Document:

Exhibit 4.1

 

 

MONGODB, INC.

AND

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

INDENTURE

Dated as of January 14, 2020

  

0.25% Convertible Senior Notes due 2026

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

 

Page

	Article 1 

    Definitions
	 
	Section 1.01.  Definitions	1
	Section 1.02.  References to Interest	14

 

	Article
                                         2 
 Issue, Description, Execution, Registration and Exchange of Notes

                                                                                                     

                                                                                

	 
	Section 2.01.  Designation and Amount	14
	Section 2.02.  Form of Notes	14
	Section 2.03.  Date and Denomination of Notes; Payments of Interest and Defaulted Amounts	15
	Section 2.04.  Execution, Authentication and Delivery of Notes	16
	Section 2.05.  Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary	17
	Section 2.06.  Mutilated, Destroyed, Lost or Stolen Notes	23
	Section 2.07.  Temporary Notes	24
	Section 2.08.  Cancellation of Notes Paid, Converted, Etc.	25
	Section 2.09.  CUSIP Numbers	25
	Section 2.10.  Additional Notes; Repurchases	25

 

	Article 3 

    Satisfaction and Discharge
	 
	Section 3.01.  Satisfaction and Discharge	26

 

	Article 4

    Particular Covenants of the Company
	 
	Section 4.01.  Payment of Principal and Interest	26
	Section 4.02.  Maintenance of Office or Agency	26
	Section 4.03.  Appointments to Fill Vacancies in Trustee’s Office	27
	Section 4.04.  Provisions as to Paying Agent	27
	Section 4.05.  Existence	28
	Section 4.06.  Rule 144A Information Requirement and Annual Reports	28
	Section 4.07.  Stay, Extension and Usury Laws	30
	Section 4.08.  Compliance Certificate; Statements as to Defaults	30
	Section 4.09.  Further Instruments and Acts	31

 

    	i

     

    

 

	  Article
                                         5 

                                         Lists of Holders and Reports by the Company and the Trustee

	 
	Section 5.01.  Lists of Holders	31
	Section 5.02.  Preservation and Disclosure of Lists	31
	 	 
	Article 6 

    Defaults and Remedies
	 
	Section 6.01.  Events of Default	31
	Section 6.02.  Acceleration; Rescission and Annulment	33
	Section 6.03.  Additional Interest	34
	Section 6.04.  Payments of Notes on Default; Suit Therefor	34
	Section 6.05.  Application of Monies Collected by Trustee	36
	Section 6.06.  Proceedings by Holders	37
	Section 6.07.  Proceedings by Trustee	38
	Section 6.08.  Remedies Cumulative and Continuing	38
	Section 6.09.  Direction of Proceedings and Waiver of Defaults by Majority of Holders	38
	Section 6.10.  Notice of Defaults	39
	Section 6.11.  Undertaking to Pay Costs	39
	 	 
	Article 7 

    Concerning the Trustee
	 
	Section 7.01.  Duties and Responsibilities of Trustee	39
	Section 7.02.  Reliance on Documents, Opinions, Etc.	41
	Section 7.03.  No Responsibility for Recitals, Etc.	42
	Section 7.04.  Trustee, Paying Agents, Conversion Agents, Bid Solicitation Agent or Note Registrar May Own Notes	42
	Section 7.05.  Monies and Shares of Common Stock to Be Held in Trust	43
	Section 7.06.  Compensation and Expenses of Trustee	43
	Section 7.07.  Officer’s Certificate as Evidence	44
	Section 7.08.  Eligibility of Trustee	44
	Section 7.09.  Resignation or Removal of Trustee	44
	Section 7.10.  Acceptance by Successor Trustee	45
	Section 7.11.  Succession by Merger, Etc.	46
	Section 7.12.  Trustee’s Application for Instructions from the Company	46
	 	 
	Article
    8 

    Concerning the Holders
	 
	Section 8.01.  Action by Holders	47
	Section 8.02.  Proof of Execution by Holders	47
	Section 8.03.  Who Are Deemed Absolute Owners	47
	Section 8.04.  Company-Owned Notes Disregarded	48
	Section 8.05.  Revocation of Consents; Future Holders Bound	48

 

    	ii

     

    

 

	Article
    9

    Holders’ Meetings
	 
	Section 9.01.  Purpose of Meetings	48
	Section 9.02.  Call of Meetings by Trustee	49
	Section 9.03.  Call of Meetings by Company or Holders	49
	Section 9.04.  Qualifications for Voting	49
	Section 9.05.  Regulations	50
	Section 9.06.  Voting	50
	Section 9.07.  No Delay of Rights by Meeting	51
	 	 
	Article
    10

    Supplemental Indentures
	 
	Section 10.01.  Supplemental Indentures Without Consent of Holders	51
	Section 10.02.  Supplemental Indentures with Consent of Holders	52
	Section 10.03.  Effect of Supplemental Indentures	53
	Section 10.04.  Notation on Notes	53
	Section 10.05.  Evidence of Compliance of Supplemental Indenture to Be Furnished Trustee	53
	 	 
	Article
    11 

    Consolidation, Merger, Sale, Conveyance and Lease
	 
	Section 11.01.  Company May Consolidate, Etc. on Certain Terms	54
	Section 11.02.  Successor Corporation to Be Substituted	54
	 	 
	Article
    12 

    Immunity of Incorporators, Stockholders, Officers and Directors
	 
	Section 12.01.  Indenture and Notes Solely Corporate Obligations	55
	 	 
	Article
    13

    Intentionally Omitted
	 
	Article
    14 

    Conversion of Notes
	 
	Section 14.01.  Conversion Privilege	55
	Section 14.02.  Conversion Procedure; Settlement Upon Conversion	59
	Section 14.03.  Increased Conversion Rate Applicable to Certain Notes Surrendered in Connection with Make-Whole Fundamental Changes or During a Redemption Period	63
	Section 14.04.  Adjustment of Conversion Rate	65
	Section 14.05.  Adjustments of Prices	75
	Section 14.06.  Shares to Be Fully Paid	75
	Section 14.07.  Effect of Recapitalizations, Reclassifications and Changes of the Common Stock.	76
	Section 14.08.  Certain Covenants	78
	Section 14.09.  Responsibility of Trustee	79
	Section 14.10.  Notice to Holders Prior to Certain Actions	79
	Section 14.11.  Stockholder Rights Plans	80
	Section 14.12.  Exchange In Lieu Of Conversion	80

 

    	iii

     

    

 

	 

                                                                                Article
                                         15

                                         Repurchase of Notes at Option of Holders

	 
	Section 15.01.  Intentionally Omitted	80
	Section 15.02.  Repurchase at Option of Holders Upon a Fundamental Change	80
	Section 15.03.  Withdrawal of Fundamental Change Repurchase Notice	83
	Section 15.04.  Deposit of Fundamental Change Repurchase Price	84
	Section 15.05.  Covenant to Comply with Applicable Laws Upon Repurchase of Notes	84
	 	 
	Article 16 

    Optional Redemption
	 
	Section 16.01.  Optional Redemption	85
	Section 16.02.  Notice of Optional Redemption; Selection of Notes	85
	Section 16.03.  Payment of Notes Called for Redemption	86
	Section 16.04.  Restrictions on Redemption	87
	 	 
	Article 17 

    Miscellaneous Provisions
	 
	Section 17.01.  Provisions Binding on Company’s Successors	87
	Section 17.02.  Official Acts by Successor Corporation	87
	Section 17.03.  Addresses for Notices, Etc.	87
	Section 17.04.  Governing Law; Jurisdiction	88
	Section 17.05.  Evidence of Compliance with Conditions Precedent; Certificates and Opinions of Counsel to Trustee	88
	Section 17.06.  Legal Holidays	89
	Section 17.07.  No Security Interest Created	89
	Section 17.08.  Benefits of Indenture	89
	Section 17.09.  Table of Contents, Headings, Etc.	89
	Section 17.10.  Authenticating Agent	90
	Section 17.11.  Execution in Counterparts	90
	Section 17.12.  Severability	91
	Section 17.13.  Waiver of Jury Trial	91
	Section 17.14.  Force Majeure	91
	Section 17.15.  Calculations	91
	Section 17.16.  U.S.A. Patriot Act	92

 

    	iv

     

    

 

EXHIBIT

	Exhibit A	Form of Note	A-1

 

    	v

     

    

 

INDENTURE, dated as of January 14, 2020,
between MONGODB, INC., a Delaware corporation, as issuer (the “Company”, as more fully set forth in Section
1.01) and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (the “Trustee”, as more
fully set forth in Section 1.01).

 

W I T N E S S E T H:

 

WHEREAS, for its lawful corporate purposes,
the Company has duly authorized the issuance of its 0.25% Convertible Senior Notes due 2026 (the “Notes”), initially
in an aggregate principal amount not to exceed $1,150,000,000 and in order to provide the terms and conditions upon which the Notes
are to be authenticated, issued and delivered, the Company has duly authorized the execution and delivery of this Indenture; and

 

WHEREAS, the Form of Note, the certificate
of authentication to be borne by each Note, the Form of Notice of Conversion, the Form of Fundamental Change Repurchase Notice
and the Form of Assignment and Transfer to be borne by the Notes are to be substantially in the forms hereinafter provided; and

 

WHEREAS, all acts and things necessary to
make the Notes, when executed by the Company and authenticated and delivered by the Trustee or a duly authorized authenticating
agent, as in this Indenture provided, the valid, binding and legal obligations of the Company, and this Indenture a valid agreement
according to its terms, have been done and performed, and the execution of this Indenture and the issuance hereunder of the Notes
have in all respects been duly authorized.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

That in order to declare the terms and conditions
upon which the Notes are, and are to be, authenticated, issued and delivered, and in consideration of the premises and of the purchase
and acceptance of the Notes by the Holders thereof, the Company covenants and agrees with the Trustee for the equal and proportionate
benefit of the respective Holders from time to time of the Notes (except as otherwise provided below), as follows:

 

Article
1

Definitions

 

Section 1.01. Definitions. The terms
defined in this Section 1.01 (except as herein otherwise expressly provided or unless the context otherwise requires) for all purposes
of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section 1.01. The
words “herein,” “hereof,” “hereunder,” and words of similar import refer to this Indenture
as a whole and not to any particular Article, Section or other subdivision. The terms defined in this Article include the plural
as well as the singular.

 

     

     

    

 

“Additional Interest”
means all amounts, if any, payable pursuant to Section 4.06(d), Section 4.06(e) and Section 6.03, as applicable.

 

“Additional Shares” shall
have the meaning specified in Section 14.03(a).

 

“Affiliate” of any specified
Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with
such specified Person. For the purposes of this definition, “control,” when used with respect to any specified Person
means the power to direct or cause the direction of the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing. Notwithstanding anything to the contrary herein, the determination of whether one Person
is an “Affiliate” of another Person for purposes of this Indenture shall be made based on the facts at the time such
determination is made or required to be made, as the case may be, hereunder.

 

“Bid Solicitation Agent”
means the Company or the Person appointed by the Company to solicit bids for the Trading Price of the Notes in accordance with
Section 14.01(b)(i). The Company shall initially act as the Bid Solicitation Agent.

 

“Board of Directors”
means the board of directors of the Company or a committee of such board duly authorized to act for it hereunder.

 

“Board Resolution” means
a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board
of Directors, and to be in full force and effect on the date of such certification, and delivered to the Trustee.

 

“Business Day” means,
with respect to any Note, any day other than a Saturday, a Sunday or a day on which the Federal Reserve Bank of New York is authorized
or required by law or executive order to close or be closed.

 

“Capital Stock” means,
for any entity, any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) stock issued by that entity, but shall not include any debt securities convertible into or exchangeable
for any securities otherwise constituting Capital Stock pursuant to this definition.

 

“Cash Settlement” shall
have the meaning specified in Section 14.02(a).

 

“Clause A Distribution”
shall have the meaning specified in Section 14.04(c).

 

“Clause B Distribution”
shall have the meaning specified in Section 14.04(c).

 

“Clause C Distribution”
shall have the meaning specified in Section 14.04(c).

 

“close of business” means
5:00 p.m. (New York City time).

 

“Combination Settlement”
shall have the meaning specified in Section 14.02(a).

 

    	 	2	 

     

    

 

“Commission” means the
U.S. Securities and Exchange Commission.

 

“Common Equity” of any
Person means Capital Stock of such Person that is generally entitled (a) to vote in the election of directors of such Person or
(b) if such Person is not a corporation, to vote or otherwise participate in the selection of the governing body, partners, managers
or others that will control the management or policies of such Person.

 

“Common Stock” means
the Class A common stock of the Company, par value $0.001 per share, at the date of this Indenture, subject to Section 14.07.

 

“Company” shall have
the meaning specified in the first paragraph of this Indenture, and subject to the provisions of Article 11, shall include its
successors and assigns.

 

“Company Order” means
a written order of the Company, signed by any of its Officers, and delivered to the Trustee.

 

“Conversion Agent” shall
have the meaning specified in Section 4.02.

 

“Conversion Consideration”
shall have the meaning specified in Section 14.12(a).

 

“Conversion Date” shall
have the meaning specified in Section 14.02(c).

 

“Conversion Obligation”
shall have the meaning specified in Section 14.01(a).

 

“Conversion Price” means
as of any time, $1,000, divided by the Conversion Rate as of such time.

 

“Conversion Rate” shall
have the meaning specified in Section 14.01(a).

 

“Corporate Event” shall
have the meaning specified in Section 14.01(b)(iii).

 

“Corporate Trust Office”
means the designated office of the Trustee at which at any time this Indenture shall be administered, which office at the date
hereof is located at 60 Livingston Avenue, Saint Paul, MN 55107 or such other address as the Trustee may designate from time to
time by notice to the Holders and the Company, or the designated corporate trust office of any successor trustee (or such other
address as such successor trustee may designate from time to time by notice to the Holders and the Company).

 

“Custodian” means the
Trustee, as custodian for The Depository Trust Company, with respect to the Global Notes, or any successor entity thereto.

 

“Daily Conversion Value”
means, for each of the 40 consecutive Trading Days during the relevant Observation Period, 2.5% of the product of (a) the Conversion
Rate on such Trading Day and (b) the Daily VWAP on such Trading Day.

 

“Daily Measurement Value”
means the Specified Dollar Amount (if any), divided by 40.

 

    	 	3	 

     

    

 

“Daily Settlement Amount,”
for each of the 40 consecutive Trading Days during the relevant Observation Period, shall consist of:

 

(a)       cash
in an amount equal to the lesser of (i) the Daily Measurement Value and (ii) the Daily Conversion Value on such Trading Day; and

 

(b)       if
the Daily Conversion Value on such Trading Day exceeds the Daily Measurement Value, a number of shares of Common Stock equal to
(i) the difference between the Daily Conversion Value and the Daily Measurement Value, divided by (ii) the Daily VWAP for
such Trading Day.

 

“Daily VWAP” means the
per share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page “MDB
 <equity> AQR” (or its equivalent successor if such page is not available) in respect of the period from the scheduled
open of trading until the scheduled close of trading of the primary trading session on such Trading Day (or if such volume-weighted
average price is unavailable, the market value of one share of the Common Stock on such Trading Day reasonably determined, using
a volume-weighted average method, by a nationally recognized independent investment banking firm retained for this purpose by the
Company). The “Daily VWAP” shall be determined without regard to after-hours trading or any other trading outside
of the regular trading session trading hours.

 

“Default” means any event
that is, or after notice or passage of time, or both, would be, an Event of Default.

 

“Defaulted Amounts” means
any amounts on any Note (including, without limitation, the Redemption Price, the Fundamental Change Repurchase Price, principal
and interest) that are payable but are not punctually paid or duly provided for.

 

“delivered” with respect
to any notice to be delivered, given or mailed to a Holder pursuant to this Indenture, shall mean notice (x) given to the Depositary
(or its designee) pursuant to the standing instructions from the Depositary or its designee, including by electronic mail in accordance
with accepted practices or procedures at the Depositary (in the case of a Global Note) or (y) mailed to such Holder by first class
mail, postage prepaid, at its address as it appears on the Note Register, in each case in accordance with Section 17.03. Notice
so “delivered” shall be deemed to include any notice to be “mailed” or “given,” as applicable,
under this Indenture.

 

“Depositary” means, with
respect to each Global Note, the Person specified in Section 2.05(c) as the Depositary with respect to such Notes, until a successor
shall have been appointed and become such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary”
shall mean or include such successor.

 

“Designated Institution”
shall have the meaning specified in Section 14.12(a).

 

“Distributed Property”
shall have the meaning specified in Section 14.04(c).

 

    	 	4	 

     

    

 

“Effective Date” shall
have the meaning specified in Section 14.03(c), except that, as used in
Section 14.04 and Section 14.05, “Effective Date” means the first date on which shares of the Common Stock trade
on the applicable exchange or in the applicable market, regular way, reflecting the relevant share split or share combination,
as applicable (provided that, for the avoidance of doubt, any alternative trading convention on the applicable exchange
or market in respect of shares of the Common Stock under a separate ticker symbol or CUSIP number will not be considered “regular
way” for purposes of this definition).

 

“Event of Default” shall
have the meaning specified in Section 6.01.

 

“Ex-Dividend Date” means
the first date on which shares of the Common Stock trade on the applicable exchange or in the applicable market, regular way, without
the right to receive the issuance, dividend or distribution in question, from the Company or, if applicable, from the seller of
Common Stock on such exchange or market (in the form of due bills or otherwise) as determined by such exchange or market. For the
avoidance of doubt, any alternative trading convention on the applicable exchange or market in respect of shares of Common Stock
under a separate ticker symbol or CUSIP number will not be considered “regular way” for this purpose.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exchange Election” shall
have the meaning specified in Section 14.12(a).

 

“Form of Assignment and Transfer”
shall mean the “Form of Assignment and Transfer” attached as Attachment 3 to the Form of Note attached hereto as Exhibit
A.

 

“Form of Fundamental Change Repurchase
Notice” shall mean the “Form of Fundamental Change Repurchase Notice” attached as Attachment 2 to the Form
of Note attached hereto as Exhibit A.

 

“Form of Note” shall
mean the “Form of Note” attached hereto as Exhibit A.

 

“Form of Notice of Conversion”
shall mean the “Form of Notice of Conversion” attached as Attachment 1 to the Form of Note attached hereto as Exhibit
A.

 

“Fundamental Change”
shall be deemed to have occurred at the time after the Notes are originally issued if any of the following occurs prior to the
Maturity Date:

 

(a)       a
 “person” or “group” within the meaning of Section 13(d) of the Exchange Act, other than the Company, its
Wholly-Owned Subsidiaries and the employee benefit plans of the Company and its Wholly-Owned Subsidiaries, files a Schedule TO
(or any successor schedule, form or report) or any schedule, form or report under the Exchange Act disclosing that such person
or group has become the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of
Common Stock (or such other Common Equity into which the Common Stock has been reclassified) representing more than 50% of the
voting power of the Common Stock (or such other Common Equity into which the Common Stock has been reclassified );

 

    	 	5	 

     

    

 

provided
that the voting power of Common Stock (or such Common Equity into which Common Stock has been reclassified) directly or indirectly
 “beneficially owned,” as defined in Rule 13d-3 under the Exchange Act, by the Permitted Holders or a “group”
(that includes the Permitted Holders) will exclude (A) any shares of Common Stock (or such Common Equity into which the Common
Stock has been reclassified) directly or indirectly beneficially owned by the Permitted Holders on the date hereof and (B) any
shares of Common Stock (or such Common Equity into which the Common Stock has been reclassified) directly or indirectly beneficially
owned by the Permitted Holders as a result of the acquisition by either of the Permitted Holders of equity grants (or the exercise
or conversion thereof) outstanding on the date hereof or subsequently granted, in each case, made under the Company’s equity
incentive plans; provided, further that no person or group shall be deemed to be the beneficial owner of any securities
tendered pursuant to a tender or exchange offer made by or on behalf of such “person” or “group” until
such tendered securities are accepted for purchase or exchange under such offer;

 

(b)       the
consummation of (A) any recapitalization, reclassification or change of the Common Stock (other than changes resulting from a subdivision
, a combination or a change in par value) as a result of which the Common Stock would be converted into, or exchanged for, stock,
other securities, other property or assets; (B) any share exchange, consolidation or merger of the Company pursuant to which all
of the Common Stock will be converted into cash, securities or other property or assets; or (C) any sale, lease or other transfer
in one transaction or a series of transactions of all or substantially all of the consolidated assets of the Company and its Subsidiaries,
taken as a whole, to any Person other than one or more of the Company’s Wholly-Owned Subsidiaries; provided, however, that
a transaction described in clause (A) or (B) in which the holders of all classes of the Company’s Common Equity immediately
prior to such transaction own, directly or indirectly, more than 50% of all classes of Common Equity of the continuing or surviving
corporation or transferee or the parent thereof immediately after such transaction in substantially the same proportions (relative
to each other) as such ownership immediately prior to such transaction shall not be a Fundamental Change pursuant to this clause
(b);

 

(c)       the
stockholders of the Company approve any plan or proposal for the liquidation or dissolution of the Company; or

 

(d)       the
Common Stock (or other common stock underlying the Notes) ceases to be listed or quoted on any of The New York Stock Exchange,
the Nasdaq Global Select Market or the Nasdaq Global Market (or any of their respective successors);

 

provided, however,
that a transaction or transactions described in clauses (a) or (b) above shall not constitute a Fundamental Change if at least
90% of the consideration received or to be received by the common stockholders of the Company, excluding cash payments for fractional
shares and cash payments made in respect of dissenters’ appraisal rights, in connection with such transaction or transactions
consists of shares of common stock or other Common Equity that are listed or quoted on any of The New York Stock Exchange, the
Nasdaq Global Select Market or the Nasdaq Global Market (or any of their respective successors) or will be so listed or quoted
when issued or exchanged in connection with such transaction or transactions and as a result of such transaction or transactions
such consideration becomes Reference Property for the Notes, excluding cash payments for fractional shares and cash payments made
in respect of dissenters’ appraisal rights (subject to the provisions of Section
14.07). If any Merger Event in which the Common Stock is replaced by the common stock of another entity occurs, following
completion of any related Make-Whole Fundamental Change Period (or, in the case of a transaction that would have been a Fundamental
Change or a Make-Whole Fundamental Change but for the proviso immediately following clause (d) of the definition thereof, following
the effective date of such transaction) references to the Company in this definition shall instead be references to such other
entity.

   

    	 	6	 

     

    

 

For purposes of this definition of “Fundamental Change”
above, any transaction that constitutes a Fundamental Change pursuant to both clause (a) and clause (b) of such definition (without
giving effect to the proviso in clause (b)) shall be deemed a Fundamental Change solely under clause (b) of such definition (subject
to the proviso in clause (b)).

 

“Fundamental Change Company Notice”
shall have the meaning specified in Section 15.02(c).

 

“Fundamental Change Repurchase
Date” shall have the meaning specified in Section 15.02(a).

 

“Fundamental Change Repurchase
Notice” shall have the meaning specified in Section 15.02(b)(i).

 

“Fundamental Change Repurchase
Price” shall have the meaning specified in Section 15.02(a).

 

“Global Note” shall have
the meaning specified in Section 2.05(b).

 

“Holder,” as applied
to any Note, or other similar terms (but excluding the term “beneficial holder”), shall mean any Person in whose name
at the time a particular Note is registered on the Note Register.

 

“Indenture” means this
instrument as originally executed or, if amended or supplemented as herein provided, as so amended or supplemented.

 

“Interest Payment Date”
means each January 15 and July 15 of each year, beginning on July 15, 2020.

 

“Last Reported
Sale Price” of the Common Stock (or other security for which a closing sale price must be determined) on any date means
the closing sale price per share (or if no closing sale price is reported, the average of the bid and ask prices or, if more than
one in either case, the average of the average bid and the average ask prices) on that date as reported in composite transactions
for the principal U.S. national or regional securities exchange on which the Common Stock (or such other security) is traded.
If the Common Stock (or such other security) is not listed for trading on a U.S. national or regional securities exchange on the
relevant date, the “Last Reported Sale Price” shall be the last quoted bid price for the Common Stock (or such
other security) in the over-the-counter market on the relevant date as reported by OTC Markets Group Inc. or a similar organization.
If the Common Stock (or such other security) is not so quoted, the “Last Reported Sale Price” shall be the
average of the mid-point of the last bid and ask prices for the Common Stock (or such other security) on the relevant date from
each of at least three nationally recognized independent investment banking firms selected by the Company for this purpose. The
 “Last Reported Sale Price” will be determined without regard to after-hours trading or any other trading outside
of the regular trading session hours.

  

    	 	7	 

     

    

 

“Make-Whole Fundamental Change”
means any transaction or event that constitutes a Fundamental Change (as defined above and determined after giving effect to any
exceptions to or exclusions from such definition, but without regard to the proviso in clause (b) of the definition thereof).

 

“Make-Whole Fundamental Change
Period” shall have the meaning specified in Section 14.03(a).

 

“Market Disruption Event”
means, for the purposes of determining amounts due upon conversion (a) a failure by the primary U.S. national or regional securities
exchange or market on which the Common Stock is listed or admitted for trading to open for trading during its regular trading session
or (b) the occurrence or existence prior to 1:00 p.m., New York City time, on any Scheduled Trading Day for the Common Stock for
more than one half-hour period in the aggregate during regular trading hours of any suspension or limitation imposed on trading
(by reason of movements in price exceeding limits permitted by the relevant stock exchange or otherwise) in the Common Stock or
in any options contracts or futures contracts relating to the Common Stock.

 

“Maturity Date” means
January 15, 2026.

 

“Measurement Period”
shall have the meaning specified in Section 14.01(b)(i).

 

“Merger Event” shall
have the meaning specified in Section 14.07(a).

 

“Note” or “Notes”
shall have the meaning specified in the first paragraph of the recitals of this Indenture.

 

“Note Register” shall
have the meaning specified in Section 2.05(a).

 

“Note Registrar” shall
have the meaning specified in Section 2.05(a).

 

“Notice of Conversion”
shall have the meaning specified in Section 14.02(b).

 

“Observation
Period” with respect to any Note surrendered for conversion means: (i) subject to clause (ii), if the relevant
Conversion Date occurs prior to October 15, 2025, the 40 consecutive Trading Day period beginning on, and including, the second
Trading Day immediately succeeding such Conversion Date; (ii) if the relevant Conversion Date occurs on or after the date
of the Company’s issuance of a Redemption Notice with respect to the Notes pursuant to ‎Section 16.02 and prior to the
relevant Redemption Date (as such Redemption Date may be extended), the 40 consecutive Trading Days beginning on, and including,
the 41st Scheduled Trading Day immediately preceding such Redemption Date; and (iii) subject to clause (ii), if the relevant Conversion
Date occurs on or after October 15, 2025, the 40 consecutive Trading Days beginning on, and including, the 41st Scheduled Trading
Day immediately preceding the Maturity Date.

 

    	 	8	 

     

    

 

“Offering Memorandum”
means the preliminary offering memorandum dated January 8, 2020 as supplemented by the related pricing term sheet dated January
9, 2020, relating to the offering and sale of the Notes.

 

“Officer” means, with
respect to the Company, the Chief Executive Officer, the Chief Financial Officer, the Chief Accounting Officer, General Counsel,
the Treasurer, the Secretary, or any President or Vice President (whether or not designated by a number or numbers or word or words
added before or after the title “President” or “Vice President”).

 

“Officer’s Certificate,”
when used with respect to the Company, means a certificate that is delivered to the Trustee and that is signed by an Officer of
the Company. Each such certificate shall include the statements provided for in Section 17.05 if and to the extent required by
the provisions of such Section. The Officer giving an Officer’s Certificate pursuant to Section 4.08 shall be the principal
executive, financial or accounting officer of the Company.

 

“open of business” means
9:00 a.m. (New York City time).

 

“Opinion of Counsel”
means an opinion in writing signed by legal counsel, who may be an employee of or counsel to the Company, or other counsel reasonably
acceptable to the Trustee, that is delivered to the Trustee, which opinion may contain customary exceptions and qualifications
as to the matters set forth therein. Each such opinion shall include the statements provided for in Section 17.05 if and to the
extent required by the provisions of such Section 17.05.

 

“Optional Redemption”
shall have the meaning specified in ‎Section 16.01.

 

“outstanding,” when used
with reference to Notes, shall, subject to the provisions of Section 8.04, mean, as of any particular time, all Notes authenticated
and delivered by the Trustee under this Indenture, except:

 

(a)       Notes
theretofore canceled by the Trustee or accepted by the Trustee for cancellation;

 

(b)       Notes,
or portions thereof, that have become due and payable and in respect of which monies in the necessary amount shall have been deposited
in trust with the Trustee or with any Paying Agent (other than the Company) or shall have been set aside and segregated in trust
by the Company (if the Company shall act as its own Paying Agent);

 

(c)       Notes
that have been paid pursuant to Section 2.06 or Notes in lieu of which, or in substitution for which, other Notes shall have been
authenticated and delivered pursuant to the terms of Section 2.06 unless proof satisfactory to the Trustee is presented that any
such Notes are held by protected purchasers in due course;

 

    	 	9	 

     

    

 

(d)       Notes
converted pursuant to Article 14 and required to be cancelled pursuant
to Section 2.08; and

 

(e)       Notes
redeemed pursuant to ‎Article 16.

 

“Paying Agent” shall
have the meaning specified in Section 4.02.

 

“Permitted Holder” means
each of Sequoia Capital, Dev Ittycheria, Dwight Merriman, Eliot Horowitz and Kevin P. Ryan, in each case, together with (a) in
the case of each of Dev Ittycheria, Dwight Merriman, Eliot Horowitz and Kevin P. Ryan, (i) his spouse and lineal descendants and
spouses of lineal descendants, (ii) his estate or legal representative, (iii) trusts established for his benefit or for the benefit
of his spouse or lineal descendants or spouses of his lineal descendants or (iv) any entity solely owned and controlled, directly
or indirectly, by him and (b) in the case of Sequoia Capital, its affiliates.

 

“Person” means an individual,
a corporation, a limited liability company, an association, a partnership, a joint venture, a joint stock company, a trust, an
unincorporated organization or a government or an agency or a political subdivision thereof.

 

“Physical Notes” means
permanent certificated Notes in registered form issued in denominations of $1,000 principal amount and integral multiples thereof.

 

“Physical Settlement”
shall have the meaning specified in Section 14.02(a).

 

“Predecessor Note” of
any particular Note means every previous Note evidencing all or a portion of the same debt as that evidenced by such particular
Note; and, for the purposes of this definition, any Note authenticated and delivered under Section 2.06 in lieu of or in exchange
for a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or
stolen Note that it replaces.

 

“Record Date” means,
with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock (or other applicable
security) have the right to receive any cash, securities or other property or in which the Common Stock (or such other security)
is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of holders
of the Common Stock (or such other security) entitled to receive such cash, securities or other property (whether such date is
fixed by the Board of Directors, by statute, by contract or otherwise).

 

“Redemption Date” shall
have the meaning specified in Section 16.02(a).

 

“Redemption Notice” shall
have the meaning specified in Section 16.02(a).

 

“Redemption Notice Date”
means the date on which a Redemption Notice is delivered pursuant to Section 16.02.

 

    	 	10	 

     

    

 

“Redemption Period” means
the period from, and including, the relevant Redemption Notice Date until the close of business on the Scheduled Trading Day immediately
preceding the related Redemption Date.

 

“Redemption Price” means,
for any Notes to be redeemed pursuant to Section 16.01, 100% of the principal amount of such Notes, plus accrued and unpaid
interest, if any, to, but excluding, the Redemption Date (unless the Redemption Date falls after a Regular Record Date but on or
prior to the immediately succeeding Interest Payment Date, in which case interest accrued to the Interest Payment Date will be
paid to Holders of record of such Notes on such Regular Record Date, and the Redemption Price will be equal to 100% of the principal
amount of such Notes).

 

“Reference Property”
shall have the meaning specified in Section 14.07(a).

 

“Regular Record Date,”
with respect to any Interest Payment Date, shall mean the January 1 or July 1 (whether or not such day is a Business Day) immediately
preceding the applicable January 15 and July 15 Interest Payment Date, respectively.

 

“Resale Restriction Termination
Date” shall have the meaning specified in Section 2.05(c).

 

“Responsible Officer”
means, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice
president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee
who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively,
or to whom any corporate trust matter relating to this Indenture is referred because of such person’s knowledge of and familiarity
with the particular subject and who, in each case, shall have direct responsibility for the administration of this Indenture.

 

“Restricted Securities”
shall have the meaning specified in Section 2.05(c).

 

“Rule 144” means Rule
144 as promulgated under the Securities Act.

 

“Rule 144A” means Rule
144A as promulgated under the Securities Act.

 

“Scheduled Trading Day”
means a day that is scheduled to be a Trading Day on the principal U.S. national or regional securities exchange or market on which
the Common Stock is listed or admitted for trading. If the Common Stock is not so listed or admitted for trading, “Scheduled
Trading Day” means a Business Day.

 

“Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Settlement Amount” has
the meaning specified in Section 14.02(a)(iv).

 

    	 	11	 

     

    

 

“Settlement Method” means,
with respect to any conversion of Notes, Physical Settlement, Cash Settlement or Combination Settlement, as elected (or deemed
to have been elected) by the Company.

 

“Settlement Notice” has
the meaning specified in Section 14.02(a)(iii).

 

“Significant Subsidiary”
for purposes of Section 6.01(g)-(i), means a Subsidiary of the Company that meets the definition of “significant subsidiary”
in Article 1, Rule 1-02 of Regulation S-X under the Exchange Act promulgated by the Commission; provided that, in the case of a
Subsidiary of the Company that meets the criteria of clause (3) of the definition thereof but not clause (1) or (2) thereof, such
Subsidiary shall not be deemed to be a Significant Subsidiary unless the Subsidiary’s income (or loss) from continuing operations
before income taxes, extraordinary items and cumulative effect of a change in accounting principle exclusive of amounts attributable
to any non-controlling interests for the last completed fiscal year prior to the date of such determination exceeds $35,000,000.

 

“Specified Dollar Amount”
means the maximum cash amount per $1,000 principal amount of Notes to be received upon conversion as specified in the Settlement
Notice related to any converted Notes (or deemed specified pursuant to Section 14.02(a)).

 

“Spin-Off” shall have
the meaning specified in Section 14.04(c).

 

“Stock Price” shall have
the meaning specified in Section 14.03(c).

 

“Subsidiary” means, with
respect to any Person, any corporation, association, partnership or other business entity of which more than 50% of the total voting
power of shares of Capital Stock or other interests (including partnership interests) entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers, general partners or trustees thereof is at the time owned or
controlled, directly or indirectly, by (i) such Person; (ii) such Person and one or more Subsidiaries of such Person; or (iii)
one or more Subsidiaries of such Person.

 

“Successor Company” shall
have the meaning specified in Section 11.01(a).

 

“Trading Day” means,
except for purposes determining amounts due upon conversion as set forth below, a day on which (i) trading in the Common Stock
(or other security for which a closing sale price must be determined) generally occurs on the Nasdaq Global Market or, if the
Common Stock (or such other security) is not then listed on the Nasdaq Global Market, on the principal other U.S. national or
regional securities exchange on which the Common Stock (or such other security) is then listed or, if the Common Stock (or such
other security) is not then listed on a U.S. national or regional securities exchange, on the principal other market on which
the Common Stock (or such other security) is then traded and (ii) a Last Reported Sale Price for the Common Stock (or closing
sale price for such other security) is available on such securities exchange or market; provided that if the Common Stock
(or such other security) is not so listed or traded, “Trading Day” means a Business Day; and provided,
further, that for purposes of determining amounts due upon conversion only, “Trading Day” means a day
on which (x) there is no Market Disruption Event and (y) trading in the Common Stock generally occurs on the Nasdaq Global Market
or, if the Common Stock is not then listed on the Nasdaq Global Market, on the principal other U.S. national or regional securities
exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a U.S. national or regional securities
exchange, on the principal other market on which the Common Stock is then listed or admitted for trading, except that if the Common
Stock is not so listed or admitted for trading, “Trading Day” means a Business Day.

  

    	 	12	 

     

    

 

“Trading Price” of the
Notes on any date of determination means the average of the secondary market bid quotations obtained by the Bid Solicitation Agent
for $5,000,000 principal amount of Notes at approximately 3:30 p.m., New York City time, on such determination date from three
independent nationally recognized securities dealers the Company selects for this purpose; provided that if three such bids
cannot reasonably be obtained by the Bid Solicitation Agent but two such bids are obtained, then the average of the two bids shall
be used, and if only one such bid can reasonably be obtained by the Bid Solicitation Agent, that one bid shall be used. If, on
any determination date, the Bid Solicitation Agent cannot reasonably obtain at least one bid for $5,000,000 principal amount of
Notes on such date from a nationally recognized securities dealer, then the Trading Price per $1,000 principal amount of Notes
on such determination date shall be deemed to be less than 98% of the product of the Last Reported Sale Price of the Common Stock
and the Conversion Rate.

 

“transfer” shall have
the meaning specified in Section 2.05(c).

 

“Trigger Event” shall
have the meaning specified in Section 14.04(c).

 

“Trust Indenture Act”
means the Trust Indenture Act of 1939, as amended, as it was in force at the date of execution of this Indenture; provided,
however, that in the event the Trust Indenture Act of 1939 is amended after the date hereof, the term “Trust Indenture
Act” shall mean, to the extent required by such amendment, the Trust Indenture Act of 1939, as so amended.

 

“Trustee” means the Person
named as the “Trustee” in the first paragraph of this Indenture until a successor trustee shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include
each Person who is then a Trustee hereunder.

 

“unit of Reference Property”
shall have the meaning specified in Section 14.07(a).

 

“Valuation Period” shall
have the meaning specified in Section 14.04(c).

 

“Wholly-Owned Subsidiary”
means, with respect to any Person, any direct or indirect Subsidiary of such Person, except that, solely for purposes of this definition,
the reference to “more than 50%” in the definition of “Subsidiary” shall be deemed replaced by a reference
to “100%,” the calculation of which shall exclude nominal amounts of the voting power of shares of Capital Stock or
other interests in the relevant Subsidiary not held by such Person to the extent required to satisfy local minority interest requirements
outside of the United States.

 

    	 	13	 

     

    

 

Section 1.02. References to Interest.
Unless the context otherwise requires, any reference to interest on, or in respect of, any Note in this Indenture shall be deemed
to include Additional Interest if, in such context, Additional Interest is, was or would be payable pursuant to any of Section
4.06(d), Section 4.06(e) and Section 6.03. Unless the context otherwise requires, any express mention of Additional Interest in
any provision hereof shall not be construed as excluding Additional Interest in those provisions hereof where such express mention
is not made.

 

Article
2

Issue, Description, Execution, Registration and Exchange of Notes

 

Section 2.01. Designation and Amount.
The Notes shall be designated as the “0.25% Convertible Senior Notes due 2026.” The aggregate principal amount of Notes
that may be authenticated and delivered under this Indenture is initially limited to $1,150,000,000, subject to Section 2.10 and
except for Notes authenticated and delivered upon registration or transfer of, or in exchange for, or in lieu of other Notes to
the extent expressly permitted hereunder.

 

Section 2.02. Form of Notes. The
Notes and the Trustee’s certificate of authentication to be borne by such Notes shall be substantially in the respective
forms set forth in Exhibit A, the terms and provisions of which shall constitute, and are hereby expressly incorporated in and
made a part of this Indenture. To the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. In the case of any conflict between this Indenture and a
Note, the provisions of this Indenture shall control and govern to the extent of such conflict.

 

Any Global Note may be endorsed with or
have incorporated in the text thereof such legends or recitals or changes not inconsistent with the provisions of this Indenture
as may be required by the Custodian or the Depositary, or as may be required to comply with any applicable law or any regulation
thereunder or with the rules and regulations of any securities exchange or automated quotation system upon which the Notes may
be listed or traded or designated for issuance or to conform with any usage with respect thereto, or to indicate any special limitations
or restrictions to which any particular Notes are subject.

 

Any of the Notes may have such letters,
numbers or other marks of identification and such notations, legends or endorsements as the Officer executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this Indenture,
or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation
of any securities exchange or automated quotation system on which the Notes may be listed or designated for issuance, or to conform
to usage or to indicate any special limitations or restrictions to which any particular Notes are subject.

 

Each Global Note shall
represent such principal amount of the outstanding Notes as shall be specified therein and shall provide that it shall represent
the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount
of outstanding Notes represented thereby may from time to time be increased or reduced to reflect redemptions, repurchases, cancellations,
conversions, transfers or exchanges permitted hereby. Any endorsement of a Global Note to reflect the amount of any increase or
decrease in the amount of outstanding Notes represented thereby shall be made by the Trustee or the Custodian, at the direction
of the Trustee, in such manner and upon instructions given by the Holder of such Notes in accordance with this Indenture. Payment
of principal (including the Redemption Price and the Fundamental Change Repurchase Price, if applicable) of, and accrued and unpaid
interest on, a Global Note shall be made to the Holder of such Note on the date of payment, unless a record date or other means
of determining Holders eligible to receive payment is provided for herein.

  

    	 	14	 

     

    

 

Section 2.03. Date and Denomination of
Notes; Payments of Interest and Defaulted Amounts. (a) The Notes shall be issuable in registered form without coupons in denominations
of $1,000 principal amount and integral multiples thereof. Each Note shall be dated the date of its authentication and shall bear
interest from the date specified on the face of such Note. Accrued interest on the Notes shall be computed on the basis of a 360-day
year composed of twelve 30-day months and, for partial months, on the basis of the number of days actually elapsed in a 30-day
month.

 

(b)           
The Person in whose name any Note (or its Predecessor Note) is registered on the Note Register at the close of business
on any Regular Record Date with respect to any Interest Payment Date shall be entitled to receive the interest payable on such
Interest Payment Date. The Company shall pay (or cause the Paying Agent to pay) the principal amount of any Note (x) in the case
of any Physical Note, at the office or agency of the Company designated by the Company for such purposes in the United States of
America, which shall initially be the Corporate Trust Office and (y) in the case of any Global Note, by wire transfer of immediately
available funds to the account of the Depositary or its nominee. The Company shall pay (or cause the Paying Agent to pay) interest
(i) on any Physical Notes (A) to Holders holding Physical Notes having an aggregate principal amount of $5,000,000 or less, by
check mailed to the Holders of these Notes at their address as it appears in the Note Register and (B) to Holders holding Physical
Notes having an aggregate principal amount of more than $5,000,000, either by check mailed to each such Holder or, upon application
by such a Holder to the Note Registrar (containing the requisite information for the Trustee or Paying Agent to make such wire
transfer) not later than the relevant Regular Record Date, by wire transfer in immediately available funds to that Holder’s
account within the United States of America if such Holder has provided the Company, the Trustee or the Paying Agent (if other
than the Trustee) with the requisite information necessary to make such wire transfer, which application shall remain in effect
until the Holder notifies, in writing, the Note Registrar to the contrary or (ii) on any Global Note by wire transfer of immediately
available funds to the account of the Depositary or its nominee.

 

(c)           
Any Defaulted Amounts shall forthwith cease to be payable to the Holder on the relevant payment date but shall accrue interest
per annum at the rate borne by the Notes from, and including, such relevant payment date, and such Defaulted Amounts together with
such interest thereon shall be paid by the Company, at its election in each case, as provided in clause (i) or (ii) below:

 

    	 	15	 

     

    

  

(i)           
The Company may elect to make payment of any Defaulted Amounts to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at the close of business on a special record date for the payment of such Defaulted Amounts,
which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of the Defaulted Amounts
proposed to be paid on each Note and the date of the proposed payment (which shall be not less than 25 days after the receipt
by the Trustee of such notice, unless the Trustee shall consent to an earlier date), and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount to be paid in respect of such Defaulted Amounts or shall make
arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such money when deposited
to be held in trust for the benefit of the Persons entitled to such Defaulted Amounts as in this clause provided. Thereupon the
Company shall fix a special record date for the payment of such Defaulted Amounts which shall be not more than 15 days and not
less than 10 days prior to the date of the proposed payment, and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment (unless the Trustee shall consent to an earlier date). The Company shall promptly notify the Trustee
in writing of such special record date and the Trustee, in the name and at the expense of the Company, shall cause notice of the
proposed payment of such Defaulted Amounts and the special record date therefor to be delivered to each Holder at its address
as it appears in the Note Register, or by electronic means to the Depositary in the case of Global Notes, not less than 10 days
prior to such special record date. Notice of the proposed payment of such Defaulted Amounts and the special record date therefor
having been so delivered, such Defaulted Amounts shall be paid to the Persons in whose names the Notes (or their respective Predecessor
Notes) are registered at the close of business on such special record date and shall no longer be payable pursuant to the following
clause (ii) of this Section 2.03(c). The Trustee shall have no
responsibility whatsoever for the calculation of the Defaulted Amounts.

 

(ii)           
The Company may make payment of any Defaulted Amounts in any other lawful manner not inconsistent with the requirements
of any securities exchange or automated quotation system on which the Notes may be listed or designated for issuance, and upon
such notice as may be required by such exchange or automated quotation system, if, after written notice given by the Company to
the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

 

Section 2.04. Execution, Authentication
and Delivery of Notes. The Notes shall be signed in the name and on behalf of the Company by the manual or facsimile signature
of any of its Chief Executive Officer, President, Chief Financial Officer, Treasurer, Secretary or any of its Executive or Senior
Vice Presidents.

 

At any time and from time to time after
the execution and delivery of this Indenture, the Company may deliver Notes executed by the Company to the Trustee for authentication,
together with a Company Order for the authentication and delivery of such Notes, and the Trustee in accordance with such Company
Order shall authenticate and deliver such Notes, without any further action by the Company hereunder; provided that, as set forth
in Section 17.05, the Trustee shall be entitled to receive an Officer’s Certificate and an Opinion of Counsel of the Company
with respect to the issuance, authentication and delivery of such Notes.

 

    	 	16	 

     

    

 

Only such Notes as shall bear thereon a
certificate of authentication substantially in the form set forth on the Form of Note attached as Exhibit A hereto, executed manually
by an authorized signatory of the Trustee (or an authenticating agent appointed by the Trustee as provided by Section 17.10), shall
be entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee (or such
an authenticating agent) upon any Note executed by the Company shall be conclusive evidence that the Note so authenticated has
been duly authenticated and delivered hereunder and that the Holder is entitled to the benefits of this Indenture.

 

In case any Officer of the Company who shall
have signed any of the Notes shall cease to be such Officer before the Notes so signed shall have been authenticated and delivered
by the Trustee, or disposed of by the Company, such Notes nevertheless may be authenticated and delivered or disposed of as though
the Person who signed such Notes had not ceased to be such Officer of the Company; and any Note may be signed on behalf of the
Company by such persons as, at the actual date of the execution of such Note, shall be the Officers of the Company, although at
the date of the execution of this Indenture any such Person was not such an Officer.

 

Section 2.05. Exchange and Registration
of Transfer of Notes; Restrictions on Transfer; Depositary. (a) The Company shall cause to be kept at the Corporate Trust Office
a register (the register maintained in such office or in any other office or agency of the Company designated pursuant to Section
4.02, the “Note Register”) in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Notes and of transfers of
Notes. Such register shall be in written form or in any form capable of being converted into written form within a reasonable period
of time. The Trustee is hereby initially appointed the “Note Registrar” for the purpose of registering Notes
and transfers of Notes as herein provided. The Company may appoint one or more co-Note Registrars in accordance with Section 4.02.

 

Upon surrender for registration of transfer
of any Note to the Note Registrar or any co-Note Registrar, and satisfaction of the requirements for such transfer set forth in
this Section 2.05, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Notes of any authorized denominations and of a like aggregate principal amount and bearing such
restrictive legends as may be required by this Indenture.

 

Notes may be exchanged for other Notes of
any authorized denominations and of a like aggregate principal amount, upon surrender of the Notes to be exchanged at any such
office or agency maintained by the Company pursuant to Section 4.02. Whenever any Notes are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Notes that the Holder making the exchange is entitled to receive,
bearing registration numbers not contemporaneously outstanding.

 

All Notes presented or surrendered for registration
of transfer or for exchange, repurchase or conversion shall (if so required by the Company, the Trustee, the Note Registrar or
any co-Note Registrar) be duly endorsed, or be accompanied by a written instrument or instruments of transfer in form satisfactory
to the Company and duly executed, by the Holder thereof or its attorney-in-fact duly authorized in writing.

 

    	 	17	 

     

    

 

No service charge shall be imposed by the
Company, the Trustee, the Note Registrar, any co-Note Registrar or the Paying Agent for any exchange or registration of transfer
of Notes, but the Company may require a Holder to pay a sum sufficient to cover any documentary, stamp or similar issue or transfer
tax required in connection therewith as a result of the name of the Holder of new Notes issued upon such exchange or registration
of transfer being different from the name of the Holder of the old Notes surrendered for exchange or registration of transfer.

 

None of the Company, the Trustee, the Note
Registrar or any co-Note Registrar shall be required to exchange or register a transfer of (i) any Notes surrendered for conversion
or, if a portion of any Note is surrendered for conversion, such portion thereof surrendered for conversion, (ii) any Notes, or
a portion of any Note, surrendered for repurchase (and not withdrawn) in accordance with Article 15 or
(iii) any Notes selected for redemption in accordance with Article 16, except the unredeemed portion of any Note being redeemed
in part.

 

All Notes issued upon any registration of
transfer or exchange of Notes in accordance with this Indenture shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture as the Notes surrendered upon such registration of transfer or exchange.

 

(b)           
So long as the Notes are eligible for book-entry settlement with the Depositary, unless otherwise required by law, subject
to the fourth paragraph from the end of Section 2.05(c) all Notes shall be represented by one or more Notes in global form (each,
a “Global Note”) registered in the name of the Depositary or the nominee of the Depositary. Each Global Note
shall bear the legend required on a Global Note set forth in Exhibit A hereto. The transfer and exchange of beneficial interests
in a Global Note that does not involve the issuance of a Physical Note shall be effected through the Depositary (but not the Trustee
or the Custodian) in accordance with this Indenture (including the restrictions on transfer set forth herein) and the procedures
of the Depositary therefor.

 

(c)           
Every Note that bears or is required under this Section 2.05(c) to bear the legend set forth in this Section 2.05(c) (together
with any Common Stock issued upon conversion of the Notes that is required to bear the legend set forth in Section 2.05(d), collectively,
the “Restricted Securities”) shall be subject to the restrictions on transfer set forth in this Section 2.05(c)
(including those contained in the legend set forth below), unless such restrictions on transfer shall be eliminated or otherwise
waived by written consent of the Company, and the Holder of each such Restricted Security, by such Holder’s acceptance thereof,
agrees to be bound by all such restrictions on transfer. As used in this Section 2.05(c) and Section 2.05(d), the term “transfer”
encompasses any sale, pledge, transfer or other disposition whatsoever of any Restricted Security.

 

Until the date (the “Resale Restriction
Termination Date”) that is the later of (1) the date that is one year after the last date of original issuance of the
Notes, or such shorter period of time as permitted by Rule 144 or any successor provision thereto, and (2) such later date, if
any, as may be required by applicable law, any certificate evidencing such Note (and all securities issued in exchange therefor
or substitution thereof, other than Common Stock, if any, issued upon conversion thereof, which shall bear the legend set forth
in Section 2.05(d), if applicable) shall bear a legend in substantially the following form (unless such Notes have been transferred
pursuant to a registration statement that has become or been declared effective under the Securities Act and that continues to
be effective at the time of such transfer, or sold pursuant to the exemption from registration provided by Rule 144 or any similar
provision then in force under the Securities Act, or unless otherwise agreed by the Company in writing, with notice thereof to
the Trustee):

 

    	 	18	 

     

    

 

THIS SECURITY AND THE COMMON STOCK, IF ANY,
ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE.
BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER:

 

(1)       REPRESENTS
THAT IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A
UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND

 

(2)       AGREES
FOR THE BENEFIT OF MONGODB, INC. (THE “COMPANY”) THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER
THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL ISSUE
DATE HEREOF OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THERETO
AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW, EXCEPT:

 

(A)       TO
THE COMPANY OR ANY SUBSIDIARY THEREOF, OR

 

(B)       PURSUANT
TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, OR

 

(C)       TO
A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, OR

 

(D)       PURSUANT
TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.

 

PRIOR TO THE REGISTRATION OF ANY TRANSFER
IN ACCORDANCE WITH CLAUSE (2)(D) ABOVE, THE COMPANY AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS,
CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER FOR THE COMPANY TO DETERMINE THAT THE PROPOSED TRANSFER
IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY
OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

    	 	19	 

     

    

 

No transfer of any Note prior to the Resale
Restriction Termination Date will be registered by the Note Registrar unless the applicable box on the Form of Assignment and Transfer
has been checked.

 

Any Note (or security issued in exchange
or substitution therefor) (i) as to which such restrictions on transfer shall have expired in accordance with their terms, (ii)
that has been transferred pursuant to a registration statement that has become effective or been declared effective under the Securities
Act and that continues to be effective at the time of such transfer or (iii) that has been sold pursuant to the exemption from
registration provided by Rule 144 or any similar provision then in force under the Securities Act, may, upon surrender of such
Note for exchange to the Note Registrar in accordance with the provisions of this Section 2.05, be exchanged for a new Note or
Notes, of like tenor and aggregate principal amount, which shall not bear the restrictive legend required by this Section 2.05(c)
and shall not be assigned a restricted CUSIP number. The Company shall
be entitled to instruct the Custodian in writing to so surrender any Global Note as to which any of the conditions set forth in
clause (i) through (iii) of the immediately preceding sentence have been satisfied, and, upon such instruction, the Custodian shall
so surrender such Global Note for exchange; and any new Global Note so exchanged therefor shall not bear the restrictive legend
specified in this Section 2.05(c) and shall not be assigned a restricted
CUSIP number. The Company shall promptly notify the Trustee upon the occurrence of the Resale Restriction Termination Date
and promptly after a registration statement, if any, with respect to the Notes or any Common Stock issued upon conversion of the
Notes has been declared effective under the Securities Act. Any exchange pursuant to the foregoing paragraph shall be in accordance
with the applicable procedures of the Depositary.

 

Notwithstanding any other provisions of
this Indenture (other than the provisions set forth in this Section 2.05(c)), a Global Note may not be transferred as a whole or
in part except (i) by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary
and (ii) for transfers of portions of a Global Note in certificated form made upon request of a member of, or a participant in,
the Depositary (for itself or on behalf of a beneficial owner) by written notice given to the Trustee by or on behalf of the Depositary
in accordance with applicable procedures of the Depositary and in compliance with this Section 2.05(c).

 

The Depositary shall be a clearing agency
registered under the Exchange Act. The Company initially appoints The Depository Trust Company to act as Depositary with respect
to each Global Note. Initially, each Global Note shall be issued to the Depositary, registered in the name of Cede & Co., as
the nominee of the Depositary, and deposited with the Trustee as custodian for Cede & Co.

 

If (i) the Depositary notifies the Company
at any time that the Depositary is unwilling or unable to continue as depositary for the Global Notes and a successor depositary
is not appointed within 90 days, (ii) the Depositary ceases to be registered as a clearing agency under the Exchange Act and a
successor depositary is not appointed within 90 days or (iii) an Event of Default with respect to the Notes has occurred and is
continuing and, subject to the Depositary’s applicable procedures, a beneficial owner of any Note requests that its beneficial
interest therein be issued as a Physical Note, the Company shall execute, and the Trustee, upon receipt of an Officer’s
Certificate and a Company Order for the authentication and delivery of Notes, shall authenticate and deliver (x) in the case of
clause (iii), a Physical Note to such beneficial owner in a principal amount equal to the principal amount of such Note corresponding
to such beneficial owner’s beneficial interest and (y) in the case of clause (i) or (ii), Physical Notes to each beneficial
owner of the related Global Notes (or a portion thereof) in an aggregate principal amount equal to the aggregate principal amount
of such Global Notes in exchange for such Global Notes, and upon delivery of the Global Notes to the Trustee such Global Notes
shall be canceled.

 

    	 	20	 

     

    

 

At such time as all interests in a Global
Note have been converted, canceled, redeemed, repurchased upon a Fundamental Change or transferred, such Global Note shall be,
upon receipt thereof, canceled by the Trustee in accordance with standing procedures and existing instructions between the Depositary
and the Custodian. At any time prior to such cancellation, if any interest in a Global Note is exchanged for Physical Notes, converted,
canceled, redeemed, repurchased upon a Fundamental Change or transferred to a transferee who receives Physical Notes therefor or
any Physical Note is exchanged or transferred for part of such Global Note, the principal amount of such Global Note shall, in
accordance with the standing procedures and instructions existing between the Depositary and the Custodian, be appropriately reduced
or increased, as the case may be, and an endorsement shall be made on such Global Note, by the Trustee or the Custodian, at the
direction of the Trustee, to reflect such reduction or increase.

 

None of the Company, the Trustee or any
agent of the Company or the Trustee shall have any responsibility or liability for any act or omission of the Depositary or for
the payment of amounts to owners of beneficial interest in a Global Note, for any aspect of the records relating to or payments
made on account of beneficial ownership interests of a Global Note or maintaining, supervising or reviewing any records relating
to such beneficial ownership interests.

 

(d)          Until the Resale Restriction Termination Date, any stock certificate representing Common Stock issued upon conversion of
such Note shall bear a legend in substantially the following form (unless such Common Stock has been transferred pursuant to a
registration statement that has become or been declared effective under the Securities Act and that continues to be effective at
the time of such transfer, or pursuant to the exemption from registration provided by Rule 144 or any similar provision then in
force under the Securities Act, or such Common Stock has been issued upon conversion of a Note that has been transferred pursuant
to a registration statement that has become or been declared effective under the Securities Act and that continues to be effective
at the time of such transfer, or pursuant to the exemption from registration provided by Rule 144 or any similar provision then
in force under the Securities Act, or unless otherwise agreed by the Company with written notice thereof to the Trustee and any
transfer agent for the Common Stock):

 

    	 	21	 

     

    

 

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE
ACQUIRER:

 

(1)           REPRESENTS
THAT IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A
UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND

 

(2)           AGREES
FOR THE BENEFIT OF MONGODB, INC. (THE “COMPANY”) THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER
THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL ISSUE
DATE OF THE SERIES OF NOTES UPON THE CONVERSION OF WHICH THIS SECURITY WAS ISSUED OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY
RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THERETO AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE
LAW, EXCEPT:

 

(A)       TO
THE COMPANY OR ANY SUBSIDIARY THEREOF, OR

 

(B)       PURSUANT
TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, OR

 

(C)       TO
A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, OR

 

(D)       PURSUANT
TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.

