii)    not declare or pay out any dividend or repay, redeem or repurchase any share capital; and 
  
 (f)    cause any entity which becomes its subsidiary to execute and deliver to the A-1 Purchaser such
further or additional documents for the purposes of securing the Secured Debt (as defined in the A-1 Security Documents) in such form and in relation to such of its assets as the A-1 Purchaser shall require. 
  
 6.    Negative Covenants.    Parent and the Guarantors, jointly and severally, covenant and
agree that, so long as any Notes are outstanding Parent and each Guarantor shall perform, and shall cause each of its Restricted Subsidiaries to perform, all covenants in this Section 6. If any covenant in the Credit Agreement incorporated by
reference in this Section 6 shall be amended, modified or superseded, or compliance therewith shall be waived, as provided in the Credit Agreement, (a) such amendment, modification, superseding or waiver shall also be automatically effective with
respect to such incorporated by reference covenant concurrently with the effectiveness of such amendment, modification, superseding or waiver under the Credit Agreement without any action of Parent or any Holder and (b) Parent shall provide notice
to each Holder of such action (together with a copy of any instrument effecting such amendment, modification or waiver) with respect to such covenant. If requested by Parent, the Holders shall promptly execute an instrument evidencing such
amendment, modification or waiver.  
  
 
6.1    Negative Covenants of Credit Agreement. 
  
 Parent shall at all times perform and comply and cause its Subsidiaries to perform and comply with all negative covenants set forth in Section 6 of the Credit Agreement, as if such covenants were set forth in full herein, mutatis
mutandis. 
  
 
6.2    Usury Laws.    To the extent permitted law, neither Parent nor the Guarantors shall seek to avoid, limit or otherwise fail to discharge any of the Financing Obligations
under any applicable usury or similar laws. 
  
 
6.3    Tax Treatment.    Neither Parent nor the Guarantors shall take any action that would cause or would be likely to cause the Combination to be treated as a
tax-free reorganization under the Internal Revenue Code. 

 
 16 

  
 7.    Conditions to Closing. 
  
 
7.1    Purchasers’ Closing Conditions.    The obligation of each Purchaser to purchase and pay for the Offered Securities to be purchased by it at the Closing is subject to
the satisfaction or waiver, prior to or at the Closing, of the following conditions: 
  
 (a)    Each Purchaser shall have received from counsel for Parent and the Existing Guarantor, (i) an opinion or opinions substantially in the form set forth in Exhibit 7.1(a), addressed to Purchasers, dated the
Closing Date, and otherwise reasonably satisfactory in substance and form to the Purchasers and their special counsel and (ii) a letter entitling such Purchaser to rely on all opinions of counsel delivered to the Lenders in connection with the
Collateral Documents. 
  
 (b)    The representations and warranties of Parent and
each Existing Guarantor in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified as to materiality or Material Adverse Effect, which shall be true and correct in all
respects) when made and as if made at the Closing Date, except to the extent the representation or warranty is limited by its terms to another date. There shall exist on the Closing Date and after giving effect to such transactions, no Event of
Default nor a Default under this Agreement, the Credit Agreement or any other material contract to which Parent or any of its Subsidiaries is a party for which the applicable cure period has not expired. 
  
 (c)    Parent and each of the Existing Guarantors shall have performed and complied in all material
respects with all covenants in this Agreement required to be complied with on or prior to the Closing Date. 
  
 (d)    The Purchasers shall have received a certificate, dated as of the Closing Date, executed by the chief executive officer and the chief financial officer of Parent stating that the conditions set forth in
Sections 7.1(b) and 7.1(c) have been satisfied. 
  
 (e)    The conditions set
forth in Section 7.01(g)(ii) and Section 7.01(g)(iii) of the Combination Agreement shall have been satisfied or waived. 
  
 (f)    The Purchasers shall have received, in form and substance satisfactory to them and their counsel, a certificate duly executed by an executive officer of Parent certifying, on the Closing Date, that
concurrent with the consummation of the transactions contemplated by this Agreement, the transactions contemplated by the Combination Agreement shall have been consummated in accordance with the terms of the Combination Agreement. 

 
 (g)    The offering, issuance, purchase and sale of the Offered Securities by the
Purchasers, on the Closing Date, on the terms and subject to the conditions of this Agreement, shall not be prohibited by any applicable law or governmental regulation (including Section 5 of the Securities Act and Regulations T, U, or X of the
Federal Reserve Board) and shall not subject any Purchaser to any tax, penalty, liability, or other onerous condition under or pursuant to any applicable law or governmental regulation. 
  
 (h)    Parent and each Existing Guarantor shall have received all authorizations, consents, approvals, licenses, franchises, permits,
and certificates by or of all Governmental Authorities in each case, necessary for the issuance of the Offered Securities, and the execution and delivery of the Financing Documents and all of them shall be in full force and effect on the Closing
Date. 
  
 (i)    No preliminary or permanent injunction or other order issued by
any Governmental Authority, nor any state, rule, regulation, decree or executive order promulgated or enacted by any Governmental Authority, which declares the Financing Documents invalid or unenforceable in any respect or which prevents the
consummation of the transactions contemplated hereby or thereby, shall be in effect. 

 
 17 

  
 (j)    Financing Documents. 

 
 (i)    Each of the parties to the Intercreditor Agreement shall have executed and
delivered to each other a fully executed counterpart of the Intercreditor Agreement; 
  
 (ii)    Each Existing Guarantor shall have executed and delivered to their respective Guarantees to the Purchasers; 
  
 (iii)    Each of the parties to the A-1 Security Documents shall have executed and delivered to each other a fully executed counterpart
of each of the A-1 Security Documents, together with all other documents which may be required or necessary for the purposes of perfecting each of the A-1 Security Documents, any title deeds or share certificates relating to any asset in respect of
which a security interest has been created pursuant to the A-1 Security Documents and the evidence of the amendment of the constitutive documents of any corporation whose shares are charged or mortgaged pursuant to the A-1 Security Documents as may
be necessary or desirable in connection with such charge or mortgage; 
  
 (iv)    Each of the parties to the Registration Rights Agreement shall have executed and delivered to each other a fully executed counterpart of the Registration Rights Agreement; and 
  
 (v)    All of the Notes and the Warrants shall have been issued and sold pursuant to this Agreement
and duly executed registered Notes and Warrants therefor shall have been delivered to the respective Purchasers of such Offered Securities. 
  
 (k)    Parent and the Existing Guarantors shall have paid all of the fees, costs, and expenses of the Purchasers’ special counsel to the extent provided in Section 11.2(a).

  
 (l)    Parent shall have delivered or shall have caused to be delivered, to
the Purchasers copies of the following documents, duly certified, or the following certificates, as applicable: 
  
 (i)    Resolutions of the board of directors of Parent (A) authorizing the issuance of the Warrants, the shares of Conversion Preferred Stock issuable upon conversion of the A-1 Notes and the exercise of the
Preferred Warrant, and the shares of Common Stock issuable upon conversion of the A-2 Notes, if any, and exercise of the Common Warrants, the Change in Control Warrants and the Cash Trigger Warrants and the execution, delivery, and performance of
the Financing Documents to which it is a party, (B) authorizing the consummation of the transactions contemplated by the Financing Documents to which it is a party and (C) authorizing all other actions to be taken by Parent in connection with the
Financing Documents, and the Credit Documents to which it is a party; 
  
 (ii)    Certificates, signed by the secretary or an assistant secretary of Parent, dated as of the Closing Date, as to (A) the incumbency, and containing the specimen signature or signatures, of the Person or
Persons authorized to execute the Financing Documents to which it is a party on behalf of Parent, together with evidence of the incumbency of such secretary or assistant secretary, and (B) the authenticity of Parent’s certificate of
incorporation and Parent’s bylaws (copies of which shall be attached to such certificates); and 
  
 (iii)    A certificate of status or good standing of Parent, from the Secretary of State of the State of Delaware, and of each other state or other jurisdiction in which Parent is qualified to do business, dated
no earlier than ten days prior to the Closing Date. 
  
 (m)    Each Existing
Guarantor shall have delivered or shall have caused to be delivered, to Purchasers copies of the following documents, duly certified, or the following certificates, as applicable: 
  
 (i)    Resolutions of the board of directors of the Existing Guarantor authorizing (A) the execution, delivery, and performance of the
Financing Documents to which it is a party, (B) the
 

 
 18 

	 	
consummation of the transactions contemplated by the Financing Documents to which it is a party and (C) all other actions to be taken by such Existing Guarantor in connection with the Financing
Documents, and the Credit Documents to which it is a party; 
 

  
 (ii)    Certificates, signed by the secretary or an assistant secretary of such Existing Guarantor, dated as of the Closing Date, as to (A) the incumbency, and containing the specimen signature or signatures, of
the Person or Persons authorized to execute the Financing Documents to which it is a party on behalf of the Existing Guarantor, together with evidence of the incumbency of such secretary or assistant secretary, and (B) the authenticity of such
Existing Guarantor’s certificate of incorporation and such Existing Guarantor’s bylaws (copies of which shall be attached to such certificates); and 
  
 (iii)    A certificate of status or good standing of the Existing Guarantor, from the Secretary of State of the state of organization
of the Existing Guarantor, and of each other state or other jurisdiction in which the Existing Guarantor is qualified to do business, dated no earlier than five days prior to the Closing Date. 
  

7.2    
Parent Closing Conditions.    The obligation of Parent to issue, sell and deliver the Offered Securities to be sold by it at the Closing is subject to the satisfaction or waiver, prior to or at the
Closing, of the following conditions: 
  
 (a)    The representations and
warranties of each Purchaser in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified as to materiality, which shall be true and correct in all respects) when made and as
if made at the Closing Date, except to the extent the representation or warranty is limited by its terms to another date. 
  
 (b)    Each Purchaser shall have performed and complied in all material respects with all covenants in this Agreement required to be complied with on or prior to the Closing Date. 
  
 (c)    Parent and each Existing Guarantor shall have received all authorizations, consents, approvals,
licenses, franchises, permits, and certificates by or of all Governmental Authorities in each case, necessary for the issuance of the Offered Securities, and the execution and delivery of the Financing Documents and all of them shall be in full
force and effect on the Closing Date. 
  
 (d)    No preliminary or permanent
injunction or other order issued by any Governmental Authority, nor any statute, rule, regulation, decree or executive order promulgated or enacted by any Governmental Authority, which declares the Financing Documents invalid or unenforceable in any
respect or which prevents the consummation of the transactions contemplated hereby or thereby, shall be in effect. 
  
 (e)    Parent and each Existing Guarantor shall have received all authorizations, consents, approvals, licenses, franchises, permits, and certificates by or of all Governmental Authorities in each case,
necessary for the issuance of the Offered Securities, and the execution and delivery of the Financing Documents and all of them shall be in full force and effect on the Closing Date. 
  
 (f)    The transactions contemplated by the Combination Agreement shall have been consummated in accordance with the terms of the
Combination Agreement. 
  
