Document:

Exhibit 4.2

 

Execution Version

 

HILLENBRAND, INC.,

 

AS ISSUER,

 

THE GUARANTORS (AS DEFINED HEREIN)

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

 

AS TRUSTEE

 

 

 

SUPPLEMENTAL INDENTURE No. 3

 

Dated as of September 25, 2019

 

to

 

INDENTURE

 

Dated as of July 9, 2010

 

among

 

HILLENBRAND, INC.,

 

AS ISSUER

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

 

AS TRUSTEE

 

 

 

$375,000,000

 

4.500% Notes due 2026

 

     

     

    

 

TABLE
OF CONTENTS

 

Page

 

	ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE	1
	 	 
	SECTION 1.1 Definitions	1
	SECTION 1.2 Incorporation by Reference of TIA	6
	SECTION 1.3 Rules of Construction	6
	 	 
	ARTICLE II THE NOTES	6
	 	 
	SECTION 2.1 Creation of Series of Securities	6
	SECTION 2.2 Terms of the Notes	7
	SECTION 2.3 Interest Rate Adjustment	8
	SECTION 2.4 Transfer and Exchange	9
	SECTION 2.5 Application of Supplemental Indenture	9
	SECTION 2.6 Effect of Supplemental Indenture	9
	 	 
	ARTICLE III REDEMPTION AND REPURCHASE AT THE OPTION OF HOLDERS	10
	 	 
	SECTION 3.1 Special Mandatory Redemption	10
	SECTION 3.2 Optional Redemption	10
	SECTION 3.3 Repurchase at the Option of Holders—Change of Control Triggering Event	11
	 	 
	ARTICLE IV COVENANTS	12
	 	 
	SECTION 4.1 Limitation on Secured Debt	12
	SECTION 4.2 Limitation on Sale and Leaseback Transactions	13
	SECTION 4.3 Reports	13
	SECTION 4.4 Additional Subsidiary Guarantees	14
	 	 
	ARTICLE V DEFAULTS AND REMEDIES	14
	 	 
	SECTION 5.1 Events of Default	14
	SECTION 5.2 Remedies	14
	 	 
	ARTICLE VI SUPPLEMENTAL INDENTURES	15
	 	 
	SECTION 6.1 Without Consent of Holders	15
	 	 
	ARTICLE VII SATISFACTION AND DISCHARGE	16
	 	 
	SECTION 7.1 Amendment to Base Indenture	16
	 	 
	ARTICLE VIII GUARANTEES	16
	 	 
	SECTION 8.1 Guarantees	16
	SECTION 8.2 Subrogation	17
	SECTION 8.3 Release of Guarantees	17
	SECTION 8.4 Limitation and Effectiveness of Guarantees	18
	SECTION 8.5 Notation not Required	18

 

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	ARTICLE IX METHODS OF RECEIVING PAYMENTS ON THE NOTES	18
	 	 
	SECTION 9.1 Methods of Receiving Payments on the Notes	18
	 	 
	ARTICLE X MISCELLANEOUS	18
	 	 
	SECTION 10.1 Term Defined	18
	SECTION 10.2 Indenture	18
	SECTION 10.3 Governing Law	18
	SECTION 10.4 Successors	18
	SECTION 10.5 Multiple Counterparts	18
	SECTION 10.6 Effectiveness	18
	SECTION 10.7 Trustee Disclaimer	18

 

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THIRD SUPPLEMENTAL INDENTURE (this “Supplemental
Indenture”), dated as of September 25, 2019, by and among Hillenbrand, Inc., an Indiana corporation (the “Company”),
the Guarantors (as defined herein) party hereto, and U.S. Bank National Association, as trustee (the “Trustee”),
to the hereafter defined Base Indenture.

 

WHEREAS, the Company and the Trustee executed
and delivered an Indenture, dated as of July 9, 2010 (the “Base Indenture”),a supplemental indenture, dated
as of January 10, 2013 (the “First Supplemental Indenture”), and a second supplemental indenture, dated as of
April 15, 2016 (the “Second Supplemental Indenture” and, together with the Base Indenture, the First Supplemental
Indenture and this Supplemental Indenture, the “Indenture”), to provide for the issuance by the Company from
time to time of Securities to be issued in one or more series as provided in the Base Indenture;

 

WHEREAS, Article 9 of the Base Indenture
provides, among other things, that the Company and the Trustee may enter into a supplemental indenture to the Base Indenture for,
among other things, the purpose of establishing the designation, form, terms and conditions of Securities as permitted by Article
9 of the Base Indenture;

 

WHEREAS, on the date hereof the Company
desires to establish a new series of Securities, to be designated as the Company’s 4.500% Senior Notes due 2026 (the “Notes”)
pursuant to the Indenture, which Notes shall be senior unsecured obligations of the Company in an initial aggregate principal amount
of $375,000,000;

 

WHEREAS, the Company has delivered to the
Trustee an Opinion of Counsel pursuant to Sections 903 of the Base Indenture to the effect that the execution and delivery of this
Supplemental Indenture is authorized or permitted under the Base Indenture and that all conditions precedent provided for in the
Base Indenture to the execution and delivery of this Supplemental Indenture to be complied with by the Company have been complied
with;

 

WHEREAS, the Company has requested that
the Trustee execute and deliver this Supplemental Indenture;

 

WHEREAS, pursuant to Section 901 of the
Base Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture without the consent of any Holders
of the Notes; and

 

WHEREAS, all the conditions and requirements
necessary to make this Supplemental Indenture a valid, binding and legal instrument in accordance with its terms have been performed
and fulfilled by the parties hereto and the execution and delivery thereof have been in all respects duly authorized by the parties
hereto.

 

NOW, THEREFORE, in consideration of the
above premises, each party agrees, for the benefit of the others and for the equal and ratable benefit of the Holders of the Notes,
as follows:

 

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION 1.1 Definitions. For the purpose
of this Supplemental Indenture, all capitalized terms used herein, unless otherwise defined herein, shall have the meanings assigned
to them in the Base Indenture.

 

“Attributable Debt” means,
with regard to a sale and leaseback arrangement of a Principal Property, the present value of the total net amount of rent payments
to be made under the lease during its remaining term (excluding permitted extensions), discounted at the rate of interest set forth
or implicit in the terms of the lease, compounded semi-annually. The calculation of the present value of the total net amount of
rent payments is subject to adjustments to be specified in the indenture.

 

“Change of Control” means
the occurrence of any of the following after the Issue Date of the Notes:

 

(1)       the
direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one
or a series of related transactions, of all or substantially all of the assets of the Company and its Subsidiaries, taken as a
whole, to any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act) other
than to the Company or one of its Subsidiaries;

 

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(2)       the
consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person”
or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act) becomes the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of the Company’s Voting Stock representing
more than 50% of the voting power of the Company’s outstanding Voting Stock;

 

(3)       the
Company consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, the Company,
in any such event pursuant to a transaction in which any of the Company’s outstanding Voting Stock or Voting Stock of such
other person is converted into or exchanged for cash, securities or other property, other than any such transaction where the Company’s
Voting Stock outstanding immediately prior to such transaction constitutes, or is converted into or exchanged for, Voting Stock
representing more than 50% of the voting power of the Voting Stock of the surviving person immediately after giving effect to such
transaction; or

 

(4)       the adoption of a plan relating
to the Company’s liquidation or dissolution.

 

Notwithstanding
clauses (1) through (4) above, the transaction will not be deemed to involve a Change of Control if (a) the Company becomes a direct
or indirect wholly-owned subsidiary of a holding company and (b)(i) the direct or indirect holders of the Company’s Voting
Stock immediately prior to such transaction hold at least a majority of such holding company’s Voting Stock immediately following
such transaction and (ii) immediately following such transaction no “person” or “group” (as defined in
clause (1) above), other than a holding company satisfying the requirements of this sentence, is the beneficial owner, directly
or indirectly, of more than 50% of the Voting Stock of such holding company (measured by voting power rather than number of shares).

 

Notwithstanding
the foregoing clauses or any provision of the Exchange Act, a “person” or “group” (as defined in clause
(1) above) shall not be deemed to beneficially own Voting Stock subject to a stock or asset purchase agreement, merger agreement,
option agreement, warrant agreement or similar agreement (or voting, support, option or similar agreement related thereto) until
the consummation of the acquisition of the Voting Stock in connection with the transactions contemplated by such agreement.

 

“Change of Control Offer”
has the meaning specified in Section 3.3.

 

“Change of Control Triggering Event”
means the occurrence of a Change of Control and a Ratings Event.

 

“Company” has the meaning
set forth in the preamble hereto until a successor replaces it in accordance with the applicable provisions of the Indenture and,
thereafter, means the successor thereto.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by an Independent Investment Banker as having a maturity date comparable to
the remaining term of the Notes (as measured from the date of redemption and assuming for this purpose that the Notes matured on
the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing
new issues of corporate debt securities of comparable maturity to the remaining term of the Notes.

 

“Comparable Treasury Price”
means, with respect to any redemption date, (i) the average of the Reference Treasury Dealer Quotations for such redemption
date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (ii) if the Independent Investment
Banker obtains fewer than five such Reference Treasury Dealer Quotations, the average of all Treasury Dealer Quotations obtained.

 

“Consolidated Net Tangible Assets”
means the aggregate amount of assets (less applicable reserves and other properly deductible items) after deducting therefrom (a)
all current liabilities (excluding any indebtedness for money borrowed having a maturity of less than 12 months from the date of
the Company’s most recent consolidated balance sheet but which by its terms is renewable or extendable beyond 12 months from
such date at the option of the borrower) and (b) all goodwill, trade names, patents, unamortized debt discount and expense and
any other like intangibles, all as set forth on the Company’s most recent consolidated balance sheet and computed in accordance
with generally accepted accounting principles (“GAAP”).

 

“Credit Agreement”
means the Credit Agreement, dated as of August 28, 2019, by and among the Company and certain of its affiliates, the lenders party
thereto and JPMorgan Chase Bank, N.A., as administrative agent, as amended, amended and restated, refinanced or replaced from time
to time.

 

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

 

“Funded Debt” means
debt that is not junior in right of payment to the debt securities and that matures at or is extendible or renewable at the option
of the obligor to a date more than 12 months after the date of the creation of such debt.

 

“Global Notes” means
the Notes in global form and registered in the name of the Depository or its nominee that are in the form of Exhibit A.

 

“Guarantor” means each
Subsidiary that provides a guarantee of the Notes.

 

“Independent Investment Banker”
means one of the Reference Treasury Dealers appointed by the Company.

 

“Interest Payment
Date” means, with respect to the payment of interest on the Notes, March 15 and September 15 of each year.

 

“Interest Rate
Rating Agency” means S&P or Moody’s, and together, the “Interest Rate Rating Agencies.”

 

“Investment Grade”
means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating category of Moody’s) and
a rating of BBB-or better by S&P (or its equivalent under any successor rating category of S&P), and the equivalent investment
grade credit rating from any replacement rating agency or rating agencies selected by the Company under the circumstances permitting
the Company to select a replacement agency and in the manner for selecting a replacement agency, in each case as set forth in the
definition of “Rating Agency.”

 

“Issue Date” means
September 25, 2019.

 

“Merger” means the
Company’s proposed acquisition of Milacron Holdings Corp.

 

“Merger Agreement”
means the Company’s Agreement and Plan of Merger, dated as of July 12, 2019, among the Company, Milacron Holdings Corp. and
Bengal Delaware Holding Corporation, a Delaware corporation and the Company’s wholly owned subsidiary.

 

“Moody’s” means
Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation, and its successors.

 

“Par Call Date”
means July 15, 2026.

 

“Permitted Liens”
means:

 

(1)       Liens
on any Principal Property (including capital stock of any Subsidiary owning such Principal Property) acquired, constructed, improved,
altered, expanded or repaired by the Company or any Subsidiary after the date of this Indenture which liens are created or assumed
contemporaneously with such acquisition, construction, improvement, alteration, expansion or repair, or within 270 days before
or after such acquisition (including, without limitation, acquisition through merger or consolidation), construction, improvement,
alteration, expansion or repair (or the completion of such construction, alteration, improvement or repair or commencement of commercial
operation of such Principal Property, whichever is later), and which are created to secure or provide for the payment of all or
any part of the cost of such acquisition, construction, improvement, alteration, expansion or repair;

 

(2)       Liens
on property, assets or shares of capital stock existing at the time of the acquisition of such property, assets or shares of capital
stock, including liens on property, assets or shares of capital stock of an entity existing at the time such entity becomes a Subsidiary;

 

(3)       Liens
existing on the Issue Date;

 

(4)       Liens
in favor of the Company or any Subsidiary;

 

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(5)       Liens
in favor of the United States of America or any State, or in favor of any department, agency or instrumentality or political division,
or in favor of any other country, or any political subdivision of a foreign country, the purpose of which is to secure partial,
progress, advance or other payments, or other obligations, pursuant to any contract or statute, or to secure debts incurred in
financing the acquisition or construction of or improvements or alterations to property subject thereto;

 

(6)       Liens
imposed by law, for example mechanics’, workmen’s, repairmen’s, or other similar liens arising in the ordinary
course of business;

 

(7)       pledges
or deposits under workmen’s compensation or similar legislation or in certain other circumstances;

 

(8)       Liens
in connection with legal proceedings;

 

(9)        Liens
resulting from the deposit of funds or evidences of indebtedness in trust for the purpose of defeasing or discharging the Company’s
indebtedness or the indebtedness of any Subsidiary, and legal or equitable encumbrances deemed to exist by reason of negative pledges;

 

(10)       Liens for contested taxes or assessments provided, that an adequate reserve as shall be required in conformity with GAAP shall
have been made therefor;

 

(11)       Liens consisting of restrictions on the use of real property that do not interfere materially with the property’s use; or

 

(12)       Liens securing indebtedness
or other obligations of a Subsidiary owing to the Company or any other Subsidiary.

 

“Principal Property”
means any manufacturing plant located within the United States of America (other than its territories or possessions) and owned
by the Company or any Subsidiary, the gross book value (without deduction of any depreciation reserves) of which on the date as
of which the determination is being made exceeds 2% of Consolidated Net Tangible Assets of the Company, except any such plant which
is not of material importance to the business conducted by the Company and its Subsidiaries, taken as a whole (as determined by
any two of the following: the Chairman or a Vice Chairman of the Board of the Company, its President, its Chief Financial Officer,
its Vice President of Finance, its Treasurer or its Controller).

 

“Prospectus Supplement”
means the final prospectus supplement dated September 16, 2019 relating to the offering of the Notes.

 

“Rating Agency” means
each of Moody’s and S&P; provided, that if any of Moody’s or S&P ceases to provide rating services to issuers
or investors, the Company may appoint another “nationally recognized statistical rating organization” within the meaning
of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act as a replacement for such Rating Agency; provided, that the Company shall give
notice of such appointment to the Trustee.

 

“Ratings
Event” means the Notes are downgraded and are not rated Investment Grade by each of the Rating Agencies on any
date during the period (the “Trigger Period”) commencing on the earlier of (i) the occurrence of the Change
of Control and (ii) the first public announcement by the Company of any Change of Control (or pending Change of Control) and ending
60 days following consummation of such Change of Control (which Trigger Period will be extended following consummation of a Change
of Control for so long as any Rating Agency has publicly announced that it is considering a possible ratings change), provided
that no such extension shall occur if on such 60th day the Notes have an Investment Grade rating from at least one Rating Agency
and are not subject to review for possible downgrade by such Rating Agency, and provided further, that a Ratings Event will not
be deemed to have occurred in respect of a particular Change of Control (and thus will not be deemed a Ratings Event for purposes
of the definition of Change of Control Triggering Event) if each Rating Agency making the reduction in rating does not publicly
announce or confirm or inform the Company that the reduction was the result, in whole or in part, of any event or circumstance
comprised of or arising as a result of, or in respect of, the Change of Control (whether or not the applicable Change of Control
has occurred at the time of the Ratings Event). If a Rating Agency is not providing a rating for the Notes during any period, the
Notes will be deemed to have ceased to be rated Investment Grade by such Rating Agency during such period.

 

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“Reference Treasury Dealer”
means J.P. Morgan Securities Inc. and Wells Fargo Securities, LLC, its successors and assigns and four other nationally recognized
investment banking firms that are Primary Treasury Dealers specified from time to time by the Company, except that if any of the
foregoing ceases to be a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”),
the Company may designate as a substitute another nationally recognized investment banking firm that is a Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations”
means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Independent Investment
Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer as of 3:30 p.m., New York City
time, on the third business day preceding such redemption date.

 

On and after any redemption date, interest
will cease to accrue on the Notes called for redemption. Prior to any redemption date, the Company is required to deposit with
the Trustee or with a paying agent money sufficient to pay the redemption price of, and accrued interest on, the Notes to be redeemed
on such date. If the Company is redeeming less than all the Notes, the Trustee under the Indenture must select the Notes to be
redeemed by lot.