 

PRIOR TO THE REGISTRATION OF ANY TRANSFER
IN ACCORDANCE WITH CLAUSE (2)(D) ABOVE, THE COMPANY AND THE TRANSFER AGENT FOR THE COMPANY’S COMMON STOCK RESERVE THE RIGHT
TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER FOR THE
COMPANY TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

    	 	22	 

     

    

 

Any such Common Stock (i) as to which such
restrictions on transfer shall have expired in accordance with their terms, (ii) that has been transferred pursuant to a registration
statement that has become or been declared effective under the Securities Act and that continues to be effective at the time of
such transfer or (iii) that has been sold pursuant to the exemption from registration provided by Rule 144 or any similar provision
then in force under the Securities Act, may, upon surrender of the certificates representing such shares of Common Stock for exchange
in accordance with the procedures of the transfer agent for the Common Stock, be exchanged for a new certificate or certificates
for a like aggregate number of shares of Common Stock, which shall not bear the restrictive legend required by this Section 2.05(d).

 

(e)           
Any Note or Common Stock issued upon the conversion or exchange of a Note that is repurchased or owned by any Affiliate
of the Company (or any Person who was an Affiliate of the Company at any time during the three months preceding) may not be resold
by such Affiliate (or such Person, as the case may be) unless registered under the Securities Act or resold pursuant to an exemption
from the registration requirements of the Securities Act in a transaction that results in such Note or Common Stock, as the case
may be, no longer being a “restricted security” (as defined under Rule 144). The Company may cause any Note that is
repurchased or owned by it to be surrendered to the Trustee for cancellation in accordance with Section 2.08.

 

(f)           
The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on
transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including
any transfers between or among Depositary participants or beneficial owners of interests in any Global Note) other than to require
delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly
required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express
requirements hereof.

 

(g)           
Neither the Trustee nor any agent shall have any responsibility or liability for any actions taken or not taken by the Depositary.

 

Section 2.06. Mutilated, Destroyed, Lost
or Stolen Notes. In case any Note shall become mutilated or be destroyed, lost or stolen, the Company in its discretion may
execute, and upon its written request the Trustee or an authenticating agent appointed by the Trustee shall authenticate and deliver,
a new Note, bearing a registration number not contemporaneously outstanding, in exchange and substitution for the mutilated Note,
or in lieu of and in substitution for the Note so destroyed, lost or stolen. In every case the applicant for a substituted Note
shall furnish to the Company, to the Trustee and, if applicable, to such authenticating agent such security or indemnity as may
be required by them to save each of them harmless from any loss, liability, cost or expense caused by or connected with such substitution,
and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company, to the Trustee and, if applicable,
to such authenticating agent evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership
thereof.

 

    	 	23	 

     

    

 

The Trustee or such authenticating agent
may authenticate any such substituted Note and deliver the same upon the receipt of such security or indemnity as the Trustee,
the Company and, if applicable, such authenticating agent may require. No service charge shall be imposed by the Company, the Trustee,
the Note Registrar, any co-Note Registrar or the Paying Agent upon the issuance of any substitute Note, but the Company may require
a Holder to pay a sum sufficient to cover any documentary, stamp or similar issue or transfer tax required in connection therewith
as a result of the name of the Holder of the new substitute Note being different from the name of the Holder of the old Note that
became mutilated or was destroyed, lost or stolen. In case any Note that has matured or is about to mature or has been surrendered
for required repurchase or is about to be converted in accordance with Article 14 shall become mutilated or be destroyed, lost
or stolen, the Company may, in its sole discretion, instead of issuing a substitute Note, pay or authorize the payment of or convert
or authorize the conversion of the same (without surrender thereof except in the case of a mutilated Note), as the case may be,
if the applicant for such payment or conversion shall furnish to the Company, to the Trustee and, if applicable, to such authenticating
agent such security or indemnity as may be required by them to save each of them harmless for any loss, liability, cost or expense
caused by or connected with such substitution, and, in every case of destruction, loss or theft, evidence satisfactory to the Company,
the Trustee and, if applicable, any Paying Agent or Conversion Agent of the destruction, loss or theft of such Note and of the
ownership thereof.

 

Every substitute Note issued pursuant to
the provisions of this Section 2.06 by virtue of the fact that any Note is destroyed, lost or stolen shall constitute an additional
contractual obligation of the Company, whether or not the destroyed, lost or stolen Note shall be found at any time, and shall
be entitled to all the benefits of (but shall be subject to all the limitations set forth in) this Indenture equally and proportionately
with any and all other Notes duly issued hereunder. To the extent permitted by law, all Notes shall be held and owned upon the
express condition that the foregoing provisions are exclusive with respect to the replacement, payment, conversion, redemption
or repurchase of mutilated, destroyed, lost or stolen Notes and shall preclude any and all other rights or remedies notwithstanding
any law or statute existing or hereafter enacted to the contrary with respect to the replacement, payment, conversion, redemption
or repurchase of negotiable instruments or other securities without their surrender.

 

Section 2.07. Temporary Notes. Pending
the preparation of Physical Notes, the Company may execute and the Trustee or an authenticating agent appointed by the Trustee
shall, upon written request of the Company, authenticate and deliver temporary Notes (printed or lithographed). Temporary Notes
shall be issuable in any authorized denomination, and substantially in the form of the Physical Notes but with such omissions,
insertions and variations as may be appropriate for temporary Notes, all as may be determined by the Company. Every such temporary
Note shall be executed by the Company and authenticated by the Trustee or such authenticating agent upon the same conditions and
in substantially the same manner, and with the same effect, as the Physical Notes. Without unreasonable delay, the Company shall
execute and deliver to the Trustee or such authenticating agent Physical Notes (other than any Global Note) and thereupon any or
all temporary Notes (other than any Global Note) may be surrendered in exchange therefor, at each office or agency maintained by
the Company pursuant to Section 4.02 and the Trustee or such authenticating agent shall authenticate and deliver in exchange for
such temporary Notes an equal aggregate principal amount of Physical Notes. Such exchange shall be made by the Company at its own
expense and without any charge therefor. Until so exchanged, the temporary Notes shall in all respects be entitled to the same
benefits and subject to the same limitations under this Indenture as Physical Notes authenticated and delivered hereunder.

 

    	 	24	 

     

    

 

Section 2.08. Cancellation of Notes Paid,
Converted, Etc. The Company shall cause all Notes surrendered for the purpose of payment at maturity, repurchase upon a Fundamental
Change, redemption, registration of transfer or exchange or conversion (other than any Notes exchanged pursuant to Section 14.12),
if surrendered to the Company or any of its agents, Subsidiaries or Affiliates, in each case, that the Company controls, to be
surrendered to the Trustee for cancellation. All Notes delivered to the Trustee shall be canceled promptly by it, in accordance
with its customary procedures. Except for Notes surrendered for registration of transfer or exchange, no Notes shall be authenticated
in exchange therefor except as expressly permitted by any of the provisions of this Indenture. The Trustee shall dispose of canceled
Notes in accordance with its customary procedures and, after such disposition, shall deliver evidence of such disposition to the
Company upon the Company’s written request.

 

Section 2.09. CUSIP Numbers. The
Company in issuing the Notes may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use
 “CUSIP” numbers in all notices issued to Holders as a convenience to such Holders; provided that any such notice
may state that no representation is made as to the correctness of such numbers either as printed on the Notes or on such notice
and that reliance may be placed only on the other identification numbers printed on the Notes. The Company shall promptly notify
the Trustee in writing of any change in the “CUSIP” numbers.

 

Section 2.10. Additional Notes; Repurchases.
The Company may, without the consent, or notice to, of the Holders and notwithstanding Section 2.01, reopen this Indenture and
issue additional Notes hereunder with the same terms as the Notes initially issued hereunder (other than differences in the issue
date, the issue price, interest accrued prior to the issue date of such additional Notes and, if applicable, restrictions on transfer
in respect of such additional Notes (including pursuant to Section 2.05 hereunder)) in an unlimited aggregate principal amount;
provided that if any such additional Notes are not fungible with the Notes initially issued hereunder for U.S. federal securities
law or income tax purposes, such additional Notes shall have one or more separate CUSIP numbers. Prior to the issuance of any such
additional Notes, the Company shall deliver to the Trustee a Company Order, an Officer’s Certificate and an Opinion of Counsel,
such Officer’s Certificate and Opinion of Counsel to cover such matters required by Section 17.05. In addition, the Company
may, to the extent permitted by law, and, without the consent of Holders, directly or indirectly (regardless of whether such Notes
are surrendered to the Company), repurchase Notes in the open market or otherwise, whether by the Company or its Subsidiaries or
through a privately negotiated transaction or public tender or exchange offer or through counterparties to private agreements,
including by cash-settled swaps or other derivatives. The Company may, at its option and to the extent permitted by applicable
law, reissue, resell or surrender to the Trustee for cancellation in accordance with Section 2.08 any Notes that the Company may
repurchase, in the case of a reissuance or resale, so long as such Notes do not constitute restricted securities upon such reissuance
or resale. Any Notes that the Company may repurchase will be considered “outstanding” for all purposes under this Indenture
(other than, at any time when such Notes are owned by the Company, by any Subsidiary thereof or by any Affiliate of the Company
or any Subsidiary thereof, as set forth in Section 8.04) unless and until such time the Company surrenders them to the Trustee
for cancellation and, upon receipt of a written order from the Company, the Trustee will cancel all Notes so surrendered.

 

    	 	25	 

     

    

 

Article
3

Satisfaction and Discharge

 

Section 3.01. Satisfaction and Discharge.
(a) This Indenture and the Notes shall cease to be of further effect when (i) all Notes theretofore authenticated and delivered
(other than (x) Notes which have been destroyed, lost or stolen and which have been replaced, paid or converted as provided in
Section 2.06 and (y) Notes for whose payment money has heretofore been
deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such
trust, as provided in Section 4.04(d)) have been delivered to the Trustee for cancellation; or (ii) the Company has deposited
with the Trustee or delivered to Holders, as applicable, after the Notes have become due and payable, whether on the Maturity Date,
any Redemption Date, any Fundamental Change Repurchase Date, upon conversion or otherwise, cash or cash, shares of Common Stock
or a combination thereof, as applicable, solely to satisfy the Company’s Conversion Obligation, sufficient to pay all of
the outstanding Notes and all other sums due and payable under this Indenture or the Notes by the Company; and (b) the Trustee
upon request of the Company contained in an Officer’s Certificate and at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture and the Notes, when the Company has delivered to the Trustee
an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating
to the satisfaction and discharge of this Indenture and the Notes have been complied with. Notwithstanding the satisfaction and
discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.06 shall survive.

 

Article
4

Particular Covenants of the Company

 

Section 4.01. Payment of Principal and
Interest. The Company covenants and agrees that it will cause to be paid the principal (including the Redemption Price, the
Fundamental Change Repurchase Price, if applicable) of, and accrued and unpaid interest on, each of the Notes at the places, at
the respective times and in the manner provided herein and in the Notes.

 

Section 4.02. Maintenance of Office or
Agency. The Company will maintain in the United States of America an office or agency where the Notes may be surrendered for
registration of transfer or exchange or for presentation for payment or repurchase (“Paying Agent”) or for conversion
(“Conversion Agent”) and where notices and demands to or upon the Company in respect of the Notes and this Indenture
may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such
office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish
the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate
Trust Office in the United States of America as a place where Notes may be presented for payment or for registration of transfer.

 

    	 	26	 

     

    

 

The Company may also from time to time designate
as co-Note Registrars one or more other offices or agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided that no such designation or rescission shall in any
manner relieve the Company of its obligation to maintain an office or agency in the United States of America so designated by the
Trustee as a place for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other office or agency. The terms “Paying Agent” and “Conversion
Agent” include any such additional or other offices or agencies, as applicable.

 

The Company hereby initially designates
the Trustee as the Paying Agent, Note Registrar, Custodian and Conversion Agent and the Corporate Trust Office as the office or
agency in the United States of America where Notes may be surrendered for registration of transfer or exchange or for presentation
for payment or repurchase or for conversion and where notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served; provided that the Corporate Trust Office shall not be a place for service of legal process on the Company.

 

Section 4.03. Appointments to Fill Vacancies
in Trustee’s Office. The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint,
in the manner provided in Section 7.09, a Trustee, so that there shall at all times be a Trustee hereunder.

 

Section 4.04. Provisions as to Paying
Agent. (a) If the Company shall appoint a Paying Agent other than the Trustee, the Company will cause such Paying Agent to
execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of
this Section 4.04:

 

(i)            
that it will hold all sums held by it as such agent for the payment of the principal (including the Redemption Price, the
Fundamental Change Repurchase Price, if applicable) of, and accrued and unpaid interest on, the Notes in trust for the benefit
of the Holders of the Notes;

 

(ii)           
that it will give the Trustee prompt written notice of any failure by the Company to make any payment of the principal (including
the Redemption Price, the Fundamental Change Repurchase Price, if applicable) of, and accrued and unpaid interest on, the Notes
when the same shall be due and payable; and

 

(iii)           that at any time during the continuance of an Event of Default, upon request of the Trustee, it will forthwith pay to the
Trustee all sums so held in trust.

 

The Company shall, on or before each due
date of the principal (including the Redemption Price, the Fundamental Change Repurchase Price, if applicable) of, or accrued and
unpaid interest on, the Notes, deposit with the Paying Agent a sum sufficient to pay such principal (including the Redemption Price,
the Fundamental Change Repurchase Price, if applicable) or accrued and unpaid interest, and (unless such Paying Agent is the Trustee)
the Company will promptly notify the Trustee in writing of any failure to take such action; provided that if such deposit
is made on the due date, such deposit must be received by the Paying Agent by 11:00 a.m., New York City time, on such date.

 

    	 	27	 

     

    

 

(b)           
If the Company shall act as its own Paying Agent, it will, on or before each due date of the principal (including the Redemption
Price, the Fundamental Change Repurchase Price, if applicable) of, and accrued and unpaid interest on, the Notes, set aside, segregate
and hold in trust for the benefit of the Holders of the Notes a sum sufficient to pay such principal (including the Redemption
Price, the Fundamental Change Repurchase Price, if applicable) and accrued and unpaid interest so becoming due and will promptly
notify the Trustee in writing of any failure to take such action and of any failure by the Company to make any payment of the principal
(including the Redemption Price, the Fundamental Change Repurchase Price, if applicable) of, or accrued and unpaid interest on,
the Notes when the same shall become due and payable.

 

(c)           
Anything in this Section 4.04 to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining
a satisfaction and discharge of this Indenture, or for any other reason, pay, cause to be paid or deliver to the Trustee all sums
or amounts held in trust by the Company or any Paying Agent hereunder as required by this Section 4.04, such sums or amounts to
be held by the Trustee upon the trusts herein contained and upon such payment or delivery by the Company or any Paying Agent to
the Trustee, the Company or such Paying Agent shall be released from all further liability but only with respect to such sums or
amounts. Upon the occurrence of any event specified in Section 6.01(h) or Section 6.01(i), the Trustee shall automatically become
the Paying Agent.

 

(d)           
Subject to applicable escheatment laws, any money or property deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal (including the Redemption Price, the Fundamental Change Repurchase Price,
if applicable) of, accrued and unpaid interest on and the consideration due upon conversion of any Note and remaining unclaimed
for two years after such principal (including the Redemption Price, the Fundamental Change Repurchase Price, if applicable), interest
or consideration due upon conversion has become due and payable shall be paid to the Company on request of the Company contained
in an Officer’s Certificate, or (if then held by the Company) shall be discharged from such trust and the Trustee shall have
no further liability with respect to such funds; and the Holder of such Note shall thereafter, as an unsecured general creditor,
look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust
money and shares of Common Stock, and all liability of the Company as trustee thereof, shall thereupon cease.

 

Section 4.05. Existence. Subject
to Article 11, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect its
corporate existence.

 

Section 4.06. Rule 144A Information Requirement
and Annual Reports. (a) At any time the Company is not subject to Section 13 or 15(d) of the Exchange Act, the Company shall,
so long as any of the Notes or any shares of Common Stock issuable upon conversion thereof shall, at such time, constitute “restricted
securities” within the meaning of Rule 144(a)(3) under the Securities Act, promptly provide to the Trustee and will, upon
written request, provide to any Holder, beneficial owner or prospective purchaser of such Notes or any shares of Common Stock issuable
upon conversion of such Notes, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act to
facilitate the resale of such Notes or shares of Common Stock pursuant to Rule 144A.

 

    	 	28	 

     

    

 

(b)           
The Company shall file with the Trustee, within 15 days after the same are required to be filed with the Commission (giving
effect to any grace period provided by Rule 12b-25 (or any successor rule) under the Exchange Act), copies of any annual or quarterly
reports (on Form 10-K or Form 10-Q or any respective successive form) that the Company is required to file with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act (excluding any such information, documents or reports, or portions thereof,
subject to confidential treatment and any correspondence with the Commission). Any such document or report that the Company files
with the Commission via the Commission’s EDGAR system (or any successor thereto) shall be deemed to be filed with the Trustee
for purposes of this Section 4.06(b) at the time such documents are filed via the EDGAR system (or any successor thereto), it being
understood that the Trustee shall not be responsible for determining whether such filings have been made.

 

(c)           
Delivery of the reports and documents described in subsection (b) above to the Trustee is for informational purposes only,
and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable
from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on an Officer’s Certificate).

 

(d)           
If, at any time during the six-month period beginning on, and including, the date that is six months after the last date
of original issuance of the Notes, the Company fails to timely file any document or report that it is required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act, as applicable (after giving effect to all applicable grace periods
thereunder and other than reports on Form 8-K), or the Notes are not otherwise freely tradable pursuant to Rule 144 by Holders
other than the Company’s Affiliates or Holders that were the Company’s Affiliates at any time during the three months
immediately preceding (without restrictions pursuant to U.S. securities laws or the terms of this Indenture or the Notes), the
Company shall pay Additional Interest on the Notes. Such Additional Interest shall accrue on the Notes at the rate of 0.50% per
annum of the principal amount of the Notes outstanding for each day during such period for which the Company’s failure to
file has occurred and is continuing or the Notes are not otherwise freely tradable pursuant to Rule 144 by Holders other than the
Company’s Affiliates (or Holders that have been the Company’s Affiliates at any time during the three months immediately
preceding) without restrictions pursuant to U.S. securities laws or the terms of this Indenture or the Notes. As used in this Section
4.06(d), documents or reports that the Company is required to “file” with the Commission pursuant to Section 13 or
15(d) of the Exchange Act does not include documents or reports that the Company furnishes to the Commission pursuant to Section
13 or 15(d) of the Exchange Act. Further, as used in this Section 4.06(d), the phrase “restrictions pursuant to U.S. securities
laws or the terms of this Indenture of the Notes” shall not include, for the avoidance of doubt, the assignment of a restricted
CUSIP number or the existence of a restrictive notes legend on the Notes in compliance with this Indenture, in either case, during
the six-month period described in this Section 4.06(d).

 

(e)           
If, and for so long as, the restrictive legend on the Notes specified in Section 2.05(c) has not been removed (or deemed
removed pursuant to this Indenture), the Notes are assigned a restricted CUSIP number or the Notes are not otherwise freely tradable
pursuant to Rule 144 by Holders other than the Company’s Affiliates or Holders that were the Company’s Affiliates at
any time during the three months immediately preceding (without restrictions pursuant to U.S. securities laws or the terms of this
Indenture or the Notes) as of the 380th day after the last date of original issuance of the Notes, the Company shall pay Additional
Interest on the Notes at a rate equal to 0.50% per annum of the principal amount of Notes outstanding until the restrictive legend
on the Notes has been removed in accordance with Section 2.05(c), the Notes are assigned an unrestricted CUSIP number and the Notes
are freely tradable pursuant to Rule 144 by Holders other than the Company’s Affiliates (or Holders that were the Company’s
Affiliates at any time during the three months immediately preceding) (without restrictions pursuant to U.S. securities laws or
the terms of this Indenture or the Notes).

 

    	 	29	 

     

    

 

(f)           
Additional Interest will be payable in arrears on each Interest Payment Date following accrual in the same manner as regular
interest on the Notes.

 

(g)           
The Additional Interest that is payable in accordance with Section 4.06(d) or Section 4.06(e) shall be in addition to, and
not in lieu of, any Additional Interest that may be payable as a result of the Company’s election pursuant to Section 6.03.
Notwithstanding the foregoing, in no event shall Additional Interest accrue under the terms of this Indenture (aggregating any
Additional Interest payable pursuant to Section 4.06(d) or Section 4.06(e) with any Additional Interest payable pursuant to Section
6.03) at a rate in excess of 0.50% per annum, regardless of the number of events or circumstances giving rise to the requirement
to pay such Additional Interest.

 

(h)           
If Additional Interest is payable by the Company pursuant to Section 4.06(d) or Section 4.06(e), the Company shall deliver
to the Trustee an Officer’s Certificate to that effect stating (i) the amount of such Additional Interest that is payable
and (ii) the date on which such Additional Interest is payable. Unless and until a Responsible Officer of the Trustee receives
at the Corporate Trust Office such a certificate, the Trustee may assume without inquiry that no such Additional Interest is payable.
If the Company has paid Additional Interest directly to the Persons entitled to it, the Company shall deliver to the Trustee an
Officer’s Certificate setting forth the particulars of such payment.

 

Section 4.07. Stay, Extension and Usury
Laws. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law that would prohibit
or forgive the Company from paying all or any portion of the principal of or interest on the Notes as contemplated herein, wherever
enacted, now or at any time hereafter in force, or that may affect the covenants or the performance of this Indenture; and the
Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that
it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had been enacted.

 

Section 4.08. Compliance Certificate;
Statements as to Defaults. The Company shall deliver to the Trustee within 120 days after the end of each fiscal year of the
Company (beginning with the fiscal year ending on January 31, 2020) an Officer’s Certificate stating whether the signers
thereof have knowledge of any Default under the Indenture that occurred during such fiscal year and, if so, specifying each such
Default and the nature thereof.

 

    	 	30	 

     

    

 

In addition, the Company shall deliver to
the Trustee, within 30 days after obtaining knowledge of the occurrence of any Event of Default or Default, an Officer’s
Certificate setting forth the details of such Event of Default or Default, its status and the action that the Company is taking
or proposing to take in respect thereof; provided that the Company is not required to deliver such notice if such Event
of Default or Default has been cured.

 

Section 4.09. Further Instruments and
Acts. Upon request of the Trustee, the Company will execute and deliver such further instruments and do such further acts as
may be reasonably necessary or proper to carry out more effectively the purposes of this Indenture.

 

Article
5

Lists of Holders and Reports by the Company and the Trustee

 

Section 5.01. Lists of Holders. The
Company covenants and agrees that it will furnish or cause to be furnished to the Trustee, semi-annually, not more than 15 days
after each January 15 and July 15 in each year beginning with July 15, 2020, and at such other times as the Trustee may
request in writing, within 30 days after receipt by the Company of any such request (or such lesser time as the Trustee may reasonably
request in order to enable it to timely provide any notice to be provided by it hereunder), a list in such form as the Trustee
may reasonably require of the names and addresses of the Holders as of a date not more than 15 days (or such other date as the
Trustee may reasonably request in order to so provide any such notices) prior to the time such information is furnished, except
that no such list need be furnished so long as the Trustee is acting as Note Registrar.

 

Section 5.02. Preservation and Disclosure
of Lists. The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and
addresses of the Holders contained in the most recent list furnished to it as provided in Section 5.01 or maintained by the Trustee
in its capacity as Note Registrar, if so acting. The Trustee may destroy any list furnished to it as provided in Section 5.01 upon
receipt of a new list so furnished.

 

Article
6

Defaults and Remedies

 

Section 6.01. Events of Default.
Each of the following events shall be an “Event of Default” with respect to the Notes:

 

(a)           
default in any payment of interest on any Note when due and payable, and the default continues for a period of 30 days;

 

(b)           
default in the payment of principal of any Note when due and payable on the Maturity Date, upon Optional Redemption, upon
any required repurchase, upon declaration of acceleration or otherwise;

 

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(c)           
failure by the Company to comply with its obligation to convert the Notes in accordance with this Indenture upon exercise
of a Holder’s conversion right, and such failure continues for three (3) Business Days;

 

(d)           
failure by the Company to issue a Fundamental Change Company Notice in accordance with Section 15.02(c) or
notice of a specified corporate event in accordance with Section 14.01(b)(ii) or (iii), in each case when due, and such failure
continues for three (3) Business Days;

 

(e)           
failure by the Company to comply with its obligations under Article 11;

 

(f)            
failure by the Company for 60 days after written notice from the Trustee or the Holders of at least 25% in aggregate principal
amount of the Notes then outstanding has been received by the Company to comply with any of its other agreements contained in the
Notes or this Indenture;

 

(g)            default
by the Company or any Significant Subsidiary of the Company with respect to any mortgage, agreement or other instrument under
which there may be outstanding, or by which there may be secured or evidenced, any indebtedness for money borrowed in excess of
$50,000,000 (or its foreign currency equivalent) in the aggregate of the Company and/or any such Significant Subsidiary, whether
such indebtedness now exists or shall hereafter be created (i) resulting in such indebtedness becoming or being declared due and
payable prior to its stated maturity date or (ii) constituting a failure to pay the principal of any such indebtedness when due
and payable (after the expiration of all applicable grace periods) at its stated maturity, upon required repurchase, upon declaration
of acceleration or otherwise, and, in the case of clauses (i) and (ii), such acceleration shall not, after the expiration of any
applicable grace period, have been rescinded or annulled or such failure to pay or default shall not have been cured or waived,
or such indebtedness is not paid or discharged, as the case may be, within 30 days after written notice to the Company from the
Trustee or to the Company and the Trustee from Holders of at least 25% in aggregate principal amount of Notes then outstanding
in accordance with this Indenture;

 

(h)            the
Company or any Significant Subsidiary shall commence a voluntary case or other proceeding seeking liquidation, reorganization
or other relief with respect to the Company or any such Significant Subsidiary or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of the Company or any such Significant Subsidiary or any substantial part of its property, or shall consent to
any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding
commenced against it, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts
as they become due; or

 

(i)            
an involuntary case or other proceeding shall be commenced against the Company or any Significant Subsidiary seeking liquidation,
reorganization or other relief with respect to the Company or such Significant Subsidiary or its debts under any bankruptcy, insolvency
or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of the Company or such Significant Subsidiary or any substantial part of its property, and such involuntary case
or other proceeding shall remain undismissed and unstayed for a period of 60 consecutive days.

 

    	 	32	 

     

    

 

Section 6.02. Acceleration; Rescission
and Annulment. If one or more Events of Default shall have occurred and be continuing (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree
or order of any court or any order, rule or regulation of any administrative or governmental body), then, and in each and every
such case (other than an Event of Default specified in Section 6.01(h) or Section 6.01(i) with respect to the Company), unless
the principal of all of the Notes shall have already become due and payable, either the Trustee or the Holders of at least 25%
in aggregate principal amount of the Notes then outstanding determined in accordance with Section 8.04, by notice in writing to
the Company (and to the Trustee if given by Holders), may declare 100% of the principal of, and accrued and unpaid interest on,
all the Notes to be due and payable immediately, and upon any such declaration the same shall become and shall automatically be
immediately due and payable, anything contained in this Indenture or in the Notes to the contrary notwithstanding. If an Event
of Default specified in Section 6.01(h) or Section 6.01(i) with respect to the Company occurs and is continuing, 100% of the principal
of, and accrued and unpaid interest, if any, on, all Notes shall become and shall automatically be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder.

 

The immediately preceding paragraph, however,
is subject to the conditions that if, at any time after the principal of the Notes shall have been so declared due and payable,
and before any judgment or decree for the payment of the monies due shall have been obtained or entered as hereinafter provided,
and if (1) rescission would not conflict with any judgment or decree of a court of competent jurisdiction and (2) any and all existing
Events of Default under this Indenture, other than the nonpayment of the principal of and accrued and unpaid interest, if any,
on Notes that shall have become due solely by such acceleration, shall have been cured or waived pursuant to Section 6.09, then
and in every such case (except as provided in the immediately succeeding sentence) the Holders of a majority in aggregate principal
amount of the Notes then outstanding, by written notice to the Company and to the Trustee, may waive all Defaults or Events of
Default with respect to the Notes and rescind and annul such declaration and its consequences and such Default shall cease to exist,
and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such
waiver or rescission and annulment shall extend to or shall affect any subsequent Default or Event of Default, or shall impair
any right consequent thereon. Notwithstanding anything to the contrary herein, no such waiver or rescission and annulment shall
extend to or shall affect any Default or Event of Default resulting from (i) the nonpayment of the principal (including the Redemption
Price and the Fundamental Change Repurchase Price, if applicable) of, or accrued and unpaid interest on, any Notes, (ii) a failure
to repurchase any Notes when required or (iii) a failure to pay or deliver, as the case may be, the consideration due upon conversion
of the Notes.

 

    	 	33	 

     

    

 

Section 6.03. Additional Interest.
Notwithstanding anything in this Indenture or in the Notes to the contrary, to the extent the Company elects, the sole remedy for
an Event of Default relating to the Company’s failure to comply with its obligations as set forth in Section 4.06(b) shall,
for the first 360 calendar days after the occurrence of such an Event of Default, consist exclusively of the right to receive Additional
Interest on the Notes at a rate equal to (i) 0.25% per annum of the principal amount of the Notes outstanding for each day
during the first 180 calendar days of the 360-day period after the occurrence of such an Event of Default during which such Event
of Default is continuing (or, if earlier, the date on which such Event of Default is cured or waived as provided for in this Indenture)
and (ii) 0.50% per annum of the principal amount of the Notes outstanding for each day from, and including, the 181st calendar
day to, and including, the 360th calendar day after the occurrence of such an Event of Default during which such Event of Default
is continuing (or, if earlier, the date on which such Event of Default is cured or waived as provided for in this Indenture). Subject
to the last paragraph of this Section 6.03, Additional Interest payable pursuant to this Section 6.03 shall be in addition to,
not in lieu of, any Additional Interest payable pursuant to Section 4.06(d) or Section 4.06(e). If the Company so elects, such
Additional Interest shall be payable in the same manner and on the same dates as the stated interest payable on the Notes. On the
361st day after such Event of Default (if the Event of Default relating to the Company’s failure to comply with its obligations
as set forth in Section 4.06(b) is not cured or waived prior to such 361st day), the Notes shall be subject to acceleration
as provided in Section 6.02. The provisions of this paragraph will
not affect the rights of Holders in the event of the occurrence of any Event of Default other than the Company’s failure
to comply with its obligations as set forth in ‎‎Section 4.06(b). In the event the Company does not elect to pay Additional
Interest following an Event of Default in accordance with this Section 6.03 or the Company elected to make such payment but does
not pay the Additional Interest when due, the Notes shall be immediately subject to acceleration as provided in Section 6.02.

 

In order to elect to pay Additional Interest
as the sole remedy during the first 360 days after the occurrence of any Event of Default described in the immediately preceding
paragraph, the Company must notify all Holders of the Notes, the Trustee and the Paying Agent in writing of such election prior
to the beginning of such 360-day period. Upon the failure to timely give such notice, the Notes shall be immediately subject to
acceleration as provided in Section 6.02.

 

In no event shall Additional Interest accrue
under the terms of this Indenture (aggregating any Additional Interest payable pursuant to this Section 6.03 with any Additional
Interest payable pursuant to Section 4.06(d) or Section 4.06(e))
at a rate in excess of 0.50% per annum, regardless of the number of events or circumstances giving rise to the requirement to pay
such Additional Interest.

 

Section 6.04. Payments of Notes on Default;
Suit Therefor. If an Event of Default described in clause (a) or (b) of Section 6.01 shall have occurred and be continuing,
the Company shall, upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders of the Notes, the whole amount
then due and payable on the Notes for principal and interest, if any, with interest on any overdue principal and interest, if any,
at the rate borne by the Notes at such time, and, in addition thereto, such further amount as shall be sufficient to cover any
amounts due to the Trustee under Section 7.06. If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee,
in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and
unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor
upon the Notes and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the
Company or any other obligor upon the Notes, wherever situated.

 

    	 	34	 

     

    

 

In the event there shall be pending proceedings
for the bankruptcy or for the reorganization of the Company or any other obligor on the Notes under Title 11 of the United States
Code, or any other applicable law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator
or similar official shall have been appointed for or taken possession of the Company or such other obligor, the property of the
Company or such other obligor, or in the event of any other judicial proceedings relative to the Company or such other obligor
upon the Notes, or to the creditors or property of the Company or such other obligor, the Trustee, irrespective of whether the
principal of the Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether
the Trustee shall have made any demand pursuant to the provisions of this Section 6.04, shall be entitled and empowered, by intervention
in such proceedings or otherwise, to file and prove a claim or claims for the whole amount of principal and accrued and unpaid
interest, if any, in respect of the Notes, and, in case of any judicial proceedings, to file such proofs of claim and other papers
or documents and to take such other actions as it may deem necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of
the Holders allowed in such judicial proceedings relative to the Company or any other obligor on the Notes, its or their creditors,
or its or their property, and to collect and receive any monies or other property payable or deliverable on any such claims, and
to distribute the same after the deduction of any amounts due to the Trustee under Section 7.06; and any receiver, assignee or
trustee in bankruptcy or reorganization, liquidator, custodian or similar official is hereby authorized by each of the Holders
to make such payments to the Trustee, as administrative expenses, and, in the event that the Trustee shall consent to the making
of such payments directly to the Holders, to pay to the Trustee any amount due it for reasonable compensation, expenses, advances
and disbursements, including agents and counsel fees, and including any other amounts due to the Trustee under Section 7.06, incurred
by it up to the date of such distribution. To the extent that such payment of reasonable compensation, expenses, advances and disbursements
out of the estate in any such proceedings shall be denied for any reason, payment of the same shall be secured by a lien on, and
shall be paid out of, any and all distributions, dividends, monies, securities and other property that the Holders of the Notes
may be entitled to receive in such proceedings, whether in liquidation or under any plan of reorganization or arrangement or otherwise.

 

Nothing herein contained shall be deemed
to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting such Holder or the rights of any Holder thereof, or to authorize the Trustee to vote in respect
of the claim of any Holder in any such proceeding.

 

All rights of action and of asserting claims
under this Indenture, or under any of the Notes, may be enforced by the Trustee without the possession of any of the Notes, or
the production thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment
of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable
benefit of the Holders of the Notes.

 

    	 	35	 

     

    

 

In any proceedings brought by the Trustee
(and in any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party)
the Trustee shall be held to represent all the Holders of the Notes, and it shall not be necessary to make any Holders of the Notes
parties to any such proceedings.

 

In case the Trustee shall have proceeded
to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because of any waiver
pursuant to Section 6.09 or any rescission and annulment pursuant to Section 6.02 or for any other reason or shall have been determined
adversely to the Trustee, then and in every such case the Company, the Holders and the Trustee shall, subject to any determination
in such proceeding, be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers
of the Company, the Holders and the Trustee shall continue as though no such proceeding had been instituted.

 

Section 6.05. Application of Monies Collected
by Trustee. Any monies or property collected by the Trustee pursuant to this Article 6 with respect to the Notes shall be applied
in the following order, at the date or dates fixed by the Trustee for the distribution of such monies, upon presentation of the
several Notes, and stamping thereon the payment, if only partially paid, and upon surrender thereof, if fully paid:

 

First, to the payment of all amounts
due the Trustee in all of its capacities under Section 7.06;

 

Second, in case the principal of
the outstanding Notes shall not have become due and be unpaid, to the payment of interest on, and any cash due upon conversion
of, the Notes in default in the order of the date due of the payments of such interest and cash due upon conversion, as the case
may be, with interest (to the extent that such interest has been collected by the Trustee) upon such overdue payments at the rate
borne by the Notes at such time, such payments to be made ratably to the Persons entitled thereto;

 

Third, in case the principal of the
outstanding Notes shall have become due, by declaration or otherwise, and be unpaid to the payment of the whole amount (including,
if applicable, the payment of the Redemption Price, the Fundamental Change Repurchase Price and any cash due upon conversion) then
owing and unpaid upon the Notes for principal and interest, if any, with interest on the overdue principal and, to the extent that
such interest has been collected by the Trustee, upon overdue installments of interest at the rate borne by the Notes at such time,
and in case such monies shall be insufficient to pay in full the whole amounts so due and unpaid upon the Notes, then to the payment
of such principal (including, if applicable, the Redemption Price, the Fundamental Change Repurchase Price and any cash due upon
conversion) and interest without preference or priority of principal over interest, or of interest over principal or of any installment
of interest over any other installment of interest, or of any Note over any other Note, ratably to the aggregate of such principal
(including, if applicable, the Redemption Price, the Fundamental Change Repurchase Price and any cash due upon conversion) and
accrued and unpaid interest; and

 

    	 	36	 

     

    

 

Fourth, to the payment of the remainder,
if any, to the Company.

 

Section 6.06. Proceedings by Holders.
Except to enforce the right to receive payment of principal (including, if applicable, the Redemption Price and the Fundamental
Change Repurchase Price) or interest when due, or the right to receive payment or delivery of the consideration due upon conversion,
no Holder of any Note shall have any right by virtue of or by availing of any provision of this Indenture or the Notes to institute
any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture, or for the appointment of a
receiver, trustee, liquidator, custodian or other similar official, or for any other remedy hereunder, unless:

 

(a)           
such Holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof,
as herein provided;

 

(b)           
Holders of at least 25% in aggregate principal amount of the Notes then outstanding shall have made written request upon
the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder;

 

(c)           
such Holders shall have offered to the Trustee such security or indemnity reasonably satisfactory to it against any loss,
liability or expense to be incurred therein or thereby;

 

(d)           
the Trustee for 60 days after its receipt of such notice, request and offer of such security or indemnity, shall have neglected
or refused to institute any such action, suit or proceeding; and

 

(e)           
no direction that, in the opinion of the Trustee, is inconsistent with such written request shall have been given to the
Trustee by the Holders of a majority of the aggregate principal amount of the Notes then outstanding within such 60-day period
pursuant to Section 6.09,

 

it being understood and intended, and being
expressly covenanted by the taker and Holder of every Note with every other taker and Holder and the Trustee that no one or more
Holders shall have any right in any manner whatever by virtue of or by availing of any provision of this Indenture to affect, disturb
or prejudice the rights of any other Holder (it being understood that the Trustee shall not have an affirmative duty to ascertain
whether or not any such direction is unduly prejudicial to any other Holder), or to obtain or seek to obtain priority over or preference
to any other such Holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all Holders (except as otherwise provided herein). For the protection and enforcement of this Section
6.06, each and every Holder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

 

Notwithstanding any other provision of this
Indenture and any provision of any Note, the right of any Holder to receive payment or delivery, as the case may be, of (x) the
principal (including the Redemption Price, the Fundamental Change Repurchase Price, if applicable) of, (y) accrued and unpaid interest,
if any, on, and (z) the consideration due upon conversion of, such Note, on or after the respective due dates expressed or provided
for in such Note or in this Indenture, or to institute suit for the enforcement of any such payment or delivery, as the case may
be, on or after such respective dates against the Company shall not be impaired or affected without the consent of such Holder.

 

    	 	37	 

     

    

 

Section 6.07. Proceedings by Trustee.
In case of an Event of Default, the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this
Indenture by such appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either by suit in
equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other
legal or equitable right vested in the Trustee by this Indenture or by law.

 

Section 6.08. Remedies Cumulative and
Continuing. Except as provided in the last paragraph of Section 2.06, all powers and remedies given by this Article 6 to the
Trustee or to the Holders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any
other powers and remedies available to the Trustee or the Holders of the Notes, by judicial proceedings or otherwise, to enforce
the performance or observance of the covenants and agreements contained in this Indenture, and no delay or omission of the Trustee
or of any Holder of any of the Notes to exercise any right or power accruing upon any Default or Event of Default shall impair
any such right or power, or shall be construed to be a waiver of any such Default or Event of Default or any acquiescence therein;
and, subject to the provisions of Section 6.06, every power and remedy given by this Article 6 or by law to the Trustee or to the
Holders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Holders.

 

Section 6.09. Direction of Proceedings
and Waiver of Defaults by Majority of Holders. The Holders of a majority of the aggregate principal amount of the Notes at
the time outstanding determined in accordance with Section 8.04 shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee with respect to
the Notes; provided, however, that (a) such direction shall not be in conflict with any rule of law or with this
Indenture, and (b) the Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction.
The Trustee may refuse to follow any direction that it determines is unduly prejudicial to the rights of any other Holder or that
would involve the Trustee in personal liability (it being understood that the Trustee shall not have an affirmative duty to ascertain
whether or not any such direction is unduly prejudicial to any other Holder). The Holders of a majority in aggregate principal
amount of the Notes at the time outstanding determined in accordance with Section 8.04 may on behalf of the Holders of all of the
Notes waive any past Default or Event of Default hereunder and its consequences except (i) any continuing defaults relating to
the nonpayment of accrued and unpaid interest, if any, on, or the principal (including any Redemption Price, any Fundamental Change
Repurchase Price) of, the Notes when due that has not been cured pursuant to the provisions of Section 6.01, (ii) a failure by
the Company to pay or deliver, as the case may be, the consideration due upon conversion of the Notes or (iii) a default in respect
of a covenant or provision hereof which under Article 10 cannot be modified or amended without the consent of each Holder of an
outstanding Note affected. Upon any such waiver the Company, the Trustee and the Holders of the Notes shall be restored to their
former positions and rights hereunder; but no such waiver shall extend to any subsequent or other Default or Event of Default or
impair any right consequent thereon. Whenever any Default or Event of Default hereunder shall have been waived as permitted by
this Section 6.09, said Default or Event of Default shall for all purposes of the Notes and this Indenture be deemed to have been
cured and to be not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair
any right consequent thereon.

 

    	 	38	 

     

    

 

Section 6.10. Notice of Defaults.
The Trustee shall, within 90 days after the occurrence and continuance of a Default of which the Trustee has actual knowledge,
deliver to all Holders notice of all such Defaults, unless such Defaults shall have been cured or waived before the giving of such
notice; provided that, except in the case of a Default in the payment of the principal of (including the Redemption Price,
the Fundamental Change Repurchase Price, if applicable), or accrued and unpaid interest on, any of the Notes or a Default in the
payment or delivery of the consideration due upon conversion, the Trustee shall be protected in withholding such notice if and
so long as it in good faith determines that the withholding of such notice is in the interests of the Holders.

 

Section 6.11. Undertaking to Pay Costs.
All parties to this Indenture agree, and each Holder of any Note by its acceptance thereof shall be deemed to have agreed, that
any court may, in its discretion, require, in any suit for the enforcement of any right or remedy under this Indenture, or in any
suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit and that such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of
the claims or defenses made by such party litigant; provided that the provisions of this Section 6.11 (to the extent permitted
by law) shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding
in the aggregate more than 10% in principal amount of the Notes at the time outstanding determined in accordance with Section 8.04,
or to any suit instituted by any Holder for the enforcement of the payment of the principal of or accrued and unpaid interest,
if any, on any Note (including, but not limited to, the Redemption Price, the Fundamental Change Repurchase Price with respect
to the Notes being repurchased as provided in this Indenture) on or after the due date expressed or provided for in such Note or
to any suit for the enforcement of the right to convert any Note in accordance with the provisions of Article 14.

 

Article
7

Concerning the Trustee

 

Section 7.01. Duties and Responsibilities
of Trustee. The Trustee, prior to the occurrence of an Event of Default and after the curing or waiver of all Events of Default
that may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture.
In the event an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested
in it by this Indenture, and use the same degree of care and skill in its exercise, as a prudent person would exercise or use under
the circumstances in the conduct of such person’s own affairs; provided that 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 this Indenture at the request
or direction of any of the Holders unless such Holders have offered (and, if requested, provided) to the Trustee indemnity or security
reasonably satisfactory to it against any loss, liability or expense that might be incurred by it in compliance with such request
or direction.

 

    	 	39	 

     

    

 

No provision of this Indenture shall be
construed to relieve the Trustee from liability for its own grossly negligent action, its own grossly negligent failure to act
or its own willful misconduct, except that:

 

(a)           
prior to the occurrence of an Event of Default and after the curing or waiving of all Events of Default that may have occurred:

 

(i)           
the duties and obligations of the Trustee shall be determined solely by the express provisions of this Indenture, and the
Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture
and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

 

(ii)          
in the absence of bad faith or willful misconduct on the part of the Trustee, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but, in the case of any such certificates or opinions that by any
provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same
to determine whether or not they conform to the requirements of this Indenture (but need not confirm or investigate the accuracy
of any mathematical calculations or other facts stated therein);

 

(b)           
the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Officers of the
Trustee, unless it shall be proved that the Trustee was grossly negligent in ascertaining the pertinent facts;

 

(c)           
the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance
with the direction of the Holders of not less than a majority of the aggregate principal amount of the Notes at the time outstanding
determined as provided in Section 8.04 relating to the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture;

 

(d)           
whether or not therein provided, every provision of this Indenture relating to the conduct or affecting the liability of,
or affording protection to, the Trustee shall be subject to the provisions of this Section;

 

(e)           
the Trustee shall not be liable in respect of any payment (as to the correctness of amount, entitlement to receive or any
other matters relating to payment) or notice effected by the Company or any Paying Agent or any records maintained by any co-Note
Registrar with respect to the Notes;

 

    	 	40	 

     

    

 

(f)           
if any party fails to deliver a notice relating to an event the fact of which, pursuant to this Indenture, requires notice
to be sent to the Trustee, the Trustee may conclusively rely on its failure to receive such notice as reason to act as if no such
event occurred, unless a Responsible Officer of the Trustee had actual knowledge of such event;

 

(g)           
in the absence of written investment direction from the Company, all cash received by the Trustee shall be placed in a non-interest
bearing trust account, and in no event shall the Trustee be liable for the selection of investments or for investment losses incurred
thereon or for losses incurred as a result of the liquidation of any such investment prior to its maturity date or the failure
of the party directing such investments prior to its maturity date or the failure of the party directing such investment to provide
timely written investment direction, and the Trustee shall have no obligation to invest or reinvest any amounts held hereunder
in the absence of such written investment direction from the Company;

 

(h)           
in the event that the Trustee is also acting as Custodian, Note Registrar, Paying Agent, Conversion Agent, Bid Solicitation
Agent or transfer agent hereunder, the rights and protections afforded to the Trustee pursuant to this Article 7 shall also be
afforded to such Custodian, Note Registrar, Paying Agent, Conversion Agent, Bid Solicitation Agent or transfer agent; and

 

(i)           
under no circumstances shall the Trustee be liable in its individual capacity for the obligations evidenced by the Notes.

 

None of the provisions contained in this
Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance
of any of its duties or in the exercise of any of its rights or powers.

 

Section 7.02. Reliance on Documents,
Opinions, Etc. Except as otherwise provided in Section 7.01:

 

(a)           
the Trustee may conclusively rely and shall be fully protected in acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, bond, note, coupon or other paper or document (whether in its original or facsimile
form) believed by it in good faith to be genuine and to have been signed or presented by the proper party or parties;

 

(b)           
any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by an Officer’s
Certificate (unless other evidence in respect thereof be herein specifically prescribed); and any Board Resolution may be evidenced
to the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the Company;

 

(c)           
the Trustee may consult with counsel of its selection and require an Opinion of Counsel and any written or verbal advice
of such counsel or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or
omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel;

 

    	 	41	 

     

    

 

(d)           
the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit,
and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records
and premises of the Company, personally or by agent or attorney at the expense of the Company and shall incur no liability of any
kind by reason of such inquiry or investigation;

 

(e)           
the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through
agents, custodians, nominees or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part
of any agent, custodian, nominee or attorney appointed by it with due care hereunder;

 

(f)           
the permissive rights of the Trustee enumerated herein shall not be construed as duties;

 

(g)           
the Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder;
and

 

(h)           
the Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture.

 

In no event shall the Trustee be liable
for any consequential, punitive, special or indirect loss or damage of any kind whatsoever (including but not limited to lost profits),
even if the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. The Trustee
shall not be charged with knowledge of any Default or Event of Default with respect to the Notes, unless either (1) a Responsible
Officer shall have actual knowledge of such Default or Event of Default or (2) written notice of such Default or Event of Default
shall have been given to the Trustee by the Company or by any Holder of the Notes at the Corporate Trust Office and such notice
references the Notes and/or this Indenture.

 

Section 7.03. No Responsibility for Recitals,
Etc. The recitals contained herein and in the Notes (except in the Trustee’s certificate of authentication) shall be
taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same. The Trustee
makes no representations as to the validity or sufficiency of this Indenture or of the Notes. The Trustee shall not be accountable
for the use or application by the Company of any Notes or the proceeds of any Notes authenticated and delivered by the Trustee
in conformity with the provisions of this Indenture or any money paid to the Company or upon the Company’s direction under
any provision of the Indenture.

 

Section 7.04. Trustee, Paying Agents,
Conversion Agents, Bid Solicitation Agent or Note Registrar May Own Notes. The Trustee, any Paying Agent, any Conversion Agent,
Bid Solicitation Agent (if other than the Company or any Affiliate thereof) or Note Registrar, in its individual or any other capacity,
may become the owner or pledgee of Notes with the same rights it would have if it were not the Trustee, Paying Agent, Conversion
Agent, Bid Solicitation Agent or Note Registrar.

 

    	 	42	 

     

    

 

Section 7.05. Monies and Shares of Common
Stock to Be Held in Trust. All monies and any shares of Common Stock received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were received. Money and shares of Common Stock held by the Trustee
in trust hereunder need not be segregated from other funds or property except to the extent required by law. The Trustee shall
be under no liability for interest on any money or shares of Common Stock received by it hereunder except as may be agreed from
time to time by the Company and the Trustee.

 

Section 7.06. Compensation and Expenses
of Trustee. The Company covenants and agrees to pay to the Trustee, in any capacity under this Indenture, from time to time,
and the Trustee shall receive such compensation for all services rendered by it hereunder in any capacity (which shall not be limited
by any provision of law in regard to the compensation of a trustee of an express trust) as mutually agreed to in writing between
the Trustee and the Company, and the Company will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements
and advances reasonably incurred or made by the Trustee in accordance with any of the provisions of this Indenture in any capacity
thereunder (including the reasonable compensation and the expenses and disbursements of its agents and counsel and of all Persons
not regularly in its employ) except any such expense, disbursement or advance as shall have been caused by its gross negligence
or willful misconduct as determined by a final, non-appealable decision of a court of competent jurisdiction. The Company also
covenants to indemnify the Trustee in any capacity under this Indenture and any other document or transaction entered into in connection
herewith and its officers, directors, employees and agents and any authenticating agent for, and to hold them harmless against,
any loss, claim (whether asserted by the Company, a Holder or any Person), damage, liability or expense incurred without gross
negligence or willful misconduct on the part of the Trustee, its officers, directors, agents or employees, or such agent or authenticating
agent, as the case may be, as determined by a final, non-appealable decision of a court of competent jurisdiction, and arising
out of or in connection with the acceptance or administration of this Indenture or in any other capacity hereunder, including the
costs and expenses of defending themselves against any claim of liability in the premises or the enforcement of this Section 7.06.
The obligations of the Company under this Section 7.06 to compensate or indemnify the Trustee and to pay or reimburse the Trustee
for expenses, disbursements and advances shall be secured by a senior lien to which the Notes are hereby made subordinate on all
money or property held or collected by the Trustee, except, subject to the effect of Section 6.05, funds held in trust herewith
for the benefit of the Holders of particular Notes, and, for the avoidance of doubt, such lien shall not be extended in a manner
that would conflict with the Company’s obligations to its other creditors. The Trustee’s right to receive payment of
any amounts due under this Section 7.06 shall not be subordinate to any other liability or indebtedness of the Company. The obligation
of the Company under this Section 7.06 shall survive the satisfaction and discharge of this Indenture and the earlier resignation
or removal of the Trustee. The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably
withheld. The indemnification provided in this Section 7.06 shall extend to the officers, directors, agents and employees of the
Trustee.

 

    	 	43	 

     

    

 

Without prejudice to any other rights available
to the Trustee under applicable law, when the Trustee and its agents and any authenticating agent incur expenses or render services
after an Event of Default specified in Section 6.01(h) or Section 6.01(i)
occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any bankruptcy,
insolvency or similar laws.

 

Section 7.07. Officer’s Certificate
as Evidence. Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture
the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of gross
negligence and willful misconduct on the part of the Trustee, be deemed to be conclusively proved and established by an Officer’s
Certificate delivered to the Trustee, and such Officer’s Certificate, in the absence of gross negligence or willful misconduct
on the part of the Trustee, shall be full warrant to the Trustee for any action taken or omitted by it under the provisions of
this Indenture upon the faith thereof.

 

Section 7.08. Eligibility of Trustee.
There shall at all times be a Trustee hereunder which shall be a Person that is eligible pursuant to the Trust Indenture Act (as
if, for this purpose, the Trust Indenture Act were applicable hereto) to act as such and has a combined capital and surplus of
at least $50,000,000. If such Person publishes reports of condition at least annually, pursuant to law or to the requirements of
any supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such Person
shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately
in the manner and with the effect hereinafter specified in this Article.

 

Section 7.09. Resignation or Removal
of Trustee. (a) The Trustee may at any time resign by giving written notice of such resignation to the Company and by delivering
notice thereof to the Holders. Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee
by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered
to the resigning Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have accepted
appointment within 45 days after the giving of such notice of resignation to the Holders, the resigning Trustee may, upon ten Business
Days’ notice to the Company and the Holders and at the expense of the Company, petition any court of competent jurisdiction
for the appointment of a successor trustee, or any Holder who has been a bona fide holder of a Note or Notes for at least six months
(or since the date of this Indenture) may, subject to the provisions of Section 6.11, on behalf of himself or herself and all others
similarly situated, petition any such court for the appointment of a successor trustee. Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, appoint a successor trustee.

 

(b)          
In case at any time any of the following shall occur:

 

    	 	44	 

     

    

 

 

(i)           
the Trustee shall cease to be eligible in accordance with the provisions of Section 7.08 and shall fail to resign after
written request therefor by the Company or by any such Holder, or

 

(ii)           
the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee
or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation,

 

then, in either case, the Company may by a Board Resolution
remove the Trustee and appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors,
one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, subject to
the provisions of Section 6.11, any Holder who has been a bona fide holder of a Note or Notes for at least six months (or since
the date of this Indenture) may, on behalf of himself or herself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor trustee. Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

 

(c)           
The Holders of a majority in aggregate principal amount of the Notes at the time outstanding, as determined in accordance
with Section 8.04, may at any time remove the Trustee and nominate a successor trustee that shall be deemed appointed as successor
trustee unless within ten days after notice to the Company of such nomination the Company objects thereto, in which case the Trustee
so removed or any Holder, upon the terms and conditions and otherwise as in Section 7.09(a) provided, may petition any court of
competent jurisdiction for an appointment of a successor trustee.

 

(d)           
Any resignation or removal of the Trustee and appointment of a successor trustee pursuant to any of the provisions of this
Section 7.09 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 7.10.

 

Section 7.10. Acceptance by Successor
Trustee. Any successor trustee appointed as provided in Section 7.09 shall execute, acknowledge and deliver to the Company
and to its predecessor trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of
the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, duties and obligations of its predecessor hereunder, with like effect as if originally named
as Trustee herein; but, nevertheless, on the written request of the Company or of the successor trustee, the trustee ceasing to
act shall, upon payment of any amounts then due it pursuant to the provisions of Section 7.06, execute and deliver an instrument
transferring to such successor trustee all the rights and powers of the trustee so ceasing to act. Upon request of any such successor
trustee, the Company shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to
such successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless, retain a senior claim to which
the Notes are hereby made subordinate on all money or property held or collected by such trustee as such, except for funds held
in trust for the benefit of Holders of particular Notes, to secure any amounts then due it pursuant to the provisions of Section
7.06.

 

    	 	45	 

     

    

 

 

No successor trustee shall accept appointment
as provided in this Section 7.10 unless at the time of such acceptance such successor trustee shall be eligible under the provisions
of Section 7.08.

 

Upon acceptance of appointment by a successor
trustee as provided in this Section 7.10, each of the Company and the successor trustee, at the written direction and at the expense
of the Company shall deliver or cause to be delivered notice of the succession of such trustee hereunder to the Holders. If the
Company fails to deliver such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee
shall cause such notice to be delivered at the expense of the Company.

 

Section 7.11. Succession by Merger, Etc.
Any corporation or other entity into which the Trustee may be merged or converted or with which it may be consolidated, or any
corporation or other entity resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any
corporation or other entity succeeding to all or substantially all of the corporate trust business of the Trustee (including the
administration of this Indenture), shall be the successor to the Trustee hereunder without the execution or filing of any paper
or any further act on the part of any of the parties hereto; provided that in the case of any corporation or other entity
succeeding to all or substantially all of the corporate trust business of the Trustee such corporation or other entity shall be
eligible under the provisions of Section 7.08.

 

In case at the time such successor to the
Trustee shall succeed to the trusts created by this Indenture, any of the Notes shall have been authenticated but not delivered,
any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee or authenticating agent
appointed by such predecessor trustee, and deliver such Notes so authenticated; and in case at that time any of the Notes shall
not have been authenticated, any successor to the Trustee or an authenticating agent appointed by such successor trustee may authenticate
such Notes either in the name of any predecessor trustee hereunder or in the name of the successor trustee; and in all such cases
such certificates shall have the full force which it is anywhere in the Notes or in this Indenture provided that the certificate
of the Trustee shall have; provided, however, that the right to adopt the certificate of authentication of any predecessor
trustee or to authenticate Notes in the name of any predecessor trustee shall apply only to its successor or successors by merger,
conversion or consolidation.