 8.    
Events of Default. 
  
 (a)    If any one or more of
the following conditions or events or any event of default under the Credit Agreement (each, an “Event of Default”) shall occur: 
  
 (i)    Failure by Opco to pay (A) when due any installment of principal of any Loan, whether at stated maturity, by acceleration, by notice of voluntary prepayment, by mandatory
prepayment or otherwise; or (B) any interest on any Loan or any fee or any other amount due under any of the Credit Documents within five days after the date due; or 

 
 19 

  
 (ii)    Failure by Parent to (A) pay when
due the principal of the Notes, whether at stated maturity, by acceleration, by voluntary prepayment or otherwise; (B) make, when due, a Change in Control Offer or to pay the offered price in such Change in Control Offer; or (C) pay when due any
interest on any Note or any fee or any other amount due under any of the Financing Documents within five days after the date due; or 
  
 (iii)    (A) Failure of Parent or any Existing Guarantor to pay when due any principal of or interest on or any other amount payable in respect of one or more items of Indebtedness
(other than Indebtedness referred to in Section 8(a)(i) or (ii)) in an individual principal amount of $250,000 or more or with an aggregate principal amount of $1.0 million or more, in each case beyond the grace period, if any, provided therefor or
(B) any breach or default by Parent or any Existing Guarantor with respect to any other material term of one or more items of Indebtedness in the individual or aggregate principal amounts referred to in clause (A) above or any loan agreement,
mortgage, indenture or other agreement relating to such item(s) of Indebtedness; or (C) breach or default by any Parent or any Existing Guarantor with respect to any other term of Permitted Equipment Financing or Permitted Unsecured Debt, in each
case beyond the grace period, if any, provided therefor, if the effect of such breach or default is to cause, or to permit the holder or holders of that Indebtedness (or a trustee on behalf of such holder or holders), to cause, that Indebtedness to
become or be declared due and payable (or redeemable) prior to its stated maturity or the stated maturity of any underlying obligation, as the case may be; or 
  
 (iv)    Any representation, warranty, certification or other statement made or deemed made by any Credit Party in any Credit Document
or any Financing Document or in any statement or certificate at any time given by any Credit Party or any of its Subsidiaries in writing pursuant to any Credit Document or Financing Document or in connection with any Credit Document shall be false
in any material respect as of the date made or deemed made; or 
  
 (v)    Failure of any Credit Party to perform or comply with any term or condition contained in Section 2.4, 5.1(h), 5.2 or 6 of the Credit Agreement; or failure to comply with any material term or condition
governing insurance of Parent required pursuant to Section 5.5 for a period of fifteen days from the time of receipt of notice under the applicable insurance agreement; or 
  
 (vi)    If Parent or any Guarantor shall default in the performance of or compliance with any term contained herein or any of the other
Financing Documents, other than any such term referred to in any other subsection of this Section 8(a), and such default shall not have been remedied or waived within ten days after the earlier of (A) an officer of Parent or any such Guarantor
becoming aware of such default or (B) receipt by Parent or Opco of notice from any Holder of such default; or 
  
 (vii)    If a Credit Party shall default in the performance of or compliance with any term contained in the Credit Agreement, and such default shall not have been remedied or waived within ten days after the
earlier of (A) an officer of Parent, any Guarantor, or any Credit Party becoming aware of such default or (B) receipt by Parent, Opco or any Credit Party of notice from the Administrative Agent or any Lender of such default; or 

 
 (viii)    (A) A court of competent jurisdiction shall enter a decree or order for relief
in respect of Parent or any of its Restricted Subsidiaries in an involuntary case under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, which decree or order is not stayed; or any
other similar relief shall be granted under any applicable federal or state law; or (B) an involuntary case shall be commenced against Parent or any of its Restricted Subsidiaries under the Bankruptcy Code or under any other applicable bankruptcy,
insolvency or similar law now or hereafter in effect; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over
Parent or any of its Restricted Subsidiaries, or over all or a substantial part of its property, shall have been entered; or there shall
 

 
 20 

	 	
have occurred the involuntary appointment of an interim receiver, trustee or other custodian of Parent or any of its Restricted Subsidiaries for all or a substantial part of its property; or a
warrant of attachment, execution or similar process shall have been issued against any substantial part of the property of Parent or any of its Restricted Subsidiaries, and any such event described in this clause (B) shall continue for sixty days
without having been dismissed, bonded or discharged; or 
 

  
 (ix)    (A) Parent or any of its Restricted Subsidiaries shall have an order for relief entered with respect to it or shall commence a voluntary case under the Bankruptcy Code or under any other applicable
bankruptcy, insolvency or similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law, or shall consent to
the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property; or Parent or any of its Restricted Subsidiaries shall make any assignment for the benefit of creditors; or (B) Parent or
any of its Restricted Subsidiaries shall be unable, or shall fail generally, or shall admit in writing its inability, to pay its debts as such debts become due; or the board of directors (or similar governing body) of Parent or any of its Restricted
Subsidiaries (or any committee thereof) shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to herein or in Section 8(a)(viii); or 
  
 (x)    Any money judgment, writ or warrant of attachment or similar process involving (A) in any individual case an amount in excess of
$250,000 or (B) in the aggregate at any time an amount in excess of $1.0 million (in either case to the extent not adequately covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage) shall be entered
or filed against Parent or any of its Restricted Subsidiaries or any of their respective assets and shall remain undischarged, unvacated, unbonded or unstayed for a period of sixty days (or in any event later than five days prior to the date of any
proposed sale thereunder); or 
  
 (xi)    Any order, judgment or decree shall be
entered against Parent or any Guarantor decreeing the dissolution or split up Parent or any such Guarantor and such order shall remain undischarged or unstayed for a period in excess of thirty days; or 
  
 (xii)    There shall occur one or more ERISA Events which individually or in the aggregate results in
or might reasonably be expected to result in liability of Parent, any of its Restricted Subsidiaries or any of their respective ERISA affiliates in excess of $1.5 million during the term hereof; or there shall exist an amount of unfunded benefit
liabilities (as defined in Section 4001(a)(18) of ERISA), individually or in the aggregate for all Pension Plans (excluding for purposes of such computation any Pension Plans with respect to which assets exceed benefit liabilities), which exceeds
$500,000; or 
  
 (xiii)    At any time after the execution and delivery thereof,
(A) any Guaranty for any reason, other than the satisfaction in full of all Financing Obligations in accordance with the term hereof, shall cease to be in full force and effect (other than in accordance with its terms) or shall be declared to be
null and void or any Guarantor shall repudiate its obligations thereunder, (B) this Agreement or any Collateral Document ceases to be in full force and effect (other than by reason of a release of Collateral in accordance with the terms hereof or
thereof or the satisfaction in full of the Obligations in accordance with the terms hereof) or shall be declared null and void, or Collateral Agent shall not have or shall cease to have a valid and perfected Lien in favor of the Holders in any
Collateral (other than by reason of a release of Collateral in accordance with the terms hereof or thereof or willful misconduct or the part of the Collateral Agent) purported to be covered by the Collateral Documents with the priority required by
the relevant Collateral Document, or (C) Parent or any Guarantor shall contest the validity or enforceability of any Credit Document or Financing Document in writing or deny in writing that it has any further liability, including with respect to
future advances by Lenders, under any Credit Document to which it is a party; or 

 
 21 

  
 (xiv)    Parent or any Restricted Subsidiary
is in default on any obligation to make base rental payments under at least one lease with respect to either (A) each of any three Leasehold Properties which are Permitted IBX Facilities or (B) any Leasehold Properties which are designated as
“San Jose IBX” and “Secaucus IBX”, respectively, on Schedule 1.1(a) to the Credit Agreement; or 
  
 (xv)    Parent or any of its Subsidiaries incurs, permits or suffers to exist any Lien on the Asian Assets, other than Liens of the type described in by Sections 6.2(b), 6.2(c), 6.2(d), 6.2(e), 6.2(f),
6.2(g), 6.2(h), 6.2(i), 6.2(j), 6.2(k), 6.2(n), 6.2(o), 6.2(p) and 6.2(r) of the Credit Agreement, and Liens pursuant to the A-1 Security Agreements, 
  
 then, (1) upon the occurrence of any Event of Default described in Section 8(a)(viii) or 8(a)(ix), automatically, and (2) upon the occurrence of any other
Event of Default, at the request of (or with the consent of) the Requisite Holders upon notice to Parent by such Requisite Holders, (A) each of the following shall immediately become due and payable, in each case without presentment, demand, protest
or other requirements of any kind, all of which are hereby expressly waived by Parent and each Guarantor: (i) the unpaid principal amount of and accrued interest on the Notes, and (ii) all other Obligations; (B) Requisite Holders may cause the
Collateral Agent to enforce any and all Liens and security interests created pursuant to the Collateral Documents; and (C) Requisite Holders may exercise all other remedies available under Applicable Law (or under the Financing Documents).

  
 (b)    If an Event of Default in the Credit Agreement corresponding to an
Event of Default in this Section 8 (which shall not include Events of Default specified under Section 8(a)(ii), 8(a)(vi), or 8(a)(xv)) shall be amended, modified or superseded, or compliance therewith shall be waived, as provided in the Credit
Agreement (other than an Event of Default with respect to the payment of the Notes), (i) such amendment, modification, superseding or waiver shall also be automatically effective with respect to the corresponding Event of Default in this Agreement
without any action of Parent or any Holder and (ii) Parent shall provide notice to each Holder of such action (together with a copy of any instrument effecting such amendment, modification or waiver) with respect to such Event of Default. If
requested by Parent, the Holders shall promptly execute an instrument evidencing such amendment, modification or waiver. 
  
 9.    
Terms of the Notes. 
  
 9.1    
Registration; Exchange; Substitution of Notes. 
  
 (a)    Parent shall keep at its principal executive office a register for the registration and transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and
address of the transferee of one or more Notes shall be registered in such register. Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and Holder
thereof for all purposes of this Agreement. Parent shall not be affected by any notice or knowledge to the contrary. Parent shall give to any holder of a Note that is an institutional investor promptly after receipt of a request, a complete and
correct copy of the names and addresses of all registered Holders. 
  
 (b)    Upon surrender of any Note at the principal executive office of Parent for registration of transfer or exchange (and in the case of a surrender for registration of transfer, duly indorsed or accompanied by
a written instrument of transfer duly authorized by the Holder or such Holder’s attorney duly authorized in writing and accompanied by the address for notices of each transferee of Note or part thereof), Parent shall execute and deliver, at
Parent’s expense (except as provided below), one or more new Notes (as requested by the transferor) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be
payable to such Person as the transferor shall request. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall
have been paid thereon. Parent may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer

 
 22 

	 	
of Notes. Notes shall not be transferred in denominations of less than $1,000,000; provided, that if necessary to enable the registration of transfer by a Holder of its entire remaining
holdings of Notes, one Note may be in a denomination of less than $1,000,000. Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representation in Section 4.2.

 

  
 (c)    Upon receipt by Parent of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an institutional investor, notice from such institutional investor of such ownership and such loss, theft,
destruction or mutilation), and (i) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to Parent (provided that if such Holder is, or is nominee for, an institutional investor, such Person’s own unsecured
agreement of indemnity shall be deemed to be satisfactory), or (ii) in the case of mutilation, upon surrender and cancellation thereof, Parent, at its own expense, shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest
from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon. 
  
 9.2    
Cash Payments on Notes. 
  
 (a)    Subject to Section
9.2(b), payments of principal and Change in Control Price becoming due and payable on the Notes shall be made in The City of New York from a bank account of Parent located in such jurisdiction. Parent, may at any time, by notice to each Holder,
change the place of payment of such Notes so long as such place of payment shall be either the principal office of Parent in The City of New York or an office of a bank or trust company in such jurisdiction. 
  
 (b)    Notwithstanding Section 9.2(a), Parent shall pay all sums becoming due in cash on each Note for
principal or Change in Control Price becoming due on a Note by the method and at the address specified for such purpose on a Purchaser’s signature page to this Agreement, or by such other method or at such other address as a Holder shall from
time to time provide in writing to Parent for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon the written request of Parent concurrently with or reasonably promptly after
payment of any Note, the Holder shall surrender such Note for cancellation, reasonably promptly after such request, to Parent at its principal executive offices. Prior to any sale or other disposition of any Note by any Holder, the Holder shall
either indorse on the Note the principal on such Note and the last date to which interest has been paid on such Note or surrender such Note to Parent in exchange for a new Note or Notes pursuant to Section 9.1. 
  
 9.3    
Acquisition of Notes. 
  
 (a)    Neither Parent nor
any of its Subsidiaries shall purchase or otherwise acquire any Note except pursuant to an offer made pro rata and on the same terms to all Holders of Notes. If Parent or any of its Subsidiaries acquires any Notes, such Notes shall be cancelled and
shall not be reissued, and no Note shall be issued in substitution of such Note. 
  
 (b)    Parent shall not have the right to prepay any Note prior to the Maturity Date. 
  