 

“Remaining Scheduled Payments”
means, with respect to any Note, the remaining scheduled payments of the principal and interest thereon that would be due if such
Notes matured on the Par Call Date (excluding accrued but unpaid interest to the related redemption date).

 

“S&P” means S&P
Global Ratings Inc., a division of S&P Global Inc. and its successors.

 

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

 

“Significant Subsidiary”
means any Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02(w)(1) or (2) of Regulation
S-X, promulgated pursuant to the Securities Act, as such regulation is in effect on the date of issuance of the Notes.

 

“Special Mandatory Redemption
Date” means the earlier to occur of (1) August 5, 2020 (or if such day is not a business day, the first business day
thereafter), or (2) the 30th day (or if such day is not a business day, the first business day thereafter) following the date that
the Merger Agreement terminates in accordance with its terms.

 

“Stated Maturity,” when
used with respect to any Note or any installment of principal thereof or interest thereon, means the date specified in such Note
as the fixed date on which the principal amount of such Note or such installment of principal or interest is due and payable.

 

“Subsidiary” means,
with respect to any specified person:

 

(1)       any corporation, association
or other business entity of which more than 50% of the total voting power of shares of capital stock entitled (without regard to
the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively
transfers voting power) to vote in the election of directors, managers or trustees of the corporation, association or other business
entity is at the time owned or controlled, directly or indirectly, by that person or one or more of the other Subsidiaries of that
person (or a combination thereof);

 

(2)       any partnership (a) the sole
general partner or the managing general partner of which is such person or a Subsidiary of such person or (b) the only general
partners of which are that person or one or more Subsidiaries of that person (or any combination thereof); or

 

(3)       any limited liability company
(a) the manager or managing member of which is such person or a Subsidiary of such person or (b) the only members of which are
that Person or one or more Subsidiaries of that person (or any combination thereof).

 

Unless the context otherwise requires,
“Subsidiary” as used herein shall mean a Subsidiary of the Company.

 

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“Substitute Rating Agency”
means a “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of the Exchange
Act selected by the Company pursuant to the definition of Rating Agency as a replacement for an Interest Rate Rating Agency.

 

“Treasury Rate” means,
with respect to any redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the
second business day immediately preceding such redemption date) of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for such redemption
date.

 

“Trustee” has the meaning
set forth in the recitals to this Supplemental Indenture until a successor replaces it in accordance with the applicable provisions
of the Indenture and, thereafter, means the successor.

 

“Voting Stock” of any
person as of any date means the capital stock of that person that is at the time entitled to vote in the election of the board
of directors (or equivalent body) of such person.

 

SECTION 1.2 Incorporation by Reference
of TIA. This Supplemental Indenture is subject to the mandatory provisions of the Trust Indenture Act of 1939, as amended (the
“TIA”). Whenever this Supplemental Indenture refers to a provision of the TIA, the provision is incorporated
by reference in, and made a part of, this Supplemental Indenture.

 

All other terms used in this Supplemental
Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by the Commission
rule under the TIA have the meanings so assigned to them therein.

 

SECTION 1.3 Rules of Construction.
Unless the context otherwise requires, for purposes of this Supplemental Indenture:

 

(1)       a term has the meaning assigned to it herein;

 

(2)       an accounting term not otherwise defined herein has the meaning assigned to it in accordance with GAAP or a successor to
GAAP;

 

(3)       “or” is not exclusive;

 

(4)       words in the singular include the plural, and in the plural include the singular;

 

(5)       unless otherwise specified, any reference to a Section or an Article refers to such Section or Article of this Supplemental
Indenture;

 

(6)       provisions apply to successive events and transactions;

 

(7)       “will” and “shall” shall be interpreted to express a command; and

 

(8)       references to sections of or rules under the Securities Act, the Exchange Act or the TIA shall be deemed to include substitute,
replacement or successor sections or rules adopted by the Commission from time to time.

 

ARTICLE II

THE NOTES

 

SECTION 2.1 Creation of Series of Securities.
Pursuant to Section 301 of the Base Indenture, there are hereby created one new series of Securities designated as the “4.500%
Senior Notes due 2026” in an unlimited aggregate principal amount. On the Issue Date, the Company will issue $375,000,000
in aggregate principal amount of the Notes.

 

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SECTION 2.2 Terms of the Notes.

 

(a)       Form and Dating.       Pursuant
to Section 201 of the Base Indenture, the Notes shall be substantially in the form annexed hereto as Exhibit A. The terms
and provisions contained in the form of the Notes annexed hereto as Exhibit A, shall constitute, and are hereby expressly made,
a part of this Supplemental Indenture. The Company shall be entitled to issue, from time to time, without the consent of the Holders
of Notes, additional Notes (in any such case, “Additional Notes”) under this Supplemental Indenture, provided
that any such Additional Notes that are not fungible with the Initial Notes (as defined below) for United States federal income
tax purposes will be issued with a different CUSIP, ISIN or other identifying number than the CUSIP, ISIN or other identifying
number issued to the Initial Notes. Any Additional Notes issued shall have identical terms and conditions as the Initial Notes,
other than with respect to the issue price, the date of issuance, the payment of interest accruing prior to the issue date of such
Additional Notes and the first Interest Payment Date following the issue date of such Additional Notes. The Initial Notes issued
on the Issue Date will be represented initially by one or more Global Notes registered in the name of Cede & Co., as a
nominee of the Depository, The Depository Trust Company. The Notes shall be issued in fully registered form without coupons in
minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

(b)       Terms of the Notes.

 

(1) Principal Amounts. The
aggregate principal amount of the Notes (the “Initial Notes”) that may be initially authenticated
and delivered under the Indenture on the Issue Date shall be $375,000,000. Any Additional Notes and the Initial Notes
shall constitute a single series under the Indenture and will be treated as a single class for all purposes under the
Indenture. All references to the Notes shall include the Initial Notes and any Additional Notes, unless the context otherwise
requires. The aggregate principal amount of the Additional Notes shall be unlimited.

 

(2) Maturity Date. The
entire outstanding principal of the Notes shall be payable on September 15, 2026.

 

(3) Interest Rate. The
rate at which the Notes shall bear interest shall be 4.500% per annum; the date from which interest shall accrue on the Notes shall
be the Issue Date, or the most recent Interest Payment Date to which interest has been paid or provided for; the Interest Payment
Dates for the Notes shall be March 15 and September 15 of each year, beginning March 15, 2020; the interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date, will be paid, in immediately available funds, to the Persons in whose
names the Notes are registered at the close of business on the Regular Record Date for such Interest Payment Date, which shall
be the March 1 or September 1, as the case may be, immediately preceding such Interest Payment Date.

 

(4) Currency. The currency
of denomination of the Notes is United States Dollars. Payment of principal of and interest and premium on, if any, the Notes shall
be made in United States Dollars.

 

(c)       Additional Notes.       With
respect to any Additional Notes, in addition to any other requirements set forth in the Base Indenture, the Company shall set forth
in a Board Resolution or in a supplemental indenture or in an officer’s certificate, a copy of which shall be delivered to
the Trustee, the following information:

 

(1)       the aggregate principal amount of such
Additional Notes to be authenticated and delivered pursuant to this Supplemental Indenture;

 

(2)       the issue price, the issue date and
the CUSIP, ISIN or other identifying number issued to such Additional Notes; and

 

(3)       whether such Additional Notes will be
issued as Global Notes or as Certificated Notes and whether and to what extent the Additional Notes will contain additional legends.

 

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SECTION 2.3 Interest Rate Adjustment.

 

(a)       The
interest rate payable on the Notes may be subject to adjustments from time to time if either of the Interest Rate Rating Agencies
or a Substitute Rating Agency downgrades (or downgrades and subsequently upgrades) the credit rating assigned to the Notes, as
set forth in this Section 2.3. If either of the Interest Rate Rating Agencies ceases to rate the Notes or fails to make a rating
the Notes publicly available for reasons outside of the Company’s control, the Company shall select a Substitute Rating Agency.

 

(b)       If
the rating of the Notes from any one or more of the Interest Rate Rating Agencies (or, if applicable, any Substitute Rating Agency)
is decreased to a rating set forth in the immediately following tables, the interest rate on the Notes will increase from the interest
rate set forth on the cover page of the Prospectus Supplement by an amount equal to the percentage set forth opposite the ratings
from the tables below:

 

	Moody’s Rating*	 	Percentage	 
	Ba1	 	 	0.25	%
	Ba2	 	 	0.50	%
	Ba3	 	 	0.75	%
	B1 or below	 	 	1.00	%

 

	S&P Rating*	 	Percentage	 
	BB+	 	 	0.25	%
	BB	 	 	0.50	%
	BB-	 	 	0.75	%
	B+ or below	 	 	1.00	%

 

* Including the equivalent ratings of any
Substitute Rating Agency therefor.

 

(c)       If
at any time only one Interest Rate Rating Agency provides a rating of the Notes the Company shall use commercially reasonable efforts
to obtain a rating of the Notes from a Substitute Rating Agency, to the extent one exists, and if a Substitute Rating Agency exists,
for purposes of determining any increase or decrease in the interest rate on such Notes pursuant to the tables in Section 2.3(b),
(1) such Substitute Rating Agency will be substituted for the last Interest Rate Rating Agency to provide a rating of the Notes
but which has since ceased to provide such rating, (2) the relative rating scale used by such Substitute Rating Agency to assign
ratings to senior unsecured debt will be determined in good faith by an independent investment banking institution of national
standing appointed by the Company and, for purposes of determining the applicable ratings included in the applicable table in Section
2.3(b) with respect to such Substitute Rating Agency, such ratings shall be deemed to be the equivalent ratings used by S&P
or Moody’s, as applicable, in such table, and (3) the interest rate on the Notes will increase or decrease, as the case may
be, such that the interest rate equals the interest rate payable on the Notes as set forth on the cover page of the Prospectus
Supplement plus the appropriate percentage, if any, set forth opposite the rating from such Substitute Rating Agency in the applicable
table in Section 2.3(b) (taking into account the provisions of Section 2.3(c)(2)) (plus any applicable percentage resulting from
a decreased rating by another Interest Rate Rating Agency).

 

(d)       For
so long as only one Interest Rate Rating Agency provides a rating of the Notes, any subsequent increase or decrease in the interest
rate of the Notes necessitated by a reduction or increase in the rating by that Interest Rate Rating Agency shall be twice the
applicable percentage set forth in the applicable table in Section 2.3(b). For so long as no Interest Rate Rating Agency (or a
Substitute Rating Agency therefor) provides a rating of the Notes, the interest rate on the Notes will increase to, or remain at,
as the case may be, 2.00% per annum above the interest rate payable on the Notes on the Issue Date.

 

(e)       Each
interest rate adjustment required by any downgrade or upgrade in a rating as set forth above, whether occasioned by the action
of an Interest Rate Rating Agency (or a Substitute Rating Agency therefor), shall be made independently of (and in addition to)
any and all other interest rate adjustments occasioned by the action of another Interest Rate Rating Agency. In no event shall
(1) the interest rate for the Notes be reduced to below the interest rate payable on the Notes on the Issue Date or (2) the total
increase in the interest rate on the Notes exceed 2.00% above the interest rate payable on the Notes on the Issue Date.

 

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(f)       Except
as set forth in Sections 2.3 (a)-(e), no adjustment in the interest rate on the Notes shall be made solely as a result of an Interest
Rate Rating Agency ceasing to provide a rating of the Notes. If at any time the interest rate on the Notes has been adjusted upward
and any of the Interest Rate Rating Agencies (or any Substitute Rating Agency therefor), as the case may be, subsequently upgrades
its rating of the Notes to or above any of the threshold ratings set forth in Sections 2.3 (a)-(e), the interest rate on the Notes
will again be adjusted (and decreased, if appropriate) such that the interest rate for the Notes equals the interest rate payable
on the Notes on the Issue Date plus (if applicable) an amount equal to the percentages per annum set forth opposite the ratings
in the tables in Section 2.3(b)with respect to the ratings assigned to the Notes (based on the gradations set forth in the tables
in Section 2.3(b)) at that time, including the ratings given by such Interest Rate Rating Agency. For the avoidance of doubt, if
at any time after an interest rate adjustment has occurred the Interest Rate Rating Agencies (or any Substitute Rating Agency therefor)
have assigned ratings to the Notes of Baa3 or BBB- (or its equivalent if with respect to any Substitute Rating Agency) or higher,
as the case may be, the interest rate payable on the Notes will be decreased to the interest rate payable on the Notes on the Issue
Date.

 

(g)      Any
interest rate increase or decrease described in this Section 2.3 will take effect from the first interest payment date following
the date on which a rating change occurs requiring an adjustment in the interest rate. As such, interest will not accrue at such
increased or decreased rate until the next interest payment date following the date on which a rating change occurs. If an Interest
Rate Rating Agency (or a Substitute Rating Agency therefor) changes its rating of the Notes more than once prior to any particular
interest payment date, the last such change by such agency prior to such interest payment date will control in the event of a conflict
for purposes of any increase or decrease in the interest rate with respect to the Notes described above relating to such Interest
Rate Rating Agency’s action.

 

(h)      The
interest rate on the Notes will permanently cease to be subject to any adjustment described in this Section 2.3 (notwithstanding
any subsequent downgrade in the rating by any Interest Rate Rating Agency) if the Notes become rated Baa1 or higher by Moody’s
(or its equivalent if with respect to any Substitute Rating Agency) and BBB+ or higher by S&P (or its equivalent if with respect
to any Substitute Rating Agency), as the case may be.

 

(i)        If
the interest rate payable on the Notes is increased as described in this Section 2.3, the term “interest,” as used
with respect to the Notes, will be deemed to include any such additional interest unless the context otherwise requires.

 

SECTION 2.4 Transfer and Exchange.

 

(a)       A
Holder of the Notes may transfer or exchange Notes in accordance with the Indenture. The registrar and the Trustee may require
a Holder of the Notes, among other things, to furnish appropriate endorsements and transfer documents in connection with a transfer
of Notes. Holders of the Notes may be required to pay all taxes or other governmental charge due on transfer. The Company is not
required to transfer or exchange any Note selected for redemption. The Company is not required to transfer or exchange any Note
for a period of 15 days before a selection of Notes to be redeemed.

 

SECTION 2.5 Application of Supplemental
Indenture. Notwithstanding any other provision of this Supplemental Indenture, all provisions of this Supplemental Indenture
are expressly and solely for the benefit of the Holders of the Notes and any such provisions shall not be deemed to apply to any
other securities issued under the Base Indenture and shall not be deemed to amend, modify or supplement the Base Indenture for
any purpose other than with respect to the Notes. Unless otherwise expressly specified, references in this Supplemental Indenture
to specific Article numbers or Section numbers refer to Articles and Sections contained in this Supplemental Indenture as they
amend or supplement the Base Indenture, and not the Base Indenture or any other document. All Initial Notes and Additional Notes,
if any, will be treated as a single series for all purposes of the Indenture, including waivers, amendments, redemptions and offers
to purchase.

 

SECTION 2.6 Effect of Supplemental Indenture.
With respect to the Notes (and only with respect to the Notes), the Base Indenture shall be supplemented pursuant to Section 901
thereof to establish the terms of the Notes as set forth in this Supplemental Indenture, including, without limitation, as follows:

 

(a)        The
definition of each term set forth in Section 101 of the Base Indenture is with respect to the Notes (and only with respect
to the Notes) deleted and replaced in its entirety by the definition ascribed to such term in Article I of this Supplemental Indenture
to the extent any such term is defined in both the Base Indenture and this Supplemental Indenture;

 

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(b)       To
the extent that the provisions of this Supplemental Indenture conflict with any provision of the Base Indenture, the provisions
of this Supplemental Indenture shall govern and be controlling, with respect to the Notes (and only with respect to the Notes).

 

(c)       Except
as set forth in this Supplemental Indenture, the provisions of the Base Indenture shall remain in full force and effect with respect
to the Notes.

 

ARTICLE III

REDEMPTION AND REPURCHASE AT THE OPTION OF HOLDERS

 

SECTION 3.1 Special Mandatory Redemption.

 

(a)       The
Company shall redeem all of the outstanding Notes at a redemption price equal to 101% of the aggregate principal amount of the
Notes being redeemed, plus accrued and unpaid interest to, but not including, the Special Mandatory Redemption Date (the “Special
Mandatory Redemption Price”), if:

 

(1)       the
Merger is not consummated on or prior to July 6, 2020; or

 

(2)       the
Merger Agreement is terminated at any time before July 6, 2020.

 

(b)       In
the event that the Company is required to redeem the Notes pursuant to Section 3.1(a), the Company shall cause a notice of special
mandatory redemption to be delivered to each registered Holder of the Notes, with a copy to the Trustee, within five business days
after the occurrence of the event triggering the special mandatory redemption.