 

Section 7.12. Trustee’s Application
for Instructions from the Company. Any application by the Trustee for written instructions from the Company (other than with
regard to any action proposed to be taken or omitted to be taken by the Trustee that affects the rights of the Holders of the Notes
under this Indenture) may, at the option of the Trustee, set forth in writing any action proposed to be taken or omitted by the
Trustee under this Indenture and the date on and/or after which such action shall be taken or such omission shall be effective.
The Trustee shall not be liable to the Company for any action taken by, or omission of, the Trustee in accordance with a proposal
included in such application on or after the date specified in such application (which date shall not be less than three Business
Days after the date any officer that the Company has indicated to the Trustee should receive such application actually receives
such application, unless any such officer shall have consented in writing to any earlier date), unless, prior to taking any such
action (or the effective date in the case of any omission), the Trustee shall have received written instructions in accordance
with this Indenture in response to such application specifying the action to be taken or omitted.

 

    	 	46	 

     

    

 

Article
8

Concerning the Holders

 

Section 8.01. Action by Holders.
Whenever in this Indenture it is provided that the Holders of a specified percentage of the aggregate principal amount of the Notes
may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of
any other action), the fact that at the time of taking any such action, the Holders of such specified percentage have joined therein
may be evidenced (a) by any instrument or any number of instruments of similar tenor executed by Holders in person or by agent
or proxy appointed in writing, or (b) by the record of the Holders voting in favor thereof at any meeting of Holders duly called
and held in accordance with the provisions of Article 9, or (c) by a combination of such instrument or instruments and any such
record of such a meeting of Holders. Whenever the Company or the Trustee solicits the taking of any action by the Holders of the
Notes, the Company or the Trustee may fix, but shall not be required to, in advance of such solicitation, a date as the record
date for determining Holders entitled to take such action. The record date if one is selected shall be not more than fifteen days
prior to the date of commencement of solicitation of such action.

 

Section 8.02. Proof of Execution by Holders.
Subject to the provisions of Section 7.01, Section 7.02 and Section
9.05, proof of the execution of any instrument by a Holder or its agent or proxy shall be sufficient if made in accordance
with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the
Trustee. The holding of Notes shall be proved by the Note Register or by a certificate of the Note Registrar. The record of any
Holders’ meeting shall be proved in the manner provided in Section 9.06.

 

Section 8.03. Who Are Deemed Absolute
Owners. The Company, the Trustee, any authenticating agent, any Paying Agent, any Conversion Agent and any Note Registrar may
deem the Person in whose name a Note shall be registered upon the Note Register to be, and may treat it as, the absolute owner
of such Note (whether or not such Note shall be overdue and notwithstanding any notation of ownership or other writing thereon
made by any Person other than the Company or any Note Registrar) for the purpose of receiving payment of or on account of the principal
(including any Redemption Price and any Fundamental Change Repurchase Price) of and (subject to Section 2.03) accrued and unpaid
interest on such Note, for conversion of such Note and for all other purposes under this Indenture; and neither the Company nor
the Trustee nor any Paying Agent nor any Conversion Agent nor any Note Registrar shall be affected by any notice to the contrary.
The sole registered holder of a Global Note shall be the Depositary or its nominee. All such payments or deliveries so made to
any Holder for the time being, or upon its order, shall be valid, and, to the extent of the sums or shares of Common Stock so paid
or delivered, effectual to satisfy and discharge the liability for monies payable or shares deliverable upon any such Note. Notwithstanding
anything to the contrary in this Indenture or the Notes following an Event of Default, any owner of a beneficial interest in a
Global Note may directly enforce against the Company, without the consent, solicitation, proxy, authorization or any other action
of the Depositary or any other Person, such holder’s right to exchange such beneficial interest for a Note in certificated
form in accordance with the provisions of this Indenture.

 

    	 	47	 

     

    

 

Section 8.04. Company-Owned Notes Disregarded.
In determining whether the Holders of the requisite aggregate principal amount of Notes have concurred in any direction, consent,
waiver or other action under this Indenture, Notes that are owned by the Company, by any Subsidiary thereof or by any Person directly
or indirectly controlling or controlled by or under direct or indirect common control with the Company or any Subsidiary thereof
shall be disregarded and deemed not to be outstanding for the purpose of any such determination; provided that for the purposes
of determining whether the Trustee shall be protected in relying on any such direction, consent, waiver or other action only Notes
that a Responsible Officer actually knows are so owned shall be so disregarded. Notes so owned that have been pledged in good faith
may be regarded as outstanding for the purposes of this Section 8.04 if the pledgee shall establish to the satisfaction of the
Trustee the pledgee’s right to so act with respect to such Notes and that the pledgee is not the Company, a Subsidiary thereof
or a Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or
a Subsidiary thereof. In the case of a dispute as to such right, any decision or indecision by the Trustee taken upon the advice
of counsel shall be full protection to the Trustee. Upon request of the Trustee, the Company shall furnish to the Trustee promptly
an Officer’s Certificate listing and identifying all Notes, if any, known by the Company to be owned or held by or for the
account of any of the above described Persons; and, subject to Section 7.01, the Trustee shall be entitled to accept such Officer’s
Certificate as conclusive evidence of the facts therein set forth and of the fact that all Notes not listed therein are outstanding
for the purpose of any such determination.

 

Section 8.05. Revocation of Consents;
Future Holders Bound. At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 8.01, of the
taking of any action by the Holders of the percentage of the aggregate principal amount of the Notes specified in this Indenture
in connection with such action, any Holder of a Note that is shown by the evidence to be included in the Notes the Holders of which
have consented to such action may, by filing written notice with the Trustee at its Corporate Trust Office and upon proof of holding
as provided in Section 8.02, revoke such action so far as concerns such Note. Except as aforesaid, any such action taken by the
Holder of any Note shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Note and of
any Notes issued in exchange or substitution therefor or upon registration of transfer thereof, irrespective of whether any notation
in regard thereto is made upon such Note or any Note issued in exchange or substitution therefor or upon registration of transfer
thereof.

 

Article
9

Holders’ Meetings

 

Section 9.01. Purpose of Meetings.
A meeting of Holders may be called at any time and from time to time pursuant to the provisions of this Article 9 for any of the
following purposes:

 

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(a)           
to give any notice to the Company or to the Trustee or to give any directions to the Trustee permitted under this Indenture,
or to consent to the waiving of any Default or Event of Default hereunder (in each case, as permitted under this Indenture) and
its consequences, or to take any other action authorized to be taken by Holders pursuant to any of the provisions of Article 6;

 

(b)           
to remove the Trustee and nominate a successor trustee pursuant to the provisions of Article 7;

 

(c)           
to consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions of Section 10.02;
or

 

(d)           
to take any other action authorized to be taken by or on behalf of the Holders of any specified aggregate principal amount
of the Notes under any other provision of this Indenture or under applicable law.

 

Section 9.02. Call of Meetings by Trustee.
The Trustee may at any time call a meeting of Holders to take any action specified in Section 9.01, to be held at such time and
at such place as the Trustee shall determine. Notice of every meeting of the Holders, setting forth the time and the place of such
meeting and in general terms the action proposed to be taken at such meeting and the establishment of any record date pursuant
to Section 8.01, shall be delivered to Holders of such Notes. Such notice shall also be delivered to the Company. Such notices
shall be delivered not less than 20 nor more than 90 days prior to the date fixed for the meeting.

 

Any meeting of Holders shall be valid without
notice if the Holders of all Notes then outstanding are present in person or by proxy or if notice is waived before or after the
meeting by the Holders of all Notes then outstanding, and if the Company and the Trustee are either present by duly authorized
representatives or have, before or after the meeting, waived notice.

 

Section 9.03. Call of Meetings by Company
or Holders. In case at any time the Company, pursuant to a Board Resolution, or the Holders of at least 10% of the aggregate
principal amount of the Notes then outstanding, shall have requested the Trustee to call a meeting of Holders, by written request
setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have delivered the
notice of such meeting within 20 days after receipt of such request, then the Company or such Holders may determine the time and
the place for such meeting and may call such meeting to take any action authorized in Section 9.01, by delivering notice thereof
as provided in Section 9.02.

 

Section 9.04. Qualifications for Voting.
To be entitled to vote at any meeting of Holders a Person shall (a) be a Holder of one or more Notes on the record date pertaining
to such meeting or (b) be a Person appointed by an instrument in writing as proxy by a Holder of one or more Notes on the record
date pertaining to such meeting. The only Persons who shall be entitled to be present or to speak at any meeting of Holders shall
be the Persons entitled to vote at such meeting and their counsel and any representatives of the Trustee and its counsel and any
representatives of the Company and its counsel.

 

    	 	49	 

     

    

 

Section 9.05. Regulations. Notwithstanding
any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting
of Holders, in regard to proof of the holding of Notes and of the appointment of proxies, and in regard to the appointment and
duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote,
and such other matters concerning the conduct of the meeting as it shall think fit.

 

The Trustee shall, by an instrument in writing,
appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Holders as provided
in Section 9.03, in which case the Company or the Holders calling the meeting, as the case may be, shall in like manner appoint
a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Holders of
a majority in aggregate principal amount of the outstanding Notes represented at the meeting and entitled to vote at the meeting.

 

Subject to the provisions of Section 8.04,
at any meeting of Holders each Holder or proxyholder shall be entitled to one vote for each $1,000 principal amount of Notes held
or represented by him or her; provided, however, that no vote shall be cast or counted at any meeting in respect
of any Note challenged as not outstanding and ruled by the chairman of the meeting to be not outstanding. The chairman of the meeting
shall have no right to vote other than by virtue of Notes held by it or instruments in writing as aforesaid duly designating it
as the proxy to vote on behalf of other Holders. Any meeting of Holders duly called pursuant to the provisions of Section 9.02
or Section 9.03 may be adjourned from time to time by the Holders of a majority of the aggregate principal amount of Notes represented
at the meeting, whether or not constituting a quorum, and the meeting may be held as so adjourned without further notice.

 

Section 9.06. Voting. The vote upon
any resolution submitted to any meeting of Holders shall be by written ballot on which shall be subscribed the signatures of the
Holders or of their representatives by proxy and the outstanding aggregate principal amount of the Notes held or represented by
them. The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting
for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate
of all votes cast at the meeting. A record in duplicate of the proceedings of each meeting of Holders shall be prepared by the
secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote
by ballot taken thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice
of the meeting and showing that said notice was delivered as provided in Section 9.02. The record shall show the aggregate principal
amount of the Notes voting in favor of or against any resolution. The record shall be signed and verified by the affidavits of
the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered to the Company and the other to
the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.

 

Any record so signed and verified shall
be conclusive evidence of the matters therein stated.

 

    	 	50	 

     

    

 

Section 9.07. No Delay of Rights by Meeting.
Nothing contained in this Article 9 shall be deemed or construed to authorize or permit, by reason of any call of a meeting of
Holders or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise of any
right or rights conferred upon or reserved to the Trustee or to the Holders under any of the provisions of this Indenture or of
the Notes. Nothing contained in this Article 9 shall be deemed or construed to limit any Holder’s actions pursuant to the
applicable procedures of the Depositary so long as the Notes are Global Notes.

 

Article
10

Supplemental Indentures

 

Section 10.01. Supplemental Indentures
Without Consent of Holders. Without the consent of any Holder, the Company and the Trustee, at the Company’s expense,
may from time to time and at any time enter into an indenture or indentures supplemental hereto for one or more of the following
purposes:

 

(a)           
to cure any ambiguity, omission, defect or inconsistency;

 

(b)           
to provide for the assumption by a Successor Company of the obligations of the Company under this Indenture pursuant to
Article 11;

 

(c)           
to add guarantees with respect to the Notes;

 

(d)           
to secure the Notes;

 

(e)           
to add to the covenants or Events of Default of the Company for the benefit of the Holders or surrender any right or power
conferred upon the Company under this Indenture;

 

(f)           
to make any change that does not adversely affect the rights of any Holder, as determined by the Company in good faith;

 

(g)           
to provide for the acceptance of appointment by a successor trustee pursuant to Section 7.09 or to facilitate the administration
of the trusts by more than one trustee;

 

(h)           
in connection with any Merger Event, to provide that the Notes are convertible into Reference Property, subject to the provisions
of Section 14.02, and make such related changes to the terms of the Notes to the extent expressly required by Section 14.07;

 

(i)           
to comply with the rules of the Depositary in a manner that does not adversely affect the rights of any Holder;

 

(j)           
to conform the provisions of this Indenture or the Notes to the “Description of Notes” section of the Offering
Memorandum; or

 

(k)           
to irrevocably elect a Settlement Method or a Specified Dollar Amount, or eliminate the Company’s right to elect a
Settlement Method; provided, however, that no such settlement election or elimination will affect any Settlement Method theretofore
elected (or deemed to be elected) with respect to any Note pursuant to Article 14.

 

    	 	51	 

     

    

 

Upon the written request of the Company,
the Trustee is hereby authorized to, and shall join with the Company in the execution of any such supplemental indenture, to make
any further appropriate agreements and stipulations that may be therein contained, except that the Trustee shall not be obligated
to, but may in its discretion, enter into any supplemental indenture that affects the Trustee’s own rights, duties, liabilities
or immunities under this Indenture or otherwise.

 

Any supplemental indenture authorized by
the provisions of this Section 10.01 may be executed by the Company and the Trustee without the consent of the Holders of any of
the Notes at the time outstanding, notwithstanding any of the provisions of Section 10.02.

 

Section 10.02. Supplemental Indentures
with Consent of Holders. With the consent (evidenced as provided in Article 8) of the Holders of at least a majority of the
aggregate principal amount of the Notes then outstanding (determined in accordance with Article 8 and including, without limitation,
consents obtained in connection with a repurchase of, or tender or exchange offer for, the Notes), the Company and the Trustee,
at the Company’s expense, may from time to time and at any time enter into an indenture or indentures supplemental hereto
for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture, the
Notes or any supplemental indenture or of modifying in any manner the rights of the Holders; provided, however, that,
without the consent of each Holder of an outstanding Note affected, no such supplemental indenture shall:

 

(a)           
reduce the principal amount of Notes whose Holders must consent to an amendment;

 

(b)           
reduce the rate of or extend the stated time for payment of interest on any Note;

 

(c)           
reduce the principal of or extend the Maturity Date of any Note;

 

(d)           
make any change that adversely affects the conversion rights of any Notes other than as required by this Indenture;

 

(e)           
reduce the Redemption Price or the Fundamental Change Repurchase Price of any Note or amend or modify in any manner adverse
to the Holders the Company’s obligation to make such payments, whether through an amendment or waiver of provisions in the
covenants, definitions or otherwise;

 

(f)           
make any Note payable in a currency, or at a place of payment, other than that stated in the Note;

 

(g)           
change the ranking of the Notes;

 

    	 	52	 

     

    

 

(h)           
impair the right of any Holder to receive payment of principal and interest on such Holder’s Notes on or after the
due dates therefor or to institute suit for the enforcement of any payment on or with respect to such Holder’s Note; or

 

(i)           
make any change in this Article 10 that requires each Holder’s consent or in the waiver provisions in Section 6.02
or Section 6.09.

 

Upon the written request of the Company,
and upon the filing with the Trustee of evidence of the consent of Holders as aforesaid and subject to Section 10.05, the Trustee
shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s
own rights, duties, liabilities or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion,
but shall not be obligated to, enter into such supplemental indenture.

 

Holders do not need under this Section 10.02
to approve the particular form of any proposed supplemental indenture. It shall be sufficient if such Holders approve the substance
thereof. After any such supplemental indenture becomes effective, the Company shall deliver to the Holders (with a copy to the
Trustee) a notice briefly describing such supplemental indenture. However, the failure to give such notice to all the Holders,
or any defect in the notice, will not impair or affect the validity of the supplemental indenture.

 

Section 10.03. Effect of Supplemental
Indentures. Upon the execution of any supplemental indenture pursuant to the provisions of this Article 10, this Indenture
shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitation of rights, obligations,
duties and immunities under this Indenture of the Trustee, the Company and the Holders shall thereafter be determined, exercised
and enforced hereunder subject in all respects to such modifications and amendments and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

 

Section 10.04. Notation on Notes.
Notes authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article
10 may, at the Company’s request and expense, bear a notation in form approved by the Trustee as to any matter provided for
in such supplemental indenture. If the Company or the Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Trustee and the Company, to any modification of this Indenture contained in any such supplemental indenture may, at the
Company’s expense, be prepared and executed by the Company, authenticated by the Trustee (or an authenticating agent duly
appointed by the Trustee pursuant to Section 17.10) and delivered in exchange for the Notes then outstanding, upon surrender of
such Notes then outstanding.

 

Section 10.05. Evidence of Compliance
of Supplemental Indenture to Be Furnished Trustee. In addition to the documents required by Section 17.05, the Trustee shall
receive an Officer’s Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed
pursuant hereto complies with the requirements of this Article 10 and is permitted or authorized by this Indenture and that the
supplemental indenture constitutes the legal, valid and binding obligation of the Company enforceable in accordance with its terms.

 

    	 	53	 

     

    

 

Article
11

Consolidation, Merger, Sale, Conveyance and Lease

 

Section 11.01. Company May Consolidate,
Etc. on Certain Terms. Subject to the provisions of Section 11.02, the Company shall not consolidate with, merge with or into,
or sell, convey, transfer or lease all or substantially all of the consolidated properties and assets of the Company and its Subsidiaries,
taken as a whole, to another Person (other than one or more of its Wholly-Owned Subsidiaries), unless:

 

(a)           
the resulting, surviving or transferee Person (the “Successor Company”), if not the Company, shall be
a corporation organized and existing under the laws of the United States of America, any State thereof or the District of Columbia,
and the Successor Company (if not the Company) shall expressly assume by supplemental indenture all of the obligations of the Company
under the Notes and this Indenture; and

 

(b)           
immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing
under this Indenture.

 

Section 11.02. Successor Corporation
to Be Substituted. In case of any such consolidation, merger, sale, conveyance, transfer or lease and upon the assumption by
the Successor Company, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee,
of the due and punctual payment of the principal of and accrued and unpaid interest on all of the Notes, the due and punctual delivery
or payment, as the case may be, of any consideration due upon conversion of the Notes and the due and punctual performance of all
of the covenants and conditions of this Indenture to be performed by the Company, such Successor Company (if not the Company) shall
succeed to and, except in the case of a lease of all or substantially all of the Company’s properties and assets, shall be
substituted for the Company, with the same effect as if it had been named herein as the party of the first part, and may thereafter
exercise every right and power of the Company under this Indenture. Such Successor Company thereupon may cause to be signed, and
may issue either in its own name or in the name of the Company any or all of the Notes issuable hereunder which theretofore shall
not have been signed by the Company and delivered to the Trustee; and, upon the order of such Successor Company instead of the
Company and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and
shall deliver, or cause to be authenticated and delivered, any Notes that previously shall have been signed and delivered by the
Officers of the Company to the Trustee for authentication, and any Notes that such Successor Company thereafter shall cause to
be signed and delivered to the Trustee for that purpose. All the Notes so issued shall in all respects have the same legal rank
and benefit under this Indenture as the Notes theretofore or thereafter issued in accordance with the terms of this Indenture as
though all of such Notes had been issued at the date of the execution hereof. In the event of any such consolidation, merger, sale,
conveyance or transfer (but not in the case of a lease), upon compliance with this Article 11 the Person named as the “Company”
in the first paragraph of this Indenture (or any successor that shall thereafter have become such in the manner prescribed in this
Article 11) may be dissolved, wound up and liquidated at any time
thereafter and, except in the case of a lease, such Person shall be released from its liabilities as obligor and maker of the Notes
and from its obligations under this Indenture and the Notes.

 

    	 	54	 

     

    

 

In case of any such consolidation, merger,
sale, conveyance, transfer or lease, such changes in phraseology and form (but not in substance) may be made in the Notes thereafter
to be issued as may be appropriate.

 

Article
12

Immunity of Incorporators, Stockholders, Officers and Directors

 

Section 12.01. Indenture and Notes Solely
Corporate Obligations. No recourse for the payment of the principal of or accrued and unpaid interest on any Note, nor for
any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of
the Company in this Indenture or in any supplemental indenture or in any Note, nor because of the creation of any indebtedness
represented thereby, shall be had against any incorporator, stockholder, employee, agent, Officer or director or Subsidiary, as
such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty
or otherwise; it being expressly understood that all such liability is hereby expressly waived and released as a condition of,
and as a consideration for, the execution of this Indenture and the issue of the Notes.

 

Article
13

Intentionally Omitted

 

Article
14

Conversion of Notes

 

Section 14.01. Conversion Privilege.
(a) Subject to and upon compliance with the provisions of this Article 14, each Holder of a Note shall have the right, at such
Holder’s option, to convert all or any portion (if the portion to be converted is $1,000 principal amount or an integral
multiple thereof) of such Note (i) subject to satisfaction of the conditions described in Section 14.01(b), at any time prior to
the close of business on the Business Day immediately preceding October 15, 2025 under the circumstances and during the periods
set forth in Section 14.01(b), and (ii) regardless of the conditions described in Section 14.01(b), on or after October 15, 2025
and prior to the close of business on the Scheduled Trading Day immediately preceding the Maturity Date, in each case, at an initial
conversion rate of 4.7349 shares of Common Stock (subject to adjustment as provided in this
Article 14, the “Conversion Rate”) per $1,000 principal amount of Notes (subject to, and in accordance
with, the settlement provisions of Section 14.02, the “Conversion Obligation”).

 

    	 	55	 

     

    

 

(b)            (i)
Prior to the close of business on the Business Day immediately preceding October 15, 2025, a Holder may surrender all or any
portion of its Notes for conversion at any time during the five Business Day period immediately after any five
consecutive Trading Day period (the “Measurement Period”) in which the Trading Price per $1,000 principal
amount of Notes, as determined following a request by a Holder of Notes in accordance with this Section 14.01(b)(i), for each
Trading Day of the Measurement Period was less than 98% of the product of the Last Reported Sale Price of the Common Stock on
each such Trading Day and the Conversion Rate on each such Trading Day. The Trading Prices shall be solicited by the Bid
Solicitation Agent and determined by the Company pursuant to this Section 14.01(b)(i) and the definition of Trading Price set
forth in this Indenture. The Company shall provide written notice to the Bid Solicitation Agent (if other than the Company)
of the three independent nationally recognized securities dealers selected by the Company pursuant to the definition of
Trading Price, along with appropriate contact information for each. The Bid Solicitation Agent (if other than the Company)
shall have no obligation to solicit the Trading Price per $1,000 principal amount of Notes unless the Company has requested
such solicitation in writing, and the Company shall have no obligation to make such request (or, if the Company is acting as
Bid Solicitation Agent, the Company shall have no obligation to solicit and/or determine the Trading Price per $1,000
principal amount of Notes) unless a Holder of at least $5,000,000 aggregate principal amount of Notes provides the Company
with reasonable evidence that the Trading Price per $1,000 principal amount of Notes would be less than 98% of the product of
the Last Reported Sale Price of the Common Stock and the Conversion Rate, at which time the Company shall instruct the Bid
Solicitation Agent (if other than the Company) to solicit, or if the Company is acting as Bid Solicitation Agent, the Company
shall solicit such bids beginning on the next Trading Day and on each successive Trading Day until the Trading Price per
$1,000 principal amount of Notes is greater than or equal to 98% of the product of the Last Reported Sale Price of the Common
Stock and the Conversion Rate. The Company will determine the Trading Price in accordance with the bids solicited by the Bid
Solicitation Agent. If (x) the Company is not acting as Bid Solicitation Agent, and the Company does not, when the Company is
required to, instruct the Bid Solicitation Agent in writing to obtain the Trading Price per $1,000 principal amount of
Notes when obligated as provided in this Section 14.01(b)(i), or if the Company so instructs the Bid Solicitation Agent to
obtain bids and the Bid Solicitation Agent fails to make such solicitation, or (y) the Company is acting as Bid Solicitation
Agent and the Company fails to make such solicitation when obligated as provided in this Section 14.01(b)(i) then, in either
case, the Trading Price per $1,000 principal amount of Notes shall be deemed to be less than 98% of the product of the Last
Reported Sale Price of the Common Stock and the Conversion Rate on each Trading Day of such failure. If the Trading Price
condition has been met on any Trading Day, the Company will so notify the Holders, the Trustee and the Conversion Agent (if
other than the Trustee) in writing on or within one Business Day of such Trading Day. Any such determination will be
conclusive absent manifest error. If, at any time after the Trading Price condition set forth above has been met, the Trading
Price per $1,000 principal amount of Notes is greater than or equal to 98% of the product of the Last Reported Sale Price of
the Common Stock and the Conversion Rate for such Trading Day, the Company shall so notify the Holders of the Notes, the
Trustee and the Conversion Agent (if other than the Trustee) in writing that the Trading Price condition is no longer met and
thereafter neither the Company nor the Bid Solicitation Agent (if other than the Company) shall be required to solicit bids
again until another qualifying request is made as provided above.

 

    	 	56	 

     

    

 

(ii)           
If, prior to the close of business on the Business Day immediately preceding October 15, 2025, the Company elects to:

 

(A)            
issue to all or substantially all holders of shares of the Common Stock any rights, options or warrants (other than in connection
with a stockholder rights plan so long as such rights have not separated from the shares of the Common Stock) entitling them, for
a period of not more than 60 calendar days after the announcement date of such issuance, to subscribe for or purchase shares of
the Common Stock at a price per share that is less than the average of the Last Reported Sale Prices of the Common Stock for the
10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of such
issuance; or

 

(B)            
distribute to all or substantially all holders of shares of the Common Stock the Company’s assets, securities or rights
to purchase securities of the Company, which distribution has a per share value, as reasonably determined by the Company, exceeding
10% of the Last Reported Sale Price of the Common Stock on the Trading Day preceding the date of announcement for such distribution,

 

then, in either case, the Company shall notify all Holders of
the Notes (with a copy to the Trustee and the Conversion Agent (if other than the Trustee)) at least 45 Scheduled Trading Days
prior to the Ex-Dividend Date for such issuance or distribution (or, if later in the case of any such separation of rights issued
pursuant to a stockholder rights plan, as soon as reasonably practicable after the Company becomes aware that such separation or
triggering event has occurred or will occur). Once the Company has given such notice, a Holder may surrender all or any portion
of its Notes for conversion at any time until the earlier of (1) the close of business on the Business Day immediately preceding
the Ex-Dividend Date for such issuance or distribution and (2) the Company’s announcement that such issuance or distribution
will not take place, in each case, even if the Notes are not otherwise convertible at such time; provided that Holders of
the Notes may not convert their Notes pursuant to this Section 14.01(b)(ii) if they participate, at the same time and upon the
same terms as holders of the Common Stock and solely as a result of holding the Notes, in any of the transactions described in
clause (A) or (B) of this Section 14.01(b)(ii)without having to convert their Notes as if they held a number of shares of the Common
Stock equal to the Conversion Rate, multiplied by the principal amount (expressed in thousands) of Notes held by such Holder.

 

(iii)            
If (i) a transaction or event that constitutes (x) a Fundamental Change or (y) a Make-Whole Fundamental Change
occurs prior to the close of business on the Business Day immediately preceding October 15, 2025, regardless of whether a Holder
has the right to require the Company to repurchase the Notes pursuant to Section 15.02, or (ii) the Company is a party to
a Merger Event (as defined below) (other than a Merger Event that is solely for the purpose of changing the Company’s jurisdiction
of organization that (x) does not constitute a Fundamental Change or a Make-Whole Fundamental Change and (y) results in a reclassification,
conversion or exchange of outstanding shares of the Common Stock solely into shares of common stock of the surviving entity and
such common stock becomes Reference Property for the Notes) that occurs prior to the close of business on the Business Day immediately
preceding October 15, 2025 (each such Fundamental Change, Make-Whole Fundamental Change or Merger Event, a “Corporate
Event”), all or any portion of a Holder’s Notes may be surrendered for conversion at any time after the effective
date for such Corporate Event until the earlier of (x) 35 Scheduled Trading Days after the effective date of such Corporate Event,
or if such Corporate Event also constitutes a Fundamental Change, until the close of business on the Business Day immediately preceding
the related Fundamental Change Repurchase Date and (y) the Scheduled Trading Day immediately preceding the Maturity Date. The Company
shall notify Holders, the Trustee and the Conversion Agent (if other than the Trustee) in writing no later than the effective date
of such Corporate Event.

 

    	 	57	 

     

    

 

(iv)            
Prior to the close of business on the Business Day immediately preceding October 15, 2025, a Holder may surrender all or
any portion of its Notes for conversion at any time during any fiscal quarter commencing after the fiscal quarter ending on April
30, 2020 (and only during such fiscal quarter), if the Last Reported Sale Price of the Common Stock for at least 20 Trading Days
(whether or not consecutive) during the period of 30 consecutive Trading Days ending on, and including, the last Trading Day of
the immediately preceding fiscal quarter is greater than or equal to 130% of the Conversion Price on each applicable Trading Day.
Neither the Trustee nor the Conversion Agent (if other than the trustee) shall have any duty to determine or verify the determination
of whether the sale price condition in this Section 14.01(b)(iv) has been met.

 

(v)            
If the Company calls any Note for Optional Redemption pursuant to Article 16 prior to the close of business on the Business
Day immediately preceding October 15, 2025, then the Holder of the Note called for Optional Redemption may surrender such Note
(or a portion thereof) for conversion at any time prior to the close of business on the Scheduled Trading Day prior to the Redemption
Date, on account of the Company’s delivery of a Redemption Notice, even if the Notes are not otherwise convertible at such
time. After that time, the right to convert such Note on account of the Company’s delivery of the Redemption Notice shall
expire, unless the Company defaults in the payment of the Redemption Price, in which case a Holder of the Note called for Optional
Redemption may convert such Note (or any portion thereof) until the Redemption Price has been paid or duly provided for. If the
Company elects to redeem less than all of the Notes in accordance with
Article 16 and a Holder (or any owner of a beneficial interest in any Global Note) is reasonably not able to determine,
before the close of business on the 44th Scheduled Trading Day immediately before the relevant Redemption Date, whether
such Note or beneficial interest, as applicable, is to be redeemed pursuant to such redemption, then such Holder or owner, as applicable,
will be entitled to convert such Note or beneficial interest, as applicable, at any time before the close of business on the Scheduled
Trading Day prior to such Redemption Date, unless the Company defaults in the payment of the Redemption Price, in which case such
Holder or owner, as applicable, will be entitled to convert such Note or beneficial interest, as applicable, until the Redemption
Price has been paid or duly provided for, and each such conversion will be deemed to be of a Note called for redemption.

 

    	 	58	 

     

    

 

Section 14.02. Conversion Procedure;
Settlement Upon Conversion.

 

(a)            
Subject to this Section 14.02, Section 14.03(b) and Section 14.07(a), upon conversion of any Note, the Company shall satisfy
its Conversion Obligation by paying or delivering, as the case may be, to the converting Holder, in respect of each $1,000 principal
amount of Notes being converted, cash (“Cash Settlement”), shares of Common Stock, together with cash, if applicable,
in lieu of delivering any fractional share of Common Stock in accordance with subsection (j) of this Section 14.02 (“Physical
Settlement”) or a combination of cash and shares of Common Stock, together with cash, if applicable, in lieu of delivering
any fractional share of Common Stock in accordance with subsection (j) of this Section 14.02 (“Combination Settlement”),
at its election, as set forth in this Section 14.02.

 

(i)            
All conversions for which the relevant Conversion Dates occurs (x) on or after October 15, 2025 shall be settled using
the same Settlement Method or (y) during a Redemption Period shall be settled using the same Settlement Method.

 

(ii)            
Except for any conversions for which the relevant Conversion Date occurs during a Redemption Period and any conversions
for which the relevant Conversion Date occurs on or after October 15, 2025, the Company shall use the same Settlement Method for
all conversions occurring on the same Conversion Date, but the Company shall not have any obligation to use the same Settlement
Method with respect to conversions that occur on different Conversion Dates.

 

(iii)            
If, in respect of any Conversion Date (or in the case of any conversions occurring (x) during a Redemption Period or (y)
on or after October 15, 2025), the Company elects to deliver a notice (the “Settlement Notice”) of the relevant
Settlement Method in respect of such Conversion Date (or such period, as the case may be), the Company shall deliver such Settlement
Notice to converting Holders, the Trustee and the Conversion Agent (if other than the Trustee) no later than the close of business
on the Scheduled Trading Day immediately following the relevant Conversion Date (or, in the case of any conversions occurring (x)
during a Redemption Period, in such Redemption Notice, or (y) on or after October 15, 2025, no later than the close of business
on Scheduled Trading Day immediately preceding October 15, 2025). If the Company does not timely elect a Settlement Method prior
to the deadline set forth in the immediately preceding sentence, the Company shall no longer have the right to elect Cash Settlement
or Physical Settlement for such Conversion Date or during such period and the Company shall be deemed to have elected Combination
Settlement in respect of its Conversion Obligation, and the Specified Dollar Amount per $1,000 principal amount of Notes shall
be equal to $1,000. Such Settlement Notice shall specify the relevant Settlement Method and in the case of an election of Combination
Settlement, the relevant Settlement Notice shall indicate the Specified Dollar Amount per $1,000 principal amount of Notes. If
the Company timely delivers a Settlement Notice electing Combination Settlement in respect of its Conversion Obligation but does
not indicate a Specified Dollar Amount per $1,000 principal amount of Notes in such Settlement Notice, the Specified Dollar Amount
per $1,000 principal amount of Notes shall be deemed to be $1,000.

 

    	 	59	 

     

    

 

By notice to Holders, the Company
may, prior to October 15, 2025, at its option, irrevocably elect to satisfy its Conversion Obligation with respect to the Notes
through Combination Settlement with a Specified Dollar Amount per $1,000 principal amount of Notes of $1,000 for all Conversion
Dates occurring subsequent to delivery of such notice.

 

(iv)            
The cash, shares of Common Stock or combination of cash and shares of Common Stock in respect of any conversion of Notes
(the “Settlement Amount”) shall be computed as follows:

 

(A)            
if the Company elects to satisfy its Conversion Obligation in respect of such conversion by Physical Settlement, the Company
shall deliver to the converting Holder in respect of each $1,000 principal amount of Notes being converted a number of shares of
Common Stock equal to the Conversion Rate in effect on the Conversion Date;

 

(B)            
if the Company elects to satisfy its Conversion Obligation in respect of such conversion by Cash Settlement, the Company
shall pay to the converting Holder in respect of each $1,000 principal amount of Notes being converted cash in an amount equal
to the sum of the Daily Conversion Values for each of the 40 consecutive Trading Days during the related Observation Period; and

 

(C)            
if the Company elects (or is deemed to have elected) to satisfy its Conversion Obligation in respect of such conversion
by Combination Settlement, the Company shall pay or deliver, as the case may be, to the converting Holder in respect of each $1,000
principal amount of Notes being converted, a Settlement Amount equal to the sum of the Daily Settlement Amounts for each of the
40 consecutive Trading Days during the related Observation Period.

 

(v)            
The Daily Settlement Amounts (if applicable) and the Daily Conversion Values (if applicable) shall be determined by the
Company promptly following the last day of the Observation Period. Promptly after such determination of the Daily Settlement Amounts
or the Daily Conversion Values, as the case may be, and the amount of cash payable in lieu of delivering any fractional share of
Common Stock, the Company shall notify the Trustee and the Conversion Agent (if other than the Trustee) of the Daily Settlement
Amounts or the Daily Conversion Values, as the case may be, and the amount of cash payable in lieu of delivering fractional shares
of Common Stock. The Trustee and the Conversion Agent (if other than the Trustee) shall have no responsibility for any such determination.

 

(b)            Subject
to Section 14.02(e), before any Holder of a Note shall be
entitled to convert a Note as set forth above, such Holder shall (i) in the case of a Global Note, comply with the
applicable procedures of the Depositary in effect at that time and, if required, pay funds equal to interest payable on the
next Interest Payment Date to which such Holder is not entitled as set forth in Section 14.02(h) and (ii) in the case of a
Physical Note (1)
complete, manually sign and deliver an irrevocable notice to the Conversion Agent as set forth in the Form of Notice of Conversion
(or a facsimile, PDF or other electronic transmission thereof) (a notice pursuant to the applicable procedures of the Depositary
or a notice as set forth in the Form of Notice of Conversion, a “Notice of Conversion”) at the office of the
Conversion Agent and state in writing therein the principal amount of Notes to be converted and the name or names (with addresses)
in which such Holder wishes the certificate or certificates for any shares of Common Stock to be delivered upon settlement of the
Conversion Obligation to be registered, (2) surrender such Notes, duly endorsed to the Company or in blank (and accompanied by
appropriate endorsement and transfer documents), at the office of the Conversion Agent, (3) if required, furnish appropriate endorsements
and transfer documents and (4) if required, pay funds equal to interest payable on the next Interest Payment Date to which such
Holder is not entitled as set forth in Section 14.02(h). The Trustee (and, if different, the Conversion Agent) shall notify the
Company of any conversion pursuant to this Article 14 on the Conversion Date for such conversion. No Notes may be surrendered for
conversion by a Holder thereof if such Holder has also delivered a Fundamental Change Repurchase Notice to the Company in respect
of such Notes and has not validly withdrawn such Fundamental Change Repurchase Notice in accordance with Section 15.03.

 

    	 	60	 

     

    

 

If more than one Note shall be surrendered
for conversion at one time by the same Holder, the Conversion Obligation with respect to such Notes shall be computed on the basis
of the aggregate principal amount of the Notes (or specified portions thereof to the extent permitted thereby) so surrendered.

 

(c)           
A Note shall be deemed to have been converted immediately prior to the close of business on the date (the “Conversion
Date”) that the Holder has complied with the requirements set forth in subsection (b) above. Except as set forth in ‎Section
14.03(b) and Section 14.07(a), the Company shall pay or deliver, as the case may be, the consideration due in respect of the Conversion
Obligation on the second Business Day immediately following the relevant Conversion Date, if the Company elects Physical Settlement,
or on the second Business Day immediately following the last Trading Day of the relevant Observation Period, in the case of any
other Settlement Method. If any shares of Common Stock are due to a converting Holder, the Company shall issue or cause to be issued,
and deliver to the Conversion Agent or to such Holder, or such Holder’s nominee or nominees, certificates or a book-entry
transfer through the Depositary for the full number of shares of Common Stock to which such Holder shall be entitled in satisfaction
of the Company’s Conversion Obligation.

 

(d)           
In case any Note shall be surrendered for partial conversion, the Company shall execute and the Trustee shall authenticate
and deliver to or upon the written order of the Holder of the Note so surrendered a new Note or Notes in authorized denominations
in an aggregate principal amount equal to the unconverted portion of the surrendered Note, without payment of any service charge
by the converting Holder but, if required by the Company or Trustee, with payment of a sum sufficient to cover any documentary,
stamp or similar issue or transfer tax or similar governmental charge required by law or that may be imposed in connection therewith
as a result of the name of the Holder of the new Notes issued upon such conversion being different from the name of the Holder
of the old Notes surrendered for such conversion.

 

(e)           
If a Holder submits a Note for conversion, the Company shall pay any documentary, stamp or similar issue or transfer tax
due on the issue of any shares of Common Stock upon conversion, unless the tax is due because the Holder requests such shares to
be issued in a name other than the Holder’s name, in which case the Holder shall pay that tax. The Conversion Agent may refuse
to deliver the certificates representing the shares of Common Stock being issued in a name other than the Holder’s name until
the Trustee receives a sum sufficient to pay any tax that is due by such Holder in accordance with the immediately preceding sentence.

 

    	 	61	 

     

    

 

(f)           
Except as provided in Section 14.04, no adjustment shall be made for dividends on any shares of Common Stock issued upon
the conversion of any Note as provided in this Article 14.

 

(g)           
Upon the conversion of an interest in a Global Note, the Trustee, or the Custodian at the direction of the Trustee, shall
make a notation on such Global Note as to the reduction in the principal amount represented thereby. The Company shall notify the
Trustee in writing of any conversion of Notes effected through any Conversion Agent other than the Trustee.

 

(h)           
Upon conversion, a Holder shall not receive any separate cash payment for accrued and unpaid interest, if any, except as
set forth below. The Company’s settlement of the full Conversion Obligation shall be deemed to satisfy in full its obligation
to pay the principal amount of the Note and accrued and unpaid interest, if any, to, but excluding, the relevant Conversion Date.
As a result, accrued and unpaid interest, if any, to, but excluding, the relevant Conversion Date shall be deemed to be paid in
full rather than cancelled, extinguished or forfeited. Upon a conversion of Notes into a combination of cash and shares of Common
Stock, accrued and unpaid interest will be deemed to be paid first out of the cash paid upon such conversion. Notwithstanding the
foregoing, if Notes are converted after the close of business on a Regular Record Date and prior to the open of business on the
corresponding Interest Payment Date, Holders of such Notes as of the close of business on such Regular Record Date will receive
the full amount of interest payable on such Notes on the corresponding Interest Payment Date notwithstanding the conversion. Notes
surrendered for conversion during the period from the close of business on any Regular Record Date to the open of business on the
immediately following Interest Payment Date must be accompanied by funds equal to the amount of interest payable on the Notes so
converted; provided that no such payment shall be required (1) for conversions following the Regular Record Date immediately
preceding the Maturity Date; (2) if the Company has specified a Fundamental Change Repurchase Date that is after a Regular Record
Date and on or prior to the Business Day immediately succeeding the corresponding Interest Payment Date; (3) if the Company has
specified a Redemption Date that is after a Regular Record Date and on or prior to the Business Day immediately succeeding the
corresponding Interest Payment Date; or (4) to the extent of any Defaulted Amounts, if any Defaulted Amounts exists at the
time of conversion with respect to such Note. Therefore, for the avoidance of doubt, all Holders of record on the Regular Record
Date immediately preceding the Maturity Date, ay Fundamental Change Repurchase Date or Redemption Date, in each case, as described
above, shall receive the full interest payment due on the Maturity Date or other applicable Interest Payment Date in cash regardless
of whether their Notes have been converted and/or repurchased, as applicable, following such Regular Record Date.

 

(i)           
The Person in whose name the certificate for any shares of Common Stock delivered upon conversion is registered shall be
treated as a stockholder of record as of the close of business on the relevant Conversion Date (if the Company elects to satisfy
the related Conversion Obligation by Physical Settlement) or the last Trading Day of the relevant Observation Period (if the Company
elects to satisfy the related Conversion Obligation by Combination Settlement), as the case may be. Upon a conversion of Notes,
such Person shall no longer be a Holder of such Notes surrendered for conversion.

 

    	 	62	 

     

    

 

(j)           
The Company shall not issue any fractional share of Common Stock upon conversion of the Notes and shall instead pay cash
in lieu of delivering any fractional share of Common Stock issuable upon conversion based on the Daily VWAP on the relevant Conversion
Date (in the case of Physical Settlement) or based on the Daily VWAP on the last Trading Day of the relevant Observation Period
(in the case of Combination Settlement). For each Note surrendered for conversion, if the Company has elected (or is deemed to
have elected) Combination Settlement, the full number of shares that shall be issued upon conversion thereof shall be computed
on the basis of the aggregate Daily Settlement Amounts for the relevant Observation Period and any fractional shares remaining
after such computation shall be paid in cash.

 

Section 14.03. Increased Conversion Rate
Applicable to Certain Notes Surrendered in Connection with Make-Whole Fundamental Changes or During a Redemption Period. (a)
If (x) the Effective Date of a Make-Whole Fundamental Change occurs prior to the Maturity Date and a Holder elects to convert
its Notes in connection with such Make-Whole Fundamental Change or (y) the Company issues a Redemption Notice pursuant to Section
16.02 and a Holder of a Note called (or deemed called) for redemption elects to convert its Notes during the related Redemption
Period, the Company shall, under the circumstances described below, increase the Conversion Rate for the Notes so surrendered for
conversion by a number of additional shares of Common Stock (the “Additional Shares”), as described below. A
conversion of Notes shall be deemed for these purposes to be “in connection with” such Make-Whole Fundamental Change
if the relevant Conversion Date occurs during the period from, and including, the Effective Date of the Make-Whole Fundamental
Change up to, and including, the Business Day immediately prior to the related Fundamental Change Repurchase Date (or, in the case
of a Make-Whole Fundamental Change that would have been a Fundamental Change but for the proviso in clause (b) of the definition
thereof, the 35th Trading Day immediately following the Effective Date of such Make-Whole Fundamental Change) (such period, the
 “Make-Whole Fundamental Change Period”). For the avoidance of doubt, the Company shall increase the Conversion
Rate for the Notes during the related Redemption Period only with respect to conversion of Notes called (or deemed called) for
redemption, and not for Notes not called for redemption. If the Company elects to redeem less than all of the Notes, a Holder of
the Notes not called for redemption will not be entitled to an increased Conversion Rate for conversions of such Notes (on account
of the Redemption Notice) from, and including, the Redemption Notice Date until the close of business on the Scheduled Trading
Day immediately preceding the Redemption Date, except in the limited circumstances set forth in Section 14.01(b)(v).

 

(b)           
Upon surrender of Notes for conversion during a Make-Whole Fundamental Change Period or during a Redemption Period, the
Company shall, at its option, satisfy the related Conversion Obligation by Physical Settlement, Cash Settlement or Combination
Settlement in accordance with Section 14.02 based on the Conversion Rate as increased to reflect the Additional Shares pursuant
to the table below; provided, however, that, if the Reference Property in any Make-Whole Fundamental Change described
in clause (b) of the definition of Fundamental Change is composed entirely of cash, for any conversion of Notes following the Effective
Date of such Make-Whole Fundamental Change, the Conversion Obligation shall be calculated based solely on the Stock Price for the
transaction and shall be deemed to be an amount of cash per $1,000 principal amount of converted Notes equal to the Conversion
Rate (including any increase to reflect the Additional Shares), multiplied by such Stock Price. In such event, the Conversion
Obligation shall be determined and paid to Holders in cash on the second Business Day following the Conversion Date. The Company
shall notify the Holders, the Trustee and the Conversion Agent (if other than the Trustee) in writing of the Effective Date of
any Make-Whole Fundamental Change no later than five Business Days after such Effective Date.

 

    	 	63	 

     

    

 

(c)           
The number of Additional Shares, if any, by which the Conversion Rate shall be increased for conversions during the Make-Whole
Fundamental Change Period or during the Redemption Period shall be determined by reference to the table below, based on the date
on which the Make-Whole Fundamental Change occurs or becomes effective (the “Effective Date”) or the Redemption
Notice Date, as the case may be, and the price (the “Stock Price”) paid (or deemed to be paid) per share of
the Common Stock in the Make-Whole Fundamental Change or on the Redemption Notice Date, as applicable, as set forth in this Section
14.03. If the holders of the Common Stock receive in exchange for their Common Stock only cash in a Make-Whole Fundamental Change
described in clause (b) of the definition of Fundamental Change, the Stock Price shall be the cash amount paid per share. In the
case of any other Make-Whole Fundamental Change or in the case of any Optional Redemption, the Stock Price shall be the average
of the Last Reported Sale Prices of the Common Stock over the five consecutive Trading Day period ending on, and including, the
Trading Day immediately preceding the Effective Date of the Make-Whole Fundamental Change or the Redemption Notice Date, as the
case may be. In the event that a Conversion Date occurs during both a Redemption Period and a Make-Whole Fundamental Change Period,
a Holder of any such Notes to be converted will be entitled to a single increase to the Conversion Rate with respect to the first
to occur of the applicable Redemption Notice Date or Effective Date, and the later event shall be deemed not to have occurred for
purposes of this Section 14.03.

 

(d)           
The Stock Prices set forth in the column headings of the table below shall be adjusted as of any date on which the Conversion
Rate of the Notes is otherwise adjusted. The adjusted Stock Prices shall equal the Stock Prices applicable immediately prior to
such adjustment, multiplied by a fraction, the numerator of which is the Conversion Rate immediately prior to such adjustment
giving rise to the Stock Price adjustment and the denominator of which is the Conversion Rate as so adjusted. The number of Additional
Shares set forth in the table below shall be adjusted in the same manner and at the same time as the Conversion Rate as set forth
in Section 14.04.

 

    	 	64	 

     

    

 

 

 

(e)           
The following table sets forth the number of Additional Shares by which the Conversion Rate shall be increased per $1,000
principal amount of Notes pursuant to this Section 14.03 for each Stock Price and Effective Date or Redemption Notice Date, as
applicable, set forth below:

 

	 	 	Stock Price	 		  	 
	Effective Date/
 Redemption Notice Date	 	$148.2101	 	 	$170.00	 	 	$190.00	 	 	$211.1977	 	 	$220.00	 	 	$240.00	 	 	$274.5570	 	 	$320.00	 	 	$400.00	 	 	$500.00	 	 	$650.00	 	 	$900.00	 
	January 14, 2020	 	 	2.0122	 	 	 	1.5764	 	 	 	1.2810	 	 	 	1.0427	 	 	 	0.9608	 	 	 	0.8035	 	 	 	0.6014	 	 	 	0.4230	 	 	 	0.2407	 	 	 	0.1257	 	 	 	0.0471	 	 	 	0.0000	 
	January 15, 2021	 	 	2.0122	 	 	 	1.5764	 	 	 	1.2708	 	 	 	1.0208	 	 	 	0.9355	 	 	 	0.7727	 	 	 	0.5664	 	 	 	0.3880	 	 	 	0.2112	 	 	 	0.1047	 	 	 	0.0366	 	 	 	0.0000	 
	January 15, 2022	 	 	2.0122	 	 	 	1.5668	 	 	 	1.2363	 	 	 	0.9754	 	 	 	0.8871	 	 	 	0.7203	 	 	 	0.5127	 	 	 	0.3380	 	 	 	0.1722	 	 	 	0.0787	 	 	 	0.0243	 	 	 	0.0000	 
	January 15, 2023	 	 	2.0122	 	 	 	1.5272	 	 	 	1.1770	 	 	 	0.9048	 	 	 	0.8140	 	 	 	0.6445	 	 	 	0.4390	 	 	 	0.2731	 	 	 	0.1255	 	 	 	0.0500	 	 	 	0.0118	 	 	 	0.0000	 
	January 15, 2024	 	 	2.0122	 	 	 	1.4532	 	 	 	1.0782	 	 	 	0.7939	 	 	 	0.7012	 	 	 	0.5318	 	 	 	0.3356	 	 	 	0.1884	 	 	 	0.0720	 	 	 	0.0220	 	 	 	0.0024	 	 	 	0.0000	 
	January 15, 2025	 	 	2.0122	 	 	 	1.3206	 	 	 	0.9045	 	 	 	0.6044	 	 	 	0.5112	 	 	 	0.3502	 	 	 	0.1842	 	 	 	0.0813	 	 	 	0.0199	 	 	 	0.0025	 	 	 	0.0000	 	 	 	0.0000	 
	January 15, 2026	 	 	2.0122	 	 	 	1.1475	 	 	 	0.5283	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

 

The exact Stock Prices and Effective Dates
or Redemption Notice Dates may not be set forth in the table above, in which case:

 

(i)           
if the Stock Price is between two Stock Prices in the table above or the Effective Date or the Redemption Notice Date, as
the case may be, is between two Effective Dates or Redemption Notice Dates in the table above, as the case may be, the number of
Additional Shares by which the Conversion Rate shall be increased shall be determined by a straight-line interpolation between
the number of Additional Shares set forth for the higher and lower Stock Prices and the earlier and later Effective Dates or Redemption
Notice Dates, as applicable, based on a 365-day year;

 

(ii)           if the Stock Price is greater than $900.00 per share (subject to adjustment in the same manner as the Stock Prices set forth
in the column headings of the table above pursuant to subsection (d) above), no Additional Shares shall be added to the Conversion
Rate; and

 

(iii)          if the Stock Price is less than $148.2101 per share (subject to adjustment in the same manner as the Stock Prices set forth
in the column headings of the table above pursuant to subsection (d) above), no Additional Shares shall be added to the Conversion
Rate.

 

Notwithstanding the foregoing, in no event
shall the Conversion Rate per $1,000 principal amount of Notes exceed 6.7471shares of Common Stock, subject to adjustment in the
same manner as the Conversion Rate pursuant to Section 14.04.

 

(f)           
Nothing in this Section 14.03 shall prevent an adjustment to the Conversion Rate pursuant to Section 14.04 in respect of
a Make-Whole Fundamental Change.

 

Section 14.04. Adjustment of Conversion
Rate. The Conversion Rate shall be adjusted from time to time by the Company if any of the following events occurs, except
that the Company shall not make any adjustments to the Conversion Rate if Holders of the Notes participate (other than in the case
of (x) a share split or share combination or (y) a tender or exchange offer), at the same time and upon the same terms as
holders of the Common Stock and solely as a result of holding the Notes, in any of the transactions described in this Section 14.04,
without having to convert their Notes, as if they held a number of shares of Common Stock equal to the Conversion Rate, multiplied
by the principal amount (expressed in thousands) of Notes held by such Holder.

 

    	 	65	 

     

    

 

(a)           
If the Company exclusively issues shares of Common Stock as a dividend or distribution on shares of the Common Stock, or
if the Company effects a share split or share combination, the Conversion Rate shall be adjusted based on the following formula:

 

 

where,

 

	CR0	=	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date of such dividend or distribution, or immediately prior to the open of business on the Effective Date of such share split or share combination, as applicable;

                            

	CR'	=	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date or Effective Date, as the case may be;

         

	OS0	=	the number of shares of Common Stock outstanding immediately prior to the open of business on such Ex-Dividend Date or Effective Date (before giving effect to any such dividend, distribution, share split or share combination), as the case may be; and

         

	OS'	=	the number of shares of Common Stock outstanding immediately after giving effect to such dividend, distribution, share split or share combination, as the case may be.

 

Any adjustment made under this Section 14.04(a) shall become
effective immediately after the open of business on the Ex-Dividend Date for such dividend or distribution, or immediately after
the open of business on the Effective Date for such share split or share combination, as applicable. If any dividend or distribution
of the type described in this Section 14.04(a) is declared but not so paid or made, the Conversion Rate shall be immediately readjusted,
effective as of the date the Board of Directors determines not to pay such dividend or distribution, to the Conversion Rate that
would then be in effect if such dividend or distribution had not been declared.

 

    	 	66	 

     

    

 

(b)           
If the Company issues to all or substantially all holders of the Common Stock any rights, options or warrants (other than
in connection with a stockholder rights plan) entitling them, for a period of not more than 60 calendar days after the announcement
date of such issuance, to subscribe for or purchase shares of the Common Stock at a price per share that is less than the average
of the Last Reported Sale Prices of the Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading
Day immediately preceding the date of announcement of such issuance, the Conversion Rate shall be increased based on the following
formula:

 

 

where,

 

	CR0	=	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such issuance;

                            

	CR'	=	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date;

         

	OS0	=	the number of shares of Common Stock outstanding immediately prior to the open of business on such Ex-Dividend Date;

         

	X	=	the total number of shares of Common Stock issuable pursuant to such rights, options or warrants; and

         

	Y	=	the number of shares of Common Stock equal to the aggregate price payable to exercise such rights, options or warrants, divided by the average of the Last Reported Sale Prices of the Common Stock over the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of the issuance of such rights, options or warrants.

 

Any increase made under this Section 14.04(b) shall be made
successively whenever any such rights, options or warrants are issued and shall become effective immediately after the open of
business on the Ex-Dividend Date for such issuance. To the extent that shares of the Common Stock are not delivered after the expiration
of such rights, options or warrants, the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect
had the increase with respect to the issuance of such rights, options or warrants been made on the basis of delivery of only the
number of shares of Common Stock actually delivered. If such rights, options or warrants are not so issued, the Conversion Rate
shall be decreased to the Conversion Rate that would then be in effect if such Ex-Dividend Date for such issuance had not occurred.

 

For purposes of this Section 14.04(b) and
Section 14.01(b)(ii)(A), in determining whether any rights, options or warrants entitle the holders of Common Stock to subscribe
for or purchase shares of the Common Stock at less than such average of the Last Reported Sale Prices of the Common Stock for the
10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of such
issuance, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any
consideration received by the Company for such rights, options or warrants and any amount payable on exercise or conversion thereof,
the value of such consideration, if other than cash, to be determined by the Company.

 

    	 	67	 

     

    

 

(c)           
If the Company distributes shares of its Capital Stock, evidences of its indebtedness, other assets or property of the Company
or rights, options or warrants to acquire its Capital Stock or other securities of the Company, to all or substantially all holders
of the Common Stock, excluding (i) dividends, distributions or issuances (including share splits) as to which an adjustment was
effected pursuant to Section 14.04(a) or Section 14.04(b), (ii) dividends or distributions paid exclusively in cash as to which
an adjustment was effected pursuant to Section 14.04(d), (iii) rights issued pursuant a stockholder rights plan except as set forth
in Section 14.11, (iv) distributions of Reference Property in a transaction described in Section 14.07 and (v) Spin-Offs
as to which the provisions set forth below in this Section 14.04(c) shall apply (any of such shares of Capital Stock, evidences
of indebtedness, other assets or property or rights, options or warrants to acquire Capital Stock or other securities, the “Distributed
Property”), then the Conversion Rate shall be increased based on the following formula:

 

 

 

where,

 

	CR0	=	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such distribution;

                            

	CR'	=	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date;

         

	SP0	=	the average of the Last Reported Sale Prices of the Common Stock over the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the Ex-Dividend Date for such distribution; and

         

	FMV	=	the fair market value (as determined by the Company) of the Distributed Property with respect to each outstanding share of the Common Stock on the Ex-Dividend Date for such distribution.