 9.4    
Conversion at Option of Holder.    Each Holder of A-1 Notes or A-2 Notes, if any, shall have the right, at its option, at any time, and from time to time, after the Closing Date to
convert, subject to the terms and provisions of this Section 9.4, as follows: 
  
 (a)    any or all of such Holder’s A-1 Notes may be converted into such number of fully-paid and nonassessable shares of Conversion Preferred Stock as is equal to the quotient of (x) the principal amount of
such Note together with accrued and unpaid interest on such Note to and including the Conversion Date divided by (y) the product of (i) the Conversion Price in effect at the close of business on the Conversion Date and (ii) the number of shares of
Common Stock into which one share of Conversion Preferred Stock may be converted (using the then applicable conversion price and ignoring

 
 23 

	 	
any restrictions on such convertibility) pursuant the Certificate of Designation (the “A-1 Conversion Rate”); provided, however, that the A-1 Notes shall convert into shares of
Common Stock at the A-2 Conversion Rate if, (i) the A-1 Holders so elect, or (ii) at the time of conversion, any shares of Conversion Preferred Stock have been converted to Common Stock pursuant to the conversion provisions contained in Section
5(a)(ii) or 5(b)(ii) of the Certificate of Designation; 
 

  
 (b)    any and all of such Holder’s A-2 Notes, if any, may be converted into such number of fully-paid and nonassessable shares of Common Stock, as is equal, to the quotient of (x) the principal amount of
such Note together with accrued and unpaid interest on such Note to and including the Conversion Date divided by (y) the Conversion Price in effect at the close of business on the Conversion Date (the “A-2 Conversion Rate”); 

 
 (c)    the conversion right of a Holder shall be exercised by the Holder by the surrender
of the Notes to be converted to Parent at any time during usual business hours at Parent’s principal place of business, accompanied by written notice that the Holder elects to convert all or a portion of the Notes represented by such
certificate and specifying the name or names (with address) in which a certificate or certificates for shares of Conversion Preferred Stock or Common Stock, as the case may be, are to be issued and (if so required by Parent) by a written instrument
or instruments of transfer in form reasonably satisfactory to Parent duly executed by the Holder or its duly authorized attorney and transfer tax stamps or funds therefor, if required pursuant to Section 9.1(b). Immediately prior to the close of
business on the Conversion Date, each converting Holder shall be deemed to be the holder of record of the shares of Conversion Preferred Stock or Common Stock, as applicable, issuable upon conversion of such Holder’s Notes, notwithstanding that
the share register of Parent shall then be closed or that certificates representing such Common Stock shall not then be actually delivered to such Person. Immediately prior to the close of business on a Conversion Date, all rights with respect to
the Notes so converted, including the rights, if any, to receive notices, shall terminate, except only the rights of Holders thereof to (i) receive certificates for the number of shares of Conversion Preferred Stock or Common Stock, as the case may
be, into which such shares of Notes have been converted; and (ii) exercise the rights to which they are entitled as holders of Conversion Preferred Stock or Common Stock, as the case may be; and 
  

(d)    no fractional shares of Common Stock or Conversion Preferred Stock shall be issued upon the conversion of any A-1 Note or
A-2 Note, or portion thereof, and the aggregate number of shares of Common Stock or Conversion Preferred Stock to be issued to a particular Holder shall be rounded down to the nearest whole share of Common Stock or Conversion Preferred Stock, as the
case may be, and Parent shall pay in cash the Current Market Value of any fractional shares of the time when entitlement to receive such fractions is determined. Whether or not fractional shares of Common Stock or Conversion Preferred Stock would be
issuable upon such conversion shall be determined on the basis of the total number of shares of Common Stock or Conversion Preferred Stock issuable to such Holder upon such conversion. 
  
 9.5    
Conversion at the Option of Parent 
  
 (a)    Upon
the occurrence of any Trading Period after the Second Anniversary, Parent shall have the right to convert up to 95% of the original principal amount of each of the A-1 Notes and the A-2 Notes, if any, and upon the occurrence of any Trading Period
after the Third Anniversary, Parent shall have the right to convert all of the remaining principal amount of each of the A-1 Notes and the A-2 Notes, if any (each an “Optional Conversion”), at the Conversion Price plus accrued and unpaid
interest. 
  
 (b)    If Parent shall have the right to convert Notes pursuant to
Section 9.5(a), Parent shall not exercise such right unless (i) Parent has complied with Section 2.4 of the Registration Rights Agreement, (ii) if less than all of the Notes are to be converted, such conversion shall be done pro rata among the A-1
Notes and the A-2 Notes, if any, based on the aggregate outstanding principal amount thereof on the Forced Conversion Date and (iii) Parent notifies each Holder, within two Trading Days,

 
 24 

	 	
of the completion of any Trading Period for which it elects to effect an Optional Conversion. If Parent fails to comply with the requirements of this Section 9.5(b) in connection with an Optional
Conversion, Parent shall loose the right to such Optional Conversion for the instant Trading Period and shall not be able to exercise its right to effect a redemption until the next occurrence of a Trading Period (commencing no earlier than thirty
days before the day immediately following completion of the preceding Trading Period). 
 

  
 (c)    If Parent desires to exercise its conversion right pursuant to this Section 9.5, the Notes shall be converted into such number of fully paid and nonassessable shares of Conversion Preferred Stock or Common
Stock, as the case may be, at the A-1 Conversion Rate and the A-2 Conversion Rate, as applicable; provided that the A-1 Notes shall convert into Common Stock at the A-2 Conversion Rate, if, at the time of conversion, any shares of Conversion
Preferred Stock have been converted into Common Stock pursuant to the conversion provisions contained in Section 5(a)(ii) or 5(b)(ii) of the Certificate of Designation. Such conversion shall be effective immediately prior to the close of business on
the Forced Conversion Date without any action by any Holder. Immediately prior to the close of business on the Forced Conversion Date, each Holder of Notes as of the close of business on such date shall be deemed to be the holder of record of the
shares of Conversion Preferred Stock or Common Stock, as the case may be, issuable upon conversion of such Holder’s Notes, notwithstanding that the share register of Parent shall then be closed or that certificates representing such shares of
Conversion Preferred Stock or Common Stock, as the case may be, shall not then be actually delivered to such Person. At the close of business on the Forced Conversion Date, all rights with respect to the Notes so converted, including the rights, if
any, to receive notices, shall terminate, except only the rights of Holders thereof to (i) receive certificates for the number of shares of Conversion Preferred Stock or Common Stock, as the case may be, into which such shares of Notes have been
converted; and (ii) exercise the rights to which they are entitled as holders of Conversion Preferred Stock or Common Stock, as the case may be. No former Holder shall be entitled to receive certificates representing shares of Conversion Preferred
Stock or Common Stock, as the case may be, issued pursuant to this Section 9.5, unless and until such former Holder surrenders the converted Notes to Parent at its principal executive office. Promptly following surrender of such converted Notes,
Parent shall issue certificates representing the shares of Conversion Preferred Stock or Common Stock, as the case may be, into which such surrendered Note was converted registered in the name of the former Holder of such Note or such other Person
as such former Holder shall specify, so long as such former Holder has complied with the transfer procedures set forth in Section 9.1(b). 
  
 9.6    
Conversion Price.    The Conversion Price is subject to adjustment from time to time as provided in this Section 9.6. 
  
 (a)    Adjustment for Change in Capital Stock: 
  
 (i)    If, after the date hereof, Parent: 
  

	 	(A)
	 
	pays a dividend or makes a distribution on its Common Stock in shares of any of its Common Stock or Warrants, rights or options exercisable for its Common
Stock, other than a dividend or distribution of the type described in Section 9.6(i); 
 

  

	 	(B)
	 
	pays a dividend or makes a distribution on its Common Stock in shares of any of its Capital Stock, other than Common Stock or rights, warrants or options
exercisable for its Common Stock and other than a dividend or distribution of the type of described in Section 9.6(i); or 
 

  

	 	(C)
	 
	subdivides any of its outstanding shares of Common Stock into a greater number of shares; or 
 

  

	 	(D)
	 
	combines any of its outstanding shares of Common Stock into a smaller number of shares; or 
 

 
 25 

  

	 	(E)
	 
	issues by reclassification of any of its Common Stock any shares of any of its Capital Stock; 
 

  
 then the Conversion Price in effect immediately prior to such action shall be adjusted so that the Holder of Note thereafter exercised may
receive the number of shares of Capital Stock of Parent which such Holder would have owned immediately following such action if such Holder had converted such Note (and any Conversion Preferred Stock issuable upon such conversion, if applicable)
immediately prior to such action or immediately prior to the record date applicable thereto, if any (regardless of whether the Notes or Preferred Stock are then convertible). 
  
 (ii)    The adjustment shall become effective immediately after the record date in the case of a dividend or distribution and
immediately after the effective date in the case of a subdivision, combination or reclassification. If such dividend or distribution is not so paid or made or such subdivision, combination or reclassification is not effected, the Conversion Price
shall again be adjusted to be the Conversion Price which would then be in effect if such record date or effective date had not been so fixed. 
  
 (iii)    If after an adjustment a Holder upon conversion of a Note may receive shares of two or more classes of Capital Stock of Parent, the Conversion Price shall thereafter be
subject to adjustment upon the occurrence of an action taken with respect to any such class of Capital Stock as is contemplated by this Section 9.6(a) with respect to the Common Stock, on terms comparable to those applicable to Common Stock in this
Section 9.6. 
  
 (b)    Adjustment for Sale of Common Stock Below Conversion
Price: 
  
 (i)    If, after the date hereof, Parent grants or sells any Common
Stock or any securities convertible into or exchangeable or exercisable for any Common Stock at a price below the then applicable Conversion Price (a “Dilutive Issuance”) other than: 
  

	 	(A)
	 
	securities issued pursuant to an equity incentive plan of Parent to Parent’s or its Subsidiaries’ employees, directors, or other individuals who
provide services to Parent or its Subsidiaries, as approved by Parent’s board of directors; 
 

  

	 	(B)
	 
	securities issued by Parent in connection with a bona fide business acquisition by Parent approved by Parent’s board of directors; 

  

	 	(C)
	 
	securities issued or issuable pursuant to strategic transactions with Parent’s customers entered into by Parent for primarily non-equity financing purposes
approved by Parent’s board of directors; 
 

  

	 	(D)
	 
	securities issued in connection with Parent’s repurchase of the Senior Notes; 
 

  

	 	(E)
	 
	Common Stock issued pursuant to the conversion or exercise of convertible or exercisable securities outstanding on the date of this Agreement; 

  

	 	(F)
	 
	Common Stock issued or issuable upon (i) conversion of the Notes to Conversion Preferred Stock or Common Stock, (ii) exercise of Warrants for shares of Common
Stock or Conversion Preferred Stock (including the Change in Control Warrants) or (iii) conversion of Series A Preferred to Common Stock; or 
 

  

	 	(G)
	 
	Common Stock issued or issuable in connection with the Merger or the Stock Purchase (each an “Excluded Conversion Adjustment”), 

  
 the Conversion Price shall be adjusted in accordance with the formula: 
  
 
	                 CP’ =

CP(CS+(AC/CP))
         CS+AS
 

 
 
CP’
=    The adjusted Conversion Price; 

 
 26 

  
 CP =    The Conversion Price prior to the
Dilutive Issuance; 
  
 AC =    Aggregate consideration paid for the securities
issued in the Dilutive Issuance; 
  
 AS =    Number of shares of securities (on
as-converted basis) issued in the Dilutive Issuance. 
  
 CS =    Common Stock
outstanding immediately prior to the Dilutive Issuance (“Common Stock Outstanding”) shall mean and include the following: (1) outstanding Common Stock, (2) Common Stock issuable upon conversion of all outstanding Preferred Stock, (3)
Common Stock issuable, assuming a net exercise, upon exercise of all stock options outstanding on the Closing Date with an exercise price equal to or less than $2.00 per share, (4) Common Stock issuable upon exercise of options issued after the
Closing Date for which the exercise price equals or exceeds the Current Market Value of the Common Stock on the date of issuance of such options, (5) Common Stock issuable, assuming a net exercise, upon exercise (and, in the case of warrants to
purchase Preferred Stock, conversion) of all warrants outstanding (or issuable pursuant to this Agreement) on the Closing Date with a strike price per share equal to or less than $2.00 per share, and (6) Common Stock issuable upon exercise of
warrants issued after the Closing Date for which the exercise price equals or exceeds the Current Market Value of the Common Stock on the date of issuance of such warrants. Notwithstanding the foregoing, Common Stock Outstanding shall exclude
Warrant Shares and shares of Conversion Preferred Stock or Common Stock issuable upon conversion of the Notes. Shares described in (1) through (6) above shall be included whether vested or unvested, whether contingent or non-contingent and whether
exercisable or not yet exercisable); and 
  
 (ii)    The adjustment shall become
effective immediately after the Dilutive Issuance. 
  