 

(c)       In
the event that funds sufficient to pay the Special Mandatory Redemption Price of all the Notes to be redeemed on the Special Mandatory
Redemption Date are deposited with the Trustee on or prior to such Special Mandatory Redemption Date, plus accrued and unpaid interest,
if any, to, but excluding, the Special Mandatory Redemption Date, such Notes will cease to bear interest and all rights under such
Notes shall terminate (other than in respect of the right to receive the Special Mandatory Redemption Price, plus accrued and unpaid
interest to, but excluding, the Special Mandatory Redemption Date).

 

SECTION 3.2 Optional Redemption of the
Notes.

 

(a)       Prior
to the Par Call Date, the Company may redeem the Notes in whole at any time or in part from time to time, at its option, on at
least 10 but not more than 60 days’ prior notice, at a redemption price equal to the greater of (i) 100% of the principal
amount of the Notes being redeemed and (ii) the sum of the present values of the Remaining Scheduled Payments on the Notes being
redeemed on the redemption date, discounted to the date of redemption, on a semiannual basis, at the Treasury Rate plus 45 basis
points, plus accrued and unpaid interest on such Notes being redeemed to, but not including, the redemption date. On or after the
Par Call Date, the Company may on any one or more occasions redeem all or a part of the Notes, at its option, at a redemption price
equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest on such Notes being redeemed
to, but not including, the redemption date.

 

(b)       If
an optional redemption date is on or after a Regular Record Date and on or before the related Interest Payment Date, any accrued
and unpaid interest will be paid to the Person in whose name the Note is registered at the close of business on such Regular Record
Date. In determining the redemption price and accrued interest, interest shall be calculated on the basis of a 360-day year consisting
of twelve 30-day months. Unless the Company defaults in payment of the redemption price, on and after the redemption date, interest
will cease to accrue on the Notes or portions of the Notes called for redemption and those Notes will cease to be outstanding.

 

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(c)       The
Trustee shall have no obligation to calculate or verify the calculation of the present values of the Remaining Scheduled Payments,
the Treasury Rate or any aspect of such calculations.

 

(d)       If
less than all of the Notes are to be redeemed at any time, the Trustee will select the Notes for redemption in compliance with
the requirements of the Depository, or if the Notes are not held through a Depository or the Depository prescribes no method of
selection, by lot, in accordance with the Depository’s customary procedures, subject to adjustments so that no Note in an
unauthorized denomination remains outstanding after such redemption or purchase; provided, however, that no Note
of $2,000 in aggregate principal amount of less shall be redeemed in part.

 

(e)       Notices
of optional redemption will be sent by electronic submission (for Notes held in book-entry form) or first class mail at least 10
but not more than 60 days before the redemption date to each Holder of Notes to be redeemed at its registered address, except that
redemption notices may be sent more than 60 days prior to a redemption date if the notice is issued in connection with Article
4 of the Base Indenture.

 

(f)       If
any Note is to be redeemed in part only, the notice of redemption that relates to that Note will state the portion of the principal
amount of that Notes that is to be redeemed. A new Note in principal amount equal to the unredeemed portion of the original Note
will be issued in the name of the Holder of the Note upon cancellation of the original Note if such Notes are held in physical
form.

 

(g)       The
Company and its affiliates may at any time and from time to time purchase Notes in the open market, by tender offer, negotiated
transactions or otherwise.

 

SECTION 3.3 Repurchase at the Option of
Holders—Change of Control Triggering Event.

 

(a)       If
a Change of Control Triggering Event occurs, unless the Company at such time has given notice of redemption under Sections 3.1
or 3.2 with respect to all outstanding Notes and all conditions to such redemption have either been satisfied or waived, each Holder
of Notes will have the right to require the Company to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000
in excess thereof) of that Holder’s Notes pursuant to the provisions of this Section 3.3 (the “Change of Control
Offer”). In the Change of Control Offer, the Company will offer a payment in cash equal to 101% of the aggregate principal
amount of the Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to, but not including, the
date of repurchase (the “Change of Control Payment”).

 

(b)       Within
30 days following any Change of Control Triggering Event, or at the Company’s option, prior to any Change of Control but
after the public announcement of the pending Change of Control, unless the Company at such time has given notice of redemption
under Sections 3.1 or 3.2 with respect to all outstanding Notes, the Company shall send a notice to each Holder and the Trustee
describing the transaction or transactions that constitute the Change of Control Triggering Event and offering to repurchase the
Notes on the date specified in the notice (the “Change of Control Payment Date”), which date will be no earlier
than 10 days and no later than 60 days from the date such notice is sent, other than as may be required by law, pursuant to the
procedures required by the Indenture and described in such notice. If a Change of Control Payment Date is on or after a Regular
Record Date and on or before the related Interest Payment Date, any accrued and unpaid interest will be paid to the Person in whose
name the Note is registered at the close of business on such Regular Record Date. The notice, if mailed prior to the date of consummation
of the Change of Control, will state that the Change of Control Offer is conditioned on the Change of Control being consummated
on or prior to the Change of Control Payment Date. The Company will comply with the requirements of Rule 14e-1 under the Exchange
Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection
with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any
securities laws or regulations conflict with the Change of Control provisions of the Indenture, the Company will comply with the
applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section 3.3 by virtue
of such compliance.

 

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(c)       On
the Change of Control Payment Date, the Company will, to the extent lawful:

 

(1)       accept
or cause a third party to accept for payment all Notes or portions of Notes (equal to $2,000 or an integral multiple of $1,000
in excess thereof) properly tendered and not withdrawn pursuant to the Change of Control Offer;

 

(2)       deposit
or cause a third party to deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes
or portions of Notes properly tendered and not withdrawn; and

 

(3)       deliver or cause to be delivered to the Trustee the Notes properly accepted together with an officer’s certificate
stating the aggregate principal amount of the Notes or portions of Notes being repurchased by the Company and that all conditions
precedent to the Change of Control Offer and to the repurchase by the Company of Notes pursuant to the Change of Control Offer
have been complied with.

 

The Paying Agent will promptly mail to each
Holder of Notes properly tendered and not withdrawn the Change of Control Payment for such Notes, and the Trustee will promptly
authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any; provided, that each such new Note will be in a minimum principal amount of $2,000
or an integral multiple of $1,000 in excess thereof.

 

(d)       The
Company will not be required to make a Change of Control Offer with respect to the Notes upon a Change of Control Triggering Event
if (1) a third party makes the Change of Control Offer with respect to such Notes in the manner, at the times and otherwise in
compliance with the requirements set forth in the Indenture applicable to a Change of Control Offer made by the Company and purchases
all the Notes properly tendered and not withdrawn under the Change of Control Offer, or (2) a notice of redemption has been given
pursuant to the Indenture with respect to the Notes under Sections 3.1 or 3.2, unless and until there is a default in payment of
the applicable redemption price. Notwithstanding anything to the contrary contained in this Section 3.3, a Change of Control Offer
may be made in advance of a Change of Control Triggering Event, conditioned upon the occurrence of such Change of Control Triggering
Event (whether or not a Ratings Event has occurred), if a definitive agreement is in place for a Change of Control at the time
the Change of Control Offer is made.

 

(e)       No
Change of Control Triggering Event will be deemed to have occurred in connection with any particular Change of Control unless and
until such Change of Control has actually been consummated.

 

ARTICLE IV

COVENANTS

 

This Article IV shall replace and supersede
in its entirety Sections 1004 through 1010 of Article 10 of the Base Indenture.

 

SECTION 4.1 Limitation on Secured Debt.

 

(a)       The
Company will not, nor will it permit any of its Subsidiaries to, create, incur or assume any Lien (other than Permitted Liens)
that secures any Debt on any Principal Property of the Company or any Subsidiary, or on capital stock of any Subsidiary that owns
a Principal Property (“secured debt”), without securing the Notes (together with, at the option of the Company,
any other Debt of the Company or such Subsidiary ranking equally in right of payment with the Notes) equally and ratably with or,
at the option of the Company, prior to, such other Debt for so long as such other Debt is so secured. Any Lien that is granted
to secure the Notes under this Section 4.1 shall be automatically released and discharged at the same time as the release of the
Lien that gave rise to the obligation to secure the Notes under this Section 4.1.

 

(b)       The
restrictions set forth in Section 4.1(a) do not apply to extensions, renewals or replacements, in whole or in part, of any secured
debt (and for the avoidance of doubt, any successive extensions, renewals or replacements of such secured debt), so long as the
principal amount of secured debt shall not exceed the amount of secured debt existing at the time of such extension, renewal or
replacement (plus an amount equal to any premiums, accrued interest, fees, expenses or other costs payable in connection therewith).

 

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(c)       The
Company or any Subsidiary may incur or otherwise create secured debt without equally and ratably securing the Notes if, when such
secured debt is incurred or created, the total amount of all outstanding secured debt (excluding Debt secured by Permitted Liens)
plus Attributable Debt relating to sale and leaseback transactions entered into pursuant to Section 4.2(c)(1) does not exceed 15%
of the Company’s Consolidated Net Tangible Assets.

 

SECTION 4.2 Limitation on Sale and Leaseback
Transactions.

 

(a)       The
Company will not, nor will it permit any of its Subsidiaries to enter into any sale and leaseback transaction involving any Principal
Property, unless within 270 days, the Company applies (1) to the purchase, construction, development, expansion or improvement
of other property or equipment used or useful in the Company’s business or (2) to the retirement of the Company’s Funded
Debt an amount not less than the greater of:

 

(1)       the
net proceeds of the sale of the Principal Property sold and leased back pursuant to the arrangement; and

 

(2)       the
amount of Attributable Debt associated with the Principal Property sold and leased back.

 

(b)       The
amount applied to the retirement of Funded Debt shall be reduced by (1) the principal amount of any debt securities delivered within
120 days after the sale and leaseback transaction to the Trustee for retirement and cancellation, and (2) the principal amount
of Funded Debt, other than debt securities, voluntarily retired by the Company within 120 days after the sale and leaseback transaction.
Notwithstanding the foregoing, no retirement of Funded Debt may be effected by payment at maturity or pursuant to any mandatory
prepayment provision.

 

(c)       The
limitations contained in Section 4.2(a) shall not apply to the following:

 

(1)       a
sale and leaseback transaction if the Company or a Subsidiary would be entitled to incur Debt secured by a lien on the Principal
Property to be leased, without equally and ratably securing the Notes, in an aggregate principal amount equal to the Attributable
Debt with respect to such sale and leaseback transaction;

  

(2)       leases
for a term of not more than three years;

 

(3)       a
sale and leaseback transaction between the Company and a Subsidiary or between Subsidiaries; or

 

(4)       if,
at the time of the sale and leaseback transaction, after giving effect to the transaction the total Attributable Debt of all sale
and leaseback transactions entered into pursuant to Section 4.2(c)(1), plus all outstanding secured debt (excluding Debt secured
by Permitted Liens) does not exceed 15% of the Company’s Consolidated Net Tangible Assets.

 

SECTION 4.3 Reports.

 

The Company shall file with
the Trustee and the Commission, and transmit to Holders of the Notes such information, documents and other reports, and such summaries
thereof, as may be required pursuant to the TIA at the times and in the manner provided in the TIA provided that, unless
available on the SEC’s EDGAR reporting system, any such information, documents or reports required to be filed with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within 15 days after the same is filed with
the SEC. The Trustee is not responsible for the review or dissemination of such information, documents, other reports and the related
summaries provided hereunder.

 

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SECTION 4.4 Additional Subsidiary Guarantees.

 

The Company shall cause any Subsidiary that
hereafter becomes a guarantor under the Credit Agreement to, within 30 days of the date such Subsidiary becomes a guarantor under
the Credit Agreement, to guarantee, on a joint and several basis with the Guarantors, the Company’s obligations under the
Notes and the Indenture with respect to the Notes and to execute a supplemental indenture containing substantially the terms set
forth in Article VIII of this Supplemental Indenture evidencing such guarantee.  The Company’s obligations to cause
the issuance of the guarantees hereunder shall only apply with respect to any specific Subsidiary until such time as such Subsidiary
has been released from its obligations pursuant to Section 8.3.

 

ARTICLE V

DEFAULTS AND REMEDIES

 

This Article V shall replace and supersede in its entirety Article
5 of the Base Indenture with the exception of Sections 501(f), 501(g) and 502 of the Base Indenture.

 

SECTION 5.1 Events of Default.

 

(a)       Each
of the following is an “Event of Default” with respect to the Notes:

 

(1)       default
in any payment of interest on any Note when due, and the continuance of such default for 30 days;

 

(2)       default
in the payment of principal of, or premium, if any, on the Notes when due and payable;

 

(3)       default
for 60 days after written notice specifying the default from the Trustee or Holders of at least 25% of the aggregate principal
amount of the then outstanding Notes to comply with any other agreement in the Indenture not specified above;

 

(4)       an
event of default under any indenture or instrument under which the Company or any Significant Subsidiary has outstanding at least
$100,000,000 aggregate principal amount of Debt for money borrowed, which results in the acceleration of that Debt where the acceleration
is not rescinded or annulled within 30 days after notice pursuant to the Indenture has been provided; or

 

(5)       an
Event of Default under Section 501(f) or Section 501(g) of the Base Indenture in respect of the Company or any Significant Subsidiary
has occurred.

 

(b)       The
Trustee may withhold notice to the Holders of the Notes of any default, except with respect to the payment of principal, premium
or interest, if it considers such withholding of notice in the interest of such Holders.

 

SECTION 5.2 Remedies.

 

(a)       If
an Event of Default (other than an Event of Default described in Section 5.1(a)(5) above with respect to the Company) occurs and
is continuing, the Trustee by notice in writing specifying the Event of Default to the Company, or the Holders of at least 25%
in aggregate principal amount of the then outstanding Notes by notice to the Company and the Trustee, may declare the principal
of, premium, if any, and accrued and unpaid interest, if any, on all the Notes to be due and payable. Upon such a declaration,
such principal, premium, if any, and accrued and unpaid interest, if any, will be due and payable immediately.

 

(b)       If
an Event of Default described in Section 5.1(a)(5) occurs and is continuing with respect to the Company, the principal of, premium,
if any, and accrued and unpaid interest, if any, on all the Notes will become and be immediately due and payable without any declaration
or other act on the part of the Trustee or any Holders of the Notes.

 

(c)       If
an Event of Default occurs and is continuing, the Trustee will be under no obligation to exercise any of the rights or powers under
the Indenture or the Notes at the request or direction of any of the Holders of the Notes unless
such Holders have offered to the Trustee indemnity or security satisfactory to it against any costs, liability and expenses, except
to enforce the right to receive payment of principal, premium, if any, and interest, if any, when due.

 

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(d)       The
Holders of a majority in aggregate principal amount of the then outstanding Notes are given the right to direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on
the Trustee, with respect to such Notes.

 

(e)       No
Holder of the Notes may pursue any remedy with respect to the Indenture or the Notes unless:

 

(1)       such
Holder has previously given the Trustee notice that an Event of Default is continuing;

 

(2)       the
Holders of at least 25% in aggregate principal amount of the then outstanding Notes have requested the Trustee to pursue the remedy;

 

(3)       such
Holders have offered the Trustee security or indemnity satisfactory to the Trustee against any costs, liability and expenses to
be incurred in compliance with such request;

  

(4)       the
Trustee has not complied with such request within 60 days after the receipt of the request and the offer of security or indemnity;
and

 

(5)       the
Holders of a majority in aggregate principal amount of the then outstanding Notes have not given the Trustee a direction that is
inconsistent with such request within such 60-day period.

 

(f)       
In the event an Event of Default has occurred and is continuing, the Trustee shall be required, in the exercise of its powers,
to use the degree of care that a prudent person would use under the circumstances in the conduct of his or her own affairs. The
Trustee, however, may refuse to follow any direction that conflicts with law or the Indenture or the Notes or that the Trustee
determines in good faith is unduly prejudicial to the rights of any other Holder (it being understood that the Trustee does not
have an affirmative duty to ascertain whether or not such directions are unduly prejudicial to such Holders) or that would involve
the Trustee in personal liability. Prior to taking any action under the Indenture, the Trustee will be entitled to security or
indemnification satisfactory to it in its sole discretion against all costs, liability and expenses caused by taking or not taking
such action.

 

(g)       The
Holders of a majority in aggregate principal amount of the then outstanding Notes may on behalf of the Holders of all the Notes
rescind any acceleration or waive any existing or past defaults and its consequences under the Indenture, if (1) rescission would
not conflict with any judgment or decree of a court of competent jurisdiction and (2) all existing Events of Default, other than
the nonpayment of the principal of, premium, if any, and interest on the Notes that have become due solely by such declaration
of acceleration, have been cured or waived, except that each Holder of the Notes affected by a default must consent to a waiver
of:

 

(1)       a
default in payment of the principal of, or premium, if any, or interest, if any, on the Notes; and

 

(2)       a
default in respect of a covenant or provision of the Indenture that cannot be amended or modified without the consent of each
Holder of the Notes. 

 

ARTICLE VI

SUPPLEMENTAL
INDENTURES

 

SECTION 6.1 Without Consent of Holders.