 

Any increase made under the portion of this
Section 14.04(c) above shall become effective immediately after the open of business on the Ex-Dividend Date for such distribution.
If such distribution is not so paid or made, the Conversion Rate shall be decreased to the Conversion Rate that would then be in
effect if such distribution had not been declared. In the case of any distribution of rights, options or warrants, to the extent
any such rights, options or warrants expire unexercised, the Conversion Rate shall be immediately readjusted to the Conversion
Rate that would then be in effect had the increase made for the distribution of such rights, options or warrants been made on the
basis of delivery of only the number of shares of Common Stock actually delivered upon exercise of such rights, options or warrants.
Notwithstanding the foregoing, if “FMV” (as defined above) is equal to or greater than “SP0”
(as defined above), in lieu of the foregoing increase, each Holder of a Note shall receive, in respect of each $1,000 principal
amount thereof, at the same time and upon the same terms as holders of the Common Stock receive the Distributed Property, the amount
and kind of Distributed Property such Holder would have received if such Holder owned a number of shares of Common Stock equal
to the Conversion Rate in effect on the Ex-Dividend Date for the distribution.

 

    	 	68	 

     

    

 

With respect to an adjustment pursuant to
this Section 14.04(c) where there has been a payment of a dividend or other distribution on the Common Stock of shares of Capital
Stock of any class or series, or similar equity interest, of or relating to any of its Subsidiaries or other business units of
the Company, that are, or, when issued, will be, listed or admitted for trading on a U.S. national securities exchange (a “Spin-Off”),
the Conversion Rate shall be increased based on the following formula:

 

 

 

where,

 

	CR0	=	the Conversion Rate in effect immediately prior to the end of the Valuation Period;

                            

	CR'	=	the Conversion Rate in effect immediately after the end of the Valuation Period;

         

	FMV0	=	the average of the Last Reported Sale Prices of the Capital Stock or similar equity interest distributed to holders of the Common Stock applicable to one share of the Common Stock (determined by reference to the definition of Last Reported Sale Price as set forth in Section 1.01 as if references therein to Common Stock were to such Capital Stock or similar equity interest) over the first 10 consecutive Trading Day period after, and including, the Ex-Dividend Date of the Spin-Off (the “Valuation Period”) provided that, if there is no Last Reported Sale Price of the Capital Stock or similar equity interest distributed to holders of the Common Stock on such Ex-Dividend Date, the “Valuation Period” shall be the 10 consecutive Trading Day period after, and including the first Trading Day such Last Reported Sale Price is available; and

         

	MP0	=	the average of the Last Reported Sale Prices of the Common Stock over the Valuation Period.

 

The adjustment to the Conversion Rate under the preceding paragraph
shall occur at the close of business on the last Trading Day of the Valuation Period; provided that (x) in respect of any
conversion of Notes for which Physical Settlement is applicable, if the relevant Conversion Date occurs during the Valuation Period,
references to “10” in the portion of this Section 14.04(c) related to Spin-Offs shall be deemed to be replaced with
such lesser number of Trading Days as have elapsed from, and including, the Ex-Dividend Date of such Spin-Off to, and including,
the Conversion Date in determining the Conversion Rate and (y) in respect of any conversion of Notes for which Cash Settlement
or Combination Settlement is applicable, for any Trading Day that falls within the relevant Observation Period for such conversion
and within the Valuation Period, references to “10” in the portion of this Section 14.04(c) related to Spin-Offs shall
be deemed to be replaced with such lesser number of Trading Days as have elapsed from, and including, the Ex-Dividend Date of such
Spin-Off to, and including, such Trading Day in determining the Conversion Rate as of such Trading Day of such Observation Period.
If any dividend or distribution that constitutes a Spin-Off is declared but not so paid or made, the Conversion Rate shall be immediately
decreased, effective as of the date the Board of Directors determines not to pay or make such dividend or distribution, to the
Conversion Rate that would then be in effect if such dividend or distribution had not been declared or announced.

 

    	 	69	 

     

    

 

For purposes of this Section 14.04(c) (and
subject in all respect to Section 14.11), rights, options or warrants
distributed by the Company to all holders of the Common Stock entitling them to subscribe for or purchase shares of the Company’s
Capital Stock, including Common Stock (either initially or under certain circumstances), which rights, options or warrants, until
the occurrence of a specified event or events (“Trigger Event”): (i) are deemed to be transferred with such
shares of the Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of the Common Stock,
shall be deemed not to have been distributed for purposes of this Section 14.04(c) (and no adjustment to the Conversion Rate under
this Section 14.04(c) will be required) until the occurrence of the earliest Trigger Event, whereupon such rights, options or warrants
shall be deemed to have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate shall be made
under this Section 14.04(c). If any such right, option or warrant, including any such existing rights, options or warrants distributed
prior to the date of this Indenture, are subject to events, upon the occurrence of which such rights, options or warrants become
exercisable to purchase different securities, evidences of indebtedness or other assets, then the date of the occurrence of any
and each such event shall be deemed to be the date of distribution and Ex-Dividend Date with respect to new rights, options or
warrants with such rights (in which case the existing rights, options or warrants shall be deemed to terminate and expire on such
date without exercise by any of the holders thereof). In addition, in the event of any distribution (or deemed distribution) of
rights, options or warrants, or any Trigger Event or other event (of the type described in the immediately preceding sentence)
with respect thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the Conversion
Rate under this Section 14.04(c) was made, (1) in the case of any such rights, options or warrants that shall all have been redeemed
or purchased without exercise by any holders thereof, upon such final redemption or purchase (x) the Conversion Rate shall be readjusted
as if such rights, options or warrants had not been issued and (y) the Conversion Rate shall then again be readjusted to give effect
to such distribution, deemed distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to
the per share redemption or purchase price received by a holder or holders of Common Stock with respect to such rights, options
or warrants (assuming such holder had retained such rights, options or warrants), made to all holders of Common Stock as of the
date of such redemption or purchase, and (2) in the case of such rights, options or warrants that shall have expired or been terminated
without exercise by any holders thereof, the Conversion Rate shall be readjusted as if such rights, options and warrants had not
been issued.

 

For purposes of Section 14.04(a),
Section 14.04(b) and this Section 14.04(c), if any dividend or
distribution to which this Section 14.04(c) is applicable also includes one or both of:

 

(A)       a
dividend or distribution of shares of Common Stock to which Section 14.04(a) is applicable (the “Clause A Distribution”);
or

 

(B)       a
dividend or distribution of rights, options or warrants to which Section 14.04(b) is applicable (the “Clause B Distribution”),

 

    	 	70	 

     

    

 

then, in either case, (1) such dividend or
distribution, other than the Clause A Distribution and the Clause B Distribution, shall be deemed to be a dividend or distribution
to which this Section 14.04(c) is applicable (the “Clause C Distribution”) and any Conversion Rate adjustment
required by this Section 14.04(c) with respect to such Clause C Distribution shall then be made, and (2) the Clause A Distribution
and Clause B Distribution shall be deemed to immediately follow the Clause C Distribution and any Conversion Rate adjustment required
by Section 14.04(a) and Section 14.04(b) with respect thereto shall then be made, except that, if determined by the Company (I)
the “Ex-Dividend Date” of the Clause A Distribution and the Clause B Distribution shall be deemed to be the Ex-Dividend
Date of the Clause C Distribution and (II) any shares of Common Stock included in the Clause A Distribution or Clause B Distribution
shall be deemed not to be “outstanding immediately prior to the open of business on such Ex-Dividend Date or Effective Date”
within the meaning of Section 14.04(a) or “outstanding immediately prior to the open of business on such Ex-Dividend Date”
within the meaning of Section 14.04(b).

 

(d)           
If the Company makes any cash dividend or distribution to all or substantially all holders of the Common Stock, the Conversion
Rate shall be adjusted based on the following formula:

 

 

 

where,

 

	CR0	=	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such dividend or distribution;

                            

	CR'	=	the Conversion Rate in effect immediately after the open of business on the Ex-Dividend Date for such dividend or distribution;

         

	SP0	=	the Last Reported Sale Price of the Common Stock on the Trading Day immediately preceding the Ex-Dividend Date for such dividend or distribution; and

         

	C	=	the amount in cash per share the Company distributes to all or substantially all holders of the Common Stock.

 

Any increase made under this Section 14.04(d) shall become effective
immediately after the open of business on the Ex-Dividend Date for such dividend or distribution. If such dividend or distribution
is not so paid, the Conversion Rate shall be decreased, effective as of the date the Board of Directors determines not to make
or pay such dividend or distribution, to be the Conversion Rate that would then be in effect if such dividend or distribution had
not been declared. Notwithstanding the foregoing, if “C” (as defined above) is equal to or greater than “SP0”
(as defined above), in lieu of the foregoing increase, each Holder of a Note shall receive, for each $1,000 principal amount of
Notes it holds, at the same time and upon the same terms as holders of shares of the Common Stock, the amount of cash that such
Holder would have received if such Holder owned a number of shares of Common Stock equal to the Conversion Rate in effect on the
Ex-Dividend Date for such cash dividend or distribution.

 

    	 	71	 

     

    

 

(e)           
If the Company or any of its Subsidiaries make a payment in respect of a tender or exchange offer for the Common Stock that
is subject to the then applicable tender offer rules under the Exchange Act, other than an odd lot tender offer, to the extent
that the cash and value of any other consideration included in the payment per share of the Common Stock exceeds the average of
the Last Reported Sale Prices of the Common Stock over the 10 consecutive Trading Day period commencing on, and including, the
Trading Day next succeeding the last date on which tenders or exchanges may be made pursuant to such tender or exchange offer,
the Conversion Rate shall be increased based on the following formula:

 

 

 

where,

 

	CR0	=	the Conversion Rate in effect immediately prior to the close of business on the 10th Trading Day immediately following, and including, the Trading Day next succeeding the date such tender or exchange offer expires;

                                                                                 

	CR'	=	the Conversion Rate in effect immediately after the close of business on the 10th Trading Day immediately following, and including, the Trading Day next succeeding the date such tender or exchange offer expires;

                                                                               

	AC	=	the aggregate value of all cash and any other consideration (as determined by the Company) paid or payable for shares of Common Stock purchased in such tender or exchange offer;

                                                                               

	OS0	=	the number of shares of Common Stock outstanding immediately prior to the date such tender or exchange offer expires (prior to giving effect to the purchase of all shares of Common Stock accepted for purchase or exchange in such tender or exchange offer);

                                                                               

	OS'	=	the number of shares of Common Stock outstanding immediately after the date such tender or exchange offer expires (after giving effect to the purchase of all shares of Common Stock accepted for purchase or exchange in such tender or exchange offer); and

                                                                               

	SP'	=	the average of the Last Reported Sale Prices of the Common Stock over the 10 consecutive Trading Day period commencing on, and including, the Trading Day next succeeding the date such tender or exchange offer expires.

 

    	 	72	 

     

    

 

The adjustment to the Conversion Rate under this Section 14.04(e)
shall occur at the close of business on the 10th Trading Day immediately
following, and including, the Trading Day next succeeding the date such tender or exchange offer expires; provided that
(x) in respect of any conversion of Notes for which Physical Settlement is applicable, if the relevant Conversion Date occurs during
the 10 Trading Days immediately following, and including, the Trading Day next succeeding the expiration date of any tender or
exchange offer, references to “10” or “10th” in this Section 14.04(e) shall
be deemed replaced with such lesser number of Trading Days as have elapsed from, and including, the Trading Day next succeeding
the expiration date of such tender or exchange offer to, and including, such Conversion Date in determining the Conversion Rate
and (y) in respect of any conversion of Notes for which Cash Settlement or Combination Settlement is applicable, for any Trading
Day that falls within the relevant Observation Period for such conversion and within the 10 Trading Days immediately following,
and including, the Trading Day next succeeding the expiration date of any tender or exchange offer, references to “10”
or “10th” in this Section 14.04(e) shall be deemed
replaced with such lesser number of Trading Days as have elapsed from, and including, the Trading Day next succeeding the expiration
date of such tender or exchange offer to, and including, such Trading Day in determining the Conversion Rate as of such Trading
Day. If the Company or one of its Subsidiaries is obligated to purchase Common Stock pursuant to any such tender or exchange
offer described in this Section 14.04(e) but the Company is, or such Subsidiary is, permanently prevented by applicable law from
effecting any such purchase or all such purchases are rescinded, the Conversion Rate will be decreased to be the Conversion Rate
that would then be in effect if such tender or exchange offer had not been made or had been made only in respect of the purchases
that have been effected.

 

(f)           
Notwithstanding this Section 14.04 or any other provision of this Indenture or the Notes, if a Conversion Rate adjustment
becomes effective on any Ex-Dividend Date, and a Holder that has converted its Notes on or after such Ex-Dividend Date and on or
prior to the related Record Date would be treated as the record holder of the shares of Common Stock as of the related Conversion
Date as described under Section 14.02(i) based on an adjusted Conversion Rate for such Ex-Dividend Date, then, notwithstanding
the Conversion Rate adjustment provisions in this Section 14.04, the Conversion Rate adjustment relating to such Ex-Dividend Date
shall not be made for such converting Holder. Instead, such Holder shall be treated as if such Holder were the record owner of
the shares of Common Stock on an unadjusted basis and participate in the related dividend, distribution or other event giving rise
to such adjustment.

 

(g)           
Except as stated herein, the Company shall not adjust the Conversion Rate for the issuance of shares of the Common Stock
or any securities convertible into or exchangeable for shares of the Common Stock or the right to purchase shares of the Common
Stock or such convertible or exchangeable securities.

 

(h)           
In addition to those adjustments required by clauses (a), (b), (c), (d) and (e) of this Section 14.04, and subject to the
listing standards of the Nasdaq Global Market, the Company from time to time may increase the Conversion Rate by any amount for
a period of at least 20 Business Days if the Board of Directors determines that such increase would be in the Company’s best
interest. In addition, subject the listing standards of the Nasdaq Global Market, the Company may (but is not required to) increase
the Conversion Rate to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock in connection
with a dividend or distribution of shares of Common Stock (or rights to acquire shares of Common Stock) or similar event.

 

    	 	73	 

     

    

 

(i)           
Notwithstanding anything to the contrary in this Article 14, the Conversion Rate shall not be adjusted:

 

(i)           
upon the issuance of shares of Common Stock at a price below the Conversion Price or otherwise, other than any such issuance
described in Section 14.04(a), Section 14.04(b) and Section 14.04(c) above;

 

(ii)           upon the issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of
dividends or interest payable on the Company’s securities and the investment of additional optional amounts in shares of
Common Stock under any plan;

 

(iii)          upon the issuance of any shares of Common Stock or options or rights to purchase those shares pursuant to any present or
future employee, director or consultant benefit or incentive plan or program (including pursuant to any evergreen plan) of or assumed
by the Company or any of the Company’s Subsidiaries;

 

(iv)          upon the issuance of any shares of the Common Stock pursuant to any option, warrant, right or exercisable, exchangeable
or convertible security not described in clause (iii) of this subsection and outstanding as of the date the Notes were first issued;

 

(v)           for a third-party tender offer by any party other than a tender offer by one or more of the Company’s Subsidiaries
as described in Section 14.04(e) above;

 

(vi)          upon the repurchase of any shares of Common Stock pursuant to an open-market share repurchase program or other buy-back
transaction (including, without limitation, through any structured or derivative transactions such as accelerated share repurchase
transactions or similar forward derivatives), or other buy-back transaction, that is not a tender offer or exchange offer of the
nature described in Section 14.04(e);

 

(vii)         solely
for a change in the par value (or lack of par value) of the Common Stock; or

 

(viii)        for accrued and unpaid interest, if any.

 

(j)           
The Company shall not be required to make an adjustment pursuant to clauses (a), (b), (c), (d) or (e) of this Section 14.04
unless such adjustment would result in a change of at least 1% of the then effective Conversion Rate. However, the Company shall
carry forward any adjustment that the Company would otherwise have to make and take that adjustment into account in any subsequent
adjustment. Notwithstanding the foregoing, all such carried-forward adjustments shall be made with respect to the Notes (i) when
the aggregate of all such carried-forward adjustments equals or exceeds 1% of the Conversion Rate, (ii) regardless of whether the
aggregate adjustment is less than 1% of the Conversion Rate, (x) on the Conversion Date for any Notes (in the case of Physical
Settlement) and (y) on each Trading Day of any Observation Period (in the case of Cash Settlement or Combination Settlement) and
(iii) on the Effective Date of any Make-Whole Fundamental Change, in each case, unless the adjustment has already been made. All
calculations and other determinations under this Article 14 shall be made by the Company and shall be made to the nearest one-ten
thousandth (1/10,000th) of a share.

 

    	 	74	 

     

    

 

(k)           
Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly file with the Trustee (and the Conversion
Agent if not the Trustee) an Officer’s Certificate setting forth the Conversion Rate after such adjustment and setting forth
a brief statement of the facts requiring such adjustment. Unless and until a Responsible Officer of the Trustee shall have received
such Officer’s Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of the Conversion Rate and
may assume without inquiry that the last Conversion Rate of which it has knowledge is still in effect. Promptly after delivery
of such certificate, the Company shall prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion
Rate and the date on which each adjustment becomes effective and shall deliver such notice of such adjustment of the Conversion
Rate to each Holder. Failure to deliver such notice shall not affect the legality or validity of any such adjustment.

 

(l)           
For purposes of this Section 14.04, the number of shares of Common Stock at any time outstanding shall not include shares
of Common Stock held in the treasury of the Company so long as the Company does not pay any dividend or make any distribution on
shares of Common Stock held in the treasury of the Company, but shall include shares of Common Stock issuable in respect of scrip
certificates issued in lieu of fractions of shares of Common Stock.

 

(m)           Notwithstanding anything to the contrary in this Article 14, in the event of an increase in the Conversion Rate pursuant
to Section 14.03 or clauses (b), (c), (d), or (e) of this Section 14.04 that would result in the Notes, in the aggregate, becoming
convertible into shares of Common Stock in violation of the listing standards of the Nasdaq Global Market, regardless of whether
the Company has a class of securities listed on the Nasdaq Global Market, the Company shall, at its option, either obtain stockholder
approval of such issuances or deliver cash in lieu of any shares of Common Stock otherwise deliverable upon conversions in excess
of such limitations based on the Daily VWAP on each Trading Day of the relevant Observation Period in respect of which, in lieu
of delivering the shares of Common Stock, the Company delivers cash pursuant to this Section 14.04(m).

 

Section 14.05. Adjustments of Prices.
Whenever any provision of this Indenture requires the Company to calculate the Last Reported Sale Prices, the Daily VWAPs,
the Daily Conversion Values or the Daily Settlement Amounts over a span of multiple days (including, without limitation, an Observation
Period and the period, if any, for determining the Stock Price for purposes of a Make-Whole Fundamental Change or a Notice of Redemption),
the Company shall make appropriate adjustments (without duplication in respect of any adjustment made pursuant to the provisions
described under Section 14.04) to each to account for any adjustment to the Conversion Rate that becomes effective, or any event
requiring an adjustment to the Conversion Rate where the Ex-Dividend Date, Effective Date or expiration date of the event occurs,
at any time during the period when the Last Reported Sale Prices, the Daily VWAPs, the Daily Conversion Values or the Daily Settlement
Amounts are to be calculated.

 

Section 14.06. Shares to Be Fully Paid.
The Company shall use its commercially reasonable efforts to provide, free from preemptive rights, out of its authorized but unissued
shares or shares held in treasury, sufficient shares of Common Stock to provide for conversion of the Notes from time to time as
such Notes are presented for conversion (assuming delivery of the maximum number of Additional Shares pursuant to Section 14.03
and that at the time of computation of such number of shares, all such Notes would be converted by a single Holder and that Physical
Settlement is applicable).

 

    	 	75	 

     

    

 

Section 14.07. Effect of Recapitalizations,
Reclassifications and Changes of the Common Stock.

 

(a)           
In the case of:

 

(i)           
any recapitalization, reclassification or change of the Common Stock (other than a change to par value, or from par value
to no par value, or changes resulting from a subdivision or combination),

 

(ii)          
any consolidation, merger, combination or similar transaction involving the Company,

 

(iii)          any
sale, lease or other transfer to a third party of the consolidated assets of the Company and the Company’s Subsidiaries
substantially as an entirety or

 

(iv)          any statutory share exchange,

 

in each case, as a result of which the Common
Stock would be converted into, or exchanged for, stock, other securities, other property or assets (including cash or any combination
thereof) (any such event, a “Merger Event”), then, at and after the effective time of such Merger Event, the
right to convert each $1,000 principal amount of Notes shall be changed into a right to convert such principal amount of Notes
into the kind and amount of shares of stock, other securities or other property or assets (including cash or any combination thereof)
that a holder of a number of shares of Common Stock equal to the Conversion Rate immediately prior to such Merger Event would have
owned or been entitled to receive (the “Reference Property”, with each “unit of Reference Property”
meaning the kind and amount of Reference Property that a holder of one share of Common Stock is entitled to receive) upon such
Merger Event and, at the effective time of such Merger Event, the Company or the successor or purchasing Person, as the case may
be, shall execute with the Trustee a supplemental indenture permitted Section 10.01(h) providing for such change in the right to
convert each $1,000 principal amount of Notes; provided, however, that at and after the effective time of the Merger
Event (A) the Company or the successor or acquiring Person, as the case may be, shall continue to have the right to determine the
form of consideration to be paid or delivered, as the case may be, upon conversion of Notes in accordance with Section 14.02 and
(B) (I) any amount payable in cash upon conversion of the Notes in accordance with Section 14.02 shall continue to be payable in
cash, (II) any shares of Common Stock that the Company would have been required to deliver upon conversion of the Notes in accordance
with Section 14.02 shall instead be deliverable in the amount and type of Reference Property that a holder of that number of shares
of Common Stock would have received in such Merger Event and (III) the Daily VWAP shall be calculated based on the value of a unit
of Reference Property.

 

    	 	76	 

     

    

 

If the Merger Event causes the Common Stock
to be converted into, or exchanged for, the right to receive more than a single type of consideration (determined based in part
upon any form of stockholder election), then (i) the Reference Property into which the Notes will be convertible shall be deemed
to be (x) the weighted average of the types and amounts of consideration received by the holders of Common Stock that affirmatively
make such an election or (y) if no holders of Common Stock affirmatively make such an election, the types and amounts of consideration
actually received by the holders of Common Stock, and (ii) the unit of Reference Property for purposes of the immediately preceding
paragraph shall refer to the consideration referred to in clause (i) attributable to one share of Common Stock. If the holders
of the Common Stock receive only cash in such Merger Event, then for all conversions for which the relevant Conversion Date occurs
after the effective date of such Merger Event (A) the consideration due upon conversion of each $1,000 principal amount of Notes
shall be solely cash in an amount equal to the Conversion Rate in effect on the Conversion Date (as may be increased by any Additional
Shares pursuant to Section 14.03), multiplied by the price paid per share of Common Stock in such Merger Event and (B) the
Company shall satisfy the Conversion Obligation by paying cash to converting Holders on the second Business Day immediately following
the relevant Conversion Date. The Company shall notify Holders, the Trustee and the Conversion Agent (if other than the Trustee)
in writing of such weighted average as soon as reasonably practicable after such determination is made.

 

If the Reference Property in respect of
any such Merger Event includes, in whole or in part, shares of Common Equity, the supplemental indenture described in the second
immediately preceding paragraph shall provide for anti-dilution and other adjustments that shall be as nearly equivalent as is
possible to the adjustments provided for in this Article 14 with respect
to the portion of Reference Property constituting such Common Equity. If, in the case of any Merger Event, the Reference
Property includes shares of stock, securities or other property or assets (other than cash and/or cash equivalents) of a Person
other than the Company or the successor or purchasing corporation, as the case may be, in such Merger Event, then such supplemental
indenture shall also be executed by such other Person and shall contain such additional provisions to protect the interests of
the Holders as the Company shall reasonably consider necessary by reason of the foregoing, including the provisions providing for
the purchase rights set forth in Article 15. The Company shall not become party to any such Merger Event unless its terms are consistent
with this Section 14.07.

 

(b)           
When the Company executes a supplemental indenture pursuant to subsection (a) of this Section 14.07, the Company shall promptly
file with the Trustee an Officer’s Certificate briefly stating the reasons therefor, the kind or amount of cash, securities
or property or asset that will comprise a unit of Reference Property after any such Merger Event, any adjustment to be made with
respect thereto and that all conditions precedent have been complied with, and shall promptly deliver or cause to be delivered
notice thereof to all Holders. The Company shall cause notice of the execution of such supplemental indenture to be delivered to
each Holder within 20 days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of
such supplemental indenture.

 

(c)           
None of the foregoing provisions shall affect the right of a holder of Notes to convert its Notes into cash, shares of Common
Stock or a combination of cash and shares of Common Stock, as applicable, as set forth in Section 14.01 and Section 14.02 prior
to the effective date of such Merger Event.

 

    	 	77	 

     

    

 

(d)           
The above provisions of this Section shall similarly apply to successive Merger Events.

 

(e)           
Upon the consummation of any Merger Event, references to “Common Stock” shall be deemed to refer to any Reference
Property that constitutes capital stock after giving effect to such Merger Event.

 

Section 14.08. Certain Covenants.
(a) The Company covenants that all shares of Common Stock issued upon conversion of Notes will be fully paid and non-assessable
by the Company and free from all taxes, liens and charges with respect to the issue thereof.

 

(b)           
The Company covenants that, if any shares of Common Stock to be provided for the purpose of conversion of Notes hereunder
require registration with or approval of any governmental authority under any federal or state law before such shares of Common
Stock may be validly issued upon conversion, the Company will, to the extent then permitted by the rules and interpretations of
the Commission, secure such registration or approval, as the case may be.

 

(c)           
The Company further covenants that if at any time the Common Stock shall be listed on any national securities exchange or
automated quotation system the Company will list and keep listed, so long as the Common Stock shall be so listed on such exchange
or automated quotation system, any Common Stock issuable upon conversion of the Notes.

 

Section 14.09. Responsibility of Trustee.
The Trustee and any other Conversion Agent shall not at any time be under any duty or responsibility to any Holder to determine
the Conversion Rate (or any adjustment thereto) or whether any facts exist that may require any adjustment (including any increase)
of the Conversion Rate, or with respect to the nature or extent or calculation of any such adjustment when made, or with respect
to the method employed, or herein or in any supplemental indenture provided to be employed, in making the same. The Trustee and
any other Conversion Agent shall not be accountable with respect to the validity or value (or the kind or amount) of any shares
of Common Stock, or of any securities, property or cash that may at any time be issued or delivered upon the conversion of any
Note; and the Trustee and any other Conversion Agent make no representations with respect thereto. Neither the Trustee nor any
Conversion Agent shall be responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock or
stock certificates or other securities or property or cash upon the surrender of any Note for the purpose of conversion or to comply
with any of the duties, responsibilities or covenants of the Company contained in this Article. Without limiting the generality
of the foregoing, neither the Trustee nor any Conversion Agent shall be under any responsibility to determine the correctness of
any provisions contained in any supplemental indenture entered into pursuant to Section 14.07 relating either to the kind or amount
of shares of stock or securities or property (including cash) receivable by Holders upon the conversion of their Notes after any
event referred to in such Section 14.07 or to any adjustment to be made with respect thereto, but, subject to the provisions of
Section 7.01, may accept (without any independent investigation) as conclusive evidence of the correctness of any such provisions,
and shall be protected in conclusively relying upon, the Officer’s Certificate (which the Company shall be obligated to file
with the Trustee prior to the execution of any such supplemental indenture) with respect thereto. Neither the Trustee nor the Conversion
Agent shall be responsible for determining whether any event contemplated by Section 14.01(b) has occurred that makes the Notes
eligible for conversion or no longer eligible therefor until the Company has delivered to the Trustee and the Conversion Agent
the notices referred to in Section 14.01(b) with respect to the commencement or termination of such conversion rights, on which
notices the Trustee and the Conversion Agent may conclusively rely, and the Company agrees to deliver such notices to the Trustee
and the Conversion Agent immediately after the occurrence of any such event or at such other times as shall be provided for in
Section 14.01(b). Except as otherwise expressly provided herein, neither the Trustee nor any other agent acting under this Indenture
(other than the Company, if acting in such capacity) shall have any obligation to make any calculation or to determine whether
the Notes may be surrendered for conversion pursuant to this Indenture, or to notify the Company or the Depositary or any of the
Holders if the Notes have become convertible pursuant to the terms of this Indenture.

 

    	 	78	 

     

    

 

Section 14.10. Notice to Holders Prior
to Certain Actions. In case of any:

 

(a)           
action by the Company or one of its Subsidiaries that would require an adjustment in the Conversion Rate pursuant to Section
14.04 or Section 14.11; or

 

(b)           
voluntary or involuntary dissolution, liquidation or winding-up of the Company;

 

then, in each case (unless notice of such event is otherwise
required pursuant to another provision of this Indenture), the Company shall cause to be filed with the Trustee and the Conversion
Agent (if other than the Trustee) and to be delivered to each Holder, as promptly as possible but in any event at least 10 days
prior to the applicable date hereinafter specified, a notice stating (i) the date on which a record is to be taken for the purpose
of such action by the Company or one of its Subsidiaries or, if a record is not to be taken, the date as of which the holders of
Common Stock of record are to be determined for the purposes of such action by the Company or one of its Subsidiaries, or (ii)
the date on which such dissolution, liquidation or winding-up is expected to become effective or occur, and the date as of which
it is expected that holders of Common Stock of record shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such dissolution, liquidation or winding-up. Failure to give such notice, or any defect therein, shall
not affect the legality or validity of such action by the Company or one of its Subsidiaries, dissolution, liquidation or winding-up.

 

Section 14.11. Stockholder Rights Plans.
If the Company has a stockholder rights plan in effect upon conversion of the Notes, each share of Common Stock, if any, issued
upon such conversion shall be entitled to receive the appropriate number of rights, if any, and the certificates representing the
Common Stock issued upon such conversion shall bear such legends, if any, in each case as may be provided by the terms of any such
stockholder rights plan, as the same may be amended from time to time. However, if, prior to any conversion of Notes, the rights
have separated from the shares of Common Stock in accordance with the provisions of the applicable stockholder rights plan so that
the Holders would not be entitled to receive any rights in respect of Common Stock, if any, issuable upon conversion of the Notes,
the Conversion Rate shall be adjusted at the time of separation as if the Company distributed to all or substantially all holders
of the Common Stock Distributed Property as provided in Section 14.04(c), subject to readjustment in the event of the expiration,
termination or redemption of such rights.

 

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Section 14.12. Exchange In Lieu Of Conversion.
(a) When a Holder surrenders its Notes for conversion, the Company may, at its election, direct the Conversion Agent to
surrender, on or prior to the Trading Day immediately following the relevant Conversion Date, such Notes to one or more financial
institutions designated by the Company (each, a “Designated Institution”) for exchange in lieu of conversion
(an “Exchange Election”). In order to accept any Notes surrendered for conversion for exchange in lieu of conversion,
the Designated Institution(s) must agree to timely pay and/or deliver, as the case may be, in exchange for such Notes, the cash,
shares of Common Stock or combination of cash and Common Stock, at the Company’s election, that would otherwise be due upon
conversion (the “Conversion Consideration”) as described in Section 14.02 above. If the Company makes an Exchange
Election, the Company shall, by the close of business on the Trading Day following the relevant Conversion Date, notify the Holder
surrendering Notes for conversion, the Trustee and the Conversion Agent (if other than the Trustee), in writing that it has made
an Exchange Election, and the Company shall concurrently notify the Designated Institution(s) of the relevant deadline for delivery
of the Conversion Consideration and the type of conversion consideration to be paid and/or delivered, as the case may be. Any Notes
exchanged by the Designated Institution(s) will remain outstanding, subject to applicable procedures of the Depositary.

 

(b)           
If the Designated Institution(s) agree(s) to accept any Notes for exchange but does not timely pay and/or deliver, as the
case may be, the related Conversion Consideration to the Conversion Agent, or if the Designated Institution(s) do(es) not accept
such Notes for exchange, the Company shall, within the time period specified in Section 14.02(c), pay and/or deliver, as the case
may be, the Conversion Consideration in accordance with the provisions of Section 14.02.

 

(c)           
For the avoidance of doubt, in no event will the Company’s designation of any Designated Institution(s) pursuant to
this Section 14.12 require the Designated Institution(s) to accept any Notes for exchange.

 

Article
15

Repurchase of Notes at Option of Holders

 

Section 15.01. Intentionally Omitted.

 

Section 15.02. Repurchase at Option of
Holders Upon a Fundamental Change. (a) If a Fundamental Change occurs at any time prior to the Maturity Date, each Holder shall
have the right, at such Holder’s option, to require the Company to repurchase for cash all of such Holder’s Notes,
or any portion thereof properly surrendered and not validly withdrawn pursuant to Section 15.03 that is equal to $1,000 or an integral
multiple of $1,000, on the date (the “Fundamental Change Repurchase Date”) specified by the Company that is
not less than 20 Business Days or more than 35 Business Days following the date of the Fundamental Change Company Notice at a repurchase
price equal to 100% of the principal amount thereof, plus accrued and unpaid interest thereon to, but excluding, the Fundamental
Change Repurchase Date (the “Fundamental Change Repurchase Price”), unless the Fundamental Change Repurchase
Date falls after a Regular Record Date but on or prior to the Interest Payment Date to which such Regular Record Date relates,
in which case the Company shall instead pay the full amount of accrued and unpaid interest to Holders of record as of such Regular
Record Date, and the Fundamental Change Repurchase Price shall be equal to 100% of the principal amount of Notes to be repurchased
pursuant to this Article 15.

 

    	 	80	 

     

    

 

(b)           
Repurchases of Notes under this Section 15.02 shall be made, at the option of the Holder thereof, upon:

 

(i)            
delivery to the Paying Agent by a Holder of a duly completed notice (the “Fundamental Change Repurchase Notice”)
in the form set forth in Attachment 2 to the Form of Note attached hereto as Exhibit A, if the Notes are Physical Notes, or in
compliance with the Depositary’s procedures for surrendering interests in Global Notes, if the Notes are Global Notes, in
each case on or before the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date;
and

 

(ii)           
delivery of the Notes, if the Notes are Physical Notes, to the Paying Agent at any time after delivery of the Fundamental
Change Repurchase Notice (together with all necessary endorsements for transfer) at the Corporate Trust Office of the Paying Agent,
or book-entry transfer of the Notes, if the Notes are Global Notes, in compliance with the procedures of the Depositary, in each
case such delivery being a condition to receipt by the Holder of the Fundamental Change Repurchase Price therefor.

 

The Fundamental Change Repurchase Notice
in respect of any Physical Notes to be repurchased shall state:

 

(i)           
the certificate numbers of the Notes to be delivered for repurchase;

 

(ii)           the portion of the principal amount of Notes to be repurchased, which must be $1,000 or an integral multiple thereof; and

 

(iii)          that
the Notes are to be repurchased by the Company pursuant to the applicable provisions of the Notes and this Indenture.

 

If the Notes are Global Notes, to exercise the Fundamental Change
repurchase right, Holders must surrender their Notes in accordance with applicable Depositary procedures.

 

Notwithstanding anything herein to the contrary,
any Holder delivering to the Paying Agent the Fundamental Change Repurchase Notice contemplated by this Section 15.02 shall have
the right to withdraw, in whole or in part, such Fundamental Change Repurchase Notice at any time prior to the close of business
on the Business Day immediately preceding the Fundamental Change Repurchase Date by delivery of a written notice of withdrawal
to the Paying Agent in accordance with Section 15.03.

 

The Paying Agent shall promptly notify the
Company of the receipt by it of any Fundamental Change Repurchase Notice or written notice of withdrawal thereof.

 

    	 	81	 

     

    

 

(c)           
On or before the 20th Business Day after the occurrence of the effective date of a Fundamental Change, the Company shall
provide to all Holders and the Trustee and the Paying Agent (in the case of a Paying Agent other than the Trustee) a written notice
(the “Fundamental Change Company Notice”) of the occurrence of the effective date of the Fundamental Change
and of the repurchase right at the option of the Holders arising as a result thereof. In the case of Physical Notes, such notice
shall be by first class mail or, in the case of Global Notes, such notice shall be delivered in accordance with the applicable
procedures of the Depositary. Each Fundamental Change Company Notice shall specify:

 

(i)           
the events causing the Fundamental Change;

 

(ii)           the effective date of the Fundamental Change;

 

(iii)          the last date on which a Holder may exercise the repurchase right pursuant to this Article 15;

 

(iv)         
the Fundamental Change Repurchase Price;

 

(v)          
the Fundamental Change Repurchase Date;

 

(vi)          the name and address of the Paying Agent and the Conversion Agent, if applicable;

 

(vii)         if applicable, the Conversion Rate and any adjustments to the Conversion Rate as a result of such Fundamental Change (or
related Make-Whole Fundamental Change);

 

(viii)       
that the Notes with respect to which a Fundamental Change Repurchase Notice has been delivered by a Holder may be converted
only if the Holder withdraws the Fundamental Change Repurchase Notice in accordance with the terms of this Indenture; and

 

(ix)          the procedures that Holders must follow to require the Company to repurchase their Notes.

 

No failure of the Company to give the foregoing
notices and no defect therein shall limit the Holders’ repurchase rights or affect the validity of the proceedings for the
repurchase of the Notes pursuant to this Section 15.02.

 

At the Company’s request, given at
least five days prior to the date the Fundamental Change Company Notice is to be sent (or such lesser amount of time as agreed
to by the Trustee in its reasonable discretion), the Trustee shall give such notice in the Company’s name and at the Company’s
expense; provided, however, that, in all cases, the text of such Fundamental Change Company Notice shall be prepared
by the Company.

 

Simultaneously with providing such notice,
the Company shall publish the information on its website or through such other public medium as it may use at that time.

 

    	 	82	 

     

    

 

(d)           
Notwithstanding the foregoing, no Notes may be repurchased by the Company on any date at the option of the Holders upon
a Fundamental Change if the principal amount of the Notes has been accelerated, and such acceleration has not been rescinded, on
or prior to such date (except in the case of an acceleration resulting from a Default by the Company in the payment of the Fundamental
Change Repurchase Price with respect to such Notes). The Paying Agent will promptly return to the respective Holders thereof any
Physical Notes held by it during the acceleration of the Notes (except in the case of an acceleration resulting from a Default
by the Company in the payment of the Fundamental Change Repurchase Price with respect to such Notes), or any instructions for book-entry
transfer of the Notes in compliance with the applicable procedures of the Depositary shall be deemed to have been cancelled, and,
upon such return or cancellation, as the case may be, the Fundamental Change Repurchase Notice with respect thereto shall be deemed
to have been withdrawn.

 

(e)           
Notwithstanding anything to the contrary in this Article 15, the Company shall not be required to repurchase, or to make
an offer to repurchase, the Notes upon a Fundamental Change if a third party makes such an offer in the same manner, at the same
time and otherwise in compliance with the requirements for an offer made by the Company as set forth in this Article 15 and such
third party purchases all Notes properly surrendered and not validly withdrawn under its offer in the same manner, at the same
time and otherwise in compliance with the requirements for an offer made by the Company as set forth above.

 

Section 15.03. Withdrawal of Fundamental
Change Repurchase Notice. (a) A Fundamental Change Repurchase Notice may be withdrawn (in whole or in part) in respect of Physical
Notes by means of a written notice of withdrawal received by the Paying Agent in accordance with this Section 15.03 at any time
prior to the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date, specifying:

 

(i)           
the principal amount of the Notes with respect to which such notice of withdrawal is being submitted, which must be $1,000
or an integral multiple thereof,

 

(ii)           the certificate number of the Note in respect of which such notice of withdrawal is being submitted, and

 

(iii)         
the principal amount, if any, of such Note that remains subject to the original Fundamental Change Repurchase Notice, which
portion must be in principal amounts of $1,000 or an integral multiple of $1,000;

 

If the Notes are Global Notes, Holders may withdraw their Notes
subject to repurchase at any time prior to the close of business on the Business Day immediately preceding the Fundamental Change
Repurchase Date in accordance with the applicable procedures of the Depositary.

 

    	 	83	 

     

    

 

Section 15.04. Deposit of Fundamental
Change Repurchase Price. (a) The Company will deposit with the Trustee (or other Paying Agent appointed by the Company, or
if the Company is acting as its own Paying Agent, set aside, segregate and hold in trust as provided in Section 4.04) on or prior
to 11:00 a.m., New York City time, on the Fundamental Change Repurchase Date an amount of money sufficient to repurchase all of
the Notes to be repurchased at the appropriate Fundamental Change Repurchase Price. Subject to receipt of funds and/or Notes by
the Trustee (or other Paying Agent appointed by the Company), payment for Notes surrendered for repurchase (and not validly withdrawn
prior to the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date) will be made on
the later of (i) the Fundamental Change Repurchase Date (provided the Holder has satisfied the conditions in Section 15.02)
and (ii) the time of book-entry transfer or the delivery of such Note to the Trustee (or other Paying Agent appointed by the Company)
by the Holder thereof in the manner required by Section 15.02 by mailing checks for the amount payable to the Holders of such Notes
entitled thereto as they shall appear in the Note Register; provided, however, that payments to the Depositary shall
be made by wire transfer of immediately available funds to the account of the Depositary or its nominee. The Trustee shall, promptly
after such payment and upon written demand by the Company, return to the Company any funds in excess of the Fundamental Change
Repurchase Price.

 

(b)           
If by 11:00 a.m. New York City time, on the Fundamental Change Repurchase Date, the Trustee (or other Paying Agent appointed
by the Company) holds money sufficient to pay the Fundamental Change Repurchase Price to be repurchased on such Fundamental Change
Repurchase Date, then, with respect to the Notes that have been properly surrendered for repurchase and have not been validly withdrawn
in accordance with the provisions of this Indenture, (i) such Notes will cease to be outstanding, (ii) interest will cease to accrue
on such Notes on the Fundamental Change Repurchase Date (whether or not book-entry transfer of the Notes has been made or the Notes
have been delivered to the Trustee or Paying Agent) and (iii) all other rights of the Holders with respect to such Notes will terminate
on the Fundamental Change Repurchase Date (other than (x) the right to receive the Fundamental Change Repurchase Price and (y)
if the Fundamental Change Repurchase Date falls after a Regular Record Date but on or prior to the related Interest Payment Date,
the right of the Holder of record on such Regular Record Date to receive the full amount of accrued and unpaid interest to, but
excluding, such Interest Payment Date).

 

(c)           
Upon surrender of a Note that is to be repurchased in part pursuant to Section 15.02, the Company shall execute and the
Trustee shall authenticate and deliver to the Holder a new Note in an authorized denomination equal in principal amount to the
unrepurchased portion of the Note surrendered.

 

Section 15.05. Covenant to Comply with
Applicable Laws Upon Repurchase of Notes. In connection with any repurchase offer upon a Fundamental Change pursuant to this
Article 15, the Company will, if required:

 

(a)           
comply with the tender offer rules under the Exchange Act that may then be applicable;

 

(b)           
file a Schedule TO or any other required schedule under the Exchange Act; and

 

(c)           
otherwise comply in all material respects with all federal and state securities laws in connection with any offer by the
Company to repurchase the Notes;

 

    	 	84	 

     

    

 

in each case, so as to permit the rights and
obligations under this Article 15 to be exercised in the time and in the manner specified in this Article 15. To the extent that
the provisions of any securities laws or regulations conflict with the provisions of this Article 15 relating to the Company’s
obligations to repurchase the Notes upon a Fundamental Change, the Company will comply with the applicable securities laws and
regulations and will not be deemed to have breached its obligations under such provisions of this Article 15 by virtue of such
conflict.

 

Article
16

Optional Redemption

 

Section 16.01. Optional Redemption.
The Notes shall not be redeemable by the Company prior to January 20, 2023. On or after January 20, 2023, the Company may redeem
(an “Optional Redemption”) for cash all or any portion of the Notes, at the Redemption Price, if the Last Reported
Sale Price of the Common Stock has been at least 130% of the Conversion Price then in effect for at least 20 Trading Days (whether
or not consecutive) during any 30 consecutive Trading Day period (including the last Trading Day of such period) ending on, and
including the Trading Day immediately preceding, the date on which the Company provides the Redemption Notice in accordance with
Section 16.02.

 

Section 16.02. Notice of Optional Redemption;
Selection of Notes. (a) In case the Company exercises its Optional Redemption right to redeem all or, as the case may be, any
part of the Notes pursuant to Section 16.01, it shall fix a date for redemption (each, a “Redemption Date”)
and it or, at its written request received by the Trustee not less than 5 Business Days prior to the date such Redemption Notice
is to be sent (or such shorter period of time as may be acceptable to the Trustee), the Trustee, in the name of and at the expense
of the Company, shall deliver or cause to be delivered a notice of such Optional Redemption (a “Redemption Notice”)
not less than 60 nor more than 75 calendar days prior to the Redemption Date to each Holder of Notes so to be redeemed as a whole
or in part; provided, however, that any Redemption Notice Date must be at least one calendar day prior to the first
Scheduled Trading Day of any related Observation Period; provided further that, if the Company shall give such notice, it
shall also give written notice of the Redemption Date to the Trustee, the Conversion Agent (if other than the Trustee) and the
Paying Agent (if other than the Trustee). The Redemption Date must be a Business Day. The Company may not specify a Redemption
Date that falls on or after the 41st Scheduled Trading Day immediately preceding the Maturity Date.

 

(b)           
The Redemption Notice, if delivered in the manner herein provided, shall be conclusively presumed to have been duly given,
whether or not the Holder receives such notice. In any case, failure to give such Redemption Notice or any defect in the Redemption
Notice to the Holder of any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings
for the redemption of any other Note.

 

(c)           
Each Redemption Notice shall specify:

 

(i)           
the Redemption Date;

 

(ii)          
the Redemption Price;

 

    	 	85	 

     

    

 

 

(iii)          
that on the Redemption Date, the Redemption Price will become due and payable upon each Note to be redeemed, and that interest
thereon, if any, shall cease to accrue on and after the Redemption Date;

 

(iv)          
the place or places where such Notes are to be surrendered for payment of the Redemption Price;

 

(v)           
that Holders called (or deemed called) for redemption may surrender their Notes for conversion at any time prior to the
close of business on the Scheduled Trading Day immediately preceding the Redemption Date;

 

(vi)           
the procedures a converting Holder must follow to convert its Notes and the Settlement Method and Specified Dollar Amount,
if applicable;

 

(vii)         
the Conversion Rate and, if applicable, the number of Additional Shares added to the Conversion Rate in accordance with
Section 14.03;

 

(viii)        
the CUSIP, ISIN or other similar numbers, if any, assigned to such Notes; and

 

(ix)           
in case any Note is to be redeemed in part only, the portion of the principal amount thereof to be redeemed and on and after
the Redemption Date, upon surrender of such Note, a new Note in principal amount equal to the unredeemed portion thereof shall
be issued, which principal amount must be $1,000 or an integral multiple thereof.

 

A Redemption Notice shall be irrevocable.
An Optional Redemption may not be conditional.

 

(d)           
If fewer than all of the outstanding Notes are to be redeemed, the Notes to be redeemed will be selected according to the
Depositary’s applicable procedures, in the case of Notes represented by a Global Note, or, in the case of Notes represented
by Physical Notes, by lot on a pro rata basis or by another method the Trustee deems to be appropriate and fair. If any Note selected
for partial redemption is submitted for conversion in part after such selection, the portion of the Note submitted for conversion
shall be deemed (so far as may be possible) to be the portion selected for redemption.

 

Section 16.03. Payment of Notes Called
for Redemption. (a) If any Redemption Notice has been given in respect of the Notes in accordance with Section 16.02, the Notes
shall become due and payable on the Redemption Date at the place or places stated in the Redemption Notice and at the applicable
Redemption Price. On presentation and surrender of the Notes at the place or places stated in the Redemption Notice, the Notes
shall be paid and redeemed by the Company at the applicable Redemption Price.

 

(b)           
Prior to 11:00 a.m. New York City time on the Redemption Date, the Company shall deposit with the Paying Agent or, if the
Company or a Subsidiary of the Company is acting as the Paying Agent, shall segregate and hold in trust as provided in Section
7.05 an amount of cash (in immediately available funds if deposited on the Redemption Date), sufficient to pay the Redemption Price
of all of the Notes to be redeemed on such Redemption Date. Subject to receipt of funds by the Paying Agent, payment for the Notes
to be redeemed shall be made on the Redemption Date for such Notes. The Paying Agent shall, promptly after such payment and upon
written demand by the Company, return to the Company any funds in excess of the Redemption Price.

 

    	 	86	 

     

    

 

Section 16.04. Restrictions on Redemption.
The Company may not redeem any Notes on any date if the principal amount of the Notes has been accelerated in accordance with the
terms of this Indenture, and such acceleration has not been rescinded, on or prior to the Redemption Date (except in the case of
an acceleration resulting from a Default by the Company in the payment of the Redemption Price with respect to such Notes).

 

Article
17

Miscellaneous Provisions

 

Section 17.01. Provisions Binding on
Company’s Successors. All the covenants, stipulations, promises and agreements of the Company contained in this Indenture
shall bind its successors and assigns whether so expressed or not.

 

Section 17.02. Official Acts by Successor
Corporation. Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any
board, committee or Officer of the Company shall and may be done and performed with like force and effect by the like board, committee
or officer of any corporation or other entity that shall at the time be the lawful sole successor of the Company.

 

Section 17.03. Addresses for Notices,
Etc. Any notice or demand that by any provision of this Indenture is required or permitted to be given or served by the Trustee
or by the Holders on the Company shall be deemed to have been sufficiently given or made, for all purposes if given or served
by being deposited postage prepaid by registered or certified mail in a post office letter box addressed (until another address
is filed by the Company with the Trustee) to MongoDB, Inc., Andrew Stephens, Attention: General Counsel. Any notice, direction,
request or demand hereunder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes,
if given or served by being deposited postage prepaid by registered or certified mail in a post office letter box addressed to
the Corporate Trust Office or sent electronically in PDF format.

 

The Trustee, by notice to the Company, may
designate additional or different addresses for subsequent notices or communications.

 

Any notice or communication delivered or
to be delivered to a Holder of Physical Notes shall be mailed to it by first class mail, postage prepaid, at its address as it
appears on the Note Register and shall be sufficiently given to it if so mailed within the time prescribed. Any notice or communication
delivered or to be delivered to a Holder of Global Notes shall be delivered in accordance with the applicable procedures of the
Depositary and shall be sufficiently given to it if so delivered within the time prescribed. Notwithstanding any other provision
of this Indenture or any Note, where this Indenture or any Note provides for notice of any event (including any Fundamental Change
Company Notice) to a Holder of a Global Note (whether by mail or otherwise), such notice shall be sufficiently given if given to
the Depositary (or its designee) pursuant to the standing instructions from the Depositary or its designee, including by electronic
mail in accordance with the Depositary’s applicable procedures.

 

    	 	87	 

     

    

 

Failure to mail or deliver a notice or communication
to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. If a notice or communication is
mailed or delivered, as the case may be, in the manner provided above, it is duly given, whether or not the addressee receives
it.

 

In case by reason of the suspension of regular
mail service or by reason of any other cause it shall be impracticable to give such notice to Holders by mail, then such notification
as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

 

Section 17.04. Governing Law; Jurisdiction.
THIS INDENTURE AND EACH NOTE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS INDENTURE AND EACH NOTE, SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

The Company irrevocably consents and agrees,
for the benefit of the Holders from time to time of the Notes and the Trustee, that any legal action, suit or proceeding against
it with respect to obligations, liabilities or any other matter arising out of or in connection with this Indenture or the Notes
may be brought in the courts of the State of New York or the courts of the United States located in the Borough of Manhattan, New
York City, New York and, until amounts due and to become due in respect of the Notes have been paid, hereby irrevocably consents
and submits to the non-exclusive jurisdiction of each such court in personam, generally and unconditionally with respect
to any action, suit or proceeding for itself in respect of its properties, assets and revenues.

 

The Company irrevocably and unconditionally
waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venue of any
of the aforesaid actions, suits or proceedings arising out of or in connection with this Indenture brought in the courts of the
State of New York or the courts of the United States located in the Borough of Manhattan, New York City, New York and hereby further
irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding
brought in any such court has been brought in an inconvenient forum.

 

Section 17.05. Evidence of Compliance
with Conditions Precedent; Certificates and Opinions of Counsel to Trustee. Upon any application or demand by the Company to
the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish to the Trustee an Officer’s
Certificate and, if requested by the Trustee, an Opinion of Counsel stating that such action is permitted by the terms of this
Indenture; provided that no Opinion of Counsel shall be required to be delivered in connection with (1) the original issuance
of Notes on the date hereof under this Indenture and (2) the removal of the restricted CUSIP of the Restricted Securities to an
unrestricted CUSIP pursuant to the applicable procedures of the Depositary upon the Notes becoming freely tradable by non-Affiliates
of the Company under Rule 144, unless a new Note is to be issued; provided further that no Opinion of Counsel shall be required
to be delivered in connection with a request by the Company that the Trustee deliver a notice to Holders under the Indenture where
the Trustee receives an Officer’s Certificate with respect to such notice. With respect to matters of fact, an Opinion of
Counsel may rely on an Officer’s Certificate or certificates of public officials.

 

    	 	88	 

     

    

 

Each Officer’s Certificate and Opinion
of Counsel provided for, by or on behalf of the Company in this Indenture and delivered to the Trustee with respect to compliance
with this Indenture (other than the Officer’s Certificates provided for in Section 4.08) shall include (a) a statement that
the person signing such certificate is familiar with the requested action and this Indenture; (b) a brief statement as to the nature
and scope of the examination or investigation upon which the statement contained in such certificate is based; (c) a statement
that, in the judgment of such person, he or she has made such examination or investigation as is necessary to enable him or her
to express an informed judgment as to whether or not such action is permitted by this Indenture; and (d) a statement as to whether
or not, in the judgment of such person, such action is permitted by this Indenture and that all conditions precedent thereto have
been complied with.

 

Notwithstanding anything to the contrary
in this Section 17.05, if any provision in this Indenture specifically provides that the Trustee shall or may receive an Opinion
of Counsel in connection with any action to be taken by the Trustee or the Company hereunder, the Trustee shall be entitled to
such Opinion of Counsel.

 

Section 17.06. Legal Holidays. In
any case where any Interest Payment Date, Fundamental Change Repurchase Date or Maturity Date is not a Business Day, then any action
to be taken on such date need not be taken on such date, but may be taken on the next succeeding Business Day with the same force
and effect as if taken on such date, and no interest shall accrue in respect of the delay.

 

Section 17.07. No Security Interest Created.
Nothing in this Indenture or in the Notes, expressed or implied, shall be construed to constitute a security interest under the
Uniform Commercial Code or similar legislation, as now or hereafter enacted and in effect, in any jurisdiction.

 

Section 17.08. Benefits of Indenture.
Nothing in this Indenture or in the Notes, expressed or implied, shall give to any Person, other than the Holders, the parties
hereto, any Paying Agent, any Conversion Agent, any authenticating agent, any Note Registrar and their successors hereunder, any
benefit or any legal or equitable right, remedy or claim under this Indenture.

 

Section 17.09. Table of Contents, Headings,
Etc. The table of contents and the titles and headings of the articles and sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms
or provisions hereof.

    	 	89	 

     

    

 

Section 17.10. Authenticating Agent.
The Trustee may appoint an authenticating agent that shall be authorized to act on its behalf and subject to its direction in the
authentication and delivery of Notes in connection with the original issuance thereof and transfers and exchanges of Notes hereunder,
including under Section 2.04, Section 2.05, Section 2.06, Section 2.07, Section 10.04 and Section 15.04 as fully to all intents
and purposes as though the authenticating agent had been expressly authorized by this Indenture and those Sections to authenticate
and deliver Notes. For all purposes of this Indenture, the authentication and delivery of Notes by the authenticating agent shall
be deemed to be authentication and delivery of such Notes “by the Trustee” and a certificate of authentication executed
on behalf of the Trustee by an authenticating agent shall be deemed to satisfy any requirement hereunder or in the Notes for the
Trustee’s certificate of authentication. Such authenticating agent shall at all times be a Person eligible to serve as trustee
hereunder pursuant to Section 7.08.

 

Any corporation or other entity into which
any authenticating agent may be merged or converted or with which it may be consolidated, or any corporation or other entity resulting
from any merger, consolidation or conversion to which any authenticating agent shall be a party, or any corporation or other entity
succeeding to the corporate trust business of any authenticating agent, shall be the successor of the authenticating agent hereunder,
if such successor corporation or other entity is otherwise eligible under this Section 17.10, without the execution or filing of
any paper or any further act on the part of the parties hereto or the authenticating agent or such successor corporation or other
entity.

 

Any authenticating agent may at any time
resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time terminate the agency
of any authenticating agent by giving written notice of termination to such authenticating agent and to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time any authenticating agent shall cease to be eligible
under this Section, the Trustee may appoint a successor authenticating agent (which may be the Trustee), shall give written notice
of such appointment to the Company and shall deliver notice of such appointment to all Holders.

 

The Company agrees to pay to the authenticating
agent from time to time reasonable compensation for its services although the Company may terminate the authenticating agent, if
it determines such agent’s fees to be unreasonable.

 

The provisions of Section 7.02, Section
7.03, Section 7.04, Section 8.03 and this Section 17.10 shall be applicable to any authenticating agent.

 

If an authenticating agent is appointed
pursuant to this Section 17.10, the Notes may have endorsed thereon, in addition to the Trustee’s certificate of authentication,
an alternative certificate of authentication in the following form:

 

__________________________,

as Authenticating Agent, certifies that this is one of the Notes described

in the within-named Indenture.

 

	By:   	                                            	 
	Authorized Signatory

 

    	 	90	 

     

    

 

Section 17.11. Execution in Counterparts.
This Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together
constitute but one and the same instrument. The exchange of copies of this Indenture and of signature pages by facsimile, PDF or
other electronic transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and
may be used in lieu of the original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile, PDF
or other electronic transmission shall constitute effective execution and delivery of this Indenture as to the other parties hereto
shall be deemed to be their original signatures for all purposes.

 

Section 17.12. Severability. In the
event any provision of this Indenture or in the Notes shall be invalid, illegal or unenforceable, then (to the extent permitted
by law) the validity, legality or enforceability of the remaining provisions shall not in any way be affected or impaired.

 

Section 17.13. Waiver of Jury Trial.
EACH OF THE COMPANY AND THE TRUSTEE HEREBY 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 THIS INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

Section 17.14. Force Majeure. In
no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising
out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages,
accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions,
loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee
shall use reasonable efforts that are consistent with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.