 (iii)    In the case of
the issuance of a Dilutive Issuance for cash, the consideration shall be deemed to be the amount of cash paid therefor before deducting any reasonable discounts, commissions or other expenses allowed, paid or incurred by Parent for any underwriting
or otherwise in connection with the issuance and sale thereof. 
  
 (iv)    In
the case of a Dilutive Issuance for a consideration in whole or in part other than cash, the consideration other than cash shall be deemed to be the fair market value thereof as determined in good faith by the Board of Directors irrespective of any
accounting treatment. 
  
 (v)    In the case of the issuance of options to
purchase or rights to subscribe for Common Stock, securities by their terms convertible into or exchangeable for Common Stock or options to purchase or rights to subscribe for such convertible or exchangeable securities, the following provisions
shall apply for purposes of determining the number of shares of Additional Stock issued and the consideration paid therefore: 
  

	 	(A)
	 
	The aggregate maximum number of shares of Common Stock deliverable upon exercise (assuming the satisfaction of any conditions to exercisability, including
without limitation, the passage of time, but without taking into account potential antidilution adjustments) of such options to purchase or rights to subscribe for Common Stock shall be deemed to have been issued at the time such options or rights
were issued and for a consideration equal to the consideration (determined in the manner provided in Sections 9.6(b)(iii) and 9.6(b)(iv)), if any, received by Parent upon the issuance of such options or rights plus the minimum exercise price
provided in such options or rights (without taking into account potential anti-dilution adjustments) for the Common Stock covered thereby. 
 

  

	 	(B)
	 
	The aggregate maximum number of shares of Common Stock deliverable upon conversion of, or in exchange (assuming the satisfaction of any conditions to
convertibility or exchangeability, including, without limitation, the passage of time, but without taking into account potential antidilution adjustments) for, any such convertible or exchangeable securities or upon the exercise of options to
purchase or rights to subscribe for such convertible or exchangeable securities and subsequent conversion or
 
 

 
 27 

	 	
exchange thereof shall be deemed to have been issued at the time such securities were issued or such options or rights were issued and for a consideration equal to the consideration, if any,
received by this corporation for any such securities and related options or rights (excluding any cash received on account of accrued interest or accrued dividends), plus the minimum additional consideration, if any, to be received by Parent
(without taking into account potential antidilution adjustments) upon the conversion or exchange of such securities or the exercise of any related options or rights (the consideration in each case to be determined in the manner provided in Sections
9.6(b)(i) and 9.6(b)(v)). 
 

  

	 	(C)
	 
	In the event of any change in the number of shares of Common Stock deliverable or in the consideration payable to this corporation upon exercise of such options
or rights or upon conversion of or in exchange for such convertible or exchangeable securities, the Conversion Price, to the extent in any way affected by or computed using such options, rights or securities, shall be recomputed to reflect such
change, but no further adjustment shall be made for the actual issuance of Common Stock or any payment of such consideration upon the exercise of any such options or rights or the conversion or exchange of such securities. 

  

	 	(D)
	 
	Upon the expiration of any such options or rights, the termination of any such rights to convert or exchange or the expiration of any options or rights related
to such convertible or exchangeable securities, the Conversion Price, to the extent in any way affected by or computed using such options, rights or securities or options or rights related to such securities, shall be recomputed to reflect the
issuance of only the number of shares of Common Stock (and convertible or exchangeable securities that remain in effect) actually issued upon the exercise of such options or rights, upon the conversion or exchange of such securities or upon the
exercise of the options or rights related to such securities. 
 

  

	 	(E)
	 
	The number of shares deemed issued and the consideration deemed paid therefor in the Dilutive Issuance pursuant to Sections 9.6(b)(v)(A) and 9.6(b)(v)(B) shall
be appropriately adjusted to reflect any change, termination or expiration of the type described in either Section 9.6(b)(v)(C) or 9.6(b)(v)(D). 
 

  
 (vi)    No adjustment shall be made under this Section 9.6(b) for any adjustment which is the subject of Section 9.6(a). 

 
 (c)    Whenever the Conversion Price is adjusted, Parent shall promptly mail to Holders of
Notes then outstanding at the addresses appearing on the Notes register maintained pursuant to Section 9.1(a) a notice of the adjustment. Parent shall obtain a certificate from Parent’s independent public accountants briefly stating the facts
requiring the adjustment and the manner of computing it. The certificate shall be conclusive evidence that the adjustment is correct. 
  
 (d)    If Parent consummates a Fundamental Transaction, as a condition to consummating any such transaction the Person formed by or surviving any such consolidation or merger if
other than Parent or the Person to whom such transfer has been made (the “Surviving Person”) shall assume the obligations under the Notes and issue to each Holder an assumption agreement. The assumption agreement shall provide (i) that the
holder of a Note then outstanding may convert it for the kind and amount of securities, cash or other assets which such holder would have received immediately after the Fundamental Transaction if such holder had converted such Note immediately
before the effective date of the transaction, assuming (to the extent applicable) that such holder (A) was not a constituent Person or an affiliate of a constituent Person to such transaction, (B) made no election with respect thereto, and (C) was
treated alike with the plurality of non-electing holders, and (ii) that the Surviving Person shall succeed to and be substituted to every obligation of Parent in respect of this Agreement and the Notes. The assumption agreement shall provide for
adjustments which shall be as nearly equivalent as
 

 
 28 

	 	
may be practicable to the adjustments provided for in this Section 9.6. The Surviving Person shall mail to Holders at the addresses appearing on the Notes register maintained pursuant to Section
9.1(a) a notice briefly describing the assumption agreement. If the issuer of securities deliverable upon exercise of Notes is an affiliate of the Surviving Person, that issuer shall join in such agreement. 
 

 
 (e)    Parent shall at all times reserve and keep available, free from preemptive rights,
out of its authorized but unissued Conversion Preferred Stock and Common Stock, as applicable, or shares of Conversion Preferred Stock or Common Stock held in the treasury of Parent, for the purpose of effecting the conversion of the Notes, the full
number of shares of Conversion Preferred Stock and Common Stock, as applicable, then deliverable upon the conversion of all Notes then outstanding, and the shares so deliverable shall be fully paid and nonassessable and free from all Liens.

  
 (f)    After an adjustment to the Conversion Price under this Section 9.6,
any subsequent event requiring an adjustment under this Section 9.6 shall cause an adjustment to the Conversion Price as so adjusted. 
  
 (g)    No Adjustment in the Conversion Price need be made unless the adjustment would require an increase or decrease of at least 1% in the Conversion Price. Any adjustments that
are not made shall be carried forward and taken into account in any subsequent adjustments. All adjustments to the Conversion Price calculated under this Section 9.6 shall be made to the nearest 1/1,000th of a share. 
  
 (h)    Parent shall not be required to issue fractional shares upon conversion of the Notes or
distribute share certificates that evidence fractional shares. In lieu of fractional shares, there shall be paid to the former Holders an amount in cash equal to the same fraction of the Current Market Value, per share on the Business Day preceding
the Conversion Date or Forced Conversion Date, as applicable. Such payments shall be made by check. If any Holder surrenders for conversion more than one Note, the number of shares deliverable to such holder may, at the option of Parent, be computed
on the basis of the aggregate amount of all the Notes exercised by such Holder. 
  
 (i)    If at any time Parent grants, issues or sells options, convertible securities, or rights to purchase stock, warrants or other securities pro rata to the record holders of any Common Stock
(“Distribution Rights”) or, without duplication, makes any dividend or otherwise makes any distribution, including, subject to applicable law, pursuant to any plan of liquidation (“Distribution”) on the Common Stock, then Parent
shall grant, issue, sell or make to each Holder of Notes then outstanding, the aggregate Distribution Rights or Distribution, as the case may be, which such holder would have acquired if such holder had held the maximum number of shares acquirable
upon complete conversion of such Holder’s Notes (regardless of whether the Notes are then exercisable) immediately before the record date for the grant, issuance or sale of such Distribution Rights or Distribution, as the case may be, or, if
there is no such record date, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Distribution Rights or Distribution, as the case may be. 
  
 9.7    
Change in Control. 
 (a)    If a Change in Control occurs, each Holder shall have the
right, at such Holder’s option, subject to the terms and conditions of this Agreement, to require Parent to repurchase all or any part of such Holder’s Notes at a cash price (the “Change in Control Payment”) equal to the
principal amount of such Note, plus accrued and unpaid interest, if any, to and including the date the Notes tendered are purchased and paid for in accordance with this Section 9.7 (the “Change in Control Payment Date”). 

 
 (b)    If a Change in Control occurs, Parent shall be required to commence an offer to
purchase Securities (a “Change in Control Offer”), as follows: 
  
 (i)    the Change in Control Offer shall commence within ten Business Days following the Change in Control date; 
  
 (ii)    the Change in Control Offer shall remain open for at least twenty Business Days, except to the extent that a longer period is
required by applicable law, but in any case not more than

 
 29 

	 	
ninety Business Days after the occurrence of the Change in Control (or not more than 120 days of the Change in Control if, during any such extension beyond ninety days following the Change in
Control, Parent is diligently pursuing all commercially reasonable steps to consummate the Change in Control Offer as promptly as practicable); and 
 

  
 (iii)    on or before the commencement of any Change in Control Offer, Parent shall send a notice to each of the Holders which shall
(to the extent consistent with this Agreement) govern the terms of the Change in Control Offer and shall state: 
  

	 	(A)
	 
	that the Change in Control Offer is being made pursuant to such notice and this Section 9.7 and that all Notes, or portions thereof, tendered shall be accepted
for payment; 
 

  

	 	(B)
	 
	the amount of accrued and unpaid interest as of the then applicable Change in Control Payment Date, the then applicable Change in Control Payment Date and the
Change in Control Put Date (as defined below); 
 

  

	 	(C)
	 
	that any Note, or portion thereof, not tendered or accepted for payment or converted by Parent shall continue to accrue interest; 

  

	 	(D)
	 
	that, unless Parent defaults in depositing cash with the paying agent in accordance with Section 9.7(d) or such payment is prevented, any Note, or portion
thereof, accepted for payment pursuant to the Change in Control Offer shall cease to accrue interest after the Change in Control Payment Date; 
 

  

	 	(E)
	 
	that Holders electing to have a Note, or portion thereof, purchased pursuant to a Change in Control Offer shall be required to surrender the Note, with the form
entitled “Option of Holder to Elect to Have Notes Purchase” on the reverse of the Note completed, to the paying agent (which may not be Parent or any affiliate of Parent) at the address specified in the notice prior to the close of
business on the earlier of (a) the third Business Day prior to the Change in Control Payment Date and (b) the third Business Day following the expiration of the Change in Control Offer (such earlier date being the “Change in Control Put
Date”); 
 

  

	 	(F)
	 
	that Holders shall be entitled to withdraw their election, in whole or in part, if the paying agent (which may not be Parent or any affiliate of Parent)
receives, prior to the time of payment of the Change of Control Payment by the paying agent on the Change in Control Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the
Notes such Holder is withdrawing and a statement that such Holder is withdrawing his, her or its election to have such principal amount of Notes purchased; 
 

  

	 	(G)
	 
	that Holders whose Notes are purchased only in part shall be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered; and

 

  

	 	(H)
	 
	a brief description of the events resulting in such Change in Control. 
 

  
 (c)    Any such Change in Control Offer shall comply with all applicable provisions of Federal and state laws, including those
regulating tender offers, if applicable, and any provisions of this Agreement which conflict with such laws shall be deemed to be superseded by the provisions of such laws. 
  
 (d)    On or before the Change in Control Payment Date, Parent shall (i) accept for payment Notes or portions thereof properly tendered
pursuant to the Change in Control Offer on or before the Change in Control Put Date and (ii) deposit with the paying agent cash sufficient to pay the Change in Control Payment (including accrued and unpaid interest) for all Notes or portions thereof
so tendered. The paying agent shall on the Change in Control Payment Date mail to Holders of Notes so accepted payment in an amount equal to the Change in Control Payment for such Notes, and Parent shall promptly issue and mail or deliver to such
Holders a new Note equal in principal amount to any
 

 
 30 

	 	
unpurchased portion of the Note surrendered. Parent shall not have any obligation to accept for payment or pay for any Notes tendered by a Holder after the Change in Control Put Date. Any Note
not so accepted shall be promptly mailed or delivered by Parent to the Holder thereof. 
 