 

(a)       Without
the consent of any Holders of the Notes, the Company, when authorized by or pursuant to a Board Resolution, and the Trustee, at
any time and from time to time, may modify or amend the Indenture, in form satisfactory to the Trustee, for any, but not limited
to, of the following purposes:

 

(1)       to
evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company
herein and in the Notes;

 

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(2)       to
add provisions for the benefit of the Holders of the Notes , or to surrender any right or power in the Indenture conferred upon
the Company;

 

(3)       to
add any additional Events of Default;

 

(4)       to
evidence and provide for the acceptance of appointment of a successor trustee;

 

(5)       to
cure any ambiguity, to correct or supplement any provision in the Indenture which may be inconsistent with any other provision
of the Indenture, or to make any other change; in each case, that does not adversely affect the interests of the Holders of the
Notes in any material respect;

 

(6)       to
conform the terms of the Indenture or the Notes to the description thereof contained in the Prospectus Supplement;

 

(7)       to
provide for the Notes to become secured (or to release such security as permitted by the Indenture and the applicable security
documents);

 

(8)       to
provide for additional guarantees of the Notes (or to release such guarantees as permitted by the Indenture); or

 

(9)       to
provide for the issuance of additional Notes in accordance with the limitations set forth in the Indenture.

 

ARTICLE VII

SATISFACTION AND DISCHARGE

 

SECTION 7.1 Amendment to Base Indenture.

 

(a)       The second line of Section 403 of the Base Indenture is hereby amended with respect to the Notes to delete “91st day after
the”.

 

ARTICLE VIII

GUARANTEES

 

SECTION 8.1 Guarantees.

 

(a)       Each
of the Guarantors hereby fully and unconditionally guarantees (collectively, the “Guarantees”), on a joint and
several basis to each Holder of the Notes and to the Trustee and its successors and assigns on behalf of each Holder of the Notes,
the full and punctual payment of principal of (and premium, if any) and (subject to Section 307 of the Base Indenture) interest
on, and all other monetary obligations of the Company under the Base Indenture, this Supplemental Indenture and the Notes (including
obligations to the Trustee), in each case, with respect to Notes authenticated and delivered by the Trustee or its agent pursuant
to and in accordance with the Indenture when and as the same shall become due and payable, in accordance with the terms of the
Indenture and the Notes (all the foregoing being hereinafter collectively referred to as the “Obligations”). 
Each Guarantor further agrees that the Obligations may be extended or renewed, in whole or in part, without notice or further assent
from such Guarantor and that such Guarantor will remain bound under this Article VIII notwithstanding any extension or renewal
of any Obligation.  All payments under each Guarantee will be made as specified in Section 311 of the Base Indenture.

 

    16

     

    

  

(b)       Each Guarantor hereby agrees that its obligations hereunder shall be as if it were principal debtor and not merely surety and shall
be absolute, full and unconditional, unaffected by, and irrespective of, any invalidity, irregularity or unenforceability of the
Notes, the Base Indenture or this Supplemental Indenture, any failure to enforce the provisions of the Notes, the Base Indenture
or this Supplemental Indenture, any waiver, modification or indulgence granted to the Company with respect thereto by the Holders
of the Notes or the Trustee, or any other circumstance which may otherwise constitute a legal or equitable discharge of a surety
or guarantor (except payment in full).  Each Guarantor hereby waives diligence, presentment, demand of payment, filing of
claims with a court in the event of merger or bankruptcy of the Company, any right to require that the Trustee pursue or exhaust
its legal or equitable remedies against the Company prior to exercising its rights under a Guarantee (including, for the avoidance
of doubt, any right which a Guarantor may have to require the seizure and sale of the assets of the Company to satisfy the outstanding
principal of, interest on or any other amount payable under the Notes prior to recourse against such Guarantor or its assets),
protest or notice with respect to the Notes or the Debt evidenced thereby and all demands whatsoever, and covenants that its Guarantee
will not be discharged with respect to the Notes except by payment in full of the principal thereof and interest thereon or as
otherwise provided in the Base Indenture or in this Supplemental Indenture, including Section 8.4.  If at any time any
payment of principal of (and premium, if any) and interest on the Notes is rescinded or must be otherwise restored or returned
upon the insolvency, bankruptcy or reorganization of any Guarantor’s obligations hereunder with respect to such payment shall
be reinstated as of the date of such rescission, restoration or return as though such payment had become due but had not been made
at such times.

 

Neither a failure nor a delay on the part
of either the Trustee or the Holders of the Notes in exercising any right, power or privilege under this Article VIII shall
operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise of any right,
power or privilege.  The rights, remedies and benefits of the Trustee and the Holders of the Notes expressed in this Article VIII
are cumulative and exclusive of any other rights, remedies or benefits that either may have under this Article VIII at law,
in equity, by statute or otherwise.

 

(c)       Each Guarantor also agrees to pay any and all costs and expenses (including reasonable attorneys’ fees) incurred by the Trustee
or any Holder of the Notes in enforcing any rights under this Section 8.1.

 

(d)       Upon request of the Trustee, each Guarantor shall execute and deliver such instruments and do such further acts as may be reasonably
necessary to give effect to this Supplemental Indenture.

 

SECTION 8.2 Subrogation.

 

(a)       Each Guarantor shall be subrogated to all rights of the Holders of the Notes against the Company in respect of any amounts paid
to such Holders of the Notes by such Guarantor pursuant to the provisions of its Guarantee.

 

(b)       Each Guarantor agrees that it shall not be entitled to any right of subrogation in relation to the Holders of the Notes in respect
of any Obligations guaranteed hereby until payment in full of all Obligations.  Each Guarantor further agrees that, as between
it, on the one hand, and the Holders of the Notes and the Trustee, on the other hand, (x) the maturity of the Obligations
guaranteed hereby may be accelerated as provided in Section 502 of the Base Indenture for the purposes of the Guarantees herein,
notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Obligations guaranteed
hereby, and (y) in the event of any declaration of acceleration of such Obligations as provided in Section 502 of the
Base Indenture, such Obligations shall forthwith become due and payable by the Guarantor for the purposes of this Section 8.2.

 

SECTION 8.3 Release of Guarantees.
A Guarantee of a Guarantor shall be automatically and unconditionally released, and the Guarantor that granted such Guarantee shall
be automatically and unconditionally released from its Obligations:

 

(a)       in the event that all of the capital stock or other equity interests, or all or substantially all of the assets, of such Guarantor
are sold or transferred, including by way of merger, consolidation or otherwise, in a transaction in compliance with the terms
of the Indenture;

 

(b)       upon defeasance as provided in Sections 7.01 and 7.02 or satisfaction and discharge of the Indenture as provided in Article 4 of
the Base Indenture;

 

(c)       upon redemption of the Notes as provided in Section 3.2; or

 

    17

     

    

  

(d)          
upon release of such Guarantor’s Guarantee of all indebtedness under the Credit Agreement other than a release by or as a
result of payment under such Guarantee.

 

SECTION 8.4 Limitation and Effectiveness
of Guarantees. Each Guarantee is limited to an amount not to exceed the maximum amount that can be guaranteed by such Guarantor
that gave such Guarantee without rendering such Guarantee, as it relates to such Guarantor, voidable under applicable law relating
to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally or the maximum amount
otherwise permitted by law.

 

SECTION 8.5 Notation not Required.
Each Guarantor hereby agrees that its Guarantee set forth in Section 8.1 shall remain in full force and effect notwithstanding
the absence of the endorsement of any notation of such Guarantee on the Notes.

 

ARTICLE IX

METHODS OF RECEIVING PAYMENTS ON THE NOTES

 

SECTION 9.1 Methods of Receiving Payments
on the Notes. With respect to Notes represented by global notes, the Company will pay all principal, interest and premium,
if any, on such Notes in accordance with the procedures of the depositary. If a Holder of Notes has given wire transfer instructions
to the Company, the Company will pay all principal, interest and premium, if any, on that Holder’s Notes in accordance with
those instructions. All other payments on Notes will be made at the office or agency of the Paying Agent and Registrar unless the
Company elects to make interest payments by check mailed to the Holders of the Notes at their address set forth in the register
of Holders.

 

ARTICLE X

MISCELLANEOUS

 

SECTION 10.1 Term Defined. For all purposes
of this Supplemental Indenture, except as otherwise defined or unless the context otherwise requires, terms used in capitalized
form in this Supplemental Indenture and defined in the Indenture have the meanings specified in the Indenture.

 

SECTION 10.2 Indenture. Except as amended
hereby, the Indenture and the Notes are in all respects ratified and confirmed and all the terms shall remain in full force and
effect.

 

SECTION 10.3 Governing Law. This supplemental
indenture shall be governed by and construed in accordance with the laws of the State of New York.

 

SECTION 10.4 Successors. All agreements
of the Company and each Guarantor in this Supplemental Indenture and the Notes shall bind its successors. All agreements of the
Trustee in this Supplemental Indenture and the Notes shall bind its successors.

 

SECTION 10.5 Multiple Counterparts.
This Supplemental Indenture may be signed in any number of counterparts each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same Supplemental Indenture.

 

SECTION 10.6 Effectiveness. The provisions
of this Supplemental Indenture will take effect immediately upon its execution and delivery by the Trustee in accordance with the
provisions of Section 903 of the Base Indenture.

 

SECTION 10.7 Trustee Disclaimer. The
Trustee accepts the amendment of the Indenture effected by this Supplemental Indenture and agrees to execute the trust created
by the Indenture as hereby amended, but only upon the terms and conditions set forth in the Indenture, including the terms and
provisions defining and limiting the liabilities and responsibilities of the Trustee, which terms and provisions shall in like
manner define and limit its liabilities and responsibilities in the performance of the trust created by the Indenture as hereby
amended, and without limiting the generality of the foregoing, the Trustee shall not be responsible in any manner whatsoever for
or with respect to any of the recitals or statements contained herein, all of which recitals or statements are made solely by the
Company and the Guarantors, or for or with respect to (i) the validity or sufficiency of this Supplemental Indenture or any of
the terms or provisions hereof, (ii) the proper authorization hereof by the Company and each Guarantor by corporate action or otherwise,
(iii) the due execution hereof by the Company and each Guarantor, (iv) the consequences (direct or indirect and whether deliberate
or inadvertent) of any amendment herein provided for, and the Trustee makes no representation with respect to any such matters.

 

[Signatures on following page]

 

    18

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Supplemental Indenture to be duly executed as of the date first above written.

 

 

	 	HILLENBRAND, INC.
	 	 	 
	 	By:	/s/ Theodore S. Haddad, Jr.
	 	 	Name: Theodore S. Haddad, Jr.
	 	 	Title:  Vice President and Treasurer
	 	 	 
	 	 	 
	 	U.S. Bank National Association,
	 	as Trustee
	 	 	 
	 	By:	/s/ Sharon P. Karst
	 	 	Name: Sharon P. Karst
	 	 	Title: Vice President

 

[Signature page to the Supplemental Indenture]

 

     

     

    

 

	 	BATESVILLE CASKET COMPANY, INC.
	 	 	 
	 	By:	/s/ Theodore S. Haddad, Jr.
	 	 	Name: Theodore S. Haddad, Jr.
	 	 	Title: Vice President and Treasurer
	 	 	 
	 	 	 
	 	BATESVILLE MANUFACTURING, INC.
	 	 	 
	 	By:	/s/ Theodore S. Haddad, Jr.
	 	 	Name: Theodore S. Haddad, Jr.
	 	 	Title: Vice President and Treasurer
	 	 	 
	 	 	 
	 	BATESVILLE SERVICES, INC.
	 	 	 
	 	By:	/s/ Theodore S. Haddad, Jr.
	 	 	Name: Theodore S. Haddad, Jr.
	 	 	Title: Vice President and Treasurer
	 	 	 
	 	 	 
	 	K-TRON INVESTMENT CO.
	 	 	 
	 	By:	/s/ Theodore S. Haddad, Jr.
	 	 	Name: Theodore S. Haddad, Jr.
	 	 	Title: Assistant Treasurer
	 	 	 
	 	 	 
	 	TERRASOURCE GLOBAL CORPORATION
	 	 	 
	 	By:	/s/ Theodore S. Haddad, Jr.
	 	 	Name: Theodore S. Haddad, Jr.
	 	 	Title: Assistant Treasurer
	 	 	 
	 	 	 
	 	PROCESS EQUIPMENT GROUP, INC.
	 	 	 
	 	By:	/s/ Theodore S. Haddad, Jr.
	 	 	Name: Theodore S. Haddad, Jr.
	 	 	Title: Treasurer

 

     

     

    

 

	 	ROTEX GLOBAL, LLC
	 	 	 
	 	By:	/s/ Theodore S. Haddad, Jr.
	 	 	Name: Theodore S. Haddad, Jr.
	 	 	Title: Assistant Treasurer
	 	 	 
	 	 	 
	 	COPERION CORPORATION
	 	 	 
	 	By:	/s/ Theodore S. Haddad, Jr.
	 	 	Name: Theodore S. Haddad, Jr.
	 	 	Title: Vice President and Assistant Treasurer
	 	 	 
	 	 	 
	 	RED VALVE COMPANY, INC.
	 	 	 
	 	By:	/s/ Theodore S. Haddad, Jr.
	 	 	Name: Theodore S. Haddad, Jr.
	 	 	Title: Assistant Treasurer
	 	 	 
	 	 	 
	 	COPERION K-TRON PITMAN, INC.
	 	 	 
	 	By:	/s/ Theodore S. Haddad, Jr.
	 	 	Name: Theodore S. Haddad, Jr.
	 	 	Title: Assistant Treasurer

 

     

     

    

 

EXHIBIT A

(Face of Note)

4.500% Senior Notes due 2026

 

[Insert Global Note Legend, if applicable,
pursuant to the provisions of the Indenture]

 

HILLENBRAND, INC.

4.500% SENIOR NOTES DUE 2026

 

	 	 	 	 	 
	No. [  ]	 	 	 	CUSIP: [ • ] 
	 	 	 	 	ISIN:  [ • ]

 

Hillenbrand, Inc., an Indiana corporation, or its successor,
promises to pay to Cede & Co., or registered assigns, the principal sum of [ • ] Dollars ($[ • ]),
or such other amount as provided on the “Schedule of Principal Amount” attached as Schedule A hereto, on September
15, 2026.

 

Interest Payment Dates: March 15 and September 15 of each year,
beginning on March 15, 2020.

 

Regular Record Dates: March 1 and September 1

 

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

 

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

 

    	 	A-1	 

     

    

 

In WITNESS HEREOF, the undersigned has caused this instrument
to be duly executed.

 

	 	Dated:
	 	 
	 	HILLENBRAND, INC.
	 	 	 
	 	By:	

	 	 	Name: Theodore S. Haddad, Jr.
	 	 	Title: Vice President and Treasurer

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series designated therein

referred to in the within-mentioned Indenture:

 

	 	Date of Authentication: 

 

	U.S. Bank National Association,	 
	  as Trustee	 
	 	 	 
	By:	
	 
	 	Authorized Officer	 

 

    	 	A-2	 

     

    

 

(Reverse of Note)

4.500% Senior Notes due 2026

HILLENBRAND, INC.

 

Capitalized terms used herein shall have the meanings assigned
to them in the Indenture referred to below unless otherwise indicated.

 

(1) Interest. Hillenbrand, Inc., an Indiana corporation,
or its successor (together, the “Company”), promises to pay interest on the principal amount of this Note (the
“Notes”) at a fixed rate of 4.500% per annum. The Company will pay interest in United States dollars
semi-annually in arrears on March 15 and September 15 of each year, commencing March 15, 2020 or, if any such day is not a Business
Day, on the next succeeding Business Day (each an “Interest Payment Date”). Interest on the Notes shall accrue
from the most recent date to which interest has been paid or, if no interest has been paid, from and including September 25, 2019;
provided that if there is no existing Default or Event of Default in the payment of interest, and if this Note is authenticated
between a Regular Record Date referred to on the face hereof and the next succeeding Interest Payment Date (but after September
25, 2019), interest shall accrue from such next succeeding Interest Payment Date, except in the case of the original issuance of
the Notes, in which case interest shall accrue from the date of authentication. Interest shall be computed on the basis of a 360-day
year comprised of twelve 30-day months. The interest rate on the Notes will in no event be higher than the maximum rate permitted
by New York law as the same may be modified by United States law of general application.

 

(2) Interest Rate Adjustment. The interest rate payable
on the Notes may be subject to adjustments from time to time if either of the Interest Rate Rating Agencies or a Substitute Rating
Agency downgrades (or downgrades and subsequently upgrades) the credit rating assigned to the Notes, as set forth below and in
Section 2.03 of the Supplemental Indenture. If either of the Interest Rate Rating Agencies ceases to rate the Notes or fails to
make a rating the Notes publicly available for reasons outside of the Company’s control, the Company shall select a Substitute
Rating Agency.