 

Section 17.15. Calculations. Except
as otherwise provided herein, the Company shall be responsible for making all calculations called for under the Notes. These calculations
include, but are not limited to, determinations of the Stock Price, the Last Reported Sale Prices of the Common Stock, the Trading
Prices of the Notes (for purposes of Section 14.01(b)(i)) the Daily VWAPs, the Daily Conversion Values, the Daily Settlement Amounts,
accrued interest payable on the Notes and the Conversion Rate of the Notes. The Company shall make all these calculations in good
faith and, absent manifest error, the Company’s calculations shall be final and binding on Holders. The Company shall provide
a schedule of its calculations to each of the Trustee and the Conversion Agent, and each of the Trustee and Conversion Agent is
entitled to rely conclusively upon the accuracy of the Company’s calculations without independent verification. The Trustee
will forward the Company’s calculations to any Holder of Notes upon the written request of that Holder at the sole cost and
expense of the Company.

 

    	 	91	 

     

    

Section 17.16. U.S.A. PATRIOT Act. The
parties hereto acknowledge that in accordance with Section 326 of the U.S.A. PATRIOT Act, the Trustee, like all financial institutions
and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information
that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee. The parties to
this Indenture agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy
the requirements of the U.S.A. Patriot Act.

 

[Remainder of page
intentionally left blank]

 

    	 	92	 

     

    

 

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

 

	 	MONGODB, INC.
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Michael Gordon
	 	 	Name:	Michael Gordon
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Richard Prokosch
	 	 	Name:	Richard Prokosch
	 	 	Title:	Vice President

 

     

     

    

 

EXHIBIT A

 

[FORM OF FACE OF NOTE]

 

[INCLUDE FOLLOWING LEGEND
IF A GLOBAL NOTE]

 

[UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREUNDER IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.]

 

[INCLUDE FOLLOWING LEGEND
IF A RESTRICTED SECURITY]

 

[THIS SECURITY AND
THE COMMON STOCK, IF ANY, ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE
WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER:

 

(1) REPRESENTS
THAT IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A
UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND

 

(2) AGREES
FOR THE BENEFIT OF MONGODB, INC. (THE “COMPANY”) THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY
OR ANY BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL ISSUE DATE HEREOF
OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THERETO AND (Y) SUCH
LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW, EXCEPT:

 

(A) TO THE
COMPANY OR ANY SUBSIDIARY THEREOF, OR

 

(B) PURSUANT
TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, OR

 

    	 	A-1	 

     

    

 

(C)
TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, OR

 

(D) PURSUANT
TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.

 

PRIOR TO THE REGISTRATION
OF ANY TRANSFER IN ACCORDANCE WITH CLAUSE (2)(D) ABOVE, THE COMPANY AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF
SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER FOR THE COMPANY TO DETERMINE THAT
THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION
IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.]

 

    	 	A-2	 

     

    

 

MongoDB, Inc.

0.25% Convertible Senior Note due 2026

 

	No. RA-[●]	 	 	Initially $[●]                              	 

 

CUSIP No. 60937P AC02

 

MongoDB, Inc., a corporation duly organized
and validly existing under the laws of the State of Delaware (the “Company,” which term includes any successor
corporation or other entity under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to
CEDE & CO., or registered assigns, the principal sum as set forth in the “Schedule of Exchanges of Notes” attached
hereto, which amount, taken together with the principal amounts of all other outstanding Notes, shall not, unless permitted by
the Indenture, exceed $1,150,000,000 in aggregate at any time, in accordance with the rules and procedures of the Depositary, on
January 15, 2026, and interest thereon as set forth below.

 

This Note shall bear interest at the rate
of 0.25% per year from January 14, 2020, or from the most recent date to which interest has been paid or provided for to, but excluding,
the next scheduled Interest Payment Date until January 15, 2026. Accrued interest on this Note shall be computed on the basis of
a 360-day year composed of twelve 30-day months and, for partial months, on the basis of the number of days actually elapsed in
a 30-day month. Interest is payable semi-annually in arrears on each January 15 and July 15, commencing on July 15, 2020,
to Holders of record at the close of business on the preceding January 1 and July 1 (whether or not such day is a Business Day),
respectively. Additional Interest will be payable as set forth in Section 4.06(d), Section 4.06(e) and Section 6.03 of the within-mentioned
Indenture, and any reference to interest on, or in respect of, any Note therein shall be deemed to include Additional Interest
if, in such context, Additional Interest is, was or would be payable pursuant to any of such Section 4.06(d), Section 4.06(e) or
Section 6.03, and any express mention of the payment of Additional Interest in any provision therein shall not be construed as
excluding Additional Interest in those provisions thereof where such express mention is not made.

 

Any Defaulted Amounts shall accrue interest
per annum at the rate borne by the Notes, from, and including, the relevant payment date to, but excluding, the date on which such
Defaulted Amounts shall have been paid by the Company, at its election, in accordance with Section 2.03(c) of the Indenture.

 

The Company shall pay the principal of and
interest on this Note, if and so long as such Note is a Global Note, in immediately available funds in lawful money of the United
States at the time to the Depositary or its nominee, as the case may be, as the registered Holder of such Note. As provided in
and subject to the provisions of the Indenture, the Company shall pay the principal of any Notes (other than Notes that are Global
Notes) at the office or agency designated by the Company for that purpose. The Company has initially designated the Trustee as
its Paying Agent and Note Registrar in respect of the Notes and its agency in the United States of America, as a place where Notes
may be presented for payment or for registration of transfer and exchange.

 

 

2 This Note will be deemed
to be identified by CUSIP No. 60937P AD8 from and after such time when the Company delivers, pursuant to Section 2.05(c) of the
within-mentioned Indenture, written notice to the Trustee of the occurrence of the Resale Restriction Termination Date and the
removal of the restrictive legend affixed to this Note in accordance with the applicable procedures of the Depositary.

 

    	 	A-3	 

     

    

 

Reference is made to the further provisions
of this Note set forth on the reverse hereof, including, without limitation, provisions giving the Holder of this Note the right
to convert this Note into cash, shares of Common Stock or a combination of cash and shares of Common Stock, as applicable, on the
terms and subject to the limitations set forth in the Indenture. Such further provisions shall for all purposes have the same effect
as though fully set forth at this place.

 

This Note, and any claim, controversy
or dispute arising under or related to this Note, shall be construed in accordance with and governed by the laws of the State of
New York.

 

In the case of any conflict between this
Note and the Indenture, the provisions of the Indenture shall control and govern.

 

This Note shall not be valid or become obligatory
for any purpose until the certificate of authentication hereon shall have been signed manually by the Trustee or a duly authorized
authenticating agent under the Indenture.

 

[Remainder of page intentionally left
blank]

 

    	 	A-4	 

     

    

 

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

  

	 	MONGODB, INC.
	 	 
	 	By:	      
	 	 	Name:
	 	 	Title:

  

Dated:

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

U.S. BANK NATIONAL ASSOCIATION

as Trustee, certifies that this is one of the Notes described

in the within-named Indenture.

 

	By:   	                                            	 
	 	Authorized Signatory

 

     

    

 

[FORM OF REVERSE OF NOTE]

 

MongoDB, Inc.

0.25% Convertible Senior Note due 2026

 

This Note is one of a duly authorized issue
of Notes of the Company, designated as its 0.25% Convertible Senior Notes due 2026 (the “Notes”), initially
limited to the aggregate principal amount of $1,150,000,000 all issued or to be issued under and pursuant to an Indenture dated
as of January 14, 2020 (the “Indenture”), between the Company and U.S. Bank National Association (the “Trustee”),
to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations
of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders of the Notes. Additional Notes
may be issued in an unlimited aggregate principal amount, subject to certain conditions specified in the Indenture. Capitalized
terms used in this Note and not defined in this Note shall have the respective meanings set forth in the Indenture.

 

In case certain Events of Default shall
have occurred and be continuing, the principal of, and interest on, all Notes may be declared, by either the Trustee or Holders
of at least 25% in aggregate principal amount of Notes then outstanding, and upon said declaration shall become, due and payable,
in the manner, with the effect and subject to the conditions and certain exceptions set forth in the Indenture.

 

Subject to the terms and conditions of the
Indenture, the Company will make all payments and deliveries in respect of the Fundamental Change Repurchase Price on the Fundamental
Change Repurchase Date and the principal amount on the Maturity Date, as the case may be, to the Holder who surrenders a Note to
a Paying Agent to collect such payments in respect of the Note. The Company will pay cash amounts in money of the United States
that at the time of payment is legal tender for payment of public and private debts.

 

The Indenture contains provisions permitting
the Company and the Trustee in certain circumstances, without the consent of the Holders of the Notes, and in certain other circumstances,
with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding,
evidenced as in the Indenture provided, to execute supplemental indentures modifying the terms of the Indenture and the Notes as
described therein. It is also provided in the Indenture that, subject to certain exceptions, the Holders of a majority in aggregate
principal amount of the Notes at the time outstanding may on behalf of the Holders of all of the Notes waive any past Default or
Event of Default under the Indenture and its consequences.

 

No reference herein to the Indenture and
no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional,
to pay or deliver, as the case may be, the principal (including the Redemption Price, the Fundamental Change Repurchase Price,
if applicable) of, accrued and unpaid interest on, and the consideration due upon conversion of, this Note at the place, at the
respective times, at the rate and in the lawful money herein prescribed.

 

    R-1

     

    

 

The Notes are issuable in registered form
without coupons in minimum denominations of $1,000 principal amount and integral multiples thereof. At the office or agency of
the Company referred to on the face hereof, and in the manner and subject to the limitations provided in the Indenture, Notes may
be exchanged for a like aggregate principal amount of Notes of other authorized denominations, without payment of any service charge
but, if required by the Company or Trustee, with payment of a sum sufficient to cover any transfer or similar tax that may be imposed
in connection therewith as a result of the name of the Holder of the new Notes issued upon such exchange of Notes being different
from the name of the Holder of the old Notes surrendered for such exchange.

 

The Notes shall be redeemable at the Company’s
option on or after January 20, 2023, in accordance with the terms and subject to the conditions specified in the Indenture. No
sinking fund is provided for the Notes.

 

Upon the occurrence of a Fundamental Change,
the Holder has the right, at such Holder’s option, to require the Company to repurchase for cash all of such Holder’s
Notes or any portion thereof (in principal amounts of $1,000 or integral multiples thereof) on the Fundamental Change Repurchase
Date at a price equal to the Fundamental Change Repurchase Price.

 

Subject to the provisions of the Indenture,
the Holder hereof has the right, at its option, during certain periods and upon the occurrence of certain conditions specified
in the Indenture, prior to the close of business on the Scheduled Trading Day immediately preceding the Maturity Date, to convert
any Notes or portion thereof that is $1,000 or an integral multiple thereof, into cash, shares of Common Stock or a combination
of cash and shares of Common Stock, as applicable, at the Conversion Rate specified in the Indenture, as adjusted from time to
time as provided in the Indenture.

 

Terms used in this Note and defined in the
Indenture are used herein as therein defined.

 

    R-2

     

    

 

ABBREVIATIONS

 

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

 

TEN COM = as tenants in common

 

UNIF GIFT MIN ACT = Uniform Gifts to Minors Act

 

CUST = Custodian

 

TEN ENT = as tenants by the entireties

JT TEN = joint tenants with right of survivorship and not as tenants in common 

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

 

    R-3

     

    

 

SCHEDULE A

 

SCHEDULE OF EXCHANGES OF NOTES

MongoDB, Inc.

0.25% Convertible Senior Notes due 2026

 

The initial principal amount of this Global
Note is [●] DOLLARS ($[●]). The following increases or decreases in this Global Note have been made:

 

	
        Date
of exchange 
	 	
        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

 signatory of 

Trustee or

        Custodian 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

    R-4

     

    

 

ATTACHMENT 1

 

[FORM OF NOTICE OF CONVERSION]

 

To: MongoDB, Inc.

 

To: U.S. Bank National Association

60 Livingston Avenue

Saint Paul, MN 55107

Attn: Corporate Trust Services (MongoDB, Inc.)

 

The undersigned registered owner of this
Note hereby exercises the option to convert this Note, or the portion hereof (that is $1,000 principal amount or an integral multiple
thereof) below designated, into cash, shares of Common Stock or a combination of cash and shares of Common Stock, as applicable,
in accordance with the terms of the Indenture referred to in this Note, and directs that any cash payable and any shares of Common
Stock issuable and deliverable upon such conversion, together with any cash for any fractional share, and any Notes representing
any unconverted principal amount hereof, be issued and delivered to the registered Holder hereof unless a different name has been
indicated below. If any shares of Common Stock or any portion of this Note not converted are to be issued in the name of a Person
other than the undersigned, the undersigned will pay all documentary, stamp or similar issue or transfer taxes, if any in accordance
with Section 14.02(d) and Section 14.02(e) of the Indenture. Any amount required to be paid to the undersigned on account of interest
accompanies this Note. Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture.

 

	Dated:	     	 	 
	 	 	 
	 	 	 
	 	 	Signature(s)
	 	 	 
	 	 	 
	 	 	 
	Signature Guarantee	 	 
	 	 	 
	
        Signature(s) must be guaranteed by an eligible Guarantor Institution
        (banks, stock brokers, savings and loan associations and credit unions) with membership in an approved signature guarantee medallion
        program pursuant to Securities and Exchange Commission Rule 17Ad-15 if shares of Common Stock are to be issued, or Notes are to
        be delivered, other than to and in the name of the registered holder.

         

        Fill in for registration of shares if to be issued, and Notes
        if to be delivered, other than to and in the name of the registered holder:
	 	 

 

    1

     

    

 

	 	 	 
	(Name)	 	 
	 	 	 
	 	 	 
	(Street Address)	 	 
	 	 	 
	 	 	 
	(City, State and Zip Code)	 	 
	Please print name and address	 	 
	 	 	 
	 	 	Principal amount to be converted (if less than all): $______,000
	 	 	 
	 	 	NOTICE: The above signature(s) of the Holder(s) hereof must correspond with the name as written upon the face of the Note in every particular without alteration or enlargement or any change whatever.
	 	 	 
	 	 	 
	 	 	Social Security or Other Taxpayer
	 	 	Identification Number

 

    2

     

    

 

ATTACHMENT 2

 

[FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE]

 

To: MongoDB, Inc.

 

To: U.S. Bank National Association

60 Livingston Avenue

Saint Paul, MN 55107

Attn: Corporate Trust Services (MongoDB, Inc.)

 

The undersigned registered owner of this
Note hereby acknowledges receipt of a notice from MongoDB, Inc. (the “Company”), as to the occurrence of a Fundamental
Change with respect to the Company and specifying the Fundamental Change Repurchase Date and requests and instructs the Company
to pay to the registered holder hereof in accordance with Section 15.02 of the Indenture referred to in this Note (1) the entire
principal amount of this Note, or the portion thereof (that is $1,000 principal amount or an integral multiple thereof) below designated,
and (2) if such Fundamental Change Repurchase Date does not fall during the period after a Regular Record Date and on or prior
to the Business Day immediately succeeding corresponding Interest Payment Date, accrued and unpaid interest, if any, thereon to,
but excluding, such Fundamental Change Repurchase Date. Capitalized terms used herein but not defined shall have the meanings ascribed
to such terms in the Indenture.

 

In the case of Physical Notes, the certificate
numbers of the Notes to be repurchased are as set forth below:

 

	Dated:	 	 	 
	 	 	 
	 	 	 
	 	 	Signature(s)
	 	 	 
	 	 	 
	 	 	 
	 	 	Social Security or Other Taxpayer
	 	 	Identification Number
	 	 	 
	 	 	Principal amount to be repurchased (if less than all): $______,000
	 	 	 
	 	 	NOTICE: The above signature(s) of the Holder(s) hereof must correspond with the name as written upon the face of the Note in every particular without alteration or enlargement or any change whatever.

 

    1

     

    

  

ATTACHMENT 3

 

[FORM OF ASSIGNMENT AND TRANSFER]

 

U.S. Bank National Association

60 Livingston Avenue

Saint Paul, MN 55107

Attn: Corporate Trust Services (MongoDB, Inc.)

 

For value received ____________________________ hereby sell(s),
assign(s) and transfer(s) unto _________________ (Please insert social security or Taxpayer Identification Number of assignee)
the within Note, and hereby irrevocably constitutes and appoints _____________________ attorney to transfer the said Note on the
books of the Company, with full power of substitution in the premises.

 

In connection with any transfer of the within Note occurring
prior to the Resale Restriction Termination Date, as defined in the Indenture governing such Note, the undersigned confirms that
such Note is being transferred:

 

 ̈       To MongoDB, Inc., or a subsidiary thereof; or

 

 ̈       Pursuant
to a registration statement that has become or been declared effective under the Securities Act of 1933, as amended; or

 

 ̈       Pursuant to and in compliance with Rule 144A under the
Securities Act of 1933, as amended; or

 

 ̈       Pursuant to and in compliance with Rule 144 under the Securities
Act of 1933, as amended, or any other available exemption from the registration requirements of the Securities Act of 1933, as
amended.

 

    1

     

    

 

	Dated: 	     	 
	 	 
	 	 
	 	 
	 	 
	Signature(s)	 
	 	 
	 	 
	Signature Guarantee	 
	 	 
	
        Signature(s) must be guaranteed by an eligible
        Guarantor Institution (banks, stock brokers, savings and loan associations and credit unions) with membership in an approved
        signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15 if Notes are to be
        delivered, other than to and in the name of the registered holder.
	 

 

NOTICE: The signature on the assignment must correspond with
the name as written upon the face of the Note in every particular without alteration or enlargement or any change whatever.

 

    2ex_169495.htm

Exhibit 10.1

 

EXECUTION VERSION

 

 

 

 

 

 

EQUITY PURCHASE AGREEMENT

 

by and among

 

Incentive Technology Group, LLC,

 

a Virginia limited liability company,

 

PROJECT LUCKY HOLDINGS, LLC,

 

a Delaware limited liability company,

 

Shadi Michelle Branch,

 

Adam Branch,

 

and 

 

ICF InCORPORATED, L.L.C.,

 

a Delaware limited liability company

 

 

 

 

 

Dated: January 13, 2020

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

Page

 

	1.	
			PURCHASE PRICE; CLOSING

				
			2

			
	 	
			1.1

				
			Purchase and Sale of Interests; Payment of Closing Purchase Price

				
			2

			
	 	
			1.2

				
			Flow of Funds Memorandum

				
			3

			
	 	
			1.3

				
			Purchase Price Adjustment

				
			3

			
	 	
			1.4

				
			Form of Payments

				
			7

			
	 	
			1.5

				
			Closing

				
			8

			
	 	
			1.6

				
			Withholding Taxes

				
			8

			
	 	 	 	 
	2.	
			REPRESENTATIONS AND WARRANTIES OF THE SELLERS

				
			8

			
	 	
			2.1

				
			Organization

				
			8

			
	 	
			2.2

				
			Necessary Authority

				
			9

			
	 	
			2.3

				
			Title to the Interests

				
			9

			
	 	
			2.4

				
			No Conflicts

				
			9

			
	 	
			2.5

				
			Brokers

				
			9

			
	 	
			2.6

				
			Full Disclosure

				
			9

			
	 	
			2.7

				
			No Other Representations and Warranties

				
			10

			
	 	 	 	 
	3.	
			REPRESENTATIONS AND WARRANTIES OF THE COMPANY

				
			10

			
	 	
			3.1

				
			Organization

				
			10

			
	 	
			3.2

				
			Authorization; Corporate Documentation

				
			10

			
	 	
			3.3

				
			Title; Capitalization

				
			10

			
	 	
			3.4

				
			Binding Agreement

				
			11

			
	 	
			3.5

				
			No Breach

				
			11

			
	 	
			3.6

				
			Permits

				
			11

			
	 	
			3.7

				
			Compliance With Laws

				
			11

			
	 	
			3.8

				
			Title to Assets

				
			12

			
	 	
			3.9

				
			Condition of Personal Property

				
			12

			
	 	
			3.10

				
			Accounts Receivable

				
			12

			
	 	
			3.11

				
			Intellectual Property

				
			12

			
	 	
			3.12

				
			Contracts

				
			14

			
	 	
			3.13

				
			Litigation

				
			15

			
	 	
			3.14

				
			Financial Statements

				
			15

			
	 	
			3.15

				
			Liabilities

				
			15

			
	 	
			3.16

				
			Taxes

				
			16

			
	 	
			3.17

				
			Employee Benefit Plans; ERISA

				
			17

			
	 	
			3.18

				
			Insurance

				
			18

			
	 	
			3.19

				
			Environmental Matters

				
			18

			
	 	
			3.20

				
			Real Estate

				
			19

			
	 	
			3.21

				
			No Other Agreement To Sell

				
			19

			
	 	
			3.22

				
			Transactions with Certain Persons

				
			20

			
	 	
			3.23

				
			Employees

				
			20

			
	 	
			3.24

				
			Labor Relations

				
			20

			
	 	
			3.25

				
			Brokers

				
			20

			
	 	
			3.26

				
			Privacy and Security

				
			21

			

 

i

 

 

	 	
			3.27

				
			Government Contracts

				
			21

			
	 	
			3.28

				
			Customers and Suppliers

				
			26

			
	 	
			3.29

				
			Bank Accounts

				
			26

			
	 	
			3.30

				
			Events Subsequent

				
			26

			
	 	
			3.31

				
			Full Disclosure

				
			27

			
	 	
			3.32

				
			No Other Representations and Warranties

				
			27

			
	 	 	 	 
	4.	
			REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

				
			27

			
	 	
			4.1

				
			Organization

				
			27

			
	 	
			4.2

				
			Necessary Authority

				
			27

			
	 	
			4.3

				
			No Conflicts

				
			28

			
	 	
			4.4

				
			Brokers

				
			28

			
	 	
			4.5

				
			Litigation; Compliance with Law

				
			28

			
	 	
			4.6

				
			Solvency; Ability to Perform Agreement

				
			28

			
	 	
			4.7

				
			No Foreign Ownership

				
			28

			
	 	
			4.8

				
			Investment Intent

				
			28

			
	 	
			4.9

				
			No Other Representations and Warranties

				
			29

			
	 	 	 	 
	5.	
			COVENANTS OF THE PARTIES

				
			29

			
	 	
			5.1

				
			Affirmative Covenants of the Company

				
			29

			
	 	
			5.2

				
			Negative Covenants of the Company Parties

				
			29

			
	 	
			5.3

				
			Copy of Virtual Data Room and Electronic Files

				
			31

			
	 	
			5.4

				
			Access

				
			31

			
	 	
			5.5

				
			No Negotiations

				
			31

			
	 	
			5.6

				
			Mutual Covenants Regarding Confidentiality

				
			32

			
	 	
			5.7

				
			Mutual Covenants Regarding No Inconsistent Action

				
			32

			
	 	
			5.8

				
			Post-Closing Employee Benefits and Business

				
			32

			
	 	
			5.9

				
			Mutual Covenants Regarding Further Action; Efforts

				
			33

			
	 	
			5.10

				
			Tail Policy

				
			34

			
	 	
			5.11

				
			Closing Date Actions

				
			35

			
	 	
			5.12

				
			Purchaser’s Acknowledgment

				
			35

			
	 	
			5.13

				
			Restrictive Covenants

				
			36

			
	 	
			5.14

				
			Seller Release

				
			37

			
	 	
			5.15

				
			Retention and Access to Records

				
			38

			
	 	
			5.16

				
			R&W Insurance Policy

				
			38

			
	 	
			5.17

				
			Presidential Tower Lease

				
			38

			
	 	
			5.18

				
			401(k) Plan Termination

				
			38

			
	 	
			5.19

				
			Incurred Cost Submissions

				
			39

			
	 	
			5.20

				
			Cooperation with Financials

				
			39

			
	 	
			5.21

				
			Payroll

				
			40

			
	 	
			5.22

				
			Retention Incentive Awards

				
			40

			
	 	
			5.23

				
			Other Key Employee Employment Documentation

				
			40

			
	 	 	 	 
	6.	
			CLOSING CONDITIONS

				
			40

			
	 	
			6.1

				
			Conditions to Purchaser’s Obligations

				
			40

			
	 	
			6.2

				
			Conditions to the Company’s and the Sellers’ Obligations

				
			42

			
	 	
			6.3

				
			Frustration of Closing Conditions

				
			42

			

 

ii

 

 

	7.	
			CLOSING DELIVERABLES

				
			42

			
	 	
			7.1

				
			Closing Documents to be Delivered by the Company and the Seller

				
			42

			
	 	
			7.2

				
			Closing Documents to be Delivered by the Purchaser

				
			44

			
	 	
			7.3

				
			Other Closing Documents

				
			44

			
	 	
			7.4

				
			R&W Insurance Policy

				
			44

			
	 	 	 	 
	8.	
			TERMINATION

				
			44

			
	 	
			8.1

				
			Termination

				
			44

			
	 	
			8.2

				
			Effect of Termination

				
			45

			
	 	 	 	 
	9.	
			REMEDIES

				
			46

			
	 	
			9.1

				
			Survival

				
			46

			
	 	
			9.2

				
			Sellers’ Indemnification Obligations

				
			47

			
	 	
			9.3

				
			Limitation on Sellers’ Indemnification Obligations

				
			48

			
	 	
			9.4

				
			Purchaser’s Indemnification Obligations

				
			48

			
	 	
			9.5

				
			Limitation on Purchaser’s Indemnification Obligations

				
			49

			
	 	
			9.6

				
			Notice and Procedure

				
			49

			
	 	
			9.7

				
			Duty to Mitigate

				
			51

			
	 	
			9.8

				
			No Duplicate Recovery

				
			51

			
	 	
			9.9

				
			Time of Payment of Claims

				
			51

			
	 	
			9.10

				
			Sole Remedy After Closing

				
			51

			
	 	
			9.11

				
			No Right of Contribution

				
			52

			
	 	
			9.12

				
			Indemnity Escrow Account

				
			52

			
	 	 	 	 
	10.	
			POST CLOSING MATTERS

				
			52

			
	 	
			10.1

				
			Cooperation

				
			52

			
	 	
			10.2

				
			Litigation Support

				
			52

			
	 	
			10.3

				
			Tax Matters

				
			52

			
	 	 	 	 
	11.	
			SPECIFIC PERFORMANCE

				
			55

			
	 	 	 
	12.	
			PUBLIC STATEMENTS

				
			56

			
	 	 	 
	13.	
			EXPENSES

				
			56

			
	 	 	 
	14.	
			AMENDMENT AND ASSIGNABILITY

				
			56

			
	 	 	 
	15.	
			NOTICES

				
			56

			
	 	 	 
	16.	
			WAIVER

				
			58

			
	 	 	 
	17.	
			ENTIRE AGREEMENT

				
			58

			
	 	 	 
	18.	
			COUNTERPARTS; ELECTRONIC SIGNATURE

				
			58

			
	 	 	 
	19.	
			SEVERABILITY

				
			58

			
	 	 	 
	20.	
			CHOICE OF LAW

				
			58

			

 

iii

 

 

	21.	
			WAIVER OF JURY TRIAL

				
			58

			
	 	 	 
	22.	
			CONSENT TO JURISDICTION

				
			59

			
	 	 	 
	23.	
			REPRESENTATION BY COUNSEL

				
			59

			
	 	 	 
	24.	
			NO THIRD PARTY BENEFICIARIES

				
			60

			
	 	 	 
	25.	
			EXHIBITS, APPENDICES AND DISCLOSURE SCHEDULE

				
			61

			
	 	 	 
	26.	
			DEFINITIONS; INTERPRETATION

				
			61

			
	 	
			26.1

				
			Definitions

				
			61

			
	 	
			26.2

				
			Certain Interpretive Matters

				
			76

			

 

iv

 

 

EXHIBITS

 

	Exhibit A	Escrow Agreement
	Exhibit B	R&W Insurance Policy
	Exhibit C	Firm Terms of Engagement
	Exhibit D	Assignment of LLC Interests
	Exhibit E	Membership Unit Appreciation Satisfaction and Release Agreement
	Exhibit F	DNT Solutions Operating Agreement Amendment

 

 

 

DISCLOSURE SCHEDULES

 

 

 

	Schedule 2.5	No Conflicts	Schedule 3.17(a)	Benefit Plans
	Schedule 3.1	Company Organization	Schedule 3.17(b)	Multiemployer Plans
	Schedule 3.3(a)	Company Title; Capitalization	Schedule 3.17(c)	280G Payments
	Schedule 3.3(b)	Subsidiaries	Schedule 3.18	Insurance
	Schedule 3.5	No Breach	Schedule 3.19	Environmental Matters
	Schedule 3.6	Permits	Schedule 3.20(a)	Leased Premises
	Schedule 3.7	Compliance with Laws	Schedule 3.22	Transactions with Certain  Persons
	Schedule 3.8	Title to Assets	Schedule 3.23	Employees
	Schedule 3.9	Condition of Personal Property	Schedule 3.24	Labor Matters
	Schedule 3.10	Accounts Receivable	Schedule 3.25	Brokers
	Schedule 3.11(a)	Intellectual Property: Registered IP and IP Licenses	Schedule 3.26	Privacy and Security  
	Schedule 3.11(b)	Intellectual Property: Title	Schedule 3.27(a)	Government Contracts
	Schedule 3.11(c)	Intellectual Property: Infringement	Schedule 3.27(b)	Government Contracts: Small Business Concern
	Schedule 3.11(d)	Intellectual Property: Trade Secrets	Schedule 3.27(e)	Government Contracts: Pending Claims
	Schedule 3.12(a)	Material Contracts	Schedule 3.27(f)	Government Contracts: Status
	Schedule 3.12(b)	Material Contracts: No Breach	Schedule 3.27(n)	Government Contracts: Security Clearance
	Schedule 3.13	Litigation	Schedule 3.27(p)	Government Contracts: IP
	Schedule 3.14	Financial Statements	Schedule 3.27(q)	Government Contracts: CPARS
	Schedule 3.15	Liabilities	Schedule 3.27(r)	Government Contracts: F+O
	Schedule 3.16	Tax Matters	Schedule 3.27(s)	Government Contracts: Proposals
	 	 	Schedule 3.28	Customers and Suppliers
	 	 	Schedule 3.29	Bank Accounts
	 	 	Schedule 3.30	Events Subsequent

 

v

 

 

AGREEMENT SCHEDULES

 

	Schedule CBP	Closing Bonus Payments
	Schedule 4.7	Foreign Interest
	Schedule 5.2	Negative Covenant Exceptions
	Schedule 5.17	Landlord Contributions
	Schedule A	Key Employees
	Schedule B	Other Key Employees
	Schedule C 	Indebtedness Calculation
	Schedule NWC	Net Working Capital

 

vi

 

 

EQUITY PURCHASE AGREEMENT

 

THIS EQUITY PURCHASE AGREEMENT (this “Agreement”) is entered into as of January 13, 2020 (the “Execution Date”), by and among ICF Incorporated, L.L.C., a Delaware limited liability company (the “Purchaser”), Project Lucky Holdings, LLC, a Delaware limited liability company (the “LLC Seller”), Incentive Technology Group, LLC, a Virginia limited liability company (the “Company”), and Shadi Michelle Branch and Adam Branch (collectively, the “Individual Sellers”; the LLC Seller and the Individual Sellers are referred to collectively, as the “Sellers” and each, a “Seller”).

 

RECITALS

 

WHEREAS, the Individual Sellers have caused the following corporate restructuring to occur (the “Reorganization”): (i) the Individual Sellers formed the LLC Seller, (ii) the LLC Seller filed a S-corporation election pursuant to Section 1362 of the Code to be treated, upon the consummation of the Reorganization, as a successor S-corporation to the Company, (iii) the Individual Sellers contributed to the LLC Seller all of the issued and outstanding membership interests in the Company in exchange for all of the shares of the membership interests in the LLC Seller (the “Contribution and Exchange”) such that, immediately following the Contribution and Exchange, the Company became a wholly owned subsidiary of the LLC Seller, (iv) the LLC Seller filed a Form 8869 electing to treat the Company as a “qualified subchapter S subsidiary” of the LLC Seller effective as of the date of the Contribution and Exchange, and (v) on the day following the Contribution and Exchange, the Company filed Form 8832, Entity Classification Election, pursuant to which the Company elected to be classified as a disregarded entity for U.S. Federal income tax purposes;

 

WHEREAS, as of the Execution Date, the LLC Seller owns all of the issued and outstanding membership interests of the Company (the “Interests”);

 

WHEREAS, the Individual Sellers desire to cause the LLC Seller to sell and convey all of the Interests to the Purchaser, and the Purchaser desires to purchase the Interests from the LLC Seller, upon the terms and subject to the conditions set forth in this Agreement;

 

WHEREAS, on or prior to the Execution Date, the Individual Sellers and Key Employees have executed and delivered to Purchaser Restrictive Covenant Agreements to become effective upon Closing;

 

WHEREAS, on or prior to the Execution Date, all of the Key Employees and certain of the Other Key Employees have executed and delivered to Purchaser Offer Letters, ICF Confidentiality, Intellectual Property, Non-Competition and Non-Solicitation Agreements, ICF Code of Business Ethics and Conduct Acknowledgement Forms, ICF Conflict of Interest Statements, ICF Treatment of Confidential Information From Prior Employment Acknowledgements and Confidentiality Agreements (collectively, the “Employment Documentation”); and

 

 

 

 

WHEREAS, on or prior to the Execution Date, the Company provided notice to ServiceNow, Inc. with respect to the transactions contemplated by this Agreement and ServiceNow, Inc. has consented to the transactions contemplated by this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.     PURCHASE PRICE; CLOSING.

 

1.1     Purchase and Sale of Interests; Payment of Closing Purchase Price. At the Closing and upon all of the terms and subject to all of the conditions of this Agreement, the LLC Seller will sell, transfer, assign and convey to the Purchaser, and the Purchaser will purchase and accept from the LLC Seller, the Interests. At the Closing, in full payment for the Interests, the Purchaser will pay:

 

(a)     the amount of the outstanding Indebtedness, if any, to the Persons and in the amounts set forth in the Flow of Funds Memorandum;

 

(b)     the amount of the unpaid Company Transaction Expenses, if any, to the Persons and in the amounts set forth in the Flow of Funds Memorandum (which Company Transaction Expenses shall include one-half of the R&W Insurance Expenses);

 

(c)     the amount of the Closing Bonus Payments and the UAR Payments (to be paid by the Company to the Closing Bonus Payments recipients and UAR Holders in the aggregate amounts set forth in the Flow of Funds Memorandum, no later than the first regularly scheduled payroll following the Closing);

 

(d)     the Purchase Price Adjustment Escrow Amount and Indemnity Escrow Amount to escrow accounts (respectively, the “Purchase Price Adjustment Escrow Account” and the “Indemnity Escrow Account”) established by the Purchaser and the LLC Seller with Citizens Bank, N.A. the (“Escrow Agent”), to be held by the Escrow Agent pursuant to the terms of an escrow agreement attached hereto as Exhibit A (the “Escrow Agreement”);

 

(e)     to the LLC Seller, Two Hundred Fifty-Five Million Dollars ($255,000,000.00) (“Base Purchase Price”), as adjusted pursuant to Section 1.3(a) (the “Closing Purchase Price”), minus the amounts paid pursuant to Section 1.1(a) through Section 1.1(d) (without duplication of the adjustment to the Base Purchase Price pursuant to Section 1.3(a)) (such amount payable to the LLC Seller, the “Seller Closing Proceeds”). The Closing Purchase Price, as adjusted pursuant to Section 1.3(b) is referred to as the “Purchase Price.”

 

2

 

 

1.2     Flow of Funds Memorandum. Not later than three (3) days prior to the Closing Date, the Company shall prepare and deliver to the Purchaser a flow of funds memorandum containing the Company’s good faith estimate (including all calculations in reasonable detail) of: (a) the Estimated Net Working Capital (including the Estimated Accounts Receivable, Estimated Prepaid Expenses, Estimated Accounts Payable and Estimated Accrued Expenses) in accordance with Section 1.3(a); (b) the amount that Indebtedness will be on the Closing Date (the “Estimated Indebtedness”); (c) the amount of unpaid Company Transaction Expenses on the Closing Date (the “Estimated Company Transaction Expenses”); (d) the amount of the Closing Bonus Payments and the UAR Payments; (e) the amount of Cash on the Closing Date (the “Estimated Cash”); (f) the amount of Cash Offsets on the Closing Date (the “Estimated Cash Offsets”); (g) the portion of the Seller Closing Proceeds payable to the LLC Seller; and (h) the updated Schedule 5.17, which schedule shall set forth the amount of unreimbursed Landlord Contributions for periods ending on or prior to the Closing Date, as of the Closing, and shall supersede and replace the version of such Schedule that are attached hereto as of the date hereof (such statement, the “Flow of Funds Memorandum”). These calculations will be used in connection with the payments described in Section 1.1. The Flow of Funds Memorandum also will contain wire instructions for all of the foregoing payments (or instructions to pay certain amounts by check).

 

1.3     Purchase Price Adjustment. The purpose of the purchase price adjustment set forth in this Section 1.3 is solely to measure any changes in Net Working Capital from the target and Cash, Company Transaction Expenses and Indebtedness from the estimated amounts to the final amounts on the same accounting basis consistently applied by the Company prior to the Closing to reflect the transactions or events up to, and conditions existing as of, the Closing.

 

(a)     Preliminary Purchase Price Adjustment. No later than three (3) Business Days prior to the Closing, the LLC Seller, in accordance with the terms of this Section 1.3(a), shall prepare and deliver to the Purchaser an estimated balance sheet for the Company as of the Closing (the “Estimated Closing Balance Sheet”), which Estimated Closing Balance Sheet shall include an estimation of (i) the Net Working Capital of the Company as of the Closing (“Estimated Net Working Capital”) and the Accounts Receivable of the Company as of the Closing (“Estimated Accounts Receivable”), Prepaid Expenses of the Company as of the Closing (“Estimated Prepaid Expenses”), Accounts Payable of the Company as of the Closing (“Estimated Accounts Payable”), and Accrued Expenses of the Company as of the Closing (“Estimated Accrued Expenses”); (ii) Estimated Cash and Estimated Cash Offsets; (iii) Estimated Indebtedness; and (iv) the Estimated Company Transaction Expenses. The LLC Seller shall provide the Purchaser with reasonable access to the Company and relevant financial personnel in order to allow the Purchaser to review the Estimated Closing Balance Sheet and the LLC Seller will consider, in good faith, any comments made by the LLC Seller to the Estimated Closing Balance Sheet. The LLC Seller shall calculate the Estimated Closing Balance Sheet and the Estimated Net Working Capital, Estimated Accounts Receivable, Estimated Prepaid Expenses, Estimated Accounts Payable and Estimated Accrued Expenses in good faith and in a manner consistent with the Net Working Capital Principles. The Base Purchase Price will be adjusted as follows: (1) the Base Purchase Price will be decreased dollar-for-dollar by the amount that Estimated Cash is less than the Estimated Cash Offsets or increased dollar-for-dollar by the amount that Estimated Cash is greater than the Estimated Cash Offsets; (2) the Base Purchase Price will be decreased dollar-for-dollar by the amount that Estimated Accounts Receivable are less than the Target Accounts Receivable or increased dollar-for-dollar by the amount that Estimated Accounts Receivable are greater than the Target Accounts Receivable; (3) the Base Purchase Price will be decreased dollar-for-dollar by the amount that Estimated Prepaid Expenses are less than the Target Prepaid Expenses or increased dollar-for-dollar by the amount that Estimated Prepaid Expenses are greater than the Target Prepaid Expenses; (4) the Base Purchase Price will be decreased dollar-for-dollar by the amount that Estimated Accounts Payable exceed the Target Accounts Payable or increased dollar-for-dollar by the amount that Estimated Accounts Payable are less than the Target Accounts Payable; (5) the Base Purchase Price will be decreased dollar-for-dollar by the amount that Estimated Accrued Expenses exceed the Target Accrued Expenses or increased dollar-for-dollar by the amount that Estimated Accrued Expenses are less than the Target Accrued Expenses; (6) the Base Purchase Price will be decreased dollar-for-dollar by the amount of the Estimated Indebtedness; and (7) the Base Purchase Price will be decreased dollar-for-dollar by the amount of the Estimated Company Transaction Expenses. The Closing Purchase Price will thereafter be subject to further adjustment as provided in Section 1.3(b). For the avoidance of doubt, no item shall be double counted in the calculation of Net Working Capital, Accounts Receivable, Prepaid Expenses, Accounts Payable, Accrued Expenses, Cash, Cash Offsets, Indebtedness or Company Transaction Expenses.

 

3

 

 

(b)     Post-Closing Purchase Price Adjustment.

 

(i)     Delivery of Closing Balance Sheet.

 

(A)     Within ninety (90) days following the Closing Date, the Purchaser will, in good faith and in accordance with the terms of this Section 1.3(b), prepare and deliver to the LLC Seller (i) its good faith calculation of: (1) the Final Net Working Capital (including Final Accounts Receivable, Final Prepaid Expenses, Final Accounts Payable and Final Accrued Expenses) of the Company as of the Closing, including the Purchaser’s reasonably detailed calculations of Net Working Capital (including Accounts Receivable, Prepaid Expenses, Accounts Payable and Accrued Expenses), showing in reasonable detail any differences between the Purchaser’s proposed calculation of Final Net Working Capital (including Accounts Receivable, Prepaid Expenses, Accounts Payable and Accrued Expenses) and the Estimated Net Working Capital (including Accounts Receivable, Prepaid Expenses, Accounts Payable and Accrued Expenses), together with supporting documentation that is reasonably necessary to confirm the differences between the Estimated Net Working Capital (including Estimated Accounts Receivable, Estimated Prepaid Expenses, Estimated Accounts Payable and Estimated Accrued Expenses) and the Purchaser’s calculation of Net Working Capital (including Accounts Receivable, Prepaid Expenses, Accounts Payable and Accrued Expenses), (2) the Cash as of the Effective Time and the Cash Offsets as of the Effective Time, (3) the Indebtedness as of the Effective Time, and (4) the Company Transaction Expenses as of the Effective Time, and (ii) a balance sheet of the Company as of the Closing (the “Final Closing Balance Sheet”, together with the information required under (i), the “Final Closing Statement”). Calculation of the Final Net Working Capital (including Final Accounts Receivable, Final Prepaid Expenses, Final Accounts Payable and Final Accrued Expenses) and Final Closing Balance Sheet shall be in a manner consistent with the Net Working Capital Principles. If the Purchaser fails to deliver the Final Closing Statement to the LLC Seller within the ninety (90) day period specified in this Section 1.3(b)(i)(A), at the LLC Seller’s sole election and discretion, the Purchaser shall be deemed to have accepted the Estimated Net Working Capital (including Estimated Accounts Receivable, Estimated Prepaid Expenses, Estimated Accounts Payable and Estimated Accrued Expenses) as final.

 

4

 

 

(B)     The Final Closing Balance Sheet shall be prepared, and Final Net Working Capital, Final Accounts Receivable, Final Prepaid Expenses, Final Accounts Payable, Final Accrued Expenses, Final Cash, Final Cash Offsets, Final Company Transaction Expenses and Final Indebtedness shall be determined, in accordance with this Agreement, including the Net Working Capital Principles and definitions of Cash, Cash Offsets, Indebtedness, Company Transaction Expenses, Accounts Receivable, Prepaid Expenses, Accounts Payable and Accrued Expenses. For the avoidance of doubt, the Final Closing Statement, the Final Closing Balance Sheet and the Net Working Capital, Accounts Receivable, Prepaid Expenses, Accounts Payable, Accrued Expenses, Cash, Cash Offsets, Indebtedness and Company Transaction Expenses reflected therein shall (i) exclude the impact of any decisions made or actions taken or omitted by the Purchaser or the Company following the Closing, and (ii) not reflect changes in assets or liabilities as a result of purchase accounting adjustments or reflect any events, conditions or circumstances that arise as a result of the change of control or ownership of the Company contemplated by this Agreement.

 

(ii)     Review of Final Closing Balance Sheet; Objection.

 

(A)     The LLC Seller shall have thirty (30) days from the date of receipt of the Final Closing Statement and the Final Closing Balance Sheet and such requested information as further specified herein to review the computations reflected on the Final Closing Balance Sheet and the Final Closing Statement (which requests for information may be made by LLC Seller via email). In connection with such review, the Purchaser will make available to the LLC Seller and its advisors all records and work papers relating to the Company and the Purchaser’s calculations set forth in the Final Closing Statement that the LLC Seller and its advisors reasonably request in reviewing the Final Closing Balance Sheet and Final Closing Statement, and the Purchaser will make available to the LLC Seller and its advisors the personnel and other advisors of Purchaser involved in the preparation of the Final Closing Balance Sheet and the Final Closing Statement.

 

(B)     If the LLC Seller disagrees with the Purchaser’s Final Closing Statement or Final Closing Balance Sheet, then the LLC Seller shall deliver written notice (an “Objection Notice”) of such disagreement to Purchaser on or before the thirtieth (30th) day following the LLC Seller’s receipt of the Final Closing Balance Sheet, Final Closing Statement, and all information subsequently requested by the LLC Seller as specified above in Section 1.3(b)(ii)(A). If the LLC Seller delivered an Objection Notice to the Purchaser, then the Purchaser and the LLC Seller will endeavor to resolve any disagreements noted in the Objection Notice in good faith as soon as practicable after the delivery of such notice, but if they do not obtain a final resolution within thirty (30) days after the Purchaser has received the Objection Notice, unless mutually extended by the parties in writing, then either the Purchaser or the LLC Seller may thereafter commence the process to jointly retain the Firm and each party must proceed with the Dispute Resolution Procedure in accordance with the terms of this Agreement.

 

5

 

 

(iii)     Final and Binding Determination.

 

(A)     The Final Closing Balance Sheet, Cash, Cash Offsets, Indebtedness, Company Transaction Expenses, Net Working Capital (including Accounts Receivable, Prepaid Expenses, Accounts Payable and Accrued Expenses), as of the Closing as agreed to by the Purchaser and the LLC Seller, or as determined by the Firm, as applicable, shall be conclusive and binding on all of the parties hereto and shall be deemed the “Final Closing Balance Sheet”, the “Final Net Working Capital”, “Final Accounts Receivable”, “Final Prepaid Expenses”, “Final Accounts Payable”, “Final Accrued Expenses”, “Final Cash”, “Final Cash Offsets”, “Final Company Transaction Expenses,” and “Final Indebtedness” for all purposes herein.

 

(B)     Upon completion of the calculation of the Final Closing Balance Sheet, the Final Cash, Final Cash Offsets, Final Indebtedness, Final Company Transaction Expenses, Final Net Working Capital, Final Accounts Receivable, Final Prepaid Expenses, Final Accounts Payable, and Final Accrued Expenses in accordance with this Section 1.3(b)(iii), the Closing Purchase Price will be: (1) (a) increased dollar-for-dollar by the amount that the Final Accounts Receivable exceed the Estimated Accounts Receivable or (b) decreased dollar-for-dollar by the amount that the Estimated Accounts Receivable exceed the Final Accounts Receivable; (2) (a) increased dollar-for-dollar by the amount that the Final Prepaid Expenses exceed the Estimated Prepaid Expenses or (b) decreased dollar-for-dollar by the amount that the Estimated Prepaid Expenses exceed the Final Prepaid Expenses, (3) (a) increased dollar-for-dollar by the amount that the Estimated Accounts Payable exceed the Final Accounts Payable, or (b) decreased dollar-for-dollar by the amount that the Final Accounts Payable exceed the Estimated Accounts Payable, (4) (a) increased dollar-for-dollar by the amount that the Estimated Accrued Expenses exceed the Final Accrued Expenses, or (b) decreased dollar-for-dollar by the amount that the Final Accrued Expenses exceed the Estimated Accrued Expenses, (5) (a) increased dollar-for-dollar by the amount that the Final Cash exceeds the Estimated Cash, or (b) decreased dollar-for-dollar by the amount that the Estimated Cash exceeds the Final Cash, (6) (a) increased dollar-for-dollar by the amount that the Estimated Cash Offsets exceed the Final Cash Offsets or (b) decreased dollar-for-dollar by the amount that the Final Cash Offsets exceed the Estimated Cash Offsets, (7) (a) increased dollar-for-dollar by the amount that the Estimated Indebtedness exceeds the Final Indebtedness, or (b) decreased dollar-for-dollar by the amount that the Final Indebtedness exceeds the Estimated Indebtedness, and (8) (a) increased dollar-for-dollar by the amount that Estimated Company Transaction Expenses exceed the Final Company Transaction Expenses, or (b) decreased dollar-for-dollar by the amount that the Final Company Transaction Expenses exceed the Estimated Company Transaction Expenses.

 

6

 

 

(iv)     Payment. Any payment owed pursuant to this Section 1.3(b)(iv) (such payment, the “Purchase Price Adjustment”) will be paid within five (5) Business Days after the Final Net Working Capital, Final Accounts Receivable, Final Prepaid Expenses, Final Accounts Payable, Final Accrued Expenses, Final Cash, Final Cash Offsets, Final Company Transaction Expenses and Final Indebtedness are agreed to pursuant to Section 1.3(b)(iii)(A), in accordance with this Section 1.3(b)(iv).

 

(A)     If the Purchase Price exceeds the Closing Purchase Price, then (1) the Purchaser shall pay to the LLC Seller an amount equal to the positive difference by wire transfer of immediately available funds (pursuant to the LLC Seller’s wire instructions in the Flow of Funds Memorandum); and (2) instruct the Escrow Agent to release the Purchase Price Adjustment Escrow Amount to the LLC Seller.

 

(B)     If the Closing Purchase Price exceeds the Purchase Price, then (1) the LLC Seller will execute such documentation necessary to instruct the Escrow Agent to pay from the Purchase Price Adjustment Escrow Account an amount equal to the difference (by execution of joint written executions, signed by the Purchaser and the LLC Seller) to an account designated by the Purchaser and (2) where the Purchase Price Adjustment exceeds the Purchase Price Adjustment Escrow Amount, the difference shall be paid to the Purchaser from the LLC Seller by wire transfer of immediately available funds to an account designated by Purchaser. Where the Purchase Price Adjustment is lower than the Purchase Price Adjustment Escrow Amount, the funds remaining in the Purchase Price Adjustment Escrow Account after payment to the Purchaser pursuant to this Section 1.3(b)(iv)(B) shall be paid to the LLC Seller (by execution of joint written executions, signed by the Purchaser and the LLC Seller).

 

(C)     Any payments made pursuant to this Section 1.3(b)(iv) shall constitute an adjustment to the applicable Purchase Price for Tax purposes and shall be treated as such by the parties on their Tax Returns and in any communications with any Taxing Authorities.

 

1.4     Form of Payments. Except as expressly provided herein, all payments under this Agreement will be made by delivery to the recipient by depositing, by wire transfer, the required amount (in immediately available funds in United States currency) in an account of the recipient, which account will be designated by the recipient in the Flow of Funds Memorandum or otherwise in writing at least three (3) Business Days prior to the date of the required payment.

 

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1.5     Closing.

 

(a)     Unless this Agreement is earlier terminated pursuant to Section 8.1, the closing of the transactions contemplated by this Agreement (the “Closing”) will take place remotely via the exchange of electronic documents and signatures on January 31, 2020 or such later date within two (2) Business Days following the satisfaction of or waiver of all conditions to, the obligations of the parties to consummate the transactions contemplated hereby (other than conditions with respect to actions the respective parties will take at the Closing itself) or such other date, time and place as the Purchaser and the LLC Seller may agree (the “Closing Date”). For purposes of determining Net Working Capital, Indebtedness and Cash and, to the extent permitted by Law and GAAP, for Tax and accounting purposes, the parties will treat the Closing as being effective at 11:59 p.m. Eastern Time on the Closing Date (the “Effective Time”).

 

(b)     At the Closing, (i) the Sellers or the Company will deliver to the Purchaser the various certificates, instruments, and documents referred to in Section 7.1 and (ii) the Purchaser will deliver to the Company and the Sellers the various certificates, instruments, and documents referred to in Section 7.2.

 

1.6     Withholding Taxes. Notwithstanding any other provision in this Agreement, the Purchaser, the Company and the Sellers shall have the right to deduct and withhold Taxes from any payments to be made hereunder if such withholding is required by Law and to collect any necessary Tax forms, including Form W-9, or any similar information, in consultation with the LLC Seller, and such amounts shall be reflected in the Flow of Funds Memorandum. To the extent that amounts are withheld and paid to the appropriate Taxing Authority such withheld amounts shall be treated for all purposes of this Agreement as having been delivered and paid to the applicable Person in respect of which such deduction and withholding was made. Purchaser agrees to provide the LLC Seller with at least two days’ prior written notice regarding any proposed withholding with respect to the Closing Purchase Price, other than any withholding relating to the Closing Bonus Payments, if any, and the UAR Payments.

 

2.     REPRESENTATIONS AND WARRANTIES OF THE SELLERS.

 

Except as set forth in the Disclosure Schedules, the Individual Sellers and the LLC Seller hereby represent and warrant to the Purchaser the following matters in this Section 2. These representations and warranties are made as of the Execution Date, except to the extent that a representation, warranty or section of the Disclosure Schedules expressly states that such representation or warranty, or information in such section of the Disclosure Schedules, is made only as of an earlier date or as of the Execution Date.

 

2.1     Organization. The LLC Seller is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of Delaware, and is qualified or registered to do business and in good standing in each jurisdiction in which the nature of its business or operations would require such qualification or registration.

 

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2.2     Necessary Authority. Each Seller has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which such Seller is a party, to perform such Seller’s obligations hereunder and thereunder, to consummate the transactions contemplated hereby and thereby. This Agreement has been, or with respect to Transaction Documents to be delivered at the Closing by any Seller, will be, duly authorized, executed and delivered by such Seller and constitute (assuming, in each case, the due authorization, execution and delivery by each other party thereto) the legal, valid and binding obligations of such Seller enforceable against such Seller in accordance with its terms and conditions, subject only to applicable bankruptcy, insolvency or other Laws affecting creditors’ rights generally and the exercise of judicial discretion in accordance with general equitable principles.

 

2.3     Title to the Interests. The LLC Seller owns good, valid and marketable title to all of the Interests, free and clear of any and all Liens (other than Liens under securities Laws) and upon delivery of the LLC Seller’s Interests to the Purchaser on the Closing Date in accordance with this Agreement and upon Purchaser’s payment of the closing payments in accordance with Section 1.1, the entire legal and beneficial interest in the LLC Seller’s Interests and good, valid and marketable title to such Interests, free and clear of all Liens (other than Liens under securities Laws or otherwise imposed by the Purchaser or its creditors), will pass to the Purchaser. Except as otherwise set forth on Schedule 3.3(a), other than this Agreement and the Charter and Governing Documents of the Company, there are no outstanding contracts, commitments, understandings, arrangements or restrictions (other than applicable federal and state securities Laws) to which any of the LLC Seller or the Individual Sellers is a party or by which any of the LLC Seller of the Individual Sellers is bound relating to any of such Interests.

 

2.4     No Conflicts. Except as set forth on Schedule 2.5 of the Disclosure Schedules, the execution, delivery and performance by the Sellers of this Agreement and the other Transaction Documents to which any Seller is a party, and the consummation of the transactions contemplated herein or therein do not and will not, assuming the receipt of the Required Statutory Approvals: (a) violate the Charter or Governing Documents of the LLC Seller, (b) require any Seller to obtain the consent or approvals of, or make any filing with, any person or public authority, except for consents and approval already obtained and notices or filings already made, (c) violate any Law or (d) constitute or result in the breach of any provision of, or constitute a default under, any contract to which any Seller is a party or by which such Seller’s assets are bound, in each case, except to the extent that such violation, breach or default would not, individually or in the aggregate, reasonably be expected to materially and adversely affect the consummation of the transactions contemplated hereunder.

 

2.5     Brokers. Except as set forth on Schedule 3.25, no broker, finder or investment banker or other similar person is directly or indirectly entitled to any brokerage, finder’s or other fee or commission or any similar charge in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of any Seller.

 

2.6     Full Disclosure. To the Seller’s Knowledge, no representation or warranty by the Sellers in this Agreement (including the Disclosure Schedules hereto), or in any statement or certificate which is furnished or to be furnished to the Purchaser pursuant to Section 7.1, (i) contains or will contain any untrue statement of a material fact, or (ii) omits or will omit to state, when read in conjunction with all of the information contained in this Agreement (including the Disclosure Schedules hereto) or in any statement or certificate which is furnished or to be furnished to the Purchaser in connection with the Closing, any fact, necessary to make the statements or facts contained therein not misleading.

 

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2.7     No Other Representations and Warranties. Except for the representations and warranties contained in Section 2 and Section 3 (including the Disclosure Schedules hereto), the Sellers make no express or implied representation or warranty.

 

3.     REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

 

Except for the information set forth in the Disclosure Schedules, the Sellers and the Company represent and warrant to the Purchaser the matters set forth in this Section 3. These representations and warranties are made as of the Execution Date, except to the extent that a representation, warranty or section of the Disclosure Schedules expressly states that such representation or warranty is made only as of an earlier date.

 

3.1     Organization. The Company is a limited liability company duly organized, validly existing and in good standing under the Laws of the Commonwealth of Virginia, and is qualified or registered to do business and in good standing in each jurisdiction in which the nature of its business or operations would require such qualification or registration. The Company is qualified or registered to do business in each jurisdiction listed on Schedule 3.1.

 

3.2     Authorization; Corporate Documentation. The Company has the limited liability company or other power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party, to perform its obligations hereunder and thereunder, and, subject to the Required Statutory Approvals, to consummate the transactions contemplated hereby and thereby. The copies of the Company’s Charter and the Governing Documents (copies of which have been delivered to the Purchaser) are true, complete and correct copies of such Charter and Governing Documents, as amended through and in effect on the Execution Date.