  
 9.8    
Payment of Interest in Kind.    Interest payments on the Notes may not be paid in cash. Parent shall, on each interest payment date, issue and sell, to each Holder, Notes identical on terms to the
Notes held by such Holder (the “PIK Notes”) in an aggregate principal amount equal to $1,000 times the next lowest integer to the quotient of (a) the interest accrued and unpaid on all Notes owned by such Holder as of such interest payment
date divided by (b) $1,000. PIK Notes may be denominated in aggregate principal amounts of less than $1,000. Each PIK Note shall be dated such interest payment date and registered in the name of the Holder of the Note with respect to which such PIK
Note relates. Such PIK Note shall accrue interest, payable in additional PIK Notes, from and after its date of issue. 
  
 9.9    
Transfer Restrictions. 
  
 (a)    During the period
commencing on the Closing Date and ending on the 180th day following the Closing Date (the “Transfer Restriction Period”), the Notes (or any shares of Common Stock or Conversion Preferred Stock acquired upon conversion of the Notes) shall
not be Transferred. 
  
 (b)    During the Transfer Restriction Period, the
Warrants (or any shares of Common Stock or Conversion Preferred Stock acquired upon exercise of the Warrants) shall not be Transferable. 
  
 (c)    After the expiration of the Transfer Restriction Period, each Purchaser covenants that it shall not Transfer the Notes (or any shares of Common Stock or Conversion Preferred
Stock acquired upon conversion of the Notes) to any Person except pursuant to an effective registration under the Securities Act or in a transaction which, in the opinion of counsel reasonably satisfactory to Parent, qualifies as an exempt
transaction under the Securities Act and the rules and regulations promulgated thereunder. 
  
 (d)    The Notes and the certificates evidencing the shares of Conversion Preferred Stock or Common Stock, as the case may be, issuable upon conversion of the Notes shall bear the following legend reflecting the
foregoing restrictions on the transfer of such securities: 
  
 “THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT OR IN A TRANSACTION
WHICH, IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO EQUINIX, INC., QUALIFIES AS AN EXEMPT TRANSACTION UNDER THE SECURITIES ACT AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER.” 
  

“THE SECURITIES EVIDENCED HEREBY MAY NOT BE TRANSFERRED (AS SUCH TERM IS DEFINED IN THAT SECURITIES PURCHASE AGREEMENT, DATED AS OF OCTOBER 2, 2002 (THE
“PURCHASE AGREEMENT”), BY AND AMONG EQUINIX, INC., A DELAWARE CORPORATION (“PARENT”), THE GUARANTORS THERETO, AND THE PURCHASERS NAMED IN SCHEDULE 1 AND SCHEDULE 2 THERETO)) DURING THE PERIOD BEGINNING ON THE CLOSING DATE AND
CONTINUING TO THE DATE THAT IS 180 DAYS FOLLOWING THE CLOSING DATE (AS SUCH TERM IS DEFINED IN THE AGREEMENT), EXCEPT AS PERMITTED UNDER THE PURCHASE AGREEMENT. A COPY OF THE AGREEMENT HAS BEEN FILED WITH THE SECRETARY OF PARENT AND IS AVAILABLE
UPON REQUEST.” 
  
 Parent shall remove the securities legend from the Notes and the certificates evidencing such shares of Common Stock
and Conversion Preferred Stock as promptly as practicable following the registration of such securities under the Securities Act or such earlier time as such securities are no longer subject to restriction on transfer under the Securities Act. The
Transfer Restriction Period legend shall be removed at the request of a Holder following the lapse of such restriction 

 
 31 

  
 (e)    In addition, the shares of Conversion
Preferred Stock or Common Stock issuable upon conversion of the A-1 Notes shall bear the legend described in Section 1B.04(b) of the Combination Agreement and Section 6.2 of the Governance Agreement. 
  
 (f)    Notwithstanding the restrictions and requirements set forth elsewhere in this Agreement,
Holders shall have the right to Transfer all or a portion of the Securities owned by such Holder, so long as: 
  
 (i)    The Holder shall give prompt notice of such Transfer to Parent and shall provide Parent, at least fifteen days before such Transfer, an executed copy of the agreement pursuant to which such Transfer was
executed and a written opinion of counsel reasonably acceptable to Parent indicating such Transfer will be exempt from registration under the Securities Act; 
  
 (ii)    The transferee makes representations and warranties to Parent substantially identical to those set forth in Section 4 of this
Agreement; and 
  
 (iii)    The transferee agrees to be bound by the terms and
conditions contained in this Agreement and shall be treated as a “Holder” for all purposes hereof. 
  
 9.10    Security; Intercreditor Agreement. 
  
 (a)    The Notes shall constitute senior indebtedness of Parent, secured by Liens junior to the Liens securing Parent’s obligations under the Credit Agreement. The A-1 Notes and the A-2 Notes, if any, shall
be of equal rank and be treated pari passu in all respects except for the security for such Notes. 
  
 (b)    Section 9.10(a) notwithstanding, the A-1 Notes shall be secured by (i) First Priority security interests in all of the A-1 Assets and all after acquired property of the Asian Subsidiaries and (ii) Second
Priority security interests in all of the assets of Parent and each of its Restricted Subsidiaries (except for the Asian Subsidiaries). 
  
 (c)    Section 9.10(a) notwithstanding, the A-2 Notes, if any, shall be secured by Second Priority security interests in all of the assets of Parent and each of its Restricted
Subsidiaries (except for the Asian Subsidiaries) that shall be of pari passu priority with the Liens described in Section 9.10(b)(ii). 
  
 (d)    Except as provided in Section 8(a)(xv), Parent shall not incur, permit or suffer to exist any Lien on the Asian Assets. 
  

10.    
Termination. 
  
 10.1    T
ermination.    This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing: 
  
 (a)    by mutual written consent of Parent and the Requisite Holders; 
  
 (b)    by Parent or the Requisite Holders, in the event that a Governmental Entity shall have issued an order, decree or ruling or taken
any other action (which order, decree or ruling the Parties shall use their reasonable best efforts to lift), which permanently restrains, enjoins or otherwise prohibits the transactions contemplated by this Agreement and which is not subject to
appeal; or 
  
 (c)    by Parent or the Requisite Holders, if the Combination
Agreement has been terminated in accordance with its terms. 
  
 10.2    
Effect of Termination.    If this Agreement is terminated or abandoned pursuant to Section 10.1, written notice thereof shall forthwith be given to each of the Parties and this Agreement shall
terminate and the transactions contemplated hereby shall be abandoned, without further action by Parent or the Purchasers. If this Agreement is terminated as provided herein, no Party shall have any liability or further obligation to any other
Party; provided, however, that no termination of this Agreement pursuant to this Section 10 shall relieve any Party of liability for a grossly negligent or willful and, in either case, material breach of any provision of this Agreement
occurring before such termination. 

 
 32 

  
 11.    
Miscellaneous. 
  
 11.1    
Entire Agreement.    This Agreement, the Parent Disclosure Letter, the Credit Agreement, the other Financing Documents and the Combination Agreement (including the exhibits and schedules hereto and
thereto) constitute the entire agreement and supersede all prior and contemporaneous agreements, negotiations, arrangements and understandings, both written and oral, among the Parties with respect to the subject matter hereof. 

 
 11.2    
Expenses and Indemnities 
  
 (a)    Parent and the
Existing Guarantor agree, jointly and severally, upon consummation of the transactions hereby contemplated, to pay the reasonable legal fees of the Purchasers’ special counsel incurred in connection with the negotiation, preparation and
execution of this Agreement, the other Financing Documents, and the respective Offered Securities being acquired by Purchaser, but in no event more than $125,000 for counsel to the A-2 Purchasers and $75,000 for counsel to the A-1 Purchaser.

  
 (b)    Following the Closing, Parent and each Guarantor, jointly and
severally, agree to pay, and defend and save Purchasers harmless against liability for the payment of, all reasonable actual out-of-pocket expenses (including reasonable attorneys fees), in each case upon the presentation of reasonably detailed
statements, incurred with respect to the enforcement, attempted enforcement, or workout of any provision of this Agreement, the Offered Securities, or any of the other Financing Documents, or any amendments or waivers requested by Parent or any
Guarantor (whether the same become effective) under or in respect of any such agreement or instrument, and all expenses incurred in connection with the preparation of such agreements and instruments and all transfer taxes which may be payable in
respect of the execution and delivery of such agreements or instruments, or the issuance, delivery, or purchase by Purchaser of any Offered Securities, and the reasonable fees and expenses of special counsel to Purchasers retained in connection with
such agreements and instruments, and the transactions hereby and thereby contemplated, including the enforcement of any provision hereof or thereof, and any such amendments or waivers and the costs and expenses of Purchasers incurred in connection
with any aspect of any bankruptcy case of Parent, a Guarantor or any of their respective Subsidiaries, whether voluntary or involuntary, and whether seeking reorganization or liquidation. 
  
 (c)    Unless otherwise specifically provided herein, any and all payments by Parent under this Agreement or under the Notes shall be
made net of any and all present or future taxes, levies, deductions, or withholdings, additions to tax, interest, penalties and all other liabilities with respect thereto, excluding net income, franchise or similar taxes imposed or levied on the
Holder as a result of a present or former connection between the Holder and the jurisdiction of the governmental authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such connection arising
solely from such Holder having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement) (all such taxes, levies, deductions or withholding, etc. other than excluded taxes referred to as
“Taxes”). If any Taxes are required to be withheld or deducted upon conversion of the Notes or, as a result of a change in Law occurring after the date of this Agreement, upon the issuance of any PIK Notes, the immediately preceding
sentence shall be construed to mean that Parent shall issue and transfer the same number of shares of Conversion Preferred Stock or Common Stock or PIK Notes to each Holder as if no such withholding or deduction were required, but subject to the
prior receipt from each Holder of an amount in cash sufficient to allow Parent to satisfy its tax withholding or other obligations with respect thereto, which amount Parent shall pay over to the relevant tax authority or other authority on a timely
basis in accordance with applicable laws. Each Holder shall, severally and not jointly, indemnify Parent for the full amount of any withholding taxes imposed on any payments to such Holder made hereunder or under the Notes (including issuance of
Conversion Preferred Stock or Common Stock upon conversion of the Notes) to the extent paid by Parent and not reimbursed by such Holder and any penalties and interest and reasonable expenses arising therefrom or with respect thereto (but only to the
extent such

 
 33 

	 	
penalties, interest and expenses were incurred due to such Holder’s failure to provide the relevant tax amount in a timely manner). 
 

  
 (d)    Parent and each Guarantor further agree, jointly and severally, to indemnify, defend, and save
harmless each Purchaser and each Holder and each of their respective officers, directors, employees, and agents from and against any and all actions, causes of action, suits, losses, liabilities, and damages, and expenses (including reasonable
attorneys fees and disbursements) in connection therewith (the “Indemnified Liabilities”) incurred by any Purchaser, Holder or any of their respective officers, directors, employees, or agents as a result of, or arising out of, or relating
to any of the transactions contemplated hereby, other than with respect to the Combination Agreement, except for any Indemnified Liabilities arising directly and exclusively on account of the gross negligence or willful misconduct of any Purchaser,
Holder or any of their respective officers, directors, employees, or agents; provided, however, that, if and to the extent such agreement to indemnify may be unenforceable for any reason, Parent and each Guarantor shall make the maximum
contribution to the payment and satisfaction of each of the Indemnified Liabilities that shall be permissible under applicable law. In connection with any matter as to which the Purchaser, any Holder or the other above-specified indemnified parties
are entitled to be indemnified hereunder, the Purchaser or the Holder shall endeavor to give written notice thereof in reasonable detail to Parent as soon as practicable, provided that any failure to give such notice shall not vitiate or void
the indemnities provided for herein except to the extent such failure has prejudiced Parent’s ability to defend against any claim causing Purchaser or Holder to seek indemnity under this Section 11. The obligations of Parent and each Guarantor
under this Section 11.2(d) shall survive the transfer of any Offered Securities and payment of any Note. 
  