 

If the rating of the Notes from any one or more of the Interest
Rate Rating Agencies (or, if applicable, any Substitute Rating Agency) is decreased to a rating set forth in the immediately following
tables, the interest rate on the Notes will increase from the interest rate set forth on the cover page of the Prospectus Supplement
by an amount equal to the percentage set forth opposite the ratings from the tables below:

 

	Moody’s Rating*	 	Percentage	 
	Ba1	 	 	0.25	%
	Ba2	 	 	0.50	%
	Ba3	 	 	0.75	%
	B1 or below	 	 	1.00	%

 

	S&P Rating*	 	Percentage	 
	BB+	 	 	0.25	%
	BB	 	 	0.50	%
	BB-	 	 	0.75	%
	B+ or below	 	 	1.00	%

 

* Including the equivalent ratings of any
Substitute Rating Agency therefor.

 

If at any time only one Interest Rate Rating Agency provides
a rating of the Notes the Company shall use commercially reasonable efforts to obtain a rating of the Notes from a Substitute Rating
Agency, to the extent one exists, and if a Substitute Rating Agency exists, for purposes of determining any increase or decrease
in the interest rate on such Notes pursuant to the tables in Section 2.3(b) of the Supplemental Indenture, (1) such Substitute
Rating Agency will be substituted for the last Interest Rate Rating Agency to provide a rating of the Notes but which has since
ceased to provide such rating, (2) the relative rating scale used by such Substitute Rating Agency to assign ratings to senior
unsecured debt will be determined in good faith by an independent investment banking institution of national standing appointed
by the Company and, for purposes of determining the applicable ratings included in the applicable table in Section 2.3(b) of the
Supplemental Indenture with respect to such Substitute Rating Agency, such ratings shall be deemed to be the equivalent ratings
used by S&P or Moody’s, as applicable, in such table, and (3) the interest rate on the Notes will increase or decrease,
as the case may be, such that the interest rate equals the interest rate payable on the Notes as set forth on the cover page of
the Prospectus Supplement plus the appropriate percentage, if any, set forth opposite the rating from such Substitute Rating Agency
in the applicable table in Section 2.3(b) of the Supplemental Indenture (taking into account the provisions of Section 2.3(c) of
the Supplemental Indenture) (plus any applicable percentage resulting from a decreased rating by another Interest Rate Rating Agency).

 

    	 	A-3	 

     

    

 

For so long as only one Interest Rate Rating Agency provides
a rating of the Notes, any subsequent increase or decrease in the interest rate of the Notes necessitated by a reduction or increase
in the rating by that Interest Rate Rating Agency shall be twice the applicable percentage set forth in the applicable table in
Section 2.3(b) of the Supplemental Indenture. For so long as no Interest Rate Rating Agency (or a Substitute Rating Agency therefor)
provides a rating of the Notes, the interest rate on the Notes will increase to, or remain at, as the case may be, 2.00% per annum
above the interest rate payable on the Notes on the date of their initial issuance.

 

Each interest rate adjustment required by any downgrade or upgrade
in a rating as set forth above, whether occasioned by the action of an Interest Rate Rating Agency (or a Substitute Rating Agency
therefor), shall be made independently of (and in addition to) any and all other interest rate adjustments occasioned by the action
of another Interest Rate Rating Agency. In no event shall (1) the interest rate for the Notes be reduced to below the interest
rate payable on the Notes on the date of their initial issuance or (2) the total increase in the interest rate on the Notes exceed
2.00% above the interest rate payable on the Notes on the date of their initial issuance.

 

Except as set forth in Sections 2.3 (a)-(e) of the Supplemental
Indenture, no adjustment in the interest rate on the Notes shall be made solely as a result of an Interest Rate Rating Agency ceasing
to provide a rating of the Notes. If at any time the interest rate on the Notes has been adjusted upward and any of the Interest
Rate Rating Agencies (or any Substitute Rating Agency therefor), as the case may be, subsequently upgrades its rating of the Notes
to or above any of the threshold ratings set forth in Sections 2.3(a)-(e) of the Supplemental Indenture, the interest rate on the
Notes will again be adjusted (and decreased, if appropriate) such that the interest rate for the Notes equals the interest rate
payable on the Notes on the date of their initial issuance plus (if applicable) an amount equal to the percentages per annum set
forth opposite the ratings in the tables in Section 2.3(b) of the Supplemental Indenture with respect to the ratings assigned to
the Notes (based on the gradations set forth in the tables in Section 2.3(b) of the Supplemental Indenture) at that time, including
the ratings given by such Interest Rate Rating Agency. For the avoidance of doubt, if at any time after an interest rate adjustment
has occurred the Interest Rate Rating Agencies (or any Substitute Rating Agency therefor) have assigned ratings to the Notes of
Baa3 or BBB- (or its equivalent if with respect to any Substitute Rating Agency) or higher, as the case may be, the interest rate
payable on the Notes will be decreased to the interest rate payable on the Notes on the date of their initial issuance.

 

Any interest rate increase or decrease described in Section
2.3 of the Supplemental Indenture will take effect from the first interest payment date following the date on which a rating change
occurs requiring an adjustment in the interest rate. As such, interest will not accrue at such increased or decreased rate until
the next interest payment date following the date on which a rating change occurs. If an Interest Rate Rating Agency (or a Substitute
Rating Agency therefor) changes its rating of the Notes more than once prior to any particular interest payment date, the last
such change by such agency prior to such interest payment date will control in the event of a conflict for purposes of any increase
or decrease in the interest rate with respect to the Notes described above relating to such Interest Rate Rating Agency’s
action.

 

The interest rate on the Notes will permanently cease to be
subject to any adjustment described in Section 2.3 of the Supplemental Indenture (notwithstanding any subsequent downgrade in the
rating by any Interest Rate Rating Agency) if the Notes become rated Baa1 or higher by Moody’s (or its equivalent if with
respect to any Substitute Rating Agency) and BBB+ or higher by S&P (or its equivalent if with respect to any Substitute Rating
Agency), as the case may be.

 

If the interest rate payable on the Notes is increased as described
in Section 2.3 of the Supplemental Indenture, the term “interest,” as used with respect to the Notes, will be deemed
to include any such additional interest unless the context otherwise requires.

 

(3) Method of Payment. The Company will pay interest
on the Notes (except defaulted interest, if any) on the applicable Interest Payment Date to the Persons who are registered Holders
of the Notes at the close of business on the Regular Record Date immediately preceding the relevant Interest Payment Date, even
if such Notes are cancelled after such Regular Record Date and on or before such Interest Payment Date, except as provided in Section 301
of the Base Indenture with respect to defaulted interest. The Notes shall be payable as to principal, premium and interest at the
office or agency of the Company maintained for such purpose, which, initially, will be the corporate trust office of the Trustee
located at U.S. Bank National Association, 60 Livingston Avenue, St. Paul, Minnesota 55107, or, at the option of the Company, payment
of interest may be made by check mailed to the Holders of the Notes at their addresses set forth in the register of Holders; provided
that payment by wire transfer of immediately available funds shall be required with respect to principal of, premium, if any, and
interest on, all Global Notes and all other Notes the Holders of which shall have provided written wire transfer instructions to
the Company and the Paying Agent (as described below). Such payment shall be in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts.

 

    	 	A-4	 

     

    

 

Any payments of principal of and interest on this Note prior
to Stated Maturity shall be binding upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. The amount due and payable at the maturity of this
Note shall be payable only upon presentation and surrender of this Note at an office of the Trustee or the Trustee’s agent
appointed for such purposes.

 

(4) Paying Agent and Registrar. Initially, U.S. Bank
National Association, the Trustee under the Indenture with respect to the Notes, shall act as Paying Agent and registrar. The Company
may change any Paying Agent or registrar without notice to any Holder. The Company or any of its Subsidiaries may act in any such
capacity.

 

(5) Indenture. The Company issued the Notes under
an indenture dated as of July 9, 2010 (the “Base Indenture,”), a supplemental indenture, dated as of
January 10, 2013 (the “First Supplemental Indenture”), a second supplemental indenture, dated as of April
15, 2016 (the “Second Supplemental Indenture”) and a third supplemental indenture, dated as of September
25, 2019 (the “Supplemental Indenture,” and together with the Base Indenture, the First Supplemental
Indenture and the Second Supplemental Indenture, the “Indenture”), between the Company and the Trustee.
The terms of the Notes include those stated in the Indenture and those made a part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”). To the extent
the provisions of this Note are inconsistent with the provisions of the Indenture, the Indenture shall govern. The Notes are
subject to all such terms, and Holders of the Notes are referred to the Indenture and the TIA for a statement of such terms.
The Trustee shall have no obligation to calculate or verify the calculation of the present value of the Remaining Scheduled
Payments, the Treasury Rate or any aspect of such calculations.

 

(6) Sinking Fund. The Company shall not be required to
make sinking fund payments with respect to the Notes.

 

(7) Special Mandatory Redemption.

 

The Company shall redeem all of the outstanding Notes at a redemption
price equal to 101% of the aggregate principal amount of the Notes being redeemed, plus accrued and unpaid interest to, but not
including, the Special Mandatory Redemption Date (the “Special Mandatory Redemption Price”), if:

 

(1)       the
Merger is not consummated on or prior to July 6, 2020; or

 

(2)       the
Merger Agreement is terminated at any time before July 6, 2020.

 

In the event that the Company is required to redeem the Notes
pursuant to Section 3.1(a) of the Supplemental Indenture, the Company shall cause the notice of special mandatory redemption to
be delivered to each registered Holder of the Notes, with a copy to the Trustee, within five business days after the occurrence
of the event triggering the special mandatory redemption.

 

In the event that funds sufficient to pay the Special Mandatory
Redemption Price of all the Notes to be redeemed on the Special Mandatory Redemption Date are deposited with the Trustee on or
prior to such Special Mandatory Redemption Date, plus accrued and unpaid interest, if any, to, but excluding, the Special Mandatory
Redemption Date, such Notes will cease to bear interest and all rights under such Notes shall terminate (other than in respect
of the right to receive the Special Mandatory Redemption Price, plus accrued and unpaid interest to, but excluding, the Special
Mandatory Redemption Date).

 

    	 	A-5	 

     

    

 

(8) Optional Redemption.

 

Except as set forth below, the Company shall not be entitled
to redeem the Notes at its option.

 

Prior to July 15, 2026 (the “Par Call Date”)
the Notes will be redeemable in whole at any time or in part from time to time, at the option of the Company, on at least 10 but
not more than 60 days’ prior notice (the date of any such redemption, a “Redemption Date”), at a redemption
price equal to the greater of (i) 100% of the principal amount of the Notes being redeemed and (ii) the sum of the present
values of the Remaining Scheduled Payments on the Notes being redeemed on the applicable Redemption Date, discounted to such Redemption
Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined herein)
plus 45 basis points, plus, in each case, accrued and unpaid interest on the Notes being redeemed to, but not including, the Redemption
Date. On or after the Par Call Date, the Company may on any one or more occasions redeem all or a part of the Notes, at its option,
on at least 10 but not more than 60 days prior notice, at a redemption price equal to 100% of the principal amount of the Notes
being redeemed, plus accrued and unpaid interest on such Notes being redeemed to, but not including, the Redemption Date. Unless
the Company defaults in payment of the redemption price, on and after the Redemption Date interest will cease to accrue on the
Notes or portions of the Notes called for redemption and those Notes will cease to be outstanding.

 

“Comparable Treasury Issue” means the United
States Treasury security selected by an Independent Investment Banker as having a maturity date comparable to the remaining term
of the Notes (as measured from the date of redemption and assuming for this purpose that the Notes matured on the Par Call Date)
that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the Notes.

 

“Comparable Treasury Price” means, with respect
to any redemption date, (i) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the
highest and lowest of such Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than
five such Reference Treasury Dealer Quotations, the average of all Quotations obtained. 

 

“Independent Investment Banker” means one
of the Reference Treasury Dealers appointed by the Company.

 

“Reference Treasury Dealer” means J.P. Morgan
Securities Inc. and Wells Fargo Securities, LLC, its successors and assigns and four other nationally recognized investment banking
firms that are Primary Treasury Dealers specified from time to time by the Company, except that if any of the foregoing ceases
to be a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), the Company may
designate as a substitute another nationally recognized investment banking firm that is a Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations” means,
with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Independent Investment
Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer as of 3:30 p.m., New York City
time, on the third business day preceding such redemption date.

 

On and after any redemption date, interest will cease to accrue
on the Notes called for redemption. Prior to any redemption date, the Company is required to deposit with the Trustee or with a
paying agent money sufficient to pay the redemption price of, and accrued interest on, the Notes to be redeemed on such date. If
the Company is redeeming less than all the Notes , the Trustee under the indenture must select the Notes to be redeemed by such
method as the Trustee deems fair and appropriate in accordance with methods generally used at the time of selection by fiduciaries
in similar circumstances.

 

    A-6

     

    

  

“Remaining Scheduled Payments” means, with
respect to any Note, the remaining scheduled payments of the principal and interest thereon that would be due if such Notes matured
on the Par Call Date (excluding accrued but unpaid interest to the related redemption date).

 

“Treasury Rate” means, with respect to any
redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the second business day
immediately preceding such redemption date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for such redemption date.

 

(9) Denominations, Transfer, Exchange. The Notes are
in registered form without coupons in initial denominations of $2,000 and any integral multiple of $1,000 in excess thereof. The
transfer of the Notes may be registered and the Notes may be exchanged as provided in the Indenture. The registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Company may require
a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed
in part. Also, it need not transfer or exchange any Notes for a period of 15 days before a selection of Notes to be redeemed.

 

(10) Persons Deemed Owners. The registered Holder of
a Note may be treated as its owner for all purposes.

 

(11) Defaults and Remedies.

 

(A)          Each
of the following constitutes an “Event of Default”:

 

(1)          default in any
payment of interest on any Note when due, and the continuance of such default for 30 days;

 

(2)          default in the
payment of principal of, or premium, if any, on the Notes when due and payable;

 

(3)          default for 60
days after written notice specifying the default from the Trustee or Holders of at least 25% of the aggregate principal amount
of the then outstanding Notes to comply with any other agreement in the Indenture not specified above;

 

(4)          an event of default
under any indenture or instrument under which the Company or any Significant Subsidiary has outstanding at least $100,000,000 aggregate
principal amount of indebtedness for money borrowed, which results in the acceleration of that indebtedness where the acceleration
is not rescinded or annulled within 30 days after notice pursuant to the Indenture has been provided; or

 

(5)          an Event of Default
under Section 501(f) or Section 501(g) of the Base Indenture in respect of the Company or any Significant Subsidiary has occurred.

 

(B)           The
Trustee may withhold notice to the Holders of the Notes of any default, except with respect to the payment of principal, premium
or interest, if it considers such withholding of notice in the interest of such Holders.

 

(C)           If an Event of Default (other than an Event of Default described in in clause (A)(5) above or Section
5.1(a)(5) of the Supplemental Indenture with respect to the Company) occurs and is continuing, the Trustee by notice in
writing specifying the Event of Default to the Company, or the Holders of at least 25% in aggregate principal amount of the
then outstanding Notes by notice to the Company and the Trustee, may declare the principal of, premium, if any, and accrued
and unpaid interest, if any, on all the Notes to be due and payable. Upon such a declaration, such principal, premium, if
any, and accrued and unpaid interest, if any, will be due and payable immediately.

 

(D)           If
an Event of Default described in clause (A)(5) above or Section 5.1(a)(5) of the Supplemental Indenture occurs and is continuing
with respect to the Company, the principal of, premium, if any, and accrued and unpaid interest, if any, on all the Notes will
become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holders of
the Notes.

 

    A-7

     

    

  

(E)            If
an Event of Default occurs and is continuing, the Trustee will be under no obligation to exercise any of the rights or powers under
the Indenture or the Notes at the request or direction of any of the Holders of the Notes unless
such Holders have offered to the Trustee indemnity or security satisfactory to it against any costs, liability and expenses, except
to enforce the right to receive payment of principal, premium, if any, and interest, if any, when due.

(F)           The
Holders of a majority in aggregate principal amount of the then outstanding Notes are given the right to direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on
the Trustee, with respect to such Notes.

 

(G)           No
Holder may pursue any remedy with respect to the Indenture or the Notes unless:

 

(1)          such Holder has
previously given the Trustee notice that an Event of Default is continuing;

 

(2)          the Holders of
at least 25% in aggregate principal amount of the then outstanding Notes have requested the Trustee to pursue the remedy;

 

(3)          such Holders
have offered the Trustee security or indemnity satisfactory to the Trustee against any costs, liability and expenses to be incurred
in compliance with such request;

 

(4)          the Trustee has
not complied with such request within 60 days after the receipt of the request and the offer of security or indemnity; and

 

(5)          the Holders of
a majority in aggregate principal amount of the then outstanding Notes have not given the Trustee a direction that is inconsistent
with such request within such 60-day period.