 

3.3     Title; Capitalization.

 

(a)     The LLC Seller owns good, valid and marketable title to all of the Interests, free and clear of any and all Liens (other than Liens under securities Laws). Except as set forth on Schedule 3.3(a), the Interests constitute all outstanding equity securities of the Company. All such Interests (i) have been duly and validly issued; and (ii) were not issued in violation of any preemptive rights or rights of first refusal or first offer. All of the issued and outstanding Interests and all of the other securities issued by the Company were granted, offered, sold and issued in compliance, in all material respects, with all applicable state and federal securities Laws. Except as set forth on Schedule 3.3(a), there are no outstanding or authorized Convertible Securities, equity appreciation, phantom equity or similar rights with respect to the Company. Except as set forth on Schedule 3.3(a), there are no outstanding voting trusts, proxies, equity holder agreements or any other agreements or understandings with respect to Company securities, and there are no preemptive rights or rights of first refusal or first offer, nor are there any Contracts to which the Company is a party or by which the Company is bound relating to any of the Interests or any other equity securities of the Company.

 

(b)     Other than as set forth on Schedule 3.3(b), the Company does not own any equity interest in any other Person.

 

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3.4     Binding Agreement. This Agreement has been duly executed by the Company and delivered to the Purchaser, and constitutes the legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or other Laws affecting creditors’ rights generally and the exercise of judicial discretion in accordance with general equitable principles. Upon execution and delivery at the Closing by the Company, each other Transaction Document to which the Company is, or is specified to be, a party, will be duly and validly executed by the Company, and delivered to the Purchaser on the Closing Date, and will constitute (assuming, in each case, the due authorization, execution and delivery by each other party thereto) the Company’s legal, valid and binding obligation, enforceable against it in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or other Laws affecting creditors’ rights generally and the exercise of judicial discretion in accordance with general equitable principles.

 

3.5     No Breach. Except as set forth on Schedule 3.5, the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby by the Company do not and will not (a) violate or conflict with the Charter or Governing Documents of the Company; (b) assuming receipt of the Required Statutory Approvals, violate or conflict with, in any material respect, any Law to which the Company or the Interests are subject; (c) with or without giving notice or the lapse of time or both, materially breach or conflict with, constitute or create a material default under, or give rise to any right of termination or cancellation of, any of the terms, conditions or provisions of any Material Contract or Government Contract listed or required to be listed on Schedule 3.27(a) to which the Company is a party or by which the Company may be bound as of the Execution Date; (d) result in the imposition of a Lien on the Company, the Interests or Assets, except for Permitted Liens; or (e) as of the Execution Date, except for the Required Statutory Approvals and assuming the accuracy of the Purchaser’s representations in Section 4.7, require any filing with, or Permit, consent or approval of, or the giving of any notice to, any Governmental Authority or other Person by the Company (other than under a Government Contract).

 

3.6     Permits. The Company possesses all material Permits required to own the Assets and conduct the business of the Company as now being conducted. Schedule 3.6 sets forth a complete and accurate list of each Permit material to the operation of the business of the Company (the “Company Permits”) together with the name of the Governmental Authority issuing such Company Permit and the expiration or renewal date of such Company Permit. The Company Permits are valid and in full force and effect. The Company is not in default under, and no condition exists that with notice or lapse of time or both would reasonably be expected to constitute a default under, the Company Permits. The execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby by the Company do not and will not give rise to any right of termination or cancellation of any Company Permit.

 

3.7     Compliance With Laws.

 

(a)     Except as set forth on Schedule 3.7, the Company is, and since January 1, 2017 has been, in compliance, in all material respects, with all Laws (other than Laws relating to Tax, ERISA, Environmental Laws, employment, labor, Privacy and Security Laws, and Government Contracts, which are referenced in Sections 3.16, 3.17, 3.19, 3.23, 3.24, 3.26 and 3.27 respectively) applicable to the business or Assets.

 

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(b)     Since January 1, 2015, neither the Company, nor any of its officers or managers, and to the Company’s Knowledge, none of the agents or employees of the Company has (i) used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to political activity, (ii) made any unlawful offer of payment of anything of value to foreign government officials or employees of a foreign political party or candidates for foreign political office, (iii) violated any applicable money laundering or anti-terrorism law or regulation, or (iv) to the Company’s Knowledge, taken any action that would cause the Company to be in violation of the Foreign Corrupt Practices Act of 1977, as amended, or any applicable Law of similar effect.

 

(c)     The Company is in compliance, in all material respects, with all applicable statutory and regulatory requirements under the Export Control Laws. Since January 1, 2015, the Company has not received any written communication alleging that it is not in compliance with the Export Control Laws.

 

3.8     Title to Assets. Except as set forth on Schedule 3.8, the Company has good and marketable title to all of the Assets owned by the Company (excluding Intellectual Property which is addressed in Section 3.11 hereof), free and clear of all Liens except for Permitted Liens. Immediately following the Closing, all of the Assets will be owned, leased or available for use by the Company on terms and conditions substantially similar to those under which, immediately prior to the Closing, the Company owns, leases, uses or holds available for use such Assets.

 

3.9     Condition of Personal Property. Except as set forth on Schedule 3.9, all items of Personal Property with a fair market value greater than $10,000 individually used in the operation of the business of the Company are in satisfactory operating condition and repair (reasonable wear and tear excepted) and are suitable for the purposes for which they are currently being used.

 

3.10     Accounts Receivable. Except as set forth on Schedule 3.10, all accounts receivable of the Company shown on the balance sheet included in the Financial Statements arose from sales actually made or services actually performed in the Ordinary Course of Business of the Company and/or billings in accordance with contractual terms.

 

3.11     Intellectual Property.

 

(a)     Schedule 3.11(a) sets forth (i) all registered Copyrights, registered Trademarks, Domain Names, Patents, and all applications to register any of the foregoing in each case owned by, assigned to or filed in the name of the Company (“Registered IP”), specifying as to each item, as applicable: (A) the nature of the item, including the title of the item; (B) the owner of the item; (C) the jurisdictions in which the item is issued or registered or in which an application for issuance or registration has been filed; and (D) the issuance, registration or application numbers and dates, and (ii) all material licenses (whether term based or perpetual) as of the Execution Date (other than (A) licenses and subscriptions for commercial off-the-shelf software with an annual license or subscription fee of $50,000 or less, (B) authorizations to use Intellectual Property provided as government furnished equipment or government furnished information under a Government Contract, (C) authorizations to use Intellectual Property made available by a prime contractor under a Government Contract, (D) any additional non-exclusive licenses implied by law to end-user customers for use of products, and (E) any non-exclusive license to use confidential information of a third party for limited evaluation purposes under a non-disclosure agreement) under which the Company is a licensee or otherwise is authorized to use or practice any Intellectual Property owned by a third party (such licenses and sublicenses collectively “IP Licenses”). To the Company’s Knowledge, all of the Registered IP is in effect and all renewal fees and other maintenance fees due and payable as of the date hereof have been paid by the Company. All Company IP developed by current and former employees and contractors of the Company has either (i) been assigned to the Company under a written agreement signed by such employee or contractor or (ii) is owned by the Company by virtue of applicable Law governing developments made in the scope of employment to the IP Licenses.

 

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(b)     Except as set forth on Schedule 3.11(b), the Company owns, free and clear of all Liens, (other than Permitted Liens and non-exclusive license rights granted in the Ordinary Course of Business of the Company, including, rights granted under any Government Contract in which the Governmental Authority has funded all or part of the development costs) and has valid and enforceable rights in all of the material Company IP used by the Company in the conduct of its business as of the Execution Date, excluding any pending applications to register Intellectual Property. The Company has valid and enforceable licenses to use all Intellectual Property owned by third parties that is subject to the IP Licenses.

 

(c)     Except as set forth on Schedule 3.11(c), the Company has no Knowledge of infringement, dilution, misappropriation, or other unauthorized use (i) by the Company of any Intellectual Property of any other Person or (ii) by any other Person of any Company IP. Except as set forth on Schedule 3.11(c), the Company has not received any written complaint or written notice of any Claim involving matters of the types contemplated by the immediately preceding sentence, which Claim remains unresolved as of the Execution Date.

 

(d)     Except as set forth on Schedule 3.11(d), or in connection with applications for patent protection, to the Company’s Knowledge, no Company IP that is a Trade Secret has been disclosed by the Company to any Person other than employees, consultants or contractors of the Company who had a need to know such Company IP in the ordinary course of employment or contract performance on behalf of the Company. Except as set forth on Schedule 3.5, no consent or approval under any IP License is required as a result of the execution and delivery of this Agreement or the performance of the obligations of the Company hereunder.

 

(e)     To the Company’s Knowledge, there have been no successful unauthorized intrusions or material breaches of the security of the Company System.

 

(f)     To the extent the Company uses any “open source” or “copyleft” software or is a party to “open” or “public source” or similar licenses, the Company is in material compliance with the terms of any such licenses. The Company is not required under any such license to (a) make or permit any disclosure or to make available any source code for its, its licensors’ or (except where the applicable customer agreement expressly required the use of open source software) its customers’ proprietary software, or (b) distribute or make available, license with the permission to make derivative works, or make redistributable any of the Company’s, its licensors’ or (except where the applicable customer agreement expressly required the use of open source software ) its customers’ proprietary software, source code or intellectual property (or to permit any such distribution or availability).

 

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3.12     Contracts.

 

(a)     Schedule 3.12(a) (which lists Contracts by each applicable subsection referenced below in this Section 3.12(a)) contains a complete, current and correct list of all of the following Contracts to which the Company is bound as of the Execution Date, provided, that for this Section 3.12, the term Contracts shall not include (1) Leases, Government Contracts, Teaming Agreements, Government Bids, Lower-Tier Subcontracts, Benefit Plans, insurance policies or IP Licenses so long as such Contracts are disclosed on Schedule 3.20(a), Schedule 3.27(a), Schedule 3.17(a), Schedule 3.18 or Schedule 3.11(a), respectively, if required to be disclosed thereon, (2) Contracts which are confidentiality, non-competition, non-solicitation, non-disclosure, or intellectual property assignment agreements with employees of the Company entered into in its Ordinary Course of Business, (3) Contracts which are non-disclosure agreements with third parties which are entered into in the Ordinary Course of Business of the Company and (4) Contracts which are non-disclosure agreements with third parties entered into in connection with the Company’s sale process:

 

(i)     any Contract or group of related Contracts which involve annual expenditures or receipts by the Company in excess of $250,000 for the twelve (12)-month period ending October 31, 2019;

 

(ii)     any Contract with any of the officers, directors, employees or Affiliates of the Company not otherwise listed on another Schedule hereto, including all non-competition, severance, and indemnification agreements (other than any form offer letter or form Contract entered into in the Ordinary Course of Business of the Company);

 

(iii)     any partnership, joint venture or profit-sharing agreement entered into with any Person;

 

(iv)     any settlement agreement involving Claims by or against the Company under which the Company has outstanding obligations;

 

(v)     any loan agreement, agreement of Indebtedness, capital or operating lease, credit, note, security agreement, guarantee, mortgage, indenture or other document relating to the borrowing of money or extension of credit, in each case, involving more than $50,000 by or to the Company;

 

(vi)     any Contract containing any limitation on the freedom of the Company to engage in any line of business or compete with any Person or to operate at any location in the world;

 

(vii)     any Contract entered into since January 1, 2017, relating to (A) the disposition, other than in the Ordinary Course of Business of the Company, of the assets or other business operations of, or any interest in, the Company, or (B) the acquisition other than in the Ordinary Course of Business of the Company of the assets or other business operations of, or any interest in, any business of another Person; and

 

(viii)     any Contract entered into outside the Ordinary Course of Business of the Company involving payment or obligations in excess of $50,000 that is not otherwise described in this Section 3.12(a) and that is not a Company Transaction Expense or otherwise related to the transactions contemplated by this Agreement.

 

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(b)     All of the Material Contracts are in full force and effect, and are valid, binding, and enforceable against the Company in accordance with their terms, except to the extent that the enforceability thereof may be affected by bankruptcy, insolvency, or similar Laws affecting creditors’ rights generally or by court-applied equitable principles. Except as set forth on Schedule 3.12(b), there exists no material breach, default or violation on the part of the Company or, to the Company’s Knowledge, on the part of any other party to any such Material Contract nor has the Company received written notice of any such breach, default or violation.

 

3.13     Litigation. Except as set forth on Schedule 3.13, there are no, and within the past three (3) years there have not been any, Legal Proceeding pending or, to the Company’s Knowledge, threatened against, the Company, or any director, officer, executive or, to the Company’s Knowledge, non-executive employee, independent contractor or agent of the Company (in their capacities as such), at law or in equity, or before or by any Governmental Authority. Except as set forth on Schedule 3.13, the Company is fully insured with respect to each of the matters set forth on Schedule 3.13 (except to the extent of any applicable deductible and subject to applicable insurance limits) or each such matter has been settled, closed or otherwise fully resolved without any continuing liability to or obligations of the Company. The Company is not subject to or bound by any outstanding Orders.

 

3.14     Financial Statements. Attached to Schedule 3.14 are true, correct and complete copies of the audited balance sheet, statement of income and statement of retained earnings and cash flows of the Company as of and for the years ended December 31, 2018 and December 31, 2017 (including any related notes and schedules), as audited by the Company’s independent accounting firm and the unaudited balance sheet as of November 30, 2019 (the “Most Recent Balance Sheet Date”) and the statements of income and retained earnings of the Company for the eleven (11) month period then ended (collectively, the “Financial Statements”). The Financial Statements were prepared in accordance with the books and records of the Company, and present fairly, in all material respects, the financial condition and the results of operations of the Company as of the respective dates and for the respective periods thereof. Except as set forth on Schedule 3.14, the Financial Statements have been prepared in accordance with GAAP as consistently applied by the Company through and among the periods indicated (provided, that the interim statements are subject to year-end adjustments which are not material (individually or in the aggregate) and do not contain footnotes and presentation items required by GAAP). The Company maintains a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit the preparation of financial statements in conformity with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the actual levels at reasonable intervals and appropriate action is taken with respect to any differences.

 

3.15     Liabilities. The Company has no liabilities of a nature required by GAAP to be included on the Company’s balance sheet except liabilities (a)  that are accrued and reflected on the Financial Statements; (b)  that are Company Transaction Expenses or that are listed on Schedule 3.15; (c)  that have arisen in the Ordinary Course of Business of the Company since the Most Recent Balance Sheet Date; (d) to perform under the Contracts of the Company; and (e) liabilities that reduce the Seller Closing Proceeds.

 

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3.16     Taxes. Except as disclosed on Schedule 3.16 hereto:

 

(a)     the Company has filed all Tax Returns required to have been filed by it;

 

(b)     all such Tax Returns are true, correct and complete in all material respects;

 

(c)     the Company has paid all Taxes which are due and payable by it (whether or not shown on any Tax Return);

 

(d)     the Company has made available to the Purchaser true and complete copies of all income Tax Returns, examination reports, and statements of deficiencies assessed against, or agreed to by the Company for the five (5) year period prior to the date of this Agreement with respect to the Company;

 

(e)     the Company has not waived, extended, or requested or agreed to extend any applicable statute of limitations relating to any Tax assessment or deficiency (other than extensions of the applicable statute of limitations as a result of filing a Tax Return on extension), which waiver or extension is still in effect, or agreed to any extension of time for filing any Tax Return of the Company which Tax Return has not been filed;

 

(f)     there are no Liens (other than Permitted Liens) on any of the Assets that arose in connection with any failure (or alleged failure) by the Company to pay any Tax;

 

(g)     (i) there is no federal, state, local or non-U.S. Tax audit or examination or any proceeding now being conducted, pending or threatened in writing (or, to the Company’s Knowledge, otherwise threatened) with respect to the Company, (ii) there is no current dispute or claim concerning any Tax liability of the Company either claimed or raised by any Taxing Authority in writing and (iii) the Company has not received from any Governmental Authority (including in jurisdictions where the Company does not file Tax Returns) any written (A) notice indicating an intent to open an audit or other review, (B) notice of deficiency or proposed adjustment for any amount of Tax proposed, asserted or assessed by any Taxing Authority against the Company, or (C) request for information relating to Tax matters, which, in each case, has not been resolved;

 

(h)     the Company has collected or withheld all Taxes required to be collected or withheld by it, and all such Taxes have been paid to the appropriate Governmental Authorities to the extent due and payable;

 

(i)     the Company is not a party to any Tax allocation or sharing agreement excluding, however, any agreement or arrangement the primary purpose of which is not the allocation, sharing or indemnification of Tax liability;

 

(j)     the Company (i) has not been a member of an affiliated group of corporations (within the meaning of Section 1504(a) of the Code) filing a consolidated federal income Tax Return or (ii) does not have any liability for the Taxes of any Person (A) under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or foreign Law), or (B) as a transferee or successor, by contract (other than a contract the primary purpose of which is not the allocation, sharing or indemnification of Tax liability) or otherwise;

 

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(k)      from January 1, 2006 until January 10, 2020, the Company has been a validly electing S corporation within the meaning of Sections 1361 and 1362 of the Code for all federal and, to the extent allowable under applicable Laws, state and local income Tax purposes;

 

(l)     from January 11, 2020 through the date hereof, the Company has been a disregarded entity for all federal and, to the extent allowable under applicable Laws, state and local income Tax purposes;

 

(m)     the unpaid Taxes of the Company did not, as of the Most Recent Balance Sheet Date, exceed the reserve for Tax liability (rather than any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of the balance sheet contained in the Financial Statements;

 

(n)     the Company has not incurred (and has no potential for) any liability for income Taxes under Code Section 1374 on the disposition or sale of any Asset of the Company (whether actual or deemed); and

 

(o)     any powers of attorney granted by or with respect to the Company prior to the Closing relating to Taxes will terminate and be of no effect following the Closing.

 

No breach or inaccuracy in the representations set forth in this Section 3.16, other than those set forth in paragraphs (i), (j), (k) and (l), shall cause any of the Sellers to be liable for any Taxes of the Company that arise in a tax period (or portion thereof) commencing after the Closing Date.

 

3.17     Employee Benefit Plans; ERISA.

 

(a)     Schedule 3.17(a) contains a true and complete list of all material employee benefit plans (within the meaning of Section 3(3) of ERISA) and any deferred compensation arrangements, bonus compensation plans or policies, severance pay, disability, vacation and sick leave benefits maintained or sponsored, contributed to or required to be maintained or contributed to by the Company or under which the Company has any liability or contingent liability, for the benefit of employees of the Company (the “Benefit Plans”). With respect to any Benefit Plan, no Claims (other than routine claims for benefits in the ordinary course) are pending or, to the Company’s Knowledge, threatened in writing. With respect to each Benefit Plan that is intended to be qualified within the meaning of Code Section 401(a), such plan has received, or is entitled to rely upon, a favorable determination or opinion letter as to its qualification. Each Benefit Plan has been operated in compliance with its terms and with the requirements of all applicable Laws, except to the extent such non-compliance would not reasonably be expected to cause a Material Adverse Effect.

 

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(b)     Except as set forth on Schedule 3.17(b), at no time during the past six (6) years has the Company or any member of its “Controlled Group” (defined as any organization which is a member of a controlled group of organizations within the meaning of Code Sections 414(b), (c), (m) or (o)) currently (nor at any) maintained, sponsored or contributed to, or been obligated to contribute to any Benefit Plan which is subject to Title IV of ERISA or Section 412 of the Code or to any “multiemployer plan”, within the meaning of Section 3(37) or Section 4001(a)(3) of ERISA. No event has occurred and no condition exists with respect to a Benefit Plan that is reasonably be expected to result in a material Tax, Lien (other than Permitted Liens), or other material liability imposed by ERISA, the Code or other applicable Laws for which the Company may be liable in any material respect. The Company does not maintain retiree life or retiree health insurance plans that provide for continuing benefits or coverage for any participant or any beneficiary of a participant except as may be required under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended or at the sole expense of the participant or any participant’s beneficiary.

 

(c)     Each “nonqualified deferred compensation plan” (as such term is defined in Section 409A(d)(1) of the Code) has been maintained in all material respects in compliance with Section 409A of the Code, as applicable, and the Company has no obligation to pay a Tax gross-up payment to, or otherwise indemnify or reimburse any Person for a Tax-related excise tax, interest or penalty arising due to a violation of Section 409A of the Code.

 

(d)     Except as set forth on Schedule 3.17(d), no Benefit Plan exists that, as a result of the transactions contemplated by this Agreement, would result in the payment to any current or former employee or director of the Company of any money or other property or would result in the acceleration or provision of any other rights or benefits to any current or former employee of the Company, whether or not such payment, right or benefit would constitute a parachute payment within the meaning of Code Section 280G.

 

3.18     Insurance. Schedule 3.18 lists all insurance policies held by the Company relating to the business of the Company (excluding insurance policies related to the Benefit Plans and provided on Schedule 3.17(a)), copies of which have been made available to the Purchaser. All such insurance policies are in full force and effect as of the Execution Date and all premiums with respect to such policies have been accurately computed and paid in full prior to Closing. Each such insurance policy is legal, valid, binding, enforceable and, except as set forth on Schedule 3.5, in full force and effect as of the Closing, except to the extent that the enforceability thereof may be affected by bankruptcy, insolvency, or similar Laws affecting creditors’ rights generally, or by court applied equitable principles. The insurance policies identified on Schedule 3.18 meet or exceed the insurance requirements of all Contracts to which the Company is a party. To the Company’s Knowledge, there are no outstanding claims under such policies which are reasonably likely to exhaust the applicable limitation of liability.

 

3.19     Environmental Matters. Except as set forth in Schedule 3.19, (i) the Company is, and in the past five (5) years has been in compliance in all material respects with all Environmental Laws, (ii) the Company has obtained, maintained, and complied for the last five (5) years in all material respects with all governmental authorizations required by Environmental Laws for the operation of the Company and its use and occupation of the Leased Premises, (iii) the Company has not received in the past five (5) years (or earlier, to the extent not fully and finally resolved) any written (or, to the Company’s Knowledge, oral) notice, report or other information regarding any actual or alleged material violation of, or material liability or obligation under, any Environmental Law, (iv) the Company is not subject to any Order or proceeding relating to any Environmental Law or any Hazardous Material, (v) the Company has not manufactured, distributed, treated, stored, disposed of, arranged for or permitted the disposal of, transported, handled, released, or exposed any Person to, any Hazardous Material, or owned or operated any property or facility (including the Leased Premises) which is or has been contaminated by any Hazardous Material, so as to give rise to any material liability (contingent or otherwise) of the Company pursuant to any Environmental Laws, and (vi) the Company has not assumed, undertaken, become subject to or provided an indemnity with respect to any material liability (contingent or otherwise) of any other Person relating to Environmental Laws or Hazardous Materials. The Company has furnished to the Purchaser all environmental, health and safety audits, reports, and other material environmental documents relating to its past or current operations, properties or facilities which are in its possession or under its reasonable control.

 

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3.20     Real Estate.

 

(a)     Schedule 3.20(a) contains a complete and accurate list of all premises leased by the Company (the “Leased Premises”) for the operation of the Company’s business, excluding the use of facilities of Governmental Authority customers of the Company in accordance with the Current Government Contracts and use of home offices by employees of the Company in the Ordinary Course of Business of the Company (each an “Excluded Facility”), and of all leases, lease guaranties, and agreements (collectively, the “Leases”). The Company made available to the Purchaser a true and complete copy of each of the Leases, and in the case of any oral Lease, a written summary of the material terms of such Lease. The Leased Premises and the Excluded Facilities constitute all interests in real property currently owned, leased, used, occupied or currently held for use by the Company. The Leases (i) are valid, binding and enforceable obligations of the Company, and to the Knowledge of the Company, against the other party thereto, in accordance with their terms and are in full force and effect, except as enforceability may be limited by bankruptcy, insolvency or other Laws affecting creditors’ rights generally and the exercise of judicial discretion in accordance with general equitable principles; and (ii) other than as set forth on Schedule 3.5, the Company has no Knowledge of the occurrence of any event which (whether with or without notice, lapse of time or both or the happening or occurrence of any other event) would constitute a material default thereunder by the Company or any other party to such Lease. The Leased Premises are (i) in good operating condition and repair, subject to ordinary wear and tear (consistent with the age of such Leased Premises); (ii) not in need of maintenance or repair except for ordinary routine maintenance and repair; and (iii) to the Company’s Knowledge, structurally sound with no known defects.

 

(b)     To the Company’s Knowledge, the Leased Improvements are (i) structurally sound with no known material defects; (ii) in substantially good operating condition and repair, subject to ordinary wear and tear (consistent with the age of such items); (iii) not in need of material maintenance or repair except for ordinary routine maintenance and repair; and (iv) in conformity in all material respects with all applicable Laws relating thereto currently in effect. All of the Leased Improvements on the Leased Premises are located entirely on such Leased Premises.

 

3.21     No Other Agreement To Sell. Other than the sale of Assets in the Ordinary Course of Business of the Company and the transactions contemplated by this Agreement, the Company does not have any legal obligation, absolute or contingent, to any other Person (other than Purchaser under this Agreement) to sell, encumber or otherwise transfer the Company, the Interests, the Assets, or the business of the Company (in whole or in part), or to effect any merger, consolidation, combination, share exchange, recapitalization, liquidation, dissolution or other reorganization involving the Company, or to enter into any agreement with respect thereto.

 

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3.22     Transactions with Certain Persons. Except as set forth on Schedule 3.22, no current officer, manager or director of the Company, nor any member of any such individual’s immediate family is presently, or within the past three (3) years has been, a party to any transaction with the Company, including any Contract or other arrangement (a) providing for the furnishing of services by or to the Company; (b) providing for the rental of real or personal property from or to the Company; or (c) otherwise requiring payments from or to any such individual or any Person in which any such individual has an interest as an owner, officer, director, manager, trustee or partner or in which such Person has any direct or indirect interest (in each case, other than transactions involving services or expenses as directors, officers, equityholders or employees of the Company in the Ordinary Course of Business of the Company).

 

3.23     Employees. Schedule 3.23 includes a complete and accurate list of all employees of the Company as of January 6, 2020 showing for each as of that date the employee’s name, job title or description, salary level and also showing any bonus, commission (other than any such arrangements under which payments are at the discretion of the Company) paid during the fiscal year ending December 31, 2019, and listing any existing employment agreement with such employee (it being understood that all parties do not consider any “at-will” arrangements with employees to be employment agreements). With respect to all Persons classified by the Company as independent contractors during the last three (3) years, the Company has reported each such Person’s compensation on IRS Forms 1099 during such period when required to do so.

 

3.24     Labor Relations. Except as set forth on Schedule 3.24, the Company is not party to any collective bargaining agreement or other Contract with any group of employees, labor organization or other representative of any of the employees of the Company, and the Company has no Knowledge of any activities or proceedings of any labor union or other party to organize or represent such employees. Since January 1, 2017, there has not occurred or, to the Company’s Knowledge, been threatened in writing any strike, slow-down, picketing, work-stoppage, or other similar labor activity with respect to any such employees. Since January 1, 2017, the Company has not discharged, demoted, suspended, threatened, harassed or in any other manner discriminated against any employee who had previously submitted to his or her supervisor or anyone else in a position of authority with the Company any written or oral complaint, concern or allegation regarding any alleged unlawful or unethical conduct by the Company or its employees relating to accounting. There is not presently existing, and since January 1, 2017, there has not been any claim pending, or to the Company’s Knowledge presently threatened, related to unfair labor practices, employment discrimination, harassment, retaliation, equal pay or any other employment related matter arising under applicable Laws.

 

3.25     Brokers. Except as set forth on Schedule 3.25, no broker, finder or investment banker or other Person is directly or indirectly entitled to any brokerage, finder’s or other similar contingent fee or commission or any similar charge in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company or any of its Affiliates (for the avoidance of doubt, other than the Closing Bonus Payments and the UAR Payments).

 

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3.26     Privacy and Security.  Except as set forth in Schedule 3.26:

 

(a)     The Company’s past and present collection, use, retention, and dissemination of Personal Information complies with, in all material respects, and has not in any material respect violated (i) any Contract to which the Company is a party, (ii) any applicable Laws, including Privacy and Security Laws, or (iii) the Company privacy policy, except to the extent such non-compliance would not reasonably be likely to cause a Material Adverse Effect.

 

(b)     The Company has not received any written notice from any Governmental Authority that it is under investigation by any Governmental Authority for a violation of any Privacy and Security Law, which matter remains unresolved.

 

(c)     Complete and accurate copies of any written complaints delivered to the Company during the past twelve (12) months alleging a violation of any Privacy and Security Laws, have been made available to the Purchaser. 

 

(d)     To the Company’s Knowledge, since January 1, 2017, there have been no material data security breach of any computer systems or networks, or unauthorized use or disclosure of any Personal Information, owned, used, stored, received, or controlled by or on behalf of the Company, including any unauthorized use or disclosure of Personal Information that would constitute a breach for which notification to individuals and/or regulatory authorities is required under any applicable Privacy and Security Laws.

 

3.27     Government Contracts.

 

(a)     Schedule 3.27(a)(i) sets forth a current, complete, and accurate list of each Government Contract in which the Company is a seller of goods or services and the period of performance of which has not yet expired or been terminated and for which final payment has not yet been received. Schedule 3.27(a)(ii) sets forth a current, complete, and accurate list of each Government Contract in which the Company is receiving goods or services in excess of $100,000.00. Each of the Government Contracts set forth on Schedule 3.27(a) is in full force and effect and constitutes a legal, valid and binding agreement, enforceable in accordance with its terms against the Company and, to the Company’s Knowledge, all other parties thereto. The Company has not received written notice that any of the Government Contracts set forth on Schedule 3.27(a) is the subject of an ongoing bid or award protest proceeding and, to the Company’s Knowledge, no such Government Contract is reasonably likely to become the subject of a bid or award protest proceeding. The Company has made available to the Purchaser complete and correct copies of each Government Contract set forth on Schedule 3.27(a), including all related modifications. Schedule 3.27(a) sets forth a current, complete and accurate list of each Government Bid that is outstanding as of the date hereof.

 

(b)     Except as set forth on Schedule 3.27(b), no Government Contract was, at the time of award, dependent upon the Company’s representation that is was a small business concern or otherwise had a preferential status under a program administered by a Governmental Authority.

 

(c)     No Current Government Contract is required by its terms or Law to be terminated as a result of the consummation of this Agreement.

 

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(d)     With respect to each Government Contract and Government Bid:

 

(i)     The Company has complied in all material respects during the past three (3) years with the material terms and conditions of, and clauses incorporated in, each Government Contract and Government Bid. To the Company’s Knowledge, no event has occurred during the past six (6) years which, with the passage of time or the giving of notice or both, would result in a condition of material default or material breach in any material respect by the Company of a Government Contract.

 

(ii)     The Company has complied in all material respects during the past three (3) years with all Laws pertaining to each Government Contract or Government Bid, including without limitation the following Laws to the extent applicable: the Truth in Negotiations Act of 1962; the Service Contract Act of 1965; the Federal Acquisition Regulation (“FAR”) and any agency supplement thereto; and the Cost Accounting Standards. To the Company’s Knowledge, no event has occurred during the past six (6) years which, with the passage of time or the giving of notice or both, would result in a violation in any material respect of any Law pertaining to a Government Contract or Government Bid.

 

(iii)     During the past six (6) years, the Company has not submitted a Government Bid or been awarded a Government Contract based upon material misrepresentations or material inaccuracies in representations and certifications executed by the Company in connection therewith or contained on SAM.gov. The representations and certifications referenced in the preceding sentence have continued to be current, accurate, and complete in all respects to the extent required by the terms of a Government Contract or Law.

 

(iv)     During the past six (6) years, all invoices and claims for payment, reimbursement or adjustment, including without limitation requests for progress payments or provisional payments, submitted by or on behalf of the Company in connection with a Government Contract were current, accurate and complete in all material respects as of their applicable submission dates.

 

(v)     To the extent required by a Government Contract or Law, the Company during the past six (6) years has maintained systems of internal controls, including without limitation quality control systems, cost accounting systems, estimating systems, purchasing systems, proposal systems, billing systems and management systems, that are in compliance in all material respects with all Laws and all material requirements of any Government Contracts.

 

(vi)     Within the past six (6) years, no Government Contract has been terminated for convenience or default, and, to the Company’s Knowledge, no such termination is reasonably likely to occur. The Company is not a party to any termination for convenience claim against a Governmental Authority.

 

(vii)     During the past six (6) years, the Company has not received any written cure notice or show cause notice regarding performance of a Government Contract or any written notice of, claim for, or assertion of, a condition of material default, breach of contract, or violation of Law in connection with a Government Contract or Government Bid. The Company is not a party to any Claim, dispute, or other proceeding with respect to such default, breach or violation.

 

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(viii)     During the past six (6) years, there has not been any withholding or setoff of any material payments by a Governmental Authority or prime contractor or higher-tier subcontractor, due under any Government Contract on any basis, including without limitation the basis that a cost incurred or invoice rendered by the Company was questioned or disallowed by a Governmental Authority, prime contractor or higher-tier subcontractor or any of their audit representatives.

 

(ix)     The Company has not received any materially adverse or negative past performance evaluations or ratings in writing within the past six (6) years.

 

(x)     All costs, fees, profit and other charges and expenses of any nature that have been charged during the past six (6) years were in all material respects properly chargeable to the Company’s Government Contracts, were in all material respects charged in amounts consistent with the requirements of such Government Contracts and Law, and there are no pending or threatened (in writing or to the Company’s Knowledge orally) refunds, reimbursements, withholdings or setoffs, or adjustments including, without limitation any cost disallowances, which will result in a material loss to the Company.

 

(xi)     During the past six (6) years the Company has complied with the notice and pricing requirements of the price reduction clause in each multiple award schedule Government Contract to the extent applicable and, to the Company’s Knowledge, there are no facts or circumstances that would reasonably be expected to result in a material demand by a Governmental Authority for a refund based upon the Company’s failure to comply with the price reductions clause in any material respect during the past six (6) years.

 

(xii)     To the Company’s knowledge, each of its employees, during the past three (3) years has complied in all material respects with all timekeeping/time recordation requirements of the applicable Government Contracts.

 

(e)     Except as otherwise set forth on Schedule 3.27(e), with respect to any Government Contract or Government Bid:

 

(i)     There is no current pending claim or, to the Company’s Knowledge, reasonable basis to give rise to any claim against the Company for fraud or under the United States civil or criminal False Claims Acts or the United States Procurement Integrity Act.

 

(ii)     During the past six (6) years, the Company has received no document requests, subpoenas, search warrants or civil investigative demands addressed to or requesting information involving the Company in connection with or related to any Government Contract or Government Bid that have been or are reasonably expected to be materially adverse to the Company.

 

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(iii)     During the past six (6) years, the Company has not received in writing notice of any administrative, civil or criminal investigation, indictment or criminal information, or audit by a Governmental Authority (other than routine audits by Defense Contract Audit Agency (“DCAA”) in the ordinary course of business) with respect to any Government Contract or Government Bid, including without limitation any audit relating to a suspected, alleged, or possible violation of United States civil or criminal False Claims Acts or the United States Procurement Integrity Act, provision of defective or non-compliant products or services, mischarging of prices or costs, misstatements of fact, or other acts, omissions or irregularities relating to any Government Contract or Government Bid that has been or is reasonably expected to be materially adverse to the Company.

 

(iv)     During the past six (6) years, neither the Company nor any other Person has conducted any internal audit or investigation (whether or not any outside legal counsel, auditor, accountant or investigator was engaged) with respect to any suspected, alleged or possible violation of Law related to any Government Contract or Government Bid that has been or is reasonably expected to be materially adverse to the Company.

 

(v)     During the past six (6) years, the Company has not made any disclosure to a Governmental Authority under FAR Subpart 3.1003 or FAR clause 52.203-13.

 

(vi)     During the past six (6) years, the Company has not made a written voluntary disclosure to any Governmental Authority with respect to any suspected, alleged or possible material breach, violation, mischarging, misstatement or other improper act or omission arising under or relating to any Government Contract or Government Bid.

 

(vii)     The practices and procedures used by the Company in estimating costs and pricing proposals and accumulating, recording, segregating, reporting and invoicing costs in connection with a Government Contract or Government Bid are in compliance in all material respects with applicable Laws, including without limitation FAR Part 31 and all applicable Cost Accounting Standards and related regulations, to the extent any such requirements are applicable, and during the past six (6) years the Company has not been notified in writing of any audit by a Governmental Authority (including without limitation DCAA) that has questioned such costs or identified any other failure to comply with contractual requirements or Law.

 

(f)     Schedule 3.27(f) lists each final written audit report or, if no final report is available, draft audit report, received by the Company during the past six (6) years issued by any Governmental Authority (including without limitation DCAA) with respect to any Government Contract, Government Bid or any direct or indirect cost or other accounting practice of the Company. The Company has made available to the Purchaser correct and complete copies of each such report.

 

(g)     Neither the Company or any “Principal” (as defined in FAR clause 52.209-5) of the Company during the past six (6) years has been or is the subject of a debarment, notice of proposed debarment, suspension or exclusion from participation in programs funded by any Governmental Authority or in the award of any Government Contract.

 

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(h)     The Company has not been formally determined by a Governmental Authority to be non-responsible for award of a Government Contract within the past six (6) years.

 

(i)     Neither the Company nor any of its Principals (as defined at FAR clause 52.209-5) has, within the past six (6) years, been convicted of or had a civil judgment rendered against them for: (A) commission of fraud or a criminal offense in connection with the obtaining, attempting to obtain, or performing of a Government Contract; (B) violation of federal or state antitrust statutes relating to submission of offers; or (C) commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, violating federal criminal tax laws, or receiving stolen property; or been notified of any delinquent federal taxes in an amount that exceeds $3,000 for which the liability remains unsatisfied. Neither the Company nor any of its Principals (as defined at FAR clause 52.209-5) is presently indicted for, or otherwise criminally or civilly charged by a governmental entity with the commission of any of the foregoing offenses.

 

(j)     The Company does not have any outstanding requests for equitable adjustment or material claims asserted by or against a Governmental Authority or any prime contractor, subcontractor, vendor or other third party arising under or relating to a Government Contract or Government Bid.

 

(k)     There are no material outstanding disputes between the Company, on the one hand, and any Governmental Authority or any prime contractor or higher-tier subcontractor for which the Company serves as a subcontractor, on the other hand, under the Contract Disputes Act or any other Law governing disputes arising under such Government Contracts.

 

(l)     There are no material outstanding disputes between the Company, on the one hand, and any lower-tier subcontractor or vendor, on the other hand, arising under or relating to any such Government Contract or Government Bid.

 

(m)     There are no financing arrangements or assignments of payments owed under any currently active Government Contract.

 

(n)     Except as otherwise set forth on Schedule 3.27(n), with respect to any Government Contract or Government Bid, the Company is not required to perform with individuals possessing a personnel security clearance and the Company is not required to maintain a facility security clearance.

 

(o)     During the past six (6) years, the Company has not made a report of a cybersecurity incident under Defense Federal Acquisition Regulation Supplement (“DFARS”) clause 252.204-7012(c) or other applicable cybersecurity requirement relating to the Government Contracts. The Company is in compliance in all material respects with the requirements set forth in DFARS clause 52.204-7012, to the extent applicable, or other applicable cybersecurity requirements relating to the Government Contracts.

 

(p)     Except as otherwise set forth on Schedule 3.27(p):

 

(i)     During the past six (6) years, the Company is not using and has not used, any intellectual property developed under any Government Contract for purposes outside of the scope of that Government Contract, to the extent such use is prohibited by the Government Contract or Law. The Company has not transferred title to any intellectual property under any Government Contract except where it was required to do so under such Government Contract or Law.

 

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(ii)     During the past six (6) years, the Company has taken all steps required under any Government Contracts or Law to protect its rights in and to any intellectual property owned by or licensed to the Company as is necessary to the Company’s business and has included the required restrictive legends on all copies of any intellectual property delivered in connection with a Government Contract.

 

(q)     Schedule 3.27(q) identifies all Contractor Performance Assessment Reporting System (CPARS) reports received for any active Contract, including the scores received under each Contract.

 

(r)     Schedule 3.27(r) lists all contracts awarded on the basis of Full & Open (“F+O”) competition as set forth in the Competition for Contracting Act, 41 U.S.C. 253(a).

 

(s)     Schedule 3.27(s) lists all outstanding proposals, and indicates whether such procurement is being conducted on an F+O basis or is set aside for small businesses, whether such procurement is being solicited on an unrestricted basis or set-aside basis, including indicating whether as a small business, 8(a) or otherwise.

 

3.28     Customers and Suppliers. Schedule 3.28 lists, by dollar volume paid for the year ended on December 31, 2018, the ten (10) largest suppliers of goods or services (including suppliers of leased real property) (“Material Suppliers”) and the fifteen (15) largest customers of the Company (“Material Customers”). Except as set forth on Schedule 3.28, within the last twelve (12) months, no Material Customer or Material Supplier has provided written, or to the Company’s Knowledge oral, notice stating that any such Material Customer or Material Supplier intends to cease being a customer or supplier, as applicable, of the Company, or intends to decrease the rate of, or change the terms in a manner adverse to the Company with respect to, buying or supplying, as applicable, products and services from or to the Company (whether as a result of the consummation of the transactions contemplated hereby or otherwise, but other than pursuant to a Contract’s expiration pursuant to the terms of such Contract). Except as set forth on Schedule 3.28, the Company has no liability or obligation (contingent or otherwise) with respect to any customer rebate.

 

3.29     Bank Accounts. Schedule 3.29 lists the names and locations of all banks and other financial institutions with which the Company maintains an account (each, a “Bank Account”), or at which a Bank Account is maintained to which the Company has access as to which deposits are made on behalf of the Company, in each case listing the Bank Account number therefor, and the names of all Persons authorized to draw thereupon or have access thereto and lists the locations of all safe deposit boxes used by the Company.

 

3.30     Events Subsequent. Except as set forth on Schedule 3.30 and matters related to the transactions contemplated pursuant to this Agreement, since June 30, 2019: (a) the Company has conducted its business only in the Ordinary Course of Business of the Company, and (b) there has not been any change in or development with respect to the Company’s business, operations, condition (financial or otherwise), results of operations, assets or liabilities, except for changes and developments which have not had, and would not reasonably be expected to have, a Material Adverse Effect.

 

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3.31     Full Disclosure. To the Company’s Knowledge, no representation or warranty by the Company in this Agreement (including the Disclosure Schedules hereto), or in any statement or certificate which is furnished or to be furnished to the Purchaser pursuant to Section 7.1, (i) contains or will contain any untrue statement of a material fact, or (ii) omits or will omit to state, when read in conjunction with all of the information contained in this Agreement (including the Disclosure Schedules hereto) or in any statement or certificate which is furnished or to be furnished to the Purchaser in connection with the Closing, any fact, necessary to make the statements or facts contained therein not misleading.

 

3.32     No Other Representations and Warranties. Except for the representations and warranties contained in Section 2 or this Section 3 (including the Disclosure Schedules hereto), neither the Company nor any Seller nor any other Person: (a) makes any representation or warranty, express or implied, as to condition, merchantability, suitability or fitness for a particular purpose of any of the Assets, or (b) makes any representation or warranty, express or implied, as to the accuracy or completeness of any information regarding the Company or the business of the Company (including any representation or warranty of any kind or nature whatsoever concerning or as to the accuracy or completeness of any projections, budgets, forecasts or other forward-looking financial information concerning the future revenue, income, profit or other financial results of the Company).

 

4.     REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.

 

The Purchaser represents and warrants to the Company and the Sellers the following matters, as of the Execution Date:

 

4.1     Organization. The Purchaser is a corporation duly incorporated, validly existing and in good standing under the Laws of the State of Delaware, and is qualified or registered to do business in each jurisdiction in which the nature of its business or operations would require such qualification or registration, except where the failure to be so qualified or registered would not cause a Purchaser Material Adverse Effect.

 

4.2     Necessary Authority. The Purchaser has full power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party, to perform its obligations hereunder and thereunder, and, subject to the Required Statutory Approvals, to consummate the transactions contemplated hereby and thereby. This Agreement and the other Transaction Documents to which the Purchaser is a party have been duly authorized, executed and delivered by such Person and constitute the legal, valid and binding obligations of such Person enforceable against such Person in accordance with its terms and conditions, subject only to applicable bankruptcy, insolvency or other Laws affecting creditors’ rights generally and the exercise of judicial discretion in accordance with general equitable principles. The individual(s) executing this Agreement and any Transaction Document to which the Purchaser is a party, has the full right, power and authority to execute and deliver this Agreement and any Transaction Document to which such Person is a party, and upon execution, no further action will be needed to make this Agreement and any Transaction Document to which such Person is a party valid and binding upon, and enforceable against, such Person.

 

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4.3     No Conflicts. The execution, delivery and performance by the Purchaser of this Agreement and the other Transaction Documents to which the Purchaser is a party, and the consummation of the transactions contemplated herein or therein do not, assuming the receipt of the Required Statutory Approvals: (a) violate the Charter or Governing Documents of the Purchaser, (b) require the Purchaser to obtain the consent or approvals of, or make any filing with, any person or public authority, except for consents and approval already obtained and notices or filings already made, (c) violate any Law or (d) constitute or result in the breach of any provision of, or constitute a default under, any contract to which the Purchaser is a party or by which its assets are bound.

 

4.4     Brokers. No broker, finder or investment banker or other person is directly or indirectly entitled to any brokerage, finder’s or other fee or commission or any similar charge in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Purchaser.

 

4.5     Litigation; Compliance with Law. There is no Claim or Order of any nature, pending, rendered or, to the Purchaser’s Knowledge, threatened in writing, against the Purchaser that reasonably would be expected to adversely affect the Purchaser’s ability to consummate the transactions contemplated by this Agreement.

 

4.6     Solvency; Ability to Perform Agreement. Purchaser will have available funds on the Closing Date necessary to pay the Purchase Price and to pay all related transaction expenses payable by Purchaser. Purchaser will not become insolvent as a result of consummating the transactions contemplated by this Agreement.

 

4.7     No Foreign Ownership. No foreign government, agency of a foreign government, or representative of a foreign government; no business enterprise or other entity organized, chartered or incorporated under the laws of any country other than the United States or its territories; nor any person who is not a citizen or national of the United States (each a “Foreign Interest”) (a) individually or in the aggregate with other Foreign Interests, owns or has a beneficial ownership of five percent (5%) or more of the Purchaser or if the Purchaser does not issue stock, indirectly or directly, subscribed for five percent (5%) or more of the Purchaser’s total capital commitment, or (b) has the power, direct or indirect, whether or not exercised, and whether or not exercisable through the ownership of the Purchaser, by contractual arrangements or other means, to direct or decide matters affecting the management or operations of the Purchaser. Except as set forth on Schedule 4.7, The Purchaser, directly or indirectly through subsidiaries or Affiliates, does not own five percent (5%) or more of any Foreign Interest. The Purchaser acknowledges the restrictions that affiliation with or significant influence by a Foreign Interest may put on the prospects of the Company, and shall fully comply with the Law with respect to mitigation of any such affiliation or influence of such Foreign Interest. The Purchaser further acknowledges that the Company shall not have liability for any breach of any representation or warranty to the extent such breach results from the Purchaser or any of its Affiliates having any direct or indirect foreign ownership.

 

4.8     Investment Intent. The Purchaser is acquiring all of the Interests for its own account and not with a view to any resale or distribution within the meaning of Section 2(11) of the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

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4.9     No Other Representations and Warranties. Except for the representations and warranties contained in this Section 4 (including the Disclosure Schedules hereto), the Purchaser makes no express or implied representation or warranty.

 

5.     COVENANTS OF THE PARTIES.

 

5.1     Affirmative Covenants of the Company. The Company hereby covenants and agrees that, from the Execution Date through and including the Closing Date or earlier termination of this Agreement pursuant to Section 8.1 (the “Interim Period”), unless otherwise expressly contemplated by this Agreement or consented to in writing by the Purchaser (which consent will not be unreasonably withheld, conditioned or delayed, and will be deemed granted if the Company sends an electronic mail notice to the Purchaser that references this Section 5.1 and the Purchaser does not affirmatively approve or deny the such request for consent within two (2) Business Days), the Company will use commercially reasonable efforts to operate the business of the Company in its Ordinary Course of Business, in all material respects, provided, however, that the Company may (i) take any actions to ensure that the Company complies with applicable Laws and Contracts; and (ii) take any actions contemplated under this Agreement or that may be deemed reasonably necessary to consummate the transactions contemplated by this Agreement prior to or on the Closing Date.

 

5.2     Negative Covenants of the Company Parties. During the Interim Period, except (i) as expressly contemplated by this Agreement, (ii) as set forth in Schedule 5.2, or (iii) as otherwise consented to in writing by the Purchaser (which consent will not be unreasonably withheld, conditioned or delayed, and will be deemed granted if the Company sends an electronic mail notice to the Purchaser that references this Section 5.2 and the Purchaser does not affirmatively deny or consent to the request within two (2) Business Days), or as necessary to ensure the Company’s compliance with applicable Laws and Contracts, during the Interim Period, the Company will not do any of the following:

 

(a)     (i) increase the compensation payable to or to become payable to any of its directors, officers or employees (other than pursuant to an existing agreement or arrangement or ordinary increases consistent with the Company’s past practice); (ii) grant any severance or termination pay (other than pursuant to existing employment agreement, severance arrangements or policies or any Benefit Plans as in effect on the Execution Date) to, or enter into or modify any employment, change-in-control or severance agreement with, any of its directors, officers or employees (except with respect to agreements related to Closing Bonus Payments or the UAR Payments); or (iii) adopt or amend any Benefit Plan, in each case except as may be required by applicable Law or in connection with an annual renewal;

 

(b)     (i)  redeem, repurchase or otherwise reacquire any of its equity securities, liquidate, dissolve or effect any reorganization or recapitalization; or (ii) split, combine or reclassify any of its equity or issue or authorize or propose the issuance of any of its equity securities;

 

(c)     issue, pledge, deliver, award, grant or sell, or authorize or propose the issuance, pledge, delivery, award, grant or sale (including the grant of any encumbrances) of, any Interests, any securities convertible into or exercisable or exchangeable for any such Interests, or any rights, warrants or options to acquire, any such Interests;

 

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(d)     (i) acquire or agree to acquire, or merge or consolidate with, by purchasing an equity interest in or a portion of the assets of, or by any other manner, any business or any corporation, partnership, association or other business organization or division thereof, or otherwise acquire or agree to acquire any assets of any other Person; (ii) enter into any joint venture, partnership; or (iii) make or commit to make any investments in any other Person;

 

(e)     propose or adopt any amendments to the Charter or Governing Documents of the Company;

 

(f)     make any material change in any of its methods of accounting or in any accounting policy, except as may be required by Law, the FAR or GAAP;

 

(g)     make any capital expenditures, capital additions or capital improvements in excess of $250,000 other than (i) expenditures for emergency maintenance and repair, or (ii) expenditures in the Ordinary Course of Business of the Company;

 

(h)     enter into any collective bargaining agreement;

 

(i)     change any material Tax election, change any annual Tax accounting period, change any material method of Tax accounting, enter into any closing agreement with respect to any material Tax, settle any material Tax claim or assessment or surrender any right to claim a material Tax refund;

 

(j)     pay, discharge or satisfy any material claims, liabilities or obligations except the payment, discharge or satisfaction of (i) liabilities or obligations in the Ordinary Course of Business of the Company or in accordance with the terms of a Contract as in effect on the Execution Date or (ii) claims settled or compromised to the extent permitted by Section 5.2(k), or waive, release, grant or transfer any rights of material value or modify or change in any materially adverse respect any Material Contract, other than in the Ordinary Course of Business of the Company;

 

(k)     settle or compromise any Claim, other than Claims in an individual amount to be paid by the Company that do not exceed $250,000; provided, that such settlement documents related to any such settlement do not involve any material non-monetary obligations on the part of the Company or the Purchaser; or

 

(l)     take, or offer or propose to take, or agree to take in writing or otherwise, any of the actions described in this Section 5.2 without the prior written consent of the Purchaser.

 

Notwithstanding the foregoing or anything herein to the contrary, if during the Interim Period, the Company or the Purchaser have commenced any litigation type action against the other party (including arbitration, a lawsuit, or any administrative type proceeding), then the Company shall not be required to comply with its obligations under this Section 5.2.

 

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5.3     Copy of Virtual Data Room and Electronic Files. On the Closing Date, the LLC Seller will deliver to the Purchaser, and shall retain a copy, on one or more USB electronic storage devices, a complete and accurate (as of the date of delivery) electronic copy of its virtual data room (“VDR”) hosted by Merrill DatasiteOne with respect to the transactions contemplated by this Agreement. Neither the Company nor any Seller makes any representation or warranty of any kind, express or implied, regarding the validity, accuracy or completeness of any information in such VDR or the electronic copy of such VDR except as expressly set forth in Sections 2 and 3 of this Agreement; provided, however, to the extent this Agreement or the Disclosure Schedules makes reference to an item that is provided in the VDR, the Purchaser shall be entitled to rely on the copy therein as a valid, true, accurate and complete copy thereof.

 

5.4     Access. Subject to applicable Law, during the Interim Period, the Company will provide the Purchaser and its Representatives, for the purpose of confirming the Company’s satisfaction of the conditions set forth in Section 6.1, with access to the books and records of the Company, and, subject to the receipt of reasonable prior written notice from the Purchaser, and with the prior written consent of the Company’s President or her authorized designee(s) (which consent will not be unreasonably withheld or delayed), to the Assets, and to the officers, employees, agents and accountants of the Company, in each case, in a manner that does not interfere with the business of the Company. Any information or knowledge obtained in any investigation pursuant to this Section 5.4 that is Confidential Information is subject to Section 5.6 and shall not be used for any purpose unrelated to the consummation of the transactions contemplated by this Agreement. Notwithstanding anything herein to the contrary, the Purchaser is not authorized to and shall not (and shall not permit any of its employees, agents, Representatives or Affiliates to) contact any officer, director, employee, customer, supplier, distributor, vendor or other business relation of the Company prior to the Closing without the prior written consent and coordination of the LLC Seller.

 

5.5     No Negotiations. The Company and the Sellers acknowledge and agree that the Purchaser has made and shall continue to make substantial expenditures of time, effort and expense in connection with its due diligence efforts and the consideration and negotiation of the transactions contemplated by this Agreement. During the Interim Period, the Company and the Sellers will refrain, and will cause their Representatives to refrain from taking any action (i) to solicit or initiate the submission of any proposal or indication of interest from any Person (other than the Purchaser) with respect to an acquisition of a significant portion of the outstanding Interests or material Assets, or any merger, consolidation, combination, equity exchange, recapitalization, liquidation or dissolution involving, the Company (an “Alternative Proposal”), (ii) to intentionally participate in any discussions or negotiations regarding, or furnish to any Person any information with respect to, or that may reasonably be expected to lead to, an Alternative Proposal (or any proposal or indication of interest relating thereto) with any Person (other than the Purchaser) or (iii) to authorize, engage in, or enter into any agreement or understanding (other than with the Purchaser) with respect to an Alternative Proposal with any Person.

 

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5.6     Mutual Covenants Regarding Confidentiality. Prior to the Closing, the Confidentiality Agreement, dated as of August 5, 2019, by and between Robert W. Baird & Co. Incorporated, on behalf of the Company, and ICF Consulting Group, Inc., an Affiliate of the Purchaser (the “Confidentiality Agreement”), shall apply with respect to information furnished by the Company, the Sellers, or their Representatives thereunder or hereunder. If this Agreement is, for any reason, terminated prior to the Closing, the Confidentiality Agreement and the provisions of this Section 5.6 shall nonetheless continue in full force and effect. From and after the Closing, the Sellers will keep confidential and not reveal, report, publish, disclose or transfer any information obtained by the Sellers in connection with this Agreement, including information regarding the negotiations of this Agreement and the amount of the Purchase Price, other than to its Representatives who have a need to know such information (the “Confidential Information”), and will use such Confidential Information solely in connection with the transactions contemplated by this Agreement.  Notwithstanding the foregoing limitations (but without modifying the Confidentiality Agreement), no party to this Agreement will be required to keep confidential information that (a) is known or available through other lawful sources not bound by a confidentiality obligation, directly or indirectly, with the Purchaser or otherwise prohibited from disclosing such information, (b) is or becomes publicly known or generally known in the industry through no fault of the Sellers or his, her or its Representatives, (c) is developed by any Seller or the Purchaser, as applicable, independently of the disclosure by the disclosing party without reliance on the Confidential Information, (d) is required to be disclosed pursuant to Law (including securities Laws of any jurisdiction and rules and regulations of any applicable stock exchange), provided the non-disclosing party is given reasonable prior notice or consents thereto, (e) relates solely to the income Tax aspects and consequences of the transactions contemplated by this Agreement; (f) is disclosed in connection with the Purchaser’s or any Seller’s, as applicable, performance, enforcement and/or defense of any rights or obligations under this Agreement, the Transaction Documents or in connection with the transactions contemplated hereby or thereby or (g) is disclosed in connection with any Individual Seller’s duties as an employee of the Company or the Purchaser (if applicable).

 

5.7     Mutual Covenants Regarding No Inconsistent Action. During the Interim Period, none of the parties hereto will take any intentional action or make any intentional omission (i) which is materially inconsistent with its obligations under this Agreement, (ii) that would make it impossible or impracticable for a condition herein to be satisfied, or (iii) that would materially hinder or delay the consummation of the transactions contemplated by this Agreement.

 

5.8     Post-Closing Employee Benefits and Business.

 

(a)     The Purchaser will cause the Company to provide employees of the Company (“Continuing Employees”), for a period of one (1) year following the Closing Date, with comparable wages or salary, and comparable annual bonus opportunities or values, and with benefits and compensation plans that are comparable, in the aggregate, to those provided by the Company prior to the Closing (excluding equity awards and awards under the UAR Plan and Closing Bonus Payments).

 

(b)     The Purchaser may satisfy its obligations under Section 5.8(a) with respect to any Continuing Employee after the Closing Date by providing (to the extent a comparable Benefit Plan is not continued after the Closing Date) that such Continuing Employee shall be eligible to participate in Purchaser’s or any of its Affiliate’s retirement and welfare benefit plans (“Purchaser Employee Plans”) on terms that are comparable in the aggregate to those offered to similarly situated employees of Purchaser or any of its Affiliates; provided that such Purchaser Employee Plans provide such benefits that are comparable in the aggregate to the applicable Benefit Plans in which such Continuing Employee participated immediately prior to the Closing Date and which are terminated upon the Closing Date; provided, that the foregoing shall not operate to result in a duplication of benefits.