 (e)    Section 11.2(d) notwithstanding, with respect to Environmental Claims, Parent and each Guarantor, jointly and severally, agree to defend and indemnify Purchaser and each of its directors, officers,
employees, agents, and affiliates (each such Person being called an “Indemnitee”) against, and agrees to hold each Indemnitee harmless from, any claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses
(including reasonable attorneys fees, charges, disbursements, consultant’s fees, investigation and laboratory fees, response costs, court costs and litigation expenses) of whatever kind or nature which are asserted against them in their
capacities as secured or unsecured creditors of Parent or any of its Subsidiaries arising out of, or in any way relating to, the violation of, noncompliance with or liability under any Environmental Laws applicable to the operations of Parent, any
Guarantor, any of their Subsidiaries or to the their past or presently owned or operated properties, or any orders, requirements, or demands of Governmental Authorities related thereto which are asserted against them in their capacities as secured
or unsecured creditors of Parent or any of its Subsidiaries, except to the extent that any of the foregoing are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from (i) the gross negligence or
willful misconduct of the Indemnitee seeking indemnification therefor, or (ii) the actions or omissions of any Indemnitee at any time after such Indemnitee has assumed operation of or taken title to any of Parent’s or any Guarantor’s
formerly or then currently owned or operated properties. This indemnity shall continue in full force and effect regardless of the termination of this Agreement and the other Financing Documents. The obligations of Parent and each Guarantor under
this Section 11.2(e) shall survive the transfer of any Offered Securities and payment of any Note. 
  
 11.3    
Amendment and Waiver.    Subject to the last sentence of this Section 11.3, any term of this Agreement or the Notes may be amended and the observance of the term of this Agreement or of the Notes may
be waived (either generally or in a particular instance and either retroactively or prospectively) only with the consent of Parent and Requisite Holders provided that, without the prior written consent of the Holder of each note then
outstanding, no such amendment shall (a) change the maturity or the principal of, waive Parent’s obligation to make a Change in Control Offer for, or reduce the rate or change the time of payment of interest on, or change the amount or time of
any payment or prepayment of any principal of, such Note; (b) reduce the percentages referred to in the preceding sentence which are required to consent to any amendment or waiver; or (c) change the percentage of the principal amount of the Notes
the holders of

 
 34 

 
which may declare the Notes to be due and payable as provided in Section 8. No condition in Section 7.1 to a Purchaser’s obligation to perform its obligations at Closing may be waived or
modified without the prior written consent of such Purchaser. Any amendment or waiver effected in accordance with this Section 11.3 shall be binding upon Parent, each Guarantor, each Purchaser and each Holder of any Note then outstanding and each
future Holder of any Note. Parent shall not, and shall not permit any of its Subsidiaries or affiliates to, directly or indirectly, pay or otherwise provide consideration to any Holder of any Note in connection with obtaining the consent of such
Holder to any amendment, waiver, supplement or modification of or under this Agreement or the Notes unless like consideration is provided to all Holders of Notes pro rata in proportion to the respective principal amounts held by such Holders whether
or not they give such consent. 
  
 11.4    
Survival of Representations and Warranties.    All representations and warranties contained in this Agreement or made in writing by Parent, any Guarantor or any Purchaser shall survive the Closing and
the purchase and sale of the Offered Securities, the transfer by any Purchaser of any Offered Securities or portion thereof or interest therein and the payment of any Note, and may be relied upon by Purchaser or any transferee of an Offered Security
or Parent, as applicable, regardless of any investigation made at any time by or on behalf of a Purchaser or any transferee of an Offered Security or Parent, as applicable; provided, however, that any transferee of an Offered Security shall
be bound by all waivers or other actions taken by its transferor prior to the date of such transfer. 
  
 11.5    
Disclosure to Other Persons 
  
 (a)    Parent and
each Guarantor acknowledge that the representative on Parent board of directors (elected pursuant to the Governance Agreement) of any Holder may deliver copies of any financial statements and other documents delivered to such Person, and disclose
any other information disclosed to such Person (other than privileged documents or information that are expressly identified as such), by or on behalf of Parent or any Guarantor to (i) such Holder’s directors, officers, members, partners,
employees, agents, and professional consultants, (ii) any other Holder of any Offered Securities, (iii), subject to the prior written approval of Parent (which shall not be unreasonably withheld, conditioned or delayed), any Person to which such
Holder offers to sell such Offered Securities or any part thereof, so long as such potential purchaser agrees, in writing, to preserve the confidentiality of such information (except that such potential purchaser may disclose such information in
accordance with this Section 11.5); provided, however, that such disclosure shall not be made to any potential purchaser which is known to be a direct competitor, or an affiliate of a direct competitor, of Parent or any of its Subsidiaries
without the prior written consent of Parent, (iv) any federal or state regulatory authority having jurisdiction over such Holder, (v) the National Association of Insurance Commissioners or any similar organization, or (vi) any other Person to which
such delivery or disclosure may be necessary or advisable to avoid material prejudice, (x) in compliance with any law, rule, regulation, or order applicable to such Holder, (y) in response to any subpoena or other legal process, or (z) in connection
with any litigation to which such Holder is a party. Nothing is this Section 11.5 shall be construed to create or give rise to any fiduciary duty on the part of any Purchaser or Holder to Parent or any Subsidiary. 
  
 (b)    Each Purchaser (which term shall, for the purpose of this Section 11.5(b), include each Holder)
agrees to keep confidential any information delivered by Parent hereunder and to use such information solely for the purpose of monitoring its investment in Parent and not otherwise for its benefit or for the benefit of any third party; provided,
however, that subject to the provisos contained in this Section 11.5, nothing herein shall prevent any Purchaser from disclosing such information: (i) to any Purchaser, (ii) to any affiliate of, or investor in, any Purchaser or, any actual or
potential purchaser, participant, assignee, or transferee of any Purchaser’s rights under any Note that agrees to be bound by this Section 11.5, (iii) upon order of any court or administrative agency, (iv) upon the request or demand of any
regulatory agency or authority having jurisdiction over such party, (v) which has been publicly disclosed, (vi) which has been obtained from any Person that is not a Party or an affiliate of any such party, unless such Purchaser knows that such
information is required by such Person to be kept confidential, (vii) in connection with the exercise of any remedy hereunder, (viii) to the

 
 35 

	 	
independent and certified public accountants for any Purchaser, (ix) as otherwise expressly contemplated by this Agreement, (x) to counsel for and other advisors, accountants, and auditors to any
Purchaser, or (xi) as may be required by statute, decision, or judicial or administrative order, rule, or regulation. Each Purchaser hereby acknowledges that it is aware, and that it shall ensure that each of its representatives who receives
confidential information is aware that the United States securities laws prohibit any Person who has received from an issuer material, non-public information from purchasing or selling securities of such issuer or from communicating such information
to any other Person under circumstances in which it is reasonably foreseeable that such Person is likely to purchase or sell such securities. 
 

  
 11.6    
Satisfaction of Closing Conditions.    Parent, each Existing Guarantor and each Purchaser shall use commercially reasonable efforts to satisfy, or cause to be satisfied, the conditions to its and each
Party’s obligations to consummate the transaction contemplated hereby which are set forth in Section 7. 
  
 11.7    
Notices.    All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, telecopied (which is confirmed) or sent by an internationally
recognized overnight courier service, such as Federal Express, to the Parties at the following addresses (or at such other address for a Party as shall be specified by like notice): 
  
 if to any Purchaser, to the address specified on such Purchaser’s signature page to this Agreement: 
  
 with, in the case of the A-1 Purchaser, a copy (which shall not constitute notice) to: 
 Latham & Watkins 
 135 Commonwealth Drive

 Menlo Park, California 94025 
 Attention: Robert A. Koenig 
 Telephone No.: (650) 328-4600 
 Telecopy No.: (650) 463-2600 
  
 with, in the case of
the A-2 Purchasers, if any, a copy (which shall not constitute notice) to: 
  
 Brobeck, Phleger &
Harrison LLP 
 550 South Hope Street, Suite 2100 
 Los Angeles, California 90071 
 Attention: Richard S.O. Chernicoff 
 Telephone No.: (213) 239-1266 
 Telecopy No.:
(213) 745-3345 
  
 if to Parent or any Guarantor: 
  
 Equinix, Inc. 
 2450 Bayshore Parkway 
 Mountain View, California 94043 
 Attention: Chief Financial Officer 
 Telephone No.: (650) 316-6000 
 Telecopy No.: (650) 316-6900 
  
 with a copy (which shall not constitute notice) to: 
  
 Willkie Farr &
Gallagher 
 787 Seventh Avenue 
 New York, New York 10019 
 Attention: Cornelius T. Finnegan III 
 Telephone No.: (212) 728-8000 
 Telecopy No.:
(212) 728-8111 

 
 36 

  
 11.8    
Descriptive Headings.    The descriptive headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect or be used to construe the meaning of this Agreement.

  
 11.9    
Satisfaction Requirement.    If any agreement, certificate, or other writing, or any action taken or to be taken, is by the terms of this Agreement required to be satisfactory to any Party, the
determination of such satisfaction shall be made by such Party in its sole and exclusive judgment exercised in good faith. 
  
 11.10    
Severability.    Any term or provision of this Agreement that is held to be invalid, void or unenforceable shall not affect the validity or enforceability of the remaining terms and provisions of this
Agreement. If any term or provision of this Agreement is invalid, void or unenforceable, the parties agree that an arbitrator shall have the power to and shall, subject to such arbitrator’s discretion, reduce the scope, duration, area or
applicability of the term or provision, to delete specific words or phrases, or to replace any invalid, void or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention
of the invalid or unenforceable term or provision. 
  
 11.11    
Governing Law.    This Agreement and the rights and obligations of the Parties under this Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York
(including Sections 5-1401 and 5-1402 of the General Obligations Law of the State of New York). 
  
 11.12    
Arbitration. 
  
 (a)    All disputes, controversies
or claims (whether in contract, tort or otherwise) arising out of, relating to or otherwise by virtue of, this Agreement, breach of this Agreement or the transactions contemplated by this Agreement shall be finally settled under the Rules of
Arbitration (except as set forth below) of the London Court of International Arbitration (as amended from time to time, the “LCIA Rules”). EACH PARTY ACKNOWLEDGES THAT IT IS WAIVING ANY RIGHTS IT MAY HAVE TO TRIAL BY JURY. 

 
 (b)    The arbitration shall be seated in London, England, in the English language and
shall be the exclusive forum for resolving such disputes, controversies or claims. The arbitrator shall have the power to order hearings and meetings to be held in such place or places as he or she deems in the interests of reducing the total cost
to the parties of the arbitration. 
  
 (c)    The arbitration shall be held in
before a single arbitrator. Each party to the arbitration shall submit a list of three proposed arbitrators, who each meet the criteria set forth in Section 11.11(d) within ten Business Days of service of the request for arbitration on the last
respondent. The LCIA Court (as referred to in the LCIA Rules) shall select from among such nominations, with any person nominated by more than one party to the arbitration being per se the nominee of each party. 
  
 (d)    The arbitrator shall have practiced the field of law that is principally the subject of such
dispute, controversy or claim in the State of New York for at least ten years. The arbitrator may be of the same nationality as any party. The arbitrator shall have the power to order equitable remedies and not just the payment of monies.
Notwithstanding the LCIA Rules, no party shall have the right to seek a court order of interim or conservatory measures, other than a court order confirming and enforcing an arbitral award of interim or conservatory measures. The arbitrator may hear
and rule on dispositive motions as part of the arbitration proceeding (e.g. motions for judgment on the pleadings, summary judgment and partial summary judgment). 
  
 (e)    All timetables and deadlines for the conduct of the arbitration shall be set in accordance with the Federal Rules of Civil
Procedures (and any applicable local rules) as then interpreted and applicable in the Court of Appeals for the Second Circuit and the United States District Court of and for the Southern District of New York. The Arbitrator shall not have the power
to abridge such time requirements. 
  
 (f)    Discovery shall be permitted to the
extent, and under the conditions, then in effect under the Federal Rules of Civil Procedure of the United States as then interpreted and construed by the Court of

 
 37 

	 	
Appeals for the Second Circuit and the United States District Court of and for the Southern District of New York. The arbitrator may appoint an expert only with the consent of all of the parties
to the arbitration. Testimony of witnesses may be challenged to the extent, and under the conditions, then in effect under the Federal Rules of Evidence of the United States as interpreted and construed by the Court of Appeals for the Second Circuit
and the United States District Court of and for the Southern District of New York. 
 