 

(K)          
In the event an Event of Default has occurred and is continuing, the Trustee shall be required, in the exercise of its
powers, to use the degree of care that a prudent person would use under the circumstances in the conduct of his or her own
affairs. The Trustee, however, may refuse to follow any direction that conflicts with law or the Indenture or the Notes or
that the Trustee determines in good faith is unduly prejudicial to the rights of any other Holder (it being understood that
the Trustee does not have an affirmative duty to ascertain whether or not such directions are unduly prejudicial to such
Holders) or that would involve the Trustee in personal liability. Prior to taking any action under the Indenture, the Trustee
will be entitled to security or indemnification satisfactory to it in its sole discretion against all costs, liability and
expenses caused by taking or not taking such action.

 

(L)           The
Holders of a majority in aggregate principal amount of the then outstanding Notes may on behalf of the Holders of all the Notes
rescind any acceleration or waive any existing or past defaults and its consequences under the Indenture, if (1) rescission would
not conflict with any judgment or decree of a court of competent jurisdiction and (2) all existing Events of Default, other than
the nonpayment of the principal of, premium, if any, and interest on the Notes that have become due solely by such declaration
of acceleration, have been cured or waived, except that each Holder of the Notes affected by a default must consent to a waiver
of:

(1)          a default in
payment of the principal of, or premium, if any, or interest, if any, on the Notes; and

 

(2)          a default in
respect of a covenant or provision of the Indenture that cannot be amended or modified without the consent of each Holder of the
Notes .

 

(M)          The
Company will furnish to the Trustee annual statements as to the fulfillment of the Company’s obligations under the Indenture.

 

(12) Trustee Dealings with the Company. The Trustee,
in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its affiliates,
and may otherwise deal with the Company or its affiliates, as if it were not the Trustee.

 

(13) No Recourse Against Others. No director, officer,
employee, stockholder or other affiliate of the Company or any Guarantor, as such or in such capacity, shall have any personal
liability for any obligations of the Company or the Guarantors under the Notes, the Indenture, the subsidiary guarantees, or for
any claim based on, in respect of, or by reason of, such obligations or their creation, by reason of his, her or its status as
such director, officer, employee, stockholder or other affiliate. Each Holder of the Notes by accepting the Note waives and releases
all such liability. The waiver and release are part of the consideration for the issuances of the Notes.

 

    A-8

     

    

  

No recourse may, to the full extent permitted by applicable
law, be taken, directly or indirectly, with respect to the obligations of the Company or under the Indenture or any related documents,
any certificate or other writing delivered in connection therewith, against (i) the Trustee in its individual capacity, or
(ii) any partner, owner, beneficiary, agent, officer, director, employee, agent, successor or assign of the Trustee, each
in its individual capacity, or (iii) any Holder of equity in the Trustee.

 

(14) Authentication. This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating agent.

 

(15) Abbreviations. Customary abbreviations may be used
in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act).

 

(16) CUSIP and ISIN Numbers. Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP and ISIN numbers to be
printed on the Notes and the Trustee may use CUSIP, ISIN or other similar numbers in notices of redemption as a convenience to
the Holders of the Notes. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained
in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

 

(17) GOVERNING LAW; WAIVER OF TRIAL BY JURY. THE INDENTURE
AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EACH OF THE COMPANY, THE
TRUSTEE and each Holder by accepting a Security IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE
INDENTURE OR THE TRANSACTIONS CONTEMPLATED THEREBY.

 

The Company shall furnish to any Holder upon written request
and without charge a copy of the Indenture. Requests may be made to:

 

Hillenbrand, Inc.

One Batesville Boulevard, Batesville, Indiana 47006

Attention: Secretary

Facsimile No.: (812) 931-5209

 

    A-9

     

    

  

ASSIGNMENT FORM

 

To assign this Note, fill in the form below: (I) or (we)
assign and transfer this Note to

 

	 
	
 

	(Insert assignee’s soc. sec. or tax I.D. no.)
	 
	
 

	 
	
 

	 
	
 

	(Print or type assignee’s name, address and zip code)

 

	 	 
	and irrevocably appoint	
 

	to transfer this Note on the books of the Company.  The agent may substitute another to act for him.

 

	Date:	 	 
	 	 
	 	 	Your Signature: 
	 	 	(Sign exactly as your name appears on the face of

 this Note)

 

	Signature guarantee: 

 

(Signature must be guaranteed by a participant in a recognized
signature guarantee medallion program)

 

    A-10

     

    

  

SCHEDULE A

 

SCHEDULE OF PRINCIPAL AMOUNT

 

The following decreases or increases in the principal amount
of this Global Note have been made:

 

	Date of Decrease 

or Increase 	 	Amount of
 Decrease in
 Principal Amount
 of this Global Note	 	Amount of
 Increase in
 Principal Amount
 of this Global Note	 	Principal Amount
 of this Global Note
 Following Such
 Decrease (or
 Increase)	 	Signature of
 Authorized Officer
 of Trustee or Note
 Custodian
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

    A-11Exhibit 10.1

 

APREA THERAPEUTICS, INC.

 

2019 EQUITY INCENTIVE PLAN

 

ADOPTED BY THE BOARD OF DIRECTORS: [  ], 2019
 APPROVED BY THE STOCKHOLDERS: [  ], 2019
 TERMINATION DATE: [  ], 2029

 

I.  INTRODUCTION

 

1.1                               PURPOSES.  The purposes of the Aprea Therapeutics, Inc. 2019 Equity Incentive Plan (this “Plan”) are (i) to align the interests of the Company’s stockholders and the recipients of awards under this Plan by increasing the proprietary interest of such recipients in the Company’s growth and success, (ii) to advance the interests of the Company by attracting and retaining Non-Employee Directors, officers, other employees, consultants, independent contractors and agents and (iii) to motivate such persons to act in the long-term best interests of the Company and its stockholders.

 

1.2                               CERTAIN DEFINITIONS.

 

“Agreement” means the written or electronic agreement evidencing an award hereunder between the Company and the recipient of such award.

 

“Board” means the Board of Directors of the Company.

 

“Change in Control” has the meaning set forth in Section 5.8(a).

 

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

 

“Committee” means the Compensation Committee of the Board, or a subcommittee thereof, or such other committee designated by the Board, in each case, consisting of two or more members of the Board, each of whom is intended to be (i) a “Non-Employee Director” within the meaning of Rule 16b-3 under the Exchange Act and (ii) “independent” within the meaning of the rules of NASDAQ or, if the Common Stock is not listed on NASDAQ, within the meaning of the rules of the principal stock exchange on which the Common Stock is then traded.

 

“Common Stock” means the common stock, par value $0.001 per share, of the Company, and all rights appurtenant thereto.

 

“Company” means Aprea Therapeutics, Inc., a Delaware corporation, or any successor thereto.

 

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

 

“Exchange Act Person” means any natural person, entity, or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person”

 

 

does not include: (i) the Company or any Subsidiary; (ii) any employee benefit plan of the Company or any  Subsidiary or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary; (iii) an underwriter temporarily holding securities pursuant to an offering of such securities; (iv) an entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company; or (v) any natural person, entity, or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the effective date of this Plan, is the owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities.

 

“Fair Market Value” means the closing transaction price of a share of Common Stock as reported on NASDAQ on the date as of which such value is being determined or, if the Common Stock is not listed on NASDAQ, the closing transaction price of a share of Common Stock on the principal national stock exchange on which the Common Stock is traded on the date as of which such value is being determined or, if there shall be no reported transactions for such date, on the next preceding date for which transactions were reported; provided, however, that if the Common Stock is not listed on a national stock exchange or if Fair Market Value for any date cannot be so determined, Fair Market Value shall be determined by the Committee by whatever means or method as the Committee, in the good faith exercise of its discretion, shall at such time deem appropriate and in compliance with Section 409A of the Code; provided, further, in the case of grants made in connection with the Initial Public Offering, Fair Market Value shall mean the price per share at which shares of Common Stock are initially offered for sale to the public by the Company’s underwriters in the Initial Public Offering.

 

“Free-Standing SAR” means a SAR which is not granted in tandem with, or by reference to, an option, which entitles the holder thereof to receive, upon exercise, shares of Common Stock (which may be Restricted Stock) or, to the extent set forth in the applicable Agreement, cash or a combination thereof, with an aggregate value equal to the excess of the Fair Market Value of one share of Common Stock on the date of exercise over the base price of such SAR, multiplied by the number of such SARs that are exercised.

 

“Incentive Stock Option” means an option to purchase shares of Common Stock that meets the requirements of Section 422 of the Code, or any successor provision, which is intended by the Committee to constitute an Incentive Stock Option.

 

“Initial Public Offering” means an initial public offering of the Common Stock of the Company registered on Form S-1 (or any successor form under the Securities Act of 1933, as amended).

 

“Non-Employee Director” means any member of the Board who is not an officer or employee of the Company or any Subsidiary.

 

“Nonstatutory Stock Option” means an option to purchase shares of Common Stock which is not an Incentive Stock Option.

 

“Other Stock Award” means an award granted pursuant to Section 3.4 of the Plan.

 

2

 

“Performance Award” means a right to receive an amount of cash, Common Stock, or a combination of both, contingent upon the attainment of specified Performance Measures within a specified Performance Period.

 

“Performance Measures” means the criteria and objectives, established by the Committee, which shall be satisfied or met (i) as a condition to the grant or exercisability of all or a portion of an option or SAR or (ii) during the applicable Restriction Period or Performance Period as a condition to the vesting of the holder’s interest, in the case of a Restricted Stock Award, of the shares of Common Stock subject to such award, or, in the case of a Restricted Stock Unit Award, Other Stock Award or Performance Award, to the holder’s receipt of the shares of Common Stock subject to such award or of payment with respect to such award.  Such criteria and objectives may include one or more of the following corporate-wide or subsidiary, division, operating unit, line of business, project, geographic or individual measures:  the attainment by a share of Common Stock of a specified Fair Market Value for a specified period of time; increase in stockholder value; earnings per share; return on or net assets; return on equity; return on investments; return on capital or invested capital; total stockholder return; earnings or income of the Company before or after taxes and/or interest; earnings before interest, taxes, depreciation and amortization (“EBITDA”); EBITDA margin; operating income; revenues; operating expenses, attainment of expense levels or cost reduction goals; market share; cash flow, cash flow per share, cash flow margin or free cash flow; interest expense; economic value created; gross profit or margin; operating profit or margin; net cash provided by operations; price-to-earnings growth; and strategic business criteria, consisting of one or more objectives based on meeting specified goals relating to publication, clinical or regulatory milestones, research and development achievements, market penetration, customer acquisition, business expansion, cost targets, customer satisfaction, reductions in errors and omissions, reductions in lost business, management of employment practices and employee benefits, supervision of litigation, supervision of information technology, quality and quality audit scores, efficiency,  acquisitions or divestitures, coverage decisions, licenses, collaborations, joint ventures or promotional arrangements and such other goals as the Committee may determine whether or not listed herein, or any combination of the foregoing.   Each such goal may be expressed on an absolute or relative basis and may include comparisons based on current internal targets, the past performance of the Company (including the performance of one or more subsidiaries, divisions, or operating units) or the past or current performance of other companies or market indices (or a combination of such past and current performance). In addition to the ratios specifically enumerated above, performance goals may include comparisons relating to capital (including, but not limited to, the cost of capital), shareholders’ equity, shares outstanding, assets or net assets, sales, or any combination thereof.  The applicable performance measures may be applied on a pre- or post-tax basis and may be adjusted to include or exclude components of any performance measure, including, without limitation, foreign exchange gains and losses, asset writedowns, acquisitions and divestitures, change in fiscal year, unbudgeted capital expenditures, special charges such as restructuring or impairment charges, debt refinancing costs, extraordinary or noncash items, unusual, infrequently occurring, nonrecurring or one-time events affecting the Company or its financial statements or changes in law or accounting principles (“Adjustment Events”). In the sole discretion of the Committee, the Committee may amend or adjust the Performance Measures or other terms and conditions of an outstanding award in recognition of any Adjustment Events. Performance Measures shall be subject to such other special rules and conditions as the Committee may establish at any time.

 

3

 

“Performance Period” means any period designated by the Committee during which (i) the Performance Measures applicable to an award shall be measured and (ii) the conditions to vesting applicable to an award shall remain in effect.

 

“Restricted Stock” means shares of Common Stock which are subject to a Restriction Period and which may, in addition thereto, be subject to the attainment of specified Performance Measures within a specified Performance Period.

 

“Restricted Stock Award” means an award of Restricted Stock under this Plan.

 

“Restricted Stock Unit” means a right to receive one share of Common Stock or, in lieu thereof and to the extent set forth in the applicable Agreement, the Fair Market Value of such share of Common Stock in cash, which shall be contingent upon the expiration of a specified Restriction Period and which may, in addition thereto, be contingent upon the attainment of specified Performance Measures within a specified Performance Period.

 

“Restricted Stock Unit Award” means an award of Restricted Stock Units under this Plan.

 

“Restriction Period” means any period designated by the Committee during which either (i) the Common Stock subject to a Restricted Stock Award may not be sold, transferred, assigned, pledged, hypothecated or otherwise encumbered or disposed of, except as provided in this Plan or the Agreement relating to such award, or (ii) the conditions to vesting applicable to a Restricted Stock Unit Award or Other Stock Award shall remain in effect.

 

“SAR” means a stock appreciation right, which may be a Free-Standing SAR or a Tandem SAR.

 

“Stock Award” means a Restricted Stock Award, Restricted Stock Unit Award or Other Stock Award.

 

“Subject Person” has the meaning set forth in Section 5.8(a)(1).

 

“Subsidiary” means any corporation, limited liability company, partnership, joint venture, or similar entity in which the Company owns, directly or indirectly, an equity interest possessing more than 50% of the combined voting power of the total outstanding equity interests of such entity.

 

“Substitute Award” means an award granted under this Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by a company or other entity in connection with a corporate transaction, including a merger, combination, consolidation, or acquisition of property or stock or upon the substitution of Nonstatutory Stock Options for options of Aprea Therapeutics AB in connection with the reorganization of Aprea Therapeutics AB; provided, however, that in no event shall the term “Substitute Award” be construed to refer to an award made in connection with the cancellation and repricing of an option or SAR.

 

“Tandem SAR” means an SAR which is granted in tandem with, or by reference to, an option (including a Nonstatutory Stock Option granted prior to the date of grant of the SAR), 

 

4

 

which entitles the holder thereof to receive, upon exercise of such SAR and surrender for cancellation of  all or a portion of such option, shares of Common Stock (which may be Restricted Stock) or, to the extent set forth in the applicable Agreement, cash or a combination thereof, with an aggregate value equal to the excess of the Fair Market Value of one share of Common Stock on the date of exercise over the base price of such SAR, multiplied by the number of shares of Common Stock subject to such option, or portion thereof, which is surrendered.

 

“Tax Date” has the meaning set forth in Section 5.5.

 

“Ten Percent Holder” has the meaning set forth in Section 2.1(a).

 

1.3                               ADMINISTRATION.  This Plan shall be administered by the Committee.  Any one or a combination of the following awards may be made under this Plan to eligible persons: (i) options to purchase shares of Common Stock in the form of Incentive Stock Options or Nonstatutory Stock Options; (ii) SARs in the form of Tandem SARs or Free-Standing SARs; (iii) Stock Awards in the form of Restricted Stock, Restricted Stock Units or Other Stock Awards; and (iv) Performance Awards.  The Committee shall, subject to the terms of this Plan, select eligible persons for participation in this Plan and determine the form, amount and timing of each award to such persons and, if applicable, the number of shares of Common Stock subject to an award, the number of SARs, the number of Restricted Stock Units, the dollar value subject to a Performance Award, the purchase price or base price associated with the award, the time and conditions of exercise or settlement of the award, and all other terms and conditions of the award, including, without limitation, the form of the Agreement evidencing the award.  The Committee may, in its sole discretion and for any reason at any time, take action such that (i) any or all outstanding options and SARs shall become exercisable in part or in full, (ii) all or a portion of the Restriction Period applicable to any outstanding awards shall lapse, (iii) all or a portion of the Performance Period applicable to any outstanding awards shall lapse and (iv) the Performance Measures (if any) applicable to any outstanding awards shall be deemed to be satisfied at the target, maximum or any other level.  The Committee shall, subject to the terms of this Plan, interpret this Plan and the application thereof, establish rules and regulations it deems necessary or desirable for the administration of this Plan, and may impose, incidental to the grant of an award, conditions with respect to the award, such as limiting competitive employment or other activities.  All such interpretations, rules, regulations and conditions shall be conclusive and binding on all parties.

 

The Committee may delegate some or all of its power and authority hereunder to the Board (or any members thereof) or, subject to applicable law, to a subcommittee of the Board, a member of the Board, the Chief Executive Officer or other executive officer of the Company as the Committee deems appropriate; provided, however, that the Committee may not delegate its power and authority to a member of the Board, the Chief Executive Officer or other executive officer of the Company with regard to the selection for participation in this Plan of an officer, director or other person subject to Section 16 of the Exchange Act or decisions concerning the timing, pricing or amount of an award to such an officer, director or other person.