 

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(c)     Nothing contained herein, whether express or implied, will (i) obligate Purchaser, the Company or any Affiliate of either to retain any Continuing Employees for any specific period, (ii) be treated as an amendment or other modification of any Benefit Plan, or (iii) limit the right of Purchaser, the Company or any Affiliate of either to amend, terminate or otherwise modify any Benefit Plan following the Closing. Purchaser and the Company acknowledge and agree that all provision contained in this Section 5.8 with respect to the Continuing Employees are included for the sole benefit of Purchaser, and the Company, and that nothing herein, whether express or implied, shall create any third party beneficiary or other rights (x) in any Person, including any employees or former employees of the Company, any participant in any Benefit Plan, or any dependent or beneficiary thereof, or (y) to continued employment with Purchaser, the Company or any Affiliate of either.

 

5.9     Mutual Covenants Regarding Further Action; Efforts.

 

(a)     During the Interim Period, each of the parties will use their commercially reasonable efforts to take, or cause to be taken, all appropriate action, and do, or cause to be done, all things necessary, proper or advisable to consummate and make effective the transactions contemplated by this Agreement in the most expeditious manner practicable, including (i) preparing and filing all forms, registrations and notices required to be filed, performing all necessary actions or nonactions, and obtaining all necessary waivers, consents and approvals from Governmental Authorities and making all necessary registrations and filings (including filings with Governmental Authorities) and taking all reasonable steps as may be necessary to obtain an approval or waiver from, or to avoid an action or proceeding by, any Governmental Authority, (ii) obtaining all necessary consents, approvals or waivers from third parties, (iii) defending any lawsuits or other Claims, whether judicial or administrative, challenging this Agreement or the consummation of the transactions contemplated hereby, and (iv) executing and delivering any additional instruments necessary to consummate the transactions contemplated hereby.

 

(b)     Prior to the date hereof, the Purchaser and Shadi Michelle Branch filed a Notification and Report Form under the HSR Act with the Federal Trade Commission (the “FTC”) and the Antitrust Division of the Department of Justice (the “DOJ”). The Purchaser and the Sellers shall split all filing fees related to compliance with the HSR Act in connection with transactions contemplated hereby. Each party will be responsible for its respective preparation costs and other expenses (including attorneys’ fees) in connection therewith. Subject to applicable Laws and the preservation of any applicable attorney-client privilege, Purchaser and the Sellers each shall promptly (i) supply the other with any information which may be required in order to effectuate such filings, (ii) supply any additional information which reasonably may be required by the FTC or the DOJ, and (iii) make any further filings pursuant thereto that may be necessary, proper or advisable in connection therewith. Purchaser will take any and all steps necessary to avoid or eliminate each and every impediment under any Law that may be asserted by any Governmental Authority or any other Person so as to enable the parties to expeditiously close the transactions contemplated hereby.

 

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(c)     During the Interim Period, each of the Purchaser and the Company shall, in connection with the efforts referenced in Section 5.9(a) and Section 5.9(b), obtain all requisite approvals and authorizations and the other transactions contemplated by this Agreement under the HSR Act or any other Regulatory Law, and shall use its Reasonable Best Efforts to (i) cooperate in all respects with each other in connection with any filing or submission and in connection with any request by the FTC or DOJ for additional information and documents or any investigation or other inquiry, including any proceeding initiated by a private party, (ii) promptly inform the other party of any material communication received by such party from, or given by such party to, the FTC, the DOJ or any other Governmental Authority and of any material communication received or given in connection with any proceeding by a private party, in each case regarding any of the transactions contemplated by this Agreement, (iii) permit the other party to review any communication given by it to, or received from, and consult with each other in advance of any meeting or conference with, the FTC, the DOJ or any such other Governmental Authority or, in connection with any proceeding by a private party, with any other Person, and to the extent permitted by the FTC, the DOJ or such other applicable Governmental Authority or other Person, give the other party the opportunity to attend and participate in such meetings and conferences; provided however, that the parties may comply with this Section 5.9(c) by designating that certain sensitive information shall only be shared with the respective parties’ outside legal counsel, and (iv) promptly respond to inquiries from the FTC, the DOJ or any other Governmental Authority regarding the legality under any antitrust Law of the transactions contemplated by this Agreement; provided, however, that all obligations in this Section 5.9(c) shall be subject to applicable Laws relating to exchange of information and attorney-client communication and privileges. 

 

(d)     During the Interim Period, each of the parties will promptly notify the others in writing of any pending or, to the Knowledge of such party, threatened in writing, action, proceeding or investigation by any Governmental Authority or any other Person (i) challenging or seeking damages in connection with the transactions contemplated hereby or (ii) seeking to restrain or prohibit the consummation of the transactions contemplated hereby.

 

(e)     The Purchaser and the Company shall use their respective Reasonable Best Efforts to obtain, during the Interim Period and as soon as possible following the Execution Date, confirmation from the applicable Governmental Authorities that they will not recommend that the Company’s security clearances (as applicable) be revoked, suspended or downgraded as a result of the consummation of the transactions contemplated by this Agreement. The Company shall and shall cause its employees to make all filings or notifications or such other actions as are necessary or appropriate in order to prevent the security clearances of the Company and their employees from being revoked, suspended or downgraded.

 

(f)     During the Interim Period, the Purchaser shall use its Reasonable Best Efforts to promptly review and provide comments to drafts of closing deliverables required to be delivered by the Company or the Sellers pursuant to Section 7.1 and otherwise ensure that Closing is not unreasonably delayed.

 

5.10     Tail Policy.

 

(a)     The Company will purchase, on or before Closing, a six (6) year prepaid “run-off policy” on terms and conditions providing substantially equivalent benefits as the current policies of directors’ and officers’ liability, professional liability and errors and omissions insurance, and employment practices liability insurance maintained by the Company with respect to matters existing or occurring at or prior to the Closing Date (including the transactions contemplated by this Agreement) (the “Tail Policy”), with the cost of such Tail Policy borne 50% by the LLC Seller (as a Company Transaction Expense) and 50% by the Purchaser.

 

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(b)     For a period of six (6) years after the Closing Date, the Company shall not amend or modify the indemnification or liability exculpation provisions in either of the Company’s Charter or the Governing Documents, in each case in any way adverse to each Person who is now, or has been at any time prior to the Execution Date, a Person covered by such indemnification or liability exculpation provisions; provided, however, that the Seller shall only be entitled to such indemnification and exculpation provisions for the period preceding the Closing Date to the extent covered under the Tail Policy.

 

5.11     Closing Date Actions. The Purchaser covenants that it will not and will not cause or permit the Company to: (a) take any action on the Closing Date other than in the Ordinary Course of Business of the Company prior to the Effective Time, (b) on the Closing Date, distribute Cash or any other Assets, make dividends, incur Indebtedness that would affect Net Working Capital, Indebtedness or Cash on the Closing Date or make cash payments to, incur liabilities from or enter into transactions with, the Purchaser or an Affiliate of the Purchaser or with any other Person that is not in the Ordinary Course of Business of the Company prior to the Closing; (c) take or fail to take any action that would result in a reduction of, or a decrease in, or otherwise affect Net Working Capital on the Closing Date except for payments by the Company in the Ordinary Course of Business of the Company prior to the Effective Time or as expressly contemplated by this Agreement; or (d) take any action that is reasonably likely to result in a Tax liability to any Seller.

 

5.12     Purchaser’s Acknowledgment. Purchaser acknowledges and agrees that none of the Sellers, the Company, their respective Affiliates nor their Representatives has made any representations or warranties regarding the Sellers, the Company, or the Company’s business operations, the assets or operations of the Company’s business, the Interests, or otherwise in connection with the transactions contemplated by this Agreement, other than the representations and warranties expressly made by the Sellers and the Company in Section 2 and Section 3, respectively, and the Purchaser agrees it has relied solely on its own examination and investigation and the representations and warranties of the Sellers and the Company set forth in Section 2 and Section 3, respectively (including the Disclosure Schedules). Without limiting the generality of the foregoing, the Purchaser acknowledges and agrees that no projections, forecasts, predictions, other estimates, data, financial information, documents, reports, statements (oral or written), summaries, abstracts, descriptions, presentations (including any management presentation or facility tour), memoranda, or offering material with respect to the Company or the Company’s business, or the Interests, is or shall be deemed to be a representation or warranty by the Company or the Sellers to the Purchaser, under this Agreement, or otherwise, and that the Purchaser has not relied thereon in determining to execute this Agreement and proceed with the transactions contemplated hereby. The Purchaser acknowledges that, except for the representations and warranties expressly made by the Sellers and the Company in Section 2 and Section 3, respectively, no Person has been authorized by the Sellers or the Company to make any representation or warranty regarding the Sellers, the Company, the Company’s business, the assets or operations of the Company, the Interests or the transactions contemplated hereby and, if made, such representation or warranty may not be relied upon as having been authorized by the Sellers or the Company. 

 

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5.13     Restrictive Covenants.

 

(a)     As an inducement to the Purchaser to enter into this Agreement, from the Closing Date until the fifth anniversary of the Closing Date, without the prior written consent of the Purchaser, the Sellers will not:

 

(i)     anywhere in the geographic area where the Company conducts business as of the Closing Date, engage as a stockholder, owner, partner, joint venturer, or in a managerial capacity (whether as a director, officer, employee, independent contractor, consultant or advisor) in any business which, in competition with the Company, sells or provides any products or services that are the same as or substantially similar to those sold or provided by the Company as of immediately prior to the Closing to any Covered Customer (such business, a “Competing Business”). For purposes of this Agreement, a “Covered Customer” means an existing customer or prospective customer of the Company as of immediately prior to the Closing (including any prospective customer to which an outstanding bid or proposal exists at Closing) or any customer or prospective customer of the Company during the twelve (12) months prior to the Closing Date (including any prospective customer to which a bid or proposal has been made during the twelve (12) months prior to the Closing Date). For purposes of this Section 5.13, the term “Covered Customer” includes, (i) any U.S. Government agency or (ii) any Person selling the Company’s products or services to a U.S. Government agency or ultimately for the benefit of a U.S. Government agency, in each case, to the extent the definition of Covered Customer is otherwise satisfied; provided, that with respect to a U.S. Government agency, “customer” means the top-tier division, subdivision, sub-agency, department, directorate or other similar designation within such U.S. Government agency for the applicable program or contract award, and also including, for the avoidance of doubt, all program offices and personnel that report to or support such top-tier division, subdivision, sub-agency, department, directorate or other similar designation within such U.S. Government agency for the applicable program or contract award;

 

(ii)     make any direct investment (whether equity, debt or other) or provide any guaranty to, any Competing Business, except for investments of five percent (5%) or less in a Competing Business that is publicly traded or investments in a fund as long as no Seller has a management or decision making role in the investment fund and no Seller is directly involved with any investment in a Competing Business; or

 

(iii)     hire any Covered Employee, or solicit, knowingly induce, attempt to solicit or induce, or otherwise knowingly encourage any Covered Employee to terminate or otherwise adversely alter his or her employment or engagement with the Company or enter into an employment, consulting, independent contractor or similar relationship with any such Person; provided, however, the foregoing clause (iii) shall not preclude any Seller from (A) making general or public solicitations not targeted at Covered Employees or (B) hiring any Covered Employee who has ceased being an employee of the Company for at least three (3) months.

 

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(b)     Notwithstanding anything in this Section 5.13 to the contrary, nothing herein shall prevent or limit any Seller from (i) being employed directly by the United States federal government or any state Governmental Authority, (ii) serving as a director or advisory board member of a private or public company which is not primarily engaged in a Competing Business hereto, or (iii) serving as an officer, member or director of a non-profit organization, trade association, task force, industry group or governmental advisory board.

 

(c)     The parties agree that the restrictions set forth in this Section 5.13 are reasonable and completely severable and independent, and any invalidity or unenforceability of this Agreement with respect to any one area or any one restriction in this Section 5.13 shall not render this Agreement unenforceable as applied to any one or more of the other areas or other restrictions herein.

 

(d)     The parties acknowledge that the restrictions set forth in this Section 5.13 are necessary for the protection of the Purchaser and its Affiliates and that any breach thereof may cause such Persons irreparable damage, that such Person’s remedies at law in the event of such breach may be inadequate, and that, accordingly, the Purchaser may be entitled to seek the issuance by a court of competent jurisdiction of a temporary, preliminary, or permanent injunction in favor of such Person enjoining the breach or threatened breach of such restrictions. The foregoing provision shall not constitute a waiver of any other remedies that the Purchaser may have in law or in equity.

 

5.14     Seller Release. For and in consideration of the Purchase Price to be received by the LLC Seller under this Agreement, from and after the Closing, each Seller hereby releases, acquits and forever discharges the Company and its Affiliates, and their respective Affiliates’ present, former and future officers, directors, attorneys, agents, Representatives, trustees, and employees and each of their respective heirs, executors, administrators, successors and assigns (each a “Released Party”), of and from any and all manner of action or actions, cause or causes of action, demands, rights, damages, debts, dues, sums of money, accounts, reckonings, costs, expenses, responsibilities, covenants, contracts, controversies, agreements and Claims whatsoever, whether known or unknown, of every name and nature, both in law and in equity (each a “Released Claim”), which such Seller or such Seller’s heirs, executors, administrators, successors or assigns (each a “Releasor Party”) ever had, now has, or hereafter may have or shall have against any Released Party, in each case, arising out of any matters, causes, acts, conduct, claims, circumstances or events occurring or failing to occur or conditions existing, prior to the time the Closing becomes effective. In executing this release, each Releasor Party acknowledges and intends that it shall be effective as a bar to each and every one of the Released Claims. Notwithstanding the foregoing, the following are expressly excluded from “Released Claims” and no Releasor Party is obligated to release such Releasor Party’s rights and Interests: (i) under the Transaction Documents or any other agreement entered into with the Purchaser or an Affiliate of the Purchaser, (ii) with respect to any Releasor Party that is an employee or director of the Company, (1) for any compensation or benefit for services rendered to the Company that remain unpaid or unawarded (including rights to payment for salary, bonuses, commissions and vacation pay, earned and unpaid as of the date hereof and any claim for accrued, vested benefits under any tax qualified retirement plan or employee welfare benefit plan of the Company in accordance with plan terms and applicable law), (2) under any agreement entered into with the Company in connection with such Releasor Party’s employment with or service for the Company, or (3) for any rights to indemnification or advancement of expenses that such Releasor Party has under the terms of the Company’s Charter and Governing Documents (subject to the limitations under Section 5.10(b)), and (iii) under any insurance policies.

 

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5.15     Retention and Access to Records. The Sellers shall have the right to retain copies of all books and records of the Company relating to periods ending on or prior to the Closing Date. For a period of five (5) years following the Closing Date, the Purchaser shall cause the Company to maintain all books and records of the Company relating to periods ending on or prior to the Closing Date and shall make them, and any individuals responsible for maintenance of such books and records, available to the Sellers upon reasonable notice during normal business hours. If at any time after the Closing, any Seller requires a copy of any such book or record, such Seller shall have the right to promptly obtain a copy thereof from the Company at such Seller’s expense.

 

5.16     R&W Insurance Policy. At or prior to the date hereof, the Purchaser bound the R&W Insurance Policy, and such R&W Insurance Policy expressly provides that the insurer or insurers issuing such policy have no right, and waive any right, of subrogation against any Seller based upon, arising out of, or in connection with this Agreement, except in the event of Fraud by the Sellers. The Sellers used commercially reasonable efforts to cooperate with the Purchaser, and took such other actions as the Purchaser reasonably requested and which were customary and necessary in order to assist the Purchaser in obtaining the R&W Insurance Policy on customary terms and conditions. The Purchaser covenants and agrees to not cancel, redeem, or take any the action that would adversely affect the terms and conditions of the R&W Insurance Policy as they relate to subrogation against the Sellers. The R&W Insurance Expenses shall be paid 50% by the Purchaser, on the one hand, and 50% by LLC Seller (as a Company Transaction Expense), on the other hand.

 

5.17     Presidential Tower Lease. If after the Closing Date, the Purchaser or the Company or any of their respective Affiliates receives any funds from the landlord (whether in cash, as a credit or otherwise) under that certain Deed of Lease, by and between Presidential Tower Property LLC (the “Landlord”) and the Company, dated November 2018, as amended by that certain First Amendment to Deed of Lease, by and between Presidential Tower Property LLC and the Company, dated May 9, 2019, as further amended by that certain Second Amendment to Deed of Lease, by and between PT Office Owner, L.L.C., as successor-in-interest to Presidential Tower Property LLC, and the Company, dated July 17, 2019 (as amended, the “Presidential Tower Lease”) with respect to the Landlord’s Contribution (as defined in the Presidential Tower Lease) relating to Tenant’s Work (as defined in the Presidential Tower Lease) performed by the Company for periods ending on or prior to the Closing Date, then the Company will promptly advise the LLC Seller, will hold such funds in trust for the benefit of the LLC Seller and will promptly deliver such funds to an account or accounts designated in writing by the LLC Seller. The Company shall promptly submit all Requisitions (as defined in the Presidential Tower Lease) to the Landlord and use its Reasonable Best Efforts to obtain all available Landlord Contributions pursuant to the Presidential Tower Lease. For the avoidance of doubt, the Company shall be entitled to retain any Landlord’s Contribution relating to Tenant’s Work performed by the Company for periods following the Closing Date. Attached hereto as Schedule 5.17 is the Seller’s good faith estimate of the unreimbursed Landlord Contributions relating to Tenant’s Work performed by the Company for periods ending on or prior to the Closing Date, which Schedule will be updated as of the Closing as set forth in the Flow of Funds Memorandum.

 

5.18     401(k) Plan Termination. The Company shall terminate the Incentive Technology Group, LLC 401(k) Profit Sharing Plan (the “401(k) Plan”) by proper board action and plan amendments effective no later than the day before the Closing Date. Such board action and plan amendments shall eliminate all forms of distribution other than lump sums effective immediately prior to the termination of the 401(k) Plan and shall limit distributions from the 401(k) Plan upon its termination to lump sums.

 

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5.19     Incurred Cost Submissions. Prior to and subsequent to Closing, the Seller agrees to reasonably cooperate with the Purchaser in filing historic incurred cost submissions and supporting any audits relating thereto. In furtherance of the foregoing, the Seller agrees to provide to Purchaser all relevant data necessary to support each such filing including, without limitation, (i) headcount detail used for allocation bases, (ii) general ledger detail by account, organization and project, (iii) historic contract files including proposals, executed contract/contract modification documents, historic email or other written post-award communication used in re/negotiating elements of contract value, type, rates (direct or indirect), or periods of performance, (iv) historic purchase order and subcontract files including proposals, award evaluation, sole source justifications (if applicable), and executed purchase order/subcontract agreements and modifications thereof, (v) historic breakdown of all total compensation in excess of the allowability threshold prescribed in Federal Acquisition Regulation (FAR) Subpart 31.205-6(p), (vi) historic time & materials contract rates invoiced by labor category and/or employee with supporting evaluation documentation for labor category qualifications, and (vii) all IRS Forms 941 filed as well as reconciliations of the IRS Forms 941 amounts to general ledger accounts and employee IRS Forms W-2 issued. In furtherance of the foregoing, to the extent (a) not already in possession of the Purchaser, (b) required to be maintained by a Governmental Authority or applicable Law, and (c) not prohibited from disclosure by applicable Law, the Seller agrees to retain and provide to the Purchaser all data necessary to support incurred cost submission audits in electronic or hardcopy format until conclusion of the incurred cost submission audit including, without limitation, (i) invoice copies, payment approvals, and disbursement records supporting all non-labor costs booked in the general ledger accounts included in fringe benefits, overhead, intermediate service center, general & administrative, and subcontracts & materials handling cost pools, (ii) invoice copies, payment approvals, contracting officer procurement authorization or travel authorization approvals (if required by contract terms and conditions), and disbursement records supporting all non-labor direct general ledger costs which were directly invoiced to/reimbursed by the US Government on cost reimbursable and time & materials contracts/orders, (iii) support for all adjusting journal entries booked to indirect general ledger accounts and to direct, reimbursable cost type or time & materials general ledger accounts/projects to include the amount(s) booked, underlying calculations and support schedules, and purpose(s) for the adjusting journal entry(ies), (iv) supporting accounts payable aging information for direct subcontractor invoices, (v) employee original and revised timesheets for all direct and indirect labor included in the general ledger including hours charged by date and project, timesheet line/revision annotations/explanations, employee timecard/revision signature, and employee supervisor timecard/revision signature, (vi) work product copies for any consultant or legal costs claimed per the requirements of FAR Subpart 31.205-33, and (vii) any supporting documentation for indirect or direct reimbursable (cost type of time & materials contract/order) non-per diem travel expenses showing airfare or hotel cost as the best available coach fare or geographic hotel cost.

 

5.20     Cooperation with Financials. For ninety (90) days after the Closing Date, the Sellers shall cooperate, at the sole cost and expense of the Purchaser, with all reasonable requests of the Purchaser in connection with preparation of any financial statements for the Interests as may be required by the Purchaser in connection with disclosure obligations under the U.S. Securities Exchange Act of 1934, as amended, or the rules or regulations promulgated thereunder or any applicable stock exchange rules, including such requests necessary in order (a) to determine whether financial statements for the Purchaser with respect to the Interests are required to be prepared under Rule 3-05 of Regulation S-X under the Securities Exchange Act of 1934 (“Post-Closing Financials”), and (b) if Post-Closing Financials statements are required, to prepare and file such financial statements, including assistance in obtaining audited financials of the LLC Seller and the associated consent of any auditors of the LLC Seller; provided, however, that the Sellers shall have no responsibility or liability for (and the Purchaser shall indemnify, defend and hold harmless the Sellers in respect of) any and all Damages that may be suffered or incurred as a result of such financial statements.

 

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5.21     Payroll. Seller and the Company will take all necessary actions so that the Company will pay its full month of January payroll, along with the 2019 bonus amounts, in its January 31st payroll.

 

5.22     Retention Incentive Awards. The board of directors of the Purchaser has approved the post-Closing award of retention equity incentives to certain of the Key Employees and Other Key Employees which shall be awarded to the foregoing in the sole and absolute discretion of the Purchaser. No further action of the board of directors of the Purchaser shall be required to approve or authorize the foregoing awards.

 

5.23     Other Key Employee Employment Documentation. During the Interim Period, the Company shall use its Reasonable Best Efforts to cause each Other Key Employee who has not delivered his or her duly executed Employment Documentation as of the date hereof to execute such Employment Documentation prior to the Closing.

 

6.     CLOSING CONDITIONS.

 

6.1     Conditions to Purchaser’s Obligations. The obligations of the Purchaser to consummate the transactions contemplated hereunder are subject to the waiver by the Purchaser, or satisfaction, of each of the following conditions on or prior to the Closing Date:

 

(a)     Representations and Warranties. All of the representations and warranties of the Sellers and the Company contained in Section 2 and Section 3 of this Agreement (after giving effect to the Disclosure Schedules) shall be true and correct as of the Closing Date in all material respects; provided, that those representations and warranties that are specifically made as of a particular date shall be so true and correct as of such date.

 

(b)     Compliance with Covenants. All of the material covenants to be complied with and performed by the Company on or before the Closing Date will have been duly complied with and performed in all material respects.

 

(c)     Closing Deliverables. On the Closing Date, the Company or the Sellers will have delivered or caused to be delivered (or be in a position to deliver or cause to be delivered) to the Purchaser the duly executed Closing deliverables, as specified in Section 7.1 hereof, provided, however, that the Purchaser may not allege non-compliance with this condition to the extent Purchaser breached its cooperation covenants in Section 5.9.

 

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(d)     Government Consents, Approvals, and Waivers. The parties will have received any consents or Permits of any Governmental Authority (excluding any consents from customers pursuant to a Government Contract of the Company) required in order for the parties to consummate the transactions contemplated hereby, except where the failure to receive any such consent, Permit, approval, and/or waiver would not reasonably be expected to have a Purchaser Material Adverse Effect.

 

(e)     Absence of Litigation. As of the Closing, no Law will have been adopted, promulgated, entered, enforced or issued by any Governmental Authority, nor will any Claim be pending before any court or Governmental Authority, which, if successful, would enjoin, restrain, or prohibit the consummation of the transactions contemplated by this Agreement; provided, however, that this condition may not be invoked by the Purchaser if any such Claim was initiated by or at the direction of the Purchaser.

 

(f)     No Material Adverse Effect. There will have been no Material Adverse Effect with respect to the Company during the Interim Period, which Material Adverse Effect has not been cured as of the Closing Date or is not capable of being cured.

 

(g)     Insurance. All insurance policies set forth on Schedule 3.18 shall be in full force and effect.

 

(h)     Background Checks. Purchaser shall have completed background checks of all Key Employees and Other Key Employees.

 

(i)     Individual Seller Consulting/Employment Agreements. The Purchaser and the Individual Sellers shall have entered into a consulting/employment agreement between the Purchaser and each Individual Seller, effective as of the Closing, in form and substance reasonably satisfactory to Purchaser and the Individual Sellers.

 

(j)     Resolution of OIG Audit. The Individual Sellers and the LLC Seller shall use commercially reasonable efforts to cause the Company to fully and completely settle and resolve the Preaward Examination of Multiple Award Schedule Contract Extension, Report No. A180059/Q/2/X19034, dated July 3, 2019, being conducted by the Office of Inspector General, U.S. General Services Administration, which is identified on Schedule 3.27(f).

 

(k)     DNT Solutions Joint Venture. Members of DNT Solutions, LLC holding at least 662/3 percent of the outstanding membership interests of DNT Solutions, LLC, in the aggregate (inclusive of the Company’s ownership interest), shall have entered into that certain Third Amendment to the Operating Agreement of DNT Solutions, LLC, in substantially the form attached hereto as Exhibit F.

 

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6.2     Conditions to the Company’s and the Sellers’ Obligations. The obligations of the Company and the Sellers to consummate this Agreement and the Closing of the transactions contemplated hereunder are subject to the waiver by the Sellers, or satisfaction, of each of the following conditions on or prior to the Closing Date:

 

(a)     Representations and Warranties. All of the representations and warranties of the Purchaser contained in Section 4 of this Agreement shall be true and correct as of the Closing Date in all material respects; provided, that those representations and warranties that are specifically made as of a particular calendar date shall be so true and correct as of such date.

 

(b)     Compliance with Covenants. All of the material covenants to be complied with or performed by the Purchaser on or before the Closing Date will have been duly complied with and performed in all material respects.

 

(c)     Closing Deliverables. On the Closing Date, the Purchaser will have delivered or caused to be delivered (or be in a position to deliver or cause to be delivered) to the Company, the Sellers, or other applicable third parties, duly executed Closing deliverables, as specified in Section 7.2 below, provided, however, that the Company may not allege non-compliance with this condition to the extent the Company breached its cooperation covenants in Section 5.9.

 

(d)     Government Consents, Approvals, and Waivers. The parties will have received any consents, Permits, approvals and waivers of any Governmental Authority (excluding any consents from customers pursuant to a Government Contract of the Company) required in order for the parties to consummate the transactions contemplated hereby, except where the failure to receive any such consent, Permit, approval, and/or waiver would not reasonably be expected to have a Material Adverse Effect.

 

(e)     Absence of Litigation. As of the Closing, no Law will have been adopted, promulgated, entered, enforced or issued by any Governmental Authority, nor will any Claim be pending before any court or Governmental Authority, which, if successful, would enjoin, restrain, or prohibit the consummation of the transactions contemplated by this Agreement; provided, however, that this condition may not be invoked by the Company if any such Claim was initiated by or at the direction of the Company.

 

(f)     Individual Seller Consulting/Employment Agreements. The Purchaser and the Individual Sellers shall have entered into a consulting/employment agreement between the Purchaser and each Individual Seller, effective as of the Closing, in form and substance reasonably satisfactory to Purchaser and the Individual Sellers.

 

6.3     Frustration of Closing Conditions. No party may rely on the failure of any party to satisfy a condition set forth in Section 6.1 or Section 6.2, as the case may be, to be satisfied if such failure was caused by such party’s breach of any provision of this Agreement.

 

7.     CLOSING DELIVERABLES.

 

7.1     Closing Documents to be Delivered by the Company and the Sellers. At the Closing, the Company or the Sellers, as appropriate, will deliver or cause to be delivered to the Purchaser:

 

(a)     a certificate dated as of the Closing Date and signed by the Company’s Chief Executive Officer, President or Secretary certifying and attaching (i) a copy of the resolutions of the Company’s board of managers authorizing the execution, delivery and performance of this Agreement and the transactions contemplated hereby and (ii) a copy of the Charter and Governing Documents of the Company Parties;

 

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(b)     a certificate duly executed by the Company attesting that the conditions set forth in Sections 6.1(a), 6.1(b), and 6.1(f) hereof have been satisfied or indicating with specificity any respects in which those conditions have not been satisfied;

 

(c)     the Flow of Funds Memorandum, duly executed by the Company and the LLC Seller;

 

(d)     evidence of the release of all Liens (other than Permitted Liens) (or the authorization for the Company or the Purchaser to cause the release of such Lien) with respect to the bank Indebtedness;

 

(e)     resignations effective immediately following the Closing of the manager and officers of the Company;

 

(f)     a certificate from the state of organization of the Company, dated no earlier than thirty (30) days prior to the Closing Date, as to the good standing (or similar status) of the Company in such jurisdiction;

 

(g)     an affidavit of non-foreign status of the LLC Seller, dated as of the Closing Date, in form and substance required under Section 1445 of the Code and the Regulations thereunder;

 

(h)     evidence of termination of the UAR Plan and the 401(k) Plan;

 

(i)     the Assignment of LLC Interests, duly executed by the LLC Seller;

 

(j)     the Escrow Agreement, duly executed by the LLC Seller;

 

(k)     executed pre-Closing consents identified on Schedule 3.5 to the closing of the transactions contemplated by this Agreement;

 

(l)     executed Employment Documentation by not less than 90% of all employees of the Company (other than Key Employees and Other Key Employees);

 

(m)     evidence of termination of the employment agreement with Jean Claude Chidiac and waiver and release in form and substance reasonably satisfactory to the Purchaser;

 

(n)     reasonable evidence of the addition of ICF Treasury as signatories on all Company bank accounts, the provision of online access to the foregoing bank accounts, amendment to the bank account signatory documentation to reflect that further changes require ICF Treasury approval and the removal of all current signatories upon the Closing; and

 

(o)      a Membership Unit Appreciation Satisfaction and Release Agreement in the form attached hereto as Exhibit F, executed by at least 90% the UAR Holders.

 

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7.2     Closing Documents to be Delivered by the Purchaser. At the Closing, the Purchaser will deliver to the Company and the Sellers:

 

(a)     the Closing Purchase Price as provided in Section 1.1 hereof;

 

(b)     a certificate dated as of the Closing Date and signed by the Purchaser’s secretary (or equivalent) certifying and attaching: (i) copies of resolutions of the Purchaser’s board of directors (or other governing body) authorizing the execution, delivery and performance of this Agreement and the transactions contemplated hereby, and (ii) copies of the Charter and Governing Documents of the Purchaser;

 

(c)     a certificate duly executed by the Purchaser attesting that the conditions set forth in Section 6.2(a) and 6.2(b) hereof have been satisfied or indicating with specificity any respects in which those conditions have not been satisfied, in a form reasonably satisfactory to the Sellers;

 

(d)     the Assignment of LLC Interests, duly executed by the Purchaser;

 

(e)     the Escrow Agreement, duly executed by the Purchaser; and

 

(f)     the Flow of Funds Memorandum duly executed by the Purchaser.

 

7.3     Other Closing Documents. The parties hereto will execute such other documents and instruments as any of the other parties may be reasonably request that are necessary for the implementation and consummation of this Agreement and the transactions contemplated hereby.

 

7.4     R&W Insurance Policy. The R&W Insurance Policy is in full effect, and all conditions in the conditional binder to the R&W Insurance Policy (the “R&W Insurance Binder”) with respect to the insurer’s obligations to issue the R&W Insurance Policy shall be fully satisfied, with all other subjectivities for the R&W Insurance Binder and the R&W Insurance Policy timely satisfied (including by causing the timely payment of the R&W Insurance Expenses) or waived by the insurer under the R&W Insurance Policy.

 

8.     TERMINATION.

 

8.1     Termination. This Agreement may be terminated at any time prior to the Closing Date only as follows:

 

(a)     by mutual written agreement of the LLC Seller and the Purchaser;

 

(b)     by the Company, if (i) the Closing has not occurred on or before February 28, 2020 (or such later date as the Company and the Purchaser mutually agree in writing) (the “End Date”); provided, that such failure is not due to a failure of the Company to perform, in any material respect, any of its material obligations under this Agreement required to be performed prior to the Closing; or (ii) within fifteen (15) days after the Company’s written notice to the Purchaser notifying the Purchaser that the Company has satisfied its conditions to Closing (other than conditions with respect to (1) actions the respective parties will take at the Closing itself or (2) conditions that require the Purchaser’s cooperation pursuant to Section 5.9 if the Purchaser is in breach of such cooperation covenants) and that the Company is ready, willing and able to close, and the Purchaser has not agreed to close within fifteen (15) days thereof;

 

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(c)     by the Purchaser, if the Closing has not occurred on or before the End Date, provided, that such failure is not due to a failure of the Purchaser to perform, in any material respect, any of its material obligations under this Agreement (provided, further, that if the Company has sent the notice to the Purchaser referred to in Section 8.1(b)(ii), the Purchaser may not exercise its right under this Section 8.1(c));

 

(d)     by the Company, if the Purchaser has committed a material breach of any provision of this Agreement, which breach (i) would result in a failure of a condition set forth in Section 6.2 and (ii) such breach is not capable of being cured or, if capable of being cured, has not been cured prior to the earlier of (A) ten (10) days following written notice of such breach from the Company to the Purchaser and (B) the End Date;

 

(e)     by the Purchaser, if the Company has committed a material breach of any provision of this Agreement, which breach (i) would result in a failure of a condition set forth in Section 6.1 and (ii) such breach is not capable of being cured or, if capable of being cured, has not been cured prior to the earlier of (A) ten (10) days following written notice of such breach from the Purchaser to the Company and (B) the End Date;

 

(f)     by either the Purchaser or the Company, if an order, statute, law, ordinance, regulation, decree, ruling, judgment, injunction or other action has been entered by any Governmental Authority of competent jurisdiction permanently restraining, enjoining or prohibiting the consummation of the transactions contemplated by this Agreement and such order, decree, ruling, judgment or injunction has become final and non-appealable; or

 

(g)     notwithstanding anything in this Agreement to the contrary, by either the Company or the Purchaser, without cause or reason and without regard to any default or breach hereunder, if the Closing has not occurred by March 15, 2020.

 

8.2     Effect of Termination. If this Agreement is validly terminated as provided in Section 8.1, all further obligations under this Agreement will terminate and no party hereto will have any liability in respect of the termination of this Agreement; provided, however, that (a) the confidentiality obligations of the Purchaser, the Sellers, and the Company described in Section 5.6 will survive any such termination and (b) Sections 11 through 22, 23(a), 24, 25, any applicable definitions set forth in Section 26 and this Section 8.2, shall survive any such termination, and (c) no such termination will relieve any party from liability for Fraud in connection with this Agreement or for any willful and material breach of any covenant or agreement set forth in this Agreement prior to such termination, and in the event of such Fraud or such willful and material breach, the parties hereto will be entitled to exercise any and all remedies available under law or equity in accordance with this Agreement. For purposes of clarification, the parties agree that if the Purchaser does not close the transactions contemplated hereby in circumstances in which all of the closing conditions set forth in Sections 6.1 and 6.2 have been satisfied or waived by the LLC Seller (other than conditions to be performed at the Closing or that require Purchaser’s cooperation pursuant to Section 5.9), such failure or refusal to close shall be deemed to be a willful breach of this Agreement by Purchaser. Nothing in this Section 8.2 shall relieve or release any party hereto of any liability or damages (which the parties acknowledge and agree shall not be limited to reimbursement of expenses or out-of-pocket costs, and may include to the extent proven the benefit of the bargain lost by a party (taking into consideration relevant matters, including other combination opportunities and the time value of money, which shall be deemed in such event to be damages of such party)) arising out of such party’s willful breach of this Agreement.

 

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9.     REMEDIES.

 

9.1     Survival.

 

(a)     The representations and warranties contained in Section 2 and Section 3 hereof, or in any certificate delivered by the Company or Sellers or Purchaser at Closing pursuant to Section 7.1 or Section 7.2, respectively, and the indemnification obligations of the parties with respect thereto, shall survive the Closing for a period of twelve (12) months following the Closing, subject to the terms and conditions of this Section 9. Notwithstanding the preceding sentence, the representations and warranties in Section 2.1 (Necessary Authority), Section 2.2 (Title to the Interests), Section 2.4 (Brokers), Section 3.1 (Organization), Section 3.2 (Authorization; Corporate Documentation), Section 3.3 (Title; Capitalization), Section 3.16 (Taxes), Section 3.17 (Employee Benefit Plans; ERISA), Section 3.19 (Environmental Matters), and Section 3.25 (Brokers) (such representations and warranties by the Sellers and the Company, collectively, the “Fundamental Seller Representations”), Section 4.1 (Organization), Section 4.2 (Necessary Authority), and Section 4.4 (Brokers) (such representations and warranties by the Purchaser, collectively, the “Fundamental Purchaser Representations”) shall survive the Closing until the expiration of the applicable statute of limitations.

 

(b)     Notwithstanding the foregoing, any claims for indemnification pursuant to Section 9.2 or Section 9.4, respectively, asserted in good faith in accordance with this Section 9 with reasonable specificity (to the extent known at such time) and in writing by notice from the non-breaching party to the breaching party in accordance with Section 9.6 prior to 11:59 p.m. Eastern Time on the date of the expiration of the applicable survival period shall not thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive until finally resolved in accordance with the provisions of this Section 9.

 

(c)     None of the covenants that by their terms were to be performed prior to the Closing will survive the Effective Time. The covenants contained in this Agreement to be performed after the Closing, and the indemnification obligations of the parties with respect thereto, shall survive the Closing to the extent provided in their respective terms. The indemnification obligations with respect to the matters in Sections 9.2(a)(iv) though (viii) and 9.4(c) and (d) shall survive the Closing until the expiration of the applicable statute of limitations.

 

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9.2     Sellers’ Indemnification Obligations

 

(a)     Subject to the terms and conditions of this Section 9, the Sellers, jointly and severally, shall indemnify and defend the Purchaser, its Affiliates and each of their respective officers, directors, employees and agents (collectively, the “Purchaser Indemnified Parties” and each a “Purchaser Indemnified Party”) against and from all Damages suffered, sustained or incurred by any Purchaser Indemnified Party, whether in respect of third party claims or claims between the parties hereto relating to, as a result of or arising out of:

 

(i)     any inaccuracy in or breach of any representation and warranty made by the Company or Sellers to the Purchaser under Section 2 or Section 3 (other than Fundamental Seller Representations and the representations and warranties under Section 2.6 and Section 3.31) or by the Company or Sellers in any certificate delivered by the Company or Sellers at Closing pursuant to Section 7.1;

 

(ii)     any inaccuracy in or breach of any Fundamental Seller Representations;

 

(iii)     any breach by the Sellers of, or failure by the Sellers to comply with, any covenant or obligation under this Agreement to be performed by Sellers;

 

(iv)     any Pre-Closing Taxes;

 

(v)     any Fraud of the Sellers;

 

(vi)     any unpaid Indebtedness or Company Transaction Expenses;

 

(vii)     any rate or other adjustments, including any cost disallowances and related assessed damages and penalties under the applicable Government Contract, that result in a Damages to the Company with respect to any audit of a Government Contract related to (1) any period ending on or before the Closing or (2) any periods beginning before, but ending after, the Closing to the extent any adjustments relate to the portion of such period prior to Closing; and

 

(viii)     the matters set forth on Schedule 9.2(a)(viii).

 

(b)     Notwithstanding anything to the contrary contained herein, for purposes of determining whether there has been a breach and the amount of any Damages that are the subject matter of a claim for indemnification hereunder, each representation and warranty in this Agreement and the schedules and exhibits hereto shall be read without regard and without giving effect to any “materiality” or “Material Adverse Effect” qualification contained in such representation or warranty which has the effect of making such representation and warranty less likely to be breached (as if such word or words were deleted from such representation or warranty); except, however, the foregoing proviso shall not apply for purposes of the use of the phrase “Material Adverse Effect” in Section 2.6, Section 3.30 or Section 3.31 and shall not apply to the defined terms “Material Contracts,” “Material Customers” or “Material Suppliers.” For the avoidance of doubt, the materiality scrape in this Section 9.2(b) does not except out materiality as an element of Fraud nor does it except out any reference to “Material Adverse Effect” or “material” or any similar qualification from any representation and warranty for purposes of determining Fraud.

 

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9.3     Limitation on Sellers’ Indemnification Obligations. Sellers’ obligations pursuant to Section 9.2 are subject to the following limitations:

 

(a)     Other than for Damages resulting from claims brought on the basis of Fraud, the Purchaser Indemnified Parties shall not be entitled to recover under Section 9.2(a)(i) until the total amount of Damages which the Purchaser Indemnified Parties would recover under Section 9.2(a)(i) exceeds an aggregate amount equal to $956,250.00 (the “Threshold”), in which case the Purchaser Indemnified Parties shall be entitled to recover such Damages that exceed the Threshold.

 

(b)     Other than for Damages resulting from claims brought on the basis of Fraud, the aggregate amount of indemnification that the Purchaser Indemnified Parties may receive to satisfy claims under Section 9.2(a)(i) shall be $956,250.00 (the “Cap”).

 

(c)     The aggregate liability of the Sellers pursuant to Section 9.2 shall in no event exceed the amount of the cash proceeds actually received by the LLC Seller under this Agreement.

 

(d)     With respect to Damages for which a Purchaser Indemnified Party is entitled to indemnification under Section 9.2(a) such Damages shall be paid (i) first from any then-remaining funds in the Indemnity Escrow Account, (ii) second, from the R&W Insurance Policy to the extent of the coverage limits under the R&W Insurance Policy, and (iii) third, from the Sellers (in each case subject to the limitations in this Section 9). For the sake of clarity, to the extent any facts giving rise to any indemnifiable Damages constitute a breach of a representation or warranty, and except in the case of Fraud, to the extent that such Damages are covered under the R&W Insurance Policy and the limit of liability under the R&W Insurance Policy has not been exhausted, the Purchaser shall first be required to use Reasonable Best Efforts to recover from and exhaust the R&W Insurance Policy before seeking recovery directly from the Sellers under clause (iii) above.

 

9.4     Purchaser’s Indemnification Obligations. Subject to the terms and conditions of this Section, the Purchaser shall indemnify and defend the Sellers, his, her or its Affiliates and each of their respective officers, directors, employees and agents and their respective successors and permitted assigns (collectively, the “Seller Indemnified Parties” and each a “Seller Indemnified Party”) against and from all Damages suffered, sustained or incurred by any Seller Indemnified Party, whether in respect of third party claims or claims between the parties hereto relating to, as a result of or arising out of:

 

(a)     any inaccuracy in or breach of any representation and warranty made by Purchaser to Sellers herein (other than Fundamental Purchaser Representations), or by the Purchaser in any certificate delivered by the Purchaser at Closing pursuant to Section 7.2;

 

(b)     any inaccuracy in or breach of any Fundamental Purchaser Representations;

 

(c)     any and all Transfer Taxes required to be borne by Purchaser pursuant to Section 10.3(h);

 

(d)     any Fraud of the Purchaser; and

 

(e)     any breach by the Purchaser or the Company (after the Closing) of, or failure by the Purchaser or the Company to comply with, any covenant or obligation under this Agreement to be performed by the Purchaser or the Company.

 

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9.5     Limitation on Purchaser’s Indemnification Obligations. The Purchaser’s obligations pursuant to Section 9.4(a) are subject to the following limitations:

 

(a)     Other than for Damages resulting from claims brought on the basis of Fraud or breaches of Fundamental Purchaser Representations, the Seller Indemnified Parties shall not be entitled to recover under Section 9.4(a) until the total amount of Damages which the Seller Indemnified Parties would recover under Section 9.4(a) exceeds an aggregate amount equal to the Threshold, in which case the Seller Indemnified Parties shall be entitled to recover such Damages that exceed the Threshold.

 

(b)     Other than for Damages resulting from claims brought on the basis of Fraud, the aggregate amount of indemnification that the Seller Indemnified Parties may receive to satisfy claims under Section 9.4(a) shall be the Cap.

 

9.6     Notice and Procedure.

 

(a)     In the event that any Legal Proceedings are instituted by a third party or any claim or demand is asserted or threatened against or sought to be collected from a Person who is seeking indemnity under any provision of this Agreement (the “Indemnitee”) by a third party, in each case for which the party from whom indemnity is sought (the “Indemnitor”) may have liability to any Indemnitee hereunder (a “Third Party Claim”), such Indemnitee shall, promptly following such Indemnitee’s receipt of a Third Party Claim, notify the Indemnitor in writing of such Third Party Claim (a “Claim Notice”); provided, however, that the failure to give a timely Claim Notice shall relieve the Indemnitor of its obligations hereunder only if and to the extent that such failure has a materially prejudicial effect on the defenses or other rights available to the Indemnitor with respect to such Third Party Claim or the Indemnitor is otherwise materially prejudiced by such delay. The Indemnitor shall have thirty (30) days after receipt of the Claim Notice (the “Notice Period”) to notify the Indemnitee that it desires to defend the Indemnitee against such Third Party Claim; provided, however, that in such notice the Indemnitor must agree to indemnify the Indemnitee from and against the entirety of any and all Damages the Indemnitee may suffer resulting from, arising out of, relating to, in the nature of or caused by the Third Party Claim (subject to the limitations of this Section 9). The Indemnitee shall deliver to the Indemnitor, upon request and without charge, copies of any demand, complaint and other material correspondence and documents served on or received by the Indemnitee with respect to such Third Party Claim.

 

(b)     In the event that the Indemnitor notifies the Indemnitee within the Notice Period that it desires to defend the Indemnitee against a Third Party Claim, (i) the Indemnitor shall have the right to defend the Indemnitee by appropriate Legal Proceedings and shall have the sole power to direct and control such defense, with counsel of its choosing, at its expense, (ii) the Indemnitor shall use its Reasonable Best Efforts to defend diligently such Third Party Claim, and (iii) the Indemnitee, prior to the period in which the Indemnitor assumes the defense of such matter, may take such reasonable actions to preserve any and all rights with respect to such matter, without such actions being construed as a waiver of the Indemnitee’s rights to defense and indemnification pursuant to this Agreement, but with such actions not being determinative of the amount of any Damages. The Indemnitor shall not, without the prior written consent of the Indemnitee (which consent shall not be unreasonably withheld, delayed or conditioned), settle, compromise or offer to settle or compromise any Third Party Claim that does not include as a term thereof the giving by the Person(s) asserting such Third Party Claim to Indemnitee a release from all liability with respect to such claim or consent to entry of any judgment.

 

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(c)     If the Indemnitor (i) does not elect to defend the Indemnitee against a Third Party Claim, whether by not giving the Indemnitee timely notice of its desire to so defend or otherwise or (ii) after assuming the defense of a Third Party Claim, fails to take commercially reasonable steps necessary to defend diligently such Third Party Claim, the Indemnitee shall have the right but not the obligation to assume such defense and shall have the sole power to direct and control such defense, with counsel of its choosing, at the expense of the Indemnitor; it being understood that the Indemnitee’s right to indemnification for a Third Party Claim shall not be adversely affected by assuming the defense of such Third Party Claim. The Indemnitee shall not settle a Third Party Claim without the consent of the Indemnitor, which consent shall not be unreasonably withheld, delayed or conditioned.

 

(d)     The Indemnitee and the Indemnitor shall cooperate in the conduct of the defense of a Third Party Claim, including by providing reasonable access to each other’s relevant business records and other documents, and employees, subject to reasonable confidentiality obligations. The party that controls the defense, compromise or settlement of a Third Party Claim shall keep the other party reasonably informed of material developments and events relating to such claim.

 

(e)     The Indemnitee and the Indemnitor shall use their Reasonable Best Efforts to avoid production of confidential information (consistent with applicable Law), and to cause all communications among employees, counsel and others representing any party to a Third Party Claim to be made so as to preserve any applicable attorney-client or work-product privileges.

 

(f)     Any claim by an Indemnitee for indemnification not involving a Third Party Claim may be asserted by giving the Indemnitor written notice thereof (a “Notice of Direct Claim”), which notice shall say “Direct Indemnity Claim”, and shall be given promptly after the Indemnitee becomes aware of such claim. Such Notice of Direct Claim must state that the Indemnitee, in good faith, believes it is entitled to indemnification and the relevant section(s) of this Agreement pursuant to which the Indemnitee is entitled to indemnification and contain to the extent possible, a good faith estimate of the Damages that the Indemnitee has incurred or paid or will incur or pay as a result of the matter giving rise to such right of indemnification or a statement explaining why such amount cannot be reasonably estimated. The Indemnitor shall have thirty (30) days after its receipt of a Notice of Direct Claim to respond in writing to such Notice of Direct Claim. During such period of thirty (30) days, the Indemnitee shall cooperate in all reasonable respects with the Indemnitor and its professional advisors in their investigation of the matter or circumstance alleged to give rise to the Notice of Direct Claim, and whether and to what extent any amount is payable in respect of the Notice of Direct Claim, and the Indemnitee shall use its Reasonable Best Efforts to assist the Indemnitor’s investigation by giving such non-privileged information and assistance at the Indemnitor’s sole expense, as the Indemnitor or any of its professional advisors may reasonably request in order to evaluate such Notice of Direct Claim. If the Indemnitor does not notify the Indemnitee within thirty (30) days following its receipt of a Notice of Direct Claim that the Indemnitor disputes its liability to the Indemnitee, such claim specified by the Indemnitee in such notice shall be conclusively deemed rejected by the Indemnitor and the Indemnitee will be free to pursue such remedies as may be available to the Indemnitee pursuant to Section 20, subject to the terms and limitations set forth in this Section 9.

 

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9.7     Duty to Mitigate. Any Person seeking indemnification under this Section 9 shall take all commercially reasonable steps to mitigate any Damages incurred by such Person upon and after becoming aware of any event or condition that would reasonably be expected to give rise to any indemnification rights hereunder.

 

9.8     No Duplicate Recovery. Any indemnifiable Damages for which any Indemnitee is entitled to indemnification under this Section 9 shall be determined without duplication of recovery by reason of the state of facts giving rise to such indemnifiable Damages constituting a breach of more than one representation, warranty, covenant or agreement. There shall be no recovery for any indemnifiable Damages by any Indemnitee pursuant to this Section 9 to the extent such Damages have been taken into account in the determination of the Purchase Price Adjustment.

 

9.9     Time of Payment of Claims. Any amount owing by any party hereto pursuant to this Section 9 shall be paid within five (5) Business Days after the final determination of such amount in accordance with this Section 9.

 

9.10     Sole Remedy After Closing.

 

(a)     The Purchaser and Sellers acknowledge and agree that their sole and exclusive remedy for monetary relief with respect to any breach of this Agreement, including breach of any representation, warranty, covenant or agreement and with respect to any and all claims relating to the subject matter of this Agreement, excluding (i) any claim for Fraud or (ii) any remedies with respect to the Purchase Price adjustment as contained in Section 1.3, shall be pursuant to the indemnification provisions set forth in this Section 9; provided, however, nothing contained herein shall prevent the Indemnitee from pursuing equitable relief as may be available to such party under Section 11. The parties shall not be entitled to a rescission of this Agreement, the Transaction Documents, or the transactions contemplated hereby or thereby (whether by contract, common law, statute, law, regulation or otherwise), all of which the parties hereby waive.

 

(b)     The Purchaser and Sellers agree to treat (and cause their Affiliates to treat) any indemnification payment under this Agreement as an adjustment to the Purchase Price for Tax purposes. Neither the Purchaser nor any Seller shall (nor shall they permit their Affiliates to) take any position on any Tax Return, or before any Governmental Authority involved in the administration of Tax Laws, that is inconsistent with such treatment. The parties hereto agree to use their Reasonable Best Efforts to obtain available recoveries from any third party insurer (including with respect to the Purchaser Indemnified Parties, from the R&W Insurance Provider). Any indemnification obligation under this Agreement shall be net of (i) any Tax Benefit realizable by the Indemnitee or its Affiliates, and (ii) any insurance proceeds or any indemnity, contribution or other similar payment received by the Indemnitee or its Affiliates from any third party with respect thereto, net of any expenses and increase in applicable premiums/retro-premiums related to the recovery of such proceeds. In the event that an insurance or other recovery is received by any Indemnitee with respect to any indemnification obligation for which any such Person has been indemnified under this Agreement, then a refund equal to the aggregate amount of the recovery shall be made promptly to the Indemnitor. As used herein, “Tax Benefit” shall mean the Tax savings attributable to any deduction, expense, loss, credit or refund to the Indemnitee or its Affiliates, when incurred or received.

 

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9.11     No Right of Contribution. The Sellers hereby expressly waive, acknowledge and agree that the Sellers shall not exercise or assert (or attempt to exercise or assert) any right of subrogation, contribution, advancement, indemnification or other claim against the Company in connection with any indemnification obligation or any Damages to which any Seller may become subject under this Agreement or otherwise; provided, however, that nothing in this Section 9.11 shall release the right of the Sellers (i) with respect to the obligations of the Purchaser under this Agreement or any other Transaction Document or (ii) the obligations of any insurer under any insurance policy (including under the Tail Policy).

 

9.12     Indemnity Escrow Account. On the first Business Day following the twelve (12) month anniversary of the Closing Date (the “Escrow Termination Date”), Purchaser and LLC Seller shall promptly deliver joint written instructions to the Escrow Agent as is necessary to cause the remaining funds on deposit in the Indemnity Escrow Account, minus the aggregate amount of any unsatisfied claims for Damages of the Purchaser Indemnified Parties properly made on or prior to 11:59 p.m. Eastern Time on the Escrow Termination Date in accordance with the terms of this Section 9 (the “Pending Claim Reserve”), to be released to the LLC Seller. The Pending Claim Reserve shall remain in the Indemnity Escrow Account until the resolution of the applicable claim or claims to which such reserve relates. To the extent such pending claim or claims are resolved in favor of the Purchaser, the Pending Claim Reserve shall be paid to Purchaser, with any amount remaining in the Indemnity Escrow Account after such payment to be released to the LLC Seller.

 

10.     POST CLOSING MATTERS. Following the Closing Date, the parties agree as follows:

 

10.1     Cooperation. In case at any time after the Closing any further action is necessary to carry out the purposes of this Agreement, each of the parties will take such further action (including the execution and delivery of such further instruments and documents) as any other party reasonably may request, all at the sole cost and expense of the requesting party.

 

10.2     Litigation Support. In the event and for so long as any party is actively contesting or defending against any Claim in connection with (a) any transaction contemplated under this Agreement or (b) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act or transaction that existed on or prior to the Closing Date involving the Company, each of the other parties will cooperate with such party and such party’s counsel in the contest or defense, make available their personnel, and provide such testimony and access to their books and records as will be reasonably necessary in connection with the contest or defense, all at the sole cost and expense of the contesting or defending party.

 

10.3     Tax Matters.

 

(a)     Tax Refunds. Any refund of Taxes that were imposed on the Company for any Pre-Closing Tax Period and any interest paid or credited in respect thereto (collectively, a “Tax Refund”), shall be the property of the LLC Seller. If any such Tax Refund is received by the Purchaser, the Company or any of their Affiliates, including by way of credit or allowance against Taxes otherwise payable, an amount equal to such Tax Refund, together with any interest payable thereon, shall be paid to the LLC Seller promptly upon receipt from the applicable Governmental Authority. The Purchaser shall consider, if the LLC Seller so requests and at the LLC Seller’s expense, causing the relevant entity to file for and obtain any Tax Refund to which the LLC Seller is entitled under this Section 10.3(a). For purposes of this Section 10.3(a), if (x) the amount of Taxes in respect of a Straddle Tax Period paid by the Company on or before the Closing Date or taken into account in Net Working Capital, exceeds (y) the amount of such Taxes relating to the portion of such Straddle Tax Period ending on the Closing Date (as determined, under Section 10.3(b)), such excess shall be treated as a Tax Refund.

 

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(b)     Straddle Tax Periods. For purposes of this Agreement, Tax liabilities with respect to a Tax period which begins on or before and ends after the Closing Date (a “Straddle Tax Period”) shall be apportioned between the portion of such period ending on the Closing Date and the portion beginning on the day after the Closing Date. The portion of any Taxes for any Straddle Tax Period allocable to the Pre-Closing Tax Period shall be determined as follows: (i) in the case of any real and personal property Taxes and franchise Taxes not based on gross or net income, based on the total amount of such Taxes for the relevant Straddle Tax Period multiplied by a fraction, the numerator of which shall be the number of days in such Straddle Tax Period through the Closing Date and the denominator of which shall be the total number of days in such Straddle Tax Period, and (ii) in the case of any Taxes other than those described in clause (i), as if such taxable period ended at the close of the Closing Date; provided, however, that for purposes of this clause (ii), any transactions outside the Ordinary Course of Business of the Company following the Closing on the Closing Date shall be allocable to the portion of the Straddle Tax Period following the Closing Date.