  
 (g)    All deposits required under the LCIA Rules shall be paid equally by all parties to the arbitration. Each party shall to the arbitration shall pay its own costs and expenses (including, but not limited to,
attorney’s fees) in connection with the arbitration. 
  
 (h)    The award
rendered by the arbitrator shall be executory, final and binding on the parties. The award rendered by the arbitrator may be entered into any court having jurisdiction (including, the courts of the State of New York), or application may be made to
such court for judicial acceptance of the award and an order of enforcement, as the case may be. Such court proceeding shall disclose only the minimum amount of information concerning the arbitration as is required to obtain such acceptance or
order. 
  
 (i)    Except as required by law, no Party nor the arbitrator may
disclose the existence, content or results of an arbitration brought pursuant to this Agreement. 
  
 11.13    
Waiver of Jury Trial.    EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE
OTHER FINANCING DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE CREDITOR/DEBTOR RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH
PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATION SHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH SHALL CONTINUE TO RELY ON THIS WAIVER IN ITS
RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS
WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 11.12 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO
ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER FINANCING DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS
A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
  
 11.14    
No Assignment.    This Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and assigns, in particular, shall inure to the benefit
of, and be enforceable by, any transferee of any Offered Security. The rights and obligations of Parent and the Guarantors under this Agreement and the Offered Securities may not be assigned (by operation of law or otherwise) or delegated without
the consent of Requisite Holders. 
  
 11.15    
Counterparts.    This Agreement may be executed in one or more counterparts (whether delivered by facsimile or otherwise), each of which shall be considered one and the same agreement and shall become
effective when one or more counterparts have been signed by each Party and delivered to the other Parties. 

 
 38 

  
 11.16    
Maximum Interest Rate.    No provisions of this Agreement or any Note shall require the payment or the collection of interest in excess of the maximum amount permitted by applicable law.
If any excess of interest in such respect is hereby provided for, or shall be adjudicated to be so provided, in this Agreement or any Note or otherwise in connection with the transactions contemplated hereby and thereby, the provisions of this
Section shall govern and prevail and Parent shall not be obligated to pay the excess amount of such interest or any other excess sum paid for the use, forbearance, or detention of sums loaned pursuant hereto. In the event any Holder ever receives,
collects, or applies as interest any such sum, such amount which would be in excess of the maximum amount permitted by applicable law shall be applied as a payment and reduction of the principal amount of Notes has been paid in full, any remaining
excess shall forthwith be paid to Parent. In determining whether or not the interest paid or payable exceeds the maximum rate, Parent and the Holders shall, to the extent permitted by applicable law, (a) characterize any non- principal payment as an
expense, fee, or premium rather than as interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the entire contemplated
term of the indebtedness evidenced by the Notes so that interest for the entire term does not exceed the maximum rate. 

 
 39 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and delivered by their respective duly
authorized officers as of the date first written above. 
  
 
	 EQUINIX, Inc.
 
	 
	 By:
 	  	     /s/    PETER F. VAN CAMP
 

	  	  	 Name:    Peter F. Van Camp
 Title:    Chief
Executive Officer
 

 

  
 
	 PURCHASERS:
 	 	 STT COMMUNICATIONS LTD
 
	 
	  	 	 By:
 	  	     /S/    JEAN MANDEVILLE
 

	  	 	  	  	 Name:    Jean Mandeville
 Title:    Chief
Financial Officer
 

 
  
  

 Schedule 1 
  
 A-1 Purchaser 
  
 
	 Purchaser
 
	    	 Aggregate Principal Amount of A-1 Notes
 
	    	 Percentage of Reorganized Capitalization Represented by Preferred Warrants1
 
	  	 Purchase Price
 

	 STT Communications
 	    	 $
 	 30,000,000
 	    	                 %
 	  	 $
 	 40,000,000
 
	  	    	  	  	    	  	  	  	  

 
 

	1
	 
	To be determined in accordance with Section 2.3(a). 
 

 Schedule 2 
  
 A-2 Purchasers 
  
 
	 Purchaser
 
	  	 Aggregate Principal Amount of A-2 Notes
 
	  	 Percentage of Reorganized Capitalization Represented by Common Warrant1
 
	  	 Purchase Price
 

	  	  	  	  	                     %
 	  	 $
 	                     
 
	  	  	 
	  	 
	  	 
	 

	  	  	  	  	     %
 	  	 $
 	  
 
	  	  	 
	  	 
	  	 
	 

	  	  	  	  	     %
 	  	 $
 	  
 
	  	  	 
	  	 
	  	 
	 

	  	  	  	  	     %
 	  	 $
 	  
 
	  	  	 
	  	 
	  	 
	 

	 Total Series A-2
 	  	  	  	     %
 	  	 $
 	  
 
	  	  	 
	  	 
	  	 
	 

 
 

	1
	 
	To be determined in accordance with Section 2.3(a).1999 Employee Stock Purchase Plan

  
 EXHIBIT 10.2 
  
 PALM, INC. 
  
 1999 EMPLOYEE STOCK PURCHASE
PLAN 
  
 (As Amended and Restated Effective as of October 1, 2002) 
  
 The following constitute the provisions of the Palm, Inc. 1999 Employee Stock Purchase Plan, as amended and restated effective as of
October 1, 2002: 
  
 1.    Purpose.    The purpose of the Plan is to
provide Employees with an opportunity to purchase Common Stock through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code. The
provisions of the Plan, accordingly, shall be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code. 
  
 2.    Definitions. 
  
 (a)    “Administrator” shall mean the Board or any committee thereof designated by the Board in accordance with Section 14. 
  
 (b)    “Board” shall mean the Board of Directors of the Company. 
  
 (c)    “Code” shall mean the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein shall be a
reference to any successor or amended section of the Code. 
  
 (d)    “Common
Stock” shall mean the common stock of the Company. 
  
 (e)    “Company”
shall mean Palm, Inc., a Delaware corporation. 
  
 (f)    “Compensation” shall
mean an Employee’s base straight time gross earnings and commissions, but shall exclude payments for overtime, shift premium, incentive compensation, incentive payments, bonuses and other compensation. 
  
 (g)    “Designated Subsidiary” shall mean any Subsidiary that has been designated by the
Administrator from time to time in its sole discretion as eligible to participate in the Plan with respect to its Employees. 
  
 (h)    “Employee” shall mean any individual who is an employee of an Employer for tax purposes and is customarily employed for at least twenty (20) hours per week and more than five (5) months in
any calendar year by the Employer. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Employer. Where the period of leave
exceeds ninety (90) days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on the 91st day of such leave. 
  
 (i)    “Employer” shall mean any one or all of the Company and its Designated Subsidiaries.

  
 (j)    “Enrollment Date” shall mean the
first Trading Day of each Offering Period. 
  
 (k)    “Exercise Date” shall mean
the last Trading Day of each Purchase Period. 
  
 (l)    “Fair Market Value”
shall mean, as of any date, the value of Common Stock determined as follows: 
  
 (i)    If the
Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales
price for the Common Stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

  
 (ii)    If the Common Stock is regularly quoted by a recognized securities dealer but
selling prices are not reported, its Fair Market Value shall be the mean of the closing bid and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator
deems reliable; 
  
 (iii)    In the absence of an established market for the Common Stock, the
Fair Market Value thereof shall be determined in good faith by the Administrator; or 
  
 (iv)    For purposes of the Enrollment Date of the first Offering Period under the Plan, the Fair Market Value shall be the initial price to the public as set forth in the final prospectus included with the
registration statement on Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Company’s Common Stock (the “Registration Statement”). 
  

(m)    “Offering Periods” shall mean the periods of approximately twenty-four (24) months during which an option granted pursuant
to the Plan may be exercised, commencing on the first Trading Day on or after April 1 and October 1 of each year and terminating on the last Trading Day in the periods ending twenty-four (24) months later; provided, however, that the first Offering
Period under the Plan shall commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company’s Registration Statement effective and ending on the last Trading Day on or before March
31, 2002. Notwithstanding the foregoing, if a new Offering Period is established in accordance with Section 24, the new Offering Period shall commence on the last Exercise Date of the immediately preceding Offering Period following the
exercise of options on such Exercise Date. The duration and timing of Offering Periods may be changed by the Administrator pursuant to Section 4. 
  
 (n)    “Parent” shall mean a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
  
 (o)    “Plan” shall mean this 1999 Employee Stock Purchase Plan, as amended from time to time.

  
 (p)    “Purchase Period” shall mean the approximately six (6) month period
commencing after one Exercise Date and ending with the next Exercise Date, except that the first Purchase Period of any Offering Period shall commence on the Enrollment Date and end with the next Exercise Date. 

 
 -2- 

  
 (q)    “Purchase Price” shall mean
eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower; provided however, that the Purchase Price may be adjusted by the Administrator pursuant to Section 20.

  
 (r)    “Reserves” shall mean the number of shares of Common Stock covered by
each option under the Plan which have not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under the Plan but not yet placed under option. 
  
 (s)    “Subsidiary” shall mean a corporation, domestic or foreign, of which not less than 50% of the voting shares are held by the
Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. 
  
 (t)    “Trading Day” shall mean a day on which U.S. national stock exchanges and the Nasdaq System are open for trading. 
  
 3.    Eligibility. 
  
 (a)    Any person who is an Employee as of the Enrollment Date of a given Offering Period shall be eligible to participate in such Offering Period under the Plan, subject to the requirements of Section 5.

  
 (b)    Any provisions of the Plan to the contrary notwithstanding, no Employee shall be
granted an option under the Plan (i) to the extent that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company
or any Parent or Subsidiary of the Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or any Parent or
Subsidiary of the Company, or (ii) to the extent that his or her rights to purchase stock under all employee stock purchase plans (as defined in Section 423 of the Code) of the Company or any Parent or Subsidiary of the Company accrues at a rate
which exceeds twenty-five thousand dollars ($25,000) worth of stock (determined at the Fair Market Value of the stock at the time such option is granted) for each calendar year in which such option is outstanding at any time. 

 
 4.    Offering Periods.    The Plan shall be implemented by consecutive,
overlapping Offering Periods, with a new Offering Period commencing on the first Trading Day on or after April 1 and October 1 of each year, or on such other date as the Administrator shall determine, and continuing thereafter until terminated in
accordance with Section 20; provided, however, that the first Offering Period under the Plan shall commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company’s Registration
Statement effective and ending on the last Trading Day on or before March 31, 2002. The Administrator shall have the power to change the duration of Offering Periods (including the commencement dates thereof) with respect to future offerings without
shareholder approval if such change is announced at least five (5) days prior to the scheduled beginning of the first Offering Period to be affected thereafter. 

 
 -3- 

  
 5.    Participation.    An
Employee who is eligible to participate in the Plan pursuant to Section 3 may become a participant in the Plan by (i) submitting to the Company’s Stock Administration Department (or its designee), on or before a date prescribed by the
Administrator prior to an applicable Enrollment Date, a properly completed subscription agreement authorizing payroll deductions in the form provided by the Administrator for such purpose, or (ii) following an electronic or other enrollment
procedure prescribed by the Administrator. 
  
 6.    Payroll Deductions. 

 
 (a)    At the time a participant enrolls in the Plan pursuant to Section 5, he or she shall elect to have
payroll deductions made on each payday during the Offering Period in an amount not exceeding ten percent (10%) of the Compensation which he or she receives on each such payday. However, if the percentage of a participant’s Compensation deducted
for purposes of this Plan and all other plans of the Company or any Parent or Subsidiary of the Company, that are intended to qualify as “employee stock purchase plans” under Section 423 of the Code exceeds ten percent (10%), then the
percentage of Compensation deducted for purposes of this Plan shall be reduced such that the participant’s percentage of Compensation deducted under all such plans that qualify under Section 423 of the Code does not exceed ten percent (10%) of
the Compensation which the participant receives on each pay day during the Offering Period. 
  
 (b)    Payroll deductions authorized by a participant shall commence on the first payday following the Enrollment Date and shall end on the last payday in the Offering Period to which such authorization is
applicable, unless sooner terminated by the participant as provided in Section 10. 
  
 (c)    All
payroll deductions made for a participant shall be credited to his or her account under the Plan and shall be withheld in whole percentages only. A participant may not make any additional payments into such account. 
  