 

No member of the Board or Committee, and neither the Chief Executive Officer nor any other executive officer to whom the Committee delegates any of its power and authority

 

5

 

hereunder, shall be liable for any act, omission, interpretation, construction or determination made in connection with this Plan in good faith, and the members of the Board and the Committee and the Chief Executive Officer or other executive officer shall be entitled to indemnification and  reimbursement by the Company in respect of any claim, loss, damage or expense (including attorneys’ fees) arising therefrom to the full extent permitted by law (except as otherwise may be provided in the Company’s Certificate of Incorporation and/or Bylaws) and under any directors’ and officers’ liability insurance that may be in effect from time to time.

 

1.4                               ELIGIBILITY.  Participants in this Plan shall consist of such officers, other employees, Non-Employee Directors, consultants, independent contractors, agents, and persons expected to become officers, other employees, Non-Employee Directors, consultants, independent contractors and agents of the Company and its Subsidiaries as the Committee in its sole discretion may select from time to time.  Participants shall also consist of persons to whom Nonstatutory Stock Options are granted in substitution for options of Aprea Therapeutics AB in connection with the reorganization of Aprea Therapeutics AB.  The Committee’s selection of a person to participate in this Plan at any time shall not require the Committee to select such person to participate in this Plan at any other time.  Except as otherwise provided for in an Agreement, for purposes of this Plan, references to employment by the Company shall also mean employment by a Subsidiary, and references to employment shall include service as a Non-Employee Director, consultant, independent contractor or agent.  The Committee shall determine, in its sole discretion, the extent to which a participant shall be considered employed during an approved leave of absence.  Notwithstanding anything herein to the contrary, the aggregate value of cash compensation to be paid and the grant date fair value of equity awards that may be granted during any fiscal year of the Company to any Non-Employee Director shall not exceed $500,000; provided, however, such limit shall be multiplied by 1.5 for the first fiscal year in which a Non-Employee Directors commences service on the Board.

 

1.5                               SHARES AVAILABLE.  Subject to adjustment as provided in Section 5.7 and to all other limits set forth in this Plan, 5,000,000 shares of Common Stock shall initially be available for all awards under this Plan, including in respect of Nonstatutory Stock Options issued in substitution for options of Aprea Therapeutics AB in connection with the reorganization of Aprea Therapeutics AB, but excluding future Substitute Awards.   Subject to adjustment as provided in Section 5.7, no more than 5,000,000 shares of Common Stock in the aggregate may be issued under the Plan in connection with Incentive Stock Options.    The number of shares of Common Stock available under the Plan shall increase annually on the first day of each fiscal year, beginning with the fiscal year ending December 31, 2020, and continuing until (and including) the fiscal year ending December 31, 2029, with such annual increase equal to the lesser of (i) 5,000,000 shares of Common Stock, (ii) 4% of the number of shares of Common Stock issued and outstanding on December 31 of the immediately preceding calendar year, and (iii) an amount determined by the Board.   The number of shares of Common Stock that remain available for future grants under this Plan shall be reduced by the sum of the aggregate number of shares of Common Stock that become subject to outstanding options, outstanding Free-Standing SARs, outstanding Stock Awards and outstanding Performance Awards denominated in shares of Common Stock.

 

To the extent that shares of Common Stock subject to an outstanding option, SAR, Stock Award or Performance Award granted under the Plan, other than Substitute Awards other than

 

6

 

the Nonstatutory Stock Options granted in substitution for options of Aprea Therapeutics AB in connection with the reorganization of Aprea Therapeutics AB, are not issued or delivered by reason of (i) the expiration, termination, cancellation or forfeiture of such award (excluding shares subject to an option cancelled upon settlement in shares of a related Tandem SAR or shares subject to a Tandem SAR cancelled upon exercise of a related option) or (ii) the settlement of such award in cash, then such shares of Common Stock shall again be available under this Plan. In addition, shares of Common Stock subject to an award under this Plan shall again be available for issuance under this Plan if such shares are (x) shares that were subject to an option or stock-settled SAR and were not issued or delivered upon the net settlement or net exercise of such option or SAR or (y) shares delivered to or withheld by the Company to pay the purchase price or the withholding taxes related to an outstanding award.  Notwithstanding anything herein to the contrary, shares repurchased by the Company on the open market with the proceeds of an option exercise shall not again be available under this Plan.

 

The number of shares of Common Stock available for awards under this Plan shall not be reduced by (i) the number of shares of Common Stock subject to Substitute Awards or (ii) available shares under a stockholder approved plan of a company or other entity which was a party to a corporate transaction with the Company (as appropriately adjusted to reflect such corporate transaction) which become subject to awards granted under this Plan (subject to applicable stock exchange requirements).

 

Shares of Common Stock to be delivered under this Plan shall be made available from authorized and unissued shares of Common Stock, or authorized and issued shares of Common Stock reacquired and held as treasury shares or otherwise or a combination thereof.

 

II.  STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

 

2.1                               STOCK OPTIONS.  The Committee may, in its discretion, grant options to purchase shares of Common Stock to such eligible persons as may be selected by the Committee.  Each option, or portion thereof, that is not an Incentive Stock Option, shall be a Nonstatutory Stock Option.  To the extent that the aggregate Fair Market Value (determined as of the date of grant) of shares of Common Stock with respect to which options designated as Incentive Stock Options are exercisable for the first time by a holder during any calendar year (under this Plan or any other plan of the Company, or any parent or Subsidiary) exceeds the amount (currently $100,000) established by the Code, such options shall constitute Nonstatutory Stock Options.

 

Options shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable:

 

(a)                                 Number of Shares and Purchase Price.  The number of shares of Common Stock subject to an option and the purchase price per share of Common Stock purchasable upon exercise of the option shall be determined by the Committee; provided, however, that the purchase price per share of Common Stock purchasable upon exercise of an option shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of grant of such option; provided further, that if an Incentive Stock Option shall be granted to any person who, at the time such option is granted, owns capital stock possessing more than 10% of the total

 

7

 

combined voting power of all classes of capital stock of the Company (or of any parent or Subsidiary) (a “Ten Percent Holder”), the purchase price per share of Common Stock shall not be less than the price (currently 110% of Fair Market Value) required by the Code in order to constitute an Incentive Stock Option.

 

Notwithstanding the foregoing, in the case of an option that is a Substitute Award, the purchase price per share of the shares subject to such option may be less than 100% of the Fair Market Value per share on the date of grant, provided, that the excess of: (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the shares subject to the Substitute Award, over (b) the aggregate purchase price thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value to be determined by the Committee) of the shares of the predecessor company or other entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate purchase price of such shares.

 

(b)                                 Option Period and Exercisability.  The period during which an option may be exercised shall be determined by the Committee; provided, however, that no option may be exercised later than ten years after its date of grant; provided further, that if an Incentive Stock Option shall be granted to a Ten Percent Holder, such option may not be exercised later than five years after its date of grant.  The Committee may, in its discretion, establish Performance Measures which shall be satisfied or met as a condition to the grant of an option or to the exercisability of all or a portion of an option.  The Committee shall determine whether an option shall become exercisable in cumulative or non-cumulative installments and in part or in full at any time.  An exercisable option, or portion thereof, may be exercised only with respect to whole shares of Common Stock.

 

(c)                                  Method of Exercise.  An option may be exercised (i) by giving written notice to the Company specifying the number of whole shares of Common Stock to be purchased and accompanying such notice with payment therefor in full (or arrangement made for such payment to the Company’s satisfaction) either: (A) in cash; (B) by delivery (either actual delivery or by attestation procedures established by the Company) of shares of Common Stock having a Fair Market Value, determined as of the date of exercise, equal to the aggregate purchase price payable by reason of such exercise; (C) authorizing the Company to withhold whole shares of Common Stock which would otherwise be delivered having an aggregate Fair Market Value, determined as of the date of exercise, equal to the amount necessary to satisfy such obligation; (D) in cash by a broker-dealer acceptable to the Company to whom the holder has submitted an irrevocable notice of exercise; (E) in any other form of legal consideration that may be acceptable to the Committee and specified in the Agreement; or (F) a combination of (A), (B), (C) and (E), in each case to the extent set forth in the Agreement relating to the option; (ii) if applicable, by surrendering to the Company any Tandem SARs which are cancelled by reason of the exercise of the option; and (iii) by executing such documents as the Company may reasonably request.  Any fraction of a share of Common Stock which would be required to pay such purchase price shall be disregarded and the remaining amount due shall be paid in cash by the holder.  No shares of Common Stock shall be issued and no certificate representing Common Stock shall be delivered until the full purchase price therefor and any withholding taxes thereon, as described in Section 5.5, have been paid (or arrangement made for such payment to the

 

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Company’s satisfaction).

 

2.2                               STOCK APPRECIATION RIGHTS.  The Committee may, in its discretion, grant SARs to such eligible persons as may be selected by the Committee.  The Agreement relating to an SAR shall specify whether the SAR is a Tandem SAR or a Free-Standing SAR.

 

SARs shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable:

 

(a)                                 Number of SARs and Base Price.  The number of SARs subject to an award shall be determined by the Committee.  Any Tandem SAR related to an Incentive Stock Option shall be granted at the same time that such Incentive Stock Option is granted.  The base price of a Tandem SAR shall be the purchase price per share of Common Stock of the related option.  The base price of a Free-Standing SAR shall be determined by the Committee; provided, however, that such base price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of grant of such SAR (or, if earlier, the date of grant of the option for which the SAR is exchanged or substituted).

 

Notwithstanding the foregoing, in the case of an SAR that is a Substitute Award, the base price per share of the shares subject to such SAR may be less than 100% of the Fair Market Value per share on the date of grant, provided, that the excess of: (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the shares subject to the Substitute Award, over (b) the aggregate base price thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value to be determined by the Committee) of the shares of the predecessor company or other entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate base price of such shares.

 

(b)                                 Exercise Period and Exercisability.  The period for the exercise of an SAR shall be determined by the Committee; provided, however, that (i) no Tandem SAR may be exercised later than the expiration, cancellation, forfeiture or other termination of the related option and (ii) no Free-Standing SAR may be exercised later than ten years after its date of grant.  The Committee may, in its discretion, establish Performance Measures which shall be satisfied or met as a condition to the grant of an SAR or to the exercisability of all or a portion of an SAR.  The Committee shall determine whether an SAR may be exercised in cumulative or non-cumulative installments and in part or in full at any time.  An exercisable SAR, or portion thereof, may be exercised, in the case of a Tandem SAR, only with respect to whole shares of Common Stock and, in the case of a Free-Standing SAR, only with respect to a whole number of SARs.  If an SAR is exercised for shares of Restricted Stock, a certificate or certificates representing such Restricted Stock shall be issued in accordance with Section 3.2(c), or such shares shall be transferred to the holder in book entry form with restrictions on the shares duly noted, and the holder of such Restricted Stock shall have such rights of a stockholder of the Company as determined pursuant to Section 3.2(d).  Prior to the exercise of a stock-settled SAR, the holder of such SAR shall have no rights as a stockholder of the Company with respect to the shares of Common Stock subject to such SAR.

 

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(c)                                  Method of Exercise.  A Tandem SAR may be exercised by (i) giving written notice to the Company specifying the number of whole SARs which are being exercised, (ii) surrendering to the Company any options which are cancelled by reason of the exercise of the Tandem SAR and (iii) executing such documents as the Company may reasonably request.  A Free-Standing SAR may be exercised by (A) giving written notice to the Company specifying the whole number of SARs which are being exercised and (B) executing such documents as the Company may reasonably request.  No shares of Common Stock shall be issued and no certificate representing Common Stock shall be delivered until any withholding taxes thereon, as described in Section 5.5, have been paid (or arrangement made for such payment to the Company’s satisfaction).

 

2.3                               TERMINATION OF EMPLOYMENT OR SERVICE.  All of the terms relating to the exercise, cancellation or other disposition of an option or SAR (i) upon a termination of employment with or service to the Company of the holder of such option or SAR, as the case may be, whether by reason of disability, retirement, death, or any other reason; or (ii) during a paid or unpaid leave of absence, shall be determined by the Committee and set forth in the applicable Agreement.

 

2.4                               NO REPRICING.  The Committee shall not, without the approval of the stockholders of the Company, (i) reduce the purchase price or base price of any previously granted option or SAR, (ii) cancel any previously granted option or SAR in exchange for another option or SAR with a lower purchase price or base price or (iii) cancel any previously granted option or SAR in exchange for cash or another award if the purchase price of such option or the base price of such SAR exceeds the Fair Market Value of a share of Common Stock on the date of such cancellation, in each case, other than in connection with a Change in Control or the adjustment provisions set forth in Section 5.7.

 

2.5                               NO DIVIDEND EQUIVALENTS.  Notwithstanding anything in an Agreement to the contrary, the holder of an option or SAR shall not be entitled to receive dividend equivalents with respect to the number of shares of Common Stock subject to such option or SAR.

 

III.  STOCK AWARDS

 

3.1                               STOCK AWARDS.  The Committee may, in its discretion, grant Stock Awards to such eligible persons as may be selected by the Committee.  The Agreement relating to a Stock Award shall specify whether the Stock Award is a Restricted Stock Award, a Restricted Stock Unit Award or, in the case of an Other Stock Award, the type of award being granted.

 

3.2                               TERMS OF RESTRICTED STOCK AWARDS.  Restricted Stock Awards shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

 

(a)                                 Number of Shares and Other Terms.  The number of shares of Common Stock subject to a Restricted Stock Award and the Restriction Period, Performance Period (if any) and Performance Measures (if any) applicable to a Restricted Stock Award shall be determined by the Committee.

 

(b)                                 Vesting and Forfeiture.  The Agreement relating to a Restricted Stock Award shall provide, in the manner determined by the Committee, in its discretion, and subject to the

 

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 provisions of this Plan, for the vesting of the shares of Common Stock subject to such award (i) if the holder of such award remains continuously in the employment of the Company during the specified Restriction Period and (ii) if specified Performance Measures (if any) are satisfied or met during a specified Performance Period, and for the forfeiture of the shares of Common Stock subject to such award (x) if the holder of such award does not remain continuously in the employment of the Company during the specified Restriction Period or (y) if specified Performance Measures (if any) are not satisfied or met during a specified Performance Period.

 

(c)                                  Stock Issuance.  During the Restriction Period, the shares of Restricted Stock shall be held by a custodian in book entry form with restrictions on such shares duly noted or, alternatively, a certificate or certificates representing a Restricted Stock Award shall be registered in the holder’s name and may bear a legend, in addition to any legend which may be required pursuant to Section 5.6, indicating that the ownership of the shares of Common Stock represented by such certificate is subject to the restrictions, terms and conditions of this Plan and the Agreement relating to the Restricted Stock Award.  All such certificates shall be deposited with the Company, together with stock powers or other instruments of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or appropriate, which would permit transfer to the Company of all or a portion of the shares of Common Stock subject to the Restricted Stock Award in the event such award is forfeited in whole or in part.  Upon termination of any applicable Restriction Period (and the satisfaction or attainment of applicable Performance Measures), subject to the Company’s right to require payment of any taxes in accordance with Section 5.5, the restrictions shall be removed from the requisite number of any shares of Common Stock that are held in book entry form, and all certificates evidencing ownership of the requisite number of shares of Common Stock shall be delivered to the holder of such award.

 

(d)                                 Rights with Respect to Restricted Stock Awards.  Subject to the terms and conditions of a Restricted Stock Award, the holder of such award shall have all rights as a stockholder of the Company, including, but not limited to, voting rights, the right to receive dividends and the right to participate in any capital adjustment applicable to all holders of Common Stock; provided, however, that a distribution or dividend with respect to shares of Common Stock, including a regular cash dividend, shall be deposited with the Company and shall be subject to the same restrictions as the shares of Common Stock with respect to which such distribution was made.

 

3.3                               TERMS OF RESTRICTED STOCK UNIT AWARDS.  Restricted Stock Unit Awards shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

 

(a)                                 Number of Shares and Other Terms.  The number of shares of Common Stock subject to a Restricted Stock Unit Award, including the number of shares that are earned upon the attainment of any specified Performance Measures, and the Restriction Period, Performance Period (if any) and Performance Measures (if any) applicable to a Restricted Stock Unit Award shall be determined by the Committee.

 

(b)                                 Vesting and Forfeiture.  The Agreement relating to a Restricted Stock Unit Award shall provide, in the manner determined by the Committee, in its discretion, and subject

 

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to the provisions of this Plan, for the vesting of such Restricted Stock Unit Award (i) if the holder of such award remains continuously in the employment of the Company during the specified Restriction Period and (ii) if specified Performance Measures (if any) are satisfied or met during a specified Performance Period, and for the forfeiture of the shares of Common Stock subject to such award (x) if the holder of such award does not remain continuously in the employment of the Company during the specified Restriction Period or (y) if specified Performance Measures (if any) are not satisfied or met during a specified Performance Period.