 

(c)     Tax Returns. The LLC Seller shall prepare and timely file, or shall cause to be prepared and timely filed, any income Tax Returns required to be filed by or with respect to the Company for all Tax periods ending on or before the Closing Date which have not been filed as of the Closing Date (such Tax Returns, “Pre-Closing Period Tax Returns”). In order to facilitate preparation of such Tax Returns, the Purchaser shall, within a reasonable period of time after the LLC Seller’s written request, provide the LLC Seller with such information as the LLC Seller shall identify that is reasonably necessary for preparing Tax Returns described in this Section 10.3(c). The LLC Seller shall permit the Purchaser to review and comment on any Pre-Closing Period Tax Return that relates solely to the Company (and not any returns that include the LLC Seller or any Affiliate) at least thirty (30) days prior to the due date (including extensions) for filing such Pre-Closing Period Tax Return and make any changes reasonably requested by the Purchaser, with any dispute relating thereto to be resolved by the Firm. The Purchaser shall execute and file or cause to be executed and filed all such Pre-Closing Period Tax Returns on or prior to the due date (including extensions) for filing such Pre-Closing Period Tax Returns. The Purchaser, at the LLC Seller’s expense, shall prepare and timely file, or shall cause to be prepared and timely filed, any other Tax Returns first required to be filed by or with respect to the Company for all Tax periods ending on or before the Closing Date which have not been filed as of the Closing Date and any Tax Returns required to be filed for any Straddle Tax Periods. The Purchaser, at the LLC Seller’s expense, shall permit the LLC Seller to review and comment on any such Tax Return that could result in a claim for indemnity against the LLC Seller under this Agreement at least thirty (30) days prior to the due date (including extensions) for filing such Pre-Closing Period Tax Return or Straddle Tax Period Tax Return and make any changes reasonably requested by the LLC Seller, with any dispute relating thereto to be resolved by the Firm.

 

(d)     Cooperation. In connection with the preparation of Tax Returns and audit examinations relating to the Company by any Governmental Authority or administrative or judicial proceedings resulting therefrom, the LLC Seller and the Purchaser will cooperate fully with one another, including the furnishing or making available on a timely basis of records, personnel (as reasonably required), books of account, powers of attorney or other materials necessary or helpful for the preparation of Tax Returns, the conduct of audit examinations or the defense of claims by Taxing Authorities as to the imposition of Taxes.

 

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(e)     Tax Contests. After the Closing Date, except as set forth in this Section 10.3(e), the Company shall control the conduct, through counsel of its own choosing, of any audit or administrative or judicial proceeding involving any asserted Tax liability with respect to the Company (each a “Tax Contest”). In the case of a Tax Contest after the Closing Date that relates solely to income Taxes in Pre-Closing Tax Periods, the LLC Seller may elect to control the conduct of such Tax Contest, using counsel or accountants reasonably satisfactory to the Company, but the Company shall have the right to participate in such Tax Contest at its own expense, and the LLC Seller shall not settle, compromise or concede any portion of such Tax Contest that could affect the income Tax liability of the Company for any taxable year (or portion thereof) after the Closing Date without the written consent of the Company, which consent will not be unreasonably withheld, delayed or conditioned; provided that, if the LLC Seller fails to assume control of the conduct of any such Tax Contest within thirty (30) days following the receipt by the LLC Seller of Notice of such Tax Contest from the Purchaser, then the Company shall have the right to assume control of such Tax Contest. In the case of any Tax Contest relating to any Taxes in a Pre-Closing Tax Period (including any Straddle Tax Period) that is not controlled by the LLC Seller pursuant to this Section 10.3(e), (i) the LLC Seller shall have the right to participate in such Tax Contest at the expense of the LLC Seller and (ii) the Purchaser shall not allow the Company to settle or otherwise resolve such Tax Contest without the prior written permission of the LLC Seller, which consent shall not be unreasonably withheld, conditioned or delayed, in each case only to the extent such Tax Contest could result in the LLC Seller being liable pursuant to this Agreement or under applicable Law.

 

(f)     Purchaser Tax Actions. Except as otherwise required under applicable Law, following the Closing, neither the Purchaser nor the Company will (and neither the Purchaser nor the Company will allow any of its Affiliates to): (i) file, amend or modify any Tax Return of the Company for any Pre-Closing Tax Period (other than a Straddle Tax Period), (ii) file, amend or revoke any Tax election for the Company for a Pre-Closing Tax Period (other than a Straddle Tax Period), (iii) surrender any right to claim a refund of Taxes relating to the Company relating to any Pre-Closing Tax Period, (iv) enter into any closing agreement relating to any Tax Return of the Company for any tax period ending on or before the Closing Date, or (v) make a voluntary disclosure to a Governmental Authority with respect to any Tax or Tax Returns of the Company for any tax period ending on or before the Closing Date, in each case, without the prior written consent of the LLC Seller.

 

(g)     Tax Treatment. The Purchaser and its Affiliates, the Company, and the LLC Seller agree with respect to certain Tax matters as follows:

 

(i)     To treat any Transaction Tax Deductions paid or accrued on or before the Closing Date as deductible in a Pre-Closing Tax Period to the fullest extent allowable by applicable Laws and no party hereto shall apply the “next day rule” under Treasury Regulation Section 1.1502-76(b)(1)(ii)(B) to such deductions.

 

(ii)      Except as provided in clause (i), to treat any gains, income, deductions, losses, or other items realized by the Company for income Tax purposes with respect to any transaction outside the Ordinary Course of Business of the Company following the Closing on the Closing Date as occurring on the day immediately following the Closing Date and apply the “next day rule” under Treasury Regulation Section 1.1502-76(b)(1)(iv)(B) to such items.

 

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(iii)     That no election shall be made by any party under Treasury Regulation Section 1.1502-76(b)(2) (or any similar provision of state, local, or non-U.S. Law) to ratably allocate items incurred by the Company for the year in which the Closing occurs.   

 

Unless otherwise required by a final determination of a Governmental Authority, the Purchaser shall cause the Company to file all Tax Returns consistently with the agreements set forth in this Section 10.3(g) and not take any position inconsistent with the agreement in this Section 10.3(g) during an audit or other proceeding with any Governmental Authority.

 

(h)     Transfer Taxes. Any and all transfer, documentary, sales, use, registration and real property transfer or gains Tax, stamp Tax, excise Tax, stock transfer Tax, or other similar Tax imposed as a result of the transactions contemplated by this Agreement (collectively, “Transfer Taxes”) and any penalties or interest with respect to the Transfer Taxes shall be borne 50% by the Purchaser and 50% by the LLC Seller. The Purchaser and the LLC Seller agree to cooperate to establish any available exemption from (or otherwise reduce) any such Transfer Taxes, and also agree to cooperate in the filing of any Tax Returns with respect to the Transfer Taxes, including by promptly supplying any information in their possession that is reasonably necessary to complete such Tax Returns.

 

(i)     Purchase Price Allocation. Within thirty (30) days after the date that the Purchase Price is determined (as set forth herein), the Purchaser will cause The McLean Group (with the approval of Grant Thornton) to allocate the Purchase Price in accordance with Section 1060 of the Code and the Regulations promulgated thereunder (the “Allocation Schedule”). The Allocation Schedule as finally determined by The McLean Group (with the approval of Grant Thornton) pursuant to this Section 10.3(i) shall be binding on the parties and all Tax Returns filed by the Purchaser and its Affiliates and the LLC Seller will be prepared consistently with such Allocation Schedule.

 

11.     SPECIFIC PERFORMANCE. Each of the Purchaser, the Sellers, and the Company acknowledges that the other parties may be irreparably harmed and that there may be no adequate remedy at law for any violation by any of them of any of the covenants or agreements contained in this Agreement. It is accordingly agreed that, in addition to, but not in lieu of, any other remedies that may be available upon the breach of any such covenants or agreements (including remedies under Section 9), each party shall have the right to seek injunctive relief to restrain a breach or threatened breach of, or otherwise to seek specific performance of, the other parties’ covenants and agreements contained in this Agreement. Each party agrees that it will not oppose the granting of an injunction, specific performance, or other equitable relief on the basis that the party seeking such injunction, specific performance or other equitable relief has an adequate remedy at law or that any award of specific performance is not an appropriate remedy for any reason at law or equity. In the event that any party seeks an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the terms and provisions of this Agreement, such party shall not be required to provide any bond or other security in connection with any such injunction or other order, decree, ruling or judgment.

 

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12.     PUBLIC STATEMENTS. (a) Prior to the Closing, (i) neither the Company nor any Seller, without the prior written approval of the Purchaser, and (ii) the Purchaser, without the prior written approval of the LLC Seller, and (b) following the Closing (i) the Sellers will not, without the prior written approval of the Purchaser, and (ii) neither the Purchaser nor the Company, without the prior written approval of the LLC Seller, will (1) make any press release or other public announcement concerning the transactions contemplated by this Agreement, except to the extent required by Law, in which case the other party will be so advised as far in advance as possible and will be given an opportunity to comment on such release or announcement, or (2) disclose the Purchase Price, the approximate amount of the Purchase Price, any other financial information from which the approximate amount of the Purchase Price may be determined, or disclose any of the other essential terms of this Agreement and except as required by Law or required for financial reporting purposes and except that the parties (or their respective Affiliates) may disclose such terms to their respective employees, accountants, advisors and other Representatives or their respective past, present or prospective financing sources or other investors as necessary in connection with the ordinary conduct of their respective businesses (so long as such Persons agree to or are bound by contract to keep the terms of this Agreement confidential on terms substantially similar to those set forth in this Agreement that are applicable to the disclosing party hereunder).

 

13.     EXPENSES. Except as expressly set forth herein, each party shall bear its own legal and other fees and expenses incurred in connection with its negotiating, executing and performing this Agreement and the other Transaction Documents, including any related investment banking broker or finder’s fees with which any of them have contracted, for periods on or before the Closing Date. For the avoidance of doubt, the Purchaser shall be responsible for 50% and the LLC Seller shall be responsible for 50% of the R&W Insurance Expenses and the HSR Act related filing fees.

 

14.     AMENDMENT AND ASSIGNABILITY. This Agreement may be amended only by the execution and delivery of a written instrument by or on behalf of (a) prior to the Closing, all of the parties hereto and (b) after the Closing, the Purchaser and the LLC Seller. This Agreement will be binding upon and will inure to the benefit of the parties hereto and their respective successors and permitted assigns. This Agreement may not be assigned by any party without the prior written consent of the other parties hereto in their sole discretion.

 

15.     NOTICES. All notices, demands and other communications pertaining to this Agreement (“Notices”) must be in writing addressed as follows:

 

	 	(a)	If to the Company (prior to the Closing), to:
	 	 	 
	 	 	
			Incentive Technology Group, LLC

			2121 Crystal Drive, 7th Floor

			Arlington, Virginia 22202

			Attention: Shadi Michelle Branch and Adam Branch

			 

			with a copy (which shall not constitute notice but shall be required for notice) to:

			 

			Holland & Knight LLP

			1650 Tysons Boulevard, Suite 1700

			Tysons, Virginia 22102

			Attention: Adam J. August and Ashley Plemons

			E-Mail: Adam.August@hklaw.com and Ashley.Plemons@hklaw.com

			

 

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	 	(b)	If to any Seller, to:
	 	 	 
	 	 	
			Project Lucky Holdings, LLC

			1110 23rd St. NW, Apt 609

			Washington, DC 20037

			Attention: Shadi Michelle Branch and Adam Branch

			 

			with a copy (which shall not constitute notice but shall be required for notice) to:

			 

			Holland & Knight LLP

			1650 Tysons Boulevard, Suite 1700

			Tysons, Virginia 22102

			Attention: Adam J. August and Ashley Plemons

			E-Mail: Adam.August@hklaw.com and Ashley.Plemons@hklaw.com

			
	 	 	 
	 	(c)	If to the Purchaser (or the Company following the Closing), to:
	 	 	 
	 	 	
			ICF Incorporated, L.L.C.

			9300 Lee Highway

			Fairfax, VA 22031

			Attention: General Counsel

			 

			with a copy (which shall not constitute notice but shall be required for notice) to:

			DLA Piper LLP (US)

			500 Eighth Street, NW

			Washington, D.C. 20004

			Attention: Jeffrey Houle and Thomas Pilkerton

			Email: Jeffrey.Houle@dlapiper.com and

			Thomas.Pilkerton@dlapiper.com

			

 

Notices will be deemed given five (5) Business Days after being mailed by certified or registered United States mail, postage prepaid, return receipt requested, or on the first Business Day after being sent, prepaid, by nationally recognized overnight courier that issues a receipt or other confirmation of delivery. Notices delivered via electronic mail or e-mail in PDF format will be deemed given upon transmission; provided that (except with respect to notices via electronic mail or PDF in email format pursuant to Section 1.3(b)(ii)(B), Section 5.1 and 5.2, which will be deemed given upon transmission with no further notice required) by no later than two (2) days thereafter such notice is confirmed in writing and sent via one of the methods described in the immediately previous sentence. Notices delivered by personal service will be deemed given when actually received by the recipient. Any party may change the address to which Notices under this Agreement are to be sent to it by giving written notice of a change of address in the manner provided in this Agreement for giving Notice.

 

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16.     WAIVER. Unless otherwise specifically agreed in writing to the contrary: (a) the failure of any party at any time to require performance by the other of any provision of this Agreement will not affect such party’s right thereafter to enforce the same; (b) no waiver by any party of any default by any other party will be valid unless in writing and acknowledged by an authorized representative of the non-defaulting party, and no such waiver will be taken or held to be a waiver by such party of any other preceding or subsequent default; and (c) no extension of time granted by any party for the performance of any obligation or act by any other party will be deemed to be an extension of time for the performance of any other obligation or act hereunder. Notwithstanding the foregoing, upon the Closing, all conditions set forth in Sections 6.1 and 6.2, to the extent any remain unsatisfied, shall be deemed waived by the applicable party(ies).

 

17.     ENTIRE AGREEMENT. This Agreement (including the Exhibits and Disclosure Schedules hereto, which are incorporated by reference herein and deemed a part of this Agreement), the Transaction Documents and the Confidentiality Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and referenced herein, and supersede and terminate any prior agreements between the parties (written or oral) with respect to the subject matter hereof, including that certain Letter of Intent dated as of December 13, 2019 by and between ICF Consulting Group, Inc. and the Company and that certain Exclusivity Agreement dated as of December 13, 2019 by and between ICF Consulting Group, Inc. and the Company.

 

18.     COUNTERPARTS; ELECTRONIC SIGNATURE. This Agreement may be executed in any number of counterparts, each of which will be deemed an original, with the same effect as if the signature on each such counterpart were on the same instrument. Further, this Agreement may be executed by transfer of an originally signed document by electronic or e-mail in PDF format, each of which will be as fully binding as an original document.

 

19.     SEVERABILITY. In case any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions will not in any way be affected or impaired. Any illegal or unenforceable term will be deemed to be void and of no force and effect only to the minimum extent necessary to bring such term within the provisions of applicable Law and such term, as so modified, and the balance of this Agreement will then be fully enforceable.

 

20.     CHOICE OF LAW. This Agreement is to be construed and governed by the laws of the State of Delaware (without giving effect to principles of conflicts of laws).

 

21.     WAIVER OF JURY TRIAL. EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 21.

 

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22.     CONSENT TO JURISDICTION.  EXCEPT AS SET FORTH IN SECTION 1.3, EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE OR ANY FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF DELAWARE, IN RESPECT OF THE INTERPRETATION AND ENFORCEMENT OF THE PROVISIONS OF THIS AGREEMENT, AND HEREBY WAIVES, AND AGREES NOT TO ASSERT, AS A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING FOR THE INTERPRETATION OR ENFORCEMENT HEREOF OR OF ANY SUCH DOCUMENT, (A) THAT IT IS NOT SUBJECT THERETO OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN SAID COURTS, (B) THAT THE VENUE THEREOF MAY NOT BE APPROPRIATE OR (C) THAT THE INTERNAL LAWS OF THE STATE OF DELAWARE DO NOT GOVERN THE VALIDITY, INTERPRETATION OR EFFECT OF THIS AGREEMENT, AND THE PARTIES HERETO IRREVOCABLY AGREE THAT ALL DISPUTES WITH RESPECT TO SUCH ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN SUCH A STATE OR FEDERAL COURT. EACH PARTY HEREBY CONSENTS TO AND GRANTS ANY SUCH COURT JURISDICTION OVER THE PERSON OF SUCH PARTIES AND OVER THE SUBJECT MATTER OF ANY SUCH DISPUTE AND AGREES THAT MAILING OF PROCESS OR OTHER PAPERS IN CONNECTION WITH ANY SUCH ACTION OR PROCEEDING IN THE MANNER PROVIDED IN SECTION 15, OR IN SUCH OTHER MANNER AS MAY BE PERMITTED BY LAW, SHALL BE VALID AND SUFFICIENT SERVICE THEREOF.

 

23.     REPRESENTATION BY COUNSEL.

 

(a)     Each party has been represented by its own counsel in connection with the negotiation and preparation of this Agreement and, consequently, each party hereby waives the application of any rule of law that would otherwise be applicable in connection with the interpretation of this Agreement, including any rule of law to the effect that any provision of this Agreement will be interpreted or construed against the party whose counsel drafted that provision. This Agreement constitutes notice to the Purchaser that the Company has engaged Holland & Knight LLP as its legal counsel in connection with the transactions contemplated by this Agreement; and the Purchaser hereby (i) consents to the continued representation of the Company by Holland & Knight LLP in relation to the transactions contemplated by this Agreement notwithstanding the fact that Holland & Knight LLP may have represented, and may currently or in the future represent, the Purchaser and/or any of its Affiliates with respect to unrelated matters and (ii) waives any actual or alleged conflict and actual or alleged violation of ethical or comparable rules applicable to Holland & Knight LLP, as applicable, that may arise from their representation of the Company and/or its Affiliates in connection with the transactions contemplated by this Agreement, including representing the Company or its Affiliates against the Purchaser and/or any of its Affiliates in litigation, arbitration or mediation in connection therewith.  In addition, the Purchaser hereby acknowledges that its consent and waiver under this paragraph is voluntary and informed, and that the Purchaser has obtained independent legal advice with respect to this consent and waiver.

 

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(b)     The parties agree that, notwithstanding the fact that Holland & Knight LLP has represented the Company in connection with this Agreement, and may have also represented the Company in connection with matters other than the transaction that is the subject of this Agreement prior to Closing, Holland & Knight LLP will be permitted in the future, prior to and after the Closing, to represent one or more of such Affiliates, or their respective equity holders, officers, directors or managers in connection with matters in which such Affiliates or their respective equity holders, officers, directors or managers are adverse to the Company or any of their respective Affiliates, including any disputes that such Affiliates or their respective equity holders, officers, directors or managers may hereafter have with the Company and/or with the Purchaser arising out of, or related to, this Agreement. The Company and the Purchaser, who is represented by independent counsel in connection with the transactions contemplated by this Agreement, hereby agree, in advance, to waive any actual or potential conflict of interest that may hereafter arise in connection with Holland & Knight’s future representation of one or more of the Company’s Affiliates or their respective equity holders, officers, directors or managers on matters in which the Interests of such Affiliate or their respective equity holders, officers, directors or managers are adverse to the Interests of the Company and/or the Purchaser, including any matters that arise out of this Agreement or that are substantially related to this Agreement or to any prior representation by Holland & Knight LLP of the Company.

 

(c)     The parties agree that, immediately prior to the Closing, without the need for any further action (i) all right, title and interest of the Company in and to all Protected Communications shall thereupon transfer to and be vested solely in the Sellers, and (ii) any and all protections from disclosure, including attorney-client privileges and work product protections, associated with or arising from any Protected Communications that would have been exercisable by the Company shall thereupon be vested exclusively in the Sellers and shall be exercised or waived solely by the Sellers. All rights, files, and information that are not Protected Communications, including matters that relate to the operation of the Company shall belong to the Company. Neither the Company, Purchaser or any Person acting on any of their behalf shall, without the prior written consent of the LLC Seller, assert or waive or attempt to assert or waive any such protection against disclosure of Protected Communications, including the attorney-client privilege or work product protection with respect to, or to discover, obtain, use or disclose or attempt to discover, obtain, use or disclose any Protected Communications in connection with any dispute with Sellers or the Company relating to this Agreement, or any of the transactions contemplated herein. Notwithstanding the foregoing, in the event that a dispute arises between Purchaser or the Company, on the one hand, and a Person other than the Sellers or one of his, her or its Affiliates, on the other hand, after the Closing, the Purchaser and the Company, as applicable, may assert the attorney-client privilege to prevent disclosure of Protected Communications to such third party.

 

24.     NO THIRD PARTY BENEFICIARIES. Except with respect to Holland & Knight LLP under Section 23, this Agreement will not confer any rights upon any Person other than the parties hereto and their respective successors and permitted assigns.

 

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25.     EXHIBITS, APPENDICES AND DISCLOSURE SCHEDULE. The Exhibits, Appendices, and Disclosure Schedules referenced in this Agreement are a material part of this Agreement. Each Disclosure Schedule will be deemed incorporated into this Agreement. The Disclosure Schedules are intended only to qualify and limit the representations, warranties, and covenants in the Agreement and shall not be deemed to expand in any way the scope or effect of any such representations, warranties, or covenants. No Disclosure Schedule relating to any possible breach or violation of any agreement, law or regulation shall be construed as an admission that any such breach or violation has actually occurred. No reference to or disclosure of any item or other matter in the Disclosure Schedules will be construed as an admission or indication that such item or other matter disclosed is material or such item or other matter is required to be referred to or disclosed in the Disclosure Schedules. Disclosures made for the purpose of any one Disclosure Schedule shall be deemed made for the purpose of all representations and warranties so long as the applicability to the other representations and warranties is reasonably apparent from such disclosure. Any reference to a contract, statement, plan, report or other document of any kind in the Disclosure Schedules shall be deemed to be a disclosure thereof to the extent the applicable representation or warranty calls for a listing of the same and it shall not in such case be necessary to identify or reference specific provisions of such documents except to the extent necessary to clarify or qualify such disclosure.

 

26.     DEFINITIONS; INTERPRETATION.

 

26.1     Definitions. As used in this Agreement, the following terms have the following meanings:

 

“Accounts Payable” means the Company’s accounts payable as of the Effective Time as calculated pursuant to the Net Working Capital Principles.

 

“Accounts Receivable” means the Company’s accounts receivable as of the Effective Time as calculated pursuant to the Net Working Capital Principles.

 

“Accrued Expenses” means the Company’s accrued expenses as of the Effective Time as calculated pursuant to the Net Working Capital Principles.

 

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly, Controls, is Controlled by, or is under common Control with or of, such Person. The term “Control” (including, with correlative meaning, the terms “Controlled by” and “under common Control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Agreement” has the meaning ascribed to such term in the Preamble of this Agreement.

 

“Allocation Schedule” has the meaning ascribed to such term in Section 10.3(i).

 

“Alternative Proposal” has the meaning ascribed to such term in Section 5.5.

 

“Assets” means all Cash and Cash equivalents (which, for the avoidance of doubt, may be distributed by the Company prior to Closing), marketable securities, Personal Property and real property of the Company and all Contracts and Leases to which the Company is a party, all Permits held by the Company, all Intellectual Property and all other assets of the Company.

 

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“Assignment of LLC Interests” means that certain Assignment of Limited Liability Company Interests by and between LLC Seller and the Purchaser in the form attached hereto as Exhibit D.

 

“Bank Account” has the meaning ascribed to such term in Section 3.29.

 

“Base Purchase Price” has the meaning ascribed to such term in Section 1.1.

 

“Benefit Plans” has the meaning ascribed to such term in Section 3.17(a).

 

“Business Day” means a day, other than a Saturday or Sunday, on which commercial banks in Washington, DC are open for the general transaction of business.

 

“Cash” means, as of the Effective Time, the result of (a) the aggregate amount of cash and cash equivalents held in the bank and other accounts, including money market accounts, of the Company, plus (b) deposits in transit and deposits not yet cleared, minus (c) the aggregate balance of all outstanding checks written against such accounts but only to the extent the obligations satisfied by such checks have been appropriately excluded from Net Working Capital, Company Transaction Expenses or Indebtedness.

 

“Cash Offsets” means the amount of any deferred revenue, customer deposits, advance payments and similar amounts as of the Effective Time.

 

“Charter” means such Person’s Articles or Certificate of Incorporation, Organization or Formation, or their equivalent, and all amendments thereto.

 

“Claim” means any written third party claim, action, litigation, proceeding (arbitral, administrative, legal, or otherwise), suit, or demand.

 

“Claim Notice” has the meaning ascribed to such term in Section 9.6(a).

 

“Closing” has the meaning ascribed to such term in Section 1.5(a).

 

“Closing Bonus Payments” means the aggregate amounts of bonus or compensation payments to be paid by the Company at the Closing from the Base Purchase Price, as set forth on Schedule CBP.

 

“Closing Date” has the meaning ascribed to such term in Section 1.5(a).

 

“Closing Purchase Price” has the meaning ascribed to such term in Section 1.1.

 

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

 

“Company” has the meaning ascribed to such term in the Preamble.

 

“Company IP” means all Intellectual Property owned by the Company.

 

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“Company Systems” means the computer systems, telecommunications, networks and other similar or related items of automated computerized or software systems that are owned or controlled by the Company.

 

“Company Transaction Expenses” means, as of immediately prior to the Closing, the aggregate amount outstanding of all fees and expenses payable by the Company or the Sellers in connection with the consummation of the transactions contemplated hereby (or incurred in connection with the transactions hereunder) including any of the foregoing payable to legal counsel, accountants, investment bankers, financial advisors, brokers, finders, or consultants. For the avoidance of doubt, Company Transaction Expenses shall (i) include 50% of the R&W Insurance Expenses, 50% of the Tail Policy expenses pursuant to Section 5.10(a) and 50% of the HSR Act filing fees pursuant to Section 5.9(b) (in each case to the extent not paid by the Company prior to the Closing) and (ii) exclude Closing Bonus Payments, UAR Payments, Indebtedness and Net Working Capital; provided, however, that any employer portion of Taxes due on Closing Bonus Payments and UAR Payments shall be Company Transaction Expenses.

 

“Competing Business” has the meaning ascribed to such term in Section 5.13(a).

 

“Confidential Information” has the meaning ascribed to such term in Section 5.6.

 

“Confidentiality Agreement” has the meaning ascribed to such term in Section 5.6.

 

“Continuing Employees” has the meaning ascribed to such term in Section 5.8(a).

 

“Contracts” means all contracts, agreements, binding arrangements, bonds, notes, indentures, mortgages, debt instruments, licenses, franchises, leases and other instruments or obligations of any kind, written or oral (including any amendments and other modifications thereto), to which the Company is a party and which are in effect on Execution Date and have continuing obligations by any party. For the avoidance of doubt, unless otherwise expressly indicated task, purchase or delivery order(s) or statements of work under a Contract will not constitute a separate Contract, but will be part of the Contract under which it was issued.

 

“Control” has the meaning ascribed to such term in the definition of Affiliate.

 

“Convertible Securities” means all convertible securities (including convertible promissory notes) or other rights to subscribe for or purchase any equity securities or other equity Interests of the Company, or securities convertible into or exchangeable for, or that otherwise confer on the holder any right to acquire, any equity securities of the Company.

 

“Copyrights” has the meaning ascribed to such term in the definition of Intellectual Property.

 

“Covered Customer” has the meaning ascribed to such term in Section 5.13(a).

 

“Covered Employee” means an individual employed by the Company as of the Closing.

 

“Current Government Contracts” means those Government Contracts of which the period of performance has not yet expired or terminated.

 

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“Damages” means all assessments, levies, losses, fines, liabilities, payments, penalties, damages, interest, costs and expenses, including reasonable attorneys’ fees and expenses, expressly excluding exemplary or punitive damages except to the extent awarded by any Governmental Authority to a party other than an Indemnitee in a Third Party Claim.

 

“Disclosure Schedules” means the disclosure schedules to this Agreement.

 

“Dispute Resolution Procedure” means the following procedures, in connection with engaging the Firm, each party agrees, if requested by the Firm, to work with the Firm to negotiate and execute an engagement letter on terms reasonably satisfactory to the LLC Seller and the Purchaser. The Purchaser, the Sellers and their respective agents will cooperate with the Firm during its resolution of any disagreements included in the Objection Notice. Unless otherwise agreed by the parties in writing, the Firm shall make its determination in accordance with the guidelines and procedures set forth in this Agreement and on Exhibit C; provided that any delay in delivering such determination shall not invalidate the award or otherwise deprive the Firm of jurisdiction. The Firm will consider only those items and amounts set forth in the Objection Notice that the Purchaser on the one hand and the LLC Seller on the other hand are unable to resolve. In resolving any disputed item, the Firm may not assign a value to any item greater than the greatest value for such item claimed by any party or less than the smallest value for such item claimed by any party. Except as otherwise specified herein, the scope of the disputes to be determined by the Firm is limited to whether the preparation of the Final Closing Balance Sheet and the calculation of Net Working Capital were done in a manner consistent with Section 1.3(b) and whether there were mathematical errors in the preparation of the Final Closing Balance Sheet or the calculation of Net Working Capital, and the Firm is not to make any other determination unless requested in writing by the LLC Seller and the Purchaser. The Firm’s determination of Net Working Capital, including each of the components thereof, shall be based solely on written materials submitted by the Purchaser and the LLC Seller (i.e., not on independent review) and on the definitions included herein. The fees and disbursements of the Firm and the reasonable attorneys’ fees and expenses of the parties (collectively, the “Purchase Price Adjustment Dispute Expenses”) shall be borne (i) by the Purchaser in the proportion that the aggregate dollar amount of the disputed items that are successfully disputed by the LLC Seller (as finally determined by the Firm) bears to the aggregate dollar amount of all disputed items and (ii) by the LLC Seller in accordance with the proportion that the aggregate dollar amount of the disputed items that are unsuccessfully disputed by the LLC Seller (as finally determined by the Firm) bears to the aggregate dollar amount of all disputed items. For example, if the parties dispute $1,000,000 of a proposed Purchase Price Adjustment to be paid to the LLC Seller, the Firm determines that such payment should be $400,000 and the Purchase Price Adjustment Dispute Expenses are $100,000, then (i) the Purchaser shall pay $40,000 (40%) of the Purchase Price Adjustment Dispute Expenses and (ii) by the LLC Seller shall pay $60,000 (60%) of the Purchase Price Adjustment Dispute Expenses. The determination of the Firm as to any disputed matters shall be set forth in a written report of award delivered to the Purchaser and the LLC Seller, and shall be deemed final, conclusive and binding on the parties and shall not be subject to collateral attack for any reason. The parties agree that judgment may be entered upon the written report of award of the Firm in any court located in Arlington, Virginia. Prior to the Firm’s determination as provided for herein, (i) the Purchaser, on the one hand, and by the LLC Seller, on the other hand, will each pay fifty percent (50%) of any retainer paid to the Firm; and (ii) during the engagement of the Firm, the Firm will bill fifty percent (50%) of the total charges to each of the Purchaser, on the one hand, and by the LLC Seller, on the other hand. In connection with the Firm’s determination as provided for herein, the Firm shall also determine, taking into account all fees and expenses already paid by each of the Purchaser, on the one hand, and the LLC Seller, on the other hand, as of the date of such determination, the allocation of the Purchase Price Adjustment Dispute Expenses between the Purchaser and the LLC Seller, which such determination shall be conclusive and binding upon the parties hereto.

 

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“DOJ” has the meaning ascribed to such term in Section 5.9(b). 

 

“Domain Names” has the meaning ascribed to such term in the definition of Intellectual Property.

 

“Effective Time” has the meaning ascribed to such term in Section 1.5(a).

 

“End Date” has the meaning ascribed to such term in Section 8.1(b).

 

“Environmental Condition” means any contamination or damage to the environment caused by or relating to the use, handling, storage, treatment, recycling, generation, transportation, release, spilling, leaching, pumping, pouring, emptying, discharging, injection, escaping, disposal, dumping or threatened release of Hazardous Materials by the Company. With respect to Claims by employees or other third parties, Environmental Condition will also include the exposure of Persons to Hazardous Materials.

 

“Environmental Laws” means any Laws relating to (i) protection, preservation or cleanup of the environment or natural resources; or (ii) the manufacture, generation, production, installation, use, handling, storage, treatment, transportation, disposal, or release of or exposure to hazardous wastes or hazardous substances.

 

“Equity” has the meaning set forth in the Recitals to this Agreement.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

“Escrow Agent” has the meaning ascribed to such term in Section 1.1(d).

 

“Escrow Agreement” has the meaning ascribed to such term in Section 1.1(d).

 

“Escrow Termination Date” has the meaning ascribed to such term in Section 9.12.

 

“Estimated Accounts Payable” has the meaning ascribed to such term in Section 1.3(a).

 

“Estimated Accounts Receivable” has the meaning ascribed to such term in Section 1.3(a).

 

“Estimated Accrued Expenses” has the meaning ascribed to such term in Section 1.3(a).

 

“Estimated Cash” has the meaning ascribed to such term in Section 1.2.

 

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“Estimated Cash Offsets” has the meaning ascribed to such term in Section 1.2.

 

“Estimated Closing Balance Sheet” has the meaning ascribed to such term in Section 1.3(a).

 

“Estimated Company Transaction Expenses” has the meaning set forth in Section 1.2.

 

“Estimated Indebtedness” has the meaning ascribed to such term in Section 1.2.

 

“Estimated Net Working Capital” has the meaning ascribed to such term in Section 1.3(a).

 

“Estimated Prepaid Expenses” has the meaning ascribed to such term in Section 1.3(a).

 

“Excluded Facility” has the meaning ascribed to such term in Section 3.20(a).

 

“Execution Date” has the meaning ascribed to such term in the Preamble of this Agreement.

 

“Exhibits” means the exhibits to this Agreement.

 

“Export Control Laws” means collectively the Arms Export Control Act (22 U.S.C. §§ 2778 et. Seq.), the International Traffic in Arms Regulations (ITAR) (22 C.F.R. Parts 120-130), the Export Administration Regulations (EAR) (15 C.F.R. Parts 730-774) and associated executive orders, and the Laws implemented by the Office of Foreign Assets Controls (OFAC), United States Department of the Treasury (OFAC Regulations) (31 C.F.R. Parts 500-599).

 

“FAR” means the Federal Acquisition Regulation (48 C.F.R., Chapter 1).

 

“Final Accounts Payable” has the meaning ascribed to such term in Section 1.3(b)(iii).

 

“Final Accounts Receivable” has the meaning ascribed to such term in Section 1.3(b)(iii).

 

“Final Accrued Expenses” has the meaning ascribed to such term in Section 1.3(b)(iii).

 

“Final Cash” has the meaning ascribed to such term in Section 1.3(b)(iii).

 

“Final Cash Offsets” has the meaning ascribed to such term in Section 1.3(b)(iii).

 

“Final Closing Balance Sheet” has the meaning ascribed to such term in Section 1.3(b)(i)(A).

 

“Final Closing Statement” has the meaning ascribed to such term in Section 1.3(b)(i)(A).

 

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“Final Company Transaction Expenses” has the meaning ascribed to such term in Section 1.3(b)(iii)(A).

 

“Final Indebtedness” has the meaning ascribed to such term in Section 1.3(b)(iii)(A).

 

“Final Net Working Capital” has the meaning ascribed to such term in Section 1.3(b)(iii)(A).

 

“Final Prepaid Expenses” has the meaning ascribed to such term in Section 1.3(b)(iii).

 

“Financial Statements” has the meaning ascribed to such term in Section 3.14.

 

“Firm” means FTI Consulting (provided, however, that such firm may not have, or have had in the last three (3) years, a material business relationship with the Company, any Seller or the Purchaser), provided, that if the foregoing is unable to serve as the Firm for any reason whatsoever, including for reasons of conflict of interest, the Purchaser and LLC Seller shall, within five (5) days of receiving notice that such party is unable to serve as the Firm, jointly retain Alvarez & Marsal, in which case Alvarez & Marsal shall be deemed to be the Firm for purposes of this Agreement (provided, however, that such firm may not have, or have had in the last three (3) years, a material business relationship with the Company, any Seller or the Purchaser) or if FTI Consulting and Alvarez & Marsal are both unable to serve as the Firm for any reason whatsoever, including for reasons of conflict of interest, the Purchaser and LLC Seller shall, within five (5) days of receiving notice that such party is unable to serve as the Firm, jointly retain another accounting firm mutually acceptable to them to act as the Firm for purposes of this Agreement solely in accordance with the terms of this Agreement, to resolve any remaining disagreements; provided that if the Purchaser and LLC Seller cannot agree on a mutually acceptable Firm (if none of the foregoing are able to serve), a Firm shall be selected in accordance with the Commercial Arbitration Rules of the AAA. In connection with engaging the Firm, Purchaser and LLC Seller agree, if requested by the Firm, to work with the Firm to negotiate and execute an engagement letter on terms reasonably satisfactory to the Purchaser and LLC Seller.

 

“Flow of Funds Memorandum” has the meaning ascribed to such term in Section 1.2.

 

“Foreign Interest” has the meaning ascribed to such term in Section 4.7.

 

“Fraud” means an act, committed by a party to this Agreement, with intent to deceive another party to this Agreement, in connection with this Agreement and requires (i) a false representation of material fact made in Section 2, Section 3 or Section 4 by such party (excluding the representations and warranties under Section 2.6 and Section 3.31); (ii) with actual knowledge (not imputed or constructive knowledge) that such representation is false; (iii) with an intention to induce the party to whom such representation is made to act or refrain from acting in reliance upon it; (iv) causing that party, in justifiable reliance upon such false representation and with ignorance to the falsity of such representation, to take or refrain from taking action; and (v) causing such party to suffer damage by reason of such reliance. For the avoidance of doubt, “Fraud” shall not include any type of constructive or equitable fraud.

 

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“FTC” has the meaning ascribed to such term in Section 5.9(b).

 

“Fundamental Purchaser Representations” has the meaning ascribed to such term in Section 9.1(a).

 

“Fundamental Seller Representations” has the meaning ascribed to such term in Section 9.1(a).

 

“GAAP” means United States generally accepted accounting principles.

 

“Governing Documents” means the bylaws or limited liability company agreement, as applicable, of the Company, as amended and in effect as of the Execution Date.

 

“Government Bid” means any bid, proposal, offer or quote for supplies, services or construction, whether solicited or unsolicited, made by the Company which is intended by the Company to result in a Government Contract and is outstanding as of the date hereof. A Government Bid (a) includes but is not limited to any bid, proposal, offer or quote made by the Company that has been received or accepted by the offeree or other recipient but has not resulted in a Government Contract prior to the Closing Date, but (b) does not include any bid, proposal, offer or quote made by the Company that has resulted in a Government Contract prior to the Closing Date.

 

“Government Contract” means any prime contract, subcontract or arrangement, joint venture, teaming agreement, basic ordering agreement, blanket purchase agreement, pricing agreement, letter contract, contract awarded under the Federal Supply Schedule program, purchase order, task order or delivery order or other Contract or similar arrangement of any kind, between the Company and (a) any Governmental Authority, (b) any prime contractor or higher tier subcontractor of a Governmental Authority in its capacity as a prime contractor or higher tier subcontractor, or (c) any lower tier subcontractor with respect to any contract of a type described in clauses (a) or (b) above.  A task order, purchase order or delivery order under a Government Contract shall not constitute a separate Government Contract for purposes of this definition, but shall be part of the Government Contract to which it relates.

 

“Governmental Authority” means any federal, state, local, foreign or other governmental, quasi-governmental or administrative body, instrumentality, department or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar dispute-resolving panel or body.

 

“Hazardous Materials” means any substance, material, liquid or gas defined or designated as hazardous or toxic (or by any similar term) under any Environmental Law, or any other material regulated, or that could result in the imposition of liability, under any Environmental Law, including petroleum products and friable materials containing more than one percent (1.0%) asbestos by weight.

 

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

 

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“Indebtedness” means the aggregate amount (including the current portion thereto), without duplication, of which the Company is liable, of (a) indebtedness for money borrowed from others; (b) all obligations evidenced by bonds, debentures, notes, drawn letters of credit, or similar instruments; (c) all obligations in respect of any interest rate swap, hedge or cap agreement; (d) all leases that under GAAP are required to be capitalized; (e) all guarantees, performance bonds, letters of credit, sureties, financial indemnities, pledges or other assurances to pay another Person's debt or to perform another Person's obligation in the case of default (determined at the face value thereof); (f) all liabilities secured by a lien on, or similar right or interest in, any assets; (g) all deferred liabilities (contingent or otherwise), including in respect of the deferred purchase price for any asset, business or property; (h) all recourse factoring or recourse discounting of receivables; (i) accrued but unpaid amounts payable under any qualified or nonqualified deferred compensation arrangement or any annual bonus arrangements, including, without limitation, annual bonus payments with respect to calendar year 2019; (j) accrued but unpaid amounts related to the 401(k) plan for periods prior to Closing; (k) obligations with respect to change of control provision payments (but only to the extent not specifically included in Company Transaction Expenses); (l) any liabilities related to the initial leasehold improvements under the Presidential Tower Lease relating to Tenant’s Work performed by the Company for periods ending on or prior to the Closing Date; (m) any net receivables and liabilities with affiliated entities; and (n) accrued but unpaid interest expense and unpaid penalties, fees, charges and prepayment premiums that are payable with respect to any of such indebtedness; provided, however, that “Indebtedness” specifically excludes any amounts included in Company Transaction Expenses or as assets or liabilities in the calculation of Net Working Capital. For illustrative purposes only, a calculation of “Indebtedness” as of October 31, 2019 is set forth on Schedule C attached hereto.

 

“Indemnitee” has the meaning ascribed to such term in Section 9.6(a).

 

“Indemnitor” has the meaning ascribed to such term in Section 9.6(a).

 

“Indemnity Escrow Account” has the meaning set forth in Section 1.1(d).

 

“Indemnity Escrow Amount” means $956,250.00.

 

“Individual Seller” has the meaning ascribed to such term in the Preamble of this Agreement.

 

“Intellectual Property” means all of the following as they exist in any jurisdiction throughout the world: (i) United States and foreign patents, patent applications, continuations-in-part, divisions or reissues (collectively, “Patents”); (ii) United States federal, state and foreign trademarks, service marks, and trade names, pending applications to register the foregoing, and common law trademarks, service marks and trademarks, designs, logos, and other designations of origin (collectively, “Trademarks”); (iii) any and all copyrightable works of authorship, including registered copyrights in both published works and unpublished works, unregistered copyrights in both published works and unpublished works, and applications to register copyrightable works of authorship (collectively, “Copyrights”); (iv)  trade secrets, and other confidential business information, know-how, concepts, methods, processes, specifications, inventions, formulae, and business plans, (collectively, “Trade Secrets”); (v) all registered domain names (“Domain Names”); and (vi) proprietary computer software, including all source code, object code, and user documentation related thereto.

 

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“Interests” has the meaning ascribed to such term in the Recitals to this Agreement.

 

“Interim Period” has the meaning ascribed to such term in Section 5.1.

 

“IP Licenses” has the meaning ascribed to such term in Section 3.11(a). 

 

“IRS” means the United States Internal Revenue Service.

 

“Key Employees” means the employees of the Company set forth in Schedule A attached hereto.

 

“Knowledge” means (a) with respect to the Company, the actual knowledge of any Seller, Andrew Fehretdinov, Aurora Bushner or Jean Claude Chidiac and (b) with respect to any other Person, the actual knowledge of such Person, in each case of (a) or (b), after a reasonable inquiry in connection with such knowledge Person’s duties in the Ordinary Course of Business on behalf of the Company or such other Person, as applicable.

 

“Laws” means any law, statute, rule, regulation, ordinance, code, directive, writ, injunction, settlement, permit, license, decree or other Order of any Governmental Authority.

 

“Leased Improvements” means all leasehold improvements and fixtures located on the Leased Premises.

 

“Leased Premises” has the meaning ascribed to such term in Section 3.20(a).

 

“Leases” has the meaning ascribed to such term in Section 3.20(a).

 

“Legal Proceeding” means any judicial or administrative action, suit, mediation, arbitration or proceeding.

 

“Liens” means all mortgages, deeds of trust, collateral assignments, security interests, Uniform Commercial Code financing statements, pledges, and hypothecations, as applicable.

 

“LLC Seller” has the meaning ascribed to such term in the Preamble of this Agreement.

 

“Lower-Tier Subcontract” means any Contract entered into by a subcontractor to the Company acting in its capacity as a prime contractor, or by a subcontractor and another subcontractor at a lower tier, to furnish supplies or services for performance of a prime contract.

 

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“Material Adverse Effect” means a material adverse effect upon the financial condition, business, or results of operations of the business of the Company as currently conducted, taken as a whole; provided, however, that any adverse change, event or effect arising from or related to (i) conditions affecting the economy generally, including changes in interest or exchange rates or any governmental shutdown or slowdown, (ii) any act of terrorism, similar calamity, national emergency, or war (whether or not declared) or any escalation or worsening of any of the foregoing, (iii) financial, banking or securities markets (including any disruption thereof and any decline in the price of any security or any market index), (iv) changes in accounting principles, including GAAP, (v) changes in any laws, rules, regulations, orders, enforcement policies or other binding directives issued by any Governmental Authority, or (vi) the availability or cost of equity, debt or other financing to the Purchaser; provided that, with respect to a matter described in any of the foregoing clauses (i), (iii), (iv), and (v), such matter shall only be excluded to the extent such matter does not have a disproportionate effect on the Company, taken as a whole, relative to other comparable entities operating in the industry in which the Company operates.

 

“Material Contracts” means Contracts required to be listed on Schedule 3.12(a).

 

“Most Recent Balance Sheet Date” has the meaning ascribed to such term in Section 3.14.

 

“Net Working Capital” means the Company’s current assets excluding Cash, income Tax assets, Indebtedness, and any receivables related to the leasehold improvements under the Presidential Tower Lease, less its current liabilities excluding Indebtedness and Company Transaction Expenses, and accrued bonuses and 401(k) contributions associated with calendar year 2020 performance, in each case as calculated pursuant to the Net Working Capital Principles. An illustrative example of Net Working Capital is set forth on Schedule NWC.

 

“Net Working Capital Principles” means (A) GAAP and (B) to the extent not inconsistent with the foregoing clause (A), the accounting methods, policies, practices, procedures, conventions, classifications, definitions, principles, judgments, techniques and estimation methodologies, including with respect to the nature of accounts, level of reserves or level of accruals, adopted in connection with the most recent audited Financial Statements.

 

“Notice of Direct Claim” has the meaning ascribed to such term in Section 9.6(f).

 

“Notice Period” has the meaning ascribed to such term in Section 9.6(a).

 

“Notices” has the meaning ascribed to such term in Section 15.

 

“Objection Notice” has the meaning ascribed to such term in Section 1.3(b)(ii)(B).

 

“Order” means any order, decree, ruling, judgment, injunction or writ of any Governmental Authority.

 

“Ordinary Course of Business” means, with respect to a Person, an action taken by such Person consistent in all material respects with the past practices of the Person and the general operation of the business by such Person.

 

“Other Key Employees” means the employees of the Company set forth in Schedule B attached hereto.

 

“Patents” has the meaning ascribed to such term in the definition of Intellectual Property.

 

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“Pending Claim Reserve” has the meaning ascribed to such term in Section 9.12.

 

“Permits” means all federal, state, local or foreign permits, grants, easements, consents, approvals, authorizations, exemptions, licenses, franchises, certificates or Orders of, any Governmental Authority, required for the Company parties to own their respective Assets or conduct its business as is now being conducted.

 

“Permitted Liens” means (a) Liens for Taxes not yet due and payable, (b) Liens for Taxes being challenged or contested in good faith, (c) statutory Liens of landlords, carriers, warehousemen, mechanics and materialmen and other similar Liens imposed by Law in the Ordinary Course of Business of the Company for sums not yet due and payable, (d) Liens imposed by Purchaser or (e) other Liens that do not materially impair the value of the Assets.

 

“Person” means any individual, partnership, joint venture, corporation, trust, unincorporated organization, limited liability company, group, Governmental Authority, and any other person or entity.

 

“Personal Information” means (i) any information with respect to which there is a reasonable basis to believe that the information can be used to identify an individual; (ii) Social Security numbers; or (iii) any information that is regulated or protected by one or more Privacy and Security Laws, applicable to the Company.

 

“Personal Property” means all of the machinery, equipment, tools, vehicles, furniture, leasehold improvements, office equipment, plant, spare parts and other tangible personal property which are owned, used or leased by the Company and used in the conduct of the business or the operations of the business of the Company.

 

“Pre-Closing Tax Period(s)” means any Tax period ending on or before the Closing Date and the portion of any Straddle Tax Period that ends on the Closing Date.

 

“Pre-Closing Taxes” means (a) all Taxes imposed upon the Company with respect to Pre-Closing Tax Periods, (b) with respect to Straddle Tax Periods, all Taxes imposed upon the Company and allocable to the portion of such Straddle Tax Period ending on the Closing Date; (c) any and all Taxes of or imposed on the Company as a result of transferee, successor or similar liability (including bulk transfer or similar Laws) or pursuant to any Law or otherwise (other than pursuant to a contract the primary purpose of which is not the allocation, sharing or indemnification of Tax liability), which Taxes relate to an event or transaction (including transactions contemplated by this Agreement) occurring on or before the Closing Date; and (d) any and all Transfer Taxes required to be borne by the LLC Seller pursuant to Section 10.3(h).

 

“Prepaid Expenses” means the Company’s prepaid expenses as of the Effective Time as calculated pursuant to the Net Working Capital Principles.

 

“Presidential Tower Lease” has the meaning ascribed to such term in Section 5.17.

 

“Privacy and Security Laws” means all Laws concerning the privacy or security of Personal Information, and all regulations promulgated thereunder applicable to the Company.

 

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“Protected Communications” means, at any time, any and all communications in whatever form, whether written, oral, video, electronic or otherwise, that shall have occurred between or among the Sellers, the Company, or any of their respective Affiliates, on the one hand, and Holland & Knight LLP, on the other hand, to the extent relating to this Agreement and the transactions contemplated hereby which, immediately prior to the Closing, was an attorney-client privileged communications between such party, on the one hand, and the Holland & Knight LLP, on the other hand.  

 

“Purchase Price” has the meaning ascribed to such term in Section 1.1.

 

“Purchase Price Adjustment” has the meaning ascribed to such term in Section 1.3(b)(iv).

 

“Purchase Price Adjustment Dispute Expenses” has the meaning ascribed to such term in the definition of Dispute Resolution Procedure.

 

“Purchase Price Adjustment Escrow Account” has the meaning set forth in Section 1.1(d).

 

“Purchase Price Adjustment Escrow Amount” means Two Million Dollars ($2,000,000.00).

 

“Purchase Price Allocation” has the meaning ascribed to such term in Section 10.3(i)(ii).

 

“Purchaser” has the meaning ascribed to such term in the Preamble of this Agreement.

 

“Purchaser Employee Plans” has the meaning ascribed to such term in Section 5.8(b).

 

“Purchaser Material Adverse Effect” means any change, circumstance, fact, event or effect that has occurred and is still continuing as of the relevant time of determination that is materially adverse to the ability of Purchaser to consummate the transactions contemplated hereby in accordance with the terms hereof.

 

“R&W Insurance Binder” has the meaning ascribed to such term in Section 7.4.

 

“R&W Insurance Expenses” means all costs and expenses related to the procurement of the R&W Insurance Policy, including the total premium, underwriting costs, brokerage commission, Taxes related to such policy and any other fees and expenses related to such policy.

 

“R&W Insurance Policy” means the insurance policy set forth on Exhibit B.

 

“R&W Insurance Provider” means Beazley USA Services, Inc.

 

“Reasonable Best Efforts” means the efforts that a commercially reasonable Person would use to achieve a result in the time period reasonably required.

 

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“Registered IP” has the meaning ascribed to such term in Section 3.11(a).

 

“Regulations” means the United States treasury regulations promulgated under the Code.

 

“Regulatory Law” means the Sherman Act, as amended, the Clayton Act, as amended, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the Federal Trade Commission Act, as amended, and all other Laws that are designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade or lessening of competition, through merger or acquisition.

 

“Released Claim” has the meaning ascribed to such term in Section 5.14.

 

“Released Party” has the meaning ascribed to such term in Section 5.14.

 

“Releasor Party” has the meaning ascribed to such term in Section 5.14.

 

“Representative” means, as to any Person, such Person’s Affiliates and its and their directors, officers, employees, agents, advisors (including financial advisors, counsel and accountants), and direct and indirect controlling persons.

 

“Required Statutory Approvals” means, (a) collectively, the filings by the Purchaser and the Company required by the HSR Act, and any filings and approvals required under applicable domestic or foreign antitrust or competition Laws, if any, and expiration or termination of any applicable waiting periods under the HSR Act and any other antitrust or competition Law, and (b) the notice required to be provided to the Defense Security Service in connection with the Company’s security clearances.

 

“Sections” means the sections in this Agreement.

 

“Seller” has the meaning ascribed to such term in the Preamble of this Agreement.

 

“Seller Closing Proceeds” has the meaning ascribed to such term in Section 1.1(f).

 

“Straddle Tax Period(s)” has the meaning ascribed to such term in Section 10.3(a).

 

“Tail Policy” has the meaning ascribed to such term in Section 5.10.

 

“Target Accounts Payable” means $7,003,000.

 

“Target Accounts Receivable” means $21,061,000.

 

“Target Accrued Expenses” means $2,572,000.

 

“Target Prepaid Expenses” means $764,000.

 

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“Tax” means any federal, state, local or foreign income, gross receipts, franchise, estimated, alternative minimum, add-on minimum, sales, use, transfer, registration, value added, excise, natural resources, severance, stamp, occupation, premium, windfall profit, environmental, customs, duties, real property, personal property, capital stock, social security, unemployment, disability, payroll, license, employee or other withholding, or other tax, of any kind whatsoever, including any interest, penalties or additions to tax or additional amounts in respect of the foregoing.

 

“Tax Contest” has the meaning ascribed to such term in Section 10.3(e).

 

“Tax Refund” has the meaning ascribed to such term in Section 10.3(a).

 

“Tax Return” means any return, declaration, report, claim for refund, information return or other documents (including any related or supporting schedules, statements or information) filed or required to be filed in connection with the determination, assessment or collection of any Taxes, or the administration of any Laws or administrative requirements relating to any Taxes, and any amendments thereto.

 

“Taxing Authority” means any Governmental Authority with the power to levy or collect Taxes.

 

“Teaming Agreement” means each teaming agreement to which the Company is a party (i) with respect to which the applicable term has not yet expired, (ii) which has not been terminated pursuant to its terms, or (iii) which has not been superseded by the award of the Contract for which the teaming agreement was entered into.

 

“Trade Secrets” has the meaning ascribed to such term in the definition of Intellectual Property.

 

“Trademarks” has the meaning ascribed to such term in the definition of Intellectual Property.

 

“Transaction Documents” means this Agreement, the Escrow Agreement, the Assignment of LLC Interests and each other agreement, instrument or document attached hereto as an Exhibit and the other agreements, certificates and instruments to be executed by any of the parties hereto in connection with or pursuant to this Agreement.

 

“Transaction Tax Deductions” means any Tax deductions relating to (i) the Company Transaction Expenses, (ii) repayment of the Indebtedness, including any unamortized deferred financing fees in connection with the Indebtedness; and (iii) the Closing Bonus Payments, and the UAR Payments.

 

“Transfer Taxes” has the meaning ascribed to such term in Section 10.3(h).

 

“UAR Holder” means a holder of a “SAR” pursuant to the UAR Plan.

 

“UAR Payments” means the aggregate amount to be paid to the UAR Holders, which amount shall be calculated in accordance with the UAR Plan, as further set forth in the Flow of Funds Memorandum.

 

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“UAR Plan” means that certain Company 2017 Membership Unit Appreciation Rights Plan dated June 1, 2017, as amended by that Amendment to 2017 Membership Unit Appreciation Rights Plan, dated January 9, 2020.

 

“VDR” has the meaning ascribed to such term in Section 5.3.

 

26.2     Certain Interpretive Matters. In this Agreement, unless the context otherwise requires:

 

(a)     words of the masculine or neuter gender will include the masculine, neuter and/or feminine gender, and words in the singular number or in the plural number will each include, as applicable, the singular number or the plural number;

 

(b)     reference to any Person includes such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement, and an express reference to a Person in a particular capacity excludes such Person in any other capacity;

 

(c)     any accounting term used and not otherwise defined in this Agreement or any Transaction Document has the meaning assigned to such term in accordance with GAAP;

 

(d)     “including” (and with correlative meaning “include”) means including without limiting the generality of any description preceding or succeeding such term;

 

(e)     reference to any Law means such Law as amended, modified, supplemented, codified or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder and including by succession of comparable successor Laws and references to all attachments thereto and instruments incorporated therein;

 

(f)     any Contract referred to herein or in any Contract that is referred to herein means such Contract as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent; provided that any such amendment, waiver or supplement does not violate the terms of this Agreement;

 

(g)     except as otherwise indicated, all references in this Agreement to the words “Section,” “Schedule” and “Exhibit” are intended to refer to Sections, Disclosure Schedules or other Schedules and Exhibits to this Agreement;

 

(h)     references to documents or other materials “provided” or “made available” to the Purchaser or similar phrases shall mean that such documents or other materials were (i) delivered to the Purchaser and such delivery is acknowledged in writing by the Purchaser or (ii) accessible to the Purchaser in the VDR.

 

(i)     unless the context otherwise requires, the words “hereof,” “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision hereof;

 

(j)     unless the context otherwise requires, the term “party” when used in this Agreement means a party to this Agreement;

 

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(k)     except when used together with the word “either” or otherwise for the purpose of identifying mutually exclusive alternatives, the term “or” has the inclusive meaning represented by the phrase “and/or”; and

 

(l)     all references in this Agreement to “dollars” or “$” mean United States dollars.

 

{Signature pages follow.}

 

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IN WITNESS WHEREOF, the parties have executed this Equity Purchase Agreement as of the date first written above.

 

	 	
			PURCHASER:

			 

			ICF Incorporated, L.L.C.,

			a Delaware limited liability company

			 

			 

			By:  /s/ James. C. Morgan                   

			Name: James C. Morgan

			Title:   Executive Vice President & CFO

			 

			 

			COMPANY:

			 

			Incentive Technology Group, LLC

			 

			 

			By:  /s/ Shadi Branch                   

			Name: Shadi Branch

			Title:    President

			 

			LLC SELLER:

			 

			Project Lucky Holdings, LLC

			 

			 

			By:  /s/ Shadi Branch                   

			Name: Shadi Branch

			Title:    President

			 

			Individual SELLERS:

			 

			 

			 

			/s/ Shadi Branch                   

			Shadi Michelle Branch

			 

			 

			/s/ Adam Branch                   

			Adam Branch

			

 

Signature Page to Equity Purchase Agreement

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