 (d)    A participant may discontinue his or her participation in the Plan as provided in Section 10, or may change the
rate of his or her payroll deductions during the Offering Period by (i) properly completing and submitting to the Company’s Stock Administration Department (or its designee), on or before a date prescribed by the Administrator prior to an
applicable Exercise Date, a new subscription agreement authorizing the change in payroll deduction rate in the form provided by the Administrator for such purpose, or (ii) following an electronic or other procedure prescribed by the Administrator.
If a participant has not followed such procedures to change the rate of payroll deductions, the rate of his or her payroll deductions shall continue at the originally elected rate throughout the Offering Period and future Offering Periods (unless
terminated as provided in Section 10). The Administrator may, in its sole discretion, limit the nature and/or number of payroll deduction rate changes that may be made by participants during any Offering Period. Any change in payroll deduction rate
made pursuant to this Section 6(d) shall be effective as of the beginning of the calendar month immediately following the date on which the change is made by the participant. 
  
 (e)    Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b), a participant’s
payroll deductions may be decreased to zero percent (0%) at any time during a Purchase Period. Payroll deductions shall recommence at the rate originally elected by the participant effective as of the beginning of the first Purchase Period which is
scheduled to end in the following calendar year, unless terminated by the participant as provided in Section 10. 

 
 -4- 

  
 (f)    At the time the option is exercised, in whole or in
part, or at the time some or all of the Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the
exercise of the option or the disposition of the Common Stock. At any time, the Company may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet applicable withholding
obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by the participant. 
  
 7.    Grant of Option.    On the Enrollment Date of each Offering Period, each Employee participating in such Offering Period
shall be granted an option to purchase on each Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of shares of Common Stock determined by dividing such participant’s payroll deductions accumulated prior
to such Exercise Date and retained in the participant’s account as of the Exercise Date by the applicable Purchase Price; provided that in no event shall a participant be permitted to purchase during each Purchase Period more than 10,000 shares
of Common Stock (subject to any adjustment pursuant to Section 19), and provided further that such purchase shall be subject to the limitations set forth in Sections 3(b) and 13. The Administrator may, for future Offering Periods, increase or
decrease, in its absolute discretion, the maximum number of shares of Common Stock that an Employee may purchase during each Purchase Period of such Offering Period. Exercise of the option shall occur as provided in Section 8, unless the participant
has withdrawn pursuant to Section 10. The option shall expire on the last day of the Offering Period. 
  
 8.    Exercise of Option. 
  
 (a)    Unless a
participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of shares of Common Stock shall be exercised automatically on the Exercise Date, and the maximum number of full shares subject to the option shall be
purchased for such participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account. No fractional shares of Common Stock shall be purchased; any payroll deductions accumulated in a participant’s
account which are not sufficient to purchase a full share shall be retained in the participant’s account for the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the participant as provided in Section 10. Any
other monies left over in a participant’s account after the Exercise Date shall be returned to the participant. During a participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her.

  
 (b)    If the Administrator determines that, on a given Exercise Date, the number of shares
of Common Stock with respect to which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Enrollment Date of the applicable Offering Period, or (ii) the number of shares
of Common Stock available for sale under the Plan on such Exercise Date, the Administrator may in its sole discretion (x) provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such
Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise
Date, and continue all Offering Periods then in effect, or (y) provide that the Company shall make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a
manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and terminate any or all Offering Periods then in effect
pursuant to Section 20. The Company may make pro rata allocation of the shares of Common Stock available on the Enrollment Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional
shares of Common Stock for issuance under the Plan by the Company’s shareholders subsequent to such Enrollment Date. 

 
 -5- 

  
 9.    Delivery.    As promptly as
practicable after each Exercise Date on which a purchase of shares of Common Stock occurs, the Company shall arrange the delivery to each participant, as appropriate, of a record of the shares purchased. The Administrator may permit or require that
such shares be deposited directly with a broker designated by the Administrator or to a designated agent of the Company, and the Administrator may utilize electronic or other automated methods of share transfer. No participant shall have any voting,
dividend, or other shareholder rights with respect to shares of Common Stock subject to any option granted under the Plan until such shares have been purchased and delivered to the participant as provided in this Section 9. 
  
 10.    Withdrawal. 
  
 (a)    Under procedures established by the Administrator, a participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used
to exercise his or her option under the Plan by submitting to the Company’s Stock Administration Department (or its designee) a notice of withdrawal in the form and manner prescribed by the Administrator for such purpose. Unless otherwise
determined by the Administrator on a uniform and non-discriminatory basis, any election to withdraw from an Offering Period will be effective only with respect to Exercise Dates that are at least five (5) business days after the properly completed
election is received by the Company’s Stock Administration Department. All of the participant’s payroll deductions credited to his or her account shall be paid to such participant as promptly as practicable after the effective date of his
or her withdrawal and such participant’s option for the Offering Period shall be automatically terminated, and no further payroll deductions for the purchase of shares shall be made for such Offering Period. Once a participant has withdrawn
from an Offering Period, the participant may not re-enroll in the same Offering Period. Moreover, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the participant re-enrolls in the Plan in accordance with
the provisions of Section 5. 
  
 (b)    A participant’s withdrawal from an Offering Period
shall not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the termination of the Offering Period from which the
participant withdraws. 
  
 11.    Termination of Employment.    Upon a
participant’s ceasing to be an Employee for any reason, he or she shall be deemed to have elected to withdraw from the Plan and the payroll deductions credited to such participant’s account during the Offering Period but not yet used to
exercise the option shall be returned to such participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15, and such participant’s option shall be automatically terminated. The preceding sentence
notwithstanding, a participant who receives payment in lieu of notice of termination of employment shall be treated as continuing to be an Employee for the participant’s customary number of hours per week of employment during the period in
which the participant is subject to such payment in lieu of notice; provided, however, that in no event shall the participant’s option be exercisable more than three (3) months after the date of his or her termination of employment.

  
 12.    Interest.    No interest shall accrue on the payroll
deductions of a participant in the Plan. 

 
 -6- 

  
 13.    Stock. 
  
 (a)    Subject to adjustment upon changes in capitalization of the Company as provided in Section 19, the maximum
number of shares of Common Stock which shall be made available for sale under the Plan shall be 5,000,000 shares plus an annual increase to be added on the first day of the Company’s fiscal year, beginning in 2001, equal to the lesser of (i)
10,000,000 shares, (ii) 2% of the outstanding shares of Common Stock on such date, or (iii) a lesser amount determined by the Board. 
  
 (b)    Shares of Common Stock to be delivered to a participant under the Plan shall be registered in the name of the participant or in the name of the participant and his or her spouse. 

 
 14.    Administration.    The Plan shall be administered by the Board or a
committee of members of the Board who shall be appointed from time to time by, and shall serve at the pleasure of, the Board. The Administrator shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the
Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan. The Administrator, in its sole discretion and on such terms and conditions as it may provide, may delegate to one or more individuals all or any part of its
authority and powers under the Plan. Every finding, decision and determination made by the Administrator shall, to the full extent permitted by law, be final and binding upon all parties. 
  
 15.    Designation of Beneficiary. 
  
 (a)    A participant may designate a beneficiary who is to receive any shares of Common Stock and cash, if any, from the participant’s account under the Plan in the event of such participant’s
death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such participant of such shares and cash. In addition, a participant may designate a beneficiary who is to receive any cash from the participant’s
account under the Plan in the event of such participant’s death prior to exercise of the option. If a participant is married and the designated beneficiary is not the spouse, spousal consent shall be required for such designation to be
effective. 
  
 (b)    Such designation of beneficiary may be changed by the participant at any
time. In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such shares and/or cash to the executor or
administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more
dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
  
 (c)    All beneficiary designations under this Section 15 shall be made in such form and manner as the Administrator may prescribe from time to time.

  
 16.    Transferability.    Neither payroll deductions credited to
a participant’s account nor any rights with regard to the exercise of an option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 15) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw from an Offering
Period in accordance with Section 10. 
  
 17.    Use of Funds.    All
payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions. Until shares of Common Stock are issued under the
Plan, a participant shall only have the rights of an unsecured creditor with respect to such shares. 

 
 -7- 

  
 18.    Reports.    Individual
accounts shall be maintained for each participant in the Plan. Statements of account shall be given to participating Employees at least annually, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of
shares of Common Stock purchased and the remaining cash balance, if any. 
  
 19.    Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset Sale. 
  
 (a)    Changes in Capitalization.    Subject to any required action by the shareholders of the Company, the Reserves, the number of shares of Common Stock
that may be added annually to the shares reserved under the Plan (pursuant to Section 13(a)(i)), the maximum number of shares of Common Stock each participant may purchase each Purchase Period (pursuant to Section 7), as well as the Purchase Price
per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised, shall be proportionately adjusted for any spin-off or increase or decrease in the number of issued shares of Common Stock
resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of shares of Common Stock effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose determination in that
respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or Purchase Price of shares of Common Stock subject to an option. 
  
 (b)    Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, the Offering Period then in progress shall be shortened by setting a new
Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the consummation of such proposed dissolution or liquidation, unless provided otherwise by the Board. The New Exercise Date shall be before the date of the
Company’s proposed dissolution or liquidation. The Board shall notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the
New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10. 
  
 (c)    Merger or Asset Sale.    In the event of a proposed sale of all or substantially all
of the assets of the Company, or the merger of the Company with or into another corporation, each outstanding option shall be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor
corporation. In the event that the successor corporation refuses to assume or substitute for the option, any Purchase Periods then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”) and any Offering
Periods then in progress shall end on the New Exercise Date. The New Exercise Date shall be before the date of the Company’s proposed sale or merger. The Board shall notify each participant in writing, at least ten (10) business days prior to
the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10. 

 
 -8- 

  
 20.    Amendment or Termination. 

 
 (a)    The Board may at any time and for any reason terminate or amend the Plan. Except as provided in
Section 19, no such termination can affect options previously granted under the Plan, provided that an Offering Period may be terminated by the Board on any Exercise Date if the Board determines that the termination of the Offering Period or the
Plan is in the best interests of the Company and its shareholders. Except as provided in Section 19 and this Section 20, no amendment may make any change in any option theretofore granted which adversely affects the rights of any participant. To the
extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain shareholder approval in such a manner and to such a degree as
required. 
  
 (b)      Without shareholder consent and without regard to whether any
participant rights may be considered to have been “adversely affected,” the Administrator shall be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period,
establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s
processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly
correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Administrator determines in its sole discretion advisable which are consistent with the Plan. 

 
 (c)    In the event the Board determines that the ongoing operation of the Plan may result in unfavorable
financial accounting consequences, the Board may, in its discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to: 
  
 (i)    altering the Purchase Price for any Offering Period including an Offering Period underway at the time of the
change in Purchase Price; 
  
 (ii)    shortening any Offering Period so that Offering Period
ends on a new Exercise Date, including an Offering Period underway at the time of the Board action; and 
  
 (iii)    allocating shares. 
  
 Such modifications or amendments shall not require stockholder approval
or the consent of any Plan participants. 
  
 21.    Notices.    All
notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the
Company for the receipt thereof. 
  
 22.    Conditions Upon Issuance of Shares.
    hares of Common Stock shall not be issued with respect to an option under the Plan unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions
of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon
which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

 
 -9- 

  
 As a condition to the exercise of an option, the Company may require the person
exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the
Company, such a representation is required by any of the aforementioned applicable provisions of law. 
  
 23.    Term of Plan.    The Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval by the shareholders of the Company. It shall continue in
effect for a term of ten (10) years unless sooner terminated under Section 20. 
  
 24.    No
Enlargement of Employee Rights.    Nothing contained in the Plan shall be deemed to give any Employee the right to be retained in the employ of any Employer or to interfere with the right of the Employer to discharge any
Employee at any time. 
  
 25.    Automatic Transfer to Low Price Offering
Period.    To the extent permitted by any applicable laws, regulations, or stock exchange rules if the Fair Market Value of the Common Stock on any Exercise Date in an Offering Period is lower than the Fair Market Value of
the Common Stock on the Enrollment Date of such Offering Period, then all participants in such Offering Period shall be automatically withdrawn from such Offering Period immediately after the exercise of their option on such Exercise Date and
automatically re-enrolled in the immediately following Offering Period. The new Offering Period shall commence on the last Exercise Date of the immediately preceding Offering Period after all options have been exercised on such Exercise Date.

  

 
 -10-

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