 

(c)                                  Settlement of Vested Restricted Stock Unit Awards.  The Agreement relating to a Restricted Stock Unit Award shall specify (i) whether such award may be settled in shares of Common Stock or cash or a combination thereof and (ii) whether the holder thereof shall be entitled to receive dividend equivalents, and, if determined by the Committee, interest on, or the deemed reinvestment of, any deferred dividend equivalents, with respect to the number of shares of Common Stock subject to such award.  Any dividend equivalents with respect to Restricted Stock Units shall be subject to the same restrictions as such Restricted Stock Units.  Prior to the settlement of a Restricted Stock Unit Award, the holder of such award shall have no rights as a stockholder of the Company with respect to the shares of Common Stock subject to such award.

 

3.4                               OTHER STOCK AWARDS.  Subject to the limitations set forth in the Plan, the Committee is authorized to grant other awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, shares of Common Stock, including without limitation shares of Common Stock granted as a bonus and not subject to any vesting conditions, dividend equivalents, deferred stock units, stock purchase rights and shares of Common Stock issued in lieu of obligations of the Company to pay cash under any compensatory plan or arrangement, subject to such terms as shall be determined by the Committee.  The Committee shall determine the terms and conditions of such awards, which may include the right to elective deferral thereof, subject to such terms and conditions as the Committee may specify in its discretion.  Any dividend equivalent rights granted with respect to an award shall be subject to the same vesting conditions as the underlying award.

 

3.5                               TERMINATION OF EMPLOYMENT OR SERVICE.  All of the terms relating to the satisfaction of Performance Measures and the termination of the Restriction Period or Performance Period relating to a Stock Award, or any forfeiture and cancellation of such award (i) upon a termination of employment with or service to the Company of the holder of such award, whether by reason of disability, retirement, death, or any other reason; or (ii) during a paid or unpaid leave of absence, shall be determined by the Committee and set forth in the applicable Agreement.

 

IV.  PERFORMANCE AWARDS

 

4.1                               PERFORMANCE AWARDS.  The Committee may, in its discretion, grant Performance Awards to such eligible persons as may be selected by the Committee.

 

4.2                               TERMS OF PERFORMANCE AWARDS.  Performance Awards shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

 

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(a)                                 Value of Performance Awards and Performance Measures.  The method of determining the value of the Performance Award and the Performance Measures and Performance Period applicable to a Performance Award shall be determined by the Committee.

 

(b)                                 Vesting and Forfeiture.  The Agreement relating to a Performance Award shall provide, in the manner determined by the Committee, in its discretion, and subject to the provisions of this Plan, for the vesting of such Performance Award if the specified Performance Measures are satisfied or met during the specified Performance Period and for the forfeiture of such award if the specified Performance Measures are not satisfied or met during the specified Performance Period.

 

(c)                                  Settlement of Vested Performance Awards.  The Agreement relating to a Performance Award shall specify whether such award may be settled in shares of Common Stock (including shares of Restricted Stock) or cash or a combination thereof.  If a Performance Award is settled in shares of Restricted Stock, such shares of Restricted Stock shall be issued to the holder in book entry form or a certificate or certificates representing such Restricted Stock shall be issued in accordance with Section 3.2(c) and the holder of such Restricted Stock shall have such rights as a stockholder of the Company as determined pursuant to Section 3.2(d).  Any dividends or dividend equivalents with respect to a Performance Award shall be subject to the same restrictions as such Performance Award.  Prior to the settlement of a Performance Award in shares of Common Stock, including Restricted Stock, the holder of such award shall have no rights as a stockholder of the Company.

 

4.3                               TERMINATION OF EMPLOYMENT OR SERVICE.  All of the terms relating to the satisfaction of Performance Measures and the termination of the Performance Period relating to a Performance Award, or any forfeiture and cancellation of such award (i) upon a termination of employment with or service to the Company of the holder of such award, whether by reason of disability, retirement, death, or any other reason; or (ii) during a paid or unpaid leave of absence, shall be determined by the Committee and set forth in the applicable Agreement.

 

V.  GENERAL

 

5.1                               EFFECTIVE DATE AND TERM OF PLAN.  This Plan shall be submitted to the stockholders of the Company for approval within 12 months of Board approval and, if approved, shall be effective as of the date of such Board approval. This Plan shall terminate on the tenth anniversary of Board approval of the Plan, unless terminated earlier by the Board. Termination of this Plan shall not affect the terms or conditions of any award granted prior to termination. Awards hereunder may be made at any time prior to the termination of this Plan, provided that no Incentive Stock Option may be granted later than ten years after the date on which the Plan was approved by the Board.

 

5.2                               AMENDMENTS.  The Board may amend this Plan as it shall deem advisable; provided, however, that no amendment to the Plan shall be effective without the approval of the Company’s stockholders if (i) stockholder approval is required by applicable law, rule or regulation, including any rule of NASDAQ or any other stock exchange on which the Common Stock is then traded, or (ii) such amendment seeks to modify the Non-Employee Director compensation limit set forth in Section 1.4 or the terms of Section 2.4 hereof; provided further,

 

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that no amendment may materially impair the rights of a holder of an outstanding award without the consent of such holder.

 

5.3                               AGREEMENT.  Each award under this Plan shall be evidenced by an Agreement setting forth the terms and conditions applicable to such award.  No award shall be valid until an Agreement is executed by the Company and, to the extent required by the Company, executed or electronically accepted by the recipient of such award.  Upon such execution or acceptance and delivery of the Agreement to the Company within the time period specified by the Company, such award shall be effective as of the effective date set forth in the Agreement.

 

5.4                               NON-TRANSFERABILITY.  No award shall be transferable other than by will, the laws of descent and distribution or pursuant to beneficiary designation procedures approved by the Company or, to the extent expressly permitted in the Agreement relating to such award, to the holder’s family members, a trust or entity established by the holder for estate planning purposes, a charitable organization designated by the holder or pursuant to a domestic relations order, in each case, without consideration.  Except to the extent permitted by the foregoing sentence or the Agreement relating to an award, each award may be exercised or settled during the holder’s lifetime only by the holder or the holder’s legal representative or similar person.  Except as permitted by the second preceding sentence, no award may be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process.  Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of any award, such award and all rights thereunder shall immediately become null and void.

 

5.5                               TAX WITHHOLDING.  The Company shall have the right to require, prior to the issuance or delivery of any shares of Common Stock or the payment of any cash pursuant to an award made hereunder, payment by the holder of such award of any federal, state, local or other taxes which may be required to be withheld or paid in connection with such award.  An Agreement may provide that (i) the Company shall withhold whole shares of Common Stock which would otherwise be delivered to a holder, having an aggregate Fair Market Value determined as of the date the obligation to withhold or pay taxes arises in connection with an award (the “Tax Date”), or withhold an amount of cash which would otherwise be payable to a holder, in the amount necessary to satisfy any such obligation or (ii) the holder may satisfy any such obligation by any of the following means: (A) a cash payment to the Company; (B) delivery (either actual delivery or by attestation procedures established by the Company) to the Company of previously owned whole shares of Common Stock having an aggregate Fair Market Value, determined as of the Tax Date, equal to the amount necessary to satisfy any such obligation; (C) authorizing the Company to withhold whole shares of Common Stock which would otherwise be delivered having an aggregate Fair Market Value, determined as of the Tax Date, or withhold an amount of cash which would otherwise be payable to a holder, in either case equal to the amount necessary to satisfy any such obligation; (D) in the case of the exercise of an option, a cash payment by a broker-dealer acceptable to the Company to whom the holder has submitted an irrevocable notice of exercise; (E) any other form of payment that may be acceptable to the Committee and specified in the Agreement or (F) any combination of (A), (B), (C) and (E), in each case to the extent set forth in the Agreement relating to the award.  Shares of Common Stock to be delivered or withheld may not have an aggregate Fair Market Value in excess of the amount determined by applying the minimum statutory withholding rate (or, if permitted by the Company, such other

 

14

 

rate as shall not cause adverse accounting consequences under the accounting rules then in effect, and is permitted under applicable IRS withholding rules).  Any fraction of a share of Common Stock which would be required to satisfy such an obligation shall be disregarded and the remaining amount due shall be paid in cash by the holder.

 

5.6                               RESTRICTIONS ON SHARES.  Each award made hereunder shall be subject to the requirement that if at any time the Company determines that the listing, registration or qualification of the shares of Common Stock subject to such award upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the delivery of shares thereunder, such shares shall not be delivered unless such listing, registration, qualification, consent, approval or other action shall have been effected or obtained, free of any conditions not acceptable to the Company.  The Company may require that certificates evidencing shares of Common Stock delivered pursuant to any award made hereunder bear a legend indicating that the sale, transfer or other disposition thereof by the holder is prohibited except in compliance with the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 

5.7                               ADJUSTMENT.   In the event of any equity restructuring (within the meaning of Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation—Stock Compensation or any successor or replacement accounting standard) that causes the per share value of shares of Common Stock to change, such as a stock dividend, stock split, spinoff, rights offering, or recapitalization through an extraordinary cash dividend, the number and class of securities available under this Plan, the terms of each outstanding option and SAR (including the number and class of securities subject to each outstanding option or SAR and the purchase price or base price per share), the terms of each outstanding Stock Award (including the number and class of securities subject thereto), and the terms of each outstanding Performance Award (including the number and class of securities subject thereto, if applicable) shall be appropriately adjusted by the Committee, such adjustments to be made in the case of outstanding options and SARs in accordance with Section 409A of the Code.  In the event of any other change in corporate capitalization, including a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such equitable adjustments described in the foregoing sentence may be made as determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of rights of participants. In either case, the decision of the Committee regarding any such adjustment shall be final, binding and conclusive.

 

5.8                               CHANGE IN CONTROL.

 

(a)                                 For purposes of this Plan, “Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events:

 

(1)  any Exchange Act Person becomes the owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction. Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (A) on account of the acquisition of securities by the Company or any Subsidiary, (B) on

 

15

 

account of the acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, (C) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person that acquires the Company’s securities in a transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities or (D) solely because the level of ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company or any Subsidiary, and after such share acquisition, the Subject Person becomes the owner of any additional  voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur;

 

(2)  there is consummated a merger, consolidation, or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation, or similar transaction, the stockholders of the Company immediately prior thereto do not own, directly or indirectly, either (A) outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or (B) more than 50% of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation, or similar transaction, in each case in substantially the same proportions as their ownership of the outstanding voting securities of the Company immediately prior to such transaction;

 

(3)  the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company shall otherwise occur, except for a liquidation into a parent corporation; or

 

(4)  there is consummated a sale, lease, exclusive license, or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license, or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an entity, more than 50% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license, or other disposition.

 

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Notwithstanding the foregoing definition or any other provision of this Plan, (A) the term Change in Control shall not include a sale of assets, merger, or other transaction effected exclusively for the purpose of changing the domicile of the Company and (B) with respect to any nonqualified deferred compensation that becomes payable on account of the Change in Control, the transaction or event described in clause (1), (2), (3) or (4) shall also constitute a “change in control event,” as defined in Treasury Regulation § 1.409A-3(i)(5) if required in order for the payment not to violate Section 409A of the Code.

 

(b)                                 Subject to the terms of the applicable Agreements, in the event of a Change in Control, the Board, as constituted prior to the Change in Control, may, in its discretion:

 

(1)  require that (i) some or all outstanding options and SARs shall become exercisable in full or in part, either immediately or upon a subsequent termination of employment, (ii) the Restriction Period applicable to some or all outstanding Stock Awards shall lapse in full or in part, either immediately or upon a subsequent termination of employment, (iii) the Performance Period applicable to some or all outstanding awards shall lapse in full or in part, and (iv) the Performance Measures applicable to some or all outstanding awards shall be deemed to be satisfied at the target, maximum or any other level;

 

(2)  require that shares of capital stock of the corporation resulting from or succeeding to the business of the Company pursuant to such Change in Control, or a parent corporation thereof, or other property be substituted for some or all of the shares of Common Stock subject to an outstanding award, with an appropriate and equitable adjustment to such award as determined by the Board in accordance with Section 5.7; and/or

 

(3)  require outstanding awards, in whole or in part, to be surrendered to the Company by the holder, and to be immediately cancelled by the Company, and to provide for the holder to receive (i) a cash payment in an amount equal to (A) in the case of an option or an SAR, the aggregate number of shares of Common Stock then subject to the portion of such option or SAR surrendered, whether or not vested or exercisable, multiplied by the excess, if any, of the Fair Market Value of a share of Common Stock as of the date of the Change in Control, over the purchase price or base price per share of Common Stock subject to such option or SAR, (B) in the case of a Stock Award or a Performance Award denominated in shares of Common Stock, the number of shares of Common Stock then subject to the portion of such award surrendered to the extent the Performance Measures applicable to such award have been satisfied or are deemed satisfied pursuant to Section 5.8(b)(1)  , whether or not vested, multiplied by the Fair Market Value of a share of Common Stock as of the date of the Change in Control, and (C) in the case of a Performance Award denominated in cash, the value of the Performance Award then subject to the portion of such award surrendered to the extent the Performance Measures applicable to such award have been satisfied or are deemed satisfied pursuant to Section 5.8(b)(1)  ; (ii) shares of capital stock of the corporation resulting from or succeeding to the business of the Company

 

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pursuant to such Change in Control, or a parent corporation thereof, having a fair market value not less than the amount determined under clause (i) above; or (iii) a combination of the payment of cash pursuant to clause (i) above and the issuance of shares pursuant to clause (ii) above.

 

5.9                               DEFERRALS.  The Committee may determine that the delivery of shares of Common Stock or the payment of cash, or a combination thereof, upon the settlement of all or a portion of any award made hereunder shall be deferred, or the Committee may, in its sole discretion, approve deferral elections made by holders of awards.  Deferrals shall be for such periods and upon such terms as the Committee may determine in its sole discretion, subject to the requirements of Section 409A of the Code.

 

5.10                        NO RIGHT OF PARTICIPATION, EMPLOYMENT OR SERVICE.  Unless otherwise set forth in an employment agreement, no person shall have any right to participate in this Plan.  Neither this Plan nor any award made hereunder shall confer upon any person any right to continued employment by or service with the Company, any Subsidiary or any affiliate of the Company or affect in any manner the right of the Company, any Subsidiary or any affiliate of the Company to terminate the employment or service of any person at any time without liability hereunder.

 

5.11                        RIGHTS AS STOCKHOLDER.  No person shall have any right as a stockholder of the Company with respect to any shares of Common Stock or other equity security of the Company which is subject to an award hereunder unless and until such person becomes a stockholder of record with respect to such shares of Common Stock or equity security.

 

5.12                        DESIGNATION OF BENEFICIARY.  To the extent permitted by the Company, a holder of an award may file with the Company a written designation of one or more persons as such holder’s beneficiary or beneficiaries (both primary and contingent) in the event of the holder’s death or incapacity.  To the extent an outstanding option or SAR granted hereunder is exercisable, such beneficiary or beneficiaries shall be entitled to exercise such option or SAR pursuant to procedures prescribed by the Company.  Each beneficiary designation shall become effective only when filed in writing with the Company during the holder’s lifetime on a form prescribed by the Company.  The spouse of a married holder domiciled in a community property jurisdiction shall join in any designation of a beneficiary other than such spouse.  The filing with the Company of a new beneficiary designation shall cancel all previously filed beneficiary designations.  If a holder fails to designate a beneficiary, or if all designated beneficiaries of a holder predecease the holder, then each outstanding award held by such holder, to the extent vested or exercisable, shall be payable to or may be exercised by such holder’s executor, administrator, legal representative or similar person.

 

5.13                        AWARDS SUBJECT TO CLAWBACK.  The awards granted under this Plan and any cash payment or shares of Common Stock delivered pursuant to such an award are subject to forfeiture, recovery by the Company or other action pursuant to the applicable Agreement or any clawback or recoupment policy which the Company may adopt from time to time, including without limitation any such policy which the Company may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

 

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5.14                        GOVERNING LAW.  This Plan, each award hereunder and the related Agreement, and all determinations made and actions taken pursuant thereto, to the extent not otherwise governed by the Code or the laws of the United States, shall be governed by the laws of the State of Delaware and construed in accordance therewith without giving effect to principles of conflicts of laws.

 

5.15                        FOREIGN EMPLOYEES.  Without amending this Plan, the Committee may grant awards to eligible persons who are foreign nationals and/or reside outside of the United States on such terms and conditions different from those specified in this Plan as may in the judgment of the Committee be necessary or desirable to foster and promote achievement of the purposes of this Plan and, in furtherance of such purposes the Committee may make such modifications, amendments, procedures, subplans and the like as may be necessary or advisable to comply with provisions of laws in other countries or jurisdictions in which the Company or its Subsidiaries operates or has employees.

 